Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca — 9M FY2021 Earnings Presentation
47 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, May 11, 2021
Slide 1: Mediobanca 9M/3Q Results as at 31 March 2021
MEDIOBANCA 9M/3Q RESULTS AS AT 31 MARCH 2021 Milan, 11 May 2021
Slide 2: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. 9M/3Q Divisional results Section 4. Closing remarks Annexes 1. Details on one-offs 2. Corporate lending portfolio 3. Divisional tables
Slide 3: 9M Results: Growth Confirmed in Revenues, Profit and Capital
9M RESULTS: GROWTH CONFIRMED IN REVENUES, PROFIT AND CAPITAL Executive summary Section 1 Strong business results by all divisions across 9M Revenues growth (up 3% to €2.0bn) driven by record fees (€571m, up 17%) and resilient NII (€1.1bn) Fees representing almost 1/3 of total revenues, driven by WM
Slide 4: 9M Results: Snapshot
9M RESULTS: SNAPSHOT Executive summary Section 1 Mediobanca Group – 9M results as at Mar21 Mediobanca Group – 9M results as at Mar21 Revenues Cost/income CoR Net profit Gross NPL/Ls ROTE adj CET1 ratio DPS €1,964m 46% 51 bps €604m 3.4% 9.4% 16.3%1 70% payout +3% YoY -1pp YoY -10bps YoY +9% YoY Dec20
Slide 5: 3M Takeaways
3M TAKEAWAYS Executive summary Section 1 Mediobanca Group – 3M results as at Mar21 Mediobanca Group – 3M results as at Mar21 Revenues Cost/income CoR Net profit Coverage Coverage Moratoria Net NPL/Ls NPLs Performing €663m 47% 53 bps €193m -2% QoQ +2pp QoQ +14bps QoQ -8% QoQ €0.9bn 1.2% 65% 1.34% +14
Slide 6: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. 9M/3Q Divisional results Section 4. Closing remarks Annexes 1. Details on one-offs 2. Corporate lending portfolio 3. Divisional tables
Slide 7: Strong Asset Gathering in WM
STRONG ASSET GATHERING IN WM… 9M21/3Q21 - Group results Section 2 €3.6bn NNM in Affluent&Private in 9M21, …driving MB Group TFAs to ~€69bn ow €1.4bn in Q3… NNM Affluent & Private (€bn) TFA (€bn) +15% YoY €3.6bn +4% QoQ €2.8bn 2.1 69.3 60.2 66.6 1.4 1.6 0.8 1.4 (0.3) 0.7 1.3 25.2 1.1 24.6 1.0 0.9 22.
Slide 8: Robust Client Activity in CIB
…ROBUST CLIENT ACTIVITY IN CIB... 9M21/3Q21 - Group results Section 2 Market revenues sustained Robust advisory fee income Large transactions in H1 in ECM, sound trend in DCM, Markets Mid-caps deals representing 1/3 of advisory fees in Q3 revenue recovering in Q3 Advisory fees (€m) Markets revenues
Slide 9: And Recovering Volumes in Retail
…AND RECOVERING VOLUMES IN RETAIL… 9M21/3Q21 - Group results Section 2 Consumer Banking: new loans full recovery Residential mortgages: pre-Covid-19 level resumed hampered by third lockdown (€bn) (€bn) 13.7 13.7 13.4 Avg. loan book 13.3 Loan book 13.2 12.9 13.6 12.8 10.7 10.9 Loan book 10.1 10.2 10.
Slide 10: Have Allowed Core Revenues to Remain High
…HAVE ALLOWED CORE REVENUES TO REMAIN HIGH… 9M21/3Q21 - Group results Section 2 Strong Group revenues trend… …driven by WM, well above historical averages… Group revenues, €m, 3M WM revenues, €m, 3M 162 159 156 684 675 663 638 639 641 641 626 145 146 Avg.2 642 607 606 Avg.1 630 Avg.1 150 582 137 138
Slide 11: With Growing Fees (Up 17%) and Resilient NII
…WITH GROWING FEES (UP 17%) AND RESILIENT NII 9M21/3Q21 - Group results Section 2 Group revenues trend by source (€m, 3M) NII trend by division (€m, 3M) €1,082m €1,071m +3% €1,907m €1,964m 359 362 360 361 357 363 351 69 67 67 69 72 72 70 HF&Other 684 675 69 69 66 67 68 69 641 663 72 CIB 606 626 136
Slide 12: Further Improvement in Asset Quality: Moratoria Managed Successfully
FURTHER IMPROVEMENT IN ASSET QUALITY: MORATORIA MANAGED SUCCESSFULLY … 9M21/3Q21 - Group results Section 2 Moratoria: 67% expired, 80% have resumed regular Outstanding moratoria reduced by to 2/3 to 1.7% of payments, well covered Group loans Gross carrying amount (€bn, Mar21)¹ Moratoria as % of 5% G
Slide 13: And Prudent Staging
… AND PRUDENT STAGING 9M21/3Q21 - Group results Section 2 Gross NPLs – Stage 31 Net NPLs – Stage 31 (Net exposure/Loans) ➢ Stage 3 – Gross NPLs flat QoQ, but up 63.1% 64.8% slightly in relative terms due to lower 8% 70.0% 5.00% loans outstanding. Net NPLs down further 55.3% 60.0% in absolute and rel
Slide 14: Cost of Risk Stays Low
COST OF RISK STAYS LOW WITH… 9M21/3Q21 - Group results Section 2 CoR trend (bps) 9M COR 9M COR Writebacks Additional LLP MB Group @61bps MB Group @51bps €m 100% CIB Conservative Consumer B. @202bps Consumer B. @206bps (stage3) Covid-related 361 CIB @(9)bps CIB @(30)bps 3Q20 +2 (13) 248 4Q20 +15 (100
Slide 15: Coverage Ratios Increasing in All Divisions
…COVERAGE RATIOS INCREASING IN ALL DIVISIONS 9M21/3Q21 - Group results Section 2 Net NPLs (€m) of which bad loans (€m) NPL coverage NPLs as % of loans (“deteriorate”) (“sofferenze”) 3.8% 4.1% 65% 3.4% -34% 55% 55% Gross Mediobanca 836 874 1.8% 1.9% 1.2% Group 581 77 78 79 Net Mar20 June20 Mar21 Mar2
Slide 16: 9M Results – Net Profit Up 9% to €604m
9M RESULTS – NET PROFIT UP 9% TO €604M 9M21/3Q21 - Group results Section 2 Financial results Highlights 9m D 3Q21 2Q21 3Q20 Robust trend in core revenues: up 3% to €2.0bn due to €m Mar21 YoY1 Mar21 Dec20 Mar20 effective business diversification. Fees up 17% YoY at Total income 1,964 +3% 663 675 582
Slide 17: CET1 @16.3% with Dividend Payout @70% Accrued
CET1 @16.3% WITH DIVIDEND PAYOUT2 @ 70% ACCRUED 9M21/3Q21 - Group results Section 2 CET1 ratio (phase-in) up10bps QoQ at 16.3%1 +40 +25 (15) (10) ~(30) 16.2% 16.3% 13.9% Pay-out Pay-out Pay-out 50% 70% 70% Mar20 Dec20 Earnings AG RWA Other Dividend Mar21 Phased-in CET1 ratio1 @16.3% (up 10bps QoQ, u
Slide 18: Positive Momentum on Rating, ESG and Credit
POSITIVE MOMENTUM ON RATING ESG AND CREDIT 9M21/3Q21 - Group results Section 2 On 11 March S&P Global Ratings upgraded the Outlook assigned to Mediobanca from Negative to Mediobanca Stable following a bank-specific review. The “BBB” rating remained unchanged, as it is aligned to issuer rating outloo
Slide 19: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. 9M/3Q Divisional results Section 4. Closing remarks Annexes 1. Details on one-offs 2. Corporate lending portfolio 3. Divisional tables
Slide 20: All Divisions with High Double-Digit ROAC
ALL DIVISIONS WITH HIGH DOUBLE-DIGIT ROAC 9M21 Divisional results Section 3 Revenues (€m, 9M) GOP (€m, 9M) Net profit (€m, 9M) ROAC 9.7% ROTE adj. 9.4% +3% +9% Mediobanca 1,964 877 +9% 8.5% ROTE 8.7% 1,907 807 604 Group 552 March20 March21 March20 March21 March20 March21 March20 March21 21% 22% +5%
Slide 21: WM: Double-Digit Growth in NNM, Assets and Net Profit
WM: DOUBLE-DIGIT GROWTH IN NNM, ASSETS AND NET PROFIT… 9M21 Divisional results - WM Section 3 Financial results Highlights 9m D 3Q21 2Q21 3Q20 €m Robust commercial activity in all segments, helped by the Mar21 YoY1 Mar21 Dec20 Mar20 distinctive offering (PB-IB coverage) and ongoing Total income 464
Slide 22: Supported by Strong Commercial Results
…SUPPORTED BY STRONG COMMERCIAL RESULTS… 9M21 Divisional results - WM Section 3 Revenues (9M,€m) NNM trend (3M,€bn) TFA stock trend (€bn) +19% +11% +5% 1.2 264 237 0.9 0.9 0.5 29.9 31.4 0.5 0.8 0.8 Affluent 93 26.3 3.2 76 3.1 +22% (no perf.fees) 0.3 0.3 (no 0.3 2.4 0.7 0.5 11.4 perf.fees) 10.8 0.8 8
Slide 23: And Improved Recurring Marginality
…AND IMPROVED RECURRING MARGINALITY 9M21 Divisional results - WM Section 3 WM fees by source (€m) Asset marginality trend Product evolution over 9M Gross fees excl performance fee/(AUM+AUA) 89 87 MB Private Markets initiatives. Third 85 4 11 4 multi-strategy fund in collaboration with 77 76 72 23 Ru
Slide 24: Consumer Banking: Dealing Effectively with Covid Impact
CONSUMER BANKING: DEALING EFFECTIVELY WITH COVID IMPACT 9M21 Divisional results - Consumer Banking Section 3 Financial results Highlights 9m D 3Q21 2Q21 3Q20 Distribution empowerment ongoing €m Mar21 YoY1 Mar21 Dec20 Mar20 Four new openings in 3Q (1 branch and 3 agencies) for Total income 764 -5% 24
Slide 25: Lockdown Impact Progressively Smoothed, Fast Recovery
LOCKDOWN IMPACT PROGRESSIVELY SMOOTHED, FAST RECOVERY 9M21 Divisional results - Consumer Banking Section 3 Weekly new loans trend (€) 180,000 160,000 1^Lockdown 2^Lockdown 3^Lockdown 140,000 -12% 120,000 -76% -21% 100,000 80,000 60,000 Holiday Holiday -10% season season 40,000 -85% -25% 20,000 0 14/
Slide 26: Asset Quality Indicators Further Enhanced
ASSET QUALITY INDICATORS FURTHER ENHANCED 9M21 Divisional results - Consumer Banking Section 3 …with coverage of performing (3.43%) and NPLs (74%) at Net NPLs at the lowest level since Covid outbreak… highest-ever level Consumer Banking Net NPLs, stock (€m) and incidence to loans (%) Coverage ratios
Slide 27: CIB: Robust Revenue & Asset Quality Progression
CIB: ROBUST REVENUE & ASSET QUALITY PROGRESSION 9M21 Divisional results - CIB Section 3 Financial results Highlights 9m D 3Q21 2Q21 3Q20 9M21 net profit up 49% YoY to €232m (ROAC @17%), €m Mar21 YoY1 Mar21 Dec20 Mar20 reflecting growing revenues (up 23% YoY) favoured by Total income 537 +23% 173 182
Slide 28: Leading Positioning Confirmed in M&A
LEADING POSITIONING CONFIRMED IN M&A… 3Q21 Divisional results - CIB Section 3 The Mediobanca M&A team has been involved in most industry-shaping transactions of the last three quarters, Selected M&A Large Corp Transactions since July 20202 Pending Pending March 2021 January 2021 December 2020 includ
Slide 29: And in Capital Markets
…AND IN CAPITAL MARKETS 9M21 Divisional results - CIB Section 3 The MB Capital Markets teams successfully completed several major ECM Italy 2021 (Bookrunner) since January 20211 transactions for both Italian and international clients, including in DCM, ENEL’s dual-tranche hybrid, Banco BPM’s Additio
Slide 30: Principal Investing
PRINCIPAL INVESTING ROAC@12% 9M21 Divisional results - PI Section 3 Financial results Highlights 9M21 net profit at €199m, down 12% YoY on lower 9m D 3Q21 2Q21 3Q20 €m revenues (down 27% YoY) as 9M20 was impacted by Mar21 YoY1 Mar21 Dec20 Mar20 extraordinary gains on sale of non-core assets while 9M
Slide 31: HF – Improved Results; Comfortable Funding and Liquidity
HF – IMPROVED RESULTS COMFORTABLE FUNDING AND LIQUIDITY POSITIONS 9M21 Divisional results - HF Section 3 Financial results Highlights 9m D 3Q21 2Q21 3Q20 9M21 loss at €118m, 16% lower than in 9M20, with GOP €m improving by 35% due to a strong contribution from Treasury Mar21 YoY1 Mar21 Dec20 Mar20 a
Slide 32: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. 9M/3Q Divisional results Section 4. Closing remarks Annexes 1. Details on one-offs 2. Corporate lending portfolio 3. Divisional tables
Slide 33: Closing Remarks
CLOSING REMARKS Closing remarks Section 4 During the Covid period Mediobanca has reaffirmed its ability to grow (revenues up 3%, net profit up 9%) and deliver above industry-average profitability (ROTE >9%) and shareholder return1 due to its distinctive specialized business mix exposed to structural
Slide 34: Mediobanca 9M/3Q Results as at March 2021
MEDIOBANCA 9M/3Q RESULTS AS AT 31 MARCH 2021 Milan, 11 May 2021
Slide 35: Agenda
Agenda Section 1. Executive summary Section 2. 9M/3Q Group results Section 3. 9M/3Q Divisional results Section 4. Closing remarks Annexes 1. Details on one-offs 2. Corporate lending portfolio 3. Divisional tables
Slide 36: One-Off Non-Operating Items: Update
ONE-OFF NON-OPERATING ITEMS: UPDATE 9M results as at March 2021 Annex 1 Several positive and negative o/w in o/w in o/w in Non operative one-off items - €m 9M21 one-off items, negative by €14m IQ21 IIQ21 IIIQ21 at 9M net profit level Revenues (16) (21) 5 - Burgo loan moved back to Stage 1, releasing
Slide 37: Corporate Lending Portfolio
CORPORATE LENDING PORTFOLIO 9M results as at March 2021 Annex 2 WB loan book by sector (as at Mar21) 20% High impact from Covid-19 10% Immediate impact from Covid-19 10% 8% 7% 7% 6% 4% 4% 3% 3% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% 0.5% 0.4% 0.1% WB loans by rating (as at Mar21) WB loans by geography3 (as a
Slide 38: Mediobanca Group P&L
MEDIOBANCA GROUP P&L 9M results as at March 2021 Annex 3 9m 9m ∆ €m 3Q21 2Q21 1Q21 4Q20 3Q20 Mar21 Mar20 YoY1 Total income 1,964 1,907 3% 663 675 626 606 582 Net interest income 1,071 1,082 -1% 351 363 357 361 360 Fee income 571 487 17% 188 194 189 143 159 Net treasury income 152 89 71% 65 51 36 48
Slide 39: Mediobanca Group A&L
MEDIOBANCA GROUP A&L 9M results as at March 2021 Annex 3 ∆ ∆ €bn Mar21 Dec20 June20 Mar20 QoQ1 YoY1 Funding 56.6 55.9 54.9 53.9 +1% +5% Bonds 19.0 18.7 18.8 19.2 +2% -1% Direct deposits (retail&PB) 25.2 24.6 23.8 22.4 +2% +13% ECB 7.0 6.2 5.7 4.7 +13% +49% Others 5.4 6.4 6.7 7.6 -16% -29% Loans to c
Slide 40: Wealth Management Results
WEALTH MANAGEMENT RESULTS 9M results as at March 2021 Annex 3 9m 9m ∆ €m 3Q21 2Q21 1Q21 4Q20 3Q20 Mar21 Mar20 YoY1 Total income 464 444 +5% 162 156 146 140 145 Net interest income 209 204 +3% 72 69 68 67 66 Fee income 247 235 +5% 87 85 76 72 77 Net treasury income 8 5 +48% 3 3 2 1 3 Total costs (343
Slide 41: Consumer Banking Results
CONSUMER BANKING RESULTS 9M results as at March 2021 Annex 3 9m 9m ∆ €m 3Q21 2Q21 1Q21 4Q20 3Q20 Mar21 Mar20 YoY1 Total income 764 805 -5% 249 256 260 266 273 Net interest income 664 711 -7% 216 223 226 237 237 Fee income 100 94 +6% 33 33 34 29 36 Total costs (231) (227) +2% (80) (78) (73) (77) (77)
Slide 42: CIB Results
CIB RESULTS 9M results as at March 2021 Annex 3 9m 9m ∆ €m 3Q21 2Q21 1Q21 4Q20 3Q20 Mar21 Mar20 YoY1 Total income 537 436 +23% 173 182 183 139 104 Net interest income 219 203 +8% 70 77 72 69 67 Fee income 249 174 +43% 77 84 88 52 52 Net treasury income 69 59 +17% 25 21 23 19 (15) Total costs (226) (
Slide 43: Principal Investing Results
PRINCIPAL INVESTING RESULTS 9M results as at March 2021 Annex 3 9m 9m ∆ €m 3Q21 2Q21 1Q21 4Q20 3Q20 Mar21 Mar20 YoY1 Total income 185 252 -27% 61 78 46 61 67 Impairments 37 (32) n.m. 18 6 13 21 (40) Net result 199 225 -12% 70 77 52 70 38 Book value (€bn) 4.6 4.3 +6% 4.6 4.4 4.2 3.9 4.3 Ass. Generali
Slide 44: Holding Function Results
HOLDING FUNCTION RESULTS 9M results as at March 2021 Annex 3 9m 9m ∆ €m 3Q21 2Q21 1Q21 4Q20 3Q20 Mar21 Mar20 YoY1 Total income 27 (13) n.m. 22 8 (3) 6 (1) Net interest income (34) (41) -16% (12) (9) (13) (14) (10) Net treasury income 53 19 n.m. 32 14 7 19 7 Fee income 8 9 -7% 2 3 3 2 2 Total costs (
Slide 45: Glossary
GLOSSARY MEDIOBANCA BUSINESS SEGMENT PROFIT & LOSS (P&L) and BALANCE SHEET CIB Corporate and investment banking DPS Dividend per share WB Wholesale banking EPS Earning per share EPS adj. Earning per share adjusted1 SF Specialty finance ESG Environmental, Social, Governance CB Consumer banking FAs Fi
Slide 46: Disclaimer & Declaration of Head of Financial Reporting
DISCLAIMER & DECLARATION OF HEAD OF FINANCIAL REPORTING Disclaimer This document includes certain projections, estimates, forecasts and consequent targets which reflect the current views of Mediobanca – Banca di Credito Finanziario S.p.A. (the “Company”) with regard to future events (“forward-lookin
Slide 47: Investor Contact Details
INVESTOR CONTACT DETAILS Mediobanca Group Investor Relations Piazzetta Cuccia 1, 20121 Milan, Italy Jessica Spina Tel. no. (0039) 02-8829.860 Luisa Demaria Tel. no. (0039) 02-8829.647 Matteo Carotta Tel. no. (0039) 02-8829.290 Marcella Malpangotto Tel. no. (0039) 02-8829.428 Email: investor.relation