Banca Monte Dei Paschi Di Siena S.p.a. · MIL:BMPS
Banca Monte Dei Paschi Di Siena — H1 2013 Earnings Presentation
37 slides from Banca Monte Dei Paschi Di Siena's earnings presentation, Aug 7, 2013
Slide 1: 1H2013 Results
1H2013 Results Siena, 07 August 2013
Slide 2: Contents
Contents Key messages 1H13 Results - Balance sheet 1H13 Results - Profit and Loss Business Plan progress update page 2
Slide 3: Executive Summary (1/2)
Executive Summary (1/2) NII performance impacted by ongoing de-leveraging, sales & P&L affected by marketing policies to boost funding and interest paid on challenging New Financial Instruments (EUR 152 mln) macro and Strong commercial performance with increase in deposits improvement of (+3.3%
Slide 4: Executive Summary (2/2)
Executive Summary (2/2) Impaired Loans Coverage: 41.1% (+70bps vs March, Improving +190bps vs June 2012) and NPL Coverage: 58.1% (+20bps Balance sheet vs March, +290bps vs June 2012), among the best of the sector structure Bankit audit on impaired loans closed Removal of share ownership ceilin
Slide 5: Contents
Contents Key messages 1H13 Results - Balance sheet 1H13 Results - Profit and Loss Business Plan progress update page 5
Slide 6: Assets & Liabilities
Assets & Liabilities Total Assets Key messages €/mln Jun-12* Mar-13 Jun-13 QoQ% YoY% Customer loans 144,462 140,510 138,082 -1.7% -4.4% Customer lending down in line Loans to banks 17,130 13,676 12,240 -10.5% -28.5% with deleveraging plans Financial assets 51,565 47,732 50,702 6.2% -1.7% Tangible
Slide 7: Direct funding
Direct funding Direct funding by Source Key messages €/mln Jun-12* Mar-13 Jun-13 QoQ% YoY% Current accounts 56,928 52,892 57,536 8.8% 1.1% Direct funding up, driven by current accounts Time deposits 3,743 8,324 8,766 5.3% 134.2% and time deposits, partly thanks to the “Conto Repos 8,877 16,482 14,
Slide 8: Focus on the network's placing power
Focus on the network’s placing power Retail/Corporate Funding breakdown* Key messages € bn 94 95 The issuance programme was substantially stopped in 1H13 due to restatement of 2012 accounts and need to align disclosure in 35% 32% prospectus Funding Plan 2013: 65% 68% subject to market conditio
Slide 9: Institutional funding and Interbank Exposure
Institutional funding and Interbank Exposure Direct Funding and Net Interbank Exposure* Key messages 163 170 165 167 Net interbank exposure substantially stable since March but down approx. EUR 4 30.5 33.8 29.5 29.9 bn since end 2012 and consists of EUR 29bn in LTRO exposure with the ECB Increas
Slide 10: Indirect funding
Indirect funding Indirect funding Key messages Assets under Custody: the decline is primarily due to changes in shares under €/mln Jun-12* Mar-13 Jun-13 QoQ% YoY% custody by key clients of the Group but Assets under with minimal P&L impact 84,452 66,695 61,606 -7.6% -27.1% custody Assets under 44,
Slide 11: Lending
Lending Total Lending Key messages €/mln Jun-12 * Mar-13 Jun-13 QoQ% YoY% Loans to customers down 4.4% YoY and 1.7% Current accounts 13,570 12,626 12,028 -4.7% -11.4% QoQ, due to slowing economic cycle (affecting Mortgages 76,756 70,515 69,231 -1.8% -9.8% credit quality and demand) and the Group’s
Slide 12: Asset Quality and Risk profile
Asset Quality and Risk profile Increasing diversification of loan portfolio, with top 10 customers Key messages accounting for EUR 3.1 bn (2.7% of total loans as at Jun-13 vs. 2.8% in Mar-13) Asset Quality Coverage ratio of Impaired Loans at 41.1% vs. 39.2% on Jun-12 (+190bps) New organisation
Slide 13: Asset Quality trend
Asset Quality trend Net Impaired Loans Increase Key messages -72.1% (€ mln) 1Q13 2Q13 1,284 NPL 357 331 Watchlist 576 333 Balance sheet 358 Past Due & 350 -305 € mln Restructured 1Q13 2Q13 Gross Impaired Loans Increase -46.8% P&L Impaired loan 1,843 volumes on a slowing trend Business Plan update 98
Slide 14: Coverage ratios
Coverage ratios Impaired Loans Coverage Key messages +190bps Impaired loans coverage up 70bps vs. +70bps March-13 owing to adjustments to provisioning funds on certain non- 40.4% 41.1% 39.2% performing loans IT Banks Avg.* 34.9% Slight reduction of watchlist coverage, at Balance sheet 20.4% (-50
Slide 15: Financial Assets
Financial Assets Securities and Derivatives Portfolio Key messages Total portfolio +6.6% QoQ: Market Value Jun-13 QoQ% (€ mln) HFT: up as a result of temporary purchase of government bonds by MPS Capital Services at HFT 11,487 +22.9% end of June, placed back on the market in July AFS: up as a
Slide 16: RWAs and Regulatory Capital Ratios
RWAs and Regulatory Capital Ratios RWA and Regulatory Capital Ratios Key messages €/mln Mar-13 Jun-13 QoQ Core Tier 1 ratio, including EUR 4.1 bn of RWA 88,596 87,804 -0.9% New Financial Instruments, at 11.0% (8.9% Core Tier 1 9,845 9,665 -1.8% as at 31 Dec-12) Tier 1 Capital 10,448 10,270 -1.7%
Slide 17: Focus on AFS reserve and core tier
Focus on AFS reserve and core tier 1 EBA AFS Reserve* over time vs Spread (bps) Key messages 600 AFS reserve at Jun-13 was -EUR 2.0 bn 500 (compared to -EUR 3.2 bn at time of EBA 400 stress test on Sep-11) 300 Core Tier 1 ratio in line with Italian and 200 European level 100 Estimated sensitiv
Slide 18: Contents
Contents Key messages 1H13 Results - Balance sheet 1H13 Results - Profit and Loss Business Plan progress update page 18
Slide 19: P&L: 1H2013
P&L: 1H2013 Jun-12* Jun-13 Change MPS Group Ins. % Net interest income 1,671.1 1,083.5 (587.6) -35.2% Key messages Net fee and commission income 836.9 848.6 11.7 1.4% Income from banking activities 2,507.9 1,932.1 (575.9) -23.0% Dividends, similar income and gains (losses) on investments 39.1 65.8 2
Slide 20: Net Interest Income
Net Interest Income Net Interest Income (YoY) Key messages Corrective actions to boost profitability: -35.2% Re-balancing of cost of funding: BMPS deposit 1,671 -26.8% like-for-like rate over approx. 50bps higher than average 1,481* Basis* of top 10 Banking Groups 1,083.5 Optimisation of risk-
Slide 21: Fee and Commission Income
Fee and Commission Income Fees YoY Fees QoQ Key messages +1.1% -3.3% +1.4% 413 431 413 417 837 849 383 Balance sheet € mln € mln 1H12 * 1H13 2Q12 * 3Q12 * 4Q12* 1Q13 2Q13 Fees breakdown €/mln 2Q12 1Q13 2Q13 QoQ% YoY% Net fees and commissions up from AuM fees, o/w 122 156 154 -1.1% 26.5% Jun-12 due
Slide 22: Dividends and trading
Dividends and trading Trading/valuation of financial assets QoQ Key messages 255.1 Net profit (loss) from trading / valuation / repurchase of financial assets/liabilities totalled approximately EUR 196 mln at the end 120.8 of June (-24% YoY) 76.5 75.5 Dividends, similar income and gains (losses)
Slide 23: Operating Costs (1/2)
Operating Costs (1/2) Operating Costs Total Costs (YoY % growth) Key messages -10.5% 2012 1H13 -11.3% 1,640 1,653 1,467 -3.7% -10.5% Balance sheet € mln 1H12 2H12 1H13 Cost rationalisation ongoing, with operating expenses down 10.5% YoY. In particular: Operating Costs QoQ • Personnel expenses down
Slide 24: Operating Costs (2/2)
Operating Costs (2/2) Personnel expenses (€/mln) Admin expenses (€/mln) Amortization and Depreciation (€/mln) Key messages -11.8% -6.5% -19.4% -5.0% -17.7% -31.8% 1,030 589 108 956 909 519 91 485 73 Balance sheet * * 1H12 2H12 1H13 1H12 * 2H12 * 1H13 1H12 * 2H12 * 1H13 Personnel expenses QoQ (€/mln)
Slide 25: Provisioning
Provisioning Cost of credit* (bps) Key messages 188 149 Net loan loss provisions up on 1Q13 138 116 due to increase in coverage driven Balance sheet by the ongoing economic weakness and within the framework of a prudential provisioning policy 1H12 FY12 1Q13 1H13 As a consequence, the cost of cre
Slide 26: Contents
Contents Key messages 1H13 Results - Balance sheet 1H13 Results - Profit and Loss Business Plan progress update page 26
Slide 27: Retail Business - Significant focus on Business Productivity, new Business Lines and Growth opportunities
Retail Business - Significant focus on Business Productivity, new Business Lines and Growth opportunities Test Rest of the • Structured and continuous plan of targeted Branches Bank Key messages Productivity microcampaigns/promotions with positive impact on Contact +60% contact (+30/40% vs. 2012) Ra
Slide 28: Back Office Project - SAACA
Back Office Project - SAACA Industrial partners identified, further investigation continues The Back Office - SAACA (Societarizzazione Attività Amministrative Contabili e Ausiliarie) project is underway and solid potential partners have been selected to further negotiate The selection was based
Slide 29: 'Banca On line' initiative
‘Banca On line’ initiative To be presented Key elements on 18 Vision September Key messages Strong involvement of the community in Local roots order to ease the co creation of the new e-entity New Entity built Involvement of the Bank employees in the up and managed Internal community creation of
Slide 30: Personnel
Personnel Focus not only on staff reduction but also better allocation Personnel over time Key messages 58% of BP Target ca -2,700 (77% excl. B.O. c2,700 people have left the Group Project - SAACA) since Dec 2011, of whom ca. 1,660 31,170 30,303 supported into retirement through 28,473 activation
Slide 31: Operating excellence
Operating excellence Sustainable cost optimization driving performance Levers Main actions Cost management benefits (€/mln) Key messages Operational • New Organizational Models efficiency • Process reengineering • HC reduction/new internal 2013 actions services full impact 2013 actions benefit on 20
Slide 32: Thank you for your attention Q&A
Thank you for your attention Q&A page 32
Slide 33: Annexes
Annexes page 33
Slide 34: P&L: quarterly trend
P&L: quarterly trend 2012 (*) 2013 1st 2nd 3rd 4th 1st 2nd MPS Group quarter quarter quarter quarter quarter quarter Net interest income 882.6 788.5 724.1 434.5 597.0 486.5 Net fee and commission income 424.3 412.6 413.1 382.9 431.3 417.3 Income from banking activities 1,306.9 1,201.0 1,137.1 817.4
Slide 35: Contacts
Contacts Declaration of the Financial Reporting Officer Strategic Planning & Investor Pursuant to para. 2, article 154- bis of the Consolidated Law on Relations Finance, the Financial Reporting Alessandro Santoni (Head) Officer, Mr. Arturo Betunio, declares that the accounting Piazza Salimbeni, 3 in
Slide 36: Disclaimer
Disclaimer This document has been prepared by Gruppo Monte dei Paschi di Siena solely for information purposes and for use in presentations of the Group’s strategies and financials. The information contained herein has not been independently verified. No representation or warranty, express or implie
Slide 37: fe DEI PASCHI
fe DEI PASCHI I SIENA ==” BANCA DAL 1472 www.mps.it
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