Banca Monte Dei Paschi Di Siena S.p.a. · MIL:BMPS

Banca Monte Dei Paschi Di Siena — Q1 2010 Earnings Presentation

34 slides from Banca Monte Dei Paschi Di Siena's earnings presentation, May 2010

  1. Slide 1: Banca Monte dei Paschi di Siena

    ge, MONTE \) DEI PASCHI 7 DISIENA BANCA DAL 1472

  2. Slide 2: 1Q 2010 Results Presentation

    1Q 2010 Results Presentation

  3. Slide 3: 1Q 2010 Highlights

    1Q 2010 Highlights Gaining market share*: Increasing Volumes:  Direct Funding (net of Bonds): +89bps  Direct Funding: +11.3% YoY Commercial  Loans: +35bps  Indirect funding: +9.7% YoY Revamping  Mortgages: +78bps  Loans: +4.2% YoY  Bancassurance: +370bps  Fees: +6.1% QoQ Basic Income/Total R

  4. Slide 4: MPS 1Q10 Results

    MPS 1Q10 Results 1Q10 Profit & Loss (mln €) 1Q10 1Q09 1Q10/1Q09 1Q10/4Q09 Net Interest Income 885.8 925.9 -4.3% -0.4% Net Fees 493.9 481.9 2.5% 6.1% Basic income 1,379.7 1,407.8 -2.0% 1.8% Total Revenues 1,424.2 1,483.3 -4.0% 4.2% Operating Costs -859.8 -889.8 -3.4% -16.5% Personnel costs -556.5 -57

  5. Slide 5: Commercial Revamping and Revenues

    Commercial Revamping and Revenues  Increasing flows and market shares* in all Commercial businesses: Revamping and Revenues  Direct Funding: +11.3% YoY, with +89bps market share**; Indirect Funding: +€4.5bn in 1Q10 Cost Control  Loans: +4.2% YoY, with +35bps market share and + €4bn in 1Q10 (Branc

  6. Slide 6: Funding volumes and market shares on the rise

    Funding volumes and market shares on the rise Direct Funding Direct Funding and cost of current accounts (Branch Network) +11.3% € bn Direct Funding (lhs) Cost of current account bps YoY 155.0 108 160 139.3 106.8 107 140 105.7 106 120 105 103.9 104 100 102.8 103 102 80 102 + €1.2bn 60 101 100.3 in 1

  7. Slide 7: WM flows up driven by Bancassurance

    WM flows up driven by Bancassurance WM (Bonds, Bancassurance and Mutual Funds) +10.1% 7,002 YoY 6,358 € mln 1Q09 1Q10 Bonds Bancassurance Mutual Funds 6,062 +77.3% YoY 2,180 4,629 193 € mln 1,230 1Q09 1Q10 € mln € mln 1Q09 1Q10 1Q09 1Q10 -934 pag. 7

  8. Slide 8: A focus on Bancassurance

    A focus on Bancassurance Bancassurance flows 758 +89.5% YoY 400 1,422 830 +71.3% YoY € mln 1Q09 1Q10 Traditional Unit linked & Index linked Bancassurance market share* Bancassurance market share** +370bps +565bps 11.05% 13.10% 12.06% 7.76% +124bps 7.35% 7.26% 6.47% Jun-09 Sep-09 Dec-09 Mar-10 Tradit

  9. Slide 9: Lending volumes

    Lending volumes Total Lending Lending (Branch Network) +4.2% YoY 109.6 150.8 144.7 105.7 104.3 103.2 103.8 c€4bn in 1Q10 € bn € bn 31/03/09 30/06/09 30/09/09 31/12/09 31/03/10 1Q09 1Q10 Lending market share* +35bps 1Q10 Lending growth 8.02% 7.89% 7.89% Loans to SMEs and 7.54% SB, 25% Residential Mor

  10. Slide 10: A focus on Mortgages

    A focus on Mortgages Mortgages flow Good quality of new Residential Mortgages 4.5 +142% YoY 1.9 € bn 1Q09 1Q10 Application Risk Analysis*** Mortgages market share* (% of High Risk Applicants) 12.0% +78bps 10.0% High Risk Applicants 10.70% 8.0% 6.0% 10.27% 10.09% 9.92% 4.0% 2.0% 0.0% Jun-09 Sep-09 De

  11. Slide 11: Upturn in other Lending flows and market shares

    Upturn in other Lending flows and market shares Consum.it flows Leasing & Factoring flows +8.7% 700 1,382 +18.4% 1,167 Factoring 644 Leasing +18.6% 354 € mln € mln 298 1Q09 1Q10 1Q09 1Q10 Consumer credit market share Leasing market share +113bps* +54bps* 6.23% 5.11% 5.10% 5.31% 4.71% 4.57% Jun-09 De

  12. Slide 12: A focus on Net interest income

    A focus on Net interest income Net interest income 3M Euribor : -4.3% 2%* -0.4% 3M Euribor : YoY 0.66%* 925.9 926 910 913 890 886 885.8 € mln € mln 1Q09 2Q09 3Q09 4Q09 1Q10 1Q09 1Q10 Net Interest Income: Impact from Spread and Volumes +0.2 +20 -4 -60 € mln € mln 1Q09 Spread Volumes 1Q10 4Q09 Spread

  13. Slide 13: A focus on Mark up and Mark down

    A focus on Mark up and Mark down Mark up GMPS reorganisation completed Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Market* MPS Not competing on pricing Mark down GMPS reorganisation completed Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-0

  14. Slide 14: Fees: a steady pick up in 1Q

    Fees: a steady pick up in 1Q Fees +6.1% +2.5% YoY 494 493.9 482 469 476 466 481.9 € mln € mln 1Q09 1Q10 1Q09 2Q09 3Q09 4Q09 1Q10 Quarterly trend: Breakdown +25.0% o.w. +10.1% +6.1% +6.0% Total fees AuM fees Fees on "Loan amount Fees on Payment granted" services pag. 14

  15. Slide 15: Other Revenues

    Other Revenues Other revenues 75.5 71.1 75.5 44.4 44.4 17.6 11.5 € mln € mln 1Q09 1Q10 1Q09 2Q09 3Q09 4Q09 1Q10 1Q10 Other revenues: details (€mln) Dividends and other income from equity investments 17.9 Net results from trading/valuation of fin. assets 19.8 Hedging 6.7 pag. 15

  16. Slide 16: Cost Control

    Cost Control Commercial Revamping and Revenues  Ongoing structural cost base reduction: Cost Control Operating costs: -3.4% YoY, -16.5% QoQ Risk and Capital C/I at 60.4% vs 64.2% as of Dec 2009 Management Front Office Reinforcement: Front Office/Total Staff at 67% vs 63% in 2007 pag. 16

  17. Slide 17: Cost cutting: track record confirmed

    Cost cutting: track record confirmed Trend of Total Costs 1.9% -0.2% -0.8% -1.5% -1.3% -2.2% -6.5% Including €95mln -3.4% of one-off costs -8.0%* 2003 2004 2005 2006 2007 2008 2009 1Q10 Cost/Income -384 bps 64.2% 60.4% 63.2%* 31/12/09 31/03/10 * Net of € 60mln in early retirement one-offs classified

  18. Slide 18: Strong and sustainable cost reduction

    Strong and sustainable cost reduction Operating Costs -3.4% 889.8 YoY 859.8 € mln 1Q09 1Q10 Personnel Costs Other Administrative Costs -3.1% 574.4 YoY -5.2% 556.5 277.4 YoY 263.1 € mln € mln 1Q09 1Q10 1Q09 1Q10 -2.8% vs 2009 quarterly avg -13.1% vs 2009 quarterly avg pag. 18

  19. Slide 19: The positive effects of reorganization on costs

    The positive effects of reorganization on costs Personnel Costs (€mln) 652.4 602.0 599.4 595.4 614.8 574.4 563.6 556.5 537.4 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Other Administrative Expenses (€mln) 365.8 368.5 305.5 329.3 325.4 277.4 284.5 281.2 263.1 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09

  20. Slide 20: Front Office reinforcement

    Front Office reinforcement Distribution Network/Head Office staff* 36.8% 33.1% 32.8% 63.2% 66.9% 67.2% 2007 2009 1Q10 Network Head Office  Over 1,400 Head Office resources re-qualified to Network roles  Approx. 600 Career Paths re-oriented to Network responsibility roles  Over 600 BMPS network re

  21. Slide 21: Risk and Capital Management

    Risk and Capital Management Commercial  Asset quality under control: Revamping and Revenues  Cost of credit: 81bps Cost Control  Stable loans coverage  NPL market share: -213bps since Dec 08, -26bps Risk and Capital since Dec 2009 Management  NPL flows: -2.1% QoQ  Monthly flows of Watchlist lo

  22. Slide 22: Positive signs from the macro-scenario

    Positive signs from the macro-scenario Italy: Industrial Production and GDP 10% 4%  Strong 1Q recovery in 5% 2% industrial production supports 0% forecast of a good GDP performance in the first part 0% -5% -2% of the year -10% -4% -15% -20% -6% Euro Zone: Export -25% -8% 30% 20% Industrial Producti

  23. Slide 23: Provisioning affected by market turmoil

    Provisioning affected by market turmoil Provisions (bps) 96 79 81 1Q09 2009 1Q10 Breakdown by type of customers* (bps) 124 114 105 50 o.w. o.w. Consumer (Retail + SB Corporate SMEs Private) * Provisions calculated on Branch Network loans pag. 23

  24. Slide 24: Improved quality of performing loan portfolio

    Improved quality of performing loan portfolio Market share of Performing and Non Performing Loans +29bps Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Feb-10 -219bps Delta of Performing Loan Market Share Delta of NPL Market Share  Evidence of improved loan portfolio: 219bps reduction in NPL market share, to b

  25. Slide 25: A focus on flows of Watchlist loans

    A focus on flows of Watchlist loans* Watchlist loans: monthly flows** 290 224 198 Watchlist flows QoQ: 188 -46% 120 : -31% : -75% € mln monthly avg. monthly avg. monthly avg. monthly avg. monthly avg. 1Q09 2Q09 3Q09 4Q09 1Q10 Flows of Watchlist loans: breakdown Flows of Watchlist loans: breakdown by

  26. Slide 26: Limited increase in impaired loans and good coverage level

    Limited increase in impaired loans and good coverage level NPL, Watchlist, Restructured and Past Due Loan stocks (€ mln) Gross Net NPL 11,098 4,908 Change vs Dec 09 +4.9% +5.5% Watchlist 4,952 4,004 Change vs Dec 09 +5.9% +6.5% Restructured 820 793 Change vs Dec 09 +12.9% +13.1% Past Due 946 892 Cha

  27. Slide 27: Liquidity position under control

    Liquidity position under control Loan/Deposit ratio Maturity of Bonds from 2010 (€ bn)* 3.5 3.3 2.8 1.02 0.98 0.97 2.0 1.4 1.3 0.9 0.6 2008 2009 1Q10 2010 2011 2012 2013 2014 2015 2016 2017- 2026 Senior Subordinated CD Programme and Counterbalancing Capacity** (€ mln) Counterbalancing Capacity CD 15

  28. Slide 28: A focus on Securities and Derivatives

    A focus on Securities and Derivatives The Securities and Derivatives Portfolio* Market Value (€ mln) 31 March 2010 HFT 13.521 AFS 12.107 L&R 3.462 Total Portfolio 29.090 Portfolio of Banca MPS and MPS Capital Services Italy Govies: Breakdown by Maturity 1.11% 2% 1.35% 4.49% 4.59% <1Y, 11% 23% >3Y, 4

  29. Slide 29: Monitoring capital position

    Monitoring capital position Book value Book Value net of Goodwill 17.2 17.2 10.6 10.6 15.1 15.4 8.5 8.7 15.0 8.4 € bn € bn 31/03/09 30/06/09 30/09/09 31/12/09 31/03/10 31/03/09 30/06/09 30/09/09 31/12/09 31/03/10 Tier 1 ratio (%) 7.5 7.5 5.8 6.0 5.6 31/03/09 30/06/09 30/09/09 31/12/09 31/03/2010* *

  30. Slide 30: Competitive positioning and cost rationalization continue to improve

     Competitive positioning and cost rationalization continue to improve in all business areas  Credit quality is being enhanced  Our capital strengthening plan is continuing, with some of the initiatives announced under current review by Supervisory Authorities pag. 30

  31. Slide 31: Thank you for your attention - Q&A

    Thank you for your attention Q&A pag. 31

  32. Slide 32: Contacts

    Contacts Declaration In accordance with section 2, Pianificazione Strategica, Article 154- bis of the Consolidated Law on Finance Research & Investor (TUF), the Financial Reporting Relations Manager Daniele Bigi, declares that the accounting information Piazza Salimbeni, 3 contained in this presenta

  33. Slide 33: 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

  34. Slide 34: fe DEI PASCHI

    fe DEI PASCHI I SIENA ==” BANCA DAL 1472 www.mps.it

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