Slide 1: CREDEM Group 2004 Results
CREDEM CREDEM Group 2004 Results April 2005 Investor Relations - CREDEM FY 2004 Results 1
Slide 2: The CREDEM Group
The CREDEM Group CREDEM today Italy's 14th largest banking group Italy's 12th largest asset manager 700,000 customers and over €64 Total Business with customers billion in total business Loans Over 500 branches and business AUC 19% centres; 5,000 employees 35% Direct 19 companies operating in all ar
Slide 3: Credem stock
CREDEM Credem stock 1997 1998 1999 2000 2001 2002 2003 2004 No. Shares (/000) 225,839 253,408 265,464 270,679 272,537 273,309 274,350 275,417 Net equity per share 2.07 2.34 2.27 2.55 2.86 3.08 3.23 3.46 Earnings per share 0.22 0.26 0.17 0.51 0.39 0.40 0.35 0.47 ROE 11.6% 13.5% 8.5% 21.3% 14.6% 13.5%
Slide 4: 2004 Results Appendices
CREDEM 2004 Results Appendices Investor Relations - CREDEM FY 2004 Results 4
Slide 5: Key figures: Profitability improving
CREDEM Key figures Profitability improving Total income Operating costs +5.3% +5.0% 832.3 547.7 790.7 521.7 1,000 600 +5.2% 208.2 222.8 +7.0% 483.4 508.5 500 300 +3.6% +5.4% 313.5 324.9 307.3 323.8 0 0 2003 2004 2003 2004 Net interest income Non-interest income Payroll Administrative expenses Cost t
Slide 6: Key figures: Equity growing stronger
Total business with customers CREDEM Key figures +5.4% Equity growing stronger Total direct loans Funding from customers (e xc luding re po a nd inst it ut iona l c ust ome rs) +5.7% 12.3 +4.0% 50.8 11.8 48.0 15 0.6 0.6 60 -3.5% +6.3% 10 21.6 23.0 40 11.2 11.6 +4.4% +5.0% mkt 14.8 15.9 +7.2% 5 20 11
Slide 7: Key indicators: Profitability improving
Profitability improving CREDEM Key indicators Good balance between growth, asset quality and equity 2003 2004 Market share funding 1,54% 1,53% growth Market share loans 1,00% 0,98% ROE 11,1% 14,2% Net interest income/Total income 38,9% 38,9% profitability Non-interest income /Total income 61,1% 61,1
Slide 8: Total income
CREDEM Total income Revenues growing (+5.3%) Good year for net fee & commission income 2003 2004 % yoy (€/mn) p ro -f o rma Net interest income 307.3 323.8 5.4% Commercial spread 2.79% 2.73% -6bp Net interest income improved by 5.4%. Net fee and commission income 342.8 376.2 9.7% . Of which: managem
Slide 9: From total income to net profit
CREDEM From total income to net profit (€/mn) 2003 2004 % yoy p ro -f o rma Total income 790.7 832.3 5.3% Gross Operating Profit +5.8% Payroll -313.5 -324.9 3.6% Administrative expenses -208.2 -222.8 7.0% Operating costs -521.7 -547.7 5.0% Net operating profit +10.6% Gross Operating Profit 269.0 284
Slide 10: Income generation
CREDEM Income generation contributo (€/mn) 2003 2004% al 12/04 Total income 790.7 832.3 . Captive 704.5 749.3 90.0% . Non-captive 86.2 83.0 10.0% Operating costs -521.7 -547.7 The group's diversified activities and focus . Captive -450.0 -483.8 88.3% . Non-captive -71.7 -63.9 11.7% on core businesse
Slide 11: Distribution and resources
CREDEM Distribution and resources No. of Credem Group branches and market share Distribution structure 2003 2004 Credembanca and others 440 441 B.ca Euromobiliare 22 22 Bank branches 462 463 1 65 25 0.1 % Business centres 38 39 12 1.1 % 0.7 % 0.5% CredemPoints 27 24 128 5 4.0 0.4 % Banca Euro financ
Slide 12: Inflows and AUM
Inflows and AUM CREDEM Funding and inflows doing well (€/mn) Breakdown of customer funding 2003 2004 % yoy Deposits 6,991 7,922 13.3% Bonds 4,601 3,984 -13.4% Tot. direct (excluding repos) 11,592 11,906 2.7% The group has reached its targets for net inflows with Portfolio management 2,229 3,245 45.6
Slide 13: Loans: Swift progress for core segments
Swift progress for core segments CREDEM Loans Long-term loans heading up Cash loans by type (net of repos) Loans up by 4.5% (+6% in terms of average liquid 11.0 11.6 +4.5% capital). Outstanding performance by core segments: 12 0.9 0.8 •Retail +20% +12.9% 10 •Small business +25% 3.2 3.9 where progres
Slide 14: Loans: Risks under control
CREDEM Loans Risks under control Gross customer loans (€/mn) Loan growth is developing according to plan: Breakdown by business unit 2003 2004 % yoy CORPORATE 5,738 4,947 -13.8% •on a selective basis to Corporate Customers, in . % of total 50.8 42.0 light of the goal of boosting mid-corporate and SM
Slide 15: Other risks
CREDEM Other risks Market risk (€/mn) 2003 2004 V.A.R. banking and trading book (99% . 10 days) Credembanca . Average 2.8 1.7 . Maximum 4.8 3.7 Market risk management mostly pertains to Credembanca and Abaxbank. Abaxbank . Average 2.3 1.1 . Maximum 3.9 2.0 Overall risks are modest and fairly stable
Slide 16: 2004 Results Appendices
CREDEM 2004 Results Appendices Investor Relations - CREDEM FY 2004 Results 16
Slide 17: Capital structure
CREDEM Capital structure Agreement More than between 226 2,900 shareholders investors Main investors %sul c.s. Maramotti family 35.5% Pictet Cie 4.9% Savioli heirs 2.9% Finc orrad 2.1% Allianz Subalpina 1.7% 72.4% 27.6% CREDEMHOLDING 73.5% 26.5% CREDEM Investor Relations - CREDEM FY 2004 Results 17
Slide 18: Structure and businesses
CREDEM Structure and businesses CREDEM Commercial Banking Wealth Management Investment Banking Other 100% 98.5% 50% * 99.8% 100% Life insurance 100% 100% 50% * 59.5% 100% FIDUCIARIA Spa Insurance 100% * n/a 100% * 100% 100% 100% 100% 100% * non-consolidated Investor Relations - CREDEM FY 2004 Result