Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca — Q1 FY2022 Earnings Presentation
43 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, Oct 27, 2021
Slide 1: Mediobanca 1Q/3M Results as at 30 September 2021
MEDIOBANCA 1Q/3M RESULTS AS AT 30 SEPTEMBER 2021 Milan, 27 October 2021
Slide 2: Agenda
Agenda Section 1. Executive summary Section 2. 1Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 3: 1Q22: Record Quarter
1Q22: RECORD QUARTER SUPPORTED BY SUSTAINABLE GROWTH IN ALL BUSINESSES Executive summary Section 1 All business segment trends ahead of expectations, high recurring component WM: larger distribution scale and enhanced offering delivered strong growth in revenues and profit Private Investment Banking
Slide 4: 1Q/3M Results: Snapshot
1Q/3M RESULTS: SNAPSHOT Executive summary Section 1 Mediobanca Group – 1Q results as at September (€) Mediobanca Group – 1Q results as at September (€) Revenues Cost/income CoR Net profit Gross NPL/Ls ROTE adj CET1 ratio DPS €706m 43% 51 bps €262m 3.1% 11% 16.1% +6% QoQ -7pp QoQ -5bps QoQ +29% QoQ 7
Slide 5: Agenda
Agenda Section 1. Executive summary Section 2. 1Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 6: 1Q22 Results: Revenues up 13% to €706m, Net Profit up 31% to €262m
1Q22 RESULTS: REVENUES UP 13% TO €706m NET PROFIT UP 31% TO €262m, ROTE 11% Financial results Highlights 1Q22 4Q21 1Q21 D D Revenue-generating assets increased: €m Sept21 June21 Sept20 YoY1 QoQ1 TFAs up 17% YoY to €75bn due to organic growth (€9bn) in Total income 706 665 626 +13% +6% Premier and PB
Slide 7: Revenue Generation Capability Materially Increased
REVENUE GENERATION CAPABILITY MATERIALLY INCREASED IN LAST 12 REVENUES GENERATED BY WM&CIB HAVE RETURNED TO LEVELS SIGNIFICANTLY ABOVE PRE-COVID, CONSUMER B. CLOSING THE GAP 1Q - Group results Section 2 Revenues at highest-ever levels … … with WM definitively transitioned to new, larger scale… Group
Slide 8: Business Model Based on Value Added Product/Service Increasingly Effective
BUSINESS MODEL BASED ON VALUE ADDED PRODUCT/SERVICE INCREASINGLY EFFECTIVE 1Q - Group results Section 2 WM: strong NNM trend Consumer: new loans recovering in volume and mix (Premier & Private NNM €bn) +2x YoY +66% QoQ 3M Sept.20 3M Sept.21 52% 1.8 Pre-Covid 1.3 1.4 0.2 1.1 1.0 47% 0.9 €1.5bn 40% €1
Slide 9: NII Back to Growth (up 4% QoQ)
NII BACK TO GROWTH (UP 4% QoQ) 1Q - Group results Section 2 NII trend by division (€m) Quarterly NII trend (€m) flat +4% +2.2 +1.3 359 357 358 +3.8 344 +1.5 (2.0) 69 +8.12 72 77 70 68 68 69 68 69 74 72 72 358 344 +6% 235 226 223 216 214 226 4Q21 WM Consumer CIB ALM 1Q22 Pre-Covid 1Q21 2Q21 3Q21 4Q21
Slide 10: Record Fees for the First Time > €200m, Highly Diversified & Sustainable
RECORD FEES FOR THE FIRST TIME > €200M, HIGHLY DIVERSIFIED & SUSTAINABLE 1Q - Group results Section 2 Fee income trend by division (€m, 3M) CIB (€m, 3M) +7% +17% 88 84 77 85 10 12 69 16 12 12 Specialty fin 203 16 10 14 17 189 194 188 26 21 13 13 Lending 173 29 17 CapMkt¹ 41 35 39 85 27 25 Advisory 8
Slide 11: Further Improvement in Asset Quality: Moratoria Down to 1% of Loans
FURTHER IMPROVEMENT IN ASSET QUALITY: MORATORIA DOWN TO 1% OF LOANS 1Q - Group results Section 2 Moratoria: 80% expired; 99% of residual positions Outstanding moratoria reduced to 1% of Group loans classified in Stages 2-3, well covered Gross carrying amount (€bn, Sept21)¹ Moratoria as % of Group lo
Slide 12: Prudent Staging: NPLs Incidence Down and Coverage Ratios Up
PRUDENT STAGING: NPLs INCIDENCE DOWN AND COVERAGE RATIOS UP 1Q - Group results Section 2 Gross NPLs – Stage 31 Net NPLs – Stage 31 ➢ Stage 3 – Gross NPLs broadly stable QoQ at (Net exposure/Loans) 3.1% of gross loans (vs 4.2% in Sept20). Net 67.2% NPLs down in both absolute and relative 64.9% 8% 70.
Slide 13: Cost of Risk Reduced to 51bps
COST OF RISK REDUCED TO 51bps WITH NO OVERLAYS REVERSED AND RECORD COVERAGE RATIOS 1Q - Group results Section 2 CoR trend (bps) 361 248 223 197 185 196 174 183 160 141 Consumer B. 85 58 70 61 53 56 51 39 39 37 Group 13 6 12 WM 14 27 18 17 8 11 13 3 5 CIB (15) (38) (52) (54) 1Q20 2Q20 3Q20 4Q20 1Q21
Slide 14: Positive Asset Quality Trend in All Divisions
POSITIVE ASSET QUALITY TREND IN ALL DIVISIONS 1Q - Group results Section 2 Net NPLs (€m) of which bad loans (€m) NPL coverage NPLs as % of loans (“deteriorate”) (“sofferenze”) 4.2% 65% 67% 3.2% 3.1% -8% 57% Gross Mediobanca 877 -6% 1.9% 1.2% 1.1% Group 560 516 88 72 67 Net Sept20 June21 Sept21 Sept2
Slide 15: CET1 Phase-in @16.1% with Large Buffer over Requirements
CET1 PHASE-IN @16.1% WITH LARGE BUFFER OVER REQUIREMENTS 1Q - Group results Section 2 Phased-in CET1¹ ratio trend (10) Capital on agenda at AGM (28/10/21) +55 (10) (20) 16.2% 16.3% +5 (40) 16.1% Dividend payment: €0.66 DPS, with impact already embedded in CET1 Treasury shares cancellation: 22.6 mill
Slide 16: Mediobanca ESG: Significant Step Ahead
MEDIOBANCA ESG: SIGNIFICANT STEP AHEAD 1Q - Group results Section 2 MARKET - Mediobanca part of the MIB ESG index including the top 40 companies ranked according to ESG criteria in line with the UN Global Compact principles, and weighted on the basis of the free float market capitalization. RATING –
Slide 17: Agenda
Agenda Section 1. Executive summary Section 2. 1Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 18: WM: Business Set on Larger Scale
WM: BUSINESS SET ON LARGER SCALE 1Q - Divisional results Section 3 Financial results Highlights 1Q22 4Q21 1Q21 D D €m Sept21 June21 Sept20 YoY1 QoQ1 Ongoing delivery of BP19-23 strategy: Total income 172 163 146 +18% +5% Distribution enhancement: with 20 people added to the Net interest income 74 72
Slide 19: Balanced Organic and Non-Organic TFA Growth
BALANCED ORGANIC AND NON-ORGANIC TFA GROWTH BYBROOK CONSOLIDATION FROM 1 SEPTEMBER 1Q - Divisional results Section 3 Quarterly TFA trend (€bn) Long-term TFA trend (€bn) +17% YoY +5% QoQ CAGR +18% +1.7 +2.1 75.2 75 71.5 64.2 26.1 22 26 25.2 24.2 27 26 49.1 49 46.3 12 40.0 14 Sept20 June21 Organic Ext
Slide 20: Premier/Private: AUM and Fees Up
PREMIER/PRIVATE: AUM AND FEES UP 1Q - Divisional results Section 3 Revenues (3M,€m) NNM trend (3M,€bn) TFA stock trend (€bn) +15% +17% 95 1.2 +3% 94 83 32.5 33.4 0.9 28.7 3.4 3.5 Premier 35 0.8 0.9 34 0.8 2.9 27 +27% 12.2 12.8 10.0 56 60 61 15.7 16.9 17.2 1Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 Sept
Slide 21: Enhanced Distribution and Distinctive Offering
ENHANCED DISTRIBUTION AND DISTICTIVE OFFERING 1Q - Divisional results Section 3 Premier: ongoing recruitment… … with superior productivity RMs +77 +20 (AUM NNM per-capita, €m: NNM Jul21-Sept21/#FAs1) FAs 1 951 971 868 894 1 Peer avg. 0.55 1 1 422 465 476 414 1 0 0.83 0.63 0.54 0.50 0 0.32 0 454 472
Slide 22: Consumer Banking: On Track to Return to Pre-Covid Levels
CONSUMER BANKING: ON TRACK TO RETURN TO PRE-COVID LEVELS NEW LOANS RECOVERING IN VOLUMES AND MIX 1Q - Divisional results Section 3 Financial results Highlights 1Q22 4Q21 1Q21 D D Ongoing distribution enhancement: €m Sept21 June21 Sept20 YoY1 QoQ1 Total direct branches number 233, 179 of which propri
Slide 23: Digital: Where Customer Experience Meets Profitability
DIGITAL: WHERE CUSTOMER EXPERIENCE MEETS PROFITABILITY 1Q - Divisional results Section 3 In the post-pandemic environment a digital offering is a commodity but a smooth customer experience is a trademark that remains firmly branded in clients’ minds. Compass is focusing investments on: Compass app u
Slide 24: Asset Quality at Its Best-Ever Level
ASSET QUALITY AT ITS BEST-EVER LEVEL 1Q - Divisional results Section 3 Ongoing healthy trend in early risk indicators … … resulting in the lowest CoR level ever … Early deterioration index (3 months average) LLPs (€m) and cost of risk (bps) 361 380 150 330 248 223 280 185 196 183 197 174 160 230 100
Slide 25: CIB: Solid Quarter with Expected Positive Trend
CIB: SOLID QUARTER WITH EXPECTED POSITIVE TREND 1Q - Divisional results Section 3 Financial results Highlights 1Q22 4Q21 1Q21 D D Strong start to FY22 in CIB, with revenues staying high at €m €185m (up 15% QoQ and 1% YoY), despite lack of jumbo Sept21 June21 Sept20 YoY1 QoQ1 Total income 185 161 183
Slide 26: Leading Positioning Confirmed in M&A
LEADING POSITIONING CONFIRMED IN M&A… 1Q - Divisional results Section 3 M&A Italy 2021 – Ranking by Deal Value since January 20211 Selected M&A Large Corp Transactions 27.5 Pending Pending Pending Pending Pending 20.6 20.3 15.5 15.3 14.7 14.5 14.4 14.2 € 1.2bn $ 2.9bn Capitalization of 11.9 €9.3bn €
Slide 27: ...and in ECM and DCM
…AND IN ECM AND DCM 1Q - Divisional results Section 3 Mediobanca Capital Markets teams successfully completed several major ECM Italy 2021 (Bookrunner) since January 20211 transactions for both Italian and international clients, including in DCM, Popolare di Sondrio’s inaugural green Senior Preferre
Slide 28: Principal Investing: Positive Contribution
PRINCIPAL INVESTING: POSITIVE CONTRIBUTION 1Q - Divisional results Section 3 Financial results Highlights 1Q22 4Q21 1Q21 D D 1Q22 net profit at €97m, up 87% YoY on higher AG €m contribution, as 1Q21 results was affected by negative Sept21 June21 Sept20 YoY1 QoQ1 non-recurring items.2 Total income 98
Slide 29: Holding Functions – Improved Results
HOLDING FUNCTIONS – IMPROVED RESULTS 1Q - Divisional results Section 3 Financial results Highlights 1Q22 4Q21 1Q21 D D €m Sept21 June21 Sept20 YoY1 QoQ1 1Q22 loss €26m, 14% lower YoY, with GOP improving by 7% YoY, on higher contribution from Treasury and cost Total income (1) (6) (3) -56% -78% contr
Slide 30: Agenda
Agenda Section 1. Executive summary Section 2. 1Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 31: Closing Remarks
CLOSING REMARKS Closing remarks Section 4 1Q22: record quarter by revenues, fees and net profit… Revenues up 13% YOY to €706m, ow fees for the first time above €200m (+7% YoY) Net profit up 31% to €262m, ROTE at 11% …supported by sustainable growth in all businesses all of which have increased their
Slide 32: Mediobanca 1Q/3M Results as at September 2021
MEDIOBANCA 1Q/3M RESULTS AS AT 30 SEPTEMBER 2021 Milan, 27 October 2021
Slide 33: Agenda
Agenda Section 1. Executive summary Section 2. 1Q Group results Section 3. Divisional results Section 5. Closing remarks Annexes 1. Divisional results by quarter 2. Glossary
Slide 34: Mediobanca Group P&L
MEDIOBANCA GROUP P&L 3M results as at September 2021 Annex 1Q22 4Q21 3Q21 2Q21 1Q21 D D €m Sept21 June21 Mar21 Dec20 Sept20 QoQ1 YoY1 Total income 706 665 663 675 626 +6% +13% Net interest income 358 344 351 363 357 +4% +0% Fee income 203 173 188 194 189 +17% +7% Net treasury income 50 45 65 51 36 +
Slide 35: Mediobanca Group A&L
MEDIOBANCA GROUP A&L 3M results as at September 2021 Annex D D €bn Sept21 June21 Sept20 QoQ1 YoY1 Funding 57.8 56.2 56.7 +3% +2% Bonds 18.8 18.4 19.3 +2% -3% Direct deposits (retail&PB) 26.1 25.2 24.2 +4% +8% ECB 8.5 7.4 6.5 +14% +31% Others 4.4 5.1 6.7 -13% -34% Loans to customers 48.9 48.4 46.8 +1
Slide 36: Wealth Management Results
WEALTH MANAGEMENT RESULTS 3M results as at September 2021 Annex 1Q22 4Q21 3Q21 2Q21 1Q21 D D €m Sept21 June21 Mar21 Dec20 Sept20 QoQ1 YoY1 Total income 172 163 162 156 146 +5% +18% Net interest income 74 72 72 69 68 +2% +9% Fee income 96 89 87 85 76 +8% +27% Net treasury income 3 2 3 3 2 +17% +13% T
Slide 37: Consumer Banking Results
CONSUMER BANKING RESULTS 3M results as at September 2021 Annex 1Q22 4Q21 3Q21 2Q21 1Q21 D D €m Sept21 June21 Mar21 Dec20 Sept20 QoQ1 YoY1 Total income 257 238 249 256 260 +8% -1% Net interest income 226 214 216 223 226 +6% n.m. Fee income 31 24 33 33 34 +31% -9% Total costs (72) (84) (80) (78) (73)
Slide 38: Corporate & Investment Banking Results
CORPORATE & INVESTMENT BANKING RESULTS 3M results as at September 2021 Annex 1Q22 4Q21 3Q21 2Q21 1Q21 D D €m Sept21 June21 Mar21 Dec20 Sept20 QoQ1 YoY1 Total income 185 161 173 182 183 +15% +1% Net interest income 68 68 70 77 72 +0% -5% Fee income 85 69 77 84 88 +23% -4% Net treasury income 32 24 25
Slide 39: Principal Investing Results
PRINCIPAL INVESTING RESULTS 3M results as at September 2021 Annex 1Q22 4Q21 3Q21 2Q21 1Q21 D D €m Sept21 June21 Mar21 Dec20 Sept20 QoQ1 YoY1 Total income 98 111 61 78 46 -12% n.m. Impairments 3 15 18 6 13 Net profit 97 110 70 77 52 -12% 87% Book value (€bn) 4.5 4.4 4.6 4.4 4.2 +2% +9% Ass. Generali
Slide 40: Holding Functions Results
HOLDING FUNCTIONS RESULTS 3M results as at September 2021 Annex 1Q22 4Q21 3Q21 2Q21 1Q21 D D €m Sept21 June21 Mar21 Dec20 Sept20 QoQ1 YoY1 Total income (1) (6) 22 8 (3) -78% -56% Net interest income (14) (13) (12) (9) (13) +5% +4% Net treasury income 10 4 32 14 7 n.m. +41% Fee income 3 3 2 3 3 -26%
Slide 41: 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 42: 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 43: 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 Marcella Malpangotto Tel. no. (0039) 02-8829.428 Email: investor.relations@medio