Banca Sistema S.p.A. · MIL:BST
Banca Sistema — FY2021 Earnings Presentation
18 slides from Banca Sistema's earnings presentation, Feb 10, 2022
Slide 1: FY 2021 Results
FY 2021 RESULTS 10 February 2022
Slide 2: FY 2021 Results at a Glance
FY 2021 Results at a Glance Factoring Turnover +16% y/y equal to €3,611m; +8% q/q factoring Outstanding Commercial CQ outstanding at €932m, stable y/y (+4.6% excluding the sales of assets); slightly lower q/q performance Pawn loans outstanding reached €90m, +16% y/y and up q/q SMEs State gua
Slide 3: Factoring commercial performance
Factoring commercial performance Factoring outstanding Outstanding breakdown (31.12.2021) €m +8% By Type of Product By Obligor y/y PA accounts for 72% 1,850 Tax receivables Recourse State Central 14% 26% 1,717 1,707 Local Administration [-20% y/y] [+36% y/y] Entities 20% 29% Local Healthcare Organiz
Slide 4: CQ and Pawn loans commercial performance
CQ and Pawn loans commercial performance CQ loans outstanding Pawn Loans outstanding €m €m +16% y/y 90 934 955 932 Private Pensioners 87 18% 46% 78 PA employees 36% 31.12.2020 30.09.2021 31.12.2021 31.12.2020 30.09.2021 31.12.2021 • €299m turnover in 2021 (€308m in 2020) • ~55k contracts • 29% direc
Slide 5: FY 2021 – Balance Sheet
Figures in millions of Euro 31.12.2020 30.09.2021 31.12.2021 Change in % 31.12.2021 vs FY 2021 – Balance Sheet 31.12.2020 Govies’ portfolio (€630m) almost stable q/q but bown y/y, ASSETS with an average duration of 31.3 months, it includes €446m Ca s h a nd ca s h equiva lents 69 65 176 nm ‘Held t
Slide 6: Well diversified Interest income
FY 2021 Interest Income stable y/y, with a higher contribution from Pawn loans and SMEs State guaranteed loans contribution Well diversified Interest income (+€3.5m y/y) 98.1 98.2 Factoring represents 61% of Total Interest 8.0 10.5 Income (66% in 2020) 3.1 6.0 22.4 21.4 Factoring Lower overall co
Slide 7: Total Income up y/y
Total Income up y/y Total Income €m 102.1 108.0 +6% FY 2021 Total Income up +6% y/y, thanks to the increase 10.3 y/y of Net Interest Income, driven by Interest Expenses 9.9 15.7 -30% y/y. Total Cost of funding, equal to 0.4% (0.6% in 17.4 2020), is lower in both component Retail and Wholesale. Net
Slide 8: Cost base consolidating
Cost base consolidating Total Operating Costs Personnel Expenses Administrative Expenses, Net €m +14% FTEs (#) 269 278 Provisions for risk, Other and y/y 62.9 D&A 55.3 10.7 8.2 33.9 29.0 29.7 25.5 4.8 5.9 4.4 3.7 52.2 47.1 21.8 23.1 25.3 29.1 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 Operating
Slide 9: Lower funding cost y/y
Lower funding cost y/y Total Funding breakdown • Cost of funding lower y/y 68% 68% 0.6% 64% 0.5% 0.4% 0.4% 59% • Retail Funding up q/q and y/y, due to the increase of Corporate current accounts and term deposits, with a lower cost 24% 21% 18% 17% 7% 7% 6% 8% 6% • Wholesale component slight 5% 4% 7%
Slide 10: Asset Quality driven by factoring business
Asset Quality driven by factoring business Gross Non Performing Exposures Net Non Performing Exposures €m 315.1 294.5 PA exposure 255.6 deriving from 251.2 ordinary 237.2 business 205.1 52.4 169.1 168.3 27.1 121.5 121.8 Past-dues 148.4 37.4 128.1 26.0 34.3 Unlikely to Pay 23.9 108.6 Bad loans 91.5 1
Slide 11: Regulatory Capital well above minimum requirements
Regulatory Capital well above minimum requirements CET1 and Total Capital(1) RWA breakdown €m €m 15.5% 14.6% 2020 SREP 1,517.6 requirements: 1,427.3 CET1 ratio 7.75% 12.2% 219.8 11.6% 221.7 TCR 11.90% 174.1 176.1 1,334.2 1,250.5 CET1 Credit Risk TC Ratio Total Capital Operational Risk CET1 Ratio & M
Slide 12: Annexes
Annexes BANCA 12 SISTEMA
Slide 13: Factoring Turnover
Factoring Turnover Factoring Turnover €m +16% 3,611 3,055 3,101 -11% y/y ex. Tax Receivables Turnover generated by agreements with Italian Retail banks: 21% in FY 2021 FY 2019 FY 2020 FY 2021 FY 2021 Factoring Turnover breakdown By Type By Year of Customer’s Acquisition Customer Concentration Spain
Slide 14: Late Payment Interest
Late Payment Interest Due LPI Stock – Assets in legal action Total collected cashed-in LPI €m €m €1.4m 60 65 70 Sold LPI 57 6.0 €0.7m 5.9 5.6 Sold LPI €51.5m accrual 3.2 101 101 recognised in P&L 2.5 98 99 31.12.2020 30.06.2021 30.09.2021 31.12.2021 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 LPI – non relevant f
Slide 15: FY 2021 – Income Statement
FY 2021 – Income Statement Figures in millions of Euro FY 21 vs FY 20 FY 2020 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2021 1Q 2021 2Q 2021 3Q 2021 4Q 2021 change in % Interest income 98.1 22.4 23.5 25.7 26.5 98.2 24.2 23.5 22.1 28.4 nm Interest expenses (23.2) (6.3) (6.0) (6.1) (4.8) (16.2) (4.8) (4.4) (
Slide 16: Asset Quality
Asset Quality Gross Bad loans 6.9% 0.2% 6.9% 0.2% Conservatorships (factoring) Loans granted 16.5% Factoring before 2020 16.5% SME State Guarantee Loans 76.4% 76.4% Other 30.09.2021 31.12.2021 Gross Unlikely to Pay 6.7% 6.7% 93.3% 93.3% 30.09.2021 31.12.2021 16
Slide 17: 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
Slide 18: Carlo Di Pierro, Head of Investor Relations
Carlo Di Pierro Head of Investor Relations carlo.dipierro@bancasistema.it +39 02 80280358 +39 3355288794 18