Banca Monte Dei Paschi Di Siena S.p.a. · MIL:BMPS

Banca Monte Dei Paschi Di Siena — Q1 2025 Earnings Presentation

26 slides from Banca Monte Dei Paschi Di Siena's earnings presentation, May 9, 2025

  1. Slide 1: A Clear and Simple Commercial Bank - 1Q-25 Results

    A Clear and Simple Commercial Bank, Revolving Around Customers, Combining Technology With Human Touch 1Q-25 Results Siena, 9th May 2025

  2. Slide 2: Disclaimer (1/2)

    Disclaimer (1/2) IMPORTANT - YOU MUST CAREFULLY READ THE FOLLOWING BEFORE CONTINUING: The information set out in this presentation is not intended to form the basis of any contract. By attending (whether in person, by telephone or webcast) this presentation or by reading the presentation slides, you

  3. Slide 3: Disclaimer (2/2)

    Disclaimer (2/2) IMPORTANT INFORMATION: In connection with the Offer, the required offer document will be sent to Commissione Nazionale per le Società e la Borsa (“CONSOB”). Investors and shareholders of MEDIOBANCA - Banca di Credito Finanziario Società per Azioni are strongly advised to read the of

  4. Slide 4: 1Q-25 Executive Summary

    1Q-25 Executive Summary ▪ 1Q-25 net profit at €413m, up +24.2% y/y and +7.3% q/q (+14.1% q/q excluding positive net tax in both quarters) driven by a strong operating performance ▪ Net operating profit at €448m, +0.8% y/y and +9.4% q/q, thanks to increased fees contribution, effective cost managemen

  5. Slide 5: Net Profit

    Net Profit Quarterly Evolution (€m) +24.2% +7.3% 413 385 333 +14.1% 397 348 Positive net tax 1Q-24 4Q-24 1Q-25 • 1Q-25 net profit at €413m, up +24.2% y/y and +7.3% q/q (+14.1% excluding positive net tax in both quarters) driven by a strong commercial performance 5

  6. Slide 6: Net Operating Profit

    Net Operating Profit Quarterly Evolution (€m) +0.8% +9.4% 444 448 409 1Q-24 4Q-24 1Q-25 • 1Q-25 net operating profit at €448m, +0.8% y/y and +9.4% q/q, thanks to increased fees contribution, effective cost management and cost of risk reduction 6

  7. Slide 7: Gross Operating Profit

    Gross Operating Profit Operating Income (€m) Gross Operating Profit (€m) -0.5% +1.1% -2.8% +3.0% 1,013 996 1,007 551 520 535 1Q-24 4Q-24 1Q-25 Operating Costs (€m) +2.2% -1.0% 1Q-24 4Q-24 1Q-25 462 477 472 Cost/Income 46% 48% 47% 1Q-24 4Q-24 1Q-25 • 1Q-25 gross operating profit at €535m up +3.0% q/q

  8. Slide 8: Strong commercial performance in 1Q25

    Strong commercial performance in 1Q25 Total Commercial Savings(1) (€bn) WM Gross Inflows (€bn) +3% +22% 4.5 166.9 3.7 161.7 Mar-24 Mar-25 1Q-24 1Q-25 New Retail Mortgages (€bn) New Consumer Finance (€m) >3x +23% 1.7 337 275 0.5 1Q-24 1Q-25 1Q-24 1Q-25 • Ongoing and successful commercial focus on key

  9. Slide 9: Net Interest Income

    Net Interest Income Quarterly Evolution (€m) -7.5% -7.7% 587 588 543 1Q-24 4Q-24 1Q-25 Lending rate 4.46% 4.09% 3.75% Funding rate 1.16% 0.99% 0.87% Spread 3.30% 3.10% 2.89% -21bps -41bps • 1Q-25 NII at €543m, with yearly and quarterly trends, in line with guidance, affected by declining interest ra

  10. Slide 10: Net Customer Loans

    Net Customer Loans Net Loans (1) (€bn) +0.7% +2.5% 63.1 62.6 61.5 62.0 63.6 31.0 30.6 29.5 29.6 30.2 32.1 32.1 31.9 32.4 33.4 6.2 6.2 6.0 6.4 6.2 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Small business & medium enterprises Retail Large Corporate & Other • Net customer loans up +0.7% y/y driven by continuo

  11. Slide 11: Total Commercial Savings

    Total Commercial Savings Total Commercial Savings(1) (€bn) +3.2% -0.2% 161.7 164.4 163.7 167.2 166.9 Q/Q Y/Y 57.8 58.3 59.2 59.6 59.3 -0.5% +2.5% 32.1 31.8 32.4 33.2 34.3 0.0% +3.6% 71.8 74.4 72.2 74.3 73.3 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Deposits AuC AuM • Total commercial savings up €+5.2bn com

  12. Slide 12: Italian Govies Portfolio

    Italian Govies Portfolio Italian Govies Portfolio Breakdown(1) (€bn) Italian Govies Portfolio at FVTOCI 11.6 10.7 11.0 10.2 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 8.9 1.2 1.5 2.7 1.0 1.6 1.5 1.4 1.5 1.1 FVTOCI Duration ~2.6 ~2.5 ~2.3 ~2.1 ~1.6 (years) 7.7 8.0 7.8 8.0 7.9 FVTOCI Credit -0.5 -0.4 -0.4 -0.

  13. Slide 13: Net Fee and Commission Income

    Net Fee and Commission Income Commercial Banking Fees (€m) Total Fees (€m) +2.7% -6.3% +8.9% 198 185 +6.5% 180 373 398 365 1Q-24 4Q-24 1Q-25 Wealth Management and Advisory Fees (€m) +15.0% +21.0% 185 213 176 1Q-24 4Q-24 1Q-25 1Q-24 4Q-24 1Q-25 • Total fees in the €400m area, up +8.9% y/y and +6.5% q

  14. Slide 14: Operating Costs

    Operating Costs HR Costs (€m) Operating Costs (€m) +5.5% +3.3% +2.2% -1.0% 305 311 321 477 472 462 1Q-24 4Q-24 1Q-25 Non-HR Costs (€m) -4.2% -9.0% 166 157 151 1Q-24 4Q-24 1Q-25 1Q-24 4Q-24 1Q-25 • 1Q-25 operating costs at €472m, -1.0% q/q decrease, thanks to the strict costs discipline in Non-HR Cos

  15. Slide 15: Gross NPE Stock

    Gross NPE Stock Gross NPE Stock (€bn) Breakdown by Category (€bn) 3.6 3.7 3.9 3.7 3.6 2.2 2.2 2.3 2.3 2.3 Bad loans/ Total NPEs 1.5 1.5 1.6 1.3 1.4 37% 3.6 3.7 3.9 3.7 3.6 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Bad loan UTP + Past due Breakdown by type of guarantee (€bn) Mar-24 Jun-24 Sep-24 Dec-24 Mar-

  16. Slide 16: Coverage and Cost of Risk

    Coverage and Cost of Risk NPE Coverage Breakdown Cost of Risk (bps) 67.8% 66.5% 65.9% 37.8% 38.8% 40.0% 26.3% 28.7% 21.3% 54 56 53 46 Bad loan Coverage UTP Coverage Past Due Coverage Mar-24 Dec-24 Mar-25 Total NPE Coverage 49.5% 48.5% 49.5% 1Q-24 4Q-24 FY-24 1Q-25 Mar-24 Dec-24 Mar-25 • 1Q-25 cost o

  17. Slide 17: Funding & Liquidity

    Funding & Liquidity Reduced Reliance on ECB funding (ECB Funding/Total Liabilities) LCR Evolution 163% 164% 165% 166% 156% 9% 9% 7% 7% Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 6% NSFR Evolution 134% 133% 134% 129% 130% Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 • Solid liquidity

  18. Slide 18: Capital

    Capital CET1 Ratio Fully Loaded(1) Fully Loaded Capital Ratios(1) SREP 18.3% 18.2% 19.6% Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 18.2% 18.1% 2025(2) CET1 ratio (%) 18.2% 18.1% 18.3% 18.2% 19.6% 8.81% 8.8% Tier 1 ratio (%) 18.2% 18.1% 18.3% 18.2% 19.6% 10.78% Total capital Mar-24 Jun-24 Sep-24 Dec-24 Mar-

  19. Slide 19: Progress Update on the Mediobanca Exchange Offer

    Progress Update on the Mediobanca Exchange Offer ▪ BMPS is on track on the key milestones of the Mediobanca Exchange Offer ▪ On April 17th, the EGM approved the relevant capital increase with the favorable vote of 86.4% of the represented capital, showing appreciation by BMPS shareholders of the ind

  20. Slide 20: Conclusions

    Conclusions ▪ Strong economic and commercial performance confirmed in 1Q-25 ▪ Net profit +24% y/y ▪ Resilient revenues, supported by significant fee growth (+8.9% y/y and +6.5% q/q) and acceleration of the lending business (new retail mortgages in 1Q-25 >3x vs 1Q24, new consumer finance flows up +23

  21. Slide 21: Appendix – Supporting Materials of 1Q-25 Results

    Appendix – Supporting Materials of 1Q-25 Results 21

  22. Slide 22: Focus on DTAs

    Focus on DTAs On and Off Balance Sheet DTAs (€bn) Mar-24 Dec-24 Mar-25 Convertible DTAs 0.5 0.4 0.4 ▪ Stock of DTAs not recorded in Balance Sheet DTAs on Tax loss carryforwards 0.8 1.5 1.6 at €1.4bn, entirely composed by DTAs on tax loss carryforwards Other non-convertible DTAs 0.6 0.6 0.6 ▪ Current

  23. Slide 23: Extraordinary Litigations and Extrajudicial Claims

    Extraordinary Litigations and Extrajudicial Claims Gross Petitum(1) (€bn) ▪ Extraordinary litigations and extrajudicial Mar-24 Dec-24 Mar-25 claims down at €1.2bn following the positive Supreme Courts sentence on Viola/Profumo Alken civil criminal proceeding last February (petitum litigation (2nd of

  24. Slide 24: Reclassified Income Statement

    Reclassified Income Statement Change Change (€m) 1Q-24 2Q-24 3Q-24 4Q-24 1Q-25 (QoQ%) (YoY%) Net Interest Income 587 585 596 588 543 -7.7% -7.5% Net fees and commission income 365 370 356 373 398 +6.5% +8.9% Core Revenues 952 956 952 961 941 -2.1% -1.2% Profit (loss) of equity-accounted investments

  25. Slide 25: Balance Sheet

    Balance Sheet Total Assets(1) (€m) Mar-24 Dec-24 Mar-25 QoQ% YoY% Loans to Central banks 832 565 660 16.7% -20.7% Loans to banks 2,313 2,068 1,921 -7.1% -17.0% Loans to customers 78,423 77,310 78,631 1.7% 0.3% Securities assets 18,176 17,447 19,024 9.0% 4.7% Tangible and intangible assets 2,423 2,29

  26. Slide 26: Lending & Direct Funding

    Lending & Direct Funding Total Lending (€m) Mar-24 Dec-24 Mar-25 QoQ% YoY% Current accounts 2,668 2,659 2,832 6.5% 6.1% Medium-long term loans 52,047 50,705 52,041 2.6% 0.0% Other forms of lending 14,628 15,023 14,890 -0.9% 1.8% Reverse repurchase agreements 7,241 7,035 7,029 -0.1% -2.9% Impaired lo

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