Bper Banca S.p.a. · MIL:BPE
Bper Banca — FY2020 Earnings Presentation
31 slides from Bper Banca's earnings presentation, Feb 3, 2021
Slide 1: FY20 consolidated results
FY20 consolidated results Alessandro Vandelli, CEO 3 February 2021
Slide 2: Disclaimer
Disclaimer This document has been prepared by “BPER Banca” solely for No part of the information contained herein may for any purpose information purposes, and only in order to present its strategies be reproduced or published as a whole or in part, nor may such and main financial figures. informati
Slide 3: Important methodological note
Important methodological note July 2019 saw completion of the acquisition of an additional It should be noted that as a result of these transactions, the shareholding in Arca Holding, the acquisition of the minority accounting figures at 31 December 2020 are not comparable interests in Banco di Sard
Slide 4: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES BPER: Gruppo
Slide 5: Executive summary (1/2)
Executive summary (1/2) • • Proposal for a • cash dividend • • • • • • • • •
Slide 6: Executive summary (2/2)
Executive summary (2/2) • • • • • • •
Slide 7: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES BPER: Gruppo
Slide 8: Direct and Indirect funding
Direct and Indirect funding Total Funding (€/mn; %) Chg vs. Chg vs. €/mn Dec 19 Sept 20 Dec 20 Dec.'19 (%) Sept.'20 (%) Direct Funding 58,056 59,780 63,141 +8.8% +5.6% Indirect Deposits 110,623 110,229 114,776 +3.8% +4.1% o.w. Assets under custody 68,909 69,148 72,057 +4.6% +4.2% o.w. Assets under m
Slide 9: Customer loans
Customer loans Customer loans breakdown High risk Chg vs. Chg vs. 2.9% €/mn Dec 19 Sept 20 Dec 20 Dec.'19 (% ) Sept.'20 (% ) Current accounts 4,842 4,081 3,669 -24.2% -10.1% Mid risk Mortgage loans 32,540 34,187 35,355 +8.7% +3.4% 32.6% Other transactions 14,624 14,621 13,982 -4.4% -4.4% Net loans 5
Slide 10: Non Performing Exposures (1/2)
Non Performing Exposures (1/2) Balance sheet structure Chg vs. Chg vs. Gross €/mn Dec 19 Sept 20 Dec 20 Dec.'19 (% ) Sept.'20 (%) 19.9% 13.8% 11.1% 8.8% 7.8% NPE Ratio Bad loans 3,449 2,358 2,076 -39.8% -11.9% Net 9.2% 6.8% 5.8% 4.7% 4.0% NPE Ratio Unlikely to pay 2,479 2,356 2,125 -14.3% -9.8% Past
Slide 11: Non Performing Exposures (2/2)
Non Performing Exposures (2/2) Balance sheet structure 4.2% 11.5% 9.7% 8.3% 8.5% 2.1% 6.9% 1.9% 1.7% 1.0% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 22.8% 6.9% 17.6% 6.3% 16.1% 5.3% 13.2% 13.9% 4.3% 3.7% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Slide 12: Financial assets portfolio
Financial assets portfolio Balance sheet structure €/mn FVTPL FVOCI AC Total % on total 7,531 7,779 Bonds 375 6,022 17,220 23,616 95.8% 1 6,355 o.w. Italian gov 189 432 7,158 7,779 31.5% Equity 146 248 394 1.6% Funds and Sicav 511 511 2.1% Other* 140 140 0.6% Total as of 31.12.2020 1,172 6,270 17,22
Slide 13: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES BPER: Gruppo 13
Slide 14: FY20 reclassified Profit & Loss
Net interest income 1,239 Net commissions CORE INCOME 1,073 2,311 Dividend and Trading 157 gains Other costs / revenues 41 2,468 OPERATING INCOME 2,509 Staff expenses 961 Administrative expenses 499 FY20 reclassified Profit & Loss Depreciation & 871 179 Amortization TOTAL COSTS 871 1,638 NET OPERATI
Slide 15: 4Q20 reclassified Profit & Loss
Var.% q/q Pro-forma1 -2.2% Net interest income -9.3% 295 Pro-forma1 318.2 4.8% Net commissions 13.6% 298 CORE INCOME Pro-forma1 274.6 0.9% 593 Dividend and Trading 44 -8.4% gains 9 Other costs / revenues 636 17.9% OPERATING INCOME 646 0.4% Staff expenses 239 10.5% Administrative expenses 147 22.7% 4
Slide 16: Net Interest Income
Net Interest Income Profit and loss Spread Pro-forma1: 1.86 1.87 1.65% 299.5 299.1 302.9 320.9 292.5 Ordinary NII2 1.89 1.74 315.6 Pro-forma1 1.53 1.65 1.73 1.71 1.57 1.53 Chg q/q 0.30 325.5 0.22 0.17 318.2 -2.2% Pro-forma1 0.00 308.0 310.3 0.03 302.4 295.1 -9.3% -0.30 -0.40 -0.40 -0.49 -0.52 4Q19 1
Slide 17: Net Commissions
Net Commissions Profit and loss Chg q/q Pro-forma1 274.6 4.8% • 297.7 13.6% 275.9 267.6 262.1 0.2% 245.1 51.8 • 57.7 52.2 51.7 45.2 27.9% 119.8 97.5 96.6 93.6 • 91.3 • 120.7 118.8 108.6 116.8 126.1 8.0% • 4Q19 1Q20 2Q20 3Q20 4Q20 Indirect deposits and bancassurance Loans and guarantees Other commiss
Slide 18: Trading income and Dividends
Trading income and Dividends* Profit and loss +15.7% -1.3% 46.8 43.1 42.6 36.8 5.6 4Q19 1Q20 2Q20 3Q20 4Q20 Dividends (€/mn) 0.5 0.8 12.0 4.6 1.1
Slide 19: Operating costs
Operating costs Profit and loss • 429.8 411.1 410.1 379.8 437.4 44.5 50.5 41.0 44.1 43.0 129.3 114.5 116.9 147.4 120.1 • 256.0 255.6 249.1 239.4 216.6 • 4Q19 1Q20 2Q20 3Q20 4Q20 Staff expenses Other administrative expenses D&A • • •
Slide 20: Provisions and other items
Provisions and other items Profit and loss Chg vs Chg vs 4Q19 1Q20 2Q20 3Q20 4Q20 3Q20 4Q19 Total Provisions 140.2 139.6 159.0 107.7 138.1 28.2% -1.5% of which LLPs* 139.4 140.0 153.8 106.5 134.2 26.0% -3.7% Cost of credit** 0.27% 0.27% 0.29% 0.20% 0.25% +5 bps -2 bps Net Provisions for Risks and Ch
Slide 21: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES BPER: 2 Gruppo
Slide 22: Liquidity
Liquidity Liquidity and Capital adequacy ABS, Estense +34.4% Covered Bond, 27,452 28,095 Government bonds ABACO 33.3% 19.5% 19,924 20,911 15,659 Senior Bank bonds 9,877 & State guaranteed 11,432 5,752 bonds 1,069 6.7% 10,363 9,907 10,047 Jumbo bank bonds, Dec 19 Sept 20 Dec 20 Covered & Supranationa
Slide 23: Capital
Capital Liquidity and Capital adequacy Fully Loaded Phased In pro-forma4 +238 bps +957 bps +66 bps -17 bps 17.70% 1 15.90% Minimum 13.03% 13.52% Regulatory 12.01% Requirement 8.125%2 Dec 19 Sept 20 3 Positive Negative Dec 20 Capital increase Dec 20 3 Dec 20 3 CET1 ratio FL pro-forma CET1 ratio FL pr
Slide 24: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES BPER: Gruppo 24
Slide 25: Final remarks
Final remarks • RESILIENT PROFITABILITY • SOLID CAPITAL • & LARGE LIQUIDITY BUFFER • ASSET QUALITY • IMPROVEMENT • CONTINUES • STRATEGIC DEAL • FOR GROWTH IN PROGRESS
Slide 26: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES BPER: 26 Gruppo
Slide 27: Customer loans
Customer loans Annexes % on Total Δ% Business sector Dec 20 Customer vs Dec 19 Loans North Centre Manufacturing Wholesale and retail services, 7,667 14.5% +3.5% 52.7% 16.7% 4,436 8.4% -4.7% recoveries and repairs Construction 2,156 4.1% -10.8% Real Estate 3,119 5.9% -0.7% HORECA* 1,491 2.8% +12.9% S
Slide 28: Asset quality
Asset quality Annexes Gross exposures (€/mn) Dec 19 Mar 20 Jun 20 Sept 20 Dec 20 Chg Y/Y % % % % % Abs. Chg (%) Non Performing Exposures (NPEs) 6,123 11.1% 6,056 11.1% 5,008 9.1% 4,896 8.8% 4,343 7.8% -1,780 -29.1% Bad loans 3,449 6.2% 3,434 6.3% 2,374 4.3% 2,358 4.3% 2,076 3.7% -1,373 -39.8% Unlike
Slide 29: Financial Assets details
Financial Assets details Annexes Other Germany 6.6% 3.5% Other USA 24.2% 5.7% Spain 13.7% USA Italy 5.0% 42.8% Germany Italy 6.8% 70.4% Spain 8.0% France 13.2% 4.8 15.4 1.1 2.7 1.8 2.2 0.4 0.5 0.5 1.4 2020 2021 2022 2023 >2023 2021 2022 2023 2024 >2024
Slide 30: Bonds maturities and issues details
Bonds maturities and issues details Annexes 1.2 Dec 19 Sept 20 Dec 20 Wholesale bonds 3.2 3.1 3.5 0.7 o/w covered bonds 2.6 1.9 1.9 0.1 0.5 0.5 1.2 o/w subordinated bonds 0.5 0.5 0.9 Retail bonds 2.0 1.3 1.0 0.6 0.5 0.5 o/w subordinated bonds 0.4 0.4 0.1 Total bonds 5.2 4.4 4.5 2017 2018 2019 2020 T
Slide 31: Contacts for Investors and Financial Analysts
Contacts for Investors and Financial Analysts Investor Relations Dpt. Via San Carlo, 8/20 - 41121 Modena - Italy Investor.relations@bper.it Giulia Bruni Nicola Sponghi Investor Relations Investor Relations Via San Carlo, 8/20 - 41121 Modena - Italy Via San Carlo, 8/20 - 41121 Modena - Italy +39 059