Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca — Q1 FY2017/18 Earnings Presentation
39 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, Oct 26, 2017
Slide 1: Mediobanca BoD 1Q18/3M results as at 30 September 2017
Mediobanca BoD 1Q18/3M results as at 30 September 2017 Milan, 26 October 2017
Slide 2: Agenda
Agenda Section 1. Group results as at September 2017 Annexes 1. Quarterly segmental reporting tables 2. Glossary
Slide 3: Positive start to FY 2017/18
Positive start to FY 2017/18 3M results as at September 2017 Section 1 Best-ever quarterly results by revenues, GOP and net profit Revenues up to ~€600m driven by all divisions and income sources CoR at its lowest-ever level (57bps), asset quality confirmed excellent Net profit up 11% to €301m Robus
Slide 4: Reshaping continuing…
Reshaping continuing… 3M results as at September 2017 Section 1 WEALTH MANAGEMENT: ROAC 11% CONSUMER BANKING: ROAC 30% WM reshaping taking traction Strong performance for third quarter in a row Affluent: franchise rationalization complete, cost (net profit up 35% to €80m) synergies visible, focus no
Slide 5: … in WM especially paving the way for robust expansion
… in WM especially paving the way for robust expansion 3M results as at September 2017 Section 1 Affluent & Premier Private HNWI Network rationalization following Barclays -CheBanca! Banca Esperia integration in progress: merger completed ahead of schedule Merger complete by end-2017 Total branches
Slide 6: Best-ever 3M result well diversified among revenue sources
Best-ever 3M result well diversified among revenue sources 3M results as at September 2017 Section 1 MB Group IQ17 operating profit by source (€m) +27%, +25% adj¹ 36 43 11 7 32 18 288 227 +6% +30% +22% +15% -40% +20% +1% adj.1 +10% adj.1 +14% adj.1 +5% adj.1 GOP NII Fee Treasury AG LLPs Total GOP FY
Slide 7: Growth posted by all divisions
Growth posted by all divisions 3M results as at September 2017 Section 1 MB Group IQ17 operating profit by division (€m) +27%, +25% adj¹ (4) 13 7 31 14 288 +51% +15% +36% +18% +36% adj.1 227 GOP CIB Consumer Wealth Principal Holding GOP FY17-IQ Management Investing Functions FY18-IQ Sept16 Sept17 PI
Slide 8: NII up 6% on revamped origination …
NII UP 6% on revamped origination … 3M results as at September 2017 Section 1 NII by division (€m) New loans by division (€bn) +6% WB Factoring +32% +23% 326* +2% 332 314 11 15 2.0 11 1.5 0.8 0.9 1.0 59 54 1.1 65 66 64 IQ17 Avg FY17 IQ18 IQ17 Avg FY17 IQ18 50 214 Consumer Mortgages 205 203 +9% +33%
Slide 9: … and lower cost of funding
… and lower cost of funding 3M results as at September 2017 Section 1 Funding stock breakdown (€bn) Cost of funding trend (bps vs Eur3M) 50.2 49.1 48.5 7.1 6.1 6.2 155 155 145 5.5 5.9 4.4 105 100 20.8 19.3 20.1 90 85 80 17.8 17.8 65 16.8 IQ17 4Q17 IQ18 FY16 FY17 1Q18 WM deposits MB bonds ECB Other M
Slide 10: Fee income up 30%, driven by WM & CIB
Fee income up 30%, driven by WM & CIB 3M results as at September 2017 Section 1 Group fees by quarter (€m) Group fees by quarter (€m) WM: €56m fees, €40m from Private Banking and +30% €16m from the Affluent segment Private Banking: good trend in AUM (+46% YoY) +15% 138 and fees (up 20% YoY like-for-
Slide 11: Costs: increasing business, first synergies in CheBanca!
Costs: increasing business, first synergies in CheBanca! 3M results as at September 2017 Section 1 Group cost base by quarter (€m) CheBanca! cost base by quarter (€bn) Barclays Cost reduction - Savings from Internal network growth 256 rationalization Acquisitions 243 -3% +5% 59 57 45 + FAs network 2
Slide 12: Asset quality: CoR and NPLs stock down again
Asset quality: CoR and NPLs stock down again 3M results as at September 2017 Section 1 Cost of risk by division (bps) NPLs (“deteriorate”, €m) and coverage (%) 243 54% 55% 55% 55% 1,000 50% 800 45% Net NPLs 213 977 941 928 40% 201 600 NPLs coverage 35% 400 30% 87 Sept16 June17 Sept17 73 57 5 Bad Loa
Slide 13: Superior asset quality improved further
Superior asset quality improved further 3M results as at September 2017 Section 1 NPLs Bad loans Coverage As % of loans (“deteriorate”) (“sofferenze”) 69% 71% 2.7% -5% 2.4% Mediobanca -13% 977 928 54% 55% Group 181 157 0.5% 0.4% Sept16 Sept17 Sept16 Sept17 Sept16 Sept17 Sept16 Sept17 2.7% 2.6% Corpo
Slide 14: CET1 at 13.3%, still using STD model
CET1 at 13.3%, still using STD model 3M results as at September 2017 Section 1 RWA trend by division (€bn) CET1¹ phase-in trend (bps) flat flat 52.7 +0.4 52.8 +0.1 5.8 (0.4) 5.9 13.3% 13.3% -35bps 11.8 11.8 12.1% +60bps -25bps 7.7 7.3 4.3 4.3 23.1 23.5 - June17 CIB PI WM Sept17 Sept16 June17 Net PI
Slide 15: ROAC up in all divisions, ROTE adj. up to 11%
ROAC up in all divisions, ROTE adj. up to 11% 3M results as at September 2017 Section 1 Revenues GOP after LLPs Net profit ROAC +11% 11% +13% +27% 9% 598 288 Mediobanca 530 271 301 227 ROTE adj. Group IQ17 IQ18 IQ17 IQ18 IQ17 IQ18 Sept16 Sept17 +34% 11% Wealth 9% +39% Management 91 122 +52% 11 16 21
Slide 16: WM reshaping gaining momentum – ROAC 11%
WM reshaping gaining momentum – ROAC 11% 3M results as at September 2017 Section 1 Private CheBanca! HNWI (Affluent & Premier) Affluent & Premier Wealth Management (WM) MB PB Italy: Barclays reorganization ended reorganization getting speed Now focus on growth WM contribution to MB Group Revenues at
Slide 17: AUM stable QoQ with positive Private Banking growth
AUM stable QoQ with positive Private Banking growth 3M results as at September 2017 Section 1 Group AUM/AUA trend (€bn) +1% +72% 30.0 0.1 0.1 0.3 30.3 (0.2) Private & Private & 17.4 HNWI HNWI 22.9 23.1 13.5 Affluent & Affluent & Premier Premier 3.9 7.1 7.2 June16 June17 CheBanca! CMB Esperia Cairn S
Slide 18: Consumer: confirming excellent trajectory – ROAC 30%
Consumer: confirming excellent trajectory – ROAC 30% 3M results as at September 2017 Section 1 Consumer banking Outstanding performance, again New business opportunities Compass Distribution enhancing also from ECB new measures Consumer contribution to MB Group Highest quarterly results ever Compass
Slide 19: CIB sound results: ROAC up to 14%
CIB sound results: ROAC up to 14% 3M results as at September 2017 Section 1 Wholesale Banking (WB) Specialty Finance (SF) Corporate & Investment Banking (CIB) Sound results in a scenario Significant CIB top-line contributor favourable to fee production Diversified revenue mix CIB contribution to MB
Slide 20: PI: further disposals
PI: further disposals 3M results as at September 2017 Section 1 Main equity investments as at Sept17 (€m) Principal Investing Further disposals to come PI contribution to MB Group Revenues steadily high due to AG contribution HF 15% 26% Consumer 13% Equity stake disposals ongoing (1.4% in Atlantia s
Slide 21: Holding Functions: focus on optimization
Holding Functions: focus on optimization 3M results as at September 2017 Section 1 Holding Functions Treasury, ALM, central functions Leasing (HF) Optimization Ongoing Ordered deleverage ongoing HF contribution to MB Group Funding optimization ongoing: TLTRO Positive NPL reduction workout nm nm 6% 8
Slide 22: Closing remarks
CLOSING REMARKS Best-ever quarterly results for revenues (up 13% to ~€600m), GOP (up 27% to ~€290m) and net profit (up 11% to €301m) Revenues growth driven by all divisions (CIB up 2%, Consumer up 4%, WM up 34%, PI up 17%) and sources (NII up 6%, fees up 30%, trading up 22%, AG contribution up 15%)
Slide 23: Quarterly segmental reporting tables
Quarterly segmental reporting tables Annex 1 23
Slide 24: Mediobanca Group P&L
Mediobanca Group P&L 3M results as at September 2017 Annex 1 3Q 2Q 1Q 4Q 3Q D D €m Sept17 June17 Mar17 Dec16 Sept16 QoQ1 YoY1 Total income 598 539 584 542 530 +11% +13% Net interest income 332 333 320 321 314 -0% +6% Fee income 138 121 165 131 106 +15% +30% Net treasury income 39 16 42 32 32 +143% +
Slide 25: Mediobanca Group A&L
Mediobanca Group A&L 3M results as at September 2017 Annex 1 D D €bn Sept17 June17 Sept16 QoQ1 YoY1 Funding 48.5 49.1 50.2 -1% -3% Bonds 20.2 19.3 20.8 +4% -3% Retail direct deposits 13.2 13.4 13.8 -1% -4% Private banking deposits 4.6 4.5 3.0 +3% +52% ECB 4.3 5.9 5.5 -26% -21% Others 6.2 6.1 7.1 +2%
Slide 26: Mediobanca business model
Mediobanca business model Mediobanca Group Holding Functions Group ALM & Treasury Corporate & Investment Consumer Banking Wealth Management Principal Investing Banking (CIB) (CB) (WM) (PI) Corporate & Investment Consumer Banking Affluent & Premier Principal Investing Banking Compass CheBanca! Ass. G
Slide 27: CIB results
CIB results 3M results as at September 2017 Annex 1 3Q 2Q 1Q 4Q 3Q D D €m Sept17 June17 Mar17 Dec16 Sept16 QoQ1 YoY1 Total income 153 129 193 165 150 +19% +2% Net interest income 69 70 69 78 76 -2% -10% Net treasury income 31 7 32 28 26 17% Fee income 53 51 92 60 47 4% 13% Total costs (57) (70) (65)
Slide 28: WB results
WB results 3M results as at September 2017 Annex 1 3Q 2Q 1Q 4Q 3Q D D €m Sept17 June17 Mar17 Dec16 Sept16 QoQ1 YoY1 Total income 127 107 170 143 129 19% -2% Net interest income 54 59 57 67 65 -9% -17% Fee income 31 7 32 28 26 17% Net treasury income 42 40 81 49 38 5% 12% Total costs (49) (59) (56) (
Slide 29: Specialty Finance results
Specialty Finance results 3M results as at September 2017 Annex 1 3Q 2Q 1Q 4Q 3Q D D €m Sept17 June17 Mar17 Dec16 Sept16 QoQ1 YoY1 Total income 26 22 23 21 20 17% 26% Net interest income 15 11 12 11 11 32% 36% Fee income and other income 11 11 11 11 10 2% 16% Total costs (9) (11) (10) (8) (8) -19% 1
Slide 30: Consumer Banking results
Consumer Banking results 3M results as at September 2017 Annex 1 3Q 2Q 1Q 4Q 3Q D D €m Sept17 June17 Mar17 Dec16 Sept16 QoQ1 YoY1 Total income 246 222 239 240 236 +11% +4% Net interest income 214 205 205 206 203 +5% +6% Fee income 32 17 34 35 33 +90% -2% Total costs (65) (73) (70) (73) (63) -12% +2%
Slide 31: Wealth Management results
Wealth Management results 3M results as at September 2017 Annex 1 3Q 2Q 1Q 4Q 3Q D D €m Sept17 June17 Mar17 Dec16 Sept16 QoQ1 YoY1 Total income 122 128 117 123 91 -4% +34% Net interest income 64 66 61 67 50 -3% +28% Fee income 56 60 53 53 37 -6% +49% Total costs (97) (111) (95) (98) (73) -13% +33% L
Slide 32: Affluent & Premiere: CheBanca! results
Affluent & Premiere: CheBanca! results 3M results as at September 2017 Annex 1 3Q 2Q 1Q 4Q 3Q D D €m Sept17 June17 Mar17 Dec16 Sept16 QoQ1 YoY1 Total income 70 73 70 78 54 -5% +29% Net interest income 54 55 51 59 41 -2% +29% Fee income 16 19 19 19 13 -13% +28% Total costs (57) (65) (61) (66) (45) -1
Slide 33: Private Banking results
Private Banking results 3M results as at September 2017 Annex 1 3Q 2Q 1Q 4Q 3Q D D Sept17 June17 Mar17 Dec16 Sept16 QoQ1 YoY1 Total income 53 55 48 46 37 -4% 42% Net interest income 10 11 10 9 9 -5% 20% Fee income 40 41 35 34 25 -3% 61% Net treasury income 2 3 3 3 4 -4% -33% Total costs (40) (46) (3
Slide 34: Principal Investing results
Principal Investing results 3M results as at September 2017 Annex 1 3Q 2Q 1Q 4Q 3Q D D €m Sept17 June17 Mar17 Dec16 Sept16 QoQ1 YoY1 Total income 91 77 58 60 78 +18% +17% Gains from disposals 89 23 20 9 110 Impairments (0) 0 0 (1) (0) Net profit 171 102 78 64 178 +67% Book value (€bn) 3.5 3.7 3.9 4.
Slide 35: Holding function results
Holding function results 3M results as at September 2017 Annex 1 3Q 2Q 1Q 4Q 3Q D D €m Sept17 June17 Mar17 Dec16 Sept16 QoQ1 YoY1 Total income (8) (10) (8) (27) (12) Net interest income (16) (11) (18) (28) (19) Net treasury income 2 (3) 7 (3) 2 Fee income 6 4 4 4 5 Total costs (41) (52) (44) (38) (3
Slide 36: Glossary
GLOSSARY Annex 2 MEDIOBANCA 36
Slide 37: Glossary
GLOSSARY MEDIOBANCA BUSINESS SEGMENT PROFIT & LOSS (P&L) and BALANCE SHEET CIB Corporate and investment banking GOP Gross operating profit WB Wholesale banking Ls Loans SF Specialty finance LLPs Loan loss provisions CB Consumer banking M&A Merger and acquisitions WM Wealth management NAV Net asset v
Slide 38: Disclaimer
Disclaimer This presentation contains certain forward-looking statements, estimates and targets with respect to the operating results, financial condition and business of the Mediobanca Banking Group. Such statements and information, although based upon Mediobanca’s best knowledge at present, are ce
Slide 39: 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 Email: investor.relations@mediobanca.com http://www.mediobanca.com 39