Credito Emiliano S.p.a. · MIL:CE
Credito Emiliano — H1 2016 Earnings Presentation
27 slides from Credito Emiliano's earnings presentation, Aug 5, 2016
Slide 1: Group's Results 1H 2016
Group’s Results 1H 2016 5 August 2016
Slide 2: 1H16 Highlights
1H16 Highlights The Group continued to pursue its growth strategy, by further consolidating the trend already ongoing in the 1Q16: 2Q16 Net Inflows increased at €1.160 million vs €840 million in 1Q16 (+38%). The YoY performance in the semester was €2 billion, up by 16% in comparison with €1.7 billio
Slide 3: Income Statement
Income Statement % 2Q16 Operating Income Euro, Million 2Q15 1Q16 2Q16 vs 2Q15 1H15 1H16 (net of Trading and Performance Fees) Operating 260 Euro, million 257.9 284.4 257.9 0.0% 611.1 542.3 Income 248.8 247.7 248.2 250 Operating Income net of 240 239.8 245.4 251.0 4.7% 492.8 496.4 234.0 Trading and P
Slide 4: P&L non recurrent events
P&L non recurrent events Statutory P&L Reclassified P&L Non recurrent events (Euro, million) Non recurrent events (Euro, million) • -1.9: financial charges related to a Prov. for risks • -1.4: residual provision to Single fiscal agreement with the Italian and charges Resolution Fund Interest Margin
Slide 5: Interest Margin (1/3)
Interest Margin (1/3) Quarterly Interest Margin Interest rates drop penalized Interest Margin in Euro Million 1Q16 (-3.3% QoQ), that was only partially 120 sustained by the Loans’ growth occurred in 2Q16 117 as it was mostly concentrated in the final 110 115 111 111 month of the quarter 100 106 104
Slide 6: Interest Margin (2/3)
Interest Margin (2/3) Evolution of Average Loan Rate Evolution of Average Deposit Rate (Credem SpA management accounting) (Credem SpA management accounting) % % 3.79 - 0,46 3.79 2,40 4.00 3.33 - 0,61 3.42 - 0,72 1,96 3.18 3.07 - 0,74 1,80 1,68 3.00 2.70 2.34 - 0,76 1,30 1,22 1,08 2.00 - 0,73 1,20 0,
Slide 7: Interest Margin (3/3)
Interest Margin (3/3) Securities’ Portfolio Breakdown 1H16 figures showed an increase of (Credem SpA management accounting) securities’ portfolio amounting to 100% circa 800 million in comparison to the 13% end of 1Q16, mostly due to the purchase 90% of Italian and European securities 80% 10% 39% Th
Slide 8: Non Interest Income
Non Interest Income Non Interest Income: Quarterly Evolution 246.9 250 Performance Fees 200 97.1 Trading 150.8 169.5 n 154.1 7.9 146.8 o lii 150 137.0 15.9 6.5 38.8 6.4 Other M 2.9 € 49.3 48.9 48.6 52.2 46.6 Banking Fees 100 46.0 24 7.6 8.6 10.4 12.2 11.5 Insurance Fees 50 68.5 74.1 71.2 67.8 69.1 7
Slide 9: AUM and Insurance Reserves
AUM and Insurance Reserves Third Parties’ Products Breakdown by Asset AUM and Insurance Reserves Evolution Class (Group management reporting) 30,000 100% 25,000 5,513 5,748 5,991 20% 21% 24% 22% 80% 4,409 20,000 3,236 60% 40% 45% 51% 51% 15,000 40% 22,543 22,252 22,875 20,208 17,687 10,000 20% 39% 3
Slide 10: Operating Costs
Operating Costs Operating Costs: Quarterly Evolution Employees/ Networks €, million Employees 200 176 174 172 179 181 6,048 162 5,993 5,899 5,740 5,763 150 55 57 49 57 60 5,6045,609 50 5,544 5,519 100 50 121 117 112 123 123 121 2008 2009 2010 2011 2012 2013 2014 2015 1H16 Financial Advisers 0 1Q15 2
Slide 11: Loans to Customers
Loans to Customers Loans to Customers (net of Repos with Institutional and Loans to Group’s SPVs) € Mil. 24,000 22,649 22,444 21,508 21,448 19,721 19,949 19,938 20,000 18,770 3,755 3,901 17,536 3,339 3,485 3,324 3,370 3,056 2,577 3,323 16,000 6,392 6,235 6,280 6,528 6,282 6,241 6,127 12,000 5,534 5,
Slide 12: Loans: comparison with the Industry
Loans: comparison with the Industry Market shares on retail and corporate customers Loans to Retail and Public Sectors Growth Rates and small business (net of financial institutions) (Credem SpA management reporting) 9.0% 7.9% 7.0% 7.0% 5.3% 4.6% 1.58% 5.1% 1.6% 1.53% 5.0% 4.2% 2.2% 1.45% 3.0% 1.2%
Slide 13: Residential Mortgages: comparison with the Industry
Residential Mortgages: comparison with the Industry Residential Mortgages Inflows In 1H16 the positive evolution of new (Credem SpA management reporting) residential mortgage sales continued, with inflows increasing by more than 30% YoY, and accelerating from the +21% YoY posted in 1Q16 Inflows: As
Slide 14: Deposits, Bonds and AUM
Deposits, Bonds and AUM Euro, million 2012 2013 2014 2015 1H16 During 2Q16 Direct Deposits continued to Sight/ Saving increase (+€1.248 million since the 13,066 13,625 15,335 16,979 18,094 Deposits beginning of the year, +7.2%) while AUM CD and Other was back to growth (+€332 million, +1.5%). 256 26
Slide 15: Evolution of Retail Client Base
Evolution of Retail Client Base Retail Customers’ Acquisition Rate Credem overperformance 12.21% vs the Industry in terms 11.75% 11.90% 10.73% of Deposits growth rate, is in line with the Group 8.04% superior capacity of 7.05% 6.94% 7.05% attracting new customers * The expansion of the of the custom
Slide 16: Service Model: Cross Selling
Service Model: Cross Selling Retail Customers’ Cross Selling 4.72 4.55 4.56 4.39 4.40 4.35 4.33 4.29 2012 2013 2014 2015 ABI Panel** Credem Beyond the expansion of the number of clients, the Group is consistently strenghtening its penetration on its customers’ base The evolution of the service model
Slide 17: Service Model: Online Offer
Service Model: Online Offer Number of Online Contracts and Transaction Migration* Service model’s evolution 512,681 is necessarily linked to the 479,856 development of the online 420,036 370,765 offer of the Group. Equally 330,441 important is to make 76.5 available to customers a 74.2 wide range of
Slide 18: Group's customer funding: net inflows evolution
Group’s customer funding: net inflows evolution Net Inflows evolution 2,191 2,200 2,015 2,000 1,700 1,930 1,718 1,200 1,049 910 972 700 552 713 2Q16 199 111 118 200 259 1Q16 -300 -46 -196 -427 -800 -696 1H13 1H14 1H15 1H16 AUC Direct Deposits AUM Total Net Inflows Net Inflows evolution was not affec
Slide 19: Bonds issued and future maturities
Bonds issued and future maturities Bonds Issued Bonds Maturities (Credem SpA management account) (Credem SpA management account) €, million €, million 2,500 1.000 2,000 365 800 Retail Bonds 1,500 1,473 1,407 600 1,000 962 1,500 400 500 938 - 523 600 38 312 249 200 - 0 351 2010 2011 2012 2013 2014 20
Slide 20: Credit Quality
Credit Quality Gross Non Performing Loans 909.7 926.8 942.7 900 2015 € Million 1Q16 600 484.2 451.0 466.2 1H16 300 70.0 62.9 57.5 0 Gross Bad Loans Gross Unlikely to Pay Loans Gross Past Due Loans % on Loans (Credem) 3.9 4.2 4.1 1.9 2.1 2.1 0.3 0.3 0.2 % on Loans (Industry) 10.0 9.7 6.3 6.2 0.7 0.6
Slide 21: Non Performing Loans' Coverage
Non Performing Loans’ Coverage Net Non Performing Loans Euro, million 2013 2014 1Q15 2015 1H16 Net Bad Loans 334.4 341.7 356.8 366.5 Net NPLs Ratio has being fairly stable for the last 10 quarters Unlikely to Pay 362.8 348.9 376.2 406.7 Net Bad Loans Ratio landed at 1.63% in the Net Past-due 100.2 9
Slide 22: Bad Loans Portfolio Disposal
Bad Loans Portfolio Disposal Euro, million 1H16 Post Disposal Change At the end of July a disposal of (Pro-forma) % a Bad Loans portfolio was finalized. The portfolio Gross Bad Loans 942.7 852.7 -9.5% amounted to circa €90 million and was composed, for the vast Total Gross Loans 23,107 23,017 -0.4%
Slide 23: Cost of Risk
Cost of Risk Cost of Risk (bps) 70 70 59 60 52 55 51 52 60 50 37 39 32 40 28 47 45 30 41 39 39 37 41 20 27 31 28 10 19 - 2013 1Q14 1H14 9M14 2014 1Q15 1H15 9M15 2015 1Q16 1H16 Cost of risk Cost of risk (net of non recurrent items) Cost of Risk: history (bps) Albeit affected by some non recurrent 80
Slide 24: Assets & Liabilities
Assets & Liabilities Assets (Euro, Million) On the assets’ side, Loans 21,642 22,444 24,000 1Q16 grew €800 million QoQ 1H16 18,000 Financial Assets Available for Sale showed a similar 12,000 increase 6,929 6,047 5,757 6,047 6,000 419 133 471 136 0 0 0 Fin. Assets Fin. Assets at Fin. Assets av. Fin.
Slide 25: Liquidity Ratios
Liquidity Ratios NSFR Both NSFR and LCR ratios at the end of 150% June 2016 show values well above the 130% future target thresholds set by the 130% 124% 125% 116% regulation, with NSFR in further improvement at 130% and LCR at 162% 110% (calculated on the back of “delegated act”) 90% ECB eligible s
Slide 26: Capital Ratios evolution
Capital Ratios evolution Consolidated Capital Ratios Consolidated Capital Ratios on on Banking Group (phased-in) «prudential perimeter» (phased-in) 2,500 2,500 11.7% 15.2% 15.4% 15.3% 11.8% 14.8% 14.6% 14.6% 2,000 11.1% 13.8% 13.9% 13.9% 2,000 11.1% 13.5% 13.4% 13.3% 1,500 1,500 1,969 2,010 1,955 1,
Slide 27: Disclaimer and Contacts
Disclaimer and Contacts The manager responsible for preparing the company’s financial reports Mr. Paolo Tommasini of Credito Emiliano S.p.A., declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corres