Banca Ifis S.p.a. · MIL:IF
Banca Ifis — Q1 2009 Earnings Presentation
32 slides from Banca Ifis's earnings presentation, May 2009
Slide 1: 1st Q. 2009 Results
st 1 Q. 2009 Chief Executive Officer Giovanni Bossi
Slide 2: Highlights; Strategies and Business Plan; Financial data
Highlights Strategies and Business Plan Consolidated financial and economic data Attachments
Slide 3: The Credit Crunch: impact on Banca IFIS's activity
The “Credit Crunch”: impact on Banca IFIS’s activity The consequences for SMEs … the impact on Banca IFIS are … Significant increase in the Increase in credit risk and credit risk connected to all therefore higher costs for BANCA IFIS’s counterparties provisioning BUSINESS MODEL Widening of sp
Slide 4: The Credit Crunch: impact on Banca IFIS's liquidity
The “Credit Crunch”: impact on Banca IFIS’s liquidity Particular characteristics of Banca IFIS ¼ Total absence of securities portfolio: no derivatives, no mortgages, no long terms, no toxic assets ¼ Corresponding banks view Banca IFIS as an operator with short-term loan commitments (average durati
Slide 5: Business model and growth opportunities
Business model and growth opportunities A business model that guarantees high … with high growth opportunities performance for a bank … based on Focused on enterprises Strong request for services from enterprises Excellent credit quality Low competition levels Short term lending Excellen
Slide 6: High profitability and limited credit risk
High profitability and limited credit risk Net profit Non performing loans/Total loans % Millions of Euro 39% + 08= 0-20 0 20 GR CA Note: since 2002, when the company became a bank, it has adopted stricter credit policies 6
Slide 7: Strategies and Business Plan
Highlights Strategies and Business Plan Consolidated financial and economic data Attachments
Slide 8: The 2009 – 2011 Business Plan
The 2009 – 2011 Business Plan The guidelines for the execution of the 2008 – 2010 Business Plan have been confirmed: Evolution of the bank’s model from being a bank specialised in factoring to being a relationship-based bank satisfying the financing and service needs of SMEs Growth in core busin
Slide 9: The guidelines
The guidelines “From a specialized bank to a relationship-based bank for SMEs” capitalising on market trends 1. Internal growth in core business 2. Internationalisation of core business 3. Extending the range of products offered 4. Expansion in funding sources 9
Slide 10: The new model
The new model From specialised bank to a relationship-based bank Perceived as a factoring Perceived as the answer to specialist for SMEs SMEs every financing and service need Relationships with the client Relationship with the client is are necessary to conclude the most important element: f
Slide 11: 1. Internal growth of core business
1. Internal growth of core business Reach potential clients through the reinforcement of the bank’s own network New branches and territorial offices: number of offices expected to grow from 23 (14 branches and 9 territorial offices) in May 2009 to 32 at the end of 2010 In-house recruitment and
Slide 12: 2. Internationalisation of core business
2. Internationalisation of core business Lines of development: next steps Continue to work only with counterparties of high standing without any foreign exchange risk Due to worsening in the international economic situation, the opening of a factor in Romania has been postponed until 2010 Deve
Slide 13: 3. Extending the range of products offered
3. Extending the range of products offered Products/services for the new policy of cross-selling and customer retention: Distribution of leasing successfully launched (distribution of Centro Leasing Banca’s leasing product throughout Italy) Kick off of the distribution of insurance products for
Slide 14: 4. Expansion in funding sources
4. Expansion in funding sources Banca IFIS’s financial need is very short-term: Average duration of loans to clients has risen to 130 days both due to the increase in average delays in payment at the due date by debtors and due to the development of the Maturity product (with payment extensions) r
Slide 15: Rendimax: Banca IFIS's on line savings account
Rendimax: Banca IFIS’s on line savings account mantenimento della clientela attuale Stability of funding and consolidation of clientele: Offerte promozionali dedicate alla clientela esistente The best return on the market for the account holders, aside from promotional offers Introduction of a f
Slide 16: Targets for 2011
Targets for 2011 2008 2011 Targets Turnover Turnover 3.2 billion Euro 5 billion Euro Net banking Net banking income/turnover income/turnover 2.11% higher than 2% Cost/Income ratio Cost/Income ratio 43% less than 35% Net profit Net profit 22.8 million Euro +80% /+100% Core tier 1 higher than Core Tie
Slide 17: Consolidated financial and economic data
Highlights Strategies and Business Plan Consolidated financial and economic data Attachments
Slide 18: Consolidated income statement 1st Q. 2009
Consolidated income statement 1st Q. 2009 Consolidated income statement 1st QUARTER VARIATION € thousands 2009 2008 ABSOLUTE % Net banking income 17,331 14,938 2,393 16.0% Net impairment losses on loans and receivables (2,181) (1,263) (918) 72.7% Net profit from financial activities 15,150 13,675 1,
Slide 19: Financial figures: Analysis by Quarter
Financial figures: Analysis by Quarter Profitability: Quarterly evolution 2009 2008 2007 € thousands 1st Q. 4th Q. 3rd Q. 2nd Q. 1st Q. 4th Q. 3rd Q. 2nd Q. 1st Q. Net banking income 17,331 17,416 17,895 17,375 14,938 15,836 15,008 12,407 10,467 Profit from sale or buybacks on: - - - (2) - - 1,515 1
Slide 20: Consolidated balance sheet 2005 – 2008
Consolidated balance sheet 2005 – 2008 Consolidated balance sheet PERIOD € millions 31/12/08 31/12/07 31/12/06 31/12/05 Due from banks 188.1 312.1 267.3 128.8 Due from clients 1,008.6 923.1 783.0 710.9 Fixed assets 37.7 34.7 31.0 24.3 Other assets items 106.1 5.5 11.3 12.7 Total Assets 1,340.5 1,275
Slide 21: Consolidated financial figures: Funding
Consolidated financial figures: Funding Substantial stability in availability: 1,168 million Euro Committed medium term lines equal 231 million Euro Weighted average duration (on an annual basis) equals 89 days Weighted average cost of funding for 1st Q. 2009 is 180 bps more than the average
Slide 22: Attachments
Highlights Strategies and Business Plan Consolidated financial and economic data Attachments
Slide 23: The factoring market and group positioning
The factoring market and group positioning Turnover in Italian factoring market 2008 Not only factoring equal to about 122 billion Euro (source - market Assifact); loan commitments equal to 31 billion Euro. + Italian short term commercial finance But even short term market 2008 equal to 340 billion
Slide 24: The factoring market and group positioning (continued)
The factoring market and group positioning (continued) The Italian factoring market of today is characterised by three types of operators: Factoring companies Captive factoring Independent operators belonging to banks companies or specialists - Intesa Mediofactoring - Serfactoring – ENI Group - Ifit
Slide 25: The factoring market and group positioning (continued)
The factoring market and group positioning (continued) Dimensional approach Profitability approach (Group logic) (Independent) - The assigning enterprises are usually of a - The assigning enterprises are generally significant size and good credit standing small or medium enterprises - The assigned d
Slide 26: The sales structure
The sales structure 96 sales staff work in the 14 branches and the 9 territorial offices that, together, constitute the largest specialised network in Italy. Staff remuneration is, on average, 35% linked to the achievement of the objectives predetermined by the budget. In 2008, agreements with b
Slide 27: What is factoring?
What is factoring? Supply of good/services ENTERPRISE’S ENTERPRISE (assigning supplier) CUSTOMER Debt (assigned debtor) Assignment of Payment of account debt receivables Financing Banca IFIS The assigning enterprise can gain quick access to credit for its liquidity needs A flexible tool that “te
Slide 28: What is factoring for Banca IFIS?
What is factoring for Banca IFIS? Supply of good/services ENTERPRISE ENTERPRISE’S The assigning supplier is a CUSTOMER SME Debt Has a better credit standing Assignment of Payment of account debt receivables Financing Banca IFIS The current economic scenario, with higher sensitivity in terms of cre
Slide 29: Risk assessment in factoring: The different approaches
Risk assessment in factoring: The different approaches Traditional risk Banca IFIS risk assessment assessment The 3 pillars of risk assessment Assessment of NO Operation Assessment NO Operation assignor rejected of debtor rejected YES YES Assessment of NO Operation Assessment of NO Operation receiva
Slide 30: Clients and debtors
Clients and debtors The duration of factoring operations is short-term (90/120 days) The financing granted does not normally exceed 80% of the receivables purchased The transfer of risk is guaranteed even in assignments with debtors of a medium/low credit standing, in which cases the percentag
Slide 31: Banca IFIS milestones
Banca IFIS milestones 1983 The company, I.Fi.S. - Instituto di Finanziamento e Sconto S.p.A. -, was incorporated. 1989 IFIS shares received listing admission on the over-the-counter market of Milan. 1997 Registration in the list of financial intermediaries ex art 107 of the TULB (Consolidation Act f
Slide 32: Stable shareholders
Stable shareholders La Scogliera S.p.A. is controlled by Banca IFIS’s President - Sebastien Egon Fürstenberg. Giovanni Bossi, the C.E.O., has been the bank’s third largest shareholder since 1995. Shareholders The fact that Banca IFIS’s shareholder breakdown is so compact can allow for external growt