Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca — H1 FY2015 Earnings Presentation
48 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, Feb 9, 2015
Slide 1: 1H results as at December 2014
1H results as at December 2014 Milan, 9 February 2015
Slide 2: Agenda
Agenda Section 1. 1H14 Group results Section 2. Segmental reporting Section 3. Closing remarks Annexes 1. Principal investing: main equity investments as at Dec14 2. Investment banking: major deals by product Note: numbers may not add up due to rounding 2
Slide 3: Growth resumed by strong banking results. ROE up to 7%
Growth resumed by strong banking results. ROE up to 7% 1H results as at December 2014 MB Group GOP up 58% YoY to €321m, driven by higher revenues (up 16% to €1,014m) Banking profitability Group net profit at €261m (without gains from equity disposals) enhanced Group ROE up to 7% Loans resume
Slide 4: Loans up 4%, funding and treasury optimization achieved
Loans up 4%, funding and treasury optimization achieved 1H results as at December 2014 MB Group D D €bn Dec14 June14 Dec13 HoH* YoY* Funding 43.0 45.8 53.3 -6% -19% Bonds 20.2 22.6 26.8 -10% -25% Retail direct deposits 10.9 11.5 13.3 -5% -18% ECB 5.1 5.5 7.0 -8% -27% Others 6.8 6.2 6.1 +9% +11% Loan
Slide 5: Loan book up 4% driven by RCB and, finally, CIB
Loan book up 4% driven by RCB and, finally, CIB 1H results as at December 2014 MB Group New loans trend (€bn) Loan book trend (€bn) 33.5 -4% 32.3 -5% +4% 31.8 30.6 2H12 1,2 2,5 3.8 3,5 3,2 2,9 3,0 16,3 -7% 15,2 -12% 13,3 +6% 14,0 2H13 2,1 2,7 5.0 13,7 +1% 13,9 +3% 14,3 +4% 14,9 2H14 3,2 3,2 6.7 +34%
Slide 6: Treasury and funding optimization completed
Treasury and funding optimization completed 1H results as at December 2014 MB Group Treasury & AFS portfolio (€bn) Funding evolution (€bn) -9.8bn -10.3bn 25.2 53.3 2,5 43.0 7,0 €4bn of expiring LTROs to be 6,0 15.4 replaced in March 15 by TLTROs 5,1 2,2 3,4 26,8 Spread of new bond issued down 6,7 5,
Slide 7: Banking results materially enhanced, ROE up to 7%
Banking results materially enhanced, ROE up to 7% 1H results as at December 2014 MB Group 2H 1H 2H D D €m Dec14 June14 Dec13 HoH* YoY* Total income 1,014 944 875 7% 16% Net interest income 548 552 535 -1% 2% Fee income 260 232 192 12% 36% Net treasury income 83 28 17 Equity accounted co. 123 132 131
Slide 8: Growing NII driven by consumer and...
Growing NII driven by consumer and... 1H results as at December 2014 MB Group Total revenues (€m) Net interest income (€m) +20% +2% 1,014 552 548 535 875 130 79 140 133 122 133 312 264 +18% Banking +4% +2% Banking business business 891 377 393 400 744 462 488 +6% 2H13 2H14 2H13 1H14 2H14 RCB CIB ex
Slide 9: ...growing fees driven by CapMkt and consumer as well
...growing fees driven by CapMkt and consumer as well 1H results as at December 2014 MB Group Group fee income trend (€m) CIB fees breakdown and trend (€m) +36% +54% 260 191 232 179 88 39 192 +11% 39 -7% 79 124 85 39 87 83 179 +7% 191 +44% 32 19 124 14 22 39 35 46 2H13 1H14 2H14 2H13 1H14 2H14 CIB R
Slide 10: Cost of risk at 193 bps, normalized at 167 bps
Cost of risk at 193 bps, normalized at 167 bps 1H results as at December 2014 MB Group LLPs by segment (€m) Cost of risk by segment (bps) 461 457 736 360 +45% 379 507 230 445 193 156 145 301 167 335 50 in bonis 69 72 231 233 200 40 in bonis 122 one-off 49 12m June13 12m June14 6m Dec14 FY13 FY14 IH1
Slide 11: Asset quality: coverage ratios up, aligned with AQR requirement
Asset quality: coverage ratios up, aligned with AQR requirement 1H results as at December 2014 MB Group NPLs details (“deteriorate”) Bad loans details (“sofferenze”) Group and segmental figures Dec13 June 14 Dec14 Group and segmental figures Dec13 June 14 Dec14 Net NPLs (€m) 1,013 1,158 1,220 Net ba
Slide 12: Comfortable capital, leverage, funding and liquidity position
Comfortable capital, leverage, funding and liquidity position 1H results as at December 2014 MB Group CET1 ratio: phase-in/fully phased Leverage ratio: phase-in/fully phased 12,5% 12,6% 12,7% 11,6% 11,1% 11,0% 11,0% 11,1% 10,2% 9,5% 9,8% 8,5% June14 Sept14 Dec14 June14 Sept14 Dec14 Phase-in Fully ph
Slide 13: Profitability ratios materially improved
Profitability ratios materially improved 1H results as at December 2014 MB Group 6m Dec14 12m 6m Dec13 €m ROE / ROAC* Annualized June14 Annualized GROUP ROE stated 6.6% 6.4% 8.6% ROE adj. 7.5% 5.7% 4.7% PI ROAC adj. 28.5% 24.4% n.m. CIB ROAC adj. 8.9% 6.2% 2.6% RCB ROAC adj. 10.1% 5.0% 7.4% ow Consu
Slide 14: Agenda
Agenda Section 1. 1H14 Group results Section 2. Segmental reporting Section 3. Closing remarks Annexes 1. Principal investing: main equity investments as at Dec14 2. Investment banking: major deals by product 14
Slide 15: CIB. Resuming growth, ROAC up to 9%
CIB. Resuming growth, ROAC up to 9% 1H results as at December 2014 Segmental reporting: CIB In last 12m IB fee pool in Southern EU up 30%; MB fee pool up 58% Signals of recovery in Good momentum in CapMkts, both domestic and non-domestic Southern EU market M&A and Lending activities bottoming
Slide 16: IB fee pool: up 30% in Southern EU in last 12m, MB up 58%
IB fee pool: up 30% in Southern EU in last 12m, MB up 58% 1H results as at December 2014 Segmental reporting: CIB Global IB fee pool (12m Dec14) MB fee pool (12m Dec14) $bn IB Fees YoY Total IB fees: MB fees: $90bn, up 7% YoY UK &Ireland 6.3 +12% €292m, up 58% YoY France & Benelux 6.0 +16% Germany 4
Slide 17: Where are we in the IB cycle?
Where are we in the IB cycle? 1H results as at December 2014 Segmental reporting: CIB MB: total IB fees by product (€m) MB: CapMkt fees by geography (€m) 200 300 150 200 100 100 50 0 0 J-05 J-06 J-07 J-08 J-09 J-10 J-11 J-12 J-13 J-14 D-14 J-05 J-06 J-07 J-08 J-09 J-10 J-11 J-12 J-13 J-14 D-14 M&A L
Slide 18: WB revenues up 57%, well split among geographies and businesses
WB revenues up 57%, well split among geographies and businesses 1H results as at December 2014 Segmental reporting: CIB Total WB revenues by WB: K-light revenues trend New corporate loans avg. geography (€m) (€m) ticket1 (€m) +57% 325 100 90 +55% 80 +2x 171 170 70 207 60 78 110 82 50 31 40 14 19 30
Slide 19: CIB: growth resumed in loan and revenues. ROAC 9%
CIB: growth resumed in loan and revenues. ROAC 9% 1H results as at December 2014 Segmental reporting: CIB €m 2H14 1H14 2H13 D YoY* 4Q14 3Q14 2Q14 1Q14 Total income 392 327 272 +44% 172 219 212 116 Net interest income 122 133 140 -13% 65 57 68 65 Fee income 191 179 124 +54% 78 112 122 57 Net treasury
Slide 20: PI: more disposals to come in the second half
PI: more disposals to come in the second half 1H results as at December 2014 Segmental reporting: Principal investing €m 2H14 1H14 2H13 D HoH* D YoY* Total income 130 156 133 -16% -2% Gains from disposals 15 89 151 Impairments (12) (4) (22) Net result 127 204 245 -38% -48% Book value (€bn) 4.0 4.0 3
Slide 21: Consumer lending: ROAC up to 14%
Consumer lending: ROAC up to 14% 1H results as at December 2014 Segmental reporting: Consumer lending Compass steadily growing in a rebounding market Managing the Leading player in Italy with a 12.3% market share leadership New loans up 17% to €2.9bn, driven by bank channel Steady growth Loa
Slide 22: Compass: secure leader in a rebounding market
Compass: secure leader in a rebounding market 1H results as at December 2014 Segmental reporting: Consumer lending New loans YoY trend*, Compass market share Top 5 Italian players (12m14 Assofin) 40,0% 15,0% 12,3% 13,0% 11.4% New 30,0% Mkt 9.8% 10.0% 11,0% Company loans Y.o.Y share (€bn) 8.3% 9,0% 2
Slide 23: Production up 17% at interesting marginality
Production up 17% at interesting marginality 1H results as at December 2014 Segmental reporting: Consumer lending Compass new loans by product (€bn) Consumer: loan stock and net margins¹(€bn, bps) +17% 270 230 Net margins adj 250 Net margins 2.9 2.8 199 2.5 130 10,5 9,9 9,6 2H13 1H14 2H14 2H13 1H14
Slide 24: Compass: lower inflows and stock of problematic loans
Compass: lower inflows and stock of problematic loans 1H results as at December 2014 Segmental reporting: Consumer lending Loans with 30 days arrears for the first time Consumer NPLs ratio and coverage trend (3 months moving average and year average) Consumer Dec13 June 14 Dec14 NPLs (€m) 399 342 31
Slide 25: Consumer lending: solid growth, ROAC up to 14%
Consumer lending: solid growth, ROAC up to 14% 1H results as at December 2014 Segmental reporting: Consumer lending €m 2H14 1H14 2H13 D YoY* 4Q14 3Q14 2Q14 1Q14 Total income 412 391 379 +9% 209 203 195 196 Net interest income 334 323 306 +9% 169 165 163 159 Fee income 78 68 73 +8% 40 38 32 36 Total
Slide 26: Retail banking: CheBanca! from a deposit to a wealth-gatherer
Retail banking: CheBanca! from a deposit to a wealth-gatherer 1H results as at December 2014 Segmental reporting: Retail banking CheBanca! deposits stable at €13.0bn, of which: Conversion of direct Direct €10.9bn (down 6%) into indirect better Indirect €2.1bn (2X in 12m) than expected Good s
Slide 27: CheBanca!: less depository, more transactional
CheBanca!: less depository, more transactional 1H results as at December 2014 Segmental reporting: Retail banking CheBanca! deposits breakdown (€bn) Products growth +12% 14.3 +65% 1,0 13.0 13.0 0,7 2X 1,5 2,1 1,4 0,9 1,5 1,6 11.2 1,6 9.0 7.8 Dec13 June14 Dec14 Products Current accounts Securities an
Slide 28: Indirect deposits doubled in 12m with...
Indirect deposits doubled in 12m with... 1H results as at December 2014 Segmental reporting: Retail banking Indirect deposits breakdown (€m) Mutual funds and insurance products new money: main Italian players (€m) 2X 4.183 Mutual funds (12m) 2.1 3.186 2.447 0,5 1.5 700 555 (1.064) 0,4 0,6 Mediolanum
Slide 29: … an increasing capability to maintain total customer assets
… an increasing capability to maintain total customer assets 1H results as at December 2014 Segmental reporting: Retail banking Conversion from deposits to investments: 12 ….and last 6 months months activity (€bn) …. 13.3 10.9 11.5 (0.6) 10.9 (2.4) Deposits 12,6 Current acc. 10,6 9,4 9,4 0,7 1,5 0,9
Slide 30: CheBanca!: focusing on not-yield driven products
CheBanca!: focusing on not-yield driven products 1H results as at December 2014 Segmental reporting: Retail banking €m 2H14 1H14 2H13 D YoY* 4Q14 3Q14 2Q14 1Q14 Total income 76 82 83 -8% 39 37 41 41 Net interest income 67 71 70 -6% 33 33 35 36 Fee income 9 11 12 -21% 5 4 5 6 Net treasury income 0 0
Slide 31: Agenda
Agenda Section 1. 1H14 Group results Section 2. Segmental reporting Section 3. Closing remarks Annexes 1. Principal investing: main equity investments as at Dec14 2. Investment banking: major deals by product 31
Slide 32: Closing remarks
Closing remarks 1H results as at December 2014 Closing remarks Banking profitability enhanced: Group ROE up to 7% First 6m achievements Growth resumed in CIB (loans and revenues): ROAC up to 9% RCB, continuously improving (ROAC at 10%), with Compass confirmed as group NII-engine: ROAC at 14%
Slide 33: 1H results as at December 2014
1H results as at December 2014 Milan, 9 February 2015
Slide 34: Annexes
Annexes 1. Principal investing: main equity investments as at Dec14 2. Investment banking: major deals by product 34
Slide 35: Principal Investing: main equity investments
Principal Investing: main equity investments PI: main equity investments Section 1 December 2014 % share of capital Book value €m AFS reserve Assicurazioni Generali 13.24% 2,969 n.s.1 Pirelli &C. 4.13% 220 46 RCS Mediagroup 6.2% 30 - Italmobiliare 9.5% 40 5 Others 35 3 Total listed companies 3,294 5
Slide 36: Annexes
Annexes 1. Principal investing: main equity investments as at Dec14 2. Investment banking: major deals by product 36
Slide 37: Major M&A deals
Major M&A deals IB: major deals by product Section 2 37
Slide 38: Major M&A deals
Major M&A deals IB: major deals by product Section 2 38
Slide 39: Major equity deals
Major equity deals IB: major deals by product Section 2 39
Slide 40: Major equity deals
Major equity deals IB: major deals by product Section 2 40
Slide 41: Major DCM deals
Major DCM deals IB: major deals by product Section 2 41
Slide 42: Major DCM deals
Major DCM deals IB: major deals by product Section 2 42
Slide 43: Major corporate lending and structured finance deals
Major corporate lending and structured finance deals IB: major deals by product Section 2 43
Slide 44: Major corporate lending and structured finance deals
Major corporate lending and structured finance deals IB: major deals by product Section 2 44
Slide 45: Major corporate lending and structured finance deals
Major corporate lending and structured finance deals IB: major deals by product Section 2 45
Slide 46: Major corporate lending and structured finance deals
Major corporate lending and structured finance deals IB: major deals by product Section 2 46
Slide 47: 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 48: 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 48