Banca Monte Dei Paschi Di Siena S.p.a. · MIL:BMPS
Banca Monte Dei Paschi Di Siena — Q1 2022 Earnings Presentation
23 slides from Banca Monte Dei Paschi Di Siena's earnings presentation, May 6, 2022
Slide 1: 1Q22 Financial Results
1Q22 Financial Results 6 May 2022
Slide 2: Executive summary
Executive summary ▪ Positive net profit of EUR 10mln in 1Q22 after loss reported in 4Q21, y/y comparison impacted by 1Q21 higher gains on securities, lower provisions for risks and lower systemic charges ▪ Gross operating profit up by +23.3% q/q thanks to NII and gains on securities, offsetting high
Slide 3: Net profit
Net profit €/mln 119 10 -79 1Q21 4Q21 1Q22 • Positive net profit in 1Q22 after loss reported in 4Q21 • Y/y comparison impacted by 1Q21 higher gains on securities, lower provisions for risks and lower systemic charges 3
Slide 4: Net operating profit
Net operating profit €/mln -32.8% n.m. 203 136 -19 1Q21 4Q21 1Q22 • Net operating profit at EUR 136 mln after negative result in 4Q21 • Y/y performance impacted by lower gains on securities in 1Q22 and lower provisions in 1Q21 4
Slide 5: Gross operating profit
Gross operating profit Operating income Gross operating profit €/mln €/mln -4.6% +8.7% -11.6% 821 783 720 +23.3% 280 248 127 201 49 1Q21 4Q21 1Q22 2 Operating costs BANKING INDUSTRY €/mln -0.9% 199 199 +3.1% 153 540 535 519 1Q21 4Q21 1Q22 Capital gain from securities disposal 1Q21 4Q21 1Q22 • Gross
Slide 6: Net interest income
Net interest income €/mln +15.6% +0.0% 323 323 280 57 51 34 246 266 272 1Q21 4Q21 1Q22 Lending rate 1.84% 1.78% 1.77% Funding rate 0.21% 0.12% 0.12% Spread 1.63% 1.67% 1.66% • NII excluding TLTRO up +10.6% y/y, mainly thanks to lower cost of bonds due to maturities, reduction of term deposits and co
Slide 7: Net customer loans
Net customer loans Net loans Performing loans retail €/bn +0.9% €/bn +0.6% +0.2% +1.6% 31,0 31,1 31,2 72,6 72,1 73,3 Mar 21 Dec 21 Mar 22 Performing loans corporate €/bn +1.1% +2.6% 41.6 41.0 42.1 3,7 3,1 3,4 2,2 2,1 2,0 37,9 37,9 38,7 Mar 21 Dec 21 Mar 22 Performing loans NPEs Mar 21 Dec 21 Mar 22
Slide 8: Funding composition
Funding composition Direct funding Retail funding €/bn €/bn -0.2% 0.0% -5.7% 45.8 45.7 45.7 -1.9% 75,5 72,6 71,2 8.1 6.4 6.0 Mar 21 Dec 21 Mar 22 Corporate funding €/bn -14.1% 17,0 -5.1% 13,4 12,3 29.8 26.9 25.6 Mar 21 Dec 21 Mar 22 Current accounts Time deposits Bonds and other Mar 21 Dec 21 Mar 22
Slide 9: Italian govies portfolio
Italian govies portfolio Italian govies portfolio breakdown Italian govies portfolio at FVTOCI €/bn 12.7 13.6 12.0 4,0 Mar 21 Dec 21 Mar 22 3,9 2,8 FVTOCI Duration ~2.3 ~2.1 ~1.8 4,5 4,7 (years) 4,0 FVTOCI Credit -1.0 -1.1 -1.1 spread sensitivity 4,8 4,7 4,9 (€/mln) Mar 21 Dec 21 Mar 22 Amortized co
Slide 10: Net fee and commission income
Net fee and commission income Banking fees AuM fees €/mln €/mln +0.6% -2.5% -2.9% +2.1% 197 204 198 175 167 171 106 107 109 70 53 60 43 51 46 105 114 111 41 54 43 1Q21 4Q21 1Q22 1Q21 4Q21 1Q22 Payments and cards Current accounts and other Loans Management fees Up-front fees • Banking fees substantia
Slide 11: Indirect funding
Indirect funding Indirect funding breakdown AuM breakdown €/bn -4.4% -4.4% 104.4 104.4 62.1 65.3 62.8 99.8 Market effect q/q: 8% 8% 8% 42,4 39,1 37,1 -1.6 47% 46% 46% 62,1 65,3 62,8 -2.8 45% 46% 46% Mar 21 Dec 21 Mar 22 Mar 21 Dec 21 Mar 22 Asset under Management Asset under Custody Mutual funds Lif
Slide 12: Wealth management inflows
Wealth management inflows €/mln -18.5% +8.5% 4.153 3.384 3.119 1Q21 4Q21 1Q22 Wealth Management +920 -52 +270 net inflows • Wealth management gross and net inflows recovering compared with the last quarter, despite last months unfavourable market conditions 12
Slide 13: Operating costs
Operating costs HR costs Operating costs €/mln €/mln -1.2% +1.4% 360 356 -0.9% 351 +3.1% 540 1Q21 4Q21 1Q22 535 519 Non-HR costs €/mln -0.4% +6.8% 180 179 168 1Q21 4Q21 1Q22 1Q21 4Q21 1Q22 • Total operating costs slightly below the previous year, while higher compared to 4Q21, which was positively i
Slide 14: Gross NPE stock
Gross NPE stock Gross NPE stock Breakdown by category €/bn €/bn -1.5% -1.8% 4,1 4,1 4.1 4.1 4.0 4,0 0,1 0,1 0,0 2,4 2,3 2,2 1,5 1,7 1,8 Mar 21 Dec 21 Mar 22 Mar 21 Dec 21 Mar 22 Gross NPE 4.7% 4.9% 4.8% NPL UTP Past due ratio 4.4% 4.5% 4.5% Net NPE 2.5% 2.6% 2.4% ratio 2.4% 2.4% 2.3% • Gross NPE sto
Slide 15: Coverage and cost of risk
Coverage and cost of risk NPE coverage breakdown Cost of risk (bps) 64,7% 63,7% 65,6% 37,5% 36,7% 39,5% 25,6% 22,7% 23,5% 112 NPL Coverage UTP Coverage Past Due Coverage Mar 21 Dec 21 Mar 22 56 36 Total NPE coverage 50,8% NPLs/Total 47,4% 47,9% NPEs 1Q21 4Q21 1Q22 43.7% Mar 21 Dec 21 Mar 22 • NPE co
Slide 16: Capital
Capital CET1 ratio phased-in Regulatory capital ratios phased-in Mar 21 Dec 21 Mar 22 SREP 12,2% 12,5% 11,6% CET1 ratio (%) 12.2% 12.5% 11.6% 8.80% 8,8% Tier 1 ratio (%) 12.2% 12.5% 11.6% 10.81% Total capital 15.9% 16.1% 15.3% 13.50% ratio (%) Mar 21 Dec 21 Mar 22 SREP 2022 CET1 ratio fully phased R
Slide 17: Petitum related to disclosed financial information
Petitum related to disclosed financial information €/bn -66.9% +7.8% 5,64 1,73 1,87 Mar 21 Dec 21 Mar 22 • Petitum down 66.9% y/y • Increase vs. Dec 21 mainly due to threatened litigations, conservatively provisioned for 17
Slide 18: Conclusions
Conclusions ▪ Net profit of EUR 10mln in 1Q22 after loss reported in 4Q21 ▪ Positive signals of the commercial resilience reflected in volumes trends and commercial funding optimisation ▪ NPE coverage improved by 283 bps to 50.8% ▪ Fully loaded at 10.8%, higher by 32 bps y/y, and lower compared to D
Slide 19: Annexes
Annexes E DEI PASCHI DI SIENA
Slide 20: Reclassified Income Statement
Reclassified Income Statement Change Change € mln 1Q21 2Q21 3Q21 4Q21 1Q22 (QoQ%) (YoY%) Net Interest Income 280 306 313 323 323 +0.0% +15.6% Net fees and commission income 372 383 358 371 369 -0.6% -0.8% Profit (loss) of equity-accounted investments (AXA) 21 25 20 38 14 -62.7% -33.8% Core Revenues
Slide 21: Balance Sheet
Balance Sheet Total Assets (€/mln) Mar-21 Dec-21 Mar-22 QoQ% YoY% Loans to Central banks 26,117 20,770 15,393 -25.9% -41.1% Loans to banks 2,975 3,493 2,425 -30.6% -18.5% Loans to customers 82,259 79,380 79,260 -0.2% -3.6% Securities assets 22,562 22,127 23,382 5.7% 3.6% Tangible and intangible asse
Slide 22: Lending & Direct Funding
Lending & Direct Funding Total Lending (€/mln) Mar-21 Dec-21 Mar-22 QoQ% YoY% Current accounts 2,935 2,696 3,085 14.4% 5.1% Medium-long term loans 56,751 56,268 56,418 0.3% -0.6% Other forms of lending 12,925 13,152 13,763 4.6% 6.5% Reverse repurchase agreements 7,498 5,126 4,009 -21.8% -46.5% Impai
Slide 23: Disclaimer
Disclaimer This document and the information contained herein does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase securities, in the United States, Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would requi
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