Bper Banca S.p.a. · MIL:BPE
Bper Banca — FY2024 Earnings Presentation
34 slides from Bper Banca's earnings presentation, Feb 7, 2025
Slide 1: FY24 Results Presentation
FY24 Results Presentation MILAN | FEBRUARY 7TH | 2025
Slide 2: Disclaimer
Disclaimer This document has been prepared by “BPER Banca” solely for information purposes, and only in order to present its strategies and main financial figures. The information contained in this document has not been audited. No guarantee, express or implied, can be given as to the document’s con
Slide 3: Agenda
Agenda Executive summary B:Dynamic | Full Value 2027 Group results Final remarks Annexes 3
Slide 4: Solid Revenues growth and sound profitability in FY24
Solid Revenues growth and sound profitability in FY24 Key Financial Highlights Delivered higher results in FY24 with Net Profit(1) up by 4.1% FY/FY Total Revenues Net Profit(1) €5.6 bn €1.4 bn +1.8% FY/FY +4.1% FY/FY Core Revenues up by 4.1% FY/FY and operational efficiency stable with Cost/Income(2
Slide 5: Net Profit in FY24 mainly driven by Core Revenues and lower Cost of Risk
Net Profit in FY24 mainly driven by Core Revenues and lower Cost of Risk P&L Key Figures (€m) Net Profit stated vs adjusted (€m) 413.9 388.5 412.9 382.5 FY24 FY/FY 4Q24 Q/Q Y/Y 290.7 309.3 296.3 264.1 Total Revenues 5,574.6 +1.8% 1,445.6 +5.4% -1.2% Core Revenues 457.3 o/w NII 3,376.9 +3.9% 853.7 +1
Slide 6: Strong achievements in FY24 exceeding Guidance 2024
Strong achievements in FY24 exceeding Guidance 2024 Achievements over FY23 FY24 Guidance 2024 Total Revenues €5.5 bn €5.6 bn o.w. Net Inter. Income €3.3 bn €3.4 bn o.w. Net Comm. Income €2.0 bn €2.1 bn Op. Costs (excl. D&As)(1) €2.5 bn €2.5 bn Cost/Income(1) 50.1% 50.3%(2) Cost of Risk 48 bps 36 bps
Slide 7: Agenda
Agenda Executive summary B:Dynamic | Full Value 2027 Group results Final remarks Annexes 7
Slide 8: B:Dynamic | Full Value 2027 well on track
B:Dynamic | Full Value 2027 well on track KEY HIGHLIGHTS Pillar 1 Pillar 1 Pillar 2 Pillar 3 ▪ Strong performance in Bancassurance, with fees up Unleash our Capture our Leverage our ~80% by 29.6% FY/FY ▪ Sound growth in “Wealth Management” fees up clients’ full- latent economies strong balance Busin
Slide 9: Agenda
Agenda Executive summary B.Dynamic | Full Value 2027 Group results Final remarks Annexes 9
Slide 10: Remarkable performance in Core Revenues in FY24
Remarkable performance in Core Revenues in FY24 Total Revenues (quarterly) (€m) KEY HIGHLIGHTS 9.3% 9.2% 9.5% 9.6% 9.6% 9.5% 1,800.0 8.6% 8.8% 9.0% Core Revenues 1,600.0 1,462.9 1,396.9 1,445.6 Total Revenues 1,364.6 1,361.2 1,371.0 1,400.0 1,320.1 1,329.1 75.4 42.0 36.2 8.0% ▪ In FY24, Core Revenue
Slide 11: NII positive performance mainly driven by commercial spreads and improved funding mix in FY24
NII positive performance mainly driven by commercial spreads and improved funding mix in FY24 NII (quarterly) (€m) KEY HIGHLIGHTS -1.9% Y/Y NII Net Interest Income 870.3 843.6 840.8 853.7 819.0 836.5 838.9 ▪ In FY24, strong NII at €3.4 bn (+3.9% FY/FY) (€m) mainly driven by commercial spread increas
Slide 12: FY24 Net Commissions up by 4.5% FY/FY
FY24 Net Commissions up by 4.5% FY/FY Net Commission Income(1) (quarterly) (€m) KEY HIGHLIGHTS +7.5% Y/Y Net Commission Income Net Commission Income ▪ In FY24, Commission Income up at €2.1 bn 555.8 (€m) 496.2 517.2 498.7 516.0 (+4.5% FY/FY) mainly driven by AuM and 479.6 476.3 487.9 31.1 22.7 Bancas
Slide 13: Continued positive performance in TFAs thanks to well diversified products mix
Continued positive performance in TFAs thanks to well diversified products mix and market effects TFA (€bn) KEY HIGHLIGHTS +5.5% Y/Y Deposits 298.1 298.7 303.5 306.3 ▪ Deposits up to €118.1 bn (+€1.5 bn Q/Q) thanks 282.1 281.1 284.2 290.3 21.4 21.2 21.1 21.0 to positive commercial dynamics 23.8 23.4
Slide 14: Cost/Income at 50.3% almost flat FY/FY
Cost/Income at 50.3% almost flat FY/FY Cost/Income(2) & Total Costs (quarterly) (€m) KEY HIGHLIGHTS Total Costs +2.7% Y/Y (€m) Total Costs ▪ In FY24, Total Costs at €2.8 bn with a +3.6% 53.0% Cost/Income Ratio at 50.3%(2) almost flat FY/FY 52.7% 2,840.7 50.4% 50.7% 50.6% 50.6% 2,741.7 47.3% ▪ In 4Q2
Slide 15: CoR at 36bps in FY24. NPE Coverage Ratio stable at 54.3%
CoR at 36bps in FY24. NPE Coverage Ratio stable at 54.3% LLPs (€m) and CoR(1) (quarterly) (bps) KEY HIGHLIGHTS LLPs (€m) 160.0 63 -5 bps Y/Y 70 58 Cost of Risk (CoR) -23.1% 140.0 60 ▪ In FY24, CoR strongly down to 36bps. In 4Q24, 433.3 43 50 CoR at 28bps (-7bps Q/Q and -5bps Y/Y) driven 120.0 38 39
Slide 16: NPEs Ratios significantly lower Q/Q at the end of December
NPEs Ratios significantly lower Q/Q at the end of December Gross NPE stock (€bn) KEY HIGHLIGHTS Flat Y/Y 3.0 Gross NPE Stock 0.2 2.5 2.5 2.5 2.5 ▪ Gross NPEs at €2.2 bn down by €0.3 bn Q/Q 2.3 driven by asset disposals and proactive 1.0 0.2 0.2 2.2 0.2 0.1 2.2 0.2 0.1 collection activities 0.2 0.7 0
Slide 17: Slight increase in RWA by €1 bn mainly driven by annual update of operational risk
Slight increase in RWA by €1 bn mainly driven by the annual update of operational risk RWAs(1) (€bn) KEY HIGHLIGHTS 53.5 53.1 53.5 53.4 53.4 53.2 54.2 52.0 1.2 RWAs 1.0 0.8 0.9 2.3 1.1 1.0 0.9 6.0 6.0 7.0 7.0 7.0 8.1 ▪ In 4Q24, total RWAs up by €1.0 bn Q/Q at €54.2 6.0 7.0 bn following the annual up
Slide 18: CET1 Ratio at 15.8% with Organic Capital Generation of €1.7 bn in FY24
CET1 Ratio at 15.8% with Organic Capital Generation of €1.7 bn in FY24 Capital evolution KEY HIGHLIGHTS 15.8% 15.8% Organic Capital Generation (OCG)(1) 15.3% 14.9% 14.9% ▪ OCG of €1.7 bn in FY24 with an impact on CET1 14.5% 14.0% Ratio of +319bps, reinforcing capital strength 13.3% ▪ In 4Q24, OCG eq
Slide 19: Robust balance sheet with a sound liquidity profile
Robust balance sheet with a sound liquidity profile Balance sheet (€bn) KEY HIGHLIGHTS Other Assets 11.2 Balance sheet: €140.6 bn LCR and NSFR 21.9 ▪ LCR reached 167% at the end of December 2024 Financial Assets at amortised 7.9 Cost vs 161% at end of December 2023 mainly 7.9 Loans Breakdown thanks
Slide 20: Well diversified bond portfolio
Well diversified bond portfolio Italian Government Bond (€bn) KEY HIGHLIGHTS +26.2% Y/Y Italian Govies 10.3 10.2 11.3 ▪ Italian Govies stand at €11.3 bn at the end of 10.0 10.0 9.0 8.7 8.9 December 2024, up by 13.0% Q/Q and by 26.2% Y/Y ▪ This portfolio is 41.9% of the Total Bonds outstanding 1Q23 2
Slide 21: Bond Issuances & Maturities
Bond Issuances & Maturities Bond Issued(1) (€bn) Bond Maturities(1) (€bn) KEY HIGHLIGHTS 6.7 Bond issued ▪ Main Issuance in FY24: 2.6 • In February, the first Senior Preferred Bond qualifying as “Green” for €0.5 bn 3.2 0.5 2.3 • In March, a 7-year maturity Covered Bond 1.7 for €0.5 bn 1.5 1.6 4.1 2.
Slide 22: Agenda
Agenda Executive summary B:Dynamic | Full Value 2027 Group results Final remarks Annexes 22
Slide 23: New Divisional Database available with FY24 Results
New Divisional Database available with FY24 Results Retail Private & Wealth Manag. Corporate Core Revenues €m 3,472 555 1,034 o.w. Net Inter. Income €m 2,195 91 644 o.w. Net Comm. Income €m 1,277 464 389 Total Wealth Income(1) €m 841 Gross Performing Loans €bn 50.9 0.7 34.6 Direct Deposits €bn 77.3
Slide 24: Final Remarks
Final Remarks 2024 Guidance successfully achieved, on track to deliver B:Dynamic | Full Value 2027 Growth supported by Core Revenues and sound Cost of Risk Asset quality amongst the best in Italy Robust capital supported by strong Organic Generation of 319bps (+€1.7 bn) Proposed FY24 dividend at Eur
Slide 25: Agenda
Agenda Executive summary B:Dynamic | Full Value 2027 Group results Final remarks Annexes 25
Slide 26: Group P&L
Group P&L FY24 FY23 4Q24 P&L - (€m) Delta FY/FY Delta FY/FY % Delta Q/Q % Delta Y/Y % Stated Stated Stated Net interest income 3,376.9 3,251.8 125.1 3.9% 853.7 1.5% -1.9% Net commission income 2,058.4 1,969.3 89.1 4.5% 555.8 13.9% 7.5% Core Income 5,435.3 5,221.1 214.2 4.1% 1,409.4 6.1% 1.6% Dividen
Slide 27: 2023 and 2024 Non-recurring P&L items
2023 and 2024 Non-recurring P&L items Gain/(Loss) on Non-recurring items Operat. Costs investments Tax effects Net Profit Costs related to HR actions +€294.5 m -€82.6 m +€211.8 m 2023 4Q DTAs on tax losses -€380.0 m -€380.0 m Capital gain on disposal of the 1Q -€150.1 m +€2.1 m -€148.0 m NPE servici
Slide 28: Group Reclassified Balance Sheet
Group Reclassified Balance Sheet ASSETS (€bn) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Chg Q/Q Chg Y/Y Customer Loans 89.4 89.1 86.7 88.2 87.7 89.0 88.9 90.1 +1.4% +2.2% Securities Portfolio 30.7 30.5 30.0 28.6 26.5 26.5 27.7 29.0 +4.7% +1.5% Interbank Assets (1) 18.5 10.3 13.4 11.7 12.6 10.1 10.4 9.
Slide 29: Asset Quality Breakdown
Asset Quality Breakdown Gross exposures (€m) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Chg Q/Q Chg Y/Y comp. % comp. % comp. % comp. % comp. % comp. % comp. % comp. % Abs. Chg (%) Abs. Chg (%) Non Performing Exposures (NPEs) 3,022 3.3% 2,504 2.7% 2,530 2.8% 2,197 2.4% 2,336 2.6% 2,513 2.8% 2,525 2.8%
Slide 30: Net Customer Loans: Loan Portfolio Composition
Net Customer Loans: Loan Portfolio Composition Net Customer Loans Breakdown by Sector (€bn; %) Net Customer Loans Breakdown by Geographical Areas(1) (%) % on Total Δ% Lombardy Business sector FY24 Customer North vs FY23 23.9% Loans 59.0% Manufacturing 12.7 14.1% -2.7% Wholesale and retail services,
Slide 31: Financial Assets: Highlights
Financial Assets: Highlights Bonds PTF Geographical Breakdown (%) Govies Geographical Breakdown (%) Other Germany 6.8% Other 4.4% 23.1% USA 5.7% Spain USA 6.8% 4.6% Italy Spain 48.5% 4.9% Italy Germany 76.3% 6.9% France 12.0% Bonds PTF Maturities (1) (€bn) Italian Govies Maturities (1) (€bn) 18.1 8.
Slide 32: Commercial dynamics: loans and deposits evolution
Commercial dynamics: loans and deposits evolution Commercial loans by geography (€bn) Commercial deposits by geography (€bn) 89.4 89.1 86.7 88.2 87.7 89.0 88.9 90.1 105.0 103.4 107.7 104.9 103.8 104.4 102.7 104.3 10.0% 10.0% 10.1% 10.5% 10.1% 10.1% 10.3% 10.5% 13.1% 13.2% 13.3% 13.5% 13.1% 13.4% 13.
Slide 33: ESG focus ensured Ratings improvement in the last quarter
ESG focus ensured Ratings improvement in the last quarter Environmental Social Governance ▪ 100% use of electricity from renewable • Implementation of the BPER’s “Bene • Included by S&P Global in the sources Comune” Service supporting Third Sector “Sustainability Yearbook 2024” ▪ -23% of internal em
Slide 34: Contacts for Investors and Financial Analysts
Dummy figures Contacts for Investors and Financial Analysts Nicola Sponghi Chiara Leonelli Head of Investor Relations Investor Relations nicola.sponghi@bper.it chiara.leonelli@bper.it Maria Accarrino Ilaria Picelli Investor Relations Investor Relations maria.accarrino@bper.it ilaria.picelli@bper.it