Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca - Banca di Credito Finanziario — Q3 2024 Earnings Presentation
56 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, May 10, 2024
Slide 1: Mediobanca 9M/3Q Results as at 31 March 2024
MEDIOBANCA 9M/3Q RESULTS AS AT 31 MARCH 2024 Milan, 10 May 2024
Slide 2: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 3: Effective 9M Actions & Results
EFFECTIVE 9M ACTIONS & RESULTS ALL DIVISIONS WELL PERFORMING AND STRONGLY POSITIONED 9M RESULTS: Capital efficient growth and high shareholders’ remuneration Group revenues up 9% to €2.6bn, RWAs down 5% to €49bn on WM and INS growth, CIB K-lighter business, CF value driven origination COR reduced at
Slide 4: 9M24 KPIs
9M24 KPIS REVENUES >€2.6BN, NET PROFIT > €0.9BN, ROTE @13% Executive summary Section 1 Financial results Highlights MEDIOBANCA GROUP – 9M as at Mar24 EPS: 20% growth to €1.11 EPS BVPS TBVPS No. shares/ TBVPS: 15% growth to €11.2 ow treasury PER DPS: first interim dividend approved @ €0.51 SHARE €1.1
Slide 5: Strong 3Q: Revenues ~€900m, CoR 48bps, Net Profit €335m
STRONG 3Q REVENUES ~€900M, COR 48BPS, NET PROFIT €335M Executive summary Section 1 Group: sound quarter Mediobanca Group – 3Q results as at Mar24 High revenues €898m (up 18% YoY and 4% QoQ): Revenues Fees CoR Net profit solid NII ~€500m, fees ~€240m and strong INS results CoR at 48bps (up 8bps YoY b
Slide 6: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 7: Selective and Value-Driven Asset Growth
SELECTIVE AND VALUE-DRIVEN ASSET GROWTH 9M/3Q - Group results Section 2 TFAs up €12bn YoY (€3bn QoQ) to €96.5bn… with €2.6bn AUM&A inflow in 3Q AUM/AUA up to €70bn, deposits at €26bn €1bn conversion in AUM in 3Q at a pace faster than peers (Group TFAs, €bn) (NNM AUM&A, €bn) +14% YoY, additional €12b
Slide 8: Well Diversified Revenue Growth
WELL DIVERSIFIED REVENUE GROWTH 9M/3Q - Group results Section 2 Group revenues by division (YoY, 9M, €m) WM revenues (3M, €m) +9% YoY 240 232 218 Avg 205 58 (29) 56 FY23 77 47 -5%1 +19%1 1Q24 2Q24 3Q24 +6%1 +12%1 CF revenues (3M, €m) 2,628 305 2,419 286 298 280 1Q24 2Q24 3Q24 Revenues WM CF INS HF &
Slide 9: NII: Solid Trend Driven by A&L Management
NII: SOLID TREND DRIVEN BY A&L MANAGEMENT… 9M/3Q - Group results Section 2 NII trend by division (€m, 3M) Loan yield and loan-funding spread1 +15% YoY 1,492 1,299 5.7% 5.8% 5.9% 501 Loan yield 502 496 o/w 7 inflat. 496 447 456 2.3% 2.3% 2.4% 82 60 58 43 396 42 Funding cost2 42 78 80 74 79 75 67 68 1
Slide 10: With Comfortable Funding Position
WITH COMFORTABLE FUNDING POSITION 8.7BN RAISED IN LAST 9M AT 119BPS VS EUR3M 9M/3Q - Group results Section 2 WM funding1 stable, strong bond issuance (>€6bn in 9M, €4.2bn in 3Q), with diversified market access across the capital structure TLTRO 80% reimbursed (€3.5bn in 9M, €1.25bn in 3Q) (€bn) (€bn
Slide 11: Fees: Healthy Trend (>€200m in Last Quarters)
FEES: HEALTHY TREND (>€200M IN LAST QUARTERS) 9M/3Q - Group results Section 2 Fee income trend by division (€m, 3M) CIB fees (€m, 3M) 86 91 Flat YoY 9 8 Specialty fin 53 15 17 7 15 Lending 8 1 658 660 9 CapMkt 14 56 50 Advisory 263 23 242 238 3Q23 2Q24 3Q24 210 117 185 185 86 180 91 WM fees (€m, 3M)
Slide 12: Costs Driven by Business-Enhancing Factors
COSTS DRIVEN BY BUSINESS-ENHANCING FACTORS 9M/3Q - Group results Section 2 MB Group cost by nature and division (€m) MB Group cost/income trend by division (%) 19 28 (4) 1,124 46 1,035 (o/w 18 Arma) 67% 66% 587 536 50% 43% 43% Headcount Headcount +203 FTE 42% 5,184 5,387 30% 31% 499 537 9M Mar23 WM
Slide 13: Group CoR Reduced at 50bps
GROUP COR REDUCED AT 50BPS 9M/3Q - Group results Section 2 CoR trend (bps) Overlay stock trend (€m) 9M23 9M24 Group 53bps Group 50bps CF 143bps CF 167bps 269 CIB 22bps CIB -2bps 243 20 236 165 168 169 40 24 23 146 142 141 148 CF 32 32 71 209 57 187 181 48 40 46 46 48 GROUP 60 11 9 6 5 7 WM 5 5 10 8
Slide 14: Prudent Staging
PRUDENT STAGING GROSS NPL RATIO AT 2.5% AND HIGH COVERAGE RATIOS 9M/3Q - Group results Section 2 Gross NPLs – Stage 31 Net NPLs – Stage 31 ➢ Stage 3 – Gross NPLs up 2% QoQ and (Net exposure/Loans) broadly flat vs June to 2.5% of gross 72.1% loans, with solid trend in all divisions. Very 69.1% 69.6%
Slide 15: Asset Quality by Divisions
ASSET QUALITY BY DIVISIONS 9M/3Q - Group results Section 2 Net NPLs (€m) of which bad loans (€m) NPL coverage NPLs as % of loans (“deteriorate”) (“sofferenze”) 72% Gross +1% 69% 70% 2.5% 2.4% 2.5% Mediobanca 0.7% 0.8% 0.8% 374 401 404 Group 41 33 34 Net June23 Dec23 Mar24 June23 Dec23 Mar24 June23 D
Slide 16: Capital Optimization and Reallocation Under Way
CAPITAL OPTIMIZATION AND REALLOCATION UNDER WAY 9M/3Q - Group results Section 2 RWAs trend by division (€bn, incidence %) Divisional RoRWA (annualized, %) -5% YoY 3.6% 51.1 100% 3.2% 49.1 48.8 100% 7% 3.4% 3.4 4.3 3.9 8% 3.0% 8.4 16% 2.7% 8.4 8.1 17% 2.8% 5.8 11% 5.9 5.8 12% 2.6% 2.3% 13.3 26% 14.5
Slide 17: Sound Capital Creation, High Shareholder Remuneration
SOUND CAPITAL CREATION, HIGH SHAREHOLDER REMUNERATION CET1 PHASE-IN AND FULLY LOADED @15.2% 9M/3Q - Group results Section 2 CET1¹ ratio 3Q24 trend CET1¹ ratio 9M24 trend 175bps Shareholders distribution (45)bps +65bps 15.3%1 (10)bps +185bps (130)bps (20)bps 15.2%1 15.9%1 +25bps (45)bps +20bps (55)bp
Slide 18: Sound 9M Performance
SOUND 9M PERFORMANCE 9M/3Q - Group results Section 2 Financial results Highlights 9m D 3Q24 2Q24 3Q23 Sound 9M24 results with GOP at €1,309m, up 11% YoY, driven by €m Mar24 YoY1 Mar24 Dec23 Mar23 revenue growth; C/I ratio and CoR under control. ROTE at 13% Total income 2,628 +9% 898 867 760 and RoRW
Slide 19: 9M24 ESG Progression
9M24 ESG PROGRESSION 9M/3Q - Group results Section 2 GOVERNANCE SOCIAL ENVIRONMENT 2023 AGM approved all items proposed The Group has celebrated the first two CDP score upgraded by two notches by the BoD, including: years of “toDEI” (Diversity & Inclusion from “C” to “B” initiative), set up with the
Slide 20: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 21: Group RoRWA Up to 2.6% Driven by K-Light Businesses
GROUP RORWA UP TO 2.6% DRIVEN BY K-LIGHT BUSINESSES 9M Divisional results Section 3 Revenues (€m, 9M) GOP risk adj. (€m, 9M) Net profit (€m, 9M) RoRWA & ROTE (%) 5.0% 17.0% 4.5% ROTE 13% 15.0% 13% +9% 4.0% +11% 13.0% +20% 3.5% Mediobanca 11.0% 3.0% 2,628 9.0% 1,309 2.5% 2,419 1,174 2.6% Group 946 7.
Slide 22: Wealth Management: One Brand – One Culture Strategic Path
WEALTH MANAGEMENT “ONE BRAND – ONE CULTURE” STRATEGIC PATH IN 9M 9M/3Q - Divisional results - WM Section 3 MBWM: MBPremier rebranding and PIB Model well received by clients and bankers ➢ Launch of Mediobanca Premier on 15 January, followed by strong rebound in recruitment (42 new professionals hired
Slide 23: WM: Double-Digit Growth Driven by ~€7bn NNM
WM: DOUBLE-DIGIT GROWTH DRIVEN BY ~€7BN NNM IN AUM/AUA 9M REVENUES €690m (up 12%) – 9M NET PROFIT >€150m (up 18%) 9M/3Q - Divisional results - WM Section 3 Financial results Highlights Back by strong investments in distributions and positive 9m D 3Q24 2Q24 3Q23 €m Mar24 YoY1 Mar24 Dec23 Mar23 market
Slide 24: MBWM Confirms Capability to Grow at 2x System Speed
MBWM CONFIRMS ITS CAPABILITY TO GROW AT 2X SYSTEM SPEED 9M/3Q Divisional results - WM Section 3 Italian asset gatherers and MBWM Net New Money (€bn, % of stock) Focus on AUM Rate of growth (NNM from AUM/AUA as % stock) growth rate in 3Q MBWM +4.3% +3.6% +3.0% +3.9% +4.0% +2.4% Market +2.9% +2.1% +1.
Slide 25: Net New Money: ~€7bn from AUM/AUA in 9M
NET NEW MONEY: ~€7BN FROM AUM/AUA IN 9M, UP 18% YOY TFAs UP TO ~€97BN – AUM/AUA UP TO €70BN 9M/3Q Divisional results - WM Section 3 Group TFAs trend (€bn) MBWM: NNM by quarter (€bn) +15% 5.1 96.5 4.4 88.0 3.4 2.9 5.1 2.5 1.3 Focus on 27.3 2.3 1.0 0.8 0.1 3Q AUM&A mix 20.6 1.2 0.1 NNM breakdown • €1b
Slide 26: Key Initiatives
KEY INITIATIVES 9M/3Q Divisional results - WM Section 3 TFAs: €43bn (+16% YoY, +3% QoQ), €33bn AUM/AUA (+28% YoY, +7% QoQ), €10bn deposits (-11% YoY, -9% QoQ) Key initiatives in 9M: - Major development of Private Markets initiatives: launch of the TEC2, club deal fundraising with Italian SMEs with p
Slide 27: First Achievements
FIRST ACHIEVEMENTS 9M/3Q Divisional results - WM Section 3 Mediobanca Premier was officially launched on 15 January, with the aim of becoming a market leader in the €500K-€5m customer segment, by leveraging on the advisory, asset management, capital markets and Corporate & Investment Banking capabil
Slide 28: CIB One Brand – One Culture Strategic Path
CIB “ONE BRAND – ONE CULTURE” STRATEGIC PATH IN 9M 9M/3Q Divisional results - CIB Section 3 MBCIB: leading international fee-driven and client led investment bank; One Franchise approach in Italy with WM ✓ ➢ M&A MB deal flow in 9M: 541 transactions announced (up 57% YoY2) ➢ 43% internationally, 30%
Slide 29: CIB: Resilient High Profitability
CIB: RESILIENT HIGH PROFITABILITY K OPTIMIZATION, SUPERIOR ASSET QUALITY, PROGRESSIVE INDUSTRY RECOVERY 9M/3Q - Divisional results - CIB Section 3 Financial results Highlights 9m D 3Q24 2Q24 3Q23 RoRWA kept at 1.2% due to €m Mar24 YoY1 Mar24 Dec23 Mar23 Total income 536 -5% 194 201 135 Continuing RW
Slide 30: Revenues: Recovery in IB and AP Consolidation
REVENUES: RECOVERY IN IB AND AP CONSOLIDATION 9M/3Q - Divisional results - CIB Section 3 Revenue by product (3M, €m) Highlights 565 9M24 revenues at €536m, down 5% YoY in part due to comparison with best-ever results reported in 1H23, but with 248 536 last two quarters well above historical averages
Slide 31: In a Less Challenging Environment
IN A LESS CHALLENGING ENVIRONMENT… 9M/3Q Divisional results - CIB Section 3 2021 remains a record year in IBD while 2022 and 2023 have seen a significant contraction 1Q24 closed with a significant rebound in completed deals, driven by strong DCM activity Better outlook ahead shown by 1Q24 upturn in
Slide 32: Leadership Confirmed in Investment Banking in Italy
…LEADERSHIP CONFIRMED IN INVESTMENT BANKING IN ITALY… 9M/3Q Divisional results - CIB Section 3 M&A Italy 9M FY23/24 by Deal Value ($bn)1 M&A Italy 9M FY23/24 by # of Deals1 DCM Italy 9M FY23/24 ($bn – Bookrunner)2 #deals 1 ISP 5.1 48 1 JPM 41.7 1 34 2 UCG 4.3 44 2 40.3 2 ROTH 31 3 3.5 34 3 EVR 35.1
Slide 33: Demonstrating Ability to Navigate the Market, Resilient in M&A
…DEMONSTRATING ABILITY TO NAVIGATE THE MARKET, WITH A RESILIENT PERFORMANCE IN M&A… 9M/3Q Divisional results - CIB Section 3 Selected M&A Italian Large-Cap Transactions Despite slow M&A activity in 2023 due to buyer/seller valuation gap and macro challenges, M&A results resilient in 9M 2023/24. Pend
Slide 34: As Well as in Capital Markets and Lending
…AS WELL AS IN CAPITAL MARKETS AND LENDING 9M/3Q Divisional results - CIB Section 3 During the last 9M, Mediobanca acted as JGC in the €653m ABB of BMPS, Selected ECM Transactions and as JGC in the €1.2bn Campari combo deal (ABB+CB) and as Sole GC in March 2024 January 2024 December 2023 September 2
Slide 35: Consumer Finance One Brand – One Culture Strategic Path
CONSUMER FINANCE “ONE BRAND – ONE CULTURE” STRATEGIC PATH IN 9M 9M/3Q Divisional results - CF Section 3 Leadership in term of new business, risk profile and sustainable high profitability ➢ Record new business both for 9M (€6.1bn) and for 3M (€2.2bn) with: ➢ Repricing: new business yield fully recov
Slide 36: Consumer Finance: Sound Growing Path
CONSUMER FINANCE: SOUND GROWING PATH INCREASE IN COR, COF AND COSTS EFFICIENTLY MANAGED DUE TO COMPASS BUSINESS MODEL 9M/3Q - Divisional results - CF Section 3 Financial results Highlights 9M ∆ 3Q 2Q 3Q Strong commercial activity in 9M24, with results confirming the €m Mar24 YoY1 Mar24 Dec23 Mar23 v
Slide 37: New Loans Up Delivering Record Volumes with Effective Repricing
NEW LOANS UP DELIVERING RECORD VOLUMES COUPLED WITH EFFECTIVE REPRICING 9M/3Q Divisional results - CF Section 3 New loans by product (9M, €bn) Loan book net profitability (3M, %) up 4% 10.0% 9M avg new 5.9bn 6.1bn 9.5% 12.00% loans yield up 9.0% ~200bps YoY 2.2 2.0 2.0 10.00% 1.9 2.0 8.5% 1.9 1.9 9M
Slide 38: BNPL Materializing in Volumes and Revenue Contribution
BNPL MATERIALIZING IN TERMS OF VOLUMES AND REVENUE CONTRIBUTION 9M/3Q Divisional results - CF Section 3 BNPL new loans and loan book (3M, €m) Fee income (3M, €m) 9M BNPL new loans: €358m up 7% 9M fees: 110m 9M fees: 103m ow €23m insurance ~3X ow €30m insurance and €15m BNPL 250 231 45 and €8m BNPL 3
Slide 39: Asset Quality Confirmed as Healthy
ASSET QUALITY CONFIRMED AS HEALTHY 9M/3Q Divisional results - CF Section 3 Early risk indicators stabilizing after modest increase… …reflected in a CoR normalization… Early deterioration index LLPs (€m) and cost of risk (bps) (loans entering recovery status/avg. loans; 3 months average) 9.00% 9M24:
Slide 40: Insurance: Solid Contribution
INSURANCE: SOLID CONTRIBUTION 9M/3Q - Divisional results – Insurance Section 3 Financial results Highlights 9m D 3Q24 2Q24 3Q23 9M24 net profit at €353m, up 25% YoY reflecting: €m Mar24 YoY1 Mar24 Dec23 Mar23 Higher revenues (up 19% YoY) fostered by solid AG Total income 349 +19% 126 80 95 contribut
Slide 41: Holding Functions: Improved Results
HOLDING FUNCTIONS: IMPROVED RESULTS 9M/3Q - Divisional results – HF Section 3 Financial results Highlights 9M24 net loss at €18m, 80% lower YoY, reflecting: 9m D 3Q24 2Q24 3Q23 Revenues up 38% YoY, with NII up 2x YoY, on higher interest €m Mar24 YoY1 Mar24 Dec23 Mar23 rates and increased banking boo
Slide 42: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 43: Closing Remarks
CLOSING REMARKS Closing remarks Section 4 ON TRACK TO DELIVER OUR VISION OF MEDIOBANCA Centred on Wealth Management… WM: solid 9M revenues (€690m) and net profit (>€150m), NNM strong (>€5bn) and rebalancing in mix, accelerated recruitment and client acquisition after Mediobanca Premier rebranding wi
Slide 44: Clear Growth Opportunities Ahead in Any Scenario
CLEAR GROWTH OPPORTUNITIES AHEAD IN ANY SCENARIO INCLUDING IN A DECREASING INTEREST RATE ENVIRONMENT Closing remarks Section 4 FY26 3Y CAGR FY23 FY24 FY25 BP26T 23/26 ➢ Revenues €3.3bn ~€3.5bn €3.8bn +5% Capital ➢ NII €1.8bn +10% efficient ➢ Fees €0.8bn growth ➢ RWAs €51bn €51bn flat ➢ TFAs €88bn >€
Slide 45: Q&A Session
MEDIOBANCA 9M/3Q RESULTS AS AT 31 MARCH 2024 Q&A SESSION
Slide 46: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 47: Mediobanca Group P&L
MEDIOBANCA GROUP P&L 9M results as at March 2024 Annex 1 9M 9M 3Q 2Q 1Q 4Q 3Q €m D YoY1 Mar24 Mar23 Mar24 Dec23 Sept23 June23 Mar23 Total income 2,628 2,419 +9% 898 867 864 885 760 Net interest income 1,492 1,299 +15% 496 501 496 502 456 Fee income 660 658 +0% 238 242 180 185 185 Net treasury income
Slide 48: Mediobanca Group A&L
MEDIOBANCA GROUP A&L 9M results as at March 2024 Annex 1 D D €bn Mar24 Dec23 June23 Mar23 QoQ1 YoY1 Funding 60.4 60.6 60.5 58.8 -0% +3% Bonds 26.2 23.9 22.3 21.4 +9% +22% WM deposits 26.4 27.7 28.2 27.5 -5% -4% ECB 2.1 3.4 5.6 6.2 -38% -67% Others 5.7 5.6 4.5 3.6 +2% +59% Loans to customers 52.0 51.
Slide 49: Wealth Management Results
WEALTH MANAGEMENT RESULTS 9M results as at March 2024 Annex 1 9M 9M 3Q 2Q 1Q 4Q 3Q €m D YoY1 Mar24 Mar23 Mar24 Dec23 Sept23 June23 Mar23 Total income 690 614 +12% 232 240 218 207 206 Net interest income 320 265 +21% 107 106 107 96 93 Fee income 363 341 +6% 123 132 108 108 111 Net treasury income 7 7
Slide 50: CIB Results
CIB RESULTS 9M results as at March 2024 Annex 1 9M 9M 3Q 2Q 1Q 4Q 3Q €m D YoY1 Mar24 Mar23 Mar24 Dec23 Sept23 June23 Mar23 Total income 536 565 -5% 194 201 142 148 135 Net interest income 233 209 +12% 80 78 75 79 74 Fee income 225 239 -6% 91 86 48 51 53 Net treasury income 78 117 -33% 22 37 19 18 8
Slide 51: Consumer Finance Results
CONSUMER FINANCE RESULTS 9M results as at March 2024 Annex 1 9M 9M 3Q 2Q 1Q 4Q 3Q €m D YoY1 Mar24 Mar23 Mar24 Dec23 Sept23 June23 Mar23 Total income 888 842 +6% 305 298 286 280 281 Net interest income 778 740 +5% 266 259 254 245 247 Fee income 110 103 +7% 39 38 33 35 34 Total costs (271) (252) +8% (
Slide 52: Insurance Results
INSURANCE RESULTS 9M results as at March 2024 Annex 1 9M 9M 3Q 2Q 1Q 4Q 3Q €m D YoY1 Mar24 Mar23 Mar24 Dec23 Sept23 June23 Mar23 Total income 349 293 +19% 126 80 143 170 95 Impairments 20 (3) n.m. 11 10 (1) 5 9 Net result 353 283 +25% 130 86 137 157 100 Book value (€bn) 4.7 2.9 +62% 4.7 4.4 4.3 4.2
Slide 53: Holding Function Results
HOLDING FUNCTION RESULTS 9M results as at March 2024 Annex 1 9M 9M 3Q 2Q 1Q 4Q 3Q €m D YoY1 Mar24 Mar23 Mar24 Dec23 Sept23 June23 Mar23 Total income 180 131 +38% 46 55 80 90 49 Net interest income 139 68 n.m. 36 51 53 77 36 Net treasury income 33 38 -11% 10 2 21 5 11 Fee income 8 25 -70% (0) 2 6 7 2
Slide 54: Glossary
GLOSSARY MEDIOBANCA BUSINESS SEGMENT PROFIT & LOSS (P&L) and BALANCE SHEET CIB Corporate and investment banking ESG Environmental, Social, Governance WB Wholesale banking FAs Financial Advisors SF Specialty finance FVOCI Fair Value to Other Comprehensive Income CF Consumer finance GOP Gross operatin
Slide 55: 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 56: Investor Contacts
INVESTOR CONTACTS 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.relations@medio
Mediobanca - Banca di Credito Finanziario — Q3 2024 Earnings Presentation on 6ix