Banco Bpm Spa · MIL:BAMI
Banco Bpm Spa — Banco Popolare — Investor Presentation (January 2014)
86 slides from Banco Bpm Spa's investor presentation, January 2014
Slide 1: Group update for investors & analysts
Group update for investors & analysts Profile, strategy and financial performance January 2014 1
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: Agenda
Agenda Page • Group Overview 3 • Performance Highlights (9M 2013 results) 11 • Focus on Liquidity and Funding 24 • Focus on Lending and Asset Quality 30 • Capital Adequacy 48 Appendix - Appendix A: details on 9M 2013 results 51 - Appendix B: FY 2012 results 69 - Appendix C: miscellaneous 72 3
Slide 4: Banco Popolare Group vs. Italian peers - as at 30/09/2013
Banco Popolare Group vs. Italian peers - as at 30/09/2013 TOTAL ASSETS – (€/bn) BRANCHES 1000 883.8 10000 9,002 800 8000 639.8 6,339 600 6000 400 4000 2,405 1,962 206.9 1,734 200 130.0 125.0 2000 1,326 61.4 50.2 716 0 0 UCI ISP MPS BP UBI BPER BPM UCI ISP MPS BP UBI BPER BPM DIRECT CUSTOMER FUNDS –
Slide 5: Leading player in the Italian domestic market with a strong base of retail customers
Banco Popolare: leading player in the Italian domestic market with a strong base of retail customers with… Size: Banco Popolare is the 1st Italian popolare bank by Breakdown of customer loans (as of 30/09/2013) number of branches (1,962) and the 4th largest Italian bank by total assets (€130bn). By
Slide 6: …a low-risk business model
…a low-risk business model Data as of 30/09/2013 Weight of Financial Activities Direct Customer Funding breakdown Tangible asset ratio vs. peers Loan to Deposit ratio vs. peers vs. peers Consolidated accounting data. Includes Debts Tangible tot. assets/ Net Customer Loans / Direct Financial Activiti
Slide 7: Banco Popolare Group at a Glance
Banco Popolare Group at a Glance Liquidity and Funding Credit Quality Strong support from the Group retail networks, which provides After a decrease of €1.8bn registered in the gross flows of 83% of the total funding; hence limited reliance on the impaired loans in 2012 vs. 2011PF, the flows in the
Slide 8: Structural measures already completed by Banco Popolare
Structural measures already completed by Banco Popolare Capital strengthening through the €2bn capital increase finalised in February 2011 and the validation of the internal models for credit and market risks in Q2 2012. 1. Approval in Q4 2013 of the merger plan of Creberg and Banca Italease into Ba
Slide 9: Group structure: strong simplification through 'Large Banco'
Group structure: strong simplification through ‘Large Banco’ Large Banca Popolare Project: from 10 banking subsidiaries to 1 following an internal merger process and disposals Completed at the end of 2011, with benefits Before reaped starting from FY 2012 Today Separate legal entities Assets held fo
Slide 10: Reorganisation of the branch franchise and distribution model
Reorganisation of the branch franchise and distribution model • Introduction of the Hub&Spoke model in roughly 70% of the Group’s Reduction of the branch network cost to serve, thanks to increased • Transformation of more than 100 branches into “Corporate flexibility and branches” (“Filiali Imprese“
Slide 11: Agenda
Agenda Page • Group Overview 3 • Performance Highlights (9M 2013 results) 11 • Focus on Liquidity and Funding 24 • Focus on Lending and Asset Quality 30 • Capital Adequacy 48 Appendix - Appendix A: details on 9M 2013 results 51 - Appendix B: FY 2012 results 69 - Appendix C: miscellaneous 72 11
Slide 12: Benchmark of nine-month 2013 operating performance
Benchmark of nine-month 2013 operating performance Aggregate of NII + Net commissions + Net interest income (% chg. y/y) Net commissions (% chg. y/y) Other net operating income (% chg. y/y) Banco +5.6% +2.6% Peer Average Popolare Peer Average +1.6% Banco -6.6% Popolare Peer Average Banco -14.4% +11.
Slide 13: Performance highlights: nine months 2013
Banco Popolare Group Performance highlights: nine months 2013 Revenues (1): Operating costs: Normalised +2.6% (y/y) -4.2% (y/y) net income in particular: registered Net Interest Income (excl. PPA (2)): in 9M 2013 (3): Core banking +8.4% (y/y), thanks to the benefit of repricing Personnel expenses: -
Slide 14: Consolidated 9M 2013 income statement: annual change
Banco Popolare Group Consolidated 9M 2013 income statement: annual change INCLUDING PPA line-by-line EXCLUDING PPA line-by-line Comparison is not homogeneous due to new Reclassified income statement - €/m 9M 2013 9M 2012 Chg. 9M 2013 9M 2012 Chg. regulations (IS/CIV). See slides n. 16, 17, 18 and 67
Slide 15: 'Normalised' consolidated net income in 9M 2013
Banco Popolare Group ‘Normalised’ consolidated net income in 9M 2013 Normalisation of non-reccurring items €/m in 9M 2013: -29.8m +21.7 -51.5 +18.4 +165.4 -25.2 +6.6 +2.2 +154.0 +10.3 +6.0 PPA FVO Valutation of Buy-back AFS disposal Impairment of Write-downs Other* Consolidated Agos-Ducato Tier I an
Slide 16: Trend in core banking revenues
Banco Popolare Group Trend in core banking revenues Aggregate of Net Interest Income + Net Commissions + Other Net Operating Income €/m +2.6% 2,473.3 2,410.1 Other net operating income 41.2 136.0 Net Commissions 1,012.2 1,068.5 Net Interest Income Non- 1,356.7 1,267.3 homogeneous comparison* 9M 2012
Slide 17: Net interest income
Banco Popolare Group Net interest income Quarterly trend of Net Interest Income Wholesale funding cost €/m % change based on a homogeneous comparison, excluding the overdraft facility fee (i.e. ‘IS’)* +11.2% Average Spread 211bps 212bps -6.6% 202bps 1,356.7 1,267.3 432.3 426.5 408.5 18.1 17.4 17.1 €
Slide 18: Customer NII of the commercial network
Banco Popolare ‘Standalone’ Customer NII of the commercial network* Homogeneous comparison, excluding Customer NII of the commercial Customer spread: evolution ‘IS’ from the historical data. network: quarterly trend Total €/m customer spread 2.19% 2.03% 2.02% 1.93% 1.82% 1.93% 1.99% 416 Asset spread
Slide 19: Net commissions
Banco Popolare Group Net commissions Analysis of Net commissions Quarterly evolution €/m €/m Quarterly average: 9M 2013 9M 2012 Chg. % 356.2 337.4 Mgmt. brokerage and advisory services 501.1 504.2 -0.6% 378.3 365.5 Management of c/a and customer relations 415.4 348.5 19.2% 352.2 341.3 Payment and co
Slide 20: Net Financial Result
Banco Popolare Group Net Financial Result Group Net Financial Result €/m FVO impact (pre-tax) NFR excluding FVO Normalisation of non-reccurring items: cumulated FVO : €180m -36.9% 268.3 +9.8 -37.6 -31.3 209.2 425.3 268.3 Aletti 70% 9M 12 9M 13 148 -32.4 ACCOUNTING Write-downs on Capital gain on Capi
Slide 21: Operating costs: personnel expenses
Banco Popolare Group Operating costs: personnel expenses Personnel expenses Quarterly evolution €/m -4.4% €/m 1,084.2 364.5 365.6 55,1 354.1 349.5 339.6 346.9 1,036.0 310.8 491 30/09/12 30/09/13 Headcount FTE (avg.) 18,771 -404 18,367 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 o/w: ex Italease FTE (a
Slide 22: Headcount reduction and targets for the period 2013-2015
Banco Popolare Group Headcount reduction and targets for the period 2013-2015 FTE (1) -1,025 -1,003 +26 -1,051 (2) 18,765 -472 18,293 18,319 -251 -100 Reduction -470 -250 2010 and -330 2011 17,268 The 358 incentivised exits (through the use of the Solidarity Fund), along with expected turnover and h
Slide 23: Operating costs: non-personnel expenses
Banco Popolare Group Operating costs: non-personnel expenses Total non-personnel expenses Quarterly trend (1) (1) €/m Other admin. expenses Amortisation & Depr. €/m Other admin. expenses Amortisation & Depr. -3.9% 655.3 629.6 222 212 221 210 212 210 98.4 208 96.8 -4.3% 35 30 33 32 31 62 34 556.9 532
Slide 24: Agenda
Agenda Page • Group Overview 3 • Performance Highlights (9M 2013 results) 11 • Focus on Liquidity and Funding 24 • Focus on Lending and Asset Quality 30 • Capital Adequacy 48 Appendix - Appendix A: details on 9M 2013 results 51 - Appendix B: FY 2012 results 69 - Appendix C: miscellaneous 72 24
Slide 25: Direct customer funds
Banco Popolare Group Direct customer funds Total direct customer funds o/w: ‘Corporate’ segment €/bn -4.9% (period-end data) -3.3% % chg. y/y 96.6 94.5 94.9 1.1 -13.0% 91.8 -53.0% -27.9% 8.3 0.7 0.6 9.0 13.1 -18.0% 10.8 0.5 +29.7% -13.1% 8.7 47.6 -0.8% 46.3 45.5 45.1 -5.3% 7.2 6.3 y/y 8.0 6.7 5.9 39
Slide 26: Satisfactory liquidity position
Banco Popolare Group Satisfactory liquidity position Total liquid assets (securities) Details of assets in the “ECB Pooling” as at 30/09/2013 €/bn >€13bn Italian €32.3bn €32.3bn Government bonds €28.0bn 100% Further 28% State-guaranteed bonds 18.8 18,8 18.8 unencumbered assets eligible 14.5 Securiti
Slide 27: Maturities profile and funding coverage
Banco Popolare Group Maturities profile and funding coverage Wholesale funding profile – including State-guaranteed bonds Comments €/bn BP Standalone maturities Italease maturities Wholesale maturities of the remaining part of of which: €3.1bn 2013 and 2014 can be managed comfortably 5.0 Italian wit
Slide 28: Treasury securities portfolio: evolution
Banco Popolare Group Treasury securities portfolio: evolution Total Government bond portfolio, Total Government bond portfolio: with details on Italian bonds (nominal amounts) accounting classification €/m 14,711 13,031 246 12,547 100% 272 100% 100% 309 * 0.2% 0.1% 27.2% 14,465 82.1% 78.8% 12,238 12
Slide 29: Treasury securities portfolio: analysis as of 30/09/2013
Banco Popolare Group Treasury securities portfolio: analysis as of 30/09/2013 TOTAL TREASURY SECURITIES PORTFOLIO (NOMINAL VALUES) €/m Accounting classification COUNTRIES NOMINAL % COMP HFT AFS HTM ITALY 14,465 98.3% 1,627 8,838 4,000 The Italian government bonds, which account for SPAIN 200 1.4% -
Slide 30: Agenda
Agenda Page • Group Overview 3 • Performance Highlights (9M 2013 results) 11 • Focus on Liquidity and Funding 24 • Focus on Lending and Asset Quality 30 • Capital Adequacy 48 Appendix - Appendix A: details on 9M2013 results 51 - Appendix B: FY 2012 results 69 - Appendix C: miscellaneous 72 30
Slide 31: Customer loans: focus on Retail and SMEs
Banco Popolare Group Customer loans: focus on Retail and SMEs Gross customer loans Comments €/bn (period-end data) • Gross customer loans decrease by 1.5% q/q and by 4.1% y/y. Excluding -4.1% Italease (in run-off), the quarterly decrease is reduced to -1,4%, while the annual decrease is -3.6%. -1.5%
Slide 32: Breakdown of customer loans per type of borrower
Total Standalone, including loans and Banco Popolare ‘Standalone’ commitments. Breakdown of customer loans per type of borrower Perimeter: BP Standalone - Gross customer loans including commitments (management accounting data). Data as of 30/09/2013 TOTAL GROSS CUSTOMER LOANS (including commitments)
Slide 33: Asset quality: cost of credit risk
Banco Popolare Group Asset quality: cost of credit risk Loan Loss Provisions and Cost of Credit Risk Quarterly evolution of LLPs €/m P&L Loan Loss Provisions €/m 283 net of 683 extraordinary 689.0 elements 600.9 55.3 110 30.1 211 204 229 212 248 570.8 633.7 186 573 47 10 13 7 17 201 197 239 194 201
Slide 34: Historic cost of credit risk: evolution
Banco Popolare Group Historic cost of credit risk: evolution Stated cost of credit risk Calculated as Net LLPs/Gross customer loans Extraordinary Q4 2008 clean-up 1.40% 1.33% (accounting) Acquisition of BSGSP Merger with Merger with 0.98% BPN 0.92% BPI 0.82% 0.58% 0.75% 0.78% 0.54% 0.45% 0.50% 0.50%
Slide 35: Recent legislative measures impacting credit risk taxation
Banco Popolare Group Recent legislative measures impacting credit risk taxation Following the approval, on 27 December 2013, of the “Stability Law”, net adjustments on loans to customers have become deductible also under IRAP (in addition to the deductibility that was previously limited to IRES). Gr
Slide 36: Asset quality: Evolution of Group Gross Impaired Loans
Banco Popolare Group Asset quality: Evolution of Group Gross Impaired Loans Gross Non-Performing loans Gross Watchlist loans (Sofferenze) (Incagli) €/m €/m TOTAL GROSS IMPAIRED LOANS +18.6% -0.2% (Totale deteriorati) +8.2% 8,371 -3.9% 7,737 €/m 7,057 +7.3% 5,672 5,889 5,662 +3.2% 31/12/12 30/06/13 3
Slide 37: Progressive deceleration of the increase of impaired loans
Banco Popolare Group Progressive deceleration of the increase of impaired loans Change in the stock of gross impaired loans: 2013 vs. 2012 €/m Quarterly change Change in the nine-month period Of which €535m due to the first classification within the impaired loan category of Past-Due loans between 9
Slide 38: Gross flows of impaired loans
Banco Popolare ‘Standalone’ Gross flows of impaired loans (Totale deteriorati) N.B. Gross flows consider both entries from performing loans and further deteriorating flows within the different impaired loans categories registered in the quarter (if beyond one month). Not netted of any exits from the
Slide 39: Coverage of Group impaired loans
Banco Popolare Group Coverage of Group impaired loans Share of loans assisted by Evolution of impaired loan coverage real guarantees 95.0% at >115% at NPL 31/12/12 30/06/13 30/09/13 31/12/10 Fair Value • NPL (Sofferenze) coverage: - Total coverage (including real guarantees) 95.6% 94.6% 94.8% Share
Slide 40: Focus on coverage and guarantees of NPLs and Watchlist loans
Banco Popolare Group Focus on coverage and guarantees of NPLs and Watchlist loans NPLs assisted by real guarantees Coverage of total (72.6% of total NPLs) NPLs 105.7% 104.2% High quality guarantees: 93.4% of (>130% at fair value) (>130% at fair value) real guarantees are represented by real 53.8% 40
Slide 41: Asset quality: Evolution of Group Net Impaired Loans
Banco Popolare Group Asset quality: Evolution of Group Net Impaired Loans Net Non-Performing loans Net Watchlist loans (Sofferenze) (Incagli) TOTAL NET IMPAIRED LOANS €/m €/m +4.1% +23.6% (Totale deteriorati) +9.8% -2.5% €/m 4,834 5,307 +9.4% 4,295 4,724 4,537 4,844 +3.7% 31/12/2012 30/06/2013 30/09
Slide 42: Asset quality benchmark: trend in gross impaired loans
Banco Popolare Group and ‘Standalone’ Asset quality benchmark: trend in gross impaired loans Trend in gross impaired loans vs. peers Trend in gross impaired loans vs. peers 30 September 2013 vs. 30 June 2013(i) 30 September 2013 vs. 31 December 2012(i) 58.5% 20.5% Peer Average: +6.3% Peer Average: +
Slide 43: Benchmark: weight of gross impaired loans on total loans
Banco Popolare Group and ‘Standalone’ Benchmark: weight of gross impaired loans on total loans Weight of gross impaired loans on total loans Evolution of the weight of gross impaired loans vs. peers as at 30 September 2013(i) vs. peers 30 Sep. 2013 vs. 31 Dec. 2012(i) Chg. in p.p. Peer Average: 16.8
Slide 44: Healthy coverage levels, also in comparison with domestic peers
Banco Popolare Group and ‘Standalone’ Healthy coverage levels, also in comparison with domestic peers Coverage ratios exclude both real estate and personal guarantees. Total impaired loan coverage ratio vs. domestic Peers(i) NPL coverage ratio vs. domestic Peers(i) Data as at 30/09/2013 Data as at 3
Slide 45: Loan portfolio: highly guaranteed
Banco Popolare Group and ‘Standalone’ Loan portfolio: highly guaranteed Benchmark share of loans assisted by real guarantees as at 31/12/2012 Share on total net customer loans Share on total net impaired customer loans Further strengthened Further strengthened vs. 79% as at vs. 71% as at 83% 31/12/2
Slide 46: Italease: progress in the downsizing
Italease Italease: progress in the downsizing Trend of Italease gross customer loans €/bn Breakdown by category Coverage evolution of NPLs and Watchlist -41.5% It is reminded that the value of real 12.5 -6.5% guarantees 100% 107% 106%106 106% 107% includes an 9.9 -2.3% % average haircut of roughly 2
Slide 47: Cost of credit risk: moderate impact from Italease
Banco Popolare Group – Focus on Italease Cost of credit risk: moderate impact from Italease Gross doubtful loans Composition of NPLs Coverage on total gross loans Impaired Loans Loan Loss Provisions including as at 30/09/2013 in 9M 2013 Real Guarantees 18.6% (€/bn) (€/m) (€/m) 17.7% Fair value* 15.6
Slide 48: Agenda
Agenda Page • Group Overview 3 • Performance Highlights (9M 2013 results) 11 • Focus on Liquidity and Funding 24 • Focus on Lending and Asset Quality 30 • Capital Adequacy 48 Appendix - Appendix A: details on 9M 2013 results 51 - Appendix B: FY 2012 results 69 - Appendix C: miscellaneous 72 48
Slide 49: Evolution of Capital ratios
Banco Popolare Group Evolution of Capital ratios Banco Popolare Group Capital Ratios (Basel 2.5): Core Tier 1 at 10.3% Including the Lower Tier 2 bond, issued in early November • According to the rules issued on for a total amount of €800m, the Total capital ratio 19/12/2013 (Circular 285) by the in
Slide 50: Impact of the merger plan of Credito Bergamasco and Italease on CET1 ratio
Banco Popolare Group Impact of the merger plan of Credito Bergamasco and Italease on CET1 ratio On 26 November 2013, the BoD of Banco Popolare approved the merger plan of the subsidiaries Credito Bergamasco1 and Banca Italease into the Banco Popolare holding company. These actions bring the rational
Slide 51: Appendix A: Details on 9M 2013 results
Appendix A: Details on 9M 2013 results 51
Slide 52: Reclassified consolidated balance sheet
Appendix A: Banco Popolare Group Reclassified consolidated balance sheet Reclassified consolidated balance sheet Reclassified assets 30/09/2013 31/12/2012 Changes (euro thousand) Cash and cash equivalents 543,944 672,164 (128,220) (19.1%) Financial assets and hedging derivatives 25,187,211 24,201,86
Slide 53: Consolidated 9M 2013 income statement: quarterly change
Appendix A: Banco Popolare Group Consolidated 9M 2013 income statement: quarterly change INCLUDING PPA line-by-line EXCLUDING PPA line-by-line Reclassified income statement - €/m Q3 2013 Q2 2013 Q1 2013 Q3 2013 Q2 2013 Q1 2013 Net interest income 426.5 432.3 408.5 426.4 432.4 408.8 Extraordinary Inc
Slide 54: Consolidated income statement: quarterly trend
Appendix A: Banco Popolare Group Consolidated income statement: quarterly trend Reclassified income statement - €/m Q3 13 Q2 13 Q1 13 Q4 12 Q3 12 Q2 12 Q1 12 Net interest income 426.5 432.3 408.5 402.7 441.7 444.8 470.2 Income (loss) from investments in associates carried at equity (5.8) (33.1) 4.6
Slide 55: Extraordinary items on the P&L in 9M 2013
Appendix A: Banco Popolare Group Extraordinary items on the P&L in 9M 2013 €/m ELEMENTS OF THE NORMALISATION 9M 2013 Q3 2013 Q2 2013 Q1 2013 Income statement item gross net gross net gross net gross net - BUY-BACK TIER I and TIER II 37.6 25.2 0.0 0.0 37.6 25.2 0.0 0.0 Net financial result - AFS DISP
Slide 56: 9M 2013 'normalized' income statement
Appendix A: Banco Popolare Group 9M 2013 ‘normalized’ income statement Accounting Valuation/Impair Normalized PPA Buy-Back Write-downs on Accounting data Fair Value ment on Income Reclassified income statement - €/m (ex-BPI + Tier I and Government AFS Disposal Other data excluding Option goodwill an
Slide 57: Consolidated 9M 2013 income statement: breakdown
Appendix A: Banco Popolare Group Consolidated 9M 2013 income statement: breakdown 9M 2013 9M 2013 Banco Popolare Banco Reclassified income statement - €/m Group Popolare PPA ex-BPI Italease PPA Italease (PPA line-by- (Standalone) line) Net interest income 1,267.3 1,234.2 2.9 33.5 (3.3) +€30.2m Incom
Slide 58: Italease: breakdown of 9M 2013 results
Appendix A: Italease Italease: breakdown of 9M 2013 results Itale as e Re s idual Re le as e Reclassified income statement - €/m 9M 13 9M 12 9M 13 9M 12 Net interest income 30.7 32.6 2.8 (0.5) Income (loss) from investments in associates carried at equity (4.6) (3.8) - - Net interest, dividend and s
Slide 59: Italease: quarterly trend of the income statement
Contribution of Italease to the Group’s P&L, excluding the PPA effects Appendix A: Italease Italease: quarterly trend of the income statement Reclassified income statement - €/m Q3 13 Q2 13 Q1 13 Q4 12 Q3 12 Q2 12 Q1 12 Net interest income 10.6 12.5 10.4 11.7 11.4 11.6 9.1 Income (loss) from investm
Slide 60: Indirect funding
Appendix A: Banco Popolare Group Indirect funding Breakdown of Assets under Management Indirect funding trend as at 30/09/2013 €/m 61,832 -2.2% 60,462 34% 35,140 32,020 43% 26,692 +6.6% 28,442 31/12/2012 2012 30/09/2013 2013 23% AuM Assets under administration Mutual funds and SICAV Managed accounts
Slide 61: Asset quality: Group impaired loans
Appendix A: Banco Popolare Group Asset quality: Group impaired loans Gross impaired loans Net impaired loans €/m €/m 16,893 17,436 16,248 945 724 962 2,457 13,017 2,543 12,550 2,557 11,900 892 671 878 5,889 5,662 2,201 2,108 5,672 2,176 4,844 4,724 4,537 7,057 7,737 8,371 4,295 4,834 5,307 31/12/201
Slide 62: Asset quality: focus on BP 'Standalone'
Appendix A: Banco Popolare ‘Standalone’ Asset quality: focus on BP ‘Standalone’ Gross impaired loans BP ‘Standalone’ Net impaired loans BP ‘Standalone’ €/m €/m +11.3% +14.6% +5.4% % chg. vs. +6.9% % chg. vs. 13,470 31/12/12 12,784 31/12/12 12,097 +32.2% 865 -2.6% 10,070 654 1,282 +1.3% 9,416 803 887
Slide 63: Italease: consolidated impaired loans
Appendix A: Italease Italease: consolidated impaired loans Gross impaired loans Net impaired loans €/m €/m 4,151 4,109 3,966 75 70 3,134 (75%) 81 3,114 (73%) 1,291 (71%) 2,946 1,292 1,175 71 (92%) 64 (92%) (92%) 75 1,143 1,164 1,042 1,106 755 1,238 (69%) (74%) (76%) 986 906 598 1,955 1,547 1,641 (82
Slide 64: 'Release' Portfolio: analysis as at 30/09/2013
Appendix A: Italease ‘Release’ Portfolio: analysis as at 30/09/2013 Loan portfolio classification Loan portfolio by product category €/m Accounting Coverage Retail Corporate Coverage with real mortgages 90% of mortgage 20% mortgages guarantees Gross Net 0.4% loans are 18.4% 3,246 guaranteed by 105%
Slide 65: 'Italease Residual' Portfolio: analysis as at 30/09/2013
Appendix A: Italease ‘Italease Residual’ Portfolio: analysis as at 30/09/2013 Loan portfolio classification Loan portfolio by product category €/m Retail Corporate Coverage, Accounting 11% Loan Loss reserves mortgages mortgages Gross 7.4% 95% of mortgage Net 3,949 9.7% Coverage with real 2% Other lo
Slide 66: Asset quality profile of Italease leasing portfolio vs. system
Appendix A: Italease Asset quality profile of Italease leasing portfolio vs. system Evolution of Leasing Impaired Loans (1): benchmark Y/Y Evolution of Total impaired loans YtD Evolution of Total impaired loans +23% +7% -1% -0.4% Italease leasing Average Italian leasing Italease leasing Average Ital
Slide 67: Regulatory changes which impacted on NII
Appendix A: Banco Popolare Group Regulatory changes which impacted on NII Among the various regulatory changes included in the so-called ‘Salva Italia’ decree (D.Lgs. 201/2011 converted into law n. 214/2011) there are the following new rules: in case of current account overdraft, banks can charge, i
Slide 68: Agreement reached with Crédit Agricole on Agos Ducato
Appendix A: Banco Popolare Group Agreement reached with Crédit Agricole on Agos Ducato On 8 May 2013, Banco Popolare reached an agreement with the majority shareholder Crédit Agricole, aiming at turning back to profitability the Agos Ducato joint venture owned 61% by Crédit Agricole and 39% by Banco
Slide 69: Appendix B: FY 2012 results
Appendix B: FY 2012 results 69
Slide 70: Major achievements in 2012
Appendix B: Banco Popolare Group Major achievements in 2012 Increase of 300bps in the accounting CT1 ratio, Already compliant with Basle 3 targets: despite the negative impact of -45bps in Q4 2012 LCR >100% and NSFR >100% in relation to non-recurring items CT1 Basle 2.5 CT1 EBA compliant Total liqui
Slide 71: Benchmark of FY 2012 operating performance
Appendix B: Banco Popolare Group Benchmark of FY 2012 operating performance Aggregate of NII + Net commissions + Net interest income (% chg. y/y) Net commissions (% chg. y/y) Other net operating income (% chg. y/y) Banco +7.3% Peer Average Popolare +2.9% -2.5% Peer Average Peer Average -5.6% Banco B
Slide 72: Appendix C: Miscellaneous
Appendix C: Miscellaneous 72
Slide 73: Overview of the main companies
Appendix C: Banco Popolare Group Overview of the main companies As at 30/09/2013 BANCO POPOLARE GROUP Product & service Leasing Core Banking Italy companies, Foreign operations (~82% of total assets) (In run-off ) (~2% of total assets) JV and others (~7% of total assets) (~9% of total assets) Banco
Slide 74: Group structure as at 30/09/2013
Appendix C: Banco Popolare Group To be incorporated into BP Holding company Group structure as at 30/09/2013 Holding Company and integrated Territorial Divisions Domestic Banking Subsidiaries** CREBERG Division (239) Italian network bank (Number of branches in brackets *) Private & Investment Banca
Slide 75: Shareholder structure
Appendix C: Banco Popolare Group Shareholder structure Retail / Non-institutional investors hold more than 60% of Banco Popolare’s share capital. Most of the retail investors are simultaneously customers of Banco Popolare Group. Institutional investors’ stakes in Banco Popolare’s share capital are h
Slide 76: Banco Popolare ratings
Appendix C: Banco Popolare Group Banco Popolare ratings BANCO POPOLARE ITALY Long-term Long-term Agency Short-term Other ratings Short-term (outlook) (outlook) Viability: bbb- BBB BBB+ Fitch Ratings* F3 F2 (negative) (negative) Support: 2 Moody's Investors Ba3 Baa2 NP BFSR: E+ P-2 Service** (negativ
Slide 77: Non-performing (crediti deteriorati) loan definitions (1/4)
Wide NPL definition, to be used, going forward, as the English term for Appendix C: Banco Popolare Group total impaired loans (crediti deteriorati). Non-performing (crediti deteriorati) loan definitions (1/4) Non-performing loans (credito “deteriorato”) refer to customer loans which, in compliance w
Slide 78: Non-performing (crediti deteriorati) loan definitions (2/4)
Wide NPL definition, to be used, going forward, as the English term for Appendix C: Banco Popolare Group total impaired loans (crediti deteriorati). Non-performing (crediti deteriorati) loan definitions (2/4) Substandard loans (Incagli): (continues) b) exposures other than those in the previous poin
Slide 79: Non-performing (crediti deteriorati) loan definitions (3/4)
Wide NPL definition, to be used, going forward, as the English term for Appendix C: Banco Popolare Group total impaired loans (crediti deteriorati). Non-performing (crediti deteriorati) loan definitions (3/4) Restructured exposures (Crediti ristrutturati): On- and off-balance sheet exposures for whi
Slide 80: Non-performing (crediti deteriorati) loan definitions (4/4)
Wide NPL definition, to be used, going forward, as the English term for Appendix C: Banco Popolare Group total impaired loans (crediti deteriorati). Non-performing (crediti deteriorati) loan definitions (4/4) Past due/overdrawn exposures (Esposizioni scadute e/o sconfinanti): (continues) For custome
Slide 81: Focus on loan loss practice
Appendix C: Banco Popolare ‘Standalone’ Focus on loan loss practice The expected losses written off (“Write-offs”): • When a debtor is subject to a bankruptcy procedure, Banco Popolare cancel the portion of loan considered unrecoverable and, contemporaneously, a loan loss is debited through Profit &
Slide 82: Financial sustainability indicators: international comparison
Appendix C Financial sustainability indicators: international comparison Aggregate debt in the main European countries, Household financial assets of the main European USA & Japan (as a % of GDP; 2012) countries (as a % of disposable income; 2012) Source: Italian Banking Association Source: Italian
Slide 83: Key positive factors for Italian banks
Appendix C Key positive factors for Italian banks Source: Italian Banking Association 83
Slide 84: Business development opportunities in the Italian banking sector
Appendix C: Business development opportunities in the Italian banking sector Italy enjoys ample room for growth in key financial products and services Current accounts: Credit cards: Mutual funds: Current accounts/inhabitant Credit cards/inhabitant Stock/GDP (%) 1.2 1.0 23.9 -76% -103% -7pp 0.7 16.9
Slide 85: Pipeline of IR events in 2013
2014 planning in progress. Pipeline of IR events in 2013 Date Place Events 17 January 2013 Milan UBS Italian Financial Services Conference 2013 (investor meetings) 15 March 2013 Verona Press release on FY 2012 results 15 March 2013 Verona Banco Popolare: Conference call on FY 2012 results 19 March 2
Slide 86: Contacts for Investors and Financial Analysts
Contacts for Investors and Financial Analysts INVESTOR RELATIONS Tom Lucassen, Head of Investor Relations tel.: +39-045-867.5537 Elena Segura tel.: +39-045-867.5484 Fabio Pelati tel.: +39-0371-580.105 Silvia Leoni tel.: +39-045-867.5613 Carlo Di Pierro tel.: +39-0371-580.303 Head Office, Piazza Noga
Banco Popolare — Investor Presentation (January 2014) on 6ix