Credito Emiliano S.p.a. · MIL:CE

Credito Emiliano — Q1 2023 Earnings Presentation

23 slides from Credito Emiliano's earnings presentation, 2023

  1. Slide 1: Group Results 1Q23

    yr S= GROUP RESULTS 1023

  2. Slide 2: 1Q23: Loans Growth and Asset Quality

    1Q23: LOANS GROWTH AND ASSET QUALITY LOANS GROWTH Loans to customers stood at 33.8 billion, up by +3.2% 3.2% YoY, more than 3.5 p.p. compared to the Industry, down by 0.4% YoY -0.4% 1Q23 ASSET QUALITY Gross NPL Ratio Gross NPL Ratio at 2.1%, lower than the EU average (2.3%) and well below the averag

  3. Slide 3: 1Q23: Profitability and Capital Soundness

    1Q23: PROFITABILITY AND CAPITAL SOUNDNESS PROFITABILITY Net profit up by neairly 69% YoY 134.8 Profitability ratios at the highest level in the MLN 19.0% 16.3% Industry, ROTE and ROE at 19.0% and 16.3% respectively UTILE NETTO ROTE ROE 1Q23 CAPITAL SOUNDNESS 14.0% Capital soundness confirmed at the

  4. Slide 4: Business Diversification

    BUSINESS DIVERSIFICATION Operating Income 357.6 331.1 352.5 437.3 475.6 Core Operating Income** 318.6 329.0 345.4 429.5 425.5 €/million 0.0% 0.3% 0.5% 0.2% 2% 10.9% 0.4% 1.6% 1.6% 9% 44% 47% 36% 51% 49% 53% 55% 51% 47% 40% 1Q22 2Q22 3Q22 4Q22 1Q23 Core NIM on Operating Income NII on Operating Income

  5. Slide 5: A Growing Digital Approach

    A GROWING DIGITAL APPROACH 1 INTERNET BANKING RETAIL • >722,000 contracts (+4.3%% vs Mar. ‘22) 3 • +6.5% of online operations vs Mar. ‘22 • Incidence on bank accounts at 72% vs INTERNET BANKING - CORPORATE 70% in Mar.’22 • >143,000 active clients (+3.5% vs Mar. ‘22) • Incidence on bank accounts at m

  6. Slide 6: Reclassified Income Statement

    RECLASSIFIED INCOME STATEMENT ∆ vs ∆ vs €/million 1Q22 4Q22 1Q23 • Remarkable Revenue trend (+33% vs 1Q22), thanks 1Q22 4Q22 to the growth of NII, the resilience of AUM fees, and Net Interest Income 129.0 223.5 234.8 82.0% 5.1% the good performance of Income from Financial Non Interest Margin 228.6

  7. Slide 7: Net Interest Income (1/3)

    NET INTEREST INCOME (1/3) Net Interest Income (€/mln) Euribor and BTP/Bund spread 223 209 192 6.0% 5.9% 235 149 5.8% 5.7% 5.6% 5.5% 5.4% 224 187 5.3% 5.2% 5.1% 5.0% 4.9% 4.8% 4.7% 4.6% 4.5% 4.4% 4.3% 4.2% 4.1% 4.0% 3.9% 3.8% 2.63% 3.7% 3.6% 3.5% 3.4% 3.3% 3.2% 3.1% 3.0% 2.9% 1.77% 2.8% 2.7% 2.6% 2.5

  8. Slide 8: Net Interest Income (2/3)

    NET INTEREST INCOME (2/3) Loans to customers Deposit rate 3.66 0.72 3.16 0.57 2.99 2.54 0.44 0.44 0.47 2.35 2.14 2.18 0.40 1.81 1.53 1.57 0.15 0.08 0.04 0.04 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 Credem: average loans rate Industry: average loans rate Credem: average deposit rate Industr

  9. Slide 9: Net Interest Income (3/3)

    NET INTEREST INCOME (3/3) Securities portfolio breakdown (€/mln, %) Italian government bond (€/bn) 6.2 6.0 6.0 14,060 14,824 14,656 14,683 12,996 5.6 4.7 Ita Govies 1Q23 HTC 4.4 HTCS 0.3 40% 42% 41% 41% 38% FVTPL 0.0 Total 4.7 1Q22 1H22 9M22 FY22 1Q23 4% 4% 4% 4% 4% • After some profit taking at the

  10. Slide 10: Non Interest Margin

    NON INTEREST MARGIN Total *(€/mln) 228.6 185.8 188.1 213.8 240.8 Performance Fees 38.9 6.8 40.5 Income from Financial 1.2 5.5 Activities 54.3 58.7 53.6 56.0 55.9 Banking Fees 15.9 26.9 12.3 16.2 21.7 Insurance Income 114.3 107.8 103.4 110.1 109.3 Asset Management and Brokerage Fees 1Q22 2Q22 3Q22 4Q

  11. Slide 11: Operating Costs and D&A

    OPERATING COSTS AND D&A Operating costs (€/mln) Employees 200 194 185 216 210 6,608 6,616 6,622 6,195 6,201 6,219 6,068 6,140 5,899 5,763 66 63 5,544 5,519 5,604 5,609 57 57 55 143 137 151 147 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 130 Financial Advisors 1Q22 2Q22 3Q22

  12. Slide 12: Loans to Customers

    LOANS TO CUSTOMERS Loans to customers (€/bn) Other Loans 10.0 9.8 10.1 10.2 9.9 Residential Mortgage 9.9 10.1 Leasing 9.6 9.7 9.8 Consumer Finance 3.0 3.1 3.2 3.2 3.0 2.4 2.5 2.7 2.8 2.2 7.9 8.3 8.0 8.8 7.9 1Q22 1H22 9M22 2022 1Q23 Total 32.8 33.5 33.2 34.5 33.8 Loans to Customers kept rising (+3.2%

  13. Slide 13: Group Customers Funding: Net Inflows Breakdown

    GROUP CUSTOMERS FUNDING: NET INFLOWS BREAKDOWN 1,616 AUC Direct Deposits AUM + Insurance Total Net Inflows 1,233 1,338 945 573 697 564 481 285 155 193 58 -18 -28 -181 -74 -146 -226 -203 -394 1Q19 1Q20 1Q21 1Q22 1Q23 • Total net production was positive at 1.6 billion, with a strong increase compared

  14. Slide 14: Deposits, AUM and Insurance

    DEPOSITS, AUM AND INSURANCE Total funding Direct deposits & retail bonds** €/mln 1Q22 FY22 1Q23 +7.2% YoY Sight / Saving Depo. 33,241 35,378 35,735 Industry Credem CD and Other Deposits 962 914 936 +153% Direct Deposits 34,203 36,292 36,671 Insurance Reserves* 8,597 7,704 8,034 -1.6% YoY Portfolio M

  15. Slide 15: Bonds Issuances and Maturities

    BONDS ISSUANCES AND MATURITIES Issuances (€/mln) Maturities (€/mln) Covered Bond 100 + 750 Green Bond SP 600 CB 500 + Green Bond SP 600 600+ SNP 500 + +Social T2* 200 CB 750 Covered 200 Bond Covered Covered Bond 600 500 SNP Bond Tier 2* 200 + 1,250 T2 CRVita 850 107.5 750 Social 750 500 500 Tier 2*

  16. Slide 16: Credit Quality: Gross NPL Ratio

    CREDIT QUALITY: GROSS NPL RATIO 900 2021 Gross Non Performing Loans (€/mln,%) 2022 600 398 378 373 363 1Q23 321 320 300 Bad Loans Disposal ~86 mn 43 42 43 0 Gross Bad Loans Gross UTP Loans Gross Past Due Loans % on Loans (Credem) 1.2 0.9 0.9 1.2 1.1 1.1 0.1 0.1 0.1 % on Loans (Industry)* 1.8 1.2 1.1

  17. Slide 17: NPL: Coverage

    NPL: COVERAGE NPL (€/mln) Gross Net Coverage Bad Loans 319.6 78.1 75.6% UTP Loans 363.0 203.8 43.9% Past Due 42.5 35.0 17.6% Total NPL 725.1 316.9 56.3% + Net NPL +316.9 NPL Coverage - (Shortfall + Addendum + Calendar) -38.7 NPL Net of Shortfall 278.2 80.0% 75.6% Coverage incl. Shortfall 61.6% 70.0%

  18. Slide 18: Cost of Risk

    COST OF RISK 59 55 52 42 44 34 38 31 47 45 32 41 24 24 34 39 19 16 15 27 30 5 21 15 10 13 11 Figures in bps 4 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 Cost of risk Cost of risk (net of non-recurring events) • Cost of risk stood at +5 bps, confirming the high 70 62 59 ass

  19. Slide 19: Assets & Liabilities

    ASSETS & LIABILITIES Assets (€/mln) 34,483 33,800 • Both the securities portfolio and customer 2022 1Q23 loans decreased due respectively to some profit-taking in the first quarter (mainly on HTC) and due to the usual seasonality 9,008 8,374 8,214 7,810 7,337 5,474 of the first quarter 6,199 4,074 •

  20. Slide 20: Liquidity (1/2)

    LIQUIDITY (1/2) Liquidity Reserves (€/bn) • The total value of the Group's Liquidity 14.7 Reserves increased compared to the Total end of 2022, reaching a total amount of 12.8 14.7 billion Other ECB eligible 2.5 • The value of Cash and deposits with unencumbered assets 2.4 Central Banks increased, r

  21. Slide 21: Liquidity (2/2)

    LIQUIDITY (2/2) NSFR LCR 251% 141% 140% 232% 137% 205% 2021 FY22 1Q23E 2021 FY22 1Q23 Loan to Deposit Ratio* 0.93 0.95 0.90 • Liquidity ratios were confirmed well above minimum capital requirements, enabling the Group to have a greater flexibility in setting future funding strategies and an excellen

  22. Slide 22: Consolidated Capital Ratios

    CONSOLIDATED CAPITAL RATIOS Fully phased data Fully phased data Credem Group Credemholding €, million 2022* 1Q23 2022* 1Q23 CET 1 2,916 2,932 2,649 2,665 Total Capital 3,320 3,347 3,193 3,220 Capital absorption from: 1,503 1,512 1,515 1,524 Credit and Counterparty 1,333 1,341 1,332 1,340 Market 9 10

  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

Credito Emiliano S.p.A. (Credem Group) — Q1 2023 Earnings Presentation on 6ix