Banca Sistema S.p.a. · MIL:BST
Banca Sistema — H1 2015 Earnings Presentation
12 slides from Banca Sistema's earnings presentation, Jul 30, 2015
Slide 1: Presentation of 1H 2015 Results
Presentation of 1H 2015 Results 30 July 2015
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 2015 Results at a Glance
1H 2015 Results at a Glance* Net Interest income +20% y/y, equal to €29.0m, due to a continued High quality increase of factoring Turnover, additional contribution from the newly launched business lines and decreasing cost of funding earnings Cost income down at 42% vs. 49% at the end of 2014 Profit
Slide 4: Factoring growth in line with Q1 2015
Factoring growth in line with Q1 2015 Factoring Turnover Evolution €m €30m originated from bank +35% distribution agreements. Access to a network of more 1Q 2015 vs 1Q 2014 +37% than 1,000 bank branches thanks to 11 commercial +36% agreements signed as at today 447 600 329 285 271 +22% 241 442 201 +
Slide 5: Increased contribution from new business lines
Increased contribution from new business lines CQS/CQP outstanding SME State Guaranteed Loans outstanding €m €m Thanks to 3 distribution agreements Highly selective risk approach, we purchased more than 2,600 loans 65 notwithstanding the guarantee in 1H 2015 (~€54m) 60 40 27 19 13 31.12.2014 31.03.2
Slide 6: 1H 2015 – Income Statement
1H 2015 – Income Statement* Income Statement - €/000 1H 2015 1H 2014 Change NII increase (+20%) driven by Net Interest income 28,951 24,057 20.3% higher factoring volumes, lower Net commission income 5,853 5,560 5.3% cost of funding and higher Dividends - 33 nm contribution from CQS/CQP and Trading
Slide 7: 1H 2015 – Balance Sheet
1H 2015 – Balance Sheet Balance Sheet - €/000 30/06/2015 31/12/2014 Change Stable Govies AFS portfolio Financial assets 917,215 858,070 6.9% with an average duration of 9.3 Due from banks 46,013 16,682 175.8% months Customer loans 1,326,403 1,193,754 11.1% Factoring 837,687 851,856 -1.7% Factoring r
Slide 8: Strong revenues supporting earnings growth
Strong revenues supporting earnings growth Total income Net interest income representing 79% of the Total Income up €m +20% y/y +11% 36.9 Reduced contribution from the carry trade, from €1.5m in 1H 33.1 2014 to €0.8m in 1H 2015 Interest income up y/y across all business lines: factoring; CQS/CQP and
Slide 9: Scalable platform and IT infrastructure
Scalable platform and IT infrastructure Administrative Expenses, Operating Costs1 Personnel Expenses1 Servicing Costs, D&A 1 €m Servicing costs are variable costs FTEs (#) 106 129 directly related to the servicing and collection activities of the +5 Sales factoring portfolio 15.8 15.6 9.8 9.1 6.5 6.
Slide 10: Funding Overview
Funding Overview Funding Breakdown Customer Deposits Evolution €m • Funding strategy Customer focused on Deposits 881 870 diversifying financing 41% 719 sources and Wholesale 535 312 310 Funding 12 185 optimising cost of 59% funds 523 534 569 560 • Access to wholesale Wholesale funding is composed p
Slide 11: Conservative provisioning policy with no credit losses since 2011
Conservative provisioning policy with no credit losses since 2011 Cost of Risk and Loan Loss Provisions Cost of Risk 23 8 41 44 (bps) 3.5 €m 2.1 0.9 0.5 2012 2013 2014 1H 2015 Loan Loss Provisions Split FY 2014 1H 2015 Collective Collective 22% 22% Including €0.2m Including €0.1m released released p
Slide 12: Conclusions
Conclusions We continue to see consistent growth across the Bank, underpinned by the strength of our core business and supplemented by the development of our new business lines. We have built a stable and diversified funding base, focussed on optimising our cost of funds. We have demonstrated that o