Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca — 9M FY2019 Earnings Presentation
39 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, May 9, 2019
Slide 1: 3Q19/9M results as at March 2019
Mediobanca 3Q19/9M results as at 31 March 2019 9M results Marked by growth Milan, 9 May 2019
Slide 2: Agenda
Agenda Section 1. Group results as at March 2019 Section 2. Messier Maris & Associés Section 3. Closing remarks Annexes 1. Quarterly segmental reporting tables 2. Glossary
Slide 3: Growth path continues
Growth path continues 9M results as at March 2019 Section 1 9M results show record high revenues, GOP and ROTE Growth in TFAs (to €68bn, up 8% YoY) supported by €5.1bn of NNM in last 9M Growth in loans (to €43bn up 8% YoY) Growth in funding (to €52bn, up 8% YoY, NSFR at 107%) with cost under control
Slide 4: Strong achievements on asset and liabilities side
Strong achievements on asset and liabilities side… 9M results as at March 2019 Section 1 GROWTH IN LOANS and NII FUNDING INCREASED FY20 PRE-FUNDING UNDERWAY Loan book up to €43bn (up 8% YoY and 1% QoQ) Funding up 8% to €52bn (up 2% QoQ) WM: mortgages up 9% (new loans up 10%) WM deposits at €23bn, up
Slide 5: Matched with sizeable investments in distribution
…matched with sizeable investments in distribution… 9M results as at March 2019 Section 1 WEALTH MANAGEMENT: ROAC 18% CONSUMER BANKING: ROAC 31% Affluent: sales force up to 750 professionals Branch network up to 196 (up 12%, 21 new branches FAs network up to 319 (288 at Dec.18, and up 5x opened in t
Slide 6: Drove 7% increase in GOP
… drove 7% increase in GOP… 9M results as at March 2019 Section 1 MB Group 9M19 gross operating profit after LLPs by source (€m) +7% 20 (39) 26 12 5 (43) 33 -5% +10% +1% +21% +5% -7% +3% Revenues up 5% 813 870 826 GOP risk adj. Net interest Fee Treasury Ass.Generali Total LLPs GOP risk adj. Other PB
Slide 7: Positive contributions by almost all divisions
…with positive contributions by almost all divisions 9M results as at March 2019 Section 1 MB Group operating profit by division (9M, €m) +7% 19 26 (16) 14 14 - -5% +7% +22% +7% 870 813 GOP risk adj. Wealth Consumer Corporate & Principal HF GOP risk adj. 9M-Mar18 Management Banking Investment Bankin
Slide 8: Group ROTE @10% with CET1 @14.3%
Group ROTE @10% with CET1 @14.3% (up40bps YoY) All divisions with high-double digit ROAC Revenues (€m) GOP (€m) PBT (€m) ROAC1 +5% ROTE +7% 11% -5% 10% Mediobanca 1,800 1,884 870 10% 813 871 826 Group ROTE adj. March18 March19 March19 March19 March18 March19 March18 March19 18% Wealth +7% 13% +22% +
Slide 9: Long-term growth continuing: NII up 3%
Long-term growth continuing: NII up 3% 9M results as at March 2019 Section 1 NII by division (€m) Loans by division (€bn) 357 +3% WB 345 344 346 +9% Specialty Finance 342 +22% 1,014 1,047 13.8 14.8 15.0 200 205 3Q18 4Q18 1Q19 2Q19 3Q19 2.6 2.3 1.9 190 194 Mar18 Dec18 Mar19 Mar18 Dec18 Mar19 675 Cons
Slide 10: Funding plan completed and CoF under control
Funding plan completed and CoF under control 9M results as at March 2019 Section 1 Funding stock breakdown (€bn) Avg. cost of funding trend (bps vs Eur3M) +6% 48.9 50.8 52.0 155 5.9 145 6.3 6.0 130 4.3 4.3 4.3 100 19.2 90 19.2 80 19.2 80 19.1 21.2 22.6 60 60 June18 Dec18 Mar19 FY17 FY18 9M19 WM depo
Slide 11: WM: strong NNM, TFAs up 7% since June18
WM: strong NNM (€5bn in 9M), TFAs up 7% since June18 9M results as at March 2019 Section 1 Group TFAs trend (€bn) +7% YoY 63.9 5.1 68.0 4.7 59.9 (1.0) (0.7) Affluent +2.2 Affluent +2.3 39.1 30.0 PB/AM +2.5 37.3 PB/AM +2.8 12.1 6.7 Deposits +1.4 7.6 Deposits +3.4 AUM/AUA +3.3 AUM/AUA +1.6 19.0 AUC +0
Slide 12: €5.1bn NNM in 9M despite adverse markets
€5.1bn NNM in 9M despite adverse markets in first half 9M results as at March 2019 Section 1 Group TFAs NNM by customer segment (€bn) Group TFAs NNM by product (€bn) 4.7 5.1 5.1 4.7 1.4 2.3 3.4 2.2 1.9 1.9 1.5 1.7 1.5 1.7 3.3 0.6 0.4 2.5 0.4 2.8 1.4 1.3 1.6 1.6 1.3 1.2 1.1 0.1 0.3 0.4 12M 3M 3M 3M 9
Slide 13: Fees resilient, wealth management and CIB Advisory up
Fees resilient, wealth management and CIB Advisory up 9M results as at March 2019 Section 1 Group fees by division (9M, €m) CIB fees by product (€m) 155 158 149 191 Lending +1% YoY 175 38 34 37 Specialty fin 39 457 462 1Q19 2Q19 3Q19 77 35 Capmkt² -€14m CIB 67 175 40 Advisory 191 +€3m Consumer 9M18
Slide 14: Asset quality and coverage ratios improved further
Asset quality and coverage ratios improved further… NPLs down as stock and as % of loans (4.2% gross and 1.8% net) NPLs (€m) Bad loans (€m) Coverage As % of loans (“deteriorate”) (“sofferenze”) 73% 78% -8% -20% 2.2% Mediobanca 865 1.8% 792 144 56% 58% Group 115 0.4% 0.3% Mar18 Mar19 Mar18 Mar19 Mar1
Slide 15: Keeping CoR at lowest-ever level
…keeping CoR at lowest-ever level (48bps in last Q) 9M results as at March 2019 Section 1 Cost of risk by division (bps) NPLs (“deteriorate”, €m) and coverage (%) 183 56% 57% 58% 60% 180 188 1,000 55% 50% 800 45% 600 865 826 792 40% 51 35% 400 30% Mar18 Dec18 Mar19 48 48 Net NPLs NPLs coverage -20 P
Slide 16: Solid capital generation/optimization
Solid capital generation/optimization 9M results as at March 2019 Section 1 CET1¹ up to 14.3% RWA optimization ongoing in FY19 AIRB AIRB 2Q19 3Q19 corporate mortgages 14.3% 14.2% 60.0 77% 75% 90% 58.0 66% 80% 56.0 59% 70% 54.0 60% +70bps -40bps +40bps -60bps 52.0 50% 50.0 EU avg. 32% 40% 48.0 53.9 5
Slide 17: MREL needs already fully addressed: sizeable surplus
MREL needs already fully addressed: sizeable surplus 9M results as at March 2019 Section 1 MB MREL eligible liabilities vs requirement (%RWA) MREL requirements on RWAs: MB vs European banks1 40.3% RWA (€19bn) Deposits³: 2.8% Surplus 29.3% Senior bonds: 18.4% 28.0% 28.0% 29.0% Avg. 26.1% 25.9% 26.0%2
Slide 18: Agenda
Agenda Section 1. Group results as at March 2019 Section 2. Messier Maris & Associés Section 3. Closing remarks Annexes 1. Quarterly segmental reporting tables 2. Glossary
Slide 19: MB enhancing IB footprint in France
MB enhancing IB footprint in France as a third pivotal market beyond Italy and Iberia Messier Maris & Associés Section 2 Mediobanca reinforces its footprint in France which is considered a core market for its CIB division benefiting from increased scale, product reach and distribution access … … in
Slide 20: Overview of Messier Maris & Associés
Overview of Messier Maris & Associés Messier Maris & Associés Section 2 Company overview Established in 2010 by Jean-Marie Messier and Erik Maris, Messier Maris & Associés is one of the top three French Corporate Finance franchises with a very large, international and recurrent customer base. The sc
Slide 21: CF firepower doubled with EPS accretive deal
CF firepower doubled with EPS accretive deal to foster MB accretive value cycle Messier Maris & Associés Section 2 Another disciplined investment, with limited K absorption, representing a significant potential growth opportunity for the Group Impact on MB Group: Group fees and CIB revenues Stronger
Slide 22: Agenda
Agenda Section 1. Group results as at March 2019 Section 2. Divisional results Section 3. Closing remarks Annexes 1. Quarterly segmental reporting tables 2. Glossary
Slide 23: Growth path continues: closing remarks
Growth path continues Closing remarks Section 3 Solid growth achieved in revenues (up 5%), GOP (up 7%) and capital (up 40bps) due also to good business diversification. NII generation driven by Consumer Banking Fees from Wealth Management offset soft quarterly CIB capital markets activity. Partnersh
Slide 24: Divisional results
Divisional results Annex 1 24
Slide 25: Mediobanca Group P&L
Mediobanca Group P&L 9M results as at March 2019 Annex 1 9m 9m D €m 3Q19 2Q19 1Q19 4Q18 3Q18 Mar19 Mar18 YoY1 Total income 1,884 1,800 5% 607 639 638 619 630 Net interest income 1,047 1,014 3% 346 357 344 345 342 Fee income 462 457 1% 149 158 155 166 165 Net treasury income 151 124 21% 53 57 41 33 3
Slide 26: Mediobanca Group A&L
Mediobanca Group A&L 9M results as at March 2019 Annex 1 D D €bn Mar19 Dec18 June18 Mar18 QoQ1 YoY1 Funding 52.0 50.8 48.9 48.3 +2% +8% Bonds 19.2 19.2 19.2 19.7 - -3% Direct deposits (retail&PB) 22.6 21.2 19.1 18.1 +6% +25% ECB 4.3 4.3 4.3 4.3 - - Others 5.9 6.0 6.3 6.2 -2% -5% Loans to customers 4
Slide 27: Wealth Management results
Wealth Management results 9M results as at March 2019 Annex 1 9m 9m D €m 3Q19 2Q19 1Q19 4Q18 3Q18 Mar19 Mar18 YoY1 Total income 410 384 +7% 137 137 136 142 129 Net interest income 194 190 +2% 66 64 64 66 63 Fee income 210 185 +13% 69 71 70 73 64 Net treasury income 5 9 -42% 2 2 2 3 2 Total costs (32
Slide 28: Affluent & Premiere: CheBanca! results
Affluent & Premiere: CheBanca! results 9M results as at March 2019 Annex 1 9m 9m D €m 3Q19 2Q19 1Q19 4Q18 3Q18 Mar19 Mar18 YoY1 Total income 220 216 +2% 74 74 72 76 73 Net interest income 157 159 -1% 53 52 53 53 52 Fee income 62 57 +9% 21 22 19 23 20 Total costs (175) (174) +1% (59) (57) (58) (62) (
Slide 29: Private Banking results
Private Banking results 9M results as at March 2019 Annex 1 9m 9m D €m 3Q19 2Q19 1Q19 4Q18 3Q18 Mar19 Mar18 YoY1 Total income 189 168 +12% 63 63 64 65 56 Net interest income 37 31 +19% 13 12 12 12 11 Fee income 148 129 +15% 49 49 50 51 44 Net treasury income 5 9 -45% 1 2 2 3 2 Total costs (148) (132
Slide 30: Consumer Banking results
Consumer Banking results 9M results as at March 2019 Annex 1 9m 9m D €m 3Q19 2Q19 1Q19 4Q18 3Q18 Mar19 Mar18 YoY1 Total income 770 744 +4% 257 256 257 252 251 Net interest income 675 651 +4% 224 227 223 218 218 Fee income 95 93 +2% 32 29 34 34 32 Total costs (216) (209) +3% (75) (74) (68) (75) (72)
Slide 31: CIB results
CIB results 9M results as at March 2019 Annex 1 9m 9m D €m 3Q19 2Q19 1Q19 4Q18 3Q18 Mar19 Mar18 YoY1 Total income 478 481 -1% 145 174 159 150 164 Net interest income 205 200 +2% 66 70 69 66 64 Fee income 175 191 -9% 52 66 57 63 75 Net treasury income 98 90 +9% 27 38 34 20 26 Total costs (198) (186)
Slide 32: WB results
WB results 9M results as at March 2019 Annex 1 9m 9m D €m 3Q19 2Q19 1Q19 4Q18 3Q18 Mar19 Mar18 YoY1 Total income 376 397 -5% 111 138 127 119 136 Net interest income 142 152 -6% 44 50 48 47 46 Fee income 136 155 -12% 41 50 45 53 65 Net treasury income 98 91 +9% 26 38 34 20 26 Total costs (162) (155)
Slide 33: Specialty Finance results
Specialty Finance results 9M results as at March 2019 Annex 1 9m 9m D €m 3Q19 2Q19 1Q19 4Q18 3Q18 Mar19 Mar18 YoY1 Total income 102 84 +21% 34 36 32 30 28 Net interest income 63 48 +30% 22 20 20 20 18 Fee income and other income 39 37 +7% 12 16 12 11 10 Total costs -36 (31) +15% (13) (12) (11) (12)
Slide 34: Principal Investing results
Principal Investing results 9M results as at March 2019 Annex 1 9m 9m D €m 3Q19 2Q19 1Q19 4Q18 3Q18 Mar19 Mar18 YoY1 Total income 231 217 +7% 60 72 99 78 93 Gains from disposals (7) 94 n.m. 4 (15) 4 2 0 Impairments 0 (1) n.m. 0 0 0 (1) -0 Net result 219 295 -26% 60 60 99 79 90 Book value (€bn) 3.7 3
Slide 35: Holding function results
Holding function results 9M results as at March 2019 Annex 1 9m 9m D €m 3Q19 2Q19 1Q19 4Q18 3Q18 Mar19 Mar18 YoY1 Total income 7 (12) n.m. 13 1 (7) 3 (1) Net interest income (37) (31) n.m. (13) (8) (15) (7) (6) Net treasury income 35 8 n.m. 23 8 4 6 3 Fee income 8 11 -29% 4 1 4 4 3 Total costs (127)
Slide 36: Glossary
GLOSSARY Annex 2 36 MEDIOBANCA
Slide 37: 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 SF Specialty finance FAs Financial Advisors CB Consumer banking FVOCI Fair Value to Other Comprehensive Income WM Wealth m
Slide 38: Disclaimer & Declaration of head of financial reporting
Disclaimer & Declaration of head of financial reporting As from this nine months results, the Mediobanca Group is adopting IFRS 9 to represent its financial instruments. The transition to the new standard has resulted in an approx. €81m reduction in net equity, chiefly due to the introduction of the
Slide 39: Investor contacts
Investor contacts 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 Email: investor.relations@mediobanca.com http://www.mediobanca.com 39