Bper Banca S.p.a. · MIL:BPE
Bper Banca — FY2021 Earnings Presentation
34 slides from Bper Banca's earnings presentation, Feb 9, 2022
Slide 1: FY21 Consolidated Results
FY21 Consolidated Results Piero Luigi Montani, CEO 9th February 2022 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by “BPER Banca” solely for No part of the information contained herein may for any purpose be information purposes, and only in order to present its strategies and reproduced or published as a whole or in part, nor may such main financial figures. informati
Slide 3: Important methodological note
Important methodological note Change in the scope of consolidation and Purchase Price Allocation Change in the scope of consolidation In 2021 BPER Banca completed the integration of the going concern consisting in 620 branches1 acquired from the Intesa Sanpaolo Group (ISP). The transfer of these bra
Slide 4: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 4
Slide 5: Executive summary
Executive summary SHARP INCREASE IN CORE BUSINESS PROFITABILITY DRIVEN BY COMMERCIAL EFFECTIVENESS AND SIGNIFICANTLY ENHANCED COMPETITIVE STRENGTH • FY21 net profit of 525 €mln. Excluding one-offs1, pre tax profit increased to 580 €mln • Operating income reached 3.4 €bn, underpinned by Net Fees and
Slide 6: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 6
Slide 7: Direct Deposits
Direct Deposits Balance sheet Direct funding at 101.4 €bn, of which over 90% in core deposits at marginal cost Direct Funding breakdown (€mln) Direct Funding, quarterly trend (€bn) Chg. Q/Q Chg. Y/Y +3.5% €/mln Dec 20 Sep 21 Dec 21 (%) (%) Customer Direct Deposits 59,505 93,964 96,201 +2.4% +61.7% 1
Slide 8: Indirect deposits
Indirect deposits Balance sheet Total indirect deposits increased to 166.3 €bn driven by AUM and life bancassurance Indirect Deposits (€mln) Indirect Deposits quarterly trend (€bn) +0.1% Chg. Q/Q Chg. Y/Y 166.2 166.3 €/mln Dec 20 Sep 21 Dec 21 (%) (%) 122.1 Assets under custody 72,057 83,031 82,163
Slide 9: Customer loans
Customer loans Balance sheet Net customer loans at 79.1 €bn Net customer loans: breakdown (€mln) Net customer loans: quarterly trend (€bn) +3.4% Chg. Q/Q Chg. Y/Y €/mln Dec 20 Sep 21 Dec 21 (%) (%) 79.1 76.5 Current Accounts 3,669 4,935 4,969 +0.7% +35.4% Mortgage loans 35,355 53,189 53,621 +0.8% +5
Slide 10: Loan payment moratoria and State guaranteed loans
Loan payment moratoria and State guaranteed loans Balance sheet Loan payment moratoria declined to 0.2 €bn following end-of-year expiry. State guaranteed loans continued to increase Loan payment Moratoria (€bn) State guaranteed loans (€bn) +19.1% -97.2% +4.7% 8.1 7.3 6.9 -92.4% 6.5 3.2 6.1 3.0 0.2 A
Slide 11: Asset Quality (1/3)
Asset Quality (1/3) Balance sheet Steady reduction in NPE ratios coupled with significant strengthening of coverage levels Loan book breakdown: stock and coverage (€mln; %) NPE ratios over time (%) Dec 20 Sept 21 Dec 21 Q/Q Y/Y 7.8% Bad Loans Gross 2,076 2,350 2,014 -14.3% -3.0% 6.1% 5.7% 5.5% Net 7
Slide 12: Asset Quality (2/3)
Asset Quality (2/3) Balance sheet Stage 2 net loans stock down to 7.9 €bn (-18.1% Q/Q) with coverage rising to 3.5% Stock of stage 2 net loans, quarterly trend (€bn) Coverage of stage 2 net loans, quarterly trend (%) 9.6 3.5% 7.9 3.0% 6.1 1.9% Dec 20 Sep 21 Dec 21 Dec 20 Sep 21 Dec 21 % on net perfo
Slide 13: Asset quality (3/3)
Asset quality (3/3) Balance sheet Default rate at 0.9% from 1.0% in Dec.’20. High rate of bad loan recovery confirmed Default rate (%) Average Bad loan recovery rate1 (%) (Bper Credit Management) 2.1% 1.9% 6.3% 6.9% 6.7% 1.7% 5.3% 4.3% 1.0% 0.9% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 1. S
Slide 14: Financial assets portfolio
Financial assets portfolio Balance sheet Financial assets portfolio at 28.4 €bn Financial Assets breakdown (€mln) Italian Government bonds1 (€bn) €/mn FVTPL FVOCI AC Total % on total 8.6 Bonds 323 6,379 20,578 27,280 96.1% 7.8 1 o.w. Italian gov 125 340 8,138 8,604 30.3% 6.4 Equity 111 253 363 1.3%
Slide 15: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 15
Slide 16: Profit & Loss
Profit & Loss Profit and Loss FY21 results of 525 €mln. Net of non-recurring items1, profit before tax totals 580 €mln Quarterly trend Annual trend (€mln) 1Q21 2Q21 3Q21 4Q21 FY20 FY21 Net interest income 343.5 384.8 391.1 385.9 1,238.9 1,505.4 Net commission income 328.1 405.8 438.5 469.2 1,072.5 1
Slide 17: Operating Income
Operating Income Profit and Loss Operating income reached 3,388.3 €mln in FY21 driven by core income growth (+3.1% Q/Q) Operating Income over time (€mln) +0.6% 892.4 897.5 840.7 • Operating income in 4Q21 increased to 897.5 62.8 42.4 757.7 50.1 €mln, of which 855.1 €mln in core income (NII 86.0 + Ne
Slide 18: Net Interest Income
Net Interest Income Profit and Loss FY21 NII at 1,505.4 €mln of which 1,323.1 €mln from commercial activity with customers Net Interest Income breakdown (€mln) Net Interest Income quarterly trend (€mln) o/w o/w o/w o/w Chg. Q/Q €mln FY21 1Q21 2Q21 3Q21 4Q21 % 391.1 384.8 385.9 Commercial NII 1,323.1
Slide 19: Net commission income
Net commission income Profit and Loss FY21 Net commission income reached 1,641.6 €mln, driven by AUM & Bancassurance business growth and strong commercial performance Net Commission Income over time (€mln) +7.0% 469.2 438.5 405.8 18.7 20.0 • In 4Q21 net commissions up to 469.2 €mln 10.5 (+7.0% Q/Q)
Slide 20: Trading income and Dividends
Trading income and Dividends Profit and Loss Trading income totaled 196.2 €mln in FY21, benefitting from positive market performance and capital gains on securities disposals Trading income over time (€mln) 76.2 52.9 43.5 23.6 1Q21 2Q21 3Q21 4Q21 Dividends (€mln) 1.7 12.3 0.7 5.5 Figures on this pag
Slide 21: Operating costs
Operating costs Profit and Loss FY21 operating costs totalled 2.5 €bn, impacted by one-off charges mainly associated with going concern integration and workforce optimisation Operating costs breakdown (€mln) Operating costs over time (€mln) o/w o/w o/w o/w 858.3 FY21 1Q21 2Q21 3Q21 4Q21 120.3 Staff
Slide 22: Provisions and other items
Provisions and other items Profit and Loss The FY21 cost of risk (excluding additional LLPs) is 67 bps and reflects a very conservative approach to provisioning Provisions and other items (€mln) LLPs (€mln) and Cost of credit* (%) over time o/w o/w o/w o/w 417.7 FY21 1Q21 2Q21 3Q21 4Q21 Additional L
Slide 23: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 23
Slide 24: Capital
Capital Capital adequacy High capital position with Pro-forma Fully Phased CET1 at 13.50% well above SREP requirement Pro-forma Fully Phased CET1 (%) Pro-forma Phased in CET1 ratio of 14.50% 13.68% -18 bps 13.50% 1 * Sept 21 Net result of the period Dec 21 Common Equity TIER 1: Common Equity TIER 1:
Slide 25: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 25
Slide 26: Final remarks
Final remarks SIGNIFICANTLY STRONGER COMPETITIVE POSITION COUPLED WITH A MAJOR IMPROVEMENT IN OVERALL RISK PROFILE STRONG INCREASE IN CORE BUSINESS PROFITABILITY DRIVEN BY EXCELLENT COMMERCIAL PERFORMANCE NPE RATIOS DECLINING SIGNIFICANTLY AS COVERAGE GROWS STRONG CAPITAL POSITION WELL ABOVE SREP RE
Slide 27: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 27
Slide 28: Liquidity
Liquidity Annexes High level of liquidity with LCR >200% and liquidity buffer close to 31.1 €bn Total eligible Assets over time* (€mln) Eligible Assets Pool Composition (%) +14.6% 32,209 29,613 30,878 31,100 28,095 19,924 20,307 21,426 9,877 10,047 10,793 9,452 Dec 20 Sep 21 Dec 21 Total eligible as
Slide 29: P&L – One off items
P&L – One off items Annexes 112.9 €mln one offs recognised in FY21 mainly following going concern acquisition and cost base optimisation (€mln) 9M21 4Q21 FY21 FY21 Notes Net interest income - - - Net commission income - - - Core Income - - - Dividends - - - Net income from financial activities +21.2
Slide 30: Net Customer loans
Net Customer loans Annexes Portfolio composition Net customer loans breakdown by sector (€mln) Customer loans breakdown by geographical areas1(%) % on Total Δ% Business sector Dec 21 Customer vs Dec 20 Loans North Centre Manufacturing 12,669 16.0% +65.2% Wholesale and retail services, 6,843 8.6% +54
Slide 31: Asset quality
Asset quality Annexes Asset quality breakdown (excl. debt securities) Gross exposures (€mln) Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 Chg Q/Q Chg Y/Y comp. % comp. % comp. % comp. % comp. % Abs. Chg (%) Abs. Chg (%) Non Performing Exposures (NPEs) 4,343 7.8% 4,778 6.1% 4,470 5.7% 4,383 5.5% 4,025 4.9% -35
Slide 32: Financial Assets: highlights
Financial Assets: highlights Annexes Bond PTF Geographical breakdown (%) Govies PTF Geographical breakdown (%) Other Other Germany 7.0% 24.7% 5.4% USA 6.1% Italy Spain USA 40.7% 12.9% 5.5% Spain 7.2% Italy 68.5% Germany 8.0% France 13.9% Bonds PTF Maturities1 (€bn) 18.3 Italian Govies Maturities1 (€
Slide 33: Bond maturities and issuances: highlights
Bond maturities and issuances: highlights Annexes Outstanding bonds1 (€bn) Bonds issued (€bn) 1.2 Dec 20 Dec 21 0.9 0.6 0.6 0.7 Wholesale bonds 3.5 3.9 0.6 1.2 o/w covered bonds 1.9 1.9 0.5 0.5 0.5 o/w subordinated bonds 0.9 0.9 0.1 0.3 0.1 0.1 0.1 0.2 Retail bonds 1.0 0.9 2016 2017 2018 2019 2020 2
Slide 34: Contacts for Investors and Financial Analysts
Contacts for Investors and Financial Analysts Fabio Pelati Nicola Sponghi Head of Investor Relations Investor Relations Via Aristotele, 195 - 41126 Modena - Italy Via Aristotele, 195 - 41126 Modena - Italy +39 059 2021396 +39 059 2022219 fabio.pelati@bper.it nicola.sponghi@bper.it 34