Banca Sistema S.p.A. · MIL:BST
Banca Sistema — H1 2016 Earnings Presentation
15 slides from Banca Sistema's earnings presentation, Jul 29, 2016
Slide 1: 1H 2016 Results
BANCA SISTEMA CONTEMPORARY BANK 1H 2016 Results 29 July 2016
Slide 2: Disclaimer
Disclaimer The distribution of this presentation in other jurisdictions may be restricted by law or regulation. Accordingly, persons who come into possession of this document should inform themselves of, and observe, these restrictions. To the fullest extent permitted by applicable law, the companie
Slide 3: 1H 2016 Results at a Glance
1H 2016 Results at a Glance Net Income +17% y/y reached at €15.7m, includes €6.9m gross for the accrual of the factoring LPIs and €2.3m gross for the sale of 15.8% stake in CS Union (NPLs) P&L €34.6m Net Interest income +20% y/y including the accrual of the LPIs, factoring remains the main contribut
Slide 4: Targeting a FY 2016 Factoring Turnover growth of 20%
Targeting a FY 2016 Factoring Turnover growth of 20% Factoring Turnover €m +16% 697 Banking Network represents 600 11% of 1H 2016 Turnover (5% in 1H 2015) 442 2Q 241 329 361 1Q 201 271 336 1H 2014 1H 2015 1H 2016 Factoring Outstanding Breakdown - €997m (+11% y/y) By Type of Product By Obligor By Cli
Slide 5: CQS/CQP and SME loans represent today 22% of Total Loans
CQS/CQP and SME loans represent today 22% of Total Loans CQS/CQP Loans outstanding SME State Guaranteed Loans outstanding €m €m Purchases from >100% 182 +40% 84 5 originators 60 65 30.06.2015 30.06.2016 30.06.2015 30.06.2016 Outstanding breakdown by Type (30.06.2016) Outstanding breakdown by Geograp
Slide 6: 1H 2016 – Income Statement
1H 2016 – Income Statement* Figures in thousands of Euro 30.06.2016 30.06.2015 Difference % A B (Normalized) A-B NII includes €6.9m of accrued Net interest income 34,647 28,951 19.7% LPIs, representing 15% of the LPIs Net fee and commi s s i on i ncome 4,415 5,853 -24.6% due, on the legally actioned
Slide 7: 1H 2016 – Balance Sheet
1H 2016 – Balance Sheet 30.06.2016 31.12.2015 Difference % A B A-B ASSETS Govies AFS portfolio decrease from Ca s h a nd ca s h equi va lents 90 104 -13.5% Ava i l abl e-for-s a l e fina nci a l as s ets 411,422 925,402 -55.5% €0.9bn to €0.4bn with a residual Loa ns a nd a dva nces to ba nks 49,701
Slide 8: Factoring represents the main source of revenues
Factoring represents the main source of revenues Net Interest Income Breakdown Factoring Average Outstanding Evolution SME €m SME Govies & Govies & Loans Loans Others 1% 6% Others 1% 967 921 CQS/CQP 4% CQS/CQP 810 828 1% 5% 212 216 127 169 755 705 683 659 Factoring Factoring 94% 88% 1H 2015 1H 2016
Slide 9: Costs ex. some components in line with expectations
Costs ex. some components in line with expectations Administrative Expenses, Net Provisions for Operating Costs* Personnel Expenses risk, Servicing Costs, Other and D&A* €m • -€0.6m contribution Average 124 131 to National Resolution Fund and FTEs (#) +12% +€0.3m rebate from the Fund • -€1m for M&A
Slide 10: Funding strategy focused on diversifying
Funding strategy focused on diversifying Total Funding Breakdown Core Business Funding Breakdown • Higher diversification and 40% as at 71% better ALM 31.03.2016 63% 58% Wholesale • Term Deposits and Funding Retail Current Accounts 49% Funding 25% 26% have been reduced 20% 51% 4% 4% 7% 7% 9% 6% to a
Slide 11: Conservative risk policy in all the business lines
Conservative risk policy in all the business lines Gross Non Performing Loans €m • Net Bad Loans represents 1.8% of total loans as at 105.2 30.06.2016 ex. Repos (1.1% in 2015) 91.3 92.5 • Bad loans increase q/q was due to some 30.0 deterioration of the SMEs State Guaranteed loans 20.0 23.4 portfolio
Slide 12: Appendix
Appendix
Slide 13: Regulatory Capital
Regulatory Capital CET1 and Total Capital RWA breakdown €m €m CET1 Total Capital Operational Risk Operational Risk Credit Risk will change in 4Q 2016 119.0 656.3 689.6 110.6 635.7 106.9 99.0 86.9 90.6 589.1 535.2 555.8 100.5 100.5 100.5 31.12.2015 31.03.2016 30.06.2016 31.12.2015 31.03.2016 30.06.20
Slide 14: Methodological notes - LPIs
Methodological notes - LPIs After five years a the establishment of Banca Sistema, considering: • the significant increase in purchased loan volumes; • the experience accrued through the more systematic initiation of in-court and out-of-court recovery actions on defaulted loans; • the more structure
Slide 15: Carlo Di Pierro, Head of Investor Relations
Carlo Di Pierro Head of Investor Relations carlo.dipierro@bancasistema.it +39 02 80280358 +39 3355288794 bancasistema.it