Credito Emiliano S.p.a. · MIL:CE

Credito Emiliano — FY2022 Earnings Presentation

30 slides from Credito Emiliano's earnings presentation, 2023

  1. Slide 1: Group Results FY22

    yr S= GROUP RESULTS FY22

  2. Slide 2: Agenda

    AGENDA 01 Key Points and Strategic Evolution 02 FY22 Results 03 Q&A 2

  3. Slide 3: FY22: Loans Growth and Asset Quality

    FY22: LOANS GROWTH AND ASSET QUALITY LOANS GROWTH Loans to customers at €34.5 billion, up by 4.0% +4.0% YoY, more than 3 p.p. compared to the Industry, up by 1.1% YoY +1.1% FY22 ASSET QUALITY Gross NPL Ratio Gross NPL Ratio at 2.1%, lower than the EU average (2.3%) and well below the average of the

  4. Slide 4: FY22: Profitability and Capital Soundness

    FY22: PROFITABILITY AND CAPITAL SOUNDNESS PROFITABILITY Net profit up by 23.4% escluding FY21 Badwill for 317 the acquisition of CRCento MLN 11.5% 9.8% Profitability ratios at the highest level in the Industry, ROTE and ROE at 11.5% and 9.8% respectively UTILE NETTO ROTE ROE FY22 CAPITAL SOUNDNESS 1

  5. Slide 5: Return on Equity

    RETURN ON EQUITY • The Group maintained a high profitability, also during the financial crisis, without performing any capital increase and constantly paying dividends, while continuously strengthening its capital position through organic capital generation Return on Equity Italian Banks Credem EU B

  6. Slide 6: Credem Group – Diversified and Complete Business Model

    CREDEM GROUP – DIVERSIFIED AND COMPLETE BUSINESS MODEL Commercial bank Private Banking Credem Banca Credem Euromobiliare Private Banking Extended banking services and Consumer Credit Wealth Management Extended banking services • Credem Factor Asset Management • Credem Leasing • Euromobiliare SGR • M

  7. Slide 7: Credem Group – Business Model – Customers Volumes

    CREDEM GROUP – BUSINESS MODEL – CUSTOMERS VOLUMES Eur/Bn Loans Funding AUM & Insurance AUC Commercial bank 27.4 30.1 18.5 2.9 Extended banking services & Consumer Credit 6.3 Private Banking* 0.9 6.5 20.5 8.6 Other 0.3 0.4 Consolidation adjustments -0.1 -0.5 -0.2 0.0 Total 34.5 36.3 39.2 11.5 *Pro fo

  8. Slide 8: Business Diversification

    BUSINESS DIVERSIFICATION +15.7% YoY 1224.1 1416.4 Core Operating Income 292.8 294.0 302.6 334.7 316.0 332.6 344.2 423.6 €/million 0.7% 1.4% 0.0% 0.3% 0.5% 0.2% 1.1% 0.4% 2.3% 1.0% 1.6% 1.6% 12.1% 12.6% 11.0% 0.9% 38% 41% 43% 47% 35% 35% 36% 52% 52% 58% 56% 52% 53% 56% 51% 47% 1Q21 2Q21 3Q21 4Q21 1Q2

  9. Slide 9: Strong Commitment to Innovation

    STRONG COMMITMENT TO INNOVATION 10 strategic projects for an average of 38 initiatives running in parallel Activities related to Business Activites to strengthen our «platform» 1. Wealth Management 1. Digital Transformation & Customer Interaction 2. Private Banking 2. Cyber security 3. Corporates (L

  10. Slide 10: A Growing Digital Approach

    A GROWING DIGITAL APPROACH 1 INTERNET BANKING RETAIL • >740,000 contracts (+3.7%% vs Dec. ‘21) 3 • +20% of online operations vs Dec. 2021 • Incidence on bank accounts at 73% vs INTERNET BANKING - CORPORATE 70% FY21 • >144,000 active clients (+4.1% vs Dec. ‘21) • Incidence on bank accounts at 71.4% 2

  11. Slide 11: Sustainability: Implementation of New ESG Criteria in Credit Policies

    SUSTAINABILITY Charter on Equal Opportunities Support to the community: the Group Training: kick off of an intense and Equality in the Workplace finance some realities that support skills development plan on was signed people affected by the direct and ESG issues which involved the indirect effects

  12. Slide 12: Agenda

    AGENDA 01 Key Ponts and Strategic Evolution 02 FY22 Results 03 Q&A 12

  13. Slide 13: Reclassified Income Statement

    RECLASSIFIED INCOME STATEMENT €/million 3Q22 4Q22 Q/Q FY21 FY22 YoY • Remarkable Revenue trend (+10.2% vs FY21), thanks to the growth of NII, the consolidation of CRCento and the good performance of the commission Operating Income 351.3 431.3 22.8% 1,336.7 1,472.9 10.2% components, despite the adver

  14. Slide 14: Net Interest Income (1/3)

    NET INTEREST INCOME (1/3) Net Interest Income (€/mln) Euribor and BTP/Bund spread 223 223 192 209 2.5% 2.4% 149 2.3% 2.2% 102 121 1.77%2.1% 2.0% 90 101 1.9% 1.8% 1.7% 1.6% 1.5% 1.4% 165 1.3% 1.2% 1.1% 146 1.0% 0.9% 0.8% 0.7% 0.48% 0.6% 128 135 129 -0.36% 0.5% 0.4% 0.3% 0.2% 0.1% 117 117 -0.54% -0.54

  15. Slide 15: Net Interest Income (2/3)

    NET INTEREST INCOME (2/3) Loans to customers Deposit rate 2.99 2.54 2.25 2.35 0.57 2.21 2.19 2.17 2.14 2.18 1.81 0.48 0.47 0.45 0.47 0.45 0.44 0.44 1.56 1.56 1.53 1.51 1.53 1.57 0.15 0.08 0.04 0.04 0.04 0.04 0.04 0.04 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Cr

  16. Slide 16: Net Interest Income (3/3)

    NET INTEREST INCOME (3/3) Securities portfolio breakdown (€/mln, %) Italian government bond (€/bn) 6.2 6.0 6.0 7,794 10,249 11,627 14,253 14,060 14,824 14,656 14,683 5.8 5.6 5.2 4.5 4.6 Ita Govies FY22 HTC 5.7 HTCS 0.3 40% 40% FVTPL 0.0 45% 44% 42% 41% 41% Total 6.0 58% 1Q21 1H21 9M21 FY21 1Q22 1H22

  17. Slide 17: Non Interest Margin

    NON INTEREST MARGIN Total *(€/mln) 218.3 187.4 182.3 252.4 226.1 189.3 186.5 208.3 Performance Fees 40.7 3.4 39.1 6.8 Income from Financial 6.9 1.5 5.5 3.0 56.7 Activities 56.8 58.9 62.2 49.6 51.1 59.7 59.7 Banking Fees ** 19.1 17.1 13.4 13.1 15.6 21.7 15.7 14.4 Insurance Income 102.9 107.2 117.0 11

  18. Slide 18: Operating Costs and D&A

    OPERATING COSTS AND D&A Operating costs* (€/mln) Employees 195 190 186 212 202 196 187 218 6,608 6,616 6,195 6,201 6,219 6,068 6,140 5,899 5,763 62 67 5,544 5,519 5,604 5,609 57 58 58 59 54 56 138 150 144 138 151 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 131 132 131 Financial

  19. Slide 19: Loans to Customers

    LOANS TO CUSTOMERS Loans to customers (€/bn) Other Loans 9.9 10.0 10.1 10.1 10.2 9.8 8.6 9.0 Residential Mortgage 9.9 Leasing 9.4 9.6 9.7 9.8 8.7 8.9 9.3 Consumer Finance 3.0 3.0 3.1 3.2 2.9 2.9 3.0 2.9 2.1 2.4 2.7 1.7 2.0 2.2 2.5 1.8 7.8 7.2 7.5 8.5 7.9 8.3 8.0 8.8 1Q21 1H21 9M21 2021 1Q22 1H22 9M2

  20. Slide 20: Group Customers Funding: Net Inflows Breakdown

    GROUP CUSTOMERS FUNDING: NET INFLOWS BREAKDOWN 7,062 AUC Direct Deposits AUM + Insurance Total Net Inflows 4,924 4,464 3,435 4,421 3,326 2,389 2,670 2,144 1,939 1,623 1,472 1,400 1,302 939 666 338 331 -164 -577 FY18 FY19 FY20 FY21 FY22 • Total net production was positive and stood at €4.4 billion, s

  21. Slide 21: Deposits, AUM and Insurance

    DEPOSITS, AUM AND INSURANCE Total funding Diretc deposits & retail bonds** €/mln FY21 FY22 +7.2% YoY Sight / Saving Depo. 33,641 35,377 Industry Credem CD and Other Deposits 932 914 +154% Direct Deposits 34,574 36,291 Insurance Reserves 8,665 8,260 -1.2% YoY Portfolio Management 6,729 5,745 Mutual F

  22. Slide 22: Bonds Issuances and Maturities

    BONDS ISSUANCES AND MATURITIES Covered Bond Issuances (€/mln) Maturities (€/mln) 100 + 750 Green Bond SP 600 CB 500 + Green Bond SP 600 600+ SNP 500 + +Social T2* 200 CB 750 Covered 200 Bond Covered Covered Bond 600 500 SNP Bond Tier 2* 200 + 1,250 T2 CRVita 850 107.5 750 Social 750 500 500 Tier 2*

  23. Slide 23: Credit Quality: Gross NPL Ratio

    CREDIT QUALITY: GROSS NPL RATIO 900 2020 Gross Non Performing Loans (€/mln,%) 2021 600 445 398 321 378 378 373 2022 300 Bad Loans Disposal ~41 mn Bad Loans Disposal ~86 mn 53 43 42 0 Gross Bad Loans Gross UTP Loans Gross Past Due Loans % on Loans (Credem) 1.5 1.2 0.9 1.3 1.2 1.1 0.2 0.1 0.1 % on Loa

  24. Slide 24: NPL: Coverage

    NPL: COVERAGE NPL (€/mln) Gross Net Coverage Bad Loans 320.7 77.9 75.7% UTP Loans 372.7 211.7 43.2% Past Due 42.3 34.4 18.7% Total NPL 735.7 324.0 56.0% + Net NPL +324.0 NPL Coverage - (Shortfall + Addendum + Calendar) -37.8 NPL Net of Shortfall 286.2 80.0% 75.7% Coverage incl. Shortfall 61.1% 70.0%

  25. Slide 25: Cost of Risk

    COST OF RISK 59 55 52 42 44 34 38 31 47 45 32 41 24 24 34 39 19 16 15 27 30 21 15 10 Figures in bps 13 11 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Cost of risk Cost of risk (net of non-recurring events) • Cost of risk stood at +15 bps, despite some non- 70 62 59 recurring eff

  26. Slide 26: Assets & Liabilities

    ASSETS & LIABILITIES Assets (€/mln) 34,483 33,299 9M22 2022 8,374 8,027 7,320 6,483 6,199 6,037 5,982 4,074 • Securities portfolio remained broadly stable, while total Loans to customers grew 109 145 Fin. Assets through P&L Fin. Assets HTCS Fin. Assets HTC Fin. Assets (insurance Due from banks Loans

  27. Slide 27: Liquidity Ratios

    LIQUIDITY RATIOS NSFR LCR 232% 146% 223% 141% 137% 205% 2021 1H22 FY22E 2021 1H22 FY22 Loan to Deposit Ratio* 0.92 0.93 0.95 • Both LCR e NSFR ratios were well above minimum capital requirements, enabling the Group to have a greater flexibility in setting future funding strategies • ECB ‘‘eligible’’

  28. Slide 28: Consolidated Capital Ratios

    CONSOLIDATED CAPITAL RATIOS Fully phased data Fully phased data Credem Group Credemholding €, million 2021 FY22 2020 2021 FY22 CET 1 2,868 2,768 2,340 2,591 2,524 Total Capital 3,169 3,172 2,746 2,993 3,063 Capital absorption from: 1,500 1,460 1,337 1,513 1,472 Credit and Counterparty 1,340 1,289 1,

  29. Slide 29: Agenda

    AGENDA 01 Key Ponts and Strategic Evolution 02 FY22 Results 03 Q&A 29

  30. Slide 30: Disclaimer and Contacts

    DISCLAIMER AND CONTACTS The manager responsible for preparing the company’s financial reports Mr. Paolo Tommasini of Credito Emiliano S.p.A., declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corres

Credito Emiliano S.p.A. (Credem) — FY2022 Earnings Presentation on 6ix