Bper Banca S.p.a. · MIL:BPE
Bper Banca — Q3 2022 Earnings Presentation
32 slides from Bper Banca's earnings presentation, Nov 7, 2022
Slide 1: 9M22 Consolidated Results
9M22 Consolidated Results Piero Luigi Montani, CEO 7th November 2022 1
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 be information purposes, and only in order to present its strategies and reproduced or published as a whole or in part, nor may such main financial figures. informati
Slide 3: Change in the scope of consolidation and Purchase Price Allocation
Change in the scope of consolidation and Purchase Price Allocation Change in the scope of consolidation In 2Q22 the BPER Group changed the scope of consolidation following the acquisition of the controlling stake in Banca Carige’s share capital from the Interbank Deposit Protection Fund and the Volu
Slide 4: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 4
Slide 5: 9M22 results executive summary
9M22 results executive summary ROBUST PROFITABILITY, STRONG ASSET QUALITY METRICS AND SOLID CAPITAL RATIOS • 9M22 adjusted1 net profit of 425.1 €mln (1,466.4 €mln stated) • 3Q22 adjusted net profit came in at 108.6 €mln, after payment of 123.3 €mln in systemic costs • Strong revenue growth in 3Q22 u
Slide 6: Banca Carige Acquisition
Banca Carige Acquisition Merger process well on track and expected to be completed by end-2022 1Q22 Transaction announcement and completion of due diligence process Carige’s clients and volumes* 2Q22 Acquisition of Banca Carige controlling stake (79.4%) Clients AUM & Life bancassuranace >800k 10
Slide 7: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 7
Slide 8: Direct and Indirect Deposits
Direct and Indirect Deposits Annexes • Direct Deposits up 15.1% YTD • Indirect Deposits impacted by negative market performance Direct Deposits (€bn) Indirect deposits (€bn) +15.1% 166.3 161.3 163.5 155.6 14.9 13.3 114.5 116.7 148.7 101.4 142.3 99.4 14.6 14.3 Chg. YTD 144.2 Like-for-like 2 99.4 99.9
Slide 9: Net Customer Loans
Net Customer Loans Balance sheet Stock up 14.8% YTD driven by strong commercial focus and Carige contribution Net Customer loans (€bn) +14.8% 91.1 90.8 • Net customer loans at 90.8 €bn (of which 8.3 €bn 79.1 78.7 10.6 10.3 State guaranteed), up 14.8% YTD (+1.7% on a like- for-like basis) 80.5 80.5 C
Slide 10: Asset Quality
Asset Quality Balance sheet Strong asset quality confirmed in Q3 22 with declining NPE ratios and coverage further strengthened Loan book breakdown: stock and coverage (€mln; %) NPE ratios over time (%) Dec 21 Jun 22 Sep 22 Q/Q Bad Loans 5.5% Gross 2,014 2,015 1,959 -2.8% 4.9% 4.9% Net 567 491 433 -
Slide 11: Financial assets portfolio
Financial assets portfolio Balance sheet Financial assets portfolio totalled 30.5 €bn Financial Assets breakdown (€mln) Italian Government bonds (€bn) 10.6 8.6 2.3 7. 8 €/mln FVTPL FVOCI AC Total % on total Bonds 136 7,782 20,825 28,742 94.3% o.w. Italian gov 3 2,632 7,917 10,552 34.6% Equity 88 498
Slide 12: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 12
Slide 13: Profit & Loss
Profit & Loss Profit and Loss 9M22 results show strong ordinary profitability driven by top line growth P&L - (€mln) 9M22 9M22 2Q22 3Q22 3Q22 o/w o/w Chg. Q/Q P&L Highlights 1 (2) BPER Recurring * Recurring* Recurring Carige (excl. Carige) (A) (B) A/B Net interest income 1,260.4 1,260.4 409.0 475.0
Slide 14: Net Interest Income
Net Interest Income Profit and Loss 9M22 NII at 1,260.4 €mln underpinned by higher interest rates and lending volumes NII over time (€mln) Focus on NII moving parts of 3Q22 (€mln) +16.1% 475.0 +33.8 +14.8 +56.9 475.0 376.4 409.0 409.0 418.1 56.9 -18.8 -20.7 418.1 +2.2% 1 2Q22 BPER Branch Securities
Slide 15: Net commission income
Net commission income Profit and Loss In 9M22 Net commission income at 1,418.0 €mln, underpinned by traditional banking fees Net Commission Income over time (€mln) Net Commission Income break down (€mln) +8.8% Chg. Q/Q Like-for-like 1 504.0 504.0 450.6 463.4 451.5 22.7 450.6 463.4 26.5 -35.2% 52.5 1
Slide 16: Trading income and Dividends
Trading income and Dividends Profit and Loss In 9M22 Trading Income and dividends totalled 135.9 €mln showing strong resilience despite financial markets headwinds Trading income and dividends over time (€mln) 59.2 0.3 41.1 35.7 • In 3Q22 Trading income came in at 32.4 15.6 3.3 €mln up 27.1% Q/Q dri
Slide 17: Operating Costs
Operating Costs Profit and Loss 9M22 Operating Costs came in at 1,802.5 €mln Operating Costs quarterly trend (€mln) Focus on Recurring Operating Costs* (excluding Carige) -3.3% 654.2 558.4 556.9 538.6 Chg. Q/Q 589.9 45.6 48.5 558.4 100.9 49.0 +1.0% 33.0 14.7 160.7 172.9 175.6 +1.5% 556.9 538.6 352.2
Slide 18: Loan Loss Provisions and Cost of Risk
Loan Loss Provisions and Cost of Risk Profit and Loss 9M22 cost of risk at 48 bps LLPs trend (€mln) Cost of risk trend (bps)* 137 125 112 115 104 12 103 3Q21 4Q21 1Q22 2Q22 3Q22 Default rate trend (%) BPER Carige 0.9% 0.8% • In 3Q22 LLPs amounted to 115 €mln, of which 12 €mln related to Carige perim
Slide 19: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 19
Slide 20: Capital
Capital Capital adequacy Strong capital position confirmed Pro-forma Fully Phased CET1 (%) Pro-forma Phased in CET1 ratio of 13.6% Pro-forma Phased in CET1 ratio of 13.0% ~ 13.2% ~65bps 12.8% +3bps -14bps -14bps -5 bps 12.5% Jun 22 3Q net result OCI reserves Deductions RWA Sep 22 Full benefit Sep 22
Slide 21: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 21
Slide 22: Final remarks
Final remarks • OPERATING PROFITABILITY UNDERPINNED BY TOP LINE GROWTH • RESILIENT ASSET QUALITY WITH DECLINING NPE RATIOS AND HIGH COVERAGE • SOLID CAPITAL AND LIQUIDITY POSITION WELL ABOVE REGULATORY REQUIREMENTS FACING CHALLENGING MACRO SCENARIO FROM A POSITION OF STRENGTH 22
Slide 23: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 23
Slide 24: Volumes breakdown
Volumes breakdown Annexes Direct Deposits (€mln) Net Customer Loans (€mln) €/mln Dec 21 Mar 22 Jun 22 Sep 22 YTD €/mln Dec 21 Mar 22 Jun 22 Sep 22 YTD Customer Direct Deposits 96,201 93,810 106,882 107,165 +11.4% Current Accounts 4,969 5,126 6,070 5,819 +17.1% o/w C/A and sight deposits 91,885 89,41
Slide 25: Net Interest Income breakdown
Net Interest Income breakdown Annexes o/w o/w o/w Chg. Q/Q €mln 9M22 1Q22 2Q22 3Q22 % Commercial NII 1,095.2 336.1 362.7 396.5 9.3% Securities portfolio 99.3 22.9 30.8 45.6 47.8% TLTRO-III1 63.0 29.8 26.9 6.3 -76.8% Other Institutional funding -62.0 -15.3 -14.0 -32.7 133.6% IFRS 9 and IFRS 16 8.0 3.
Slide 26: 9M22 P&L Breakdown of one-offs
9M22 P&L Annexes Breakdown of one-offs 9M22 9M22 9M22 (€mln) Notes Stated one-offs Recurrent Net interest income 1,260.4 - 1,260.4 Net commission income 1,418.0 - 1,418.0 Core Income 2,678.4 - 2,678.4 Dividends 19.2 - 19.2 Net income from financial activities 116.7 - 116.7 Other operating expenses/i
Slide 27: Operating Costs
Operating Costs Annexes Breakdown of one-offs o/w Chg. % Q/Q 2Q22 o/w €/mln 3Q21 4Q21 1Q22 3Q22 BPER like-for-like (A) Carige (B) A/B Staff expenses 313.8 557.2 352.2 259.4 360.9 314.1 46.9 o/w Extraordinary 1.5 210.0 - 24.0 - - - o/w Ordinary 312.3 347.2 352.2 335.4 360.9 314.1 46.9 -6.4% Other adm
Slide 28: Provisional Purchase Price Allocation
Provisional Purchase Price Allocation Annexes Breakdown of PPA Eur/mln 30/06/2022 Chg. 3Q22 30/09/2022 Carige Net Equity 1,632.7 - 1,632.7 Cost of Mandatory Tender Offer (125.8) 0.3 (125.5) Initial Badwill 1,507.0 0.3 1,507.3 Fair Value adjustments on NPE (145.0) (145.0) Fair Value adjustments on Pe
Slide 29: Net Customer loans
Net Customer loans Annexes Portfolio composition Net customer loans breakdown by sector (€bn) Customer loans breakdown by geographical areas1(%) % on Total Δ% Business sector Sep 22 Customer vs Dec 21 Loans North Centre Manufacturing 13.7 15.1% +8.5% Wholesale and retail services, 7.8 8.6% +14.2% 60
Slide 30: Asset quality
Asset quality Annexes Asset quality breakdown (excl. debt securities) Gross exposures (€mln) Dec 21 Mar 22 Jun 22 Sep 22 Chg Q/Q Chg YTD comp. % comp. % comp. % comp. % Abs. Chg (%) Abs. Chg (%) Non Performing Exposures (NPEs) 4,025 4.9% 4,008 4.9% 4,088 4.3% 3,974 4.2% -114 -2.8% -51 -1.2% Bad loan
Slide 31: Bond maturities and issuances: highlights
Bond maturities and issuances: highlights Annexes Outstanding bonds1 (€bn) Bonds issued1 (€bn) 1.8 Dec 21 Sep 22 1.3 Wholesale bonds 3.9 5.7 0.7 1.8 o/w covered bonds 1.9 2.2 o/w subordinated bonds 0.9 1.6 0.6 Retail bonds 0.9 0.7 2021 9M22 Total bonds 4.8 6.4 Total figures Retail Covered Bond Whole
Slide 32: Contacts for Investors and Financial Analysts
Contacts for Investors and Financial Analysts Fabio Pelati Nicola Sponghi Head of Investor Relations Investor Relations Via Aristotele, 195 - 41126 Modena - Italy Via Aristotele, 195 - 41126 Modena - Italy +39 059 2021396 +39 059 2022219 fabio.pelati@bper.it nicola.sponghi@bper.it 32