Bper Banca S.p.a. · MIL:BPE
Bper Banca — Q1 2020 Earnings Presentation
33 slides from Bper Banca's earnings presentation, May 6, 2020
Slide 1: 1Q20 consolidated results
1Q20 consolidated results Alessandro Vandelli - CEO 6 May 2020 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by “BPER Banca” solely for No part of the information contained herein may for any purpose information purposes, and only in order to present its strategies be reproduced or published as a whole or in part, nor may such and main financial figures. informati
Slide 3: Important methodological note
Important methodological note July 2019 saw completion of the acquisition of an additional 4Q19 and 1Q20 are comparable on a like-for-like basis. shareholding in Arca Holding, the acquisition of the minority Note that figures in the following pages may not add exactly due interests in Banco di Sarde
Slide 4: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 4
Slide 5: Health emergency and BPER Group
Health emergency and BPER Group Quick reaction to challanges in uncertain and tough environment • BPER Group immediately reacted to face this unprecedented event - the health, economic and social emergency caused by the spread of the Covid-19 virus – with the objective to offer numerous initiatives
Slide 6: Executive summary (1/2)
Executive summary (1/2) • 1Q20 results confirm the strategic value of the extraordinary operations completed during 2019. In fact, Good revenues despite a context characterized first by the economic slowdown, then by the effects of the health generation, emergency, BPER Group showed good ability to
Slide 7: Executive summary (2/2)
Executive summary (2/2) • Gross and net NPE stock decrease respectively by 1.1% and 2.8% vs Dec.’19 Asset quality • Default rate annualized down to 1.5% vs 1.7% in Dec.’19 improvements • NPE coverage up by 85 bps to 51.9% vs Dec.’19 confirmed • Gross NPE ratio stable at 11.1% vs Dec.’19 in the prese
Slide 8: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 8
Slide 9: Total funding
Total funding Balance sheet structure Stock down to 165.6 €/bn by 5.6% vs Dec.’19 manly due to indirect deposits decrease strongly affected by market effect related to financial markets turmoil following health emergency crisis Total Funding (€/mn; %) Total Funding, quarterly trend (€/bn) Data compa
Slide 10: Direct funding
Direct funding Balance sheet structure Direct funding at 57.1 €/bn down by 1.6% since Dec.’19 Direct Funding breakdown (€/mn; %) Direct Funding, quarterly trend (€/bn) Data comparable on a like-for-like basis* -1.6% €/mn Dec 19 Mar 20 Chg (%) 58.2 58.1 57.1 51.0 3.2 3.4 3.3 50.0 50.6 Direct customer
Slide 11: Indirect funding and Bancassurance
Indirect funding and Bancassurance Balance sheet structure Stock at 108.5 €/bn down by 7.6% vs Dec.’19. Net inflows in AuM and Bancassurance positive despite the turmoil on financial markets following health emergency Indirect Deposits and Bancassurance1 (€/mn; %) Indirect Deposits and Bancassurance
Slide 12: Customer loans
Customer loans Balance sheet structure Net customer loans down by 1.9% since Dec.’19 mainly due to corporate segment and financial companies, while retail sector recorded substantial stability. Good quality of performing loans book Customer loans breakdown (net & gross fig.; €/mn; %) Net customer lo
Slide 13: Non Performing Exposures (1/2)
Non Performing Exposures (1/2) Balance sheet structure Gross NPE stock down by 1.1% since Dec.’19. NPE coverage up by 85 bps in the quarter Gross NPE (€/mn; %) Gross NPE, quarterly trend (€/bn) Disposal of about 1 €/bn of bad loans Bad loans securitizations: to UnipolReC and “4Mori Sardegna” of 0.9
Slide 14: Non Performing Exposures (2/2)
Non Performing Exposures (2/2) Balance sheet structure Improvement of default rate at 1.5% (1.7% in 2019) and strong increase of average recovery rate of bad loans at 7.2% (6.3% in 2019) Default rate (%) Bad loans average recovery rate (%) (Bper Credit Management) 4.2% 7.2% 6.3% 5.3% 2.1% 4.3% 1.9%
Slide 15: Financial assets portfolio
Financial assets portfolio Balance sheet structure Financial assets portfolio at 19.9 €/bn up by 0.9 €/bn since Dec.’19 Financial Assets breakdown (€/mn; %) Italian Government bonds1 (€/mn) €/mn FVTPL FVOCI AC Total % on total 6,609 6,355 5,869 Bonds 354 6,294 12,325 18,973 95.4% 5,332 5,236 o.w. It
Slide 16: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 16
Slide 17: 1Q20 reclassified Profit & Loss
1Q20 reclassified Profit & Loss Profit and loss Good ability to generate revenues (operating profitability, even in the presence of a limited contribution from finance, almost reached 600 €/mn) despite a context characterized by the slowdown of the economy and then the effects of the health emergenc
Slide 18: Net Interest Income
Net Interest Income Profit and loss Stated NII up by 1.8% q/q and broadly stable on ordinary basis (-0.1% q/q) despite the difficult economic and financial environment Net Interest Income evolution (€/mn) Spread contribution (%) 1.94 1.90 1.89 1.86 1.87 -0.1% Ordinary NII1 260.9 257.6 304.7 299.5 29
Slide 19: Net Commissions
Net Commissions Profit and loss Net commissions down 3.0% q/q mainly due to credit cards/payments hit by prolonged lockdown (-13.4% q/q), but broadly stable vs 3Q19 Net Commissions breakdown (€/mn) Chg % Chg % • Good performance in the net 275.9 vs 4Q19 vs 3Q19 commissions of the AUM and AUC 268.3 2
Slide 20: Dividends and Trading income
Dividends and Trading income Profit and loss 1Q20 lower contribution of trading income at 5.6 €/mn vs 36.8 €/mn in 4Q19 strongly influenced by the turmoil on financial markets following the health emergency crisis Trading income evolution (€/mn) Non recurring charge due to the write-down of the 49.7
Slide 21: Operating costs
Operating costs Profit and loss Operating costs amount to 411.1 €/mn, down by 4.4% compared to the 4Q19 calculated net of non- recurring items Operating costs evolution (€/mn) -4.4% 337.7 344.7 389.3 429.8 411.1 44.5 41.0 40.2 33.2 35.4 129.3 114.5 118.2 90.9 96.2 230.9 256.0 255.6 213.6 213.1 1Q19
Slide 22: Provisions and other items
Provisions and other items Profit and loss Loan loss provisions in 1Q20 at 139.6 €/mn including additional provisions of approximately 50.0 €/mn as the first significant intervention following the worsening of the macroeconomic context caused by the health emergency. Provisions and other items (€/mn
Slide 23: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 23
Slide 24: Liquidity
Liquidity Liquidity and Capital adequacy Very solid liquidity position. In Mar.’20, total eligible assets increased at 21.2 €/bn. Unencumbered eligible assets and deposits with ECB at 11.4 €/bn Total eligible Assets evolution* (€/mn) Eligible Assets Pool Composition (%) +1.6% ABS, Estense 20,911 21,
Slide 25: Capital
Capital Liquidity and Capital adequacy Solid capital position confirmed with a CET1 Fully Loaded at 12.07% compared with 12.01% in Dec.’19. Common Equity Tier 1 Ratios (%) Fully Loaded Phased In +35 bps -31 bps +21 bps -15 bps -4 bps +547 bps 13.60% 12.01% 12.07% ECB Minimum Regulatory Requirement*
Slide 26: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 26
Slide 27: Final remarks
Final remarks QUICK REACTION to the health emergency granting OPERATIONAL STABILITY and full range of customer services ACCESSIBLE Ability to GENERATE REVENUES despite a difficult economic and financial environment and tight COST CONTROL PRUDENT APPROACH ON CREDIT (approx. 50.0 €/mn additional provi
Slide 28: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 28
Slide 29: Customer loans: Portfolio composition
Customer loans Annexes Portfolio composition Net customer loans breakdown by sectors Customer loans breakdown by geographical (€/mn; %) distribution1(%) % on Total Δ% Business sector Mar 20 Customer vs Dec 19 Loans Centre North Manufacturing 7,310 14.3% -1.4% Wholesale and retail services, 53.3% 15.
Slide 30: Asset quality breakdown
Asset quality Annexes Asset quality breakdown (excl. customer debt securities) Gross exposures (€/mn) Mar 19 Jun 19 Sep 19 Dec 19 Mar 20 Chg YTD Chg Y/Y % % % % % Abs. Chg (% ) Abs. Chg (% ) Non Performing Exposures (NPEs) 6,947 13.8% 6,937 13.7% 6,515 11.6% 6,123 11.1% 6,056 11.1% -67 -1.1% -891 -1
Slide 31: Financial Assets details
Financial Assets details Annexes Bond PTF by Geographical breakdown (%) Govies PTF Geographical breakdown (%) Other 24.5% France Other 4.9% Germany 1.5% 1.9% Spain 14.6% Netherlands Italy 4.1% 45.5% Germany 5.4% Spain 8.6% France Italy 11.9% 77.1% Bonds PTF Maturities1 (€/bn) 13.6 Italian Govies Mat
Slide 32: Bonds maturities and issues details
Bonds maturities and issues details Annexes Outstanding bonds (€/bn) Bonds issued (€/bn) Dec 18 Dec 19* Mar 20* 0.5 0.7 Wholesale bonds 2.5 3.2 3.2 0.5 0.1 o/w covered bonds 2.0 2.6 2.7 o/w subordinated bonds 0.5 0.5 0.5 0.6 0.5 0.5 Retail bonds 1.5 2.0 1.7 0.0 o/w subordinated bonds 0.3 0.4 0.4 Tot
Slide 33: Contacts for Investors and Financial Analysts
Contacts for Investors and Financial Analysts Gilberto Borghi Via San Carlo, 8/20 - 41121 Modena - Italy Head of Investor Relations +39 059 2022194 gilberto.borghi@bper.it Giulia Bruni Via San Carlo, 8/20 - 41121 Modena - Italy Investor Relations +39 059 2022528 giulia.bruni@bper.it Nicola Sponghi V