Bff Bank Spa · MIL:BFF
Bff Bank Spa — BFF Banking Group — Debt Investor Presentation (November 2021)
30 slides from Bff Bank Spa's debt investor presentation, November 2021
Slide 1: BFF Banking Group Fixed Income and 9M 2021 results presentation
BFF Banking Group Fixed Income and 9M 2021 results presentation November 2021 bff.com
Slide 2: Disclaimer
Disclaimer This presentation may contain written and oral Presentation are provided as at the date of any offer or solicitation to purchase or "forward-looking statements", which includes hereof and are subject to change without subscribe for securities in the United States or all statements that do
Slide 3: Agenda
1. BFF at glance 2. Credit fundamentals like no other 3. Appendix 9M 2021 results bff.com
Slide 4: A bank like no other
A bank like no other® BFF Who Leader in specialty finance niches in Europe ▪ Low risk ▪ High operational efficiency How ▪ Best practices as public company ▪ Honest, transparent and valuing people Total Capital Adj. RoTE Adj. Net Profit CET1 ratio ratio 43%(2) €79.4m 18.5% 22.9% Data as of 30th Septe
Slide 5: A rock-solid business
A rock-solid business No credit losses on P.A. Highly capital generative Sizable Embedded value factoring Zero 43% on Public sector Adj. Return on Tangible Equity(1) c. €790m €5.7m(3) >€815m > 1.9x CET1 cumulated last 14 years, 0.5% of Dividends since 2007(2) cumulated PBT Adjusted Net Profit(4) Pot
Slide 6: A leading European B2B Specialty Finance
A leading European B2B Specialty Finance A specialised & trusted service provider within a bank Specialised vs. Universal Broad addressable market vs. Saturation RoE >> CoE vs. ROE ≤ CoE Agile vs. Crystallised Leader vs. One of the many Capital generating vs. Capital absorbing Entrepreneurial vs. Bu
Slide 7: 12 Countries 850+ Employees
Our reach: a pan-European footprint 12 Countries 850+ Employees > 30% Outside Italy Branches & subsidiaries Freedom of service (“FOS”) On-line deposits through a third party platform bff.com 6
Slide 8: Leader in defensible and profitable niches
Leader in defensible and profitable niches FY20pf revenues and % on total Positioning Overview of the main products and services NON-RECOURSE ▪ Purchase, management and collection of receivables towards the PA and the Leader in FACTORING €148m Europe NHS vs. P.A. 49% ▪ Presence: CREDIT ▪ Credit mana
Slide 9: A B2B solution provider for complex & key processes to high quality customers
A B2B solution provider for complex & key processes to high quality customers CLIENTS WHAT WE OFFER WHERE • Public sector suppliers 1) Non-recourse factoring FACTORING & • Large multinationals 2) Lending (Central-Eastern Europe only) LENDING • Hospitals & municipalities 3) Credit management • Domest
Slide 10: Agenda
1. BFF at glance 2. Credit fundamentals like no other 3. Appendix 9M 2021 results bff.com
Slide 11: Credit fundamentals like no other
Credit fundamentals like no other Fortress Balance 1 Best-in-class asset 2 Rock-solid capital 3 Dividend policy 4 High capital 5 Sheet quality position protective of generation enhanced creditors by synergies ▪ €9bn of float from ▪ Negligible credit risk ▪ Strong capital position ▪ Dividend policy w
Slide 12: Diversified, ample and cheap funding
1 Diversified, ample and cheap funding DEPObank liquidity funds BFF core business, maintaining access to diversified credit markets. No encumbered assets which may be used as back up in case of higher volume or shocks. ▪ Diversified mix of funding to finance receivables vs. PA with high asset yield
Slide 13: Fortress balance sheet
1 Fortress balance sheet Leverage NSFR(1) 189.4% ▪ Strong LCR at 276.4% and NSFR at 189.4%, positively impacted LCR 276.4% ratio 3.8% (1) Fully phased-in from 2Q21 by the new regulation. Leverage ratio at 3.8% from 30/06/2021. Breakdown of 9M21 BS (€m) ▪ Govies portfolio at €5.6bn, €0.47bn higher th
Slide 14: Balance sheet integration ongoing allowing for funding synergies
1 Balance sheet integration ongoing allowing for funding synergies ▪A Further reduction of liquidity in ECB (cash down by €0.4bn QoQ) and of deposits from Transaction Services (down by €0.7bn): B▪ purchased Government Bonds for c. €0.5bn (+9% QoQ) to increase HTC portfolio yield and duration C▪ repl
Slide 15: Best-in-class asset quality also post DEPObank acquisition
2 Best-in-class asset quality also post DEPObank acquisition Net Non-Performing Loans evolution (€m) •A Zero bps Cost of Risk in 9M21, due to portfolio contraction NPL ratio excl. Italian 0.1% 0.1% 0.1% 0.2% D and IFRS 9 release. No impact on CET1 resulting from calendar Municipalities provisioning
Slide 16: Rock-solid capital position, with wide capital buffer above our 15% TCR target
3 Rock-solid capital position, with wide capital buffer above our 15% TCR target Exclude ▪ One of the first Italian banks to pay the residual 2019 & 2020 RWAs 2,203 DEPObank 1,616 2,228 dividends in October 2021 (€165m) RWAs 57% 39% 44% density(1) ▪ Total Capital ratio at 22.9% and CET1 ratio at 18.
Slide 17: Strong embedded value in the business not entirely recognised in capital ratios
4 Strong embedded value in the business not entirely recognised in capital ratios BFF's strong capital position, accrued dividends and off-balance sheet LPI stock result in over €790m of “embedded” value, almost twice the group CET1 ratio CET1 combined entity at 15% Total Capital target(1) €236m €41
Slide 18: High capital generation enhanced by synergies
5 High capital generation enhanced by synergies 1 ▪ Locked-in target synergies from 31/12/2021: ▪1 Funding synergies reached 2023 target on a run-rate Funding synergies ~40-50 basis starting from 1st July 2021 2 ▪2 OPEX: already locked-in initiatives for €20m synergies from 31/12/2021 on a run-rate
Slide 19: Demonstrated access to institutional market across instruments, ratings and placements
Demonstrated access to institutional market across instruments, ratings and placements ▪ Successfully proven access to capital markets also on Capital markets activity of BFF (excluding BFF Polska Group) different maturities with €1.25bn of total bonds Amount Amount Issuance issued, of which €181.8m
Slide 20: Best rated of Italian LSIs, higher than most SIs
Best rated of Italian LSIs, higher than most SIs Moodys Long-term Issuer Rating Ba2, Stable outlook Long-term Bank Deposits Rating Baa2, Stable outlook Short-term Bank Deposits Rating P-2 Baseline Credit Assessment (BCA) Ba2 Date of last update: 09/06/2021. Key considerations ▪ In April 2021 Moody’s
Slide 21: Credit fundamentals like no other
Credit fundamentals like no other 1 Fortress Balance Sheet 2 Best-in-Class Asset Quality 3 Rock-solid Capital Position 4 Dividend policy protective of creditors 5 High capital generation enhanced by synergies bff.com 20
Slide 22: Agenda
1. BFF at glance 2. Credit fundamentals like no other 3. Appendix 9M 2021 results bff.com
Slide 23: Glossary
Glossary AIF Alternative Investment Funds H Half-year ALM Assets & Liabilities management HC Headcount AuC Assets under custody HTC Held-To-Collect AuD Assets under depositary KPIs Key performance indicators Avg. Average LPIs Late payment interests BoI Bank of Italy M2M Mark-to-market BS Balance She
Slide 24: 9M19-9M21 Adjusted & Reported values
9M19-9M21 Adjusted & Reported values Adjusted values - €m 9M19 9M20 9M21 Net Interest Income 151.1 162.0 131.3 Net Fee and Commission Income 62.9 63.3 70.5 Other Income 14.4 6.0 11.1 Net Banking Income 228.4 231.3 212.9 Other Operating Income (Expenses) 13.0 12.1 20.5 Total Net Revenues 241.4 243.3
Slide 25: 9M21 summary P&L
9M21 summary P&L 9M21 F&L SS PAYM. CC ADJUSTED Adjustments REPORTED €m Interest Income 134.2 8.3 5.4 12.1 159.9 (2.8) 157.1 Interest Expenses (36.8) (1.8) 9.9 (28.6) (1.0) (29.6) Net Interest Income 97.4 6.6 5.4 22.0 131.3 (3.9) 127.5 Net Fee and Commission Income 4.6 34.0 33.1 (1.2) 70.5 (13.5) 57.
Slide 26: 9M20 summary P&L
9M20 summary P&L 9M20 F&L SS PAYM. CC ADJUSTED Adjustments REPORTED €m Interest Income 156.6 10.6 1.3 40.8 209.2 (38.5) 170.7 Interest Expenses (52.8) (2.7) 0.0 8.2 (47.2) 10.7 (36.6) Net Interest Income 103.8 7.9 1.3 49.0 162.0 (27.8) 134.1 Net Fee and Commission Income 3.2 31.1 29.6 (0.5) 63.3 (60
Slide 27: 9M19 summary P&L
9M19 summary P&L 9M19 F&L SS PAYM. CC ADJUSTED Adjustments REPORTED €m Interest Income 159.2 21.9 1.2 36.2 218.4 (54.5) 163.9 Interest Expenses (56.6) (11.0) (0.0) 0.4 (67.3) 32.3 (35.0) Net Interest Income 102.5 10.8 1.2 36.6 151.1 (22.2) 128.9 Net Fee and Commission Income 3.2 32.2 28.7 (1.2) 62.9
Slide 28: Summary reported Balance Sheet
Summary reported Balance Sheet BFF stand-alone BFF & DEPObank €m 30/9/2019 30/9/2020 31/12/2020 30/09/2021 Cash and cash Balances 26.0 74.2 173.3 363.0 Financial assets measured at fair value through profit or loss - - - 42.5 a) financial assets held for trading - - - 8.8 b) financial assets designa
Slide 29: Asset quality
Asset quality 30/09/2021 €/000 Gross Provisions Net Total Non-Performing Loans 96,068 (16,651) 79,416 Total Unlikely to Pay 17,355 (4,898) 12,457 Total Past due 1,307 (25) 1,282 Total impaired loans 114,729 (21,574) 93,156 31/12/2020 €/000 Gross Provisions Net Total Non-Performing Loans 81,582 (14,7
Slide 30: bff.com
2 BFF bff.com
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