Bper Banca S.p.a. · MIL:BPE
Bper Banca — Q1 2024 Earnings Presentation
29 slides from Bper Banca's earnings presentation, May 9, 2024
Slide 1: 1Q24 Consolidated Results
BPER: 1Q24 Consolidated Results Gianni Franco Papa, CEO 8'h May 2024
Slide 2: Disclaimer
Disclaimer This document has been prepared by "BPER Banca" solely for information No part of the information contained herein may for any purpose be purposes, and only in order to present its strategies and main financial reproduced or published as a whole or in part, nor may such information be fig
Slide 3: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS EXECUTIVE SUMMARV BALANCE SHEET PROFIT AND LOSS LIQUIDITV AND CAPITAL ADEQUACV GUIDANCE ANNEXES BPER: 3
Slide 4: Executive Summary
Executive Summary Mar24 Net Profit NII Fees 457€mln 844€mln 510€mln Net Profit +16.2% +0.9% +64% Y/Y Y/Y Gross NPE ratio Net N PE ratio Cost of Risk' NPE coverage 1.2% 43 bps 54% 2-4°10 12% 48 bps 53010 Dee 23 Dee 23 Dee 23 Dee 23 CET, ratio 2 LCR NSFR 1620/o 133% 1. Annualised 2. The capitai ratios
Slide 5: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS EXECUTIVE SUMMARV BALANCE SHEET PROFIT AND LOSS LIQUIDITV AND CAPITAL ADEQUACV GUIDANCE ANNEXES BPER: 5
Slide 6: Total Funding: Direct and Indirect Deposits
Total Funding: Direct and lndirect Deposits .. ( Ba lance Sheet ) TOTAL FUNDING (€BN) FOCUS ON INDIRECT DEPOSITS• AND LIFE INSURANCE (€BN) I 411>; D TotaI figures AUM NET INFLOWS 2 (€MLN) 1290.31 1298.11 +6.2 Mar 23 Jun 23 Sep 23 Dee 23 Mar24 Dee 23 AuM and AuC Mar24 1Q23 1Q24 ■ lndirect Deposits ■
Slide 7: Net Customer Loans
Net Customer Loans ( Ba lance Sheet ) NET CUSTOMER LOANS: BREAKDOWN BY SECTOR' (%) NET CUSTOMER LOANS (€BN) Manufacturing Wholesale and retail I 89.4 89.1 86.7 88.2 • 87-7 Construction 3.3% Corp:,rate Retail 60% LOAN TO DEPOSIT RATIO(%) Mar 23 Jun 23 Sep 23 Dee 23 Mar 24 BPER: Hotels, Restaurants &
Slide 8: Asset Quality
Asset Quality ( Ba lance Sheet ) - LOAN BOOK BREAKDOWN: STOCK AND COVERAGE (€MLN; %) NON-PERFORMING EXPOSURES OVER TIME(%) Bad Loans MMiiiilllllllBII Mar24 Q/Q 3.3% Gross 989 632 661 4.6% -33.2% 2.8% 2.6% Net Coverage UTPs 194 80.4% 175 72.4% 183 72.3% (~tt} -5.7% -8.1 p.p. -Gross NPE ratio ~ Net NP
Slide 9: Financial Assets Portfolio
Financial Assets Portfolio ( Ba lance Sheet ) FINANCIAL ASSETS BREAKDOWN 1 (€MLN) ITALIAN GOVERNMENT BONDS (€BN) ◄- 't Bonds €/mln EH·IEEH-FE--■•-- 70 5,053 19,334 24,457 26,673 -2,216 o.w. ltalian gov 6 1,6o7 7,103 8,716 8,992 -276 o.w. Corporate 57 3,069 6,825 9,951 11,509 -1,558 Equity 146 553 69
Slide 10: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS EXECUTIVE SUMMARV BALANCE SHEET PROFIT AND LOSS LIQUIDITV AND CAPITAL ADEQUACV GUIDANCE ANNEXES BPER: 10
Slide 11: 1Q24 Profit and Loss
1Q24 Profit and Loss i 1 1Q24/ 423 Chg. Recurring Chg. Recurring P&L -(€min) i) Stated ii] Recurring’ Q/Q (%) YIY (%) Hl i 7 ' 1 Q * Strong operating income driven 1 ve Net interest income ! 8436 | 870.3 76.0 3.1% 416.2% by Niland net commissions Net commission income | 510.4 1 529.0 506.1 “3.5% +0.
Slide 12: Net Interest Income
Net lnterest lncome ( Profit and Loss ) FOCUS ON NII MOVING PARTS 1 (€MLN) +117.6 +28.6 +89.0 NI I QUARTERL V TREND (€MLN) 870.3 726.0 Commerciai Nll 2 Financial Nll 3 COMMERCIAL YIELDS AND SPREAD4 (%) 4.64 4-7° 4.00 4.34 ..• · · · •..... .... 3 ···················• 96 3 92 3.62 ·····•··············
Slide 13: Net Commission Income
Net Commission lncome ( Profit and Loss ) NET COMMISSION INCOME QUARTERL V TREND (€MLN) V /V CHANGE BY FEE CATEGORIES Chg. Y/Y Chg. Y/Y (€/MLN) (%) BANCASSURANCE -3.4 -6.1% AUM&AUC +16.2 +10.3% BANKING SERVICES -8.4 -2.9% ■ Banking Services ■ AuM &AuC ■ Bancassurance BPER: 13
Slide 14: Operating Costs
Operating Costs (,_ _ _ _ _P_r_o_fit_a_n_d_L_o_ss_ _ _ __,) OPERATING COSTS QUARTERLYTREND (€MLN) COST/INCOME2 (%) 53.4% 78~ 51 -7% ■ D&A ■ Other administrative expenses ■ Staff costs FOCUS ON STAFF COSTS MOVING PARTS4 (€MLN) BRANCHES3 AND EMPLOYEESs OVER TIME (#BRANCHES; #HC) -- +23.2 -28.8 +1 ., 2
Slide 15: Loan Loss Provisions and Cost of Risk
Loan Loss Provisions and Cost of Risk MAIN ASSET QUALITY RATIOS (%) Gross NPE ratio} Net NPE ratio NPE coverage 2.6% 1.2% 54% 2.4% 1.2% 53% Dec 23 Dec 23 Dec 23 COST OF RISK TREND (BPS) 64 48 CO 2022 2023 1Q24 Annualised * 1Q24 annualised cost of risk of 43 bps (vs 48 bps in FY23) with total NPE cov
Slide 16: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS EXECUTIVE SUMMARV BALANCE SHEET PROFIT AND LOSS LIQUIDITV AND CAPITAL ADEQUACV GUIDANCE ANNEXES BPER: 16
Slide 17: Liquidity
Liquidity ( Liquidity and Capitai Adequacy ) TOTAL ELIGIBLE ASSETS 1 AND DEPOSITS WITH ECB (€BN) ELIGIBLE ASSET POOL COMPOSITI ON (26.6 €BN) (%) Senior Bank bonds & State Eligible loans, ABS, Multilease 20.5 26.6 ~''°"'::::~:~ ~· ~ ,~ 3· % ' Government bonds 35, 2 % 10.8 6.1 Jumbo bank bonds I Supra
Slide 18: Q/Q Capital Walk
Q/Q Capitai Walk ( Liquidity and Capitai Adequacy ) CET1 RATIO'(%) +43 bps +4 bps 14.9% 14.5% Dee 23 1Q24 Net result Other 2 Mar 24 Common Equity 7,968 TIER 1 (€mln) Total RWAs (€mln) 53,502 53,395 Funds pursuant to art. 26, para. 2 of the C. RR BPER: 18
Slide 19: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS EXECUTIVE SUMMARV BALANCE SHEET PROFIT AND LOSS LIQUIDITV AND CAPITAL ADEQUACV GUIDANCE ANNEXES BPER:
Slide 20: FY24 recurring guidance confirmed
FY24 recurring guidance1 confirmed GUIDANCE FY24 FY23 VS. RESUL TS FY23 NET INTEREST INCOME ---------------------------------------------------------------------------------------------------------------------------------------- 3.3 €bn CD NET COMMISSION INCOME 2.0€bn [] OPERATING COSTS 2.8 €bn e CO
Slide 21: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS EXECUTIVE SUMMARV BALANCE SHEET PROFIT AND LOSS LIQUIDITV AND CAPITAL ADEQUACV GUIDANCE ANNEXES BPER: 21
Slide 22: Change in the scope of consolidation
Change in the scope of consolidation CHANGE IN THE SCOPE OF CONSOLIDATION 20 February 2023 was the date of closing of the transfer to Banco di Desio e della Brianza of two separate business units consisting of 8 bank branches owned by Banco di Sardegna and 40 branches owned by BPER Banca stemming fr
Slide 23: Net Customer Loans
Net Customer Loans (,_ _ _ _ _ _A_n_n_e_xe_s_ _ _ _ __,) Loan Portfolio Composition NET CUSTOMER LOANS BREAKDOWN BY SECTOR (€BN) NET CUSTOMER LOANS BREAKDOWN BY GEOGRAPHICAL AREAS 1 (%) %on Total . ~% Business sector Mar 24 Customer Lombardy • VS Dee 23 North Loans 24.3% , - 59.5% Manufacturing Whol
Slide 24: Asset Quality Breakdown
Asset Quality Breakdown ( Annexes ) Gross exposures (€mln) Mar23 Jun 23 Sep23 Dee 23 Mar24 ChgQ/Q Chg V/V eomp.% eomp.% eomp.% eomp.% eomp.% Abs. Chg(%) Abs. Chg(%) Non Performing Exposures (NPEs) 3,022 3.3% 2,504 2.7% 2,530 2.8% 2,197 2.4% 2,336 2.6% 139 +6.3% ·686 -22.7% Bad loans 989 1.1% 1,020 1
Slide 25: Financial Assets: Highlights
Financial Assets: Highlights ( Annexes ) BOND PTF GEOGRAPHICAL BREAKDOWN (%) GOVIES PTF GEOGRAPHICAL BREAKDOWN (%) ~;:~ USA aiiii ltaly 446% S-::ain • • 5.6% "1111111111111 ltaly Germany 71.6% 8.8% France 12.7% BONDS PTF MATURITIES1 (€BN) ITALIAN GOVIES MATURITIES' (€BN) 13-4 4-5 1.2 1.2 0.5 2024 20
Slide 26: Bond Maturities and Issuances: Highlights
Bond Maturities and lssuances: Highlights ( Annexes ) OUTSTANDING BONDS (€BN) BONDS ISSUED* (€BN) ~ 0.5 Wholesale bonds 4.6 4.9 Covered bonds Retail bonds Total bonds 6.3 o.6 11.5 6.o 0.5 11.4 • 2.0 4.0 0.5 lii o.6 0.5 2022 2023 2024 D Tota l fi gu res ■ Wholesale ■ Covered Band Retail CREDIT RATING
Slide 27: Reclassified Balance Sheet
Reclassified Balance Sheet ( Annexes ) ASSETS (€BN) Customer Loans Seeurities Portfolio Interbank Assets €/bn 1 91.2 30.7 16.9 --- 89.4 30.7 18.5 89.1 30.5 10.3 86.7 30.0 13.4 Dee 23 88.2 28.6 11.7 Mar 24 87.7 26.5 12.6 Chg Q/Q -0.6% -7.5010 +7.0% Mliii -1.9% -13.9% -31.9% PPE & lntangible Assets 3.
Slide 28: 4Q23 P&L and a focus on non-recurring items
4Q23 P&L and a focus on non-recurring items Stated Net interest income 870.3, Net commission income 529.0 Core Income 1,399.3 Dividends 0.9 Gains on equity investments measured under the equity method 6.9 Net income from financial activities 45 Other operating expenses/income 63.1 Operating Income V
Slide 29: Contacts for Investors and Financial Analysts
Contacts for lnvestors and Financial Analysts Nicola Sponghi Head of lnvestor Relations (é) Via Aristotele, 195 - 41126 Modena - ltaly ~ +39 059 2022219 E::::l nicola.sponghi@bper.it Federico Febbraro I nvestor Relations (é) Via Aristotele, 195 - 41126 Modena - ltaly BPER: ~ +39 059 2021841 E::::l f