Credito Emiliano S.p.a. · MIL:CE
Credito Emiliano — FY2024 Earnings Presentation
35 slides from Credito Emiliano's earnings presentation, Mar 23, 2025
Slide 1: Group Results FY24
yr S= GROUP RESULTS FY24
Slide 2: Agenda
AGENDA 01 Results 02 Growth, Investments and Sustainability 03 Positioning 2
Slide 3: FY24: Highlights
FY24: HIGHLIGHTS €620 MLN 18.5% 16.1% PROFITABILITY NET PROFIT ROTE ROE Gross NPL Ratio Net NPL 2.6% Ratio 2.3% FY24 0.7% 1.8% ASSET QUALITY 15.53% Includes the proposal of a CET1 7.52% dividend Ratio distribution 8.01% CAPITAL SOUNDNESS of €0.75 per share CET1 Ratio calculated at Credemholding leve
Slide 4: FY24: Highlights
FY24: HIGHLIGHTS +1.8% +5.6% +2.4% VOLUMES YoY YoY YoY Loans -1.6% Direct funding YoY +4.7 FY24 €BN PRODUCTION Customer funding Net inflows ~1.6 MLN +5.5% VS FY23 CUSTOMERS Total customers Loans and funding: ABI Monthly Outlook January 2025 Credem Group net inflows include AUM, AUC, direct and insur
Slide 5: Business Diversification
BUSINESS DIVERSIFICATION Operating Income 472.1 475.5 460.6 500.9 525.3 504.4 480.0 522.7 Core Operating Income** 422.0 460.4 457.7 491.0 480.6 471.9 468.2 480.6 €/million 0.3% 0.6% 2.3% 1.9% 2.1% 6.2% 2.0% 3.9% 8.6% 2.9% 0.0% 4.4% 4.6% 0.4% 1.9% 50% 57% 62% 60% 54% 56% 58% 52% 40% 40% 38% 38% 37% 3
Slide 6: Contribution to Consolidated Net Profit
CONTRIBUTION TO CONSOLIDATED NET PROFIT Commercial banking Credem Banca €334.8 mln Private Banking Credem Euromobiliare €78.7 mln Private Banking Extended Banking Services, Consumer Credit & Technology Credem Factor Avvera Credemtel €80.7 mln Credem Leasing MGT Wealth Management Euromobiliare SGR €1
Slide 7: Reclassified Income Statement
RECLASSIFIED INCOME STATEMENT Δvs ∆ vs €/million 3Q24 4Q24 FY23 FY24 3Q24 FY23 • Total revenues up 6.5% vs FY23 thanks to the excellent Net Interest Income 277.4 271.9 -2.0% 1091.3 1119.5 2.6% performance of the NII (+2,6% vs FY23) and the growth of Non Interest Margin 202.6 250.8 23.8% 817.8 912.8
Slide 8: Net Interest Income
NET INTEREST INCOME Net Interest Income (€/mln) 303 NII reached €272 million in 4Q24, slightly down on the previous quarter due 284 286 285 277 to the further reduction in rates 270 272 235 As a result, the customer spread decreased for Credem (-7 bps) and for the Industry (-10 bps vs 3Q24). Both th
Slide 9: Securities Portfolio
SECURITIES PORTFOLIO Securities portfolio breakdown (€/mln, %) Italian government bond (€/bn) 5.2 12,996 11,860 12,468 13,044 12,508 11,965 11,609 13,229 4.7 4.8 4.7 4.2 4.0 4.0 3.8 Ita Govies FY24 HTC 5.1 HTCS 0.1 38% 35% 38% 36% 32% 33% 33% FVTPL 0.0 40% Total 5.2 4% 4% 4% 4% 4% 4% 4% 1Q23 1H23 9M
Slide 10: Non Interest Margin
NON INTEREST MARGIN Total* (€/mln) 237.3 206.0 176.5 198.0 239.7 219.7 202.6 250.8 Performance Fees 9.6 20.7 32.3 40.5 1.3 9.4 10.0 9.8 13.8 2.7 23.0 23.0 11.4 1.8 Income from Financial 53.7 0.2 52.3 51.7 53.6 56.1 52.7 52.8 Activities 54.1 23.9 Banking Fees 21.7 24.1 14.0 23.4 18.4 22.2 19.8 Insura
Slide 11: Operating Costs and D&A
OPERATING COSTS AND D&A Operating costs (€/mln) Employees 6,608 6,616 6,628 6,614 207 206 188 231 221 223 202 257 6,195 6,201 6,219 6,068 6,140 5,899 5,763 5,609 80 64 70 73 63 65 67 62 177 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 144 142 167 152 150 127 135 Financial Advisors 1Q2
Slide 12: Loans to Customers
LOANS TO CUSTOMERS Loans to customers (€/bn) Other Loans 9.8 9.7 9.6 9.3 9.4 9.8 9.8 9.6 Residential Mortgage 10.4 10.6 10.6 10.7 10.8 11.1 10.1 10.5 Leasing 3.2 3.3 3.3 3.3 3.3 3.3 3.4 3.2 3.7 Consumer Finance 2.8 3.0 3.1 3.2 3.3 3.5 3.6 Short-Term Loans 7.9 8.3 7.8 8.9 7.7 8.1 7.6 8.8 1Q23 1H23 9M
Slide 13: Group Customers Funding: Net Inflows Breakdown
GROUP CUSTOMERS FUNDING: NET INFLOWS BREAKDOWN AUC Direct Deposits AUM + Insurance Total NetInflows Total Net Inflows Total Total Net Inflowsnet Net Inflows netofof Corporate Corporate 7,062 4,924 4,996 4,421 4,692 4,337 4,842 3,992 4,675 4,464 3,326 3,699 3,856 2,144 1,939 2,074 1,472 1,302 1,275 1
Slide 14: Deposits, AUM and Insurance
DEPOSITS, AUM AND INSURANCE Total customer funding Direct deposits & retail bonds** €/mln FY23 FY24 Sight / Saving Depo. 36,017 38,794 +5.6% YoY Industry Credem Retail Bonds & Other Deposits* 1,146 455 +167% Total Direct Funding 37,163 39,249 Insurance Reserves 8,173 9,396 +2.4% YoY Portfolio Manage
Slide 15: Asset Quality: Gross NPL Ratio and Cost of Risk
ASSET QUALITY: GROSS NPL RATIO AND COST OF RISK Gross Non Performing Loans (€/mln,%) Gross NPL Ratio Disposal 3.0% ~40 mn Disposal 2.6% 2022 ~49 mn 2.3% Gross non-performing 2023 321 373 359 363 1.8% loans remained low at 298 267 FY24 €669 million, confirming the absence of significant 42 46 38 NPL
Slide 16: NPL: Coverage
NPL: COVERAGE NPL (€/mln) Gross Net Coverage Coverage ratio Bad Loans 267.1 47.3 82.3% UTP Loans 363.2 196.5 45.9% Past Due 38.3 23.6 38.4% 60.0% Total NPL 668.6 267.5 60.0% 49.2% 46.6% 39.9% + Net NPL +267.5 - (Shortfall + Addendum + Calendar) -1.1 Credem ITA EU** EU NPL Net of Shortfall 266.3 dive
Slide 17: Bonds Issuances and Maturities
BONDS ISSUANCES AND MATURITIES Recent issues (€/mln) Maturities (€/mln) 0 100 200 300 400 500 600 €/mln Retail 500+ Jan-24 Covered Bond 750+ 24 Istituzionale Covered Bond 500 Sep-23 Social SP 100 Social Jul-23 Social SP Retail 2023 Green Jul-23 Social SP Retail Senior Preferred 600 May-23 Green SNP
Slide 18: Liquidity
LIQUIDITY NSFR LCR 232% 137% 136% 132% 167% 168% FY22 FY23 FY24E FY22 FY23 FY24 Loan to Deposit Ratio* 0.95 0.96 0.92 • Liquidity ratios remained sound and well above minimum capital requirements, enabling the Group to have a greater flexibility in setting future funding strategies FY22 FY23 FY24 *
Slide 19: Consolidated Capital Ratios
CONSOLIDATED CAPITAL RATIOS Fully phased figures Fully phased figures Credem Group Credemholding €, million FY23 FY24 FY23 FY24 CET 1 3,267 3,660 3,021 3,391 Total Capital 3,696 4,093 3,601 3,979 Capital absorption from: 1,686 1,748 1,697 1,746 Credit and Counterparty 1,495 1,532 1,493 1,530 Market
Slide 20: Agenda
AGENDA 01 Results 02 Growth, Investments and Sustainability 03 Positioning 20
Slide 21: Growth - Revenues
GROWTH - REVENUES Total Revenues 2.0 €/bn Revenue Growth 2021 base 100 Sustained revenue growth 143 152 100 111 1.3 €/bn + 52% Over 52% growth in the last 4 years, confirming the effectiveness of the FY21 FY22 FY23 FY24 Group's organic expansion strategy... of which NII Growth 2021 base 100 220 226
Slide 22: Growth - Volumes
GROWTH - VOLUMES 36.4 €/bn Continuous organic expansion 33.2 €/bn of volumes : CUSTOMER LOANS During the last three years, in clear contrast to the Italian banking industry, the Group has managed to develop loans 39.3 €/bn at a rapid pace, with an expansion of the 34.6 €/bn aggregate of approximatel
Slide 23: Return on Equity
RETURN ON EQUITY The Group maintained a high profitability, also during the financial crisis, without performing any capital increase and constantly paying dividends, while continuously strengthening its capital position through organic capital generation Return on Equity Italian Banks Credem EU Ban
Slide 24: Group Commitment Over Time in IT Development and Projects
GROUP COMMITMENT OVER TIME IN IT DEVELOPMENT AND PROJECTS investments in IT projects equal to 9.5% of total revenues Over 600 people from the Average annual figure 2021 to 2024 Group involved Average annual figure from 2021 to 2024 254 €/mln IT capex 385 € /mln IT expenses From 2021 to 2024 for the
Slide 25: ICT Expenses and Investments – 2024 Focus
ICT EXPENSES AND INVESTMENTS – 2024 FOCUS IT Platform Running costs associated with the Group's IT architecture and investments in transversal ICT structures aimed at: CAPEX IT Platform • support the Group's "road map to Cloud“ • seize opportunities in Data Governance and AI 73 €/mln 44% Service Mod
Slide 26: ESG Commitment Confirmed, With a Strong Focus on Climate
ESG COMMITMENT CONFIRMED, WITH A STRONG FOCUS ON CLIMATE SHORT-TERM ESG BUSINESS TARGETS Targets 2025 COMMERCIAL BANKING ESG loans provided to companies, annual gross volumes € 200 mln Residential mortgages (gross) in virtual energy classes A and B on total of new mortgages disbursed 19% Leasing (Pr
Slide 27: Net Zero Banking Alliance
NET ZERO BANKING ALLIANCE The Net Zero targets on proprietary securities and loans portfolio were published in December 2024 well in advance of the timeline envisaged by the Alliance (July 2025): Baseline Targets Targets Oil & Gas and Power Generation sectors represent % reduction of WACI1 in the 20
Slide 28: Agenda
AGENDA 01 Results 02 Growth, Investments and Sustainability 03 Positioning 28
Slide 29: Excellent Positioning to Face Next Challenges
EXCELLENT POSITIONING TO FACE NEXT CHALLENGES Excellent Federation of Revenue Soundness Asset quality Business diversification Profit contribution* % Wealth Management Cost of risk revenues** / operating income 23% +39 bps 54% 30% 13% 13% 17% +12 bps First in Europe for the Commercial Banking lowest
Slide 30: Attachments
ATTACHMENTS 30
Slide 31: Reclassified Consolidated Income Statement by Business Line
RECLASSIFIED CONSOLIDATED INCOME STATEMENT BY BUSINESS LINE Extended Banking Commercial Private Asset Wealth Consolidation FY24 Banking Banking Services, Consumer BANKING Management Insurance Management adjustments Consolidated Credit & Technology Net Interest Income 855.0 96.7 138.2 1,089.9 16.7 7.
Slide 32: Volumes Reclassified by Business Line
VOLUMES RECLASSIFIED BY BY BUSINESS LINE Extended Banking Commercial Private Asset Wealth Consolidation FY24 Banking Banking Services, Consumer BANKING Management Insurance Management adjustments Consolidated Credit & Technology CUSTOMER LOANS 34,997.8 706.0 8,007.4 43,711.2 40.3 40.3 -7,388.4 36,36
Slide 33: Assets & Liabilities
ASSETS & LIABILITIES Assets (€/mln) 36,364 34,674 9M24 FY24 9,888 9,701 7,826 6,372 5,404 4,933 5,237 3,833 114 83 Fin. Assets through Fin. Assets HTCS Fin. Assets HTC Fin. Assets (insurance Due from banks Loans to customers P&L companies) Liabilities (€/mln) 39,005 37,422 Wholesale Retail 9M24 FY24
Slide 34: Liquidity Reserves
LIQUIDITY RESERVES Liquidity Reserves (€/bn) • The total value of the Group's Liquidity Reserves stood at €17 billion, equal to 25% 17.0 of Total Assets Total 16.1 • The value of Cash and deposits with Central Banks decreased to €4.3 billion Other ECB eligible 5.9 unencumbered assets 4.5 • ECB eligi
Slide 35: Disclaimer and Contacts
DISCLAIMER AND CONTACTS The manager responsible for preparing the company’s financial reports Mr. Giuseppe Malato 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) — FY2024 Earnings Presentation on 6ix