Credito Emiliano S.p.a. · MIL:CE

Credito Emiliano — H1 2022 Earnings Presentation

23 slides from Credito Emiliano's earnings presentation, 2022

  1. Slide 1: Group Results 1H22

    yr S= GROUP RESULTS 1H22

  2. Slide 2: 1H22: Key Points

    1H22: KEY POINTS LOANS GROWTH ASSET QUALITY NPL Ratio at 2.2%, almost in line with the EU Loans to customers at €33.5 billion, average (2.0%*) and well below the average of up by 12.3% YoY, almost 6x the Italian Banking System (3.0%*) compared to the Industry (+2.1% YoY) 12.3% 3.0% 2.1% 2.2% 2.0% 1H

  3. Slide 3: Business Diversification

    BUSINESS DIVERSIFICATION 0.7% 1.4% 0.0% 0.3% 1.1% 1.0% 0.4% 12.1% 2.3% 12.6% 11.0% 0.9% 38% 41% 43% 35% 35% 36% 52% 58% 56% 52% 53% 56% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Performance Fees on Operating Income Income from Financial Activities on Operating Income NII on Operating Income Core NIM on Operatin

  4. Slide 4: A Growing Digital Approach

    A GROWING DIGITAL APPROACH 1 INTERNET BANKING RETAIL DIGITAL OPERATION: 4 • >727,726 contracts (+1.9% vs Dec. ‘21) MIGRATION TREND • +14% of online operations vs June 2021 • Incidence on bank accounts at 72% vs • As of June 2022, nearly 94% of 70% FY21 overall transactions made through digital chann

  5. Slide 5: Sustainability

    SUSTAINABILITY CLIMATE RISK MANAGEMENT CREDEM FOR THE ITALY OF THE FUTURE Signed a partnership to structure a Launched a plan with financial resources collection of ESG data on client of €16.5 billion in the period 2022-25, which companies aimed at analyzing physical will finance the projects of cor

  6. Slide 6: Reclassified Income Statement

    RECLASSIFIED INCOME STATEMENT Δvs Δvs • Excellent revenue trend (+7.9% vs 1H21), thanks not €/million 1Q22 2Q22 1H21* 1H22 1Q22 1H21 only to the consolidation of CR Cento, but also to the relevant performance of the NII and the good Operating Income 355.3 335.0 -5.7% 639.8 690.3 7.9% performance of

  7. Slide 7: Net Interest Income (1/3)

    NET INTEREST INCOME (1/3) Net Interest Income (€/mln) Euribor and BTP/Bund spread 146 135 192 128 129 121 149 90 102 101 117 117 -0.36% -0.54% -0.54% -0.55% -0.57% -0.53% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3 months Euribor (avg) Spread BTP vs Bund 10 yrs (bps) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Of which ECB d

  8. Slide 8: Net Interest Income (2/3)

    NET INTEREST INCOME (2/3) Loans to customers Deposit rate 2.25 2.21 0.48 0.47 2.19 2.17 2.14 2.18 0.45 0.45 0.44 0.44 1.56 1.56 1.53 1.51 1.53 1.57 0.04 0.04 0.04 0.04 0.04 0.04 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Credem: average loans rate Industry: average loans rate Credem

  9. Slide 9: Net Interest Income (3/3)

    NET INTEREST INCOME (3/3) Securities portfolio breakdown (€/mln, %) Italian government bond (€/bn) 6.2 7,794 10,249 11,627 14,253 14,060 14,824 5.8 5.6 5.2 4.5 4.6 Ita Govies 1H22 HTC 5.9 HTCS 0.3 45% 44% 40% 40% 42% FVTPL 0.0 58% Total 6.2 1Q21 1H21 9M21 FY21 1Q22 1H22 4% 4% 4% 4% 5% 3% 32% • As of

  10. Slide 10: Non Interest Margin

    NON INTEREST MARGIN Total *(€/mln) 218.3 187.4 182.3 252.4 226.1 189.3 Performance Fees 40.7 3.4 39.1 Income from Financial 6.9 1.5 3.0 56.7 Activities 56.8 58.9 49.6 51.1 59.7 Banking Fees ** 19.1 17.1 13.4 13.1 15.6 15.7 Insurance Income 102.9 107.2 117.0 111.8 105.0 93.2 AUM and Brokerage Fees**

  11. Slide 11: Operating Costs and D&A

    OPERATING COSTS AND D&A Operating costs* (€/mln) Employees 6,608 6,656 195 190 186 212 202 196 6,068 6,140 6,195 6,201 6,219 5,544 5,519 5,604 5,609 5,763 5,899 62 58 57 59 54 58 138 131 132 150 144 138 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1H22 Financial Advisors 1Q21 2Q21 3Q2

  12. Slide 12: Loans to Customers

    LOANS TO CUSTOMERS Loans to customers (€/bn) Other Loans 10.1 10.1 10.2 8.6 9.0 9.8 Residential Mortgage 9.4 9.7 8.7 8.9 9.3 9.6 Leasing 2.9 2.9 2.9 3.0 3.0 3.0 Short-Term Loans 9.5 9.0 9.4 10.6 10.1 10.6 1Q21 1H21 9M21 2021 1Q22 1H22 Total 29.6 29.8 31.5 33.2 32.8 33.5 • Loans to Customers confirme

  13. Slide 13: Loans: Comparison with the Industry

    LOANS: COMPARISON WITH THE INDUSTRY Loans to Customers growth* Market shares** evolution +12.3% YoY 2.11% 2.10% Industry Credem +78.5% 1.97% 1.89% 1.95% 1.79% 1.77% 1.66% 1.58% 1.48% 1.28% +2.1% YoY 1.20% MS on Performing Loans 1.16% 1.07% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

  14. Slide 14: Group Customers Funding: Net Inflows Breakdown

    GROUP CUSTOMERS FUNDING: NET INFLOWS BREAKDOWN AUC Direct Deposits AUM + Insurance Total Net Inflows 2,961 2,680 1,945 1,193 1,635 Of which 1,093 corporate: - 898 1,268 mln, mainly 893 723 direct deposits 491 462 517 570 446 343 434 265 214 -48 -95 1Q18 1Q19 1Q20 1Q21 1Q22 • Total net production was

  15. Slide 15: Deposits, AUM and Insurance

    DEPOSITS, AUM AND INSURANCE Total funding Diretc deposits & retail bonds** €/mln 2021 1Q22 1H22 +7.9% YoY Industry Sight / Saving Depo. 33,641 33,240 33,601 Credem CD and Other +146% Deposits 932 962 1,037 Direct Deposits 34,574 34,202 34,638 +2.4% YoY Wholesale Bonds* 2,508 3,108 3,608 Insurance Re

  16. Slide 16: Bonds Issuances and Maturities

    BONDS ISSUANCES AND MATURITIES Covered Bond Issuances (€/mln) Maturities (€/mln) 100 + 750 Green Bond SP 600 CB 500 + Green Bond SP 600 600+ SNP 500 + +Social T2* 200 CB 750 Covered 200 Bond Covered Covered Bond 600 500 SNP Bond Tier 2 200 + 1,250 T2 CRVita 850 107.5 750 Social 750 Tier 2 Tier 2* 50

  17. Slide 17: Credit Quality: Gross NPL Ratio

    CREDIT QUALITY: GROSS NPL RATIO 900 2020 Gross Non Performing Loans (€/mln,%) 2021 600 445 398 378 378 385 1H22 319 300 Bad Loans Disposal ~41 mn Bad Loans Disposal ~86 mn 53 43 41 0 Gross Bad Loans Gross UTP Loans Gross Past Due Loans % on Loans (Credem) 1.5 1.2 0.9 1.3 1.2 1.1 0.2 0.1 0.1 % on Loa

  18. Slide 18: NPL: Coverage

    NPL: COVERAGE Addendum & Coverage incl. NPL (€/million) Gross Net Coverage Shortfall* Calendar Shortfall Bad Loans 318.9 84.2 73.60% 27.4 8.3 84.79% + Net NPL +356.6 - Shortfall -52.0 UTP Loans 385.2 239.1 37.93% -5.2 23.0 42.55% Total NPL 745.4 356.6 52.16% 19.7 32.2 59.13% = NPL Net of Shortfall 3

  19. Slide 19: Cost of Risk

    COST OF RISK 19 59 55 52 42 44 34 38 31 47 45 32 41 24 24 34 39 19 16 27 30 8 21 15 10 13 Figures in bps -1 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1H22 Cost of risk Cost of risk (net of non-recurring events) • The annualized cost of risk stood at -1 bps, 70 62 59 thanks to the p

  20. Slide 20: Assets & Liabilities

    ASSETS & LIABILITIES 33,512 32,761 Assets (€/mln) 1Q22 1H22 • The securities portfolio grew mainly in the HTC components 9,158 8,049 7,418 6,665 6,692 • Total Loans to customers increased, while 6,559 6,170 5,957 the reduction Due from Banks was attributable to the decrease in deposits with the ECB

  21. Slide 21: Liquidity Ratios

    LIQUIDITY RATIOS NSFR LCR 217% 223% 141% 141% 137% 205% 2021 1Q22 1H22E 2021 1Q22 1H22 Loan to Deposit Ratio* 0.92 0.93 0.93 • Both LCR e NSFR ratios were well above minimum capital requirements, enabling the Group to have a greater flexibility in setting future funding strategies • ECB unencumbered

  22. Slide 22: Consolidated Capital Ratios

    CONSOLIDATED CAPITAL RATIOS Fully phased data Fully phased data Credem Group Credemholding €, million 2021 1H22 2020 2021 1H22 CET 1 2,868 2,695 2,340 2,591 2,453 Total Capital 3,169 2,894 2,746 2,993 2,791 Capital absorption from: 1,500 1,445 1,337 1,513 1,458 Credit and Counterparty 1,340 1,278 1,

  23. Slide 23: 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

Credito Emiliano S.p.A. (Credem Group) — H1 2022 Earnings Presentation on 6ix