Bper Banca S.p.a. · MIL:BPE
Bper Banca — H1 2021 Earnings Presentation
33 slides from Bper Banca's earnings presentation, Aug 4, 2021
Slide 1: 1H21 Consolidated Results
1H21 Consolidated Results Piero Luigi Montani, CEO 4 August 2021 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 information purposes, and only in order to present its strategies be reproduced or published as a whole or in part, nor may such and main financial figures. informati
Slide 3: Important methodological note
Important methodological note Change in the scope of consolidation and Purchase Price Allocation Change in the scope of consolidation 1H21 saw the completion of the integration in BPER Banca of the going concern consisting in 620 branches1 acquired from the Intesa Sanpaolo Group (ISP). The transfer
Slide 4: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 4
Slide 5: Executive summary
Executive summary 1H21 results show sharp volumes growth, higher profitability, asset quality improvement and stronger competitive position • Integration process of the going concern (620 branches) acquired from the Intesa Sanpaolo Group successfully completed Significant • Good retention of new cli
Slide 6: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 6
Slide 7: Total funding
Total funding Balance sheet structure Sharp increase in total funding to 263.6 €bn (+42.3%YTD), driven by going concern contribution (72.91 €bn) and positive commercial input Total Funding breakdown (€mln; %) Total Funding, quarterly trend (€bn) +3.3% Total Funding Dec 20 Mar 21 Jun 21 Chg. Q/Q Chg.
Slide 8: Direct funding
Direct funding Balance sheet structure Direct funding rose to 98.5 €bn in 1H21 (+56.0% YTD) driven by going concern contribution (31.61 € bn) Direct Funding breakdown (€mln; %) Direct Funding, quarterly trend (€bn) +4.3% 98.5 Chg. Q/Q Chg. YTD €/mln Dec 20 Mar 21 Jun 21 94.4 (% ) (% ) 2.2 29.4 UBI C
Slide 9: Indirect deposits
Indirect deposits Balance sheet structure Total indirect deposits up to 165.1 €bn (+35.2% YTD), with going concern contribution of 41.31 €bn Indirect Deposits2 (€mln;%) Indirect Deposits quarterly trend (€bn) +2.7% 165.1 160.7 Chg. Q/Q Chg. YTD 37.8 UBI 3.6 €/mln Dec 20 Mar 21 Jun 21 going On a like
Slide 10: Customer loans
Customer loans Balance sheet structure Net customer loans at 76.3 €bn (+43.9% YTD) Net customer loans breakdown (€mln;%) Net customer loans, quarterly trend (€bn) +1.2% 76.3 75.4 Chg. Q/Q Chg. YTD 1.2 €/mln Dec 20 Mar 21 Jun 21 21.8 UBI (% ) (%) going concern 75.1 52.6 52.9 53.0 On a like- Current A
Slide 11: Loan payment moratoria and State guaranteed loans
Loan payment moratoria and State guaranteed loans Balance sheet structure Strong reduction in outstanding loan payment moratoria vs. 1Q21 Loan payment Moratoria (€bn; %) State guaranteed loans (€bn; %) 16.0 -60% +7% 6.5 SACE 8.1 o/w 2.7bn related to the 6.1 8% Cura Italia Law Decree, expiring on 31/
Slide 12: Asset Quality (1/3)
Asset Quality (1/3) Balance sheet structure • Continuos improvement in asset quality thanks to going concern contribution and derisking actions. • Steady reduction in the NPE ratios Loan book breakdown: stock and coverage (€mln; %) NPE stock and NPE ratios over time (€bn; %) Dec 20 Mar 21 Jun 21 9.1
Slide 13: Asset Quality (2/3)
Asset Quality (2/3) Balance sheet structure Stage 2 net loans stock of 9.5 €bn (12.9% of Group’s performing loans) with coverage increased to 3.0% Stock stage 2 net loans, quarterly trend (€bn) Coverage stage 2 net loans, quarterly trend (%) 9.5 3.0% 9.4 0.1 2.6 UBI 2.4% going 6.1 concern 1.9% 1.8%
Slide 14: Asset quality (3/3)
Asset quality (3/3) Balance sheet structure Default rate at 0.8% from 1.0% in Dec.’20. Recovery rate continues its positive trend Default rate (%) Bad loans average recovery rate1 (%) (Bper Credit Management) 2.1% 1.9% 6.9% 7.1% 1.7% 6.3% 5.3% 1.0% 4.3% 0.8% 2017 2018 2019 2020 1H21* 2017 2018 2019
Slide 15: Financial assets portfolio
Financial assets portfolio Balance sheet structure Financial assets portfolio of 27.1 €bn up by 2.4 €bn YTD Financial Assets breakdown (€mln; %) Italian Government bonds1 (€bn) 8.3 7.8 €/mn FVTPL FVOCI AC Total % on total Bonds 314 6,212 19,487 26,013 96.1% 6.4 o.w. Italian gov 1 126 416 7,727 8,268
Slide 16: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 16
Slide 17: Profit & Loss
Profit & Loss Profit and Loss • 1H21 results of 501.8 €mln affected by non-recurring items related to the integration process • Profit before tax of 259.7 €mln, excluding one-offs Comments: Quarterly trend Annual trend 1 +21.3€mln mainly related to capital gain on securities disposals (€/mln) 1Q21 2
Slide 18: Net Interest Income
Net Interest Income Profit and Loss 1H21 NII at 728.3 €mln of which 632.2 €mln from commercial activity with customers Net Interest Income1 Breakdown (€mln) Net Interest Income quarterly trend1 (€mln) 384.8 o/w o/w Chg. €/mln 1H21 343.5 2.9 O/w IFRS9 and IFRS16 1Q21 2Q21 % 320.3 311.9 3.3 Commercial
Slide 19: Net commission income
Net commission income Profit and Loss 1H21 Net commission income reached 734.0 €mln, with a growing share of Indirect deposits and bancassurance related fees Net Commission Income over time1 (€mln) 734.0 405.8 10.5 • Net commission income uptrend accelerated in 328.1 1H21, supported by the strong co
Slide 20: Trading income and Dividends
Trading income and Dividends Profit and Loss Trading income came in very strong reaching 119.7 €mln in 1H21, as it benefitted from positive market performance and capital gains on securities disposals Trading income over time (€mln) 119.7 Dividends 12.0 4.6 1.1 1.7 12.3 (€mln) 20
Slide 21: Operating costs
Operating costs Profit and Loss 1H21 operating costs totalled 1,111.5 €mln and were impacted by one-off charges mainly in relation with the going concern integration process Operating costs breakdown1 (€mln) Operating costs over time2 (€mln) o/w o/w Chg 1H21 1Q21 2Q21 % Staff expenses 657.2 302.1 35
Slide 22: Provisions and other items
Provisions and other items Profit and Loss • Adoption of a very conservative approach to provisioning • Badwill generated by the going concern acquisition totalled 1.1 €bn Provisions and other items (€mln) LLPs (€mln) and Cost of credit* (%) over time 417.7 o/w o/w Chg 1H21 % 1Q21 2Q21 Total Provisi
Slide 23: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 23
Slide 24: Liquidity
Liquidity Liquidity and Capital adequacy High level of liquidity with LCR >200% and liquidity buffer close to 32.8 €bn Total eligible Assets over time* (€mln) Eligible Assets Pool Composition (%) +6.5% 29,249 29,911 32,844 28,095 28,657 19,924 22,790 18,991 9,877 10,047 9,666 10,054 Dec 20 Mar 21 Ju
Slide 25: Capital
Capital Liquidity and Capital adequacy Proforma Fully Phased CET1 at 13.52% with large buffer vs. SREP requirement (8.125%) Proforma Fully Phased CET1 (%) Pro-forma Phased in CET1 ratio of 14.52% +16 bps +6 bps -12 bps 1 13.42% 13.52% Mar 21 Net result of the period Other ISP going concern RWA Jun 2
Slide 26: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 26
Slide 27: Final remarks
Final remarks PROFITABILITY INCREASE ASSET QUALITY SOLID CAPITAL POSITION Profit before tax excluding IMPROVEMENT Fully Phased CET1 ratio one-offs Gross NPE ratio 13.5% 259.7 €mln 5.7% • Excellent results despite macroeconomic scenario still impacted by the pandemic, characterised by increasing oper
Slide 28: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 28
Slide 29: Customer loans
Customer loans Annexes Portfolio composition Net customer loans breakdown by sector Customer loans breakdown by geographical (€mln; %) areas1(%) % on Total Δ% Business sector Jun 21 Customer vs Dec 20 Loans North Centre Manufacturing 11,264 14.8% +46.9% Wholesale and retail services, 6,412 8.4% +44.
Slide 30: Asset quality
Asset quality Annexes Asset quality breakdown (excl. customer debt securities) Gross exposures (€/mn) Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 Chg YTD Chg Y/Y % % % % % Abs. Chg (%) Abs. Chg (% ) Non Performing Exposures (NPEs) 5,008 9.1% 4,896 8.8% 4,343 7.8% 4,778 6.1% 4,470 5.7% 127 +2.9% -538 -10.7% B
Slide 31: Financial Assets: highlights
Financial Assets: highlights Annexes Bond PTF Geographical breakdown (%) Govies PTF Geographical breakdown (%) Other Germany 7.3% Other 5.6% 24.2% USA 6.1% Spain Italy 12.7% USA 40.7% 5.3% Spain 7.4% Italy 68.3% Germany 8.3% France 14.3% 5.4 Bonds PTF Maturities1 (€bn) 18.3 Italian Govies Maturities
Slide 32: Bond maturities and issuances: highlights
Bond maturities and issuances: highlights Annexes Outstanding bonds1 (€bn) Bonds issued (€bn) 1.2 Dec 20 Jun 21 0.9 Wholesale bonds 3.5 3.9 0.6 0.6 0.6 1.2 0.5 o/w covered bonds 1.9 1.9 o/w subordinated bonds 0.9 0.9 0.5 0.5 0.5 Retail bonds 0.1 0.3 1.0 0.8 0.1 0.1 0.1 Total bonds 4.5 4.6 2016 2017
Slide 33: Contacts for Investors and Financial Analysts
Contacts for Investors and Financial Analysts Fabio Pelati Nicola Sponghi Head of Investor Relations Investor Relations Via San Carlo, 8/20 - 41121 Modena - Italy Via San Carlo, 8/20 - 41121 Modena - Italy +39 059 2021369 +39 059 2022219 fabio.pelati@bper.it nicola.sponghi@bper.it 33