Credito Emiliano S.p.a. · MIL:CE
Credito Emiliano — Q1 2016 Earnings Presentation
23 slides from Credito Emiliano's earnings presentation, 2016
Slide 1: Group's Results 1Q 2016
Group’s Results 1Q 2016
Slide 2: 1Q16 Highlights
1Q16 Highlights Strong Deposits expansion, with 1Q2016 new inflows reaching a peak and growing +46% YoY. In the quarter, Total Deposits from Customers (Direct Deposits & Retail Bonds) grew above €450 million and Insurance Reserves by nearly 250 million. AUM decreased by almost €300 million, exclusiv
Slide 3: Income Statement
Income Statement % vs. % vs. Operating Income Euro Million 1Q15 4Q15 1Q16 1Q15 4Q15 (net of Trading and Performance Fees) Euro Million Decrease due to Italian Operating 353.1 267.8 284.4 -19.5% 6.2% government bonds disposal Income 260 Operating 248.8 247.7 245.4 250 Income net of 253.0 253.4 245.4
Slide 4: Net Interest Margin (1/3)
Net Interest Margin (1/3) Quarterly Net Interest Margin Although negative interest rates environment Euro Million and harsher competive scenario, Net Interest 130 Margin remained substantially stable 120 126 compared to 4Q15 (-1.8% QoQ, also due to a 124 122 110 119 117 lower number of days in the q
Slide 5: Net Interest Margin (2/3)
Net Interest Margin (2/3) Evolution of Average Loan Rate Evolution of Average Deposit Rate (Credem SpA management accounting) (Credem SpA management accounting) % % 4.00 3.79 3.79 2.50 3.33 3.42 3.50 3.18 3.20 1.96 2.00 - 0.74% 3.00 - 0.46% - 0.61% 2.70 1.68 2.45 - 0.76% 2.50 - 0.72% 1.50 1.30 - 0.7
Slide 6: Net Interest Margin (3/3)
Net Interest Margin (3/3) Variazione degli impieghi Securities’ Portfolioalla clientela Breakdown Throughout the quarter, the Group took (Credem SpA management accounting) advantage from the partial disposal of the 100% european government and supranational 13% bonds portfolio 90% «Italy risk» expos
Slide 7: Non Interest Income
Non Interest Income Non Interest Income: Quarterly Evolution 246.9 Performance Fees 250 Trading 200 169.5 97.1 163.1 0.2 € Million 141.7 154.1 150.8 133.8 138.9 10.00 137.0 7.9 Other 150 39.1 5 15.9 38.8 5.4 13.2 3.4 5.4 2.9 6.5 4.9 4.9 3.8 4.3 5.0 5 4.5 49.3 Banking Fees 100 47.9 52.5 48.9 48.6 52.
Slide 8: AUM and Insurance Reserves
AUM and Insurance Reserves Third Parties’ Products Breakdown by Asset AUM and Insurance Reserves Evolution Class (Group management reporting) 100% 25,000 5,513 5,748 20% 21% 24% 22% 4,942 5,127 5,336 80% 4,409 20,000 3,236 60% 40% 45% 52% 51% 15,000 40% 21,924 22,002 21,745 22,543 22,252 20,208 17,6
Slide 9: Group's customer funding: net inflows evolution
Group’s customer funding: net inflows evolution Net Inflows evolution 1,300 1,266 1,100 982 900 840 700 690 574 511 468 500 300 259 70 100 -103 -100 -63 -103 -334 -300 -229 -468 -358 -500 1Q13 1Q14 1Q15 1Q16 AUC Direct Deposits AUM Total Net Inflows Despite troubled situations experienced by the ban
Slide 10: Operating Costs
Operating Costs Operating Costs: Quarterly Evolution Employees/ Networks Euro Million Employees 179 200 167 164 167 176 174 162 172 6,200 5,993 5,992 157 6,000 5,899 150 57 5,740 5,763 54 52 45 55 57 49 5,800 5,6045,609 48 50 5,5445,519 5,600 100 5,400 5,200 50 113 113 109 122 121 117 112 123 123 20
Slide 11: Loans to Customers
Loans to Customers Loans to Customers (net of Repos with Institutional and Loans to Group’s SPVs) € Mil. 24,000 22,649 21,508 20,834 21,642 19,721 19,949 19,938 18,770 3,755 20,000 17,536 3,339 3,278 3,742 3,324 3,370 3,056 2,577 3,323 16,000 6,392 6,235 6,242 6,410 6,282 6,241 6,127 12,000 5,534 5,
Slide 12: Loans: comparison with the Industry
Loans: comparison with the Industry Loans to Retail and Public Sectors Growth Rates Market shares on retail and corporate customers and small business (net of financial institutions) (Credem SpA management reporting) 9.0% 7.9% 7.0% 7.0% 5.3% 1.58% 1.55% 5.1% 1.6% 5.0% 4.2% 3.9% 1.45% 3.0% 2.2% 1.2%
Slide 13: Residential Mortgages: comparison with the Industry
Residential Mortgages: comparison with the Industry Residential Mortgages Inflows The positive evolution of new residential (Credem SpA management reporting) mortgage sales was confirmend also in 1Q16, with inflows increasing by more than 20% YoY Residential Mortgages’ Market Share, at its peak sinc
Slide 14: Deposits, Bonds and AUM
Deposits, Bonds and AUM Euro, Million 2012 2013 2014 2015 1Q16 In 1Q16, the substantial growth of Direct Sight/ Saving Deposits & Retail Bonds continued (+€478 13,066 13,625 15,335 16,979 17,545 Deposits million, +2.4% QoQ), driven by sight CD and Other deposits. Insurance Reserves grew as 256 260 3
Slide 15: Bonds issued and future maturities
Bonds issued and future maturities Bonds Issued Bonds Maturities (Credem SpA management account) (Credem SpA management account) € Million € Million 2,500 2,000 1.000 365 1,500 800 Retail Bonds 1,473 1,407 1,000 600 1,500 989 500 938 400 - 523 600 38 312 249 - 0 200 2010 2011 2012 2013 2014 2015 1Q1
Slide 16: Credit Quality
Credit Quality Gross Non Performing Loans 909.7 926.8 900 837.9 1Q15 € Millions 600 451.0 466.2 2015 416.0 300 1Q16 111.1 70.0 62.9 0 Gross Bad Loas Gross Unlikely to Pay Loans Gross Past Due Loans % on Loans (Credem) 3.9 3.9 4.2 1.9 1.9 2.1 0.5 0.3 0.3 % on Loans (Sistema) 9.3 9.7 6.3 6.1 0.8 0.7 Q
Slide 17: Non Performing Loans' Coverage
Non Performing Loans’ Coverage Net Non Performing Loans Total Net NPLs are have being fairly stable for the last 9 quarters Euro, Million 2013 2014 1Q15 2015 1Q16 Net Bad Loans 334.4 341.7 356.8 366.5 Net Bad Loans Ratio landed at 1.69% in the 1Q16 vs. 4.60% of the industry** Unlikely to Pay 362.8 3
Slide 18: Cost of Risk
Cost of Risk Cost of Risk (bps) 70 70 59 60 60 55 52 51 52 50 37 39 40 47 45 28 41 39 39 41 30 37 31 20 27 10 19 - 2013 1Q14 1H14 9M14 2014 1Q15 1H15 9M15 2015 1Q16 Cost of Risk Cost of risk (net of "non recurrent" items) Cost of Risk: history (bps) Despite stable Quarterly Average Gross 80 Crack Pa
Slide 19: Assets & Liabilities
Assets & Liabilities Assets (Euro, Million) 23,093 21,642 24,000 Within the assets, Loans decreased because of the 18,000 normal seasonality of the 12,000 2015 quarter: -€1.5 billion of 6,301 wich €0.4 billion Repos to 6,047 5,502 5,757 1Q16 6,000 institutionals, hence the reduction of Loans to 500
Slide 20: Liquidity Ratios
Liquidity Ratios NSFR Both NSFR and LCR ratios at the end of March 2016 are estimated to be well 150% 133% above the future target thresholds set 130% 124% 124% by the regulation, with NSFR in further 116% improvement at 133% and LCR at 176% 110% (calculated on the back of “delegated act”) 90% ECB e
Slide 21: Subordinated Bonds Issued
Subordinated Bonds Issued Outstanding Subordinated Bonds as at March 31, 2016 (Banking Group) 350 Since 2012 the Group has not been issuing subordinated bonds to its retail customers. As of today, only €60 million of retail bonds 300 are partially computable as Tier 2 Capital (grandfathering) 250 As
Slide 22: Capital ratios evolution
Capital ratios evolution Capital Ratios on Banking Group Consolidated Capital Ratios “prudential (phased-in) perimeter” (phased-in) 2,500 11.7% 2,500 11.8% 15.2% 15.4% 14.8% 14.6% 2,000 11.1% 13.8% 13.9% 2,000 11.1% 13.5% 13.3% 1,500 1,500 2,010 1,962 1,958 1,969 1,955 1,864 1,865 1,861 1,834 1,777
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