Banca Sistema S.p.A. · MIL:BST

Banca Sistema — H1 2019 Earnings Presentation

15 slides from Banca Sistema's earnings presentation, Jul 31, 2019

  1. Slide 1: 1H 2019 Results

    BANCA SISTEMA SPECIALTY FINANCE 1H 2019 RESULTS 31 July 2019

  2. Slide 2: 1H 2019 Results at a Glance

    1H 2019 Results at a Glance  Factoring Turnover +25% y/y equal to €1.4bn Commercial  Tax receivables represent 27% of 1H 2019 factoring outstanding performance  CQS/CQP outstanding reached €751m, +32% y/y  Interest Income equal to €34.5m, +6% y/y  Cost of funding lower y/y at 0.8%  Total Incom

  3. Slide 3: Core business assets outstanding is growing

    Core business assets outstanding is growing Factoring outstanding CQ Loans outstanding €m €m +17% y/y Of which 24% under +32% y/y Legal action +5% q/q +6% q/q 1,914 708 751 1,820 1,640 571 30.06.2018 31.03.2019 30.06.2019 30.06.2018 31.03.2019 30.06.2019 Outstanding breakdown (30.06.2019) Outstandin

  4. Slide 4: 1H 2019 – Balance Sheet

    1H 2019 – Balance Sheet Figures in millions of Euro Change in % 31.12.2018 31.03.2019 30.06.2019 31.12.2018 vs  Govies’ portfolio (€790m) down 30.06.2019 q/q, with an average residual ASSETS duration of 18 months (21 months Fina ncia l as s ets a t fa ir va lue through P&L [Held to Sell] - 262 - nm

  5. Slide 5: Interest Income growth driven by higher assets

    Interest Income growth driven by higher assets  1H 2019 Interest Income is up 9% y/y, Total Interest Income Adjusted Income margin1 growth is driven by higher assets, €m Factoring, CQ and Govies’ ptf 4.4% +9% 1Q 2019  Factoring represents 70% of Total y/y 48.6 44.7 Interest Income 5.2% 4.7% 14.6 1

  6. Slide 6: Total Income supported by business growth

    Total Income supported by business growth Total Income  1H 2019 Total Income is up 8% y/y, €m growth is mainly driven by higher Net 44.1 40.9 +8% 1.4 Interest Income (NII) and higher Net 0.9 y/y 8.2 Commissions 7.4  NII y/y increase is driven by Interest Income increase that has more than compensa

  7. Slide 7: Operating costs up y/y for business growth and Atlantide

    Operating costs up y/y for business growth and Atlantide Administrative Expenses, Net Provisions for Operating Costs Personnel Expenses risk, Servicing Costs, Other and D&A €m FTEs (#) 176 209 +14% of which #24 coming from the y/y 23.6 merger, in 2Q 2019, with 20.7 Atlantide (representing €0.4m in t

  8. Slide 8: Lower funding cost y/y

    Lower funding cost y/y Total Funding breakdown Total Funding breakdown • Cost of funding slightly Funding Cost1 lower y/y 0.9% 0.9% 0.8% 0.8% • Wholesale q/q decrease is 59% 59% due mainly to Repos Wholesale 51% 43% related to the decrease Funding q/q of Govies’s ptf. While 41% Retail 25% 25% ECB fi

  9. Slide 9: Asset Quality driven by factoring business

    Asset Quality driven by factoring business Gross Non Performing Exposures Net Non Performing Exposures €m 225.2 230.3 236.3 198.0 202.7 196.0 55.9 54.1 36.9 34.5 57.5 39.0 98.2 113.5 77.9 86.5 100.8 87.2 80.5 76.2 79.1 74.6 67.4 68.7 31.12.2018 31.03.2019 30.06.2019 31.12.2018 31.03.2019 30.06.2019

  10. Slide 10: Regulatory Capital well above minimun requirements

    Regulatory Capital well above minimun requirements CET1 and Total Capital(1) RWA breakdown €m CET1 Total Capital €m Operational Risk & Market Risk (2) Credit Risk TC Ratio 13.2% 13.7% 15.8% Lower CQ CET1 Ratio 10.6% 10.8% RWA 12.4% 1,410.3 193.3 1,400.7 184.5 148.3 151.7 2019 SREP requirements: 1,23

  11. Slide 11: Annexes

    Annexes

  12. Slide 12: Factoring Turnover

    Factoring Turnover Factoring Turnover €m +25% 1,415 Turnover generated by agreements with Italian Retail banks: 1,136 42% in 1H 2019 883 1H 2017 1H 2018 1H 2019 1H 2019 Factoring Turnover breakdown By Type By Year of Customer’s Customer Concentration Acquisition Tax receivables Before 2016 TOP 10 16

  13. Slide 13: 1H 2019 – Income Statement

    1H 2019 – Income Statement Figures in millions of Euro 1H 19 vs 1H 18 1H 2018 1Q 2018 2Q 2018 1H 2019 1Q 2019 2Q 2019 change in % Interest income 44.7 20.0 24.7 48.6 21.6 26.9 9% Interest expenses (12.1) (6.4) (5.8) (14.1) (7.0) (7.1) 17% Net interest income 32.6 13.7 18.9 34.5 14.7 19.8 6% Commissi

  14. Slide 14: 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

  15. Slide 15: Head of Investor Relations

    Carlo Di Pierro Head of Investor Relations carlo.dipierro@bancasistema.it +39 02 80280358 +39 3355288794

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