Bper Banca S.p.a. · MIL:BPE
Bper Banca — Q3 2024 Earnings Presentation
32 slides from Bper Banca's earnings presentation, Nov 7, 2024
Slide 1: 3Q24 Results Presentation
3Q24 Results Presentation MILAN | NOVEMBER 7TH | 2024
Slide 2: Disclaimer
Disclaimer This document has been prepared by “BPER Banca” solely for information purposes, and only in order to present its strategies and main financial figures. The information contained in this document has not been audited. No guarantee, express or implied, can be given as to the document’s con
Slide 3: Agenda
Agenda Executive summary Group results Final remarks Annexes 3
Slide 4: Solid Revenues growth and sound profitability in 9M24
Solid Revenues growth and sound profitability in 9M24 Key Financial Highlights Delivered higher results in the first nine months with adjusted Net Profit up by 2.2% 9M/9M Total Revenues Net Profit adjusted(1)(2) €4.1 bn €1.1 bn +2.9% 9M/9M +2.2% 9M/9M Core Revenues up by 5.0% 9M/9M and operational e
Slide 5: Net Profit in 9M24 mainly supported by Core Revenues and Costs efficiency
Net Profit in 9M24 mainly supported by Core Revenues and Costs efficiency P&L Key Figures (€mn) Net Profit stated vs adjusted(3) (€mn) 413.9 388.5 412.9 9M24 9M/9M 3Q24 Q/Q Y/Y 382.5 290.7 (4) 309.3 264.1 Total Revenues 4,129.1 +2.9% 1,371.0 -1.9% +0.5% Core Revenues 457.3 o/w NII 2,523.2 +6.0% 840.
Slide 6: On track to achieve 2024 Guidance
On track to achieve 2024 Guidance 9M24 FY24 Guidance Total Revenues €4.1 bn ~€5.4 bn o.w. Net Inter. Income €2.5 bn ~€3.3 bn o.w. Net Comm. Income €1.5 bn >€2.0 bn Operating Costs €2.0 bn >€2.8 bn Cost/Income 49.5% ~52% Cost of Risk 39 bps(1) <48 bps Net Profit €1.1 bn ~€1.3 bn RoTE(2) 17.4% >15.5%
Slide 7: Business Plan initiatives already launched so far
Setting the ground for the next three years… B:Dynamic | Full Value 2027 55% Business Plan initiatives already launched so far 100% Business Plan initiatives to be fully up & running by 1H25 (1) Calculated on total operating costs, excluding depreciation and amortization. (2) Morningstar Sustainalyt
Slide 8: Agenda
Agenda Executive summary Group results Final remarks Annexes 8
Slide 9: Solid performance in Core Revenues in 9M24
Solid performance in Core Revenues in 9M24 Total Revenues (quarterly) (€mn) KEY HIGHLIGHTS 9.3% 9.2% 9.5% 9.6% 9.6% 1,800.0 8.6% 8.8% (2) 9.0% Core Revenues 1,600.0 1,462.9 1,396.9 Total Revenues 1,364.6 1,361.2 1,371.0 1,400.0 1,320.1 1,329.1 75.4 42.0 8.0% ▪ In 9M24, Core Revenues at €4.0 bn, up b
Slide 10: Resilient NII despite lower Interest Rates environment
Resilient NII despite lower Interest Rates environment NII (quarterly) (€mn) KEY HIGHLIGHTS +0.5% Y/Y NII 870.3 Net Interest Income 819.0 836.5 843.6 838.9 840.8 ▪ In 9M24, strong NII at €2.5 bn (+6.0% 9M/9M) (€mn) thanks to Commercial Rates and volumes 726.0 increase ▪ In 3Q24, almost stable NII at
Slide 11: 9M24 Net Commissions up 3.5% 9M/9M thanks to AuM & Non-life Insurance products
9M24 Net Commissions up 3.5% 9M/9M thanks to AuM & Non-life Insurance products Net Commission Income(1) (quarterly) (€mn) KEY HIGHLIGHTS +2.5% Y/Y Net Commission Income Net Commission Income ▪ In 9M24, Commission Income up at €1.5 bn (€mn) 496.2 517.2 498.7 516.0 (+3.5% 9M/9M) mainly driven by AuM a
Slide 12: Robust Total Financial Assets growth supported by well diversified products mix
Robust Total Financial Assets growth supported by well diversified products mix and market effects TFA (€bn) KEY HIGHLIGHTS +6.8% Y/Y Deposits 290.3 298.1 298.7 303.5 ▪ Deposits slightly down to €116.6 bn (-€0.9 bn 282.1 281.1 284.2 21.1 21.4 21.2 21.1 Q/Q) mainly due to timing technicalities relate
Slide 13: Cost/Income below 50% mainly driven by HR Costs seasonality
Cost/Income below 50% mainly driven by HR Costs seasonality Cost/Income & Total costs (quarterly) (€mn) KEY HIGHLIGHTS +3.5% Y/Y Total Costs Total Costs Excluding Excluding ▪ In 9M24, Total Costs at €2.0 bn with a 53.0% (€mn) 50.4% 50.7% €294.5 mn 50.6% €173.8 mn Cost/Income Ratio at 49.5% 50.6% 45.
Slide 14: Cost of Risk down by 15bps 9M/9M. A solid NPE Coverage Ratio at 54.5%
Cost of Risk down by 15bps 9M/9M. A solid NPE Coverage Ratio at 54.5% LLPs (€mn) and CoR(1) (quarterly) (bps) KEY HIGHLIGHTS LLPs (€mn) 160.0 63 - 3 bps Y/Y 70 58 Cost of Risk (CoR) -29.7% 140.0 60 361.7 ▪ In 9M24, CoR down to 39bps. In 3Q24, CoR at 43 50 35bps (-4bps Q/Q and -3bps Y/Y) thanks to 12
Slide 15: NPEs Ratios stable Q/Q at the end of September
NPEs Ratios stable Q/Q at the end of September Gross NPE stock (€bn) KEY HIGHLIGHTS Flat Y/Y 3.0 Gross NPE Stock 0.2 2.5 2.5 2.5 2.5 ▪ Gross NPEs stable Y/Y and Q/Q at €2.5 bn 2.3 thanks to proactive collection process 1.0 0.2 0.2 2.2 0.2 0.1 0.2 0.2 0.7 0.7 1.0 1.0 0.7 Stage Classification 0.6 ▪ St
Slide 16: RWAs well managed with continued efficiencies and lower credit risk
RWAs well managed with continued efficiencies and lower credit risk RWAs(1) (€bn) KEY HIGHLIGHTS 53.5 53.1 53.5 53.4 53.4 53.2 52.0 RWAs 1.0 0.8 0.9 2.3 1.1 1.0 0.9 6.0 6.0 7.0 7.0 7.0 ▪ In 3Q24 Total RWAs slightly down by €0.2 bn 6.0 7.0 Q/Q at €53.2 bn thanks to proactive portfolio management 46.5
Slide 17: CET1 Ratio driven by strong organic capital generation
CET1 Ratio driven by strong organic capital generation Capital evolution KEY HIGHLIGHTS 15.8% 14.9% 14.9% 15.3% Organic capital generation (OCG)(1) 14.5% ▪ OCG of 295bps (€1.6 bn) in the first nine 14.0% months of 2024, reinforcing capital strength 13.3% ▪ In 3Q24, OGC at 96 bps (€0.5 bn) 494.5 Quar
Slide 18: Robust balance sheet with a sound liquidity profile
Robust balance sheet with a sound liquidity profile Balance sheet (€bn) KEY HIGHLIGHTS Other Assets 11.9 Balance sheet: €139.9 bn LCR and NSFR 20.6 ▪ LCR reached 168.7% at the end of September Financial Assets at amortised 8.9 Cost 2024 vs 161.4% at end of June 2024 thanks to 8.1 Loans Breakdown the
Slide 19: Well diversified bond portfolio with lower duration
Well diversified bond portfolio with lower duration Italian Government Bond (€bn) KEY HIGHLIGHTS +0.2% Y/Y Italian Govies 10.3 10.2 10.0 10.0 ▪ Italian Govies stand at €10.0 bn at the end of 9.0 8.7 8.9 September 2024, up by 13.0% Q/Q and by 0.2% Y/Y ▪ This portfolio is 38.9% of the Total Bonds outs
Slide 20: Bond Issuances & Maturities
Bond Issuances & Maturities Bond Issued (€bn) Bond Maturities (€bn) KEY HIGHLIGHTS 6.9 Bond issued 2.6 ▪ Main Issuance in the first nine months (€2.3 bn): • In Feb-24, the first Senior Preferred Bond 3.2 qualifying as “Green” for €0.5 bn 0.5 2.3 1.6 1.7 4.3 • In March, a 7-year maturity Covered Bond
Slide 21: Agenda
Agenda Executive summary Group results Final remarks Annexes 21
Slide 22: Final Remarks
Final Remarks Growth supported by Core Revenues and operational efficiency Asset quality remains very strong Strong capital supported by solid Organic Generation of 295bps (+€1.6 bn) More than 50% of our Business Plan initiatives already launched Well on track to achieve 2024 Guidance 22
Slide 23: Agenda
Agenda Executive summary Group results Final remarks Annexes 23
Slide 24: Group P&L
Group P&L 3Q24 9M24 9M23 P&L - (€mn) Delta 9M/9M Delta 9M/9M % Stated = Delta Q/Q % Delta Y/Y % Stated Stated Adjusted Net interest income 2,523.2 2,381.5 141.7 6.0% 840.8 0.2% 0.5% Net commission income 1,502.7 1,452.1 50.6 3.5% 487.9 -5.4% 2.5% Core Income 4,025.9 3,833.6 192.3 5.0% 1,328.7 -1.9%
Slide 25: Group P&L adjustments in the last four quarters
Group P&L adjustments in the last four quarters 3Q24 2Q24 Non-recurring 2Q24 1Q24 Non-recurring 1Q24 4Q23 Non-recurring 4Q23 P&L - (€mn) Stated = items items items Stated Adjusted Stated Adjusted Stated Adjusted Adjusted Net interest income 840.8 838.9 838.9 843.6 843.6 870.3 870.3 Net commission in
Slide 26: Group Reclassified Balance Sheet
Group Reclassified Balance Sheet ASSETS (€bn) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Chg Q/Q Chg Y/Y Customer Loans 89.4 89.1 86.7 88.2 87.7 89.0 88.9 -0.1% +2.5% Securities Portfolio 30.7 30.5 30.0 28.6 26.5 26.5 27.7 +4.5% -7.6% Interbank Assets (1) 18.5 10.3 13.4 11.7 12.6 10.1 10.4 +3.2% -21.8% PPE
Slide 27: Asset Quality Breakdown
Asset Quality Breakdown Gross exposures (€mn) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Chg YTD Chg Y/Y comp. % comp. % comp. % comp. % comp. % comp. % comp. % Abs. Chg (%) Abs. Chg (%) Non Performing Exposures (NPEs) 3,022 3.3% 2,504 2.7% 2,530 2.8% 2,197 2.4% 2,336 2.6% 2,513 2.8% 2,525 2.8% 328 14.9% -4
Slide 28: Net Customer Loans: Loan Portfolio Composition
Net Customer Loans: Loan Portfolio Composition Net Customer Loans Breakdown by Sector (€bn; %) Net Customer Loans Breakdown by Geographical Areas(1) (%) % on Total Δ% Lombardy Business sector 3Q24 Customer North vs 4Q23 24.4% Loans 59.2% Manufacturing 12.8 14.4% -2.3% Wholesale and retail services,
Slide 29: Financial Assets: Highlights
Financial Assets: Highlights Bonds PTF Geographical Breakdown (%) Govies Geographical Breakdown (%) Other Germany 6.2% Other 4.9% 24.1% USA 5.9% Spain 7.6% USA Italy 4.5% 46.5% Spain 5.2% Italy 75.4% Germany 7.6% France 12.1% Bonds PTF Maturities (1) (€bn) Italian Govies Maturities (1) (€bn) 16.0 6.
Slide 30: Commercial dynamics: loans and deposits evolution
Commercial dynamics: loans and deposits evolution Commercial loans by geography (€bn) Commercial deposits by geography (€bn) 89.4 89.1 86.7 88.2 87.7 89.0 88.9 105.0 103.4 107.7 104.9 103.8 104.4 102.7 10.0% 10.0% 10.1% 10.5% 10.1% 10.1% 10.3% 13.1% 13.2% 13.3% 13.5% 13.1% 13.4% 13.8% 12.5% 12.4% 12
Slide 31: ESG
ESG Environmental Social Governance ▪ Membership in the Net Zero Banking Alliance, ▪ Signatory of the Principles for Responsible Banking ▪ Presence of a Board-internal Sustainability publication of the first Net Zero targets and and definition of inclusion, digitalisation and Committee and a Manager
Slide 32: Contacts for Investors and Financial Analysts
Dummy figures Contacts for Investors and Financial Analysts Nicola Sponghi Chiara Leonelli Head of Investor Relations Investor Relations nicola.sponghi@bper.it chiara.leonelli@bper.it Maria Accarrino Ilaria Picelli Investor Relations Investor Relations maria.accarrino@bper.it ilaria.picelli@bper.it