Banca Monte Dei Paschi Di Siena S.p.a. · MIL:BMPS
Banca Monte Dei Paschi Di Siena — Q3 2017 Earnings Presentation
34 slides from Banca Monte Dei Paschi Di Siena's earnings presentation, Nov 7, 2017
Slide 1: 3Q17 GMPS Results
3Q17 GMPS Results 07 November 2017
Slide 2: Agenda
Agenda Executive Summary 3Q17 Results Annexes Details on 3Q17 Results Details on NPE Stock 2
Slide 3: Highlights of 3Q17 Results
Highlights of 3Q17 Results o Net profit for the quarter at EUR 242mln which includes several one-offs: effects of burden-sharing measures for c. EUR +554mln (mainly included in other revenues), the costs for the exit of 1,200 employees (c. EUR -280mln) and costs in connection with the FITD Voluntary
Slide 4: 3Q17 and 9M17 Results
3Q17 and 9M17 Results Change Change P&L (€ /mln) 2Q17 3Q17 9M16 9M17 (QoQ%) (YoY%) Net Interest Income 446 470 5.5% 1,519 1,374 -9.5% Fees and commissions 431 356 -17.5% 1,402 1,213 -13.5% Total revenues 920 1,370 49.0% 3,418 3,223 -5.7% Operating Costs -639 -626 -2.1% -1,929 -1,893 -1.9% Pre-provis
Slide 5: Capital Structure
Capital Structure 3Q results o CET1 reduction QoQ (-21bps), mainly due to the Phased-in CET1 ratio (%) result of the period, net of the contribution of 15.4% burden-sharing measures (included in pro-forma 15.2% 1H17, c. -55bps), partially offset by RWA decrease (c. +28 bps) o RWAs decrease by EUR 1.
Slide 6: UT2 Retail Settlement and Fresh 2008
UT2 Retail Settlement and Fresh 2008 Retail settlement Currrent shareholders Offer on behalf of MEF to buy shares resulting from the conversion of Former UT2 2008-2018, in exchange for BMPS senior securities with same AT1/AT2 maturity (May 2018), provided investors meet the following criteria: i)
Slide 7: Restructuring Plan Update
Restructuring Plan Update In line with Restructuring Plan o 1,800 staff exits (out of the 4,800 planned by 2021) already achieved in 2017 (~38% of the Restructuring Headcount Plan target) reduction o One-off costs for c. EUR 280mln booked in 3Q17 for 1,200 exits on top of EUR 117mln booked in 4Q16 f
Slide 8: Agenda
Agenda Executive Summary 3Q17 Results Annexes Details on 3Q17 Results Details on NPE Stock 8
Slide 9: Direct Funding and Liquidity
Direct Funding and Liquidity Direct Funding (€/bn) 105.5 104.6 106.5 103.0 Commercial funding continues to increase: current 6.1 4.5 7.5 accounts and time deposits up by approx. EUR 11bn 9.5 23.7 23.7 (+21.5%) from 2016 year-end and by EUR 1.6bn QoQ 26.2 18.5 13.7 25.3 14.8 12.9 Direct funding e
Slide 10: Customer Loans
Customer Loans Loans to Customers (€/bn) Customer loans evolution (EUR +1.3bn QoQ): 104.6 106.7 91.0 22.0 20.5 89.7 EUR +3bn QoQ due to the increase in repos for a 7.2 6.3 19.4 18.9 temporary investment of liquidity coming from capital 6.7 6.0 49.5 increase and commercial funding 50.5 47.7 8.9 4
Slide 11: Net Interest Income
Net Interest Income Net Interest Income (€/mln) Net interest income +5.5% QoQ, positively impacted by effects of 503 the conversion of subordinated bonds (+EUR 51mln for write-off of 484 interest accrued since last coupon) +5.5% 470 457 The conversion of the subordinated bonds leads to a c. EUR
Slide 12: Fees and Commissions Income
Fees and Commissions Income 3Q17 vs. 3Q17 vs. €/mln 3Q16 2Q17 3Q17 3Q16 2Q17 Fees (€/mln) Wealth Management fees, o/w 180 197 169 -5.7% -14.1% Acquiring -17.5% WM Placement 81 93 70 -14.4% -25.5% 462 437 426 431 Continuing 78 84 83 5.8% -1.0% 26 356 Bond Placement 12 11 8 -31.0% -22.0% 23 22 23 Prot
Slide 13: Dividends and Trading Income
Dividends and Trading Income Dividends/ Income from investments Dividends, similar income and gains (losses) on equity (€/mln) investments equal c. EUR 22mln in 3Q17, fully ascribable to 23 26 22 the AXA contribution 21 11 3Q16 4Q16 1Q17 2Q17 3Q17 Trading/disposal/valuation/hedging of financial
Slide 14: Operating Costs
Operating Costs Total operating costs down 2.1% QoQ, with: Operating Costs (€/mln) 692 Personnel expenses down 1.6% QoQ mainly due to the c. 600 -2.1% exits in May 2017; further 1,200 exits in November 2017, 650 reaching ~38% of the Restructuring Plan target (1,800 out of 639 4,800 exits through t
Slide 15: Non-Operating Items and Taxes
Non-Operating Items and Taxes Non-operating Items (€/mln) Non-operating income (EUR -352mln) includes: 484 EUR -31mln for the full year contribution to the DGS Fund EUR -18mln for the quarterly contribution to DTA fees introduced by Law Decree 59/2016 EUR -17mln for write-off of equity stake
Slide 16: Focus on Asset Quality (1/3)
Focus on Asset Quality (1/3) Net Loan Loss Provisions (€/mln) Cost of Risk* (bps) Extraordinary component** Extraordinary component** 4,289 554 526 Including 419 2,445 cEUR 18mln related to 258 1,303 securitisation 120 308 175 162 177 147 119 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 FY16 1Q17 1H17 9M17 Non-per
Slide 17: Focus on Asset Quality (2/3)
Focus on Asset Quality (2/3) Delta Gross NPEs stock* (€/bn) Gross NPE stock at EUR 45bn, reduced by EUR 0.5bn from Jun-17 0.3 0.2 0.2 Inflows* from performing at EUR 0.3bn Outflows* to performing at EUR 0.1bn Bad loans recovered for EUR 0.2bn* (EUR 0.6bn in 9M17 vs. EUR 0.5bn in 9M16) UTP
Slide 18: Focus on Asset Quality (3/3)
Focus on Asset Quality (3/3) NPE Inflows from Performing* NPE Outflows to Performing* (€/bn) Default rate (€/bn) Cure rate 2.1% 5.9% 0.7 0.6 0.4 0.6 0.4 0.3 0.2 0.1 0.1 0.1 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q17 Recovery of Bad Loans* (€/mln) Migration from UTPs/PDs to Bad Loans* (€/bn) D
Slide 19: Pro-Forma Asset Quality Key Metrics
Pro-Forma Asset Quality Key Metrics Gross NPEs (€/bn) Gross NPE MixGross (%) Gross NPE NPE MixMix (%)(%) 0.8bn 0.8bn 0.8bn 45.5 45.0 2% 0.8bn 4% 5% 0.8bn 0.8bn 12.4bn 27% 28% 12.4bn 12.4bn 12.4bn 12.4bn 12.4bn 63% 73% 19.6 17.0 71% 31.9bn 6.4bn 3.9bn Legend for 9M17 data: 31.9bn 6.4bn 33% 3.8bn 23%
Slide 20: Agenda
Agenda Executive Summary 3Q17 Results Annexes Details on 3Q17 Results Details on NPE Stock 20
Slide 21: 3Q17 and 9M17 P&L: Highlights
3Q17 and 9M17 P&L: Highlights Change Change € mln 2Q17 3Q17 9M16 9M17 (QoQ%) (YoY%) Net Interest Income 446 470 5.5% 1,519 1,374 -9.5% Net Fees 431 356 -17.5% 1,402 1,213 -13.5% Other revenues 42 544 n.m. 496 636 28.2% Total revenues 920 1,370 49.0% 3,418 3,223 -5.7% Operating Costs -639 -626 -2.1%
Slide 22: Balance Sheet
Balance Sheet Total Assets (€/mln) Sep-16 Jun-17 Sep-17 QoQ% YoY% Customer loans 104,612 89,713 91,041 1.5% -13.0% Loans to banks 7,669 13,116 12,897 -1.7% 68.2% Financial assets 35,748 24,090 25,403 5.5% -28.9% PPE and intangible assets 3,017 2,845 2,834 -0.4% -6.1% Other assets* 9,082 13,826 12,92
Slide 23: Lending & Direct Funding
Lending & Direct Funding Total Lending (€/mln) Sep-16 Jun-17 Sep-17 QoQ% YoY% Current accounts 7,192 6,684 6,033 -9.7% -16.1% Mortgages 50,476 47,867 47,682 -0.4% -5.5% Other forms of lending 22,042 19,412 18,907 -2.6% -14.2% Reverse repurchase agreements 1,249 4,145 7,064 70.4% n.m. Loans represent
Slide 24: Asset Under Management and Under Administration
Asset Under Management and Under Administration Indirect Funding (€/bn) WM Mix (€/bn) WM AuC Individual Portfolio under mgmt Life Insurance Policies 98.4bn 96.6bn 98.2bn Mutual Funds/Sicav 56.9bn 57.6bn 57.8bn 41.6 39.0 40.4 6.7 6.3 6.1 23.6 23.7 23.8 56.9 57.6 57.8 26.6 27.7 27.9 Sep-16 Jun-17 Sep-
Slide 25: Financial Assets: Focus on Italian Govies Portfolio
Financial Assets: Focus on Italian Govies Portfolio Financial Assets (€/mln) Italian Government Bonds: ~EUR 19bn* (Market Value) Credit spread Breakdown by IAS category sensitivity: (1bp change) Sep-17 QoQ% YoY% ~EUR -5.8mln before tax HFT 10,102 4.0% -46.1% AFS HFT AFS 15,301 6.4% -10.0% 70.3% 29.7
Slide 26: Non Performing Exposures
Non Performing Exposures Non Performing Exposures - NPEs* (€/mln) Net Net NPE Gross Coverage Gross NPE QoQ (%) YoY (%) QoQ (%) YoY (%) Sep-17 Ratio** (%) Sep-17 (%) Ratio *** (%) Bad loans (sofferenze) 7,272 3.5% -33.3% 7.6% 31,852 2.0% 12.8% 77.2% 25.2% Unlikely-to-Pay 7,281 -8.8% -27.7% 7.6% 12,37
Slide 27: Agenda
Agenda Executive Summary 3Q17 Results Annexes Details on 3Q17 Results Details on NPE Stock 27
Slide 28: Bad Loans and UTPs
Bad Loans and UTPs o Borrower in gone concern status and with activated legal actions EUR 31.9bn o Management of new bad loans: 80% outsourced to Cerved/Quaestio, 20% managed internally EUR -26.1bn* Bad o Disposals to be completed in 2018 of EUR 28.6bn bad loans: EUR 26bn through a securitisation an
Slide 29: Restructured Unlikely-to-Pay
Restructured Unlikely-to-Pay* Borrower with restructuring plan with lending banks agreed or under negotiation Restructured Borrower to be moved back to performing only according to strict criteria (i.e. respecting the restructuring plan for a defined UTPs cure period of at least one year and par
Slide 30: Restructured Unlikely-to-Pay
Restructured Unlikely-to-Pay* Breakdown by Guarantees (€/bn) Breakdown by Vintage (€/bn) Tickets # GBV Coverage NBV % NBV GBV < 3Y > 3Y Secured 448 2.4 39.7% 1.5 45.1% Secured 2.4 81.3% 18.7% Personal guarantee 318 0.8 54.7% 0.4 11.4% Personal guarantee 0.8 84.7% 15.3% Unsecured 618 2.4 42.1% 1.4 43
Slide 31: Other Unlikely-to-Pay
Other Unlikely-to-Pay* Borrower in going concern status or into voluntary liquidation of own assets (the borrower agrees to voluntary liquidate all or part of own assets and use proceeds to reimburse creditors, sometimes partially, under a negotiated agreement) Other UTPs Borrower can be moved b
Slide 32: Other Unlikely-to-Pay
Other Unlikely-to-Pay* Breakdown by Guarantees (€/bn) Breakdown by Vintage (€/bn) Tickets # GBV Coverage NBV % NBV GBV < 3Y > 3Y Secured 14,823 4.1 34.3% 2.7 66.8% Secured 4.1 89.9% 10.1% Personal guarantee 13,815 1.1 48.7% 0.5 13.3% Personal guarantee 1.1 84.8% 15.2% Unsecured 89,325 1.6 48.2% 0.8
Slide 33: First 100 NPEs at 30.09.2017
First 100 NPEs at 30.09.2017 61% of the first 100 NPEs** are customers shared with other banks*** % GBV on #tickets GBV (€/mln) NBV (€/mln) Coverage (%) Total NPEs* Top 100 100 4,989 2,039 59% 11.3% of which Bad Loans 39 1,682 286 83% 3.8% of which Unlikely to Pay Loans 61 3,307 1,753 47% 7.5% Custo
Slide 34: Disclaimer
Disclaimer THIS DOCUMENT IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THE INFORMATION IN THIS DOCUMENT, WHICH WAS PREPARED BY BANCA MONTE DEI PASCHI DI SIENA S.P.A. (THE “COMPANY” AND TOGETHER WITH ITS CONSOLIDATED SUBSIDIARIES, THE “GROUP”), MAY BE SUBJECT TO UPDATING, REVISION AND AMENDME
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