Bper Banca S.p.a. · MIL:BPE
Bper Banca — Q1 2022 Earnings Presentation
32 slides from Bper Banca's earnings presentation, May 9, 2022
Slide 1: 1Q22 Consolidated Results
1Q22 Consolidated Results Piero Luigi Montani, CEO 9th May 2022 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by “BPER Banca” solely for No part of the information contained herein may for any purpose be information purposes, and only in order to present its strategies and reproduced or published as a whole or in part, nor may such main financial figures. informati
Slide 3: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 3
Slide 4: Executive summary
Executive summary STRONG PROFITABILITY, SOLID CAPITAL AND LIQUIDITY POSITION DESPITE DIFFICULT MARKET ENVIRONMENT • 1Q22 net profit of 112.7 €mln, including 45.7 €mln of SRF contribution, showing strong profitability despite external scenario Profitability • Operating income at 883.7 €mln increased
Slide 5: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 5
Slide 6: Direct Deposits
Direct Deposits Balance sheet Direct deposits at 99.4 €bn up 5.2% Y/Y, of which 90% consisting in sight deposits Direct Funding breakdown Direct Funding, quarterly trend (€bn) +5.2% Chg. Q/Q Chg. Y/Y €/mln Mar 21 Dec 21 Mar 22 (%) (%) 101.4 99.4 Customer Direct Deposits 90,343 96,201 93,810 -2.5% +3
Slide 7: Indirect deposits
Indirect deposits Balance sheet Total indirect deposits at 161.3 €bn boosted by AUM and life insurance business Indirect Deposits Indirect Deposits quarterly trend (€bn) 160.7 166.3 161.3 Chg. Q/Q Chg. Y/Y €/mln Mar 21 Dec 21 Mar 22 (%) (%) Assets under custody 82,646 82,163 80,132 -2.5% -3.0% 82.6
Slide 8: Customer loans
Customer loans Balance sheet Net customer loans at 78.7 €bn up 4.4% Y/Y Net customer loans: quarterly trend (€bn) Net customer loans: breakdown Chg. Q/Q Chg. Y/Y +4.4% €/mln Mar 21 Dec 21 Mar 22 (%) (%) 79.1 78.7 Current Accounts 4,897 4,969 5,126 +3.2% +4.7% 75.4 Mortgage loans 52,647 53,621 53,669
Slide 9: Asset Quality (1/3)
Asset Quality (1/3) Balance sheet Strong Asset Quality profile confirmed, both in terms of NPE ratios and coverage levels Loan book breakdown: stock and coverage (€mln; %) NPE ratios over time (%) Mar 21 Dec 21 Mar 22 Q/Q Y/Y 6.1% 5.7% 5.5% Bad Loans 4.9% 4.9% Gross 2,368 2,014 2,006 -0.4% -15.3% Ne
Slide 10: Asset Quality (2/3)
Asset Quality (2/3) Balance sheet Stage 2 net loans came in at 8.6 €bn with coverage rising to 4.0% Stock of stage 2 net loans, quarterly trend (€bn) Coverage of stage 2 net loans, quarterly trend (%) 9.4 4.0% 8.6 3.5% 7.9 2.4% Mar 21 Dec 21 Mar 22 Mar 21 Dec 21 Mar 22 % on net performing 12.9% 10.2
Slide 11: Asset quality (3/3)
Asset quality (3/3) Balance sheet Default rate kept at low level. Bad loan recovery rate increased to 7.8% Default rate (%) Average Bad loan recovery rate1 (%) (Bper Credit Management) 2.1% 1.9% 7.8% 1.7% 6.3% 6.9% 6.7% 5.3% 1.0% 1.0% 4.3% 0.9% 2017 2018 2019 2020 2021 1Q22* 2017 2018 2019 2020 2021
Slide 12: Financial assets portfolio
Financial assets portfolio Balance sheet Financial assets portfolio at 27.9 €bn Financial Assets breakdown (€mln) Italian Government bonds (€bn) €/mln FVTPL FVOCI AC Total % on total 8.6 8.5 Bonds 311 6,095 20,384 26,790 95.9% 7.8 o.w. Italian gov 128 429 7,905 8,462 30.3% 6.4 Equity 103 253 356 1.3
Slide 13: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 13
Slide 14: Profit & Loss
Profit & Loss Profit and Loss Solid 1Q22 profitability with a net profit of 112.7 €mln, after payment of 45.7 €mln of systemic charges P&L - (€mln) 1Q22 4Q21 1Q21 Net interest income 376.4 385.9 343.5 Net commission income 450.6 469.2 328.1 Core Income 827.0 855.1 671.6 Dividends 0.3 5.5 1.7 Net inc
Slide 15: Net Interest Income
Net Interest Income Profit and Loss 1Q22 NII at 376.4 €mln up 9.6% Y/Y Net Interest Income breakdown Net Interest Income quarterly trend (€mln) 384.8 €mln net Chg. Q/Q Chg. Y/Y of calendar €mln 1Q21 4Q21 1Q22 384.8 391.1 385.9 effect % % 376.4 Commercial NII 291.7 342.3 336.1 343.5 -1.8% 15.2% Secur
Slide 16: Net commission income
Net commission income Profit and Loss Strong Net commission income performance in 1Q22, increased to 450.6 €mln (+37.3% Y/Y) Net Commission Income over time (€mln) 450.7 €mln net of +37.3% performance fees 469.2 Chg. y/y • Indirect deposits & Life bancassurance 438.5 450.6 405.8 18.7 commissions at
Slide 17: Trading income and Dividends
Trading income and Dividends Profit and Loss Trading income in 1Q22 at 58.9 €mln despite market volatility Trading income over time (€mln) 76.2 58.9 52.9 43.5 23.6 1Q21 2Q21 3Q21 4Q21 1Q22 Dividends 1.7 12.3 0.7 5.5 0.3 (€mln) Figures on this page may not add exactly due to rounding differences. 17
Slide 18: Operating costs
Operating costs Profit and Loss 1Q22 at 558.4 €mln in line with expected evolution Operating Costs trend (€mln) -2.5% Operating costs excl. 467.3 548.2 511.0 572.8 558.4 one-offs1 858.3 • Operating costs increase Y/Y impacted by enlarged Group’s perimeter 120.3 • Net of one-offs, Q/Q trend down by 2
Slide 19: Loan Loss Provisions and Cost of Risk
Loan Loss Provisions and Cost of Risk Profit and Loss 1Q22 cost of risk at 57 bps LLps trend (€mln) Cost of risk trend (bps)* 418 159 Ordinary LLPs Additional LLPs • In 1Q22 LLPs at 112 €mln, including 16.3 €mln related to the expected impacts from direct exposures to Russia • Cost of risk came in a
Slide 20: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 20
Slide 21: Capital
Capital Capital adequacy High solidity supported by strong internal capital generation. Fully Phased CET1 at 13.64% (+14bps Q/Q) well above SREP requirement Pro-forma Phased in CET1 Pro-forma Fully Phased CET1 (%) ratio of 14.14% +29 bps -15 bps 13.50% 13.64% * Dec 21 Net result of the period OCI re
Slide 22: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 22
Slide 23: Final remarks
Final remarks 1Q22 RESULTS, REFLECTIVE OF STRONG METRICS IN ALL AREAS, ARE A SOLID STARTING POINT TO FACE THE DIFFICULT EXTERNAL SCENARIO RESILIENT OPERATING PROFITABILITY DRIVEN BY STRONG REVENUE GENERATION CAPACITY SOUND CREDIT QUALITY CONFIRMED THANKS TO STABLE NPE RATIOS COUPLED WITH HIGH COVERA
Slide 24: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet Profit and loss Capital adequacy Final remarks ANNEXES 24
Slide 25: Change in the scope of consolidation and Purchase Price Allocation
Change in the scope of consolidation and Purchase Price Allocation Change in the scope of consolidation In 2021 BPER Banca completed the integration of the going concern consisting in 620 branches1 acquired from the Intesa Sanpaolo Group (ISP). The transfer of these branches took effect for legal an
Slide 26: Operating costs
Operating costs Annexes Breakdown of one-offs Chg. Q/Q Chg. Y/Y €/mln 1Q21 2Q21 3Q21 4Q21 1Q22 % % Staff expenses 302.1 355.1 313.8 557.2 352.2 -36.8% +16.6% o/w Extraordinary 7.6 8.8 1.5 210.0 - - - o/w Ordinary 294.5 346.2 312.3 347.2 352.2 +1.4% +19.6% Other administr. expenses 189.9 157.4 151.1
Slide 27: Liquidity
Liquidity Annexes High level of liquidity with LCR >200% and liquidity buffer of 29 €bn Total eligible Assets over time* (€mln) Eligible Assets Pool Composition (%) 32,209 31,100 31,087 29,249 28,657 29,045 20,307 18,991 19,975 9,666 10,793 9,070 Mar 21 Dec 21 Mar 22 Total eligible assets Total unen
Slide 28: Net Customer loans
Net Customer loans Annexes Portfolio composition Net customer loans breakdown by sector (€mln) Customer loans breakdown by geographical areas1(%) % on Total Δ% Business sector Mar 22 Customer vs Dec 21 Loans North Centre Manufacturing 12,512 15.9% -1.2% Wholesale and retail services, 6,865 8.7% +0.3
Slide 29: Asset quality
Asset quality Annexes Asset quality breakdown (excl. debt securities) Gross exposures (€mln) Mar 21 Jun 21 Sep 21 Dec 21 Mar 22 Chg Q/Q Chg Y/Y comp. % comp. % comp. % comp. % comp. % Abs. Chg (%) Abs. Chg (%) Non Performing Exposures (NPEs) 4,778 6.1% 4,470 5.7% 4,383 5.5% 4,025 4.9% 4,008 4.9% -17
Slide 30: Financial Assets: highlights
Financial Assets: highlights Annexes Bond PTF Geographical breakdown (%) Govies PTF Geographical breakdown (%) Other Other Germany 23.9% 6.7% 5.5% USA 6.4% USA Italy Spain 5.6% 40.9% 12.7% Spain 7.2% Italy Germany 68.7% 8.2% France 14.2% 18.8 6.1 Bonds PTF Maturities1 (€bn) Italian Govies Maturities
Slide 31: Bond maturities and issuances: highlights
Bond maturities and issuances: highlights Annexes Outstanding bonds1 (€bn) Bonds issued (€bn) 1.2 Dec 21 Mar 22 0.9 0.6 0.6 0.7 0.6 Wholesale bonds 3.9 3.9 0.6 1.2 o/w covered bonds 1.9 1.1 0.5 0.5 0.5 0.6 o/w subordinated bonds 0.9 1.5 0.3 0.1 0.1 0.2 Retail bonds 0.9 0.7 2017 2018 2019 2020 2021 1
Slide 32: Contacts for Investors and Financial Analysts
Contacts for Investors and Financial Analysts Fabio Pelati Nicola Sponghi Head of Investor Relations Investor Relations Via Aristotele, 195 - 41126 Modena - Italy Via Aristotele, 195 - 41126 Modena - Italy +39 059 2021396 +39 059 2022219 fabio.pelati@bper.it nicola.sponghi@bper.it 32