Banca Sistema S.p.A. · MIL:BST
Banca Sistema — Q1 2019 Earnings Presentation
15 slides from Banca Sistema's earnings presentation, May 10, 2019
Slide 1: 1Q 2019 Results
BANCA SISTEMA SPECIALTY FINANCE 1Q 2019 RESULTS 10 May 2019
Slide 2: 1Q 2019 Results at a Glance
1Q 2019 Results at a Glance Factoring Turnover +27% y/y equal to €639m Commercial Tax receivables represent 23% of 1Q 2019 factoring outstanding performance CQS/CQP outstanding reached €708m, +35% y/y Interest Income equal to €21.6m, +8% y/y Cost of funding lower y/y at 0.8% Total Income equal to €1
Slide 3: Core business assets outstanding is growing
Core business assets outstanding is growing Factoring outstanding CQ Loans outstanding €m €m +22% y/y Of which 22% under +35% y/y Legal action +6% q/q +9% q/q 1,820 652 708 1,716 1,488 526 31.03.2018 31.12.2018 31.03.2019 31.03.2018 31.12.2018 31.03.2019 Outstanding breakdown (31.03.2019) Outstandin
Slide 4: 1Q 2019 – Balance Sheet
1Q 2019 – Balance Sheet Figures in millions of Euro 31.12.2018 31.03.2019 Change in % Govies’ portfolio (€1,233m) up q/q and y/y, with an average residual ASSETS duration of 14 months (21 months Financi al a s s ets at fair va lue through P&L [Held to Sell] - 262 nm as at 31.12.2018), includes €262m
Slide 5: Interest Income growth driven by higher assets
Interest Income growth driven by higher assets Total Interest Income Adjusted Income margin1 €m 1Q 2019 Interest Income is up 8% y/y, growth is driven by higher assets, in +8% particular CQ and Govies’ ptf y/y 21.6 20.0 5.1% 4.4% Factoring represents 68% of Total 6.9 1Q 2018 1Q 2019 5.0 Interest Inc
Slide 6: Total Income supported by business growth
Total Income supported by business growth Total Income 1Q 2019 Total Income is up 7% y/y, €m growth is driven by higher Net Interest Income (NII) and higher Net +7% 19.3 18.1 y/y 0.6 Commissions 0.9 4.0 3.6 NII y/y increase is driven by Interest Income increase that has more than compensated higher
Slide 7: Operating costs up y/y for business growth
Operating costs up y/y for business growth Administrative Expenses, Net Provisions for Operating Costs Personnel Expenses risk, Servicing Costs, Other and D&A €m FTEs (#) 169 182 +9% y/y 10.8 As of today total FTE equal to 209 9.9 following the acquisition in April 2019 of Atlantide 5.9 4.9 5.1 4.8
Slide 8: Lower funding cost y/y
Lower funding cost y/y Total Funding breakdown Total Funding breakdown Funding Cost1 • Cost of funding lower y/y 1.0% 0.9% 0.9% 0.8% and slightly lower vs FY 59% 2018 Wholesale 52% 51% Retail 43% • Wholesale q/q increase is Funding 49% Funding due mainly to Repos 51% 25% related to the increase q/q
Slide 9: Asset Quality driven by factoring business
Asset Quality driven by factoring business Gross Non Performing Exposures Net Non Performing Exposures €m 225.2 230.3 196.0 198.0 189.1 57.5 55.9 161.5 39.0 36.9 60.6 40.8 77.9 89.5 87.2 98.2 24.3 31.3 97.3 96.4 80.5 76.2 79.1 74.5 30.09.2018 31.12.2018 31.03.2019 30.09.2018 31.12.2018 31.03.2019 Pa
Slide 10: Regulatory Capital well above minimum requirements
Regulatory Capital well above minimun requirements CET1 and Total Capital(1) RWA breakdown €m CET1 Total Capital €m Operational Risk & Market Risk (2) Credit Risk TC Ratio 13.7% 13.2% 15.2% Lower CQ CET1 Ratio 11.0% 10.6% RWA 12.2% 1,400.7 184.5 1,317.0 181.1 144.3 148.3 2019 SREP requirements: 1,23
Slide 11: Annexes
Annexes
Slide 12: Factoring Turnover
Factoring Turnover Factoring Turnover €m +27% 639 Turnover generated by agreements with Italian Retail banks: 504 35% in 1Q 2019 408 1Q 2017 1Q 2018 1Q 2019 1Q 2019 Factoring Turnover breakdown By Type By Year of Customer’s Customer Concentration Acquisition Tax receivables 1Q 2019 TOP 10 10% Before
Slide 13: 1Q 2019 – Income Statement
1Q 2019 – Income Statement Figures in millions of Euro 31.03.2018 31.03.2019 Change in % Interes t i ncome 20.0 21.6 8% Interes t expens es (6.4) (7.0) 10% Net interest income 13.7 14.7 7% Net fee a nd commi s s i on i ncome 3.6 4.0 12% Di vi dends a nd s i mi l a r i ncome - - Net i ncome from tra
Slide 14: Disclaimer
Disclaimer The distribution of this presentation in other jurisdictions may be restricted by law or regulation. Accordingly, persons who come into possession of this document should inform themselves of, and observe, these restrictions. To the fullest extent permitted by applicable law, the companie
Slide 15: Head of Investor Relations
Carlo Di Pierro Head of Investor Relations carlo.dipierro@bancasistema.it +39 02 80280358 +39 3355288794