Credito Emiliano S.p.a. · MIL:CE
Credito Emiliano — Q3 2007 Earnings Presentation
23 slides from Credito Emiliano's earnings presentation, November 2007
Slide 1: CREDEM 3Q07 Results
CREDEM 3Q07 Results 1 Investor Relations november 2007
Slide 2: CREDEM at a Glance
• CREDEM at a Glance • Key Data • 3Q07 Results • Long Term Strategy 2 Investor Relations november 2007
Slide 3: Shareholders' base
Shareholders’ base Pact among 230 shareholders More than 2,900 Maramotti family 35.5% other shareholders Pictet Cie 4.9% Eredi Savioli 2.9% Fincorrad 2.2% Allianz Subalpina 1.7% 72.9% 27.1% CREDEMHOLDING Free Float 71.9% 28.1% CREDEM • Listed on Milano Stock Exchange since 1997 • Market cap around E
Slide 4: Group structure
Group structure Distribution Wealth Management Investment Banking Other CREDEM 100% 98.5% 50% * 100% 100% Life Insurance 100% 100% 50% * 69.7% 100% FIDUCIARIA Spa General Insurance ** 100% * na 100% 100% 100% 100% 100% 100% * To become fully controlled subject to regulatory authorization **To be dis
Slide 5: Network and Human Resources
Network and Human Resources 532 branches and corporate centres, 5,307 employees. 1,163 financial advisors*, 231 private bankers 12/31/06 9/30/07 5 Credem Branches 447 468 70 0.4 % B.ca Euromobiliare Branches 21 22 20 17 1.1 % Total Branches 468 490 0.6 % 0.6% 130 10 3.8 % Corporate Centres 41 42 0.9
Slide 6: Key Data
• CREDEM at a Glance • Key Data • 3Q07 Results • Long Term Strategy 6 Investor Relations november 2007
Slide 7: Main Facts
Main Facts Total Customers Business* 74 billion Customers base (,000) 820 total customers AUM 24% 800 AUC 33 % 780 of w hich retail Deposits customers & Bonds 760 22% 740 Loans 21 % 720 *Sum of activities with customers (AUC, loans, AUM, direct fundings) 700 680 2004 2005 2006 9/30/2007 Comparison w
Slide 8: Value Creation
Value Creation ROE EPS EUR .1% Avg 15 0.90 0.82 23.2% 21.3% 19.3% 14.6% 0.51 0.51 11.6% 13.5% 8.5% 13.5% 11.1% 14.8% 0.39 0.40 0.35 0.22 0.26 0.17 cagr 15.7% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Dividend and Payout Ratio Capital Adequacy
Slide 9: 3Q07 Results
• CREDEM at a Glance • Key Data • 3Q07 Results • Long Term Strategy 9 Investor Relations november 2007
Slide 10: 3Q07 Summary
3Q07 Summary • Net Interest Income on the rise • AUM and commision fees recovering, trading income slow • Costs under control • No impact from the liquidity crisis 10 Investor Relations november 2007
Slide 11: Net Interest Income increasing
Net Interest Income increasing Total Income 900 813.1 +5.9% Cont’d Revenues growth 1,061 800 768.0 1,100 945 1,000 816 69 813 700 900 54 131 427.0 101 43 600 -4.5% 800 43 446.9 79 74 EURm 500 700 421 EURm 600 415 400 376 311 500 300 400 200 386.1 +20.2% 300 321.1 200 376 440 386 100 317 100 0 0 3Q06
Slide 12: Commission Income recovering, Trading Income slow
Commission Income recovering, Trading Income slow EURm 3Q06 FY06 3Q07 % yoy Total Income Quarterly Trend Net Commission Income 311.4 420.9 310.7 -0.2 - of which: Asset Mngmt 175.0 232.5 164.8 -4.4 130 - of which: Banking Services 87.5 117.4 86.5 -1.1 110 - of which: Brokerage Fees 34.3 48.1 42.9 25.
Slide 13: Costs under control
Costs under control Cont’d Operating Costs FY04 FY05 FY06 3Q07 600 EBIT (EURm) 245.6 333.3 416.2 306.0 550 485.1 +7.9% 500 449.7 Revenues per Employee (EUR,000) 164.0 190.0 211.4 153.2 450 Oper. Costs per Employee (EUR,000) 108.6 123.9 123.3 91.4 400 187.0 175.7 +6.4% Operating Costs/Non Interest In
Slide 14: Profitability
Profitability EURm 3Q06 FY06 3Q07 % yoy Companies contribution to Net Profit Total Income 768.0 1,060.9 813.1 5.9 EURm 3Q06 FY06 3Q07 Operating Costs -449.7 -618.8 -485.1 7.9 Core business 145.1 194.7 154.5 EBITDA 318.3 442.1 328.0 3.0 Credem 118.9 159.9 130.9 Amortization and Depreciation -18.6 -25
Slide 15: Lending
Lending Lending volumes (net of repos) Loans by clients 3Q06 3Q07 yoy segment EURm Retail 8,393 10,148 20.9% 15.3 +14.5% 15 13.3 14.4 Corporate 4,931 5,488 11.3% 2.2 +13.2% 2.1 6.0 12 2.0 5.0 5.2 4.6 +12.8% EURbn 4.2 5.0 4 +15.5% 9 4.0 3.8 3.7 4.0 3.7 1.8 1.8 +6.1% 3.5 3.3 3.5 6 1.7 3.1 3.1 3.1 Eurb
Slide 16: Credit Quality and Risks
Credit Quality and Risks • Credit quality consistently high, with an NPL ratio of 0.23% EURm 3Q06 FY06 3Q07 (0.22% at December ‘06) compared to an industry average of 1.15% (Sources: Bank of Italy) Market Risk (99% - 10 days) 5.0 4.5 Credem 4.0 - average 16.5 15.5 16.7 3.5 - maximum 25.3 25.3 26.6 3
Slide 17: Funding
Funding EURm 3Q06 FY06 3Q07 % yoy Mutual Funds breakdown (EURm) Deposits 9,203 10,020 10,594 15.1 Bonds 4,365 4,431 5,474 25.4 100% 359 751 702 687 Flex Portfolio Managed Accounts 5,592 5,931 6,298 12.6 90% 2,182 27.8% Mutual Funds and SICAVs 9,221 8,969 8,832 -4.0 80% 1,900 24.0% 1,885 29.6% Cash 7
Slide 18: Long Term Strategy
• CREDEM at a Glance • Key Data • 3Q07 Results • Long Term Strategy 18 Investor Relations november 2007
Slide 19: 2006-2008 Business Plan Guidelines
2006-2008 Business Plan Guidelines STRATEGY 2008 GOALS CENTRAL ROLE OF CORE BUSINESS EXCELLENCE IN VALUE CREATION OVER TIME • Commercial Banking and Wealth Management activities generating well above 80% of Group’s • ROE consistently above 17% EBIT • Net Profit growing 11% cagr to 243 €million • Tar
Slide 20: 2008 Targets
2008 Targets CAGR Total Income Cont’d Operating Costs CAGR 1,200 1,158 7.0% 800 945 674 4.7% 700 900 586 649 4.5% 600 250 5.0% EURm 500 216 EURm 570 600 400 300 10.6% 300 509 200 423 370 4.6% 376 100 0 0 2005 2008P 2005 2008P Net interest income Non-interest income Payroll costs Admin. expenses Prof
Slide 21: 2008 Targets (cont'd)
2008 Targets Customer Cash Loans CAGR Cont’d Funding from Customers CAGR 15 80 6.8% 11.2% 67.5 60 55.3 17.3 27.7 3.5% EURbn EURbn 12 40 25.0 12.6 22.7 8.1% 20 18.0 3.7 8.0 29.0% 9 8.6 9.0 1.5% 0 2005 2008P 2005 2008P Customers deposits Bonds AUM AUC TIER I Distribution Channels 1,200 8% 600 62 7.7%
Slide 22: 2008 P&L
2008 P&L EURm 2005 2008P CAGR Total Income CAGR will reach 7% with a strong contribution from 05-08 the interest income. Net Interest Income 376 509 10.6% Operating Costs, including D&A are expected to increase by 5% Net Commissions 415 474 4.6% reflecting increasing commercial investments estimated
Slide 23: Disclaimer and Contacts
Disclaimer and Contacts In accordance with section 2, Article 154-bis of the consolidated Law on Finance TUF), the Financial Reporting Manager Paolo Tommasini, declares that the accounting information contained in this press release correspond to documentary records, ledgers and accounting entries.
Credito Emiliano S.p.A. (CREDEM) — Q3 2007 Earnings Presentation on 6ix