Banca Ifis S.p.a. · MIL:IF
Banca Ifis — Q1 2018 Earnings Presentation
19 slides from Banca Ifis's earnings presentation, May 2018
Slide 1: Presentation Financial Results May 2018
erie MAY 2018 PRESENTATION 102018 _4 FINANCIAL RESULTS inne
Slide 2: Highlights
HIGHLIGHTS STRONG • Net banking income at 139,4 mio due to strong FINANCIAL contribution of the NPL BU and double digit growth of PERFORMANCE Enterprises Segment • Net profit at 37,9 mio with cost of credit at 73 b.p. ….WITH SOLID • Shareholder’s equity at 1.413,0 with CET1 15,49 BALANCE SHEET ….AND
Slide 3: Insights for the understanding of the results
INSIGHTS FOR THE UNDERSTANDING OF THE RESULTS • New segment reporting MAIN • Valuation risk model metrics extended to a part of NPL DISCONTINUTY positions included in the WIP process of the legal factory IN NUMBERS • Reversal PPA REPORTED • IFRS9 first time adoption 2018-2017 • New funding structure
Slide 4: Margins (NBI and NPFA) by segment
MARGINS (NBI and NPFA*) (Million Euro) – NBI 1Q 2018 by segment NBI: 139,4 60,0% 56,4% 50,0% 46,7% 40,0% ( 103,5 1Q2017) +34,6% 30,0% NPFA*: 128,4 20,0% 10,0% 0,0% -10,0% -3,1% (101,4 1Q2017) +26,7% Enterprises NPL Area G&S Data Enterprises Area NPL G&S Total 1Q NBI 2018 78,6 65,1 -4,3 139,4 NBI 201
Slide 5: Trade receivables (Factoring + m/l term lending)
TRADE RECEIVABLES* (Factoring +m/l term lending) TURNOVER € Bn 3,7 2,7 2,9 • Turnover 2,9 mln up 7,3% vs 1 Q 2017 due to increase in n. of clients (+3%) • Outstanding 3,6 bn (+2,2%) vs 1 Q 2017 • Loans 3208 mn +5,6% vs 4 Q 2017 (LFL -5,1% due 1 Q 2017 1 Q 2018 4 Q 2017 to seasonality) NET BANKING IN
Slide 6: Corporate banking
CORPORATE BANKING* CUSTOMERS LOANS & NEW VOLUMES € m 92,3 95,0 116,5 964,0 1060,0 • New loans at 95,0 in 1Q 2018; loans up by 18% at 736,0 LFL perimeter (M/L term lending not anymore included in this area) 1 Q 2017 4 Q 2017 1 Q 2018 • Outstanding loans at 736 m € up by 9% vs 4Q 2017 NET BANKING INCO
Slide 7: Leasing
LEASING LOANS € m • #clients: 71.613 • New loans at 172 mn € (+13% vs 1 Q 2017) 1389 • LFL leasing loans 1269,7 1298,2 1298 increased by 2,2%, 1258 1126,0 excluding a real estate mortgage portfolio, riclassified 1 Q 2017 4 Q 2017 1 Q 2018 1 Q 2017 4 Q 2017 1 Q 2018 in G&S. NET BANKING INCOME €m • NB
Slide 8: Tax receivables
TAX RECEIVABLES LOANS € m 132,8 • Loans increased by 0,3% 130,6 130,9 1 Q 2017 4 Q 2017 1 Q 2018 NET BANKING INCOME €m 2,9 3,6 2,7 • NBI decreased by 7,0% due to lower activity in 1 Q 2018 vs 1 Q 2017 1 Q 2017 4 Q 2017 1 Q 2018 PURCHASE €m 84,8 • GBV €m 175,3 m€ 21,2 13,9 1 Q 2017 2017 1 Q 2018 8
Slide 9: NPL Area: gross and net book value
NPL AREA GROSS BOOK VALUE Bn €) 14 13,1 13,0 12 9,7 10 8,2 8 5,6 6 3,5 3,9 4 2 0 2012 2013 2014 2015 2016 2017 1Q2018 ERC 15 yrs over 1,8 bn NET BOOK VALUE Bn €) 850 799 832 • #Total Positions: 1,5mln 650 562 • Average Ticket: 8k€ 450 • #Total Debtors: 1,1mln 354 250 128 135 104 50 2012 2013 2014 20
Slide 10: NPL Area: purchases and cash collected
NPL AREA PURCHASES IN GBV €Bn NBV/GBV 5,0 4,8 4,1 4,0 3,1 6,4% 3,0 5,8% 6,1% 2,0 4,3% 2,0 1,6 1,2 3,0% 3,3% 1,0 0,5 2,4% 0,0 0,0 2012 2013 2014 2015 2016 2017 1Q 1Q 2017 2018 2012 2013 2014 2015 2016 2017 1Q2018 YEAR/QUARTER CASH COLLECTED €m 140 128,3 120 100 78,2 80 60 40,0 40,1 CASH COLLECTED 40
Slide 11: NPL Area: NBI and net profit from financial activity
NPL AREA ) NET BANKING INCOME/ NET PROFIT from FINANCIAL ACTIVITY €m NBI up by 113% vs 1 Q 2017 19,7 m€ impact mainly due to first adoption of a risk value model on a tranche of legal 200 positions 164,5 148,3 150 100 Proprietary technology 65,1 coordinating and managing 52,7 1000 professionals and
Slide 12: NPL Area: portfolio by recovery stage
NPL AREA 1 Q 2018 data Collection NPL Gross Value Book Value/NPL Contribution on Cash Portfolio Portfolio P&L Internal and External Non Judicial Recovery Payment Plans 607 mln 138 mln 23% 21 mln 16 mln Department Order of Assignment Wage 414 mln 149 mln 36% 27 mln 15 mln Legal Recovery Department Ju
Slide 13: Focus on operating expenses
FOCUS ON OPERATING EXPENSES 1Q 2018 data; Million Euro 80 Breakdown Other Admin Expenses 70 16,2 13,8 14,0 4,9 60 12,3 16,5 1 Q 2017 1 Q 2018 50 48,5 46,6 Expenses for purchasing goods and other services Direct and indirect taxes 40 31,1 Expenses for professional services 33,2 30 Personnel expenses
Slide 14: Net profit
NET PROFIT 1 Q 2018; Million Euro 37,9 Mln 1 Q 2018 32,7 Mln 1 Q 2017 Net profit up by 15,8% 33,2 139,4 11,0 73,4 17,1 180,8 37,9 NBI Provisions Operating costs Taxes Net profit 14
Slide 15: Balance sheet – asset structure
BALANCE SHEET – ASSET STRUCTURE (Million Euro) % change 1Q 2018 vs 31.12.2017 Loans to customers NPL up by 4,1% 6.457,2 +1,0% 5.373,2 Enterprises First time 831,8 Area NPL 252,2 G&S consolidation of Cap.Ital.fin S.p.A. Financial Asset =604,4 According to ifrs9 through P&L 35,0 (HFT) Adoption of IFRS
Slide 16: Asset quality & NPE trend in Enterprises segment
ASSET QUALITY & NPE TREND in ENTERPRISES segment 1 Q 2018 mln € Net Customer Loans Net NPE 6.000 180 343 343 160 5.000 140 4.000 120 100 3.000 80 2.000 60 40 1.000 20 63 63 160 166 120 114 5.030 5.114 0 0 NPL UTP Past Due 31/03/2018 31/12/2017 Exposure Performing Impaired 31/03/2018 31/12/2017 31/03
Slide 17: Funding structure
FUNDING STRUCTURE 1 Q 2018 mln € Flexible and diversified funding structure The diversification has been achieved by: 4,3% 4,1% 9,1% 9,2% • Reducing share of Repos with 11,0% customers to zero 12,8% 10,2% 10,5% • Renewing focus and attractiveness of retail funding through the introduction of 3y, 4y,
Slide 18: Banca IFIS Group: equity KPIs
BANCA IFIS GROUP: EQUITY KPIs 1Q 2018 mln € Banca IFIS Group only KPIs 2018 2017 31/03 31/12 Common Equity Tier 1 Ratio (CET1) 15,49% 15,64% Tier 1 Capital Ratio (T1) 15,49% 15,64% Total Own Fund Capital Ratio 20,91% 21,07% Book value share 26,44 25,62 18
Slide 19: Forward-looking statements disclaimer
This Presentation may contain written and oral “forward-looking statements”, which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections