Banca Sistema S.p.A. · MIL:BST

Banca Sistema — FY2019 Earnings Presentation

15 slides from Banca Sistema's earnings presentation, Feb 7, 2020

  1. Slide 1: FY 2019 Results

    FY 2019 RESULTS 7 February 2020

  2. Slide 2: FY 2019 Results at a Glance

    FY 2019 Results at a Glance  Factoring Turnover +27% y/y equal to €3.1bn Commercial  CQS/CQP outstanding reached €817m, +25% y/y performance  Gold/ jewelry backed loans outstanding at ~€12m, with >9k underlying contracts  Interest Income equal to €80.7m, +8% y/y  Slightly lower funding cost y/y

  3. Slide 3: Core business assets outstanding is growing

    Core business assets outstanding is growing Factoring outstanding CQ Loans outstanding €m €m +7% y/y +25% y/y 1,822 1,839 767 817 1,716 652 Of which 24% under Legal action 31.12.2018 30.09.2019 31.12.2019 31.12.2018 30.09.2019 31.12.2019 Outstanding breakdown (31.12.2019) Outstanding breakdown by Ty

  4. Slide 4: FY 2019 – Balance Sheet

    FY 2019 – Balance Sheet Figures in millions of Euro  Govies’ portfolio (€985m) up q/q, Change in % with an average duration of 17.6 31.12.2018 30.09.2019 31.12.2019 31.12.2018 vs months, it includes €550m ‘Held to 31.12.2019 Collect and Sell’, with an average ASSETS duration of 20.1 months Fina nci

  5. Slide 5: Interest Income growth driven by higher assets

    Interest Income growth driven by higher assets  FY 2019 Interest Income is up 11% y/y, Total Interest Income Adjusted Income margin1 growth is driven by higher assets, €m 4.4% 1Q 2019 Factoring, CQ and Govies’ ptf. Q/q higher 4.7% 1H 2019 contribution is driven by factoring +11% 5.1% 9M 2019 y/y 11

  6. Slide 6: Total Income supported by business growth

    Total Income supported by business growth  FY 2019 Total Income is up 11% y/y, Total Income growth is mainly driven by higher Net Interest Income (NII) €m +11% 100.9  NII y/y increase is driven by Interest 91.1 4.1 1.2 y/y 16.1 Income increase that has more than 15.3 compensated higher Interest Ex

  7. Slide 7: Operating costs up y/y for business growth and Atlantide

    Operating costs up y/y for business growth and Atlantide Administrative Expenses, Net Provisions for Operating Costs Personnel Expenses risk, Servicing Costs, Other and D&A €m FTEs (#) 183 215 +20% of which today #21 coming from the y/y 50.5 merger with Atlantide e 42.2 27.3 23.2 22.3 19.9 25.8 €0.6

  8. Slide 8: Lower funding cost y/y

    Lower funding cost y/y Total Funding breakdown Total Funding breakdown Funding Cost • Cost of funding slightly 0.9% 0.8% 0.8% lower y/y and stable q/q 0.8% 65% • Wholesale component 59% 59% 61% q/q increase is due Wholesale mainly to higher ECB Funding funding equal to €358m 39% Retail of which TLTR

  9. Slide 9: Asset Quality driven by factoring business

    Asset Quality driven by factoring business Gross Non Performing Exposures Net Non Performing Exposures €m 239.7 245.6 205.0 208.4 225.2 196.0 36.9 30.5 57.3 50.6 39.0 57.5 139.3 77.9 109.1 123.3 87.2 122.7 79.1 80.5 58.9 54.6 59.7 55.6 31.12.2018 30.09.2019 31.12.2019 31.12.2018 30.09.2019 31.12.201

  10. Slide 10: Regulatory Capital well above minimum requirements

    Regulatory Capital well above minimum requirements CET1 and Total Capital(1) RWA breakdown €m CET1 Total Capital €m Operational Risk & Market Risk (2) Credit Risk TC Ratio 14.6% 15.0% 17.8% Lower CQ CET1 Ratio 11.4% 11.7% RWA 13.9% 210.6 1,406.1 1,405.9 205.5 160.0 165.1 2019 SREP requirements: 1,24

  11. Slide 11: Annexes

    Annexes

  12. Slide 12: Factoring Turnover

    Factoring Turnover Factoring Turnover €m +27% 3,055 Turnover generated by agreements with Italian Retail banks: 2,406 26% in FY2019 2,010 FY 2017 FY 2018 FY 2019 FY 2019 Factoring Turnover breakdown By Type By Year of Customer’s Customer Concentration Acquisition Tax receivables Before 2016 TOP 10 1

  13. Slide 13: FY 2019 – Income Statement

    FY 2019 – Income Statement Figures in millions of Euro FY 19 vs FY FY 2018 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2019 18 change in % Interest income 99.7 20.0 24.7 26.9 28.1 110.3 21.6 26.9 31.7 30.0 11% Interest expenses (25.1) (6.4) (5.8) (6.4) (6.6) (29.6) (7.0) (7.1)

  14. Slide 14: Disclaimer

    Disclaimer The distribution of this presentation in other jurisdictions may be restricted by law or regulation. Accordingly, persons who come into possession of this document should inform themselves of, and observe, these restrictions. To the fullest extent permitted by applicable law, the companie

  15. Slide 15: Head of Investor Relations

    Carlo Di Pierro Head of Investor Relations carlo.dipierro@bancasistema.it +39 02 80280358 +39 3355288794

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