Credito Emiliano S.p.a. · MIL:CE
Credito Emiliano — FY2008 Earnings Presentation
24 slides from Credito Emiliano's earnings presentation, Mar 31, 2009
Slide 1: 2008 Group Results
2008 Group Results Adolfo Bizzocchi – General Manager Reggio Emilia, 31 March 2009
Slide 2: Executive Summary, 2008 Highlights, Strategy and Actions
• Executive Summary • 2008 Highlights • Strategy and Actions • Attachments 2
Slide 3: Executive Summary
Executive Summary 2008 Highlights • Network and customers’ base growth continues • Good profitability delivered by commercial banking offset unsatisfactory trading results • Very solid capital ratios do not require any recourse to government aid plan • Undisputable credit quality • No stress in the
Slide 4: Executive Summary, 2008 Highlights, Strategy and Actions
• Executive Summary • 2008 Highlights • Strategy and Actions • Attachments 4
Slide 5: Network and Customers' Base Growth Continues
Network and Customers’ Base Growth Continues 590 nches er of bra •The combined effect of organic and Numb 501 external growth brought the network 469 size close to 600 branches at the end 455 of 2008 400 2005 2006 2007 2008 •Long time planned target of 1 million customers 980 is finally coming close
Slide 6: Resilient Profitability
Resilient Profitability ROE • ROE still two-digit 20.0% 18.3% •Good profitability delivered by commercial banking 15.0% offset unsatisfactory trading results 10.0% 10.5% 5.0% 0.0% 2007 2008 EURm 2007 2008 yoy Total Income 1,005.5 916.1 -8.9% • LLP moderate increase Operating Costs -618.2 -635.6 +2.8
Slide 7: Solid Capital Ratios
Solid Capital Ratios 1,800 9.3% 9.3% •7.0% Core TIER I and 9.3% TIER TOTAL are 1,600 9.6% 8.1% 7.0% excellent ratios 1,400 7.9% 1,200 1794 • Extended application to retail lending, of internal 1,000 1501 rating system Basel II compliant, is expected to 1430 1339 800 1306 free more capital 600 1175 4
Slide 8: Excellent Credit Quality
Excellent Credit Quality 1.4 1.2 •Net NPLs are €81.4 million (€43.3 million at 1.0 the end of 2007) and still represent only 0.46% of Net Total Loans 0.8 % 0.6 • Coverage is 62% (64% in 2007) 0.46 0.4 0.2 0.0 2001 2002 2003 2004 2005 2006 2007 2008 1.56 Total Net Problem Loans amount to €273.3 % on
Slide 9: Safe Liquidity Position
Safe Liquidity Position 15 , 0 0 0 • Low recourse to interbank debt 10 , 0 0 0 • Remarkable increase in Deposits & Repos •€4.8 billion bonds outstanding (€3.5 billion 5,000 EMTN); •€600 million bonds issued to customers during 0 2008 2006 2007 2008 Int erbank, net Deposit s & Repos Bonds 1,250 850 5
Slide 10: Loans and Deposits
Loans and Deposits 15.6 17.6 +13.2% 18 •Loan book growth net of acquired branches is 15 2.8 +24.6% 2.3 3.7% 5.3 +13.2% EURbn 12 +11.8% 4.7 • Mortgage Loans still growing above 10% 9 1.9 1.9 +2.8% 6 •Loans to corporate customers mostly short 3 6.7 7.5 +13.1% term 0 2007 2008 Short Term Loans Leasing
Slide 11: Loan Book Breakdown
Loan Book Breakdown 6.1 6.0 5.4 5.0 5.0 4.2 4.1 4.7 •Large Corporate incidence on total lending 4.0 4.0 4.0 3.5 3.7 less then 10% EURbn 3.1 3.3 3.0 •Retail and Small Business growth trend 2.0 1.6 1.6 1.2 1.3 continues 1.0 0.0 Small Business Retail Large Corporate SMEs and Small Corporate 2005 2006 2
Slide 12: Revenues and Costs
Revenues and Costs 1005.5 916.1 -8.9% 1,000 •Net Interest Income increase partially offset 471.0 353.3 -25.0% Non Interest Income reduction EURm 500 562.8 +5.3% 534.5 0 2007 2008 Net Interest income Non Interest Income 618.2 635.6 +2.8% •Good cost control overall despite investments 500 234.3 243.7
Slide 13: Revenues Details
Revenues Details 6.00 6.02 6.02 6.06 6.08 •Avg commercial spread lower then peers due 5.67 5.00 5.36 5.44 5.55 to limited risk appetite 4.64 4.00 3.69 3.67 3.72 3.74 3.53 •Spread level fairly stable over the last 3.39 3.73 3.57 3.53 3.00 2.53 2.55 semester 2.45 2.00 1.93 2.31 1.68 1.77 1.83 • Risk c
Slide 14: Executive Summary, 2008 Highlights, Strategy and Actions
• Executive Summary • 2008 Highlights • Strategy and Actions • Attachments 14
Slide 15: 2008-2010 Business Plan Guidelines Unchanged
2008-2010 Business Plan Guidelines Unchanged • Strong push on distribution capacity exploitation, to extract value from recent investments in organic and external growth (more than 140 new branches either opened and acquired during last three years) • Focus on product factories coherent with group’s
Slide 16: 2008 Acquisitions
2008 Acquisitions 3 2 3 5 February 2008 - acquired from Citigroup 5 1 private bank branches (2 in Milan, 1 in Turin, 1 in 4 Florence, 1 in Rome). Deal closed in May 2008 at a price of €40 million (was €45 million at the 34* signing) 2 March 2008 - acquired from Banco Popolare 33 6 branches and 2 cor
Slide 17: Investment Banking Reorganization
Investment Banking Reorganization • Investment banking is a non-core business for Credem Group • Overall investment banking business expectations are gloomy for the years to come • Investment banking business perceived risk and volatility do not fit with Credem Group global strategy • Abaxbank resul
Slide 18: Hedge Fund Business Shrinkage
Hedge Fund Business Shrinkage • In 2002 Credem Group decided to create Euromobiliare Alternative Investments, to complete the asset management product range with funds of hedge funds to be offered to private bank customers • Exceptional market conditions experienced in the second half of 2008, led t
Slide 19: Executive Summary, 2008 Highlights, Strategy and Actions
• Executive Summary • 2008 Highlights • Strategy and Actions • Attachments 19
Slide 20: Rights Issue Outcome
Rights Issue Outcome The rights issue finalized in November 2008, for a total amount of €250 million, was almost entirely subscribed by Credemholding Pact among More than 2,900 other 230 shareholders shareholders Maramotti Family 35.5% Others 38.5% 74.1% 25.9% CREDEMHOLDING Free Float 76.9% 23.1% CR
Slide 21: A Complete Group
A Complete Group Commercial banking Wealth Management Investment Banking Other CREDEM 100% 98.5% 100% 100% 100% Life Insurance 100% 100% 50% 100% FIDUCIARIA Spa General Insurance 100% * na 100% 100% 100% 100% 100% 21
Slide 22: Distribution Network
Distribution Network 5 1 2007 2008 76 0 31 22 Credem Branches 479 563 B.ca Euromobiliare Branches 22 27 10 137 Total Branches 501 590* 50 3 8 Corporate Centres 42 45 5 Credem Points 29 36 30 B.ca Euromobiliare Fin. Stores 22 22 1 44 51 Credem FAs 468 640 2 Banca Euromobiliare FAs * 292 362 4 Total F
Slide 23: Q&A
Q&A 23
Slide 24: Disclaimer and Contacts
Disclaimer and Contacts 2008 Group consolidated accounts include Credemvita contribution at 50% until 3/31/08 and at 100% from then on. Therefore, for a correct comparison of results, 2007 consolidated accounts have been restated accordingly. Also, 2007 consolidated accounts have been restated to ex
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