Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca — 9M FY2018 Earnings Presentation
50 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, May 11, 2018
Slide 1: Mediobanca 9M results as at 31 March 2018
Mediobanca 9M results as at 31 March 2018 Milan, 11 May 2018
Slide 2: Agenda
Agenda 1. Group results 2. Divisional results 3. Closing remarks Annexes 1. Quarterly segmental reporting tables 2. Glossary
Slide 3: Healthy growth and sustainability: the heart of MB's business model
Healthy growth and sustainability: the heart of MB’s business model Once again best-ever results by revenues, GOP and net profit Revenues up 9% to €1.8bn, diversified by income sources, fuelled by organic growth and M&A CoR stably at low level (59bps), asset quality confirmed excellent (Texas ratio
Slide 4: Last 3M: Strong acceleration in WM development
Last 3M Strong acceleration in WM development Sound industrial performance Strong acceleration in WM development €1.5bn NNM in the quarter, 50%:50% by affluent:private segment AUM/AUA up by €4.7bn to €36.5bn, now 58% of total TFA, driven by organic growth and M&A (RAM) Affluent: organic growth resum
Slide 5: Franchise development delivering best NII and Fees
Franchise development delivering best NII and Fees 9M results as at March 2018 - Group results Section 1 Group revenues (€m, 9M) Fees by quarter (€m, 3M) 165 152 131 CAGR +9% 113 +9% 1,800 1,657 1,519 205 194 124 180 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17* 4Q17 1Q18 2Q18 3Q18 105 97 457 +14% 402 NII by
Slide 6: Fees scaling up in size and sustainability driven by WM & CIB
Fees scaling up in size and sustainability driven by WM & CIB Group Fees by business1 (9M, €m) CIB fees by quarter (€m, 3m) March 16 March 17 March 18 64 75 +14% 62 57 +19% 41% 45% 50% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17* 4Q17 1Q18 2Q18 3Q18 €336m €402m €457m 20% 23% 26% 24% 32% 39% WM fees by quarte
Slide 7: NII continuing its 5Y growth driven by Consumer and ALM optimization
NII continuing its 5Y growth driven by Consumer and ALM optimization Group NII by business1 (9M, €m) Group NII 9M change (€m, % YoY) Treasury trend (€bn) Group +59 +6% 259% LCR 163% Consumer +37 +6% CIB 17.0 19% (3,0) WM +11 +6% (0,8) 0.6 13.8 €1.014m Consumer 63% CIB -22 -10% WM 18% Loss HF +35 hal
Slide 8: Asset quality: when no news is good news
asset quality : when no news is good news … 9M results as at March 2018 - Group results Section 1 Cost of risk by division (bps) NPLs (“deteriorate”, €m) and coverage (%) 201 55% 55% 56% 55% 1,000 50% 196 800 45% Net NPLs 941 892 865 40% 600 NPLs coverage 35% 400 30% 59 June17 Dec17 Mar18 60 (23) Ba
Slide 9: … at all divisional levels
… at all divisional levels 9M results as at March 2018 - Group results Section 1 NPLs Bad loans Coverage As % of loans (“deteriorate”) (“sofferenze”) 71% 73% -6% 2.5% 2.2% Mediobanca 921 865 56% 56% Group 162 -11% 144 0.4% 0.4% Mar17 Mar18 Mar17 Mar18 Mar17 Mar18 Mar17 Mar18 57% 61% Wealth 2.0% 1.7%
Slide 10: GOP up 19% to over €0.8bn
GOP UP 19% to over €0.8bn 9M results as at March 2018 - Group results Section 1 MB Group GOP by division (9M, €m) +19%, +17% adj¹ 31 20 63 - 15 (2) 813 686 +29% +20% n.m. +10% +14% adj.1 GOP Wealth Consumer Corporate & Holding Principal GOP 9M - Mar17 Management Banking Investment Banking Functions
Slide 11: CET1 ratio at 14%, strong capital generation
CET1 ratio at 14%, strong capital generation 9M results as at March 2018 - Group results Section 1 RWA trend (€bn) CET1 trend (bps) -10% +100bps 52.1 13.9% +140bps 0.5 (0.2) 47.3 +25bps 12.9% (5.1) -15bps -10bps -30bps Dec17 Business PI CIB AIRB Mar18 Dec17 Retained Business PI RAM CIB AIRB Mar18 gr
Slide 12: Agenda
Agenda 1. Group results 2. Divisional results 2A. Wealth Management 2B. Consumer Banking 2C. Corporate & Investment Banking 2D. Principal Investing 2E. Holding Functions 3. Closing remarks
Slide 13: 9M18 results at a glance
9M18 results at a glance 9M results as at March 18 - Divisional results Section 2 Revenues GOP Net profit ROAC +9% +19% +11% ROTE 11% 10% Mediobanca 10% 1,800 813 682 9% Group 1,657 686 614 ROTE adj. Mar17 Mar18 Mar17 Mar18 Mar17 Mar18 Mar17 Mar18 +16% +46% 12% +29% Wealth 10% 384 Management 332 51
Slide 14: Wealth Management
Wealth Management Wealth Management (WM) Affluent & Premier CheBanca! Private & HNWI MB Private Banking CMB, Spafid Mediobanca AM MB SGR, CMG Cairn, RAM 14
Slide 15: WM – healthy Growth and Sustainability
WM – healthy Growth and Sustainability 9M results as at March 18 - Divisional results Section 2 Strengths & Achievements Targets & Opportunities LEVERAGE GROWTH MULTICHANNEL DISTRIBUTION PROPRIETARY & INDIRECT Strong acceleration Affluent: enhance distribution, in fostering distribution especially i
Slide 16: WM: growth in all business metrics
WM: growth in all business metrics 9M results as at March 18 - Divisional results Section 2 WM Division = Affluent&Premier + Private&HNWI&AM No. clients 795 815 800 (‘000) 780 15 15 June17 Mar18 June17 Mar18 June17 Mar18 62.9 59.9 39.4 41.7 8.3 20.4 21,2 TFA (€bn) 12.1 18.1 8.3 17.8 12.1 4.8 (AUM, A
Slide 17: Effective Multichannel Distribution… WM 800K customers
Effective Multichannel Distribution… PROPRIETARY INDIRECT CHANNELS CHANNELS Digital platform 203 Financial Advisors Robot advisory 35 FA shops 520 Wealth advisors Mortgages 397 Affluent Third parties 123 Private Banking distribution network WM Institutional sale forces 800K customers Partnerships fo
Slide 18: …fostering Net New Money. In last 9M > €3bn
…fostering Net New Money. In last 9M > €3bn 9M results as at March 18 - Divisional results Section 2 Group Net New Money trend (€bn, TFAs) Number of FAs at CheBanca! +46 +45 3.2 +47 0.8 203 157 112 65 1.5 June17 Sep17 Dec17 Mar18 1.4 0.3 0.7 2.4 Number of bankers at MBPB and CMB 0.3 1.1 130 +6 123 0
Slide 19: AUM/AUA up 20% to >€36bn
AUM/AUA up 20% to >€36bn 9M results as at March 18 - Divisional results Section 2 Group AUM/AUA trend (€bn) 41% 50% Organic growth: 58% €2.3bn in 9M (+8%) 36.5 0.7 4.2 30.0 0.9 0.7 ~13 22.9 28.6 17.4 13.5 7.1 7.9 3.9 June16 Barclays, June17 CheBanca! MBPB/CMB Cairn RAM Mar18 Esperia acquisition¹ acq
Slide 20: Revenues scaling up with sustainable mix
Revenues scaling up with sustainable mix 9M results as at March 18 - Divisional results Section 2 WM revenues by customer segment (9M, €m) WM revenues by source (9M, €m) 384 384 332 +16% +34% 332 247 185 ~50% 168 ~45% 144 247 131 97 103 201 216 ~55% 178 190 ~50% 140 144 Mar16 Mar17 Mar18 Mar16 Mar17
Slide 21: Consumer Banking
Consumer Banking Consumer Banking (CB) Consumer Banking Compass 21
Slide 22: Consumer Banking – Continue growth by fine-tuning key success factors
Consumer Banking – Continue growth by fine-tuning key success factors 9M results as at March 18 - Divisional results Section 2 Strengths & Achievements Targets & Opportunities LEADING POSITIONING SELECTIVE M&A Top 3 in Italy, 12.4% market share leveraging best in class pricing/risk assessment capabi
Slide 23: New loans 7% up, increasing role of direct distribution
New loans 7% up, increasing role of direct distribution 9M results as at March 18 - Divisional results Section 2 Compass new business by product (€bn) Personal loans new business by channel (€m) Compass branches Banks +7% 5.2 +7% 4.8 4.5 0.8 0.8 1.2 >1.3 1.1 1.0 1.0 1.0 0.8 2.7 9M16 9M17 9M18 9M16 9
Slide 24: ROAC to 30%
ROAC to 30% 9M results as at March 18 - Divisional results Section 2 Loan book growing steadily, now above €12bn 9M revenues up to €744m (up 4% YoY), quarterly revenues keep growing (mid/single digit YoY) €bn €m 16.0 +4% 9m: 744m 14.0 +12% +7% 12.3 9m: 715m +6% 11.5 9m: 638m 12.0 10.8 10.0 +0.7bn +0
Slide 25: Corporate & Investment Banking
Corporate & Investment Corporate & Banking (CIB) Investment Banking Corporate & Investment Banking Specialty Finance 25
Slide 26: CIB – Improved revenue diversification, capital lighter
CIB – Improved revenue diversification, capital lighter 9M results as at March 18 - Divisional results Section 2 Strengths & Achievements Targets & Opportunities LEADING POSITION SOLID PIPELINE in Italy & Southern Europe both on domestic and In M&A, ECM, DCM, brokerage cross-border deals in many sec
Slide 27: Resilient revenues due to diversification
Resilient revenues due to diversification 9M results as at March 18 - Divisional results Section 2 CIB revenues YoY trend (€m, 9M) March 17 March 18 Lending Advisory Lending Advisory 40% 7% 36% 8% ~50% Financing €507m ~40% IB (M&A+Capmkt) €481m ~10% Trading Capmkt Specialty Capmkt 30% Finance 31% Sp
Slide 28: KEY transactions in CIB
KEY transactions in CIB 9M results as at March 18 - Divisional results Section 2 Main ECM transactions Main M&A transactions April 2018 March 2018 February 2018 February 2018 April 2018 April 2018 Announced – April 2018 March 2018 Chile € 3.6bn Generación €1.5bn reached an agreement with Latin Ameri
Slide 29: Principal Investing
Principal Investing (PI) Principal Investing Principal Investing Ass. Generali AFS stake ptf 29
Slide 30: PI – NAV up 4% YoY, disposal ongoing
PI – NAV up 4% YoY, disposal ongoing 9M results as at March 18 - Divisional results Section 2 Strengths & Achievements Portfolio breakdown Book AFS % OPTION VALUE €m value reserve Redeploying capital Profitable Ass.Generali 13.0% 3.259 n.m.¹ with keen value management segment Ist. Europeo di Oncolog
Slide 31: Holding Functions
Holding Functions Holding Functions Group ALM & Treasury Leasing 31
Slide 32: HF – Loss reduced
HF – Loss reduced 9M results as at March 18 - Divisional results Section 2 Strengths & Achievements ALM EFFICIENCY HOLDING FUNCTIONS A&L optimization/diversification Liquidity management CoF reduction Support Treasury Central COST MANAGEMENT divisional growth & Banking book functions Strict cost con
Slide 33: Loss reduced, NII recovering
Loss reduced, NII recovering 9M results as at March 18 - Divisional results Section 2 LCR optimization… … and gradual average cost of funding reduction... 372% Bps vs EUR3M 155 155 145 259% 245% 256% 105 100 190% 90 163% 85 80 60 Dec16 Mar17 June17 Sept17 Dec17 Mar18 FY16 FY17 9M18 LCR ratio MB bond
Slide 34: Agenda
Agenda 1. Group results 2. Divisional results 3. Closing remarks Annexes 1. Quarterly segmental reporting tables 2. Glossary
Slide 35: Closing remarks
Closing remarks 9M results as at March 18 – Closing remarks Section 3 MEDIOBANCA HEALTHY GROWTH AND SUSTAINABILITY THE PILLARS OF MB’s BUSINESS MODEL 9M results as at March18: once again best-ever 9M results by: Revenues up 9% (to €1.8bn) fed by fee growth (up 14% YoY) especially deriving from WM (u
Slide 36: Mediobanca 9M results as at March 2018
Mediobanca 9M results as at 31 March 2018 Milan, 11 May 2018
Slide 37: Mediobanca Group P&L
Mediobanca Group P&L 9M results as at March 2018 Annex 1 9m 9m D 3Q18 2Q18 1Q18 4Q17 3Q17 €m Mar18 Mar17 YoY1 March18 Dec17 Sept17 June17 March17 Total income 1,800 1,657 9% 630 572 598 539 584 Net interest income 1,014 955 6% 342 340 332 333 320 Fee income 457 402 14% 165 153 138 121 165 Net treasu
Slide 38: Mediobanca Group A&L
Mediobanca Group A&L 9M results as at March 2018 Annex 1 D D €bn Mar18 Dec17 June17 Mar17 QoQ1 YoY1 Funding 48.3 47.4 49.1 49.2 +2% -2% Bonds 19.7 18.8 19.3 19.6 +5% - Direct deposits (retail&PB) 18.1 18.2 17.8 17.3 - +5% ECB 4.3 4.3 5.9 6.0 - -28% Others 6.2 6.1 6.1 6.3 +2% -1% Loans to customers 4
Slide 39: Wealth Management results
Wealth Management results 9M results as at March 2018 Annex 1 9m 9m D 3Q18 2Q18 1Q18 4Q17 3Q17 €m Mar18 Mar17 YoY1 March18 Dec17 Sept17 June17 March17 Total income 384 332 +16% 129 133 122 128 117 Net interest income 190 178 +6% 63 63 64 66 61 Fee income 185 144 +29% 64 66 56 60 53 Net treasury inco
Slide 40: CheBanca! Results (Affluent & Premier)
CheBanca! Results (Affluent & Premier) 9M results as at March 2018 Annex 1 9m 9m D 3Q18 2Q18 1Q18 4Q17 3Q17 €m Mar18 Mar17 YoY1 March18 Dec17 Sept17 June17 March17 Total income 216 201 +7% 73 74 70 73 70 Net interest income 159 151 +5% 52 53 54 55 51 Fee income 57 50 +13% 20 21 16 19 19 Total costs
Slide 41: Private Banking results
Private Banking results 9M results as at March 2018 Annex 1 9m 9m D 3Q18 2Q18 1Q18 4Q17 3Q17 €m Mar18 Mar17 YoY1 March18 Dec17 Sept17 June17 March17 Total income 168 130 +29% 56 59 53 55 48 Net interest income 31 28 +12% 11 10 10 11 10 Fee income 129 93 +38% 44 45 40 41 35 Net treasury income 9 9 -7
Slide 42: Consumer banking: Compass results
Consumer banking: Compass results 9M results as at March 2018 Annex 1 9m 9m D 3Q18 2Q18 1Q18 4Q17 3Q17 €m Mar18 Mar17 YoY1 March18 Dec17 Sept17 June17 March17 Total income 744 715 +4% 251 247 246 222 239 Net interest income 651 613 +6% 218 218 214 205 205 Fee income 93 101 -8% 32 29 32 17 34 Total c
Slide 43: CIB results
CIB results 9M results as at March 2018 Annex 1 9m 9m D 3Q18 2Q18 1Q18 4Q17 3Q17 €m Mar18 Mar17 YoY1 March18 Dec17 Sept17 June17 March17 Total income 481 507 -5% 164 164 153 129 193 Net interest income 200 222 -10% 64 67 69 70 69 Fee income 191 199 -4% 75 63 53 51 92 Net treasury income 90 86 +5% 26
Slide 44: WB results
WB results 9M results as at March 2018 Annex 1 9m 9m D 3Q18 2Q18 1Q18 4Q17 3Q17 €m Mar18 Mar17 YoY1 March18 Dec17 Sept17 June17 March17 Total income 397 443 -10% 136 133 127 107 170 Net interest income 152 189 -20% 46 52 54 59 57 Fee income 155 167 -8% 65 48 42 40 81 Net treasury income 91 86 +5% 26
Slide 45: Specialty finance results
Specialty finance results 9M results as at March 2018 Annex 1 9m 9m D 3Q18 2Q18 1Q18 4Q17 3Q17 €m Mar18 Mar17 YoY1 March18 Dec17 Sept17 June17 March17 Total income 84 65 +31% 28 31 26 22 23 Net interest income 48 33 +45% 18 15 15 11 12 Fee income and other income 37 32 +16% 10 15 11 11 11 Total cost
Slide 46: Principal Investing results
Principal Investing results 9M results as at March 2018 Annex 1 9m 9m D 3Q18 2Q18 1Q18 4Q17 3Q17 €m Mar18 Mar17 YoY1 March18 Dec17 Sept17 June17 March17 Total income 217 196 +10% 93 33 91 77 58 Gains from disposals 94 139 -32% 0 5 89 23 20 Impairments (1) (1) -11% 0 0 0 0 0 Net result 295 320 -8% 90
Slide 47: Holding Functions results
Holding Functions results 9M results as at March 2018 Annex 1 9m 9m D 3Q18 2Q18 1Q18 4Q17 3Q17 €m Mar18 Mar17 YoY1 March18 Dec17 Sept17 June17 March17 Total income (12) (46) -75% (1) (3) (8) (10) (8) Net interest income (31) (65) -53% (6) (9) (16) (11) (18) Net treasury income 8 6 +21% 3 3 2 (3) 7 F
Slide 48: Glossary
GLOSSARY MEDIOBANCA BUSINESS SEGMENT PROFIT & LOSS (P&L) and BALANCE SHEET CIB Corporate and investment banking GOP Gross operating profit WB Wholesale banking Leverage ratio CET1 / Total Assets (FINREP definition) SF Specialty finance Ls Loans CB Consumer banking LLPs Loan loss provisions WM Wealth
Slide 49: Disclaimer
Disclaimer This presentation contains certain forward-looking statements, estimates and targets with respect to the operating results, financial condition and business of the Mediobanca Banking Group. Such statements and information, although based upon Mediobanca’s best knowledge at present, are ce
Slide 50: 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 50