Credito Emiliano S.p.a. · MIL:CE
Credito Emiliano — H1 2021 Earnings Presentation
24 slides from Credito Emiliano's earnings presentation, 2021
Slide 1: Group Results 1H21
A = GROUP RESULTS 1H21
Slide 2: 1H21: Key Points
1H21: KEY POINTS LOANS GROWTH NPL RATIO* Loans to customers Credit quality: equal to €29.8 billion, best-in-class in +8.9% up by almost 9% YoY Italy and close growth, approx 3x 4.1% to the EU compared to the average 3.2% Industry 2.6% 2.5% PROFITABILITY CAPITAL Net Profit 14.38% Capital soundness at
Slide 3: Stress Test Results
STRESS TEST RESULTS The results of the last stress test, published by the ECB, confirmed Credem’s capital soundness, and placed the Group in the best range in terms of prudential CET1 ratio depletion in case of an economic adverse scenario (<300 bps impact on CET1 ratio). Out of the the major Italia
Slide 4: A Growing Digital Approach
A GROWING DIGITAL APPROACH INTERNET BANKING 1 DIGITAL OPERATION: RETAIL 4 >655,000 contracts (+3.5%) MIGRATION TREND +20% of online operations vs June 2020 Incidence on bank accounts at As of June 2021, more than 68% vs 66% FY20 90% of overall transactions was carry out through digital chann
Slide 5: Sustainability
SUSTAINABILITY ENVIRONMENT SOCIETY GOVERNANCE Carbon neutrality by 2025: • 181 recruitments in 1H21 of which Start of a project for the • Achieved 100% use of 46% women integration of climate and recycled paper • The Group sponsors the anti- transition risks within the • The Group started a COVID-19
Slide 6: Reclassified Income Statement
RECLASSIFIED INCOME STATEMENT Δvs Δvs • Revenues kept growing, with €/million 1Q21 2Q21 1H20 1H21 Operating Income at €640 million in the 1Q21 1H20 first half (+11.0% vs 1H20), thanks to the Operating 335.7 304.1 -9.4% 576.4 639.8 11.0% stability of the NII and the remarkable Income progression of t
Slide 7: Net Interest Income (1/3)
NET INTEREST INCOME (1/3) NET INTEREST INCOME: EVOLUTION EURIBOR AND SPREAD BTP/BUND 0.5% +2.7% 199 0.4% 171 0.3% 131 0.2% 133 122 0.1% 116 117 117 103 90 102 112 -0.1% -0.2% -0.30% -0.3% -0.41% -0.47% -0.4% -0.52% -0.54% -0.54% -0.5% -0.6% -0.7% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 1Q20 2Q20 3Q20 4Q20 1Q2
Slide 8: Net Interest Income (2/3)
NET INTEREST INCOME (2/3) CUSTOMERS SPREAD The competitive environment led to a further 2.10 1.90 reduction in the average rate of loans for the System (-4 bps vs 1Q21). The reduction for Credem 1.85 1.78 1.78 1.77 1.74 1.68 was lower (-1 bps vs 1Q21) 1.69 1.55 -0.31 Similarly, the decline in th
Slide 9: Net Interest Income (3/3)
NET INTEREST INCOME (3/3) SECURITIES PORTFOLIO BREAKDOWN 5.1 bn 4.5 bn 4.6 bn The overall securities portfolio exceeded 0% 10 billion as a result of new purchases of 0% foreign government bonds. This repositioning allowed for greater 0% 43% geographical diversification and an 50% 45% 0% 60% 59% 58
Slide 10: Non Interest Margin
NON INTEREST MARGIN Total 186.4 162.0 187.2 185.6 218.3 187.4 40.7 19.4 6.9 27.8 2.9 Performance Fees 4.1 51.0 53.6 50.6 51.6 Income from 49.8 48.0 Financial Activities 17.1 13.4 Banking Fees 14.6 15.4 10.2 14.4 Insurance Income 96.0 94.4 101.5 104.7 Asset Management 91.4 86.3 and Brokerage Fees 1Q2
Slide 11: Operating Costs and D&A
OPERATING COSTS AND D&A OPERATING COSTS EMPLOYEES / NETWORKS +16.3% Employees 184 164 170 187 195 190 6,341 6,195 6,201 6,219 6,288 6,068 6,140 185 6 11 5,899 5,763 52 49 51 49 5,544 5,519 5,6045,609 135 43 49 85 132 121 121 139 138 131 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q21 1H2
Slide 12: Loans to Customers
LOANS TO CUSTOMERS LOANS TO CUSTOMERS: EVOLUTION 8,364 8,578 9,017 24,000 5,699 7,119 7,964 20,000 Other Loans 16,000 7,484 7,733 7,993 8,329 8,722 8,909 Residential Mortgage Leasing 12,000 2,656 2,710 2,753 2,838 2,852 2,924 Short-Term8,000 Loans 4,000 10,342 9,859 9,393 9,769 9,489 8,999 0 1Q20 1H
Slide 13: Covid Emergency: Total Delivered Loans
COVID 19 EMERGENCY: TOTAL DELIVERED LOANS GOVERNMENT AND SYSTEM INITIATIVES Moratoria* State-backed guaranteed loans** «Cura Italia» Decree, «Accordo Abi» and «Liquidità» Decree «Fondo di solidarietà prima casa» FY20 3,610 FY20 1Q21 3,081 3,130 3,155 1Q21 1H21 2,703 2,752 1H21 2,461 2,111 2,216 1,82
Slide 14: Loans: Comparison with the Industry
LOANS: COMPARISON WITH THE INDUSTRY LOANS TO CUSTOMERS GROWTH* MARKET SHARES** EVOLUTION +8.9% YoY 1.89% 1.95% 1.97% 1.86% 1.9% 1.79% Industry 1.77% Credem 1.66% +63.0% 1.58% 1.6% 1.48% 1.28% 1.3% 3.2% YoY 1.20% MS on Performing Loans 1.16% 1.07% 1.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 201
Slide 15: Group Customers Funding: Net Inflows Breakdown
GROUP CUSTOMERS FUNDING: NET INFLOWS BREAKDOWN 2,961 2,680 AUC Direct Deposits AUM + Insurance Total Net Inflows 1,945 1,666 1,783 1,635 1,268 1,193 1,093 491 462 517 570 434 446 343 214 -35 -48 -82 1H17 1H18 1H19 1H20 1H21 1H17 1H18 1H19 1H20 1H21 Remarkable performance of AuM net inflows (+267% vs
Slide 16: Deposits, AUM and Insurance
DEPOSITS, AUM AND INSURANCE €, million 2020 1Q21 1H21 Direct Deposits remained broadly stable, while the expansion of AUM continued and grew by more than Sight / Saving Depo. 30,321 31,347 31,557 5% vs 1Q21, mainly thanks to the further increase of net inflows. Excellent performance of Insurance CD
Slide 17: Bonds Issuances and Maturities
BONDS ISSUANCES AND MATURITIES ISSUANCES 1000 MATURITIES Covered Bond 100 + 750 Wholesale 800 Covered Bond 2,000 500: SNP 600 500 SNP 1,500 750: CB 850 1,000 400 750 750 200: T2 1,250 107,5: T2 200 500 Tier 2 Tier 2 Tier 2 500 CRVita CRVita 750 200 307.5 0 50 100 107.5 - 2019 2020 2021 2021 2024 202
Slide 18: Credit Quality: Gross NPL Ratio
CREDIT QUALITY: GROSS NPL RATIO GROSS NON PERFORMING LOANS 900 2019 578 600 2020 445 403 399 378 350 1H21 300 Disposals ~40+70mn Disposals ~33 mn 49 53 45 0 Gross Bad Loans Gross UTP Loans Gross Past Due Loans % on Loans (Credem) 2.1 1.5 1.3 1.5 1.3 1.2 0.2 0.2 0.1 % on Loans (Industry)* 3.7 2.5 2.5
Slide 19: NPL: Accounting Coverage
NPL: ACCOUNTING COVERAGE Gross Net Shortfall* Coverage NPL Coverage (€, million) (€, million) (€, million) incl. Shortfall Bad Loans 402.9 109.9 72.7% 60.8 87.8% +377.5 + Net NPL UTP Loans 349.8 230.7 34.0% 5.8 35.7% - Shortfall - 65.9 = NPL net of Shortfall 311.6 Total NPL (1Q21) 798.1 377.5 52.7%
Slide 20: Cost of Risk
COST OF RISK 70 59 55 60 52 42 44 50 34 38 40 31 32 47 45 24 24 30 39 41 20 34 30 19 5 10 27 21 13 9 0 15 5 -10 -10 -20 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q21 1H21 Cost of risk Cost of risk (net of non-recurring events) • The absence of a significant deterioration in COST OF RIS
Slide 21: Assets & Liabilities
ASSETS & LIABILITIES ASSETS 29,849 29,641 8,000 1Q21 Loans to customers 1H21 11,242 11,310 2,000 increased, as well as the securities portfolio, both in 6,853 6,758 the HTC and HTCS 6,075 5,314 6,000 4,111 components 2,424 The level of customer deposits remained stable, 62 55 0 while insurance r
Slide 22: Liquidity Ratios
LIQUIDITY RATIOS NSFR LCR 300% 135% 270% 125% 126% 245% 240% 210% 210% 199% 180% 150% 120% 90% 2019 2020 1H21 2019 2020 1H21 Both LCR e NSFR ratios were well above 1.30 1.25 1.20 LOAN TO DEPOSIT RATIO* minimum capital requirements, enabling the 1.15 Group to have a greater flexibility in setting 1
Slide 23: Consolidated Capital Ratios
CONSOLIDATED CAPITAL RATIOS CET1 RATIO CAPITAL AND CAPITAL RATIOS CREDEMHOLDING* Banking Group Credemholding 15.0% 2,400 €, million 2020 1H2 1 2019 2020 1H2 1 14.4% 2,200 CET 1 2,580 2,677 2,039 2,340 2,432 14.0% 14.0% Total Capital 2,932 2,983 2,339 2,746 2,816 13.5% 2,000 1,800 Capital absorption
Slide 24: 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
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