Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca — 9M FY2022 Earnings Presentation
50 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, May 11, 2022
Slide 1: Mediobanca 9M/3Q Results as at 31 March 2022
MEDIOBANCA 9M/3Q RESULTS AS AT 31 MARCH 2022 Milan, 11 May 2022
Slide 2: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. 9M/3Q Divisional results Section 4. Closing remarks Annexes 1. Asset quality by division 2. Divisional results by quarter
Slide 3: Solid results despite war and market volatility
GROWTH – QUALITY STAKEHOLDERS’ REMUNERATION Executive summary Section 1 Solid results despite war and market volatility 9M growth trajectory unchanged Revenues up 9% to €2.1bn, RORWA up ~30bps to 197bps, net profit up 19% over €0.7bn EPS up 22% to €0.83, CET11 ratio at 15.3%, ROTE 10% Solid 3Q22: st
Slide 4: MB entering muted scenario with strong 9M results
MB ENTERING MUTED SCENARIO WITH STRONG 9M RESULTS €2.1BN REVENUES (UP 9%), €716M NET PROFIT (UP 19%), 10% ROTE Executive summary Section 1 Financial results Highlights MEDIOBANCA GROUP – 9M as at Mar22 Growth in EPS (€0.83, up 22%) and TBVPS (€11.2, up 4%) EPS 9m BVPS TBVPS n. share/ow Shareholders’
Slide 5: 3Q: Solid results despite 'war'
3Q: SOLID RESULTS DESPITE ‘WAR’ €688M REVENUES, €190M NET PROFIT Executive summary Section 1 Group: solid quarter Mediobanca Group – 3Q results as at Mar22 Revenues, GOP and net profit (€190m) remain high, Revenues Fees CoR Net profit with strong NII (€373m)and fees again ~€200m despite normalizatio
Slide 6: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. 9M/3Q Divisional results Section 4. Closing remarks Annexes 1. Asset quality by division 2. Divisional results by quarter
Slide 7: Ongoing sound commercial activity
ONGOING SOUND COMMERCIAL ACTIVITY 9M22/3Q22 - Group results Section 2 WM: TFAs >€80bn, with limited market effect CF: loan book back to growth, new loans normalized in NNM +2.5x YoY to €7bn, ow €2.5bn in 3Q, 66% qualified AUM/AUA volume and mix (€bn) (€bn) 13.5 13.3 Loan 14 book 5 79.4 80.3 2 13.1 7
Slide 8: Core revenues expanding and well diversified
CORE REVENUES EXPANDING AND WELL DIVERSIFIED 9M22/3Q22 - Group results Section 2 Strong Group revenues trend, well above historical avg. WM leveraging on structurally higher NNM/TFAs (Group revenues, €m, 3M) (WM revenues, €m, 3M) +9% YoY €2,147m +17% YoY €1,964m €543m 753 €464m 706 688 675 663 665 1
Slide 9: NII: stronger growth (up 3% YoY)
NII: STRONGER GROWTH (UP 3% YoY) 9M22/3Q22 - Group results Section 2 NII trend by division (€m, 3M) Quarterly NII trend (€m, 3M) +3% YoY -1% QoQ €1,071m €1,106m 361 375 373 +3 +3 (5) 351 (3) 68 72 77 68 72 73 70 68 69 68 69 74 73 72 72 72 375 373 237 226 223 216 214 226 236 237 2Q22 Volume Margin AL
Slide 10: Fees: growth confirmed (up 13% YoY)
FEES: GROWTH CONFIRMED (UP 13% YoY) AVG. FEE PRODUCTION CAPABILITY DEFINITIVELY INCREASED 9M22/3Q22 - Group results Section 2 Fee income trend by division (€m, 3M) CIB fees (€m, 3M) 102 +13% 88 Specialty fin 84 85 17 77 69 80 10 12 16 11 Lending 12 12 15 18 16 10 14 17 CapMkt 2 €645m 26 13 14 29 21
Slide 11: Positive CoR trend ongoing
POSITIVE COR TREND ONGOING… 9M22/3Q22 - Group results Section 2 CoR trend (bps) 361 Group 9M21 Group 9M22 51bps 52bps 248 Overlay stock trend (€m) 223 197 196 185 174 183 160 ~€300m ~€290m 141 133 141 CF ~90 ~65 85 58 70 61 53 56 51 60 39 39 45 Group 37 ~200 ~210 14 6 12 27 13 12 WM 27 18 17 8 11 7
Slide 12: Backed by solid asset quality trend
…BACKED BY SOLID ASSET QUALITY TREND NPLs INCIDENCE DOWN AND COVERAGE RATIO UP 9M22/3Q22 - Group results Section 2 ➢ Stage 3 – Gross NPLs down to 2.7% of gross loans (vs 3.2% in June21) as well as net NPLs, mainly due to small ordinary NPL disposals in Gross NPLs – Stage 31 Net NPLs – Stage 31 CF an
Slide 13: Capital ratios stay flat at high level
CAPITAL RATIOS STAY FLAT AT HIGH LEVEL CET1 PHASE-IN @15.3% - FULLY LOADED @ 14% 9M22/3Q22 - Group results Section 2 CET1¹ ratio trend 16.3% 14.6% FL 15.4% 15.3% +40bps (28bps) (15bps) +2bps (10bps) 14.1% FL 14.0% FL 70% 70% 70% pay-out pay-out pay-out +3% BB2 +3% BB2 Mar21 Dec21 Generated 70% cash
Slide 14: 9M Group results at a glance
9M GROUP RESULTS AT A GLANCE 9M22/3Q22 - Group results Section 2 Financial results Highlights 9m D 3Q22 2Q22 3Q21 €m Net profit at €716m, up 19% YoY, ROTE@10% Mar22 YoY1 Mar22 Dec21 Mar21 Total income 2,147 +9% 688 753 663 High single-digit growth in revenues, to €2,147m, stronger NII trend Net inte
Slide 15: Diversity and inclusion to enrich MB social profile
DIVERSITY AND INCLUSION TO ENRICH MB SOCIAL PROFILE 9M22/3Q22 - Group results Section 2 Objective KPIs AS IS TO BE End of Business End of Business The project, launched Plan (2026-27) Plan (2030-31) by the CEO in an event % of female gathering all the Consolidate members of Group’s business Medioban
Slide 16: Environment and governance enhancement to strengthen MB ESG profile
ENVIRONMENT AND GOVERNANCE ENHANCEMENT TO FURTHER 9M22/3Q22 - Group results STRENGTHEN MB ESG PROFILE Section 2 ENVIRONMENT GOVERNANCE Supporting our clients targeting climate change Appointment of Lead Independent Director After joining the Net-Zero Banking Alliance in Angela Gamba (independent Dir
Slide 17: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. 9M/3Q Divisional results Section 4. Closing remarks Annexes 1. Asset quality by division 2. Divisional results by quarter
Slide 18: All divisions with high double-digit ROAC
ALL DIVISIONS WITH HIGH DOUBLE-DIGIT ROAC… 9M22 Divisional results Section 3 Revenues (€m, 9M) GOP risk adj. (€m, 9M) Net profit (€m, 9M) ROAC ROTE adj. 10.2% +9% +13% 9.4% 9.8% Mediobanca 2,147 995 +19% 8.7% ROTE 1,964 877 716 Group 604 March21 March22 March21 March22 March21 March22 March21 March2
Slide 19: Posting significant achievements
… POSTING SIGNIFICANT ACHIEVEMENTS 9M22 Divisional results Section 3 WM: ROAC@29% Wealth Management – 9M results as at Mar22 NNM positive trajectory, TFA resilient at Mar22 highs despite mkt volatility Revenues Net profit TFAs ROAC double-digit YoY growth in TFAs and revenues, net profit growth >40%
Slide 20: WM: Strong results
WM: STRONG RESULTS DEFINITIVELY LARGER SCALE (TFA/NNM) 9M22 Divisional results - WM Section 3 Financial results Highlights €m 9m D 3Q22 2Q22 3Q21 Ongoing delivery of BP19-23 strategy: Mar22 YoY1 Mar22 Dec21 Mar21 Physical distribution enhancement: 57 professionals added Total income 543 +17% 179 192
Slide 21: NNM: €7bn in 9M, with robust trend in 3Q
NNM: €7BN IN 9M, WITH ROBUST TREND IN 3Q 9M22 Divisional results - WM Section 3 Group TFAs and NNM trend (€bn) Deposits AUM/AUA 79.4 80.3 2.5 (1.6) 71.5 3.5 4.4 NNM by segment NNM by segment Premier +1.5 Premier +0.9 52.1 52.2 46.3 Private +3.0 Private +1.3 AM -0.1 AM +0.4 NNM by product NNM by prod
Slide 22: Premier/Private: driver of growth with AUM and fees up
PREMIER/PRIVATE: DRIVER OF GROWTH WITH AUM AND FEES UP 9M22 Divisional results - WM Section 3 Revenues (€m, 9M) NNM trend (€bn, 3M) TFA stock trend (€bn) +10% +11% 1.2 +6% 292 264 34.5 32.5 0.9 0.9 0.9 31.4 3.6 237 0.8 3.4 Premier 113 0.8 0.6 3.2 +22% 93 13.3 76 11.4 12.2 160 170 +5% 178 16.7 16.9 1
Slide 23: Private & AM: focus on niche offer and Group synergies
PRIVATE & AM: FOCUS ON NICHE OFFER AND GROUP SYNERGIES 9M22 Divisional results - WM Section 3 Private Banking Asset Management Cairn: new CLO placed (€400m) in 3Q, two raised over 9M Private Market platform further enriched at MBPB with the replacing expiring ones; smooth integration with Bybrook wi
Slide 24: Compass: record results
COMPASS: RECORD RESULTS BACKED BY SUPERIOR RISK MGT / PRICING CAPABILITIES 9M22 Divisional results - CF Section 3 Financial results Highlights €m 9m D 3Q22 2Q22 3Q21 CF best-ever 9M net profit (€284m with ROAC @34%) backed by Mar22 YoY1 Mar22 Dec21 Mar21 new loans at pre-Covid levels: Total income 7
Slide 25: New loans expanding in volumes and improved in mix
NEW LOANS EXPANDING IN VOLUMES AND IMPROVED IN MIX INCREASING RELIANCE ON DIRECT/DIGITAL DISTRIBUTION 9M22 Divisional results - CF Section 3 Quarterly new business by product (3M, €bn) Direct personal loans (3M, €bn) 1 0.6 0.6 0.6 0.6 1 0.5 0.5 0.5 €5.6bn 1 0.4 0.4 2.0 €4.6bn 0 1.9 1.9 0 1.9 0.1 1.9
Slide 26: Strong asset quality confirmed
STRONG ASSET QUALITY CONFIRMED 9M22 Divisional results - CF Section 3 Ongoing healthy trend in early risk indicators … … keeping CoR at a very low level … Early deterioration index (3 months average) LLPs (€m) and cost of risk (bps) 361 380 80.0 70.0 150 330 248 60.0 223 280 50.0 185 196 183 197 174
Slide 27: CIB: product diversification driving solid trend
CIB: PRODUCT DIVERSIFICATION DRIVING SOLID TREND 9M22 Divisional results - CIB Section 3 Financial results Highlights 9m D 3Q22 2Q22 3Q21 Satisfactory 9M results with €182m net profit and 13% ROAC €m Mar22 YoY1 Mar22 Dec21 Mar21 backed by: Total income 548 +2% 157 206 173 Growing revenues, up 2% YoY
Slide 28: Leading positioning confirmed in M&A
LEADING POSITIONING CONFIRMED IN M&A… 9M22 Divisional results - CIB Section 3 M&A Italy 2021/22 Ranking by Deal Value since July 20211 Selected M&A Large Corp Transactions Pending Pending Pending December 2021 September 2021 115.3 101.2 ~€50bn EV 74.2 Voluntary tender offer € 9.3bn € 10.8bn € 2.7bn
Slide 29: ...and in ECM and DCM
…AND IN ECM AND DCM 9M22 Divisional results - CIB Section 3 ECM Italy 2021/22 (Bookrunner) since July 20211 Mediobanca’s Capital Markets teams successfully completed several major transactions for both Italian and international clients, including in DCM Fineco’s debut Senior Preferred bond, Gecina’s
Slide 30: PI: higher profit from anticyclical insurance exposure
PI: HIGHER PROFIT FROM ANTICYCLICAL INSURANCE EXPOSURE REVENUES UP 47%, ROAC@13% 9M22 Divisional results - PI Section 3 Financial results Highlights 9m D 3Q22 2Q22 3Q21 9M revenues up 47% YoY on a sound quarterly trend (€77m in €m 3Q22), while 9M21 were impacted by extraordinary negative Mar22 YoY1
Slide 31: HF – Improved results
HF – IMPROVED RESULTS COMFORTABLE FUNDING AND LIQUIDITY POSITIONS 9M22 Divisional results - HF Section 3 Financial results Highlights FY21/22 funding completed and FY22/23 pre-funding already 9m D 3Q22 2Q22 3Q21 €m started. Comfortable funding position, with stock up 5% YoY to Mar22 YoY1 Mar22 Dec21
Slide 32: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. 9M/3Q Divisional results Section 4. Closing remarks Annexes 1. Asset quality by division 2. Divisional results by quarter
Slide 33: WM: ticking the right boxes
POSITIONING IN SCENARIO AHEAD WM: TICKING THE RIGHT BOXES ONGOING NETWORK EXPANSION- LOW IMPACT FROM MARKET VOLATILITY Closing remarks Section 4 NNM high and always positive, driven by specialized offering, distribution enhancement and higher brand awareness Strong track record in Private markets wi
Slide 34: CF: historical limited correlation with GDP
POSITIONING IN SCENARIO AHEAD CF: HISTORICAL LIMITED CORRELATION WITH GDP FOR BOTH NEW LOANS AND COR Closing remarks Section 4 Low correlation with GDP for both new loans and cost of risk Covid swing was an outlier: negative impact on CoR and new loans during Covid crisis due only to mobility restri
Slide 35: CIB: quality & diversification
POSITIONING IN SCENARIO AHEAD CIB: QUALITY & DIVERSIFICATION BEST-EVER PORTFOLIO RATING – EXPANDING REVENUES POOL Closing remarks Section 4 No direct exposure to Russia/Ukraine, not even through derivatives/trading Corporate loan portfolio well diversified, with strongest-ever rating profile and lim
Slide 36: Capital: high and visible
POSITIONING IN SCENARIO AHEAD CAPITAL: HIGH AND VISIBLE FOR GROWTH AND SHAREHOLDERS’ REMUNERATION Closing remarks Section 4 CET1 high and well above requirements: CET1: 15.3% PI, 14.0% FL vs 7.9% SREP requirement No impact from Russia/Ukraine conflict Low sensitivity to risk factors: Best-ever asset
Slide 37: Closing remarks
CLOSING REMARKS Closing remarks Section 4 MB entering weaker macro environment ticking the right boxes to outperform Specialized business mix geared to best risk/reward client segments Sound commercial activity/structural trends ongoing across all divisions to support revenues expansion Strongest ev
Slide 38: Mediobanca 9M/3Q Results as at March 2022
MEDIOBANCA 9M/3Q RESULTS AS AT 31 MARCH 2022 Milan, 11 May 2022
Slide 39: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. 9M/3Q Divisional results Section 4. Closing remarks Annexes 1. Asset quality by division 2. Divisional results by quarter
Slide 40: Asset quality by division
ASSET QUALITY BY DIVISION Asset quality by division Annex 1 Net NPLs (€m) of which bad loans (€m) NPL coverage NPLs as % of loans (“deteriorate”) (“sofferenze”) 65% 65% 68% 3.4% 3.2% -19% 2.7% Gross Mediobanca -15% 1.2% 1.2% 0.9% Group 581 560 452 79 72 61 Net Mar21 June21 Mar22 Mar21 June21 Mar22 M
Slide 41: Mediobanca Group P&L
MEDIOBANCA GROUP P&L 9M results as at March 2022 Annex 2 9m 9m ∆ €m 3Q22 2Q22 1Q22 4Q21 3Q21 Mar22 Mar21 YoY1 Total income 2,147 1,964 9% 688 753 706 665 663 Net interest income 1,106 1,071 3% 373 375 358 344 351 Fee income 645 571 13% 202 241 203 173 188 Net treasury income 132 152 -13% 35 47 50 45
Slide 42: Mediobanca Group A&L
MEDIOBANCA GROUP A&L 9M results as at March 2022 Annex 2 ∆ ∆ €bn Mar22 Dec21 June21 Mar21 QoQ1 YoY1 Funding 59.3 59.3 56.2 56.6 - +5% Bonds 18.5 18.9 18.4 19.0 -2% -3% Direct deposits (retail&PB) 28.1 27.2 25.2 25.2 +3% +12% ECB 8.4 8.4 7.4 7.0 - +21% Others 4.2 4.7 5.1 5.4 -12% -23% Loans to custom
Slide 43: Wealth Management results
WEALTH MANAGEMENT RESULTS 9M results as at March 2022 Annex 2 9m 9m ∆ €m 3Q22 2Q22 1Q22 4Q21 3Q21 Mar22 Mar21 YoY1 Total income 543 464 +17% 179 192 172 163 162 Net interest income 219 209 +5% 72 73 74 72 72 Fee income 317 247 +28% 104 117 96 89 87 Net treasury income 7 8 -9% 3 1 3 2 3 Total costs (
Slide 44: Consumer Finance results
CONSUMER FINANCE RESULTS 9M results as at March 2022 Annex 2 9m 9m ∆ €m 3Q22 2Q22 1Q22 4Q21 3Q21 Mar22 Mar21 YoY1 Total income 789 764 +3% 265 268 257 238 249 Net interest income 699 664 +5% 237 236 226 214 216 Fee income 90 100 -9% 28 32 31 24 33 Total costs (228) (231) -1% (79) (77) (72) (84) (80)
Slide 45: CIB results
CIB RESULTS 9M results as at March 2022 Annex 2 9m 9m ∆ €m 3Q22 2Q22 1Q22 4Q21 3Q21 Mar22 Mar21 YoY1 Total income 548 537 +2% 157 206 185 161 173 Net interest income 213 219 -3% 73 72 68 68 70 Fee income 267 249 +7% 80 102 85 69 77 Net treasury income 68 69 -1% 5 32 32 24 25 Total costs (242) (226)
Slide 46: Principal Investing results
PRINCIPAL INVESTING RESULTS 9M results as at March 2022 Annex 2 9m 9m ∆ €m 3Q22 2Q22 1Q22 4Q21 3Q21 Mar22 Mar21 YoY1 Total income 271 185 +47% 77 96 98 111 61 Impairments (6) 37 n.m. (6) (3) 3 15 18 Net result 251 199 +26% 66 88 97 110 70 Book value (€bn) 4.6 4.6 - 4.6 4.6 4.5 4.4 4.6 Ass. Generali
Slide 47: Holding Function results
HOLDING FUNCTION RESULTS 9M results as at March 2022 Annex 2 9m 9m ∆ €m 3Q22 2Q22 1Q22 4Q21 3Q21 Mar22 Mar21 YoY1 Total income 8 27 -72% 14 (5) (1) (6) 22 Net interest income (40) (34) +15% (14) (12) (14) (13) (12) Net treasury income 41 53 -23% 25 6 10 4 32 Fee income 6 8 -27% 2 1 3 3 2 Total costs
Slide 48: Glossary
GLOSSARY MEDIOBANCA BUSINESS SEGMENT PROFIT & LOSS (P&L) and BALANCE SHEET CIB Corporate and investment banking DPS Dividend per share WB Wholesale banking EPS Earning per share EPS adj. Earning per share adjusted1 SF Specialty finance ESG Environmental, Social, Governance CF Consumer finance FAs Fi
Slide 49: Disclaimer & declaration of Head of Financial Reporting
DISCLAIMER & DECLARATION OF HEAD OF FINANCIAL REPORTING Disclaimer This document includes certain projections, estimates, forecasts and consequent targets which reflect the current views of Mediobanca – Banca di Credito Finanziario S.p.A. (the “Company”) with regard to future events (“forward-lookin
Slide 50: Investor contact details
INVESTOR CONTACT DETAILS Mediobanca Group Investor Relations Piazzetta Cuccia 1, 20121 Milan, Italy Jessica Spina Tel. no. (0039) 02-8829.860 Luisa Demaria Tel. no. (0039) 02-8829.647 Matteo Carotta Tel. no. (0039) 02-8829.290 Marcella Malpangotto Tel. no. (0039) 02-8829.428 Email: investor.relation