Credito Emiliano S.p.a. · MIL:CE
Credito Emiliano — Q1 2021 Earnings Presentation
24 slides from Credito Emiliano's earnings presentation, 2021
Slide 1: Group Results 1Q21
A = GROUP RESULTS 1021
Slide 2: 1Q21: Key Points
1Q21: KEY POINTS LOANS GROWTH NPL RATIO* Loans to customers Credit quality: equal to €29.6 billion, best-in-class in +13.2% up by more than 13% Italy and close YoY growth, over 4x 4.1% to the EU compared to the average Industry 2.8% 2.6% 3.0% PROFITABILITY CAPITAL Net Profit 14.02% Capital soundness
Slide 3: A Growing Digital Approach
A GROWING DIGITAL APPROACH INTERNET BANKING 1 DIGITAL OPERATION: RETAIL 4 >655,000 contracts (+2%) MIGRATION TREND +16% of access +27% of online operations vs 1Q20 As of March 2021, more than Incidence on bank accounts at 90% of overall transactions 68% vs 66% FY20 was carry out through di
Slide 4: Non-Financial Disclosure 2020 – Main Results
NON-FINANCIAL DISCLOSURE 2020 – MAIN RESULTS PLANET GOVERNANCE • 100% of energy from • Complete Gender equality in renewable and certified the BoD sources • 59,361 Stakeholders • 100% recycled materials involved through online • Carbon Neutrality by 2025 surveys (+ 128%) • 9 ESG board induction sess
Slide 5: Reclassified Income Statement
RECLASSIFIED INCOME STATEMENT €, million 1Q20 4Q20 1Q21 Δvs 1Q20 Δvs 4Q20 • Operating Income kept growing in the ù Operating Income 298.3 307.5 335.7 +12.5% +9.2% quarter, + 12.5% vs 1Q20, thanks to the excellent contribution from fees and Core Op. Income 267.7 291.1 292.8 +9.4% +0.6% Financial Acti
Slide 6: Net Interest Income (1/3)
NET INTEREST INCOME (1/3) NET INTEREST INCOME: EVOLUTION EURIBOR AND SPREAD BTP/BUND 0.5% 0.4% +4.9% 199 0.3% 171 0.2% -3.7% 133 0.1% 131 103 90 -0.1% 122 -0.2% 116 117 -0.30% 112 -0.3% -0.41% -0.47% -0.4% -0.52% -0.54% -0.5% -0.6% -0.7% 1Q19 2Q19 3Q19 4Q19 1Q20 1Q20 2Q20 3Q20 4Q20 1Q21 3 months Eur
Slide 7: Net Interest Income (2/3)
NET INTEREST INCOME (2/3) CUSTOMERS SPREAD The competitive environment led to a further 2.10 1.90 reduction in the average rate of loans both for the 1.85 Industry (-3 bps vs 4Q20) and for Credem (-4 bps 1.78 1.78 1.77 1.68 1.69 vs 4Q20) 1.55 -0.34 1.47 1.43 1.50 Industry’s average deposit rate
Slide 8: Net Interest Income (3/3)
NET INTEREST INCOME (3/3) SECURITIES PORTFOLIO BREAKDOWN 5.1 mld 4.5 mld Temporary reduction of the overall % securities portfolio, mainly due to some profit taking on Government bonds % BTP exposure decreased as well as the % 43% incidence on the total. As a consequence 50% of sales, at the end
Slide 9: Non Interest Margin
NON INTEREST MARGIN Total 186.4 162.0 187.2 185.6 218.3 40.7 19.4 27.8 2.9 Performance Fees 4.1 51.0 50.6 51.6 Income from 49.8 48.0 Financial Activities 17.1 Banking Fees 14.6 15.4 10.2 14.4 Insurance Income 91.4 96.0 94.4 101.5 Asset Management 86.3 and Brokerage Fees 1Q20 2Q20 3Q20 4Q20 1Q21 «Cor
Slide 10: Operating Costs and D&A
OPERATING COSTS AND D&A OPERATING COSTS EMPLOYEES / NETWORKS +5.7% Employees 184 164 170 187 195 6,195 6,201 6,219 6,288 6,068 6,140 6 5,899 185 5,763 49 51 5,544 5,519 5,604 5,609 52 135 43 49 85 132 121 121 139 138 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q21 35 Financial Advisors 1
Slide 11: Loans to Customers
LOANS TO CUSTOMERS LOANS TO CUSTOMERS: EVOLUTION 8,364 8,578 24,000 5,699 7,119 7,964 20,000 Other Loans 16,000 7,484 7,733 7,993 8,329 8,722 Residential Mortgage Leasing 12,000 2,656 2,710 2,753 2,838 2,852 Short-Term8,000 Loans 4,000 10,342 9,859 9,393 9,769 9,489 0 1Q20 1H20 9M20 2020 1Q21 Total
Slide 12: Covid Emergency: Total Delivered Loans
COVID 19 EMERGENCY: TOTAL DELIVERED LOANS GOVERNMENT AND SYSTEM INITIATIVES Moratoria* State-backed guaranteed loans** «Cura Italia» Decree, «Accordo Abi» and «Liquidità» Decree «Fondo di solidarietà prima casa» FY20 3,610 FY20 2,703 1Q21 3,130 3,155 1Q21 2,216 2,752 2,111 1,690 526 592 480 403 HOUS
Slide 13: Loans: Comparison with the Industry
LOANS: COMPARISON WITH THE INDUSTRY LOANS TO CUSTOMERS GROWTH* MARKET SHARES** EVOLUTION 1.95% 1.95% +13.2% YoY 1.89% 1.87% 1.9% 1.79% Industry 1.77% 1.66% Credem +61.3% 1.58% 1.6% 1.48% 1.28% 1.3% 3.0% YoY 1.16% 1.20% MS on Performing Loans 1.07% 1.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 20
Slide 14: Group Customers Funding: Net Inflows Breakdown
GROUP CUSTOMERS FUNDING: NET INFLOWS BREAKDOWN 1,233 AUC 1,033 Direct Deposits 945 AUM + Insurance 609 697 Total Net Inflows 573 564 245 285 193 130 -103 41 -18 -28 -74 -146 -226 -389 -554 1Q17 1Q18 1Q19 1Q20 1Q21 1Q17 1Q18 1Q19 1Q20 1Q21 Remarkable performance of Net Production (+115% vs 1Q20) reac
Slide 15: Deposits, AUM and Insurance
DEPOSITS, AUM AND INSURANCE • Direct Deposit kept growing (+4.6% vs FY20), €, million 2019 2020 1Q21 mainly driven by net inflows and growth in Sight / Saving Depo. 25,825 30,321 31,347 customer base CD and Other Deposits 482 495 887 • Positive increase in AUM, that grew by 2% vs FY20, Direct Deposi
Slide 16: Bonds Issuances and Maturities
BONDS ISSUANCES AND MATURITIES ISSUANCES 1000 MATURITIES Wholesale Retail 800 Covered Bond 2,000 365 500: SNP 600 1,500 750: CB 500 SNP 1,000 400 750 750 200: T2 1,500 107.5: T2 500 Tier 2 500 1,250 200 Tier 2 Covered Tier 2 CRVita CRVita Bond 38 200 - 250 50 100 307.5 0 50 100 100 107.5 2014 2015 2
Slide 17: Credit Quality: Gross NPL Ratio
CREDIT QUALITY: GROSS NPL RATIO GROSS NON PERFORMING LOANS 900 2019 578 600 2020 445 438 399 378 366 1Q21 300 Disposals ~40+70mn 49 53 50 0 Gross Bad Loans Gross UTP Loans Gross Past Due Loans % on Loans (Credem) 2.1 1.5 1.5 1.5 1.3 1.2 0.2 0.2 0.2 % on Loans (Industry)* 3.7 2.5 3.2 2.6 0.2 0.2 GROS
Slide 18: NPL: Accounting Coverage
NPL: ACCOUNTING COVERAGE NET NON PERFORMING LOANS Significant reduction in Net NPL that fell by 4.4% in €/million 2019 2020 1Q21 0 the first quarter and stood at 402.2 million. Coverage ratio on NPL increased to almost 53%. Net Bad Loans 174.6 125.5 119.7 Coverage on Bad Loans grew by approximatel
Slide 19: Comprehensive Coverage
COMPREHENSIVE COVERAGE Gross Net Shortfall* Coverage NPL Coverage (€, million) (€, million) (€, million) incl. Shortfall Bad Loans 437.9 119.7 72.7% 64.4 87.4% +402.2 + Net NPL UTP Loans 365.9 241.4 34.0% 8.5 36.3% - Shortfall - 72.3 = NPL net of Shortfall 329.9 Total NPL (1Q21) 854.2 402.2 52.9% 72
Slide 20: Cost of Risk
COST OF RISK 70 59 55 60 52 50 42 44 39 36 38 40 31 32 34 47 45 24 24 30 39 41 24 20 34 30 19 27 20 5 10 21 15 13 17 15 5 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 1H20 9M20 2020 1Q21 Cost of risk Cost of risk (net of non-recurring events) COST OF RISK: HISTORY • 1Q21 Cost of Risk was
Slide 21: Assets & Liabilities
ASSETS & LIABILITIES ASSETS 29.299 29.641 8,000 2020 Loans to Customers 1Q21 increased, despite the usual 11,242 2,000 1Q seasonality 8,309 7,946 Securities portfolio reduced 6,758 5,314 5,055 after the consolidation of 3,516 6,000 some capital gains, leading to 2,424 an increase in Due from Ban
Slide 22: Liquidity Ratios
LIQUIDITY RATIOS NSFR LCR 300% 132% 270% 125% 126% 242% 240% 210% 210% 199% 180% 150% 120% 90% 2019 2020 1Q21E 2019 2020 1Q21 Both LCR e NSFR ratios were well above 1.30 1.25 1.20 LOAN TO DEPOSIT RATIO* minimum capital requirements, enabling the 1.15 Group to have a greater flexibility in setting
Slide 23: Consolidated Capital Ratios
CONSOLIDATED CAPITAL RATIOS CET1 RATIO CAPITAL AND CAPITAL RATIOS (CREDEMHOLDING)* Banking Group Credemholding 15.0% 2,40 €, million 2020 1Q2 1 2019 2020 1Q2 1 14.0% 14.0% 2,20 CET 1 2,580 2,594 2,039 2,340 2,352 14.0% 13.5% 2,00 Total Capital 2,932 2,949 2,339 2,746 2,761 1,80 Capital absorption fr
Slide 24: Disclaimer and Contacts
DISCLAIMER AND CONTACTS The manager responsible for preparing the company’s financial reports Mr. Paolo Tommasini of Credito Emiliano S.p.A., declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corres
Credito Emiliano S.p.A. (Credem) — Q1 2021 Earnings Presentation on 6ix