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

Banca Monte Dei Paschi Di Siena — 1H 2011 Earnings Presentation

38 slides from Banca Monte Dei Paschi Di Siena's earnings presentation, Aug 26, 2011

  1. Slide 1: 1H and 2Q2011 Results Presentation

    1H and 2Q2011 Results Presentation Siena, 26th August 2011

  2. Slide 2: 1H2011 Results: Highlights (1/2)

    1H2011 Results: Highlights (1/2)  Direct Funding: +5.4% YoY, with Market share up 15bps in 2Q  Loans: +2.9% YoY, with Market share up 21bps in 2Q  Specialized credit flows*: €8bn in 1H, +31% YoY  Pension Funds Market Share at 6.5% (+5bps in 2Q); Factoring Market Share at 6% (+110bps vs Dec 2010)

  3. Slide 3: 1H2011 Results: Highlights (2/2)

    1H2011 Results: Highlights (2/2)  Revenues: +5.1% YoY  Net Operating Profit: +26.3% YoY  Net Profit: €261mln  High value from the Group’s product companies:  MPS Capital Services: Net Operating Profit +70% YoY  MPS L&F: Net Operating Profit +131% YoY  Consum.it: Net Operating Profit +44% YoY

  4. Slide 4: Network Reorganization saw a strong acceleration in 2Q

    While redesigning and implementing the new MPS organisation ... Network Reorganization saw a strong acceleration in 2Q with full completion in July Actions Human Resources (Ytd) 100 Local Market Units  700 resources redeployed from head office to network units (to intensify created market presence

  5. Slide 5: … with no negative impact on productivity

    … with no negative impact on productivity Revenues per employee Costs per employee 190.6 72.1 185.8 176.9 70.2 68.1 €/000 €/000 2007 2010 1H11 annualized 2007 2010 1H11 annualized Deposits Market Share Front / Total Staff Ratio 8.40% c70% 8.26% 68% 7.39% 62% 2007 2010 1H11 2007 2010 Jul-11 pag. 5

  6. Slide 6: ..maintaining a solid liquidity/capital position

    ..maintaining a solid liquidity/capital position  Maturity of Institutional funding:  2H2011: €0.4bn (already funded)  2012: €5.2bn (>20% already funded)  Maturity of Retail Funding:  2H2011: €3.4bn (already funded)  2012: €7.7bn (>12% already funded)  Unencumbered Counterbalancing Capacity:

  7. Slide 7: 1H and 2Q11 Results

    1H and 2Q11 Results 1H and 2Q11 P&L (mln €) 1H11 1H11/1H10 2Q11 2Q11/1Q11 Net Interest Income 1,696.4 -4.9% 818.7 -6.7% Net Fees 932.0 -3.3% 459.3 -2.8% Basic income 2,628.4 -4.3% 1,278.0 -5.4% Dividends 47.4 +57.5% 20.1 -26.7% Trading 222.4 n.s. 118.5 +14.1% Total Revenues 2,898.0 +5.1% 1,415.4 -4.

  8. Slide 8: Business & Market: Sound commercial performance

    Business & Market Sound commercial performance Total funding  Direct Funding: +5.4% YoY and +3.8% vs March 2011, at €166.5bn +6 €bn  Direct Funding Market Share*: 309 +15bps vs March 2011 303 292 284  Loans: +2.9% YoY and +1.7% vs March 2011, at €157.3bn  Loans Market Share**: +21bps vs € bn Mar

  9. Slide 9: Funding and lending volumes

    Funding and lending volumes Direct Funding Direct Funding Market Share* +5.4% +40bps +3.8% +15bps 166.5 158.0 158.5 160.4 7.48% 7.24% 7.33% 7.08% € bn Jun-10 Dec-10 Mar-11 Jun-11 Jun-10 Dec-10 Mar-11 Jun-11 Total Lending Total Lending Market Share** +2.9% -3bps +1.7% +21bps 7.72% 7.69% 156.2 154.7 1

  10. Slide 10: Specialized Product Flows

    Specialized Product Flows Lending flows MPS Capital Services: Disbursements +31.2% +3.7% 8,738 8,061 1,130 6,143 3,488 1H10 1,089 1H11 € mln € mln Mortgages Specialised credit and 1H10 1H11 corporate financial products Leasing Flows & Factoring Turnover Consumer Credit Flows +52.9% -2.3% 1,442 1,409

  11. Slide 11: Increasing customer base

    Increasing customer base High Value-Added Services Financial Advisory Financial Advisory Services: Customers Services: Assets c19,000 New current accounts 174 144 in 1H11 25.2 29.7 (7,200 in FY10) 82 14.8 Conto Zip: /000 €bn 2009 2010 1H11 2009 2010 1H11 an average of 255 new accounts opened daily R

  12. Slide 12: An Analysis of Revenues

    An Analysis of Revenues Resilient revenues with a strong contribution from product companies Total Revenues  Total Revenues: +5.1% YoY, with 2Q revenues up 3.8% vs 2Q10 +5.1% • NII -4.9 YoY, with Consumer/Corporate components +2.1% YoY (benefitting 2,898 from an increase in the short term spread) 2

  13. Slide 13: A focus on Net Interest Income

    A focus on Net Interest Income Net Interest Income -4.9% 1,784.3 1,696.4 878 819 18% 9% Finance/ALM Contribution 82% 91% Consumer/Corporate Components € mln € mln 1H10 1H11 1Q11 2Q11 1H11 vs 1H10 2Q11 vs 1Q11 1,784 1,696 +21 +8 348 -34% 230 878 Finance/ALM -4 Contribution 819 1,466 Consumer/Corporat

  14. Slide 14: Net Interest Income: Consumer/Corporate and Finance/ALM components

    Net Interest Income: a focus on input from Consumer/Corporate and Finance/ALM components 2Q Main Consumer/Corporate effect Consumer/Corporate Loans Short Term Spread +98bps +64bps +10bps 31/03/11 30/04/11 31/05/11 30/06/11 1H10 2010 1Q11 1H11 2Q Main ALM/Finance effect Short Term Funding Medium/Long

  15. Slide 15: Trading/valuation of financial assets

    Trading/valuation of financial assets Trading/valuation of financial assets 222 119 104 € mln € mln 1H10 1H11 1Q11 2Q11 -34 Trading/valuation of financial assets: 1H11 breakdown 137 222 -24 34 76 € mln MPS Capital BMPS and other Gains on disposal Fair value fin. Total 1H11 Services companies of L&R,

  16. Slide 16: Financial assets

    Financial assets GMPS Securities and Derivatives Portfolio Market Value (€ mln) 30 June 2011 Bond Portfolio €38.4bn: HFT 09,744 c +2.1€bn since Dec 2010 AFS 24,935  HFT: -0.4 €bn L&R 03,750  AFS: +3.1 €bn Total Portfolio 38,430  L&R: -0.6 €bn Portfolio Breakdown by type of issuer Italian Governme

  17. Slide 17: Fees and Dividends

    Fees and Dividends Fees and Dividends -1.4% -4.1% 993.5 979.4 500.1 479.3 € mln € mln 1H10 1H11 1Q11 2Q11 Fees Dividends Fees Dividends AXA MPS, Prima Sgr and B.U. Financial Fees 1H11 vs 1H10 Advisors Contribution* +14% 15.3% 10.0% 156.4 o/w 137.5 -3.3% -13.7% -6.0% € mln Total Fees Continuing AuM P

  18. Slide 18: The value of diversification

    The value of diversification MPS Capital Services * (CIB Unit) MPS Leasing & Factoring * +69.7% +131.1% 131.7 77.6 20.2 8.7 € mln € mln 1H10 1H11 1H10 1H11 Consum.it * (Consumer Credit) Antonveneta* +43.8% +36% 72.6 30.0 53.4 20.8 € mln € mln 1H10 1H11 1H10 1H11 * Net Operating Profit pag. 18

  19. Slide 19: Operating costs

    Operating costs Further cost containment Operating costs  Operating Costs: -1.3% YoY (excluding impact from RE deal) +1.7% -1.3% Excluding impact  C/I at 58.4% vs 61.6% Dec 10 from RE Deal  Personnel Costs: -1.4% YoY, -4.7% 1,692.9 QoQ; 294 net outflows since Dec 2010, 1,664.0 maily from HQ  Fro

  20. Slide 20: Efficiency improvement continues

    Efficiency improvement continues Trend of GMPS Total Costs 2007 2008 2009* 2010 1H11** -0.2% -0.8% -8.0% -5.2% -1.3% Operating Costs over time Cost/Income 67.2% 64.7% 979.6 61.6% 905.1 857.8 855.2 58.4% 837.6 € mln 2008 Quarterly 2009 Quarterly 2010 Quartely 1Q11 2Q11 2008*** 2009 2010 1H11 avg*** a

  21. Slide 21: Personnel Expenses and Other Admin Expenses

    Personnel Expenses and Other Admin Expenses Personnel Expenses -1.4% -0.1% -4.7% 1,076.8 1,061.6 552.8 543.5 518.7 518.1 € mln € mln 1H10 1H11 2Q10 2010 Quartely 1Q11 2Q11 avg Other Administrative Expenses +9% +9% - 3.4% - 3.1% Excluding impact Excluding impact from RE Deal from RE Deal 550.5 505.2

  22. Slide 22: Asset Quality

    Asset Quality Asset quality in control: Loan loss provisions  Cost of credit at 72bps (vs74bps -3.5% as at Dec 2010)  Loan loss provisions: -3.5% YoY 590.0 569.4  NPLs market share: -590bps since Dec 08 € mln 1H10 1H11 pag. 22

  23. Slide 23: Provisions back on track

    Provisions back on track Provisions (bps) -26bps 98 -2bps 74 72 Dec-09* Dec-10 Jun-11 Breakdown by Business Units (bps) -2bps +3bps -9bps +4bps -8bps -18bps -22bps vs Dec-10 vs Dec-10 vs Dec-10 vs Dec-10 vs Dec-10 vs Dec-10 vs Dec-10 314 72 75 74 52 47 43 GMPS BMPS BAV MPS Capital MPS L&F Consum.it

  24. Slide 24: Trend in NPL and Watchlist inflows

    Trend in NPL and Watchlist inflows NPL and Watchlist Inflows 853 -7% 793 1,213 1,134 +7% € mln 1H10 1H11 Watchlist NPL BMPS Watchlist & NPL flows 1Q Monthly 2Q Monthly (€ mln) Avg Avg North West 10.2 28.4 North East 15.3 11.0 Center 27.9 26.3 Tuscany 26.4 16.1 South 30.0 32.8 pag. 24

  25. Slide 25: Trend in Impaired Loans coverage

    Trend in Impaired Loans coverage NPL coverage 56.5% 55.4% Impaired loans coverage 40.1% 40.7% Jun-10 Jun-11 Watchlist coverage 20.3% 18.5% Jun-10 Jun-11 Impaired loans coverage: MPS vs Italian Banks* Jun-10 Jun-11 Restructured Loans coverage +670bps 40.7% 34.0% 10.4% 3.6% Jun-10 Jun-11 Italian Banks

  26. Slide 26: Trend in Impaired Loan

    Trend in Impaired Loan Market share of Performing and Non Performing Loans * c.+31bps Delta of Performing Loan Market Share Delta of NPL Market Share c.-590bps Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Impaired loans (€ mln) Gross Net NPL 13,584 6,055 vs Mar 11 +6.1% +8.0% Watchlist 5,229 4,168 vs M

  27. Slide 27: Risk and Capital Management

    Risk and Capital Management Monitoring of capital and liquidity position: CT1 2012 Stress, with additional measures*  Loan/Deposit ratio down to 0.94 vs Italian Banks sample 0.99 in Dec 2010  Unencumbered Counterbalancing 9.2% capacity at €8.3bn (June 2011) 8.1% 7.6% 7.2% 6.2%  Tier 1 Ratio at c9

  28. Slide 28: 2011 funding needs funded

    2011 funding needs funded Maturity of Institutional Bonds from 2011 (€bln) Loan/Deposit ratio Senior Subordinated Covered Total Notes Notes Bonds 2011 0.4 - - 0.4 100% Completed 1.02 0.99 2012 4.6 0.5 - 5.2 >20% Completed 0.98 0.94 2013 3.5 0.9 1.3 5.6 2014 2.1 - - 2.1 2015 0.5 0.1 1.0 1.6 2008 2009

  29. Slide 29: A focus on BMPS funding

    A focus on BMPS funding Institutional Issuance and Maturities in 2011 and in 2012 5.2 4.0 * >20% already covered 2.9 € bn Issuance from Dec 10 to July 11 2011 Maturities 2012 Maturities Retail Issuance and Maturities in 2011 and in 2012 7.7 8.3 ** 12% already covered 7.4 € bn Issuance from Dec 10 to

  30. Slide 30: Tier 1

    Tier 1 Tier 1 over time Including T-Bond coupon payment and Fresh 2003 buyback (c. -30bps) c.200bps c.40bps c9.5% 8.9% 8.9% 8.4% c.-180bps 2010 1H11 RE benefit from 3Q Capital increase T-bond repayment* 1H11 Tier 1 pro-forma Core Tier 1 pro-forma RE Deal: inclusion in Tier 1 Capital from September 2

  31. Slide 31: Despite a strengthened competitive positioning

     Despite a very challenging environment, the Group has strengthened its competitive positioning, while continuing to expand its market share  The Balance sheet structure has been reinforced and is more than ever based on a strong liquidity position thanks to its funding capacity and strong capital

  32. Slide 32: Thank you for your attention - Q&A

    Thank you for your attention Q&A pag. 32

  33. Slide 33: pag. 33

    pag. 33

  34. Slide 34: A focus on funding volumes and inflows

    A focus on funding volumes and inflows Direct Funding (€bn) Securities 2011: Breakdown Total: Total: Total: Total: €155 bn 1.6% €142 bn €158bn €166bn Total: €113 bn 32.6% 64.3 60.7 65.4 60.9 o/w 52.9 Covered Bonds 97.8 101.1 22.9 % 81.6 91.1 60.4 65.8% 2007 2008 2009 2010 1H11 Customers accounts Sec

  35. Slide 35: A focus on BMPS institutional funding

    A focus on BMPS institutional funding Issuance and Maturities of Senior and Subordinated Notes in 2010 and in 2011 Lower Tier 2 Covered Bonds Senior RMBS 1,750 1,250 1,250 1,000 1,000 1,000 1,000 500 350 150 € mln -350 -600 -1,000 -2,500 Feb Apr Jun Jun Aug Sept Sept Sept Oct Nov Feb Mar May Jun 201

  36. Slide 36: Contacts

    Contacts Declaration of the Financial Reporting Officer Strategic Planning, Research & Pursuant to para. 2, article 154- bis of the Consolidated Law on Investor Relations Finance, the Financial Reporting Alessandro Santoni (Head) Officer, Mr. Daniele Bigi, declares that the accounting information Pi

  37. Slide 37: 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

  38. Slide 38: fe DEI PASCHI

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

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