Credito Emiliano S.p.a. · MIL:CE

Credito Emiliano — 9M 2022 Earnings Presentation

22 slides from Credito Emiliano's earnings presentation, 2022

  1. Slide 1: Group Results 9M22

    yr = GROUP RESULTS 9M22

  2. Slide 2: 3Q22: Key Points

    3Q22: KEY POINTS LOANS GROWTH ASSET QUALITY NPL Ratio at 2.2%, lower than the EU average Loans to customers at €33.2 billion, (2.4%) and well below the average of the Italian up by 5.6% YoY, more than 2 p.p. Banking Industry (3.2%) compared to the Industry, up by 3.3% YoY 5.6% 3.2% 3.3% 2.4% 2.2% 3Q

  3. Slide 3: Business Diversification

    BUSINESS DIVERSIFICATION 1.4% 0.3% 0.5% 0.7% 1.1% 0.0% 1.0% 0.4% 1.6% 12.1% 2.3% 12.6% 11.0% 0.9% 38% 41% 43% 47% 35% 35% 36% 52% 58% 56% 52% 53% 56% 51% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Core NIM on Operating Income NII on Operating Income Income from Financial Activities on Operating Income Perfo

  4. Slide 4: A Growing Digital Approach

    A GROWING DIGITAL APPROACH 1 INTERNET BANKING RETAIL DIGITAL OPERATION: 4 • >735,882 contracts (+3% vs Dec. ‘21) MIGRATION TREND • +14% of online operations vs Sep. 2021 • Incidence on bank accounts at 73% vs • As of September 2022, nearly 94% 70% FY21 of overall transactions made through digital ch

  5. Slide 5: Reclassified Income Statement

    RECLASSIFIED INCOME STATEMENT Var. €/million 2Q22 3Q22 Var. t/t 9M21 9M22 • Ongoing excellent revenue trend (+9.7% vs 9M21), a/a thanks to the growth of NII - which benefited from Operating Income 335.0 351.3 4.9% 949.6 1,041.6 9.7% the increase in interest rates - the good stability of commission c

  6. Slide 6: Net Interest Income (1/3)

    NET INTEREST INCOME (1/3) Net Interest Income (€/mln) 165 Euribor and BTP/Bund spread 1.2% 223 1.1% 192 1.0% 146 149 0.9% 0.8% 135 129 121 0.48% 0.7% 0.6% 128 90 102 101 0.5% 0.4% 117 117 0.3% 0.2% 0.1% -0.36% -0.1% -0.2% -0.54% -0.54% -0.55% -0.57% -0.53% -0.3% -0.4% -0.5% -0.6% -0.7% 1Q21 2Q21 3Q2

  7. Slide 7: Net Interest Income (2/3)

    NET INTEREST INCOME (2/3) Loans to customers Deposit rate 2.25 2.35 0.48 2.21 2.19 2.17 2.14 2.18 0.47 0.45 0.47 0.45 0.44 0.44 1.81 1.56 1.56 1.53 1.51 1.53 1.57 0.08 0.04 0.04 0.04 0.04 0.04 0.04 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Credem: average loans rate Indus

  8. Slide 8: Net Interest Income (3/3)

    NET INTEREST INCOME (3/3) Securities portfolio breakdown (€/mln, %) Italian government bond (€/bn) 6.2 6.0 7,794 10,249 11,627 14,253 14,060 14,824 14,656 5.8 5.6 5.2 4.5 4.6 Ita Govies 9M22 HTC 5.7 HTCS 0.3 40% 40% FVTPL 0.0 45% 44% 42% 41% Total 6.0 58% 1Q21 1H21 9M21 FY21 1Q22 1H22 9M22 4% 4% 4%

  9. Slide 9: Non Interest Margin

    NON INTEREST MARGIN Total *(€/mln) 218.3 187.4 182.3 252.4 226.1 189.3 186.5 Performance Fees 40.7 3.4 39.1 Income from Financial 6.9 1.5 5.5 3.0 56.7 Activities 56.8 58.9 49.6 51.1 59.7 59.7 Banking Fees ** 19.1 17.1 13.4 13.1 15.6 15.7 14.4 Insurance Income 102.9 107.2 117.0 111.8 105.0 99.6 93.2

  10. Slide 10: Operating Costs and D&A

    OPERATING COSTS AND D&A Operating costs* (€/mln) Employees 6,670 195 190 186 212 202 196 187 6,068 6,140 6,195 6,201 6,219 6,608 5,544 5,519 5,604 5,609 5,763 5,899 62 58 57 59 54 58 56 138 131 132 150 144 138 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 3Q22 131 Financial Advisors 1Q

  11. Slide 11: Loans to Customers

    LOANS TO CUSTOMERS Loans to customers (€/bn) Other Loans 10.1 10.1 10.2 9.9 8.6 9.0 9.8 Residential Mortgage Leasing 9.4 9.7 9.8 8.7 9.3 9.6 Consumer Finance 8.9 Short-Term Loans 2.9 2.9 3.0 3.0 3.0 3.1 2.9 2.1 2.4 2.5 1.7 1.8 2.0 2.2 7.8 7.2 7.5 8.5 7.9 8.3 8.0 1Q21 1H21 9M21 2021 1Q22 1H22 9M22 To

  12. Slide 12: Loans: Comparison with the Industry

    LOANS: COMPARISON WITH THE INDUSTRY Loans to Customers growth* Market shares** evolution +5.6% YoY 2.07% 2.11% 2.10% Industry Credem +77% 1.89% 1.95% 1.79% 1.77% 1.66% 1.58% 1.48% 1.28% +3.3% YoY 1.20% MS on Performing Loans 1.16% 1.07% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 9M2

  13. Slide 13: Group Customers Funding: Net Inflows Breakdown

    GROUP CUSTOMERS FUNDING: NET INFLOWS BREAKDOWN 4,592 AUC Direct Deposits AUM + Insurance Total Net Inflows 3,410 2,962 1,880 2,303 1,490 1,319 1,336 1,582 845 930 970 625 511 700 447 237 129 -211 -454 9M18 9M19 9M20 9M21 9M22 • Total net production was positive at more than 1.3 billion and included

  14. Slide 14: Deposits, AUM and Insurance

    DEPOSITS, AUM AND INSURANCE Total funding Diretc deposits & retail bonds** €/mln 9M21 2021 9M22 +0.1% YoY Industry Sight / Saving Depo. 33,700 33,641 33,676 Credem +137% CD and Other Deposits 934 932 984 Direct Deposits 34,635 34,574 34,660 +1.3% YoY Wholesale Bonds* 3,360 2,536 3,708 Insurance Rese

  15. Slide 15: Bonds Issuances and Maturities

    BONDS ISSUANCES AND MATURITIES Covered Bond Issuances (€/mln) Maturities (€/mln) 100 + 750 Green Bond SP 600 CB 500 + Green Bond SP 600 600+ SNP 500 + +Social T2* 200 CB 750 Covered 200 Bond Covered Covered Bond 600 500 SNP Bond Tier 2 200 + 1,250 T2 CRVita 850 107.5 750 Social 750 500 500 Tier 2 Ti

  16. Slide 16: Credit Quality: Gross NPL Ratio

    CREDIT QUALITY: GROSS NPL RATIO 900 2020 Gross Non Performing Loans (€/mln,%) 2021 600 445 398 378 378 376 9M22 316 300 Bad Loans Disposal ~41 mn Bad Loans Disposal ~86 mn 53 43 43 0 Gross Bad Loans Gross UTP Loans Gross Past Due Loans % on Loans (Credem) 1.5 1.2 0.9 1.3 1.2 1.1 0.2 0.1 0.1 % on Loa

  17. Slide 17: NPL: Coverage

    NPL: COVERAGE Addendum & Coverage incl. NPL (€/million) Gross Net Coverage Shortfall* Calendar Shortfall Bad Loans 315.6 81.3 74.24% 26.4 8.3 85.21% + Net NPL +346.0 - Shortfall -46.3 UTP Loans 375.7 229.6 38.89% -9.8 23.0 42.40% Total NPL 734.5 346.0 52.89% 14.1 32.2 59.20% = NPL Net of Shortfall 2

  18. Slide 18: Cost of Risk

    COST OF RISK 59 55 52 42 44 34 38 31 47 45 32 41 24 24 34 39 19 16 10 27 30 21 15 10 3 Figures in bps 13 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 9M22 Cost of risk Cost of risk (net of non-recurring events) • The annualized cost of risk stood at +3 bps, despite 70 62 59 some actio

  19. Slide 19: Assets & Liabilities

    ASSETS & LIABILITIES 33.299 33.512 Assets (€/mln) 1H22 9M22 • Total Loans to customers slightly decreased, due to the usual seasonality on 8,049 8,027 corporate clients, while the securities 7,320 6,483 6,665 5,982 5,957 6,170 portfolio remained broadly stable • Due from Banks increased driven, on t

  20. Slide 20: Liquidity Ratios

    LIQUIDITY RATIOS NSFR LCR 238% 223% 141% 139% 137% 205% 2021 1H22E 9M22E 2021 1H22 9M22 Loan to Deposit Ratio* 0.92 0.93 0.94 • Both LCR e NSFR ratios were well above minimum capital requirements, enabling the Group to have a greater flexibility in setting future funding strategies • ECB unencumbere

  21. Slide 21: Consolidated Capital Ratios

    CONSOLIDATED CAPITAL RATIOS Fully phased data Fully phased data Credem Group Credemholding €, million 2021 9M22 2020 2021 9M22 CET 1 2,868 2,670 2,340 2,591 2,424 Total Capital 3,169 3,071 2,746 2,993 2,959 Capital absorption from: 1,500 1,406 1,337 1,513 1,418 Credit and Counterparty 1,340 1,243 1,

  22. Slide 22: 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

Credito Emiliano S.p.A. (Credem Group) — 9M 2022 Earnings Presentation on 6ix