Credito Emiliano S.p.a. · MIL:CE

Credito Emiliano — Q3 2010 Earnings Presentation

24 slides from Credito Emiliano's earnings presentation, 2010

  1. Slide 1: 2010 Third-Quarter Group Results

    2010 Third-Quarter Group Results

  2. Slide 2: Agenda

    Agenda • 9M09 Results • BP 2010-2012 targets CRESCERE • Group structure PER CONTINUARE AD ECCELLERE 2

  3. Slide 3: Executive Summary

    Executive Summary 3Q10 Highlights Asset under Management volumes keep on increasing for the seventh quarter in a row since the end of 2008 (+1.7% QoQ and +17.6% YoY) Lending volumes are up €1.1 Billions compared to 3Q09 (+6.3% YoY) while almost stable QoQ (- 0.3% QoQ) due to the seasonality impact o

  4. Slide 4: Income Statements

    Income Statements EURm 9M09 9M10 % yoy 2Q10 3Q10 % qoq Total Income 711.1 697.2 -2.0 231.1 236.2 2.2 Operating Costs -500.1 -484.3 -3.2 -161.6 -163.8 1.4 Gross Operating Profit 211.0 212.9 0.9 69.5 72.4 4.2 Amortization and Depreciation -22.2 -21.5 -3.2 -7.1 -7.6 7.0 Net Operating Profit 188.8 191.4

  5. Slide 5: Revenues and Costs

    Revenues and Costs Total Revenues 9M10 Net Interest Income up by 4.7% YoY, while 750 711.1 697.2 250 231.1 236.2 quarter result has been negatively impacted by: 600 200 higher cost of funding 327.2 342.5 111.6 121.5 450 150 hedging of the interest rate risk on securities’ 300 100 investments (positi

  6. Slide 6: Spread and Loan Book

    Spread and Loan Book Spread on clientele The spread on deposits have benefited by the (Credem SpA management accounting) 6,0 recent Euribor growth. Lending spread, instead, is penalized by customers’ high credit quality and 5,0 4,80 mortgage loans significant incidence 3,95 4,0 3,60 3,06 3,30 3,20 3

  7. Slide 7: Deposits & Assets Under Management

    Deposits & Assets Under Management Eum 2007 2008 2009 1Q10 2Q10 3Q10 AuM keeps on increasing for the seventh quarter in a row (+ €290 Millions QoQ Sight Deposits 9,520 10,444 11,443 10,247 11,538 11,826 and + €5,396 Millions since the end of 2008) Time deposits 1,785 3,275 2,637 1,842 1,177 945 Sigh

  8. Slide 8: Commissions

    Commissions Non Interest Income Breakdown 70 60 59.1 Volumes’ growth still sustains asset management 53.5 51.2 fees but the seasonality effect has negatively 50 39.3 38.8 37.8 impacted brokerage and banking service fees in 40 3Q10 EURm 30 20 19.6 17.8 Trading recovery has driven Non Interest Income

  9. Slide 9: Credit Quality (1/2)

    Credit Quality (1/2) Gross Impaired Loans 450 424.6 400.1 400 363.8 371.0 9M09 350 317.8 292.7 276.6 2009 300 253.9 261.9 EURm 250 1Q10 200 165.6 1H10 150 86.4 106.3 113.3 99.6 96.9 100 9M10 50 0 Gross NPLs Gross Watchlist Loans Gross Past Due Loans % on Total Loans (Credem) 1.9 2.0 2.1 2.2 2.3 1.0

  10. Slide 10: Credit Quality (2/2)

    Credit Quality (2/2) Cost of Risk (bps) 80 Cost of risk is down to 29 bps (-4 bps QoQ and 71 -29bps YoY) 60 59 58 62 58 47 Not including non recurrent items LLPs are still 40 40 down to 40bps (-7bps QoQ and -18bps YoY) 33 showing an overall positive trend on impaired 29 20 loans generation 0 1Q09 1H

  11. Slide 11: Assets & Liabilities

    Assets & Liabilities Assets (EURm) 8,000 7,191 Financial Assets almost stable after the 6,1516,191 financial operations put in place in 1Q10 6,000 5,842 Financial Assets Available for Sale is mainly 3,758 made of Italian government bonds with an 4,000 average duration of almost one year and an 1,582

  12. Slide 12: Capital Ratios

    Capital Ratios Capital Ratios 2,500 11.1% 11.5% 11.2% 11.6% 2,000 8.1% 8.4% 8.5% 8.8% 1,500 EURm 1,941 1,942 1,915 1,891 1,000 1,456 1,413 1,419 1,430 541 595 542 591 500 - 2009 1Q10 1H10 9M10 Tier I Capital Tier Total Capital Excess Capital Capital ratios still among the highest of the banking sect

  13. Slide 13: Distribution Network

    Distribution Network Number of branches and 2007 2008 2009 3Q10 branches market share per region Credem Branches 479 563 552 544 B.ca Euromobiliare 22 27 23 19 Branches Total Branches 501 590 575 563 Corporate Centres 42 44 43 42 Credem Points 29 36 33 34 B.ca Euromobiliare 22 22 17 19 Fin. Stores C

  14. Slide 14: Agenda

    Agenda • 9M09 Results • BP 2010-2012 targets CRESCERE • Group structure PER CONTINUARE AD ECCELLERE 14

  15. Slide 15: Expected scenario

    Expected scenario Assumptions 2008 2009 2010E 2011E 2012E MSCI Europe (y/y growth) -45.5% 25%* FTSE Italy all-share index (y/y growth) -48.8% 19.7%* GDP UEM 0.6% -4.0% 0.7% 1.2% 1.6% GDP Italy -1.0% -4.9% 0.5% 1.2% 1.5% Deposits from customers and bonds (y/y 13.8% 11.0% 4.2% 4.1% 4.1% growth) – Tota

  16. Slide 16: Business Plan Guidelines

    Business Plan Guidelines MARKET SHARES INCREASE BY ANTICIPATING INDUSTRY TRENDS HIGHER COST EFFICIENCY EXCELLENCE IN RISK CONTROL AND CAPITAL ADEQUACY Value generation by growing more than the industry, while maintaining a strong cost control 16

  17. Slide 17: Volumes growth and Total Income

    Volumes growth and Total Income Expected volumes growth The main target is to gain market shares both on 2010-2012 CAGR on Loans and AUM (Credem vs. Industry) AuM and on Lending: 12% 9.8% 10% 8.8% AuM: from 15.1 EURbn (at the end of 2009) 8% 6.6% to 19.9 EURbn (at the end of 2012E) 6% 5.1% 4% Loans:

  18. Slide 18: Operating Costs and D&A

    Operating Costs and D&A Expected Operating Costs evolution 708 Expected Inflation rate 2010-2012: 1.84% 750 692 30 36 CAGR 2010-2012: 6.3% 600 237 244 CAGR 2010-2012: 0.9% 450 EURm 300 425 428 CAGR 2010-2012: 0.3% 150 0 2009 2012E Payroll costs Other Op. expenses D&A Cost Income ratio (including D&A

  19. Slide 19: Excellence in risk control and capital adequacy

    Excellence in risk control and capital adequacy Expected Cost of risk reduction 0.62% Gradual decrease of cost of credit, in line with 0.60% historical trends, while increasing customers’ 0.44% loans from 17.5 EURbn to 22.6 EURbn 0.45% 0.30% 0.15% 0.00% 2009 2012E Loans 17.5 EURbn 22.6 EURbn Capital

  20. Slide 20: 2010-2012 Business Plan CAGR

    2010-2012 Business Plan CAGR EURm 2009 2012E CAGR 10-12 Net Interest Income 431 613 12.5% Total Income is expected to grow 7.2% CAGR Net Fees 339 445 9.5% over the period, mostly dragged by Net Fees and Trading 127 57 -23.5% Net Interest Income Other 52 55 2.0% Non Interest Income 518 557 2.4% Costs

  21. Slide 21: Agenda

    Agenda • 9M09 Results • BP 2010-2012 targets CRESCERE • Group structure PER CONTINUARE AD ECCELLERE 21

  22. Slide 22: Shareholders’ base

    Shareholders’ base Pact among More than 2,900 other 230 shareholders shareholders Cofimar S.r.l. 20.0% Max Mara Fashion Group S.r.l. 8.1% Max Mara Finance S.r.l. 6.4% Others 39.7% 74.2% 25.8% Credemholding Free Float 76.9% 23.1% Source: Internal data 22

  23. Slide 23: A Complete Group

    A Complete Group Commercial banking Wealth Management Investment Banking Other 100% 99.0% 100% 100% 100% 100% 100% 50%* 100% 100% 100% 100% 100% 100% 23

  24. Slide 24: Disclaimer and Contacts

    Disclaimer and Contacts Pursuant to Article 154-bis, section 2 of the “Consolidated Law on Financial Intermediation” dated Feb 24, 1998, the Financial Manager Paolo Tommasini, declares that the accounting information contained in this document correspond to documentary records, ledgers and accountin

Credito Emiliano S.p.A. (Credem) — Q3 2010 Earnings Presentation on 6ix