Banca Sistema S.p.a. · MIL:BST
Banca Sistema — FY2016 Earnings Presentation
14 slides from Banca Sistema's earnings presentation, Feb 8, 2017
Slide 1: FY 2016 Results
FY 2016 RESULTS 8 February 2017
Slide 2: FY 2016 Results at a Glance
FY 2016 Results at a Glance Net Income +11% y/y reached at €26.4m excluding non recurring items €71m Net Interest income +22% y/y, including €11.3m accrued LPIs Total operating costs in line with expectations excluding the contribution to the P&L National Resolution Fund and Beta’s integration expen
Slide 3: Factoring Turnover/Outstanding
Factoring Turnover/Outstanding Factoring Turnover - €1,469m €m Excluding Beta Turnover +3% 1,453 Turnover generated by agreements +4% including 1,411 with Italian Retail banks: Beta 13.5% of FY 2016 1,174 • +15% y/y # customers • 90% Recurring Turnover FY 2014 FY 2015 FY 2016 FY 2015 Factoring Outst
Slide 4: CQS/CQP and SME loans represent today 26% of Total Loans
CQS/CQP and SME loans represent today 26% of Total Loans CQS/CQP Loans outstanding SME State Guaranteed Loans outstanding €m €m Purchases from >100% 266 83 5 originators 79 120 31.12.2015 31.12.2016 31.12.2015 31.12.2016 Outstanding breakdown by Type (31.12.2016) Outstanding breakdown by Geography (
Slide 5: FY 2016 – Income Statement
FY 2016 – Income Statement Figures in millions of euro Factoring contribution to NII 31.12.2016 of which Beta 31.12.2015 Difference % represents 86% of the total A (Adjusted) Stepstone B (Adjusted) A-B Net interest income 71.0 2.6 58.0 22% NII includes €11.3m of accrued LPIs Net fee a nd commi s s i
Slide 6: FY 2016 – Balance Sheet
FY 2016 – Balance Sheet Figures in millions of euro 31.12.2016 30.09.2016 Difference % Govies AFS portfolio slightly higher q/q with 31.12.2015 A B A-B a residual duration of 7 months ASSETS Govies ptf reduction vs 31.12.2015 influenced Avai la bl e-for-s a le financia l a s s ets 516 435 925 19% as
Slide 7: Focus on Factoring (ex Beta)
Focus on Factoring (ex Beta) Factoring Outstanding Evolution Average Outstading trend influenced by: €m 1,111 Quarterly turnover, with December contribution lower than expected (q/q) 200 997 985 976 213 214 224 the portion of the Outstanding in Legal Collection (y/y and q/q) Target Yield in line wit
Slide 8: Costs in line with expectations
Costs in line with expectations Administrative Expenses, Net Provisions for Operating Costs Personnel Expenses risk, Servicing Costs, Other and D&A €m • €1.3m Securitization expenses FTEs (#) 130 144 • €0.9m Advisory fees, including those for Beta +10% 20.1 21.5 33.2 36.7 13.1 15.2 13.1 17.2 7.0 4.3
Slide 9: Funding strategy focused on diversifying (ex. Beta)
Funding strategy focused on diversifying (ex. Beta) Total Funding Breakdown Core Business Funding Breakdown • Term Deposits stock is Core Funding Cost lower y/y, but higher 2.0% 1.2% 1.2% q/q due to higher 71% rates offered to 61% customers since mid- 58% Wholesale October. Although Funding Retail 4
Slide 10: Conservative risk policy in all the business lines
Conservative risk policy in all the business lines Gross Non Performing Loans(1) • Net Bad Loans represents 1.7% of total loans as at 31.12.2016 €m 143.1 ex. Repos (1.1% in 2015) 123.8 • Unlikely to pay increase q/q and Past-dues decrease q/q were 36.0 both due to factoring segment 35.2 • Unlikely t
Slide 11: Regulatory Capital
Regulatory Capital CET1 and Total Capital(1) RWA breakdown CET1 Total Capital €m Operational Risk Credit Risk Total RWA include €4.6m of Market Risk CET1 Ratio 16.8% 14.8% 15.8% CET1 Ratio 13.7% 12.4% 123.7 13.3% 124.7 836.7 788.0 106.9 104.6 635.7 103.8 86.9 735.3 653.0 535.2 100.5 101.5 130.4 31.1
Slide 12: Our track record of the last 5 years
Our track record of the last 5 years NET INCOME NET INTEREST INCOME 26.4 71.0 CAGR: +88% CAGR: +54% 2.1 12.7 FY 2012 FY 2016 Adj FY 2012 FY 2016 TOTAL INCOME PER HEADCOUNT - €’000 COST INCOME 566 79% CAGR: +20% 45% 273 FY 2012 FY 2016 FY 2012 FY 2016 Adj 12
Slide 13: 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 14: Head of Investor Relations
Carlo Di Pierro Head of Investor Relations carlo.dipierro@bancasistema.it +39 02 80280358 +39 3355288794