Banca Sistema S.p.A. · MIL:BST
Banca Sistema — H1 2018 Earnings Presentation
14 slides from Banca Sistema's earnings presentation, Jul 26, 2018
Slide 1: 1H 2018 Results
BANCA SISTEMA SPECIALTY FINANCE 1H 2018 RESULTS 26 July 2018
Slide 2: 1H 2018 Results at a Glance
1H 2018 Results at a Glance Factoring Turnover +29% y/y equal to €1,136m Commercial Steady contribution on factoring turnover from the agreements with bank, 31% performance CQS/CQP outstanding reached €571m, +60% y/y Adjusted Interest Income Margin in line with the Strategic Plan Net Interest Income
Slide 3: Core business assets outstanding is growing
Core business assets outstanding is growing Factoring outstanding CQ Loans outstanding €m Of which 23% under €m Legal action +60% y/y +33% y/y 1,640 571 357 1,229 30.06.2017 30.06.2018 30.06.2017 30.06.2018 Outstanding breakdown (30.06.2018) Outstanding breakdown by Type (30.06.2018) By Type of Prod
Slide 4: 1H 2018 – Balance Sheet
1H 2018 – Balance Sheet Figures in millions of Euro Loans at amortized cost up 16% IAS39 IFRS9 Change in % 31.12.2017 30.06.2018 (€2,181m): ASSETS Factoring receivables up +16% Fina ncia l as s ets a t fa ir va lue through P&L [Held to Sell] 1 100 nm at ̴€1.5bn, thanks to the turnover Fina ncia l as
Slide 5: 1H 2018 – Income Statement
1H 2018 – Income Statement Figures in millions of Euro IAS39 IFRS9 Change in % 30.06.2017 30.06.2018 Interes t i ncome 39.3 44.7 14% Interes t expens es (9.4) (12.1) 29% Net interest income 29.9 32.6 9% Net fee a nd commi s s i on i ncome 4.6 7.4 60% Di vi dends a nd s i mi l a r i ncome 0.2 0.2 nm
Slide 6: Total Income y/y and q/q in line with expectations
Total Income y/y and q/q in line with expectations 1H 2018 Interest Income y/y growth is driven by higher CQ contribution and Interest Income1 Total Income2 One-off from TLTRO factoring (both on Commercial and Tax Adjusted Interest Income Margin2 €m €m II funding lower contribution, -€0.8m receivabl
Slide 7: Operating costs slightly higher y/y, but in line with expectations
Operating costs slightly higher y/y, but in line with expectations Administrative Expenses, Net Provisions for Operating Costs Personnel Expenses risk, Servicing Costs, Other and D&A €m FTEs (#) 148 176 +8% 20.7 19.2 11.1 10.3 8.9 9.6 8.9 9.6 1.4 1.5 1H 2017 1H 2018 1H 2017 1H 2018 1 1H 22018 1H 201
Slide 8: Higher diversification and almost stable cost
Higher diversification and almost stable cost Total Funding Breakdown Total Funding Breakdown Excluding Funding Cost1 €0.8m • Cost of funding stable y/y 0.9% 0.9% 0.9% including the €0.8m one- Retail off, deriving from TLTRO II 53% Funding 49% cost increase from -40bps 43% Wholesale 43% to 0bps 25%
Slide 9: Asset Quality driven by factoring business
Asset Quality driven by factoring business Gross Non Performing Exposures Net Non Performing Exposures €m 173.5 159.1 146.9 143.3 135.7 53.4 121.0 44.9 34.7 44.6 31.9 30.8 32.3 23.4 37.6 27.6 24.1 15.4 89.4 88.8 74.7 76.6 73.3 76.2 31.12.2017 31.03.2018 30.06.2018 31.12.2017 31.03.2018 30.06.2018 Pa
Slide 10: Regulatory Capital well above minimun requirements
Regulatory Capital well above minimun requirements CET1 and Total Capital(1) RWA breakdown CET1 Total Capital €m €m Operational Risk & Market Risk (2) Credit Risk TC Ratio 15.0% 14.1% CET1 Ratio 11.8% 11.0% 164.7 169.9 1,200.9 1,097.1 129.1 131.9 949.7 1,048.7 147.4 152.2 31.03.2018 30.06.2018 31.03
Slide 11: Appendix
Appendix
Slide 12: Factoring Turnover
Factoring Turnover Factoring Turnover €m +29% 1,136 Turnover generated by agreements with Italian Retail banks: 883 31% in 1H 2018 (29% FY 2017) 1H 2017 1H 2018 1H 2018 Factoring Turnover breakdown By Type By Year of Customer’s Customer Concentration Acquisition Tax 1H 2018 receivables Before 2016 T
Slide 13: 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 14: Head of Investor Relations
Carlo Di Pierro Head of Investor Relations carlo.dipierro@bancasistema.it +39 02 80280358 +39 3355288794