Banca Monte Dei Paschi Di Siena S.p.a. · MIL:BMPS
Banca Monte Dei Paschi Di Siena — Kepler Italian Financial Conference 2023
22 slides from Banca Monte Dei Paschi Di Siena's conference presentation, Nov 20, 2023
Slide 1: MPS: A Clear and Simple Commercial Bank
MPS: A Clear and Simple Commercial Bank Kepler Italian Financial Conference Franciacorta, 20th November 2023
Slide 2: Agenda
Agenda ▪ The starting point: a nationwide simple commercial bank ▪ A successful relaunching path ▪ The latest performance ▪ A supportive outlook 2
Slide 3: Historic franchise with a view to innovation
Historic franchise with a view to innovation Scale Franchise Reach Capabilities #1.4k €153bn Historic franchise with Branches covering Digital platform with 554 Total commercial savings (1,2) ~550 years of history all Italian regions financial advisors (6.7% m.s. nationwide (4)) €70bn #1 in Tuscany
Slide 4: A nationwide simple commercial bank
A nationwide simple commercial bank Market shares and GDP coverage (1) 9M23 operating income: breakdown by commercial segments Ranked by % Italian Market shares by (1) % Italian GDP Branches (#) GDP Coverage GDP per area Branches (%) Ca. 90% of operating income are related to Retail and SMEs North-W
Slide 5: Agenda
Agenda ▪ The starting point: a nationwide simple commercial bank ▪ A successful relaunching path ▪ The latest performance ▪ A supportive outlook 5
Slide 6: Business plan built on solid strategic pillars
Business plan built on solid strategic pillars Vision A clear and simple commercial Bank 1 2 3 Build a solid Strategic Achieve business model Tackle the and resilient Pillars sustainability legacy issues balance sheet Our historic franchise and brand Enablers Our talented and committed people Our ES
Slide 7: Speed of execution has been decisive…
Speed of execution has been decisive… 2022 2023 Feb ✓ New CEO appointment Jan ✓ Moody’s rating upgrade by 2 notches 2022 2023 ✓ New Business Plan ✓ EUR 750mln Senior preferred bond issue ✓ Execution of merger of subsidiaries ✓ Pre-underwriting agreement signed for share capital ✓ Effectiveness of me
Slide 8: EU-Wide Stress Test results
… leading also to acknowledgment by the Supervisory Authorities, as per the 2023 EBA EU-Wide Stress Test results CET1 ratio fully loaded in the Stress Test 19.83% ▪ Best ever results in Stress Tests: 15.6% o Adverse scenario: 11.98% considering the cost savings 11.98% stemming from over 4,000 staff
Slide 9: Today a stronger, more efficient and profitable Bank, well on track in reaching Business Plan targets
Today a stronger, more efficient and profitable Bank, well on track in reaching Business Plan targets Stronger Solidity: CET1 ratio FL Cost savings: FTE reduction Improved Balance Sheet: Gross NPE Ratio % #k % ▪ CET1 FL stronger thanks to capital increase and ▪ FTE optimization with evolution in lin
Slide 10: Agenda
Agenda ▪ The starting point: a nationwide simple commercial bank ▪ A successful relaunching path ▪ The latest performance ▪ A supportive outlook 10
Slide 11: Net profit
Net profit Quarterly evolution Yearly evolution €/mln €/mln 929 383 310 236 1Q23 2Q23 3Q23 -334 9M22 9M23 • 3Q23 net profit at EUR 310mln, after EUR –75mln charge to DGS scheme, confirming MPS’s capability to deliver sustainable profitability • 9M23 net profit at EUR 929mln, driven by strong operati
Slide 12: Gross operating profit: strong increase, supported by materially improving jaws
Gross operating profit: strong increase, supported by materially improving jaws Operating income Gross operating profit €/mln +22.9% €/mln 2.1x 2,804 2,281 +27.8% 1,446 2,674 2,093 9M22 9M23 Core revenues (NII + Fees) Other financial revenues 679 Operating costs €/mln -15.2% 1,602 9M22 9M23 1,358 Co
Slide 13: Net customer loans built on solid commercial basis
Net customer loans built on solid commercial basis Net loans €/bn -2.0% -1.2% 68.0 68.7 67.6 66.7 36.7 37.5 36.7 35.9 31.4 31.2 30.9 30.9 30.8 3.0 3.2 3.2 3.5 Dec 22 Mar 23 Jun 23 Sep 23 • Resilient net loans stock, in a high interest rates environment, which led to a lower credit demand Loans prese
Slide 14: Total commercial savings: client assets increasing
Total commercial savings: client assets increasing Total commercial savings(1) €/bn +2.9% +0.7% 148.2 150.1 151.4 152.6 Q/Q vs. Dec 22 55.5 56.3 56.6 55.5 -2.0% -0.1% 22.6 25.5 27.1 27.1 +2.4% +4.7% 70.1 68.3 67.8 70.0 Dec 22 Mar 23 Jun 23 Sep 23 Deposits (2) AuC AuM • Total commercial savings stead
Slide 15: Operating costs benefiting of decisive business plan actions
Operating costs benefiting of decisive business plan actions HR costs Operating costs €/mln -19.5% €/mln -15.2% 1,067 859 1,602 1,358 9M22 9M23 Non-HR costs €/mln -6.7% 535 499 9M22 9M23 9M22 9M23 • 9M23 operating costs down by 15.2% vs 9M22, fully benefitting from structural FTE reduction and manag
Slide 16: Gross NPE stock
Gross NPE stock Gross NPE stock Total NPE coverage €/bn 51.5% 50.8% 3.6 48.1% 49.1% 3.4 3.4 3.3 3.3 Dec 22 Jun 23 Sep 23 Sep 23 proforma(2) Dec 22 Mar 23 Jun 23 Sep 23 Sep 23 Cost of risk (bps) (2) proforma 55 52 Gross NPE 4.2% 4.1% 4.3% 4.4% 4.1% ratio(1) Net NPE 2.2% 2.2% 2.1% 2.1% 2.2% ratio FY22
Slide 17: Extraordinary litigations and extrajudicial claims
Extraordinary litigations and extrajudicial claims Gross petitum(1) Key info Key upcoming events €/bn -50% ▪ Following the sentence of the Supreme Court on the Vigni/Mussari criminal ▪ 27th November 2023: 1.6 1.6 proceeding, material downgrade in risk, second degree sentence 0.8 from “possible” to “
Slide 18: Capital
Capital CET1 ratio fully loaded Fully loaded capital ratios 15.6% 15.9% 16.7% 14.9% Dec 22 Mar 23 Jun 23 Sep 23 SREP CET1 ratio (%) 15.6% 14.9% 15.9% 16.7% 8.81% 8.8% Tier 1 ratio (%) 15.6% 14.9% 15.9% 16.7% 10.83% Total capital Dec 22 Mar 23 Jun 23 Sep 23 SREP 2023 19.5% 18.5% 19.4% 20.2% 13.52% ra
Slide 19: Agenda
Agenda ▪ The starting point: a nationwide simple commercial bank ▪ A successful relaunching path ▪ The latest performance ▪ A supportive outlook 19
Slide 20: 2023 guidance
2023 guidance 2023 guidance NII >2.1bn Fees >1.3bn Costs <1.85bn Cost of Risk ~55 bps Net profit >1.1bn CET1 ratio FL >17% 20
Slide 21: A promising future
A promising future Headwinds Supporting factors ▪ Average 3M Euribor in 2024 higher than 2023 NII ▪ Backbook rollover ▪ Consumer loans acceleration ▪ Euribor expected to go down Fees ▪ Wealth management fees rebound ▪ National labour contract renewal Costs ▪ Additional efficiency actions ▪ Slightly
Slide 22: Disclaimer
Disclaimer THIS DOCUMENT IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THIS DOCUMENT, WHICH WAS PREPARED BY BANCA MONTE DEI PASCHI DI SIENA S.P.A. (THE “COMPANY” OR “BMPS” AND TOGETHER WITH ITS CONSOLIDATED SUBSIDIARIES, THE “GROUP”), MAY NOT BE REPRODUCED IN ANY FORM, FURTHER DISTRIBUTED OR
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