Credito Emiliano S.p.a. · MIL:CE
Credito Emiliano — FY2021 Earnings Presentation
24 slides from Credito Emiliano's earnings presentation, 2022
Slide 1: Group Results 2021
A GROUP RESULTS 2021
Slide 2: FY21: Key Points
FY21: KEY POINTS LOANS GROWTH AUM AND INSURANCE NET PRODUCTION Loans to customers at Excellent dynamics €33.2 billion, growing of AUM and +13.2% more than 13% YoY, €3.3 Insurance net ~10x compared to the bln production, more Industry €1.5 than 2x vs FY20 bln 1.2% FY20 FY21 PROFITABILITY REVENUE DIVE
Slide 3: SREP 2022
SREP 2022 Following completion of the annual Supervisory Review and Evaluation Process (SREP), the ECB confirmed the 2022 Pillar 2 requirement (P2R) assigned to Credito Emiliano at 1%, placing it among the best within Italian banks directly supervised, reaffirming the soundness of the business model
Slide 4: A Growing Digital Approach
A GROWING DIGITAL APPROACH INTERNET BANKING 1 DIGITAL OPERATION: RETAIL 4 >719,431 contracts (+12%) MIGRATION TREND +19% of online operations vs As of December 2021, more December 2020 than 91.2% of overall Incidence on bank accounts at transactions made through 71% vs 66% FY20 digital chann
Slide 5: Sustainability
SUSTAINABILITY Governance Climate Risk Management • Group Sustainability Governance updated • Environmental and climatic risk integrated • The Board of Directors promotes in the risk relevance analysis dialogue with shareholders and other • Carbon Neutrality by 2025 through the relevant stakeholders
Slide 6: Reclassified Income Statement
RECLASSIFIED INCOME STATEMENT Δvs Δvs • Excellent Revenues trend (+11.2% vs €/million 4Q20 3Q21* 4Q21* FY20 FY21* 3Q21 FY20 FY20), that reached €1.34 billion, thanks to the remarkable performance of both Operating Income 307.5 309.8 387.1 25.0% 1,202.2 1,336.7 11.2% NII and fee component • The incre
Slide 7: Net Interest Income (1/3)
NET INTEREST INCOME (1/3) NET INTEREST INCOME: EVOLUTION EURIBOR AND BTP/BUND SPREAD 135 199 131 171 128 122 133 121 116 117 117 103 102 101 112 90 -0.30% -0.41% -0.47% -0.52% -0.54% -0.54% -0.55% -0.57% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Of which ECB dep
Slide 8: Net Interest Income (2/3)
NET INTEREST INCOME (2/3) CUSTOMERS SPREAD 1.90 1.85 The competitive environment led to a further 1.78 1.78 1.77 1.69 1.68 1.74 1.74 1.72 reduction in the average rate of loans for the 1.55 Industry (-2 bps vs 3Q21), also reflected in the 1.47 -0.32 1.43 1.43 1.41 1.40 trend for Credem (-2 bps vs
Slide 9: Net Interest Income (3/3)
NET INTEREST INCOME (3/3) SECURITIES PORTFOLIO BREAKDOWN 5.1 bln 4.5 bln 4.6 bln 5.2 bln 5.8 bln The overall securities portfolio exceeded 14 billion, to further support the NII, maintaining high diversification and at the same time increasing the level of the 43% 45% 44% 40% average rating 50% 60
Slide 10: Non Interest Margin
NON INTEREST MARGIN Total 186.4 162.0 187.2 185.6 218.3 187.4 182.3 252.4 Performance Fees 48.9 40.7 3.4 Income from 13.5 Financial Activities 19.4 6.9 3.0 27.8 2.9 61.7 4.1 53.6 Banking Fees 51.0 59.2 50.6 51.6 49.8 48.0 19.1 14.6 17.1 13.4 Insurance Income 10.2 15.4 15.7 14.4 96.0 101.5 104.7 112.
Slide 11: Operating Costs and D&A
OPERATING COSTS AND D&A OPERATING COSTS EMPLOYEES / NETWORKS Employees 6,608 184 164 170 187 195 190 186 212 15 6,195 6,201 6,219 6,068 6,140 6 11 5,899 7 5,763 57 5,544 5,519 5,6045,609 52 49 51 49 43 49 54 132 121 121 139 138 131 125 140 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 12: Loans to Customers
LOANS TO CUSTOMERS LOANS TO CUSTOMERS: EVOLUTION 9,786 10,053 Other Loans 8,364 8,578 9,017 5,699 7,119 7,964 Residential Mortgage 9,446 7,484 7,733 7,993 8,329 8,722 8,909 9,293 Leasing Short-Term Loans 2,656 2,710 2,838 3,031 2,753 2,852 2,924 2,940 10,342 9,859 9,393 9,769 9,489 8,999 9,442 10,62
Slide 13: Covid Emergency: Total Delivered Loans
COVID 19 EMERGENCY: TOTAL DELIVERED LOANS GOVERNMENT AND SYSTEM INITIATIVES Moratoria* State-backed guaranteed loans** «Cura Italia» Decree, «Accordo Abi» and «Liquidità» Decree «Fondo di solidarietà prima casa» FY20 3,461 FY20 3,610 2,812 3,081 3,130 1H21 1H21 2,461 FY21 FY21 2,216 1,977 1,828 1,69
Slide 14: Loans: Comparison with the Industry
LOANS: COMPARISON WITH THE INDUSTRY LOANS TO CUSTOMER GROWTH* MARKET SHARES** EVOLUTION +13.2% y/y 2.11% Industry 1.95% 1.89% 1.94% Credem 1.79% 1.77% +76.6% 1.66% 1.58% 1.48% 1.28% +1.2% y/y 1.20% MS on Performing Loans 1.16% 1.07% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 dec. de
Slide 15: Group Customers Funding: Net Inflows Breakdown
GROUP CUSTOMERS FUNDING: NET INFLOWS BREAKDOWN AUC 7,062 Direct Deposits AUM + Insurance Total Net Inflows 4,924 4,464 3,534 3,435 3,326 2,826 2,670 2,389 1,400 1,623 1,472 1,302 962 939 666 331 -255 -164 -577 FY17 FY18 FY19 FY20 FY21 • Excellent performance of AuM + Insurance net inflows that stood
Slide 16: Deposits, AUM and Insurance
DEPOSITS, AUM AND INSURANCE • Positive dynamics of Insurance Reserves (+11.0% €/mln FY20 FY21 vs FY20) and AUM (+18.0% vs FY20) thanks to the positive market effect and to the excellent Sight / Saving Depo. 30,321 33,641 performance of net production CD and Other Deposits 495 932 • Direct deposits i
Slide 17: Bonds Issuances and Maturities
BONDS ISSUANCES AND MATURITIES ISSUANCES MATURITIES Covered Bond 100 + 750 Green Bond SP Covered 500: SNP Bond 750: CB Covered 1450 500 SNP Bond Green 200: T2 Bond SP 1,250 107.5: T2 750 Tier 2 Tier 2 CRVita 500 750 600 Tier 2 CRVita 307.5 100 200 107.5 2019 2020 2021 2022 2024 2025 2027 2028 2030 2
Slide 18: Credit Quality: Gross NPL Ratio
CREDIT QUALITY: GROSS NPL RATIO 900 GROSS NON PERFORMING LOANS 2019 600 578 2020 445 398 399 378 378 2021 300 Bad Loans Disposal Bad Loans ~40+70mn Disposal 49 53 43 0 ~41 mn Gross Bad Loans Gross UTP Loans Gross Past Due Loans % on Loans (Credem) 2.1 1.5 1.2 1.5 1.3 1.2 0.2 0.2 0.1 % on Loans (Indu
Slide 19: NPL: Coverage
NPL: COVERAGE Coverage NPL Addendum Gross Net Coverage Shortfall* incl. (€/million) & Calendar Shortfall Bad Loans 397.9 101.9 74.39% 47.8 86.41% + Net NPL +378.9 UTP Loans 378.1 242.1 35.97% -5.9 34.41% - Shortfall -73.5 Total NPL 819.0 378.9 53.74% 41.2 32.3 62.71% = NPL Net of Shortfall 305.4 N
Slide 20: Cost of Risk
COST OF RISK 59 55 52 42 44 38 31 47 45 32 34 41 24 24 39 19 16 10 34 30 27 21 15 13 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Cost of risk Cost of risk (net of non-recurring events) COST OF RISK: HISTORY 70 • Cost of risk in 2021 at 10 bps, close to 62 Parmalat 59 55 52 historic l
Slide 21: Assets & Liabilities
ASSETS & LIABILITIES ASSETS 33.156 Loans to customers increased 31.461 9M21 by €1.7 billion in 4Q21, also due 12,296 2021 to the usual seasonality 8,405 7,577 7,065 6,949 Growth of securities portfolio 6,838 6,593 continued in both the HTC and 4,713 HTCS components 82 76 Due to banks decreased
Slide 22: Liquidity Ratios
LIQUIDITY RATIOS NSFR LCR 137% 125% 126% 210% 205% 199% 2019 2020 2021E 2019 2020 2021 Both LCR e NSFR ratios were well above LOAN TO DEPOSIT RATIO* minimum capital requirements, enabling the Group to have a greater flexibility in setting future funding strategies 0.91 0.92 0.93 ECB unencumbered
Slide 23: Consolidated Capital Ratios
CONSOLIDATED CAPITAL RATIOS CAPITAL AND CAPITAL RATIOS (fully phased) Credem Group Credemholding €, million 2020 2021 2019 2020 2021 CET 1 2,580 2,868 2,039 2,340 2,591 Total Capital 2,932 3,169 2,339 2,746 2,993 Capital absorption from: 1,324 1,500 1,206 1,337 1,513 Credit and Counterparty 1,184 1,
Slide 24: 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
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