Credito Emiliano S.p.a. · MIL:CE

Credito Emiliano — 9M 2021 Earnings Presentation

23 slides from Credito Emiliano's earnings presentation, 2021

  1. Slide 1: Group Results 9M21

    A = GROUP RESULTS 9M21

  2. Slide 2: 9M21: Key Points

    9M21: KEY POINTS LOANS GROWTH NPL RATIO* Loans to customers at Credit quality: €31.5 billion, growing best-in-class in +11.9% almost 12% YoY, more Italy and close than 6x compared to 3.8% to the EU the Industry average 1.9% 2.6% 2.3% PROFITABILITY CAPITAL Net Profit 14.30% Capital soundness at the t

  3. Slide 3: A Growing Digital Approach

    A GROWING DIGITAL APPROACH INTERNET BANKING 1 DIGITAL OPERATION: RETAIL 4  >679,000 contracts (+5.6%) MIGRATION TREND  +26% of online operations vs  As of September 2021, more September 2020 than 90% of overall  Incidence on bank accounts at transactions was carry out 70% vs 66% FY20 through dig

  4. Slide 4: Sustainability

    SUSTAINABILITY Commitment to Sustainability confirmed, also through the strengthening of Group Governance Stakeholder engagement It has been assigned to the Board of Directors, the task of promoting dialogue with shareholders and other relevant stakeholders through the definition of a dedicated poli

  5. Slide 5: Reclassified Income Statement

    RECLASSIFIED INCOME STATEMENT • Revenues kept growing, (+6.1% vs 9M20), Δvs Δvs with Operating Income at 949.6 million, €/million 3Q20 2Q21 3Q21* 9M20 9M21* 2Q21 9M20 thanks to the growth of the NII and the excellent performance of the fee Operating Income 318.3 304.1 309.8 1.9% 894.7 949.6 6.1% com

  6. Slide 6: Net Interest Income (1/3)

    NET INTEREST INCOME (1/3) NET INTEREST INCOME: EVOLUTION EURIBOR AND SPREAD BTP/BUND 0.5% 0.4% 199 131 128 171 0.3% 122 133 0.2% 116 117 117 0.1% 112 103 90 102 101 -0.1% -0.2% -0.30% -0.3% -0.41% -0.47% -0.4% -0.52% -0.54% -0.54% -0.55% -0.5% -0.6% -0.7% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 1Q20 2Q20

  7. Slide 7: Net Interest Income (2/3)

    NET INTEREST INCOME (2/3) CUSTOMERS SPREAD  The competitive environment led to a further 1.90 1.85 1.78 1.78 reduction in the average rate of loans for the 1.77 1.74 1.74 1.68 1.69 1.55 Industry (-2 bps vs 2Q21). The reduction for -0.33 Credem was lower (-1 bps vs 2Q21) 1.47 1.43 1.43 1.41  Simila

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

    NET INTEREST INCOME (3/3) SECURITIES PORTFOLIO BREAKDOWN 5.1 bn 4.5 bn 4.6 bn 5,2 bn  The overall securities portfolio exceeded 11 billion as a result of the reconstitution of the CR Cento portfolio, in line with the level of diversification of the Group 43% 45% 44%  BTP exposure remained low, at

  9. Slide 9: Non Interest Margin

    NON INTEREST MARGIN Total 186.4 162.0 187.2 185.6 218.3 187.4 182.3 40.7 Performance Fees 6.9 19.4 3.0 27.8 2.9 4.1 Income from 51.0 53.6 50.6 51.6 59.2 Financial Activities 49.8 48.0 Banking Fees 17.1 13.4 14.6 15.4 15.7 10.2 14.4 Insurance Income 96.0 94.4 101.5 104.7 93.7 91.4 86.3 Asset Manageme

  10. Slide 10: Operating Costs and D&A

    OPERATING COSTS AND D&A OPERATING COSTS EMPLOYEES / NETWORKS Employees 6,652 6,068 6,140 6,195 6,201 6,219 5,544 5,519 5,604 5,609 5,763 5,899 184 164 170 187 195 190 186 6 11 7 49 51 +3 mln 52 49 54 CRC 43 49 +5 mln 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 9M21 132 121 121 139 138 131

  11. Slide 11: Loans to Customers

    LOANS TO CUSTOMERS LOANS TO CUSTOMERS: EVOLUTION 9,786 8,364 8,578 9,017 Other Loans 5,699 7,119 7,964 Residential Mortgage 7,484 7,733 7,993 8,329 8,722 8,909 9,293 Leasing 2,656 2,710 2,753 2,838 2,852 2,940 Short-Term Loans 2,924 10,342 9,859 9,393 9,769 9,489 8,999 9,442 1Q20 1H20 9M20 2020 1Q21

  12. Slide 12: 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» 3,287 FY20 3,610 FY20 3,081 1Q21 3,130 3,155 1Q21 2,703 2,642 1H21 2,752 1H21 2,461 2,11

  13. Slide 13: Loans: Comparison with the Industry

    LOANS: COMPARISON WITH THE INDUSTRY LOANS TO CUSTOMERS GROWTH* MARKET SHARES** EVOLUTION +11.9% YoY 2.07% Industry 1.89% 1.91% 1.95% Credem 1.79% +67.6% 1.77% + 6.6 YoY, 1.66% net of CR Cento 1.58% 1.48% 1.28% +1.9% YoY 1.20% QdM Impieghi 1.16% 1.07% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

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

    GROUP CUSTOMERS FUNDING: NET INFLOWS BREAKDOWN AUC Direct Deposits 4,592 AUM + Insurance Total Net Inflows 3,410 2,962 2,011 2,300 2,303 1,582 1,880 1,490 1,319 845 930 625 447 511 700 Includes CR Cento: AUM: €+15 mln Direct Dep.: €+26 mln AUC: €-27 mln -94 -195 -211 -454 9M17 9M18 9M19 9M20 9M21 •

  15. Slide 15: Deposits, AUM and Insurance

    DEPOSITS, AUM AND INSURANCE €/mln 9M20 9M21 • Excellent dynamics of Insurance Reserves (+ 12.0% vs 9M20) and AUM (+19.9% vs 9M20). Net of CR Cento Sight / Saving Depo. 28,384 33,700 (~€1.6 billion), the aggregate stood at over €40.8 CD and Other Deposits 515 934 billion (+13.8% vs 9M20), mainly driv

  16. Slide 16: Bonds Issuances and Maturities

    BONDS ISSUANCES AND MATURITIES ISSUANCES MATURITIES Covered Bond 100 + 750 Covered Bond Wholesale 500: SNP 500 SNP 750: CB 850 200: T2 750 750 Tier 2 107.5: T2 500 Tier 2 Tier 2 1,250 CRVita CRVita 750 200 307.5 50 100 107.5 2019 2020 2021 2021 2024 2025 2026 2027 2028 2030 2031  On 21 October 2021

  17. Slide 17: Credit Quality: Gross NPL Ratio

    CREDIT QUALITY: GROSS NPL RATIO 900 GROSS NON PERFORMING LOANS 2019 600 578 2020 445 409 399 378 372 9M21 300 Disposals ~40+70mn Disposals ~33 mn 49 53 43 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 2.4

  18. Slide 18: NPL: Coverage

    NPL: COVERAGE Coverage incl. NPL (€/million) Gross Net Coverage Shortfall* Shortfall Bad Loans 409.1 117.0 71.40% 60.4 86.16% + Net NPL +400.5 UTP Loans 372.0 248.7 33.15% 5.0 34.50% - Shortfall -65.0 Total NPL 823.8 400.5 51.38% 65.0 59.27% = NPL Net of Shortfall 335.5  Net NPL kept declining, to

  19. Slide 19: Cost of Risk

    COST OF RISK 59 55 52 42 44 38 31 47 45 32 34 41 24 24 39 34 30 9 9 27 5 21 19 15 13 5 -10 -1 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q21 1H21 9M21 Cost of risk Cost of risk (net of non-recurring events) • Cost of risk is still in the negative area, at EVOLUZIONE STORICA -1 bp, given

  20. Slide 20: Assets & Liabilities

    ASSETS & LIABILITIES ASSETS The inclusion of CR Cento in the 31,461 29,849 1H21 scope of consolidation explained 9M21 the main movements on the 12,296 11,310 aggregates: • Loans to customers were up 6,949 6,838 6,853 6,075 4,713 • Growth of securities portfolio 4,111 continued in both the HTC and HT

  21. Slide 21: Liquidity Ratios

    LIQUIDITY RATIOS NSFR LCR 131% 267% 125% 126% 210% 199% 2019 2020 9M21E 2019 2020 9M21 LOAN TO DEPOSIT RATIO*  Both LCR e NSFR ratios were well above minimum capital requirements, enabling the 0.91 0.92 0.88 Group to have a greater flexibility in setting future funding strategies  ECB unencumbered

  22. Slide 22: Consolidated Capital Ratios

    CONSOLIDATED CAPITAL RATIOS CAPITAL AND CAPITAL RATIOS Credem Group Credemholding €, million 2020 9M21 2019 2020 9M21 CET 1 2,580 2,743 2,039 2,340 2,465 Total Capital 2,932 3,048 2,339 2,746 2,865 Capital absorption from: 1,324 1,422 1,206 1,337 1,436 Credit and Counterparty 1,184 1,271 1,048 1,184

  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

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