Credito Emiliano S.p.a. · MIL:CE

Credito Emiliano — FY2020 Earnings Presentation

27 slides from Credito Emiliano's earnings presentation, 2021

  1. Slide 1: Group Results 2020

    A = GROUP RESULTS 2020

  2. Slide 2: 2020: Key Points

    2020: KEY POINTS LOANS GROWTH NPL RATIO* Loans to customers Credit quality: above €29 billion, best-in-class in +9.8% with almost 10% YoY 5.4% Italy and close growth, over 2.5x to the EU compared to the average Industry 2.9% 2.8% 3.9% PROFITABILITY CAPITAL Net Profit 14.0% Capital soundness at the t

  3. Slide 3: 2013-2020: Growth Strategy - Volumes

    2013-2020: GROWTH STRATEGY - VOLUMES TOTAL BUSINESS +€40 Total Business exceeded €100 +58% billion billion, +58% in 7 years, only 108.3 68.4 through organic growth 2013 2020 LOANS TO CUSTOMERS DEPOSITS AUM + INSURANCE +47% +82% +80% 29.3 30.8 37.8 19.9 16.9 20.9 2013 2020 2013 2020 2013 2020 Total B

  4. Slide 4: 2013-2020: Growth Strategy - Revenues

    2013-2020: GROWTH STRATEGY - REVENUES “CORE” OPERATING INCOME (quarterly average) 290 277 282 +20.5% 275 280 268 270 257 260 249 248 250 240 234 224 224 230 221 220 210 210 200 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 The growth strategy is effective also on the revenues. The core

  5. Slide 5: A Growing Digital Approach

    A GROWING DIGITAL APPROACH INTERNET BANKING 1 DIGITAL OPERATION: 4 RETAIL MIGRATION TREND  >643,000 contracts (+11%)  +21% of access  +25% of online operations  As of December 2020, more  Incidence on bank accounts at than 89% of overall 66% vs 62% FY19 transactions was carry out through digita

  6. Slide 6: Sustainability – 2020 Key Points

    SUSTAINABILITY – 2020 KEY POINTS 2019 IQ20 IH20 9M20 FY20 2021 Approval of the Start assessing the WELLBANKING: the bank’s Identified targets, to be Non-financial exposure to Climate increasing reached by 2023, that aim to statement, which Change risks in the focus on financial and life have a great

  7. Slide 7: Covid Emergency: Total Delivered Loans

    COVID 19 EMERGENCY: TOTAL DELIVERED LOANS Moratoria State-backed guaranteed loans «Cura Italia» decree, «Accordo Abi» and «Liquidità» Decree «Fondo di solidarietà prima casa» Households: €480 mln <30 k€: €526 mln Governative Corporates: €3,130 mln initiative and >30 k€: €1,690 mln others Total*: €3,

  8. Slide 8: Reclassified Income Statement

    RECLASSIFIED INCOME STATEMENT €, million 4Q19 3Q20 4Q20 Δvs 4Q19 FY19 FY20 Δvs FY19 • Operating income remained broadly stable vs FY19 and ù Operating income 316.3 318.3 307.5 -2.8% 1,204.5 1,202.2 -0.2% exceeded €1.2 billion (-0.2% vs FY19), despite lower Core Op. Income 270.5 296.9 291.1 +7.6% 1,1

  9. Slide 9: Normalized Income Statements

    NORMALIZED INCOME STATEMENTS FY19 FY20 POSITIVE EVOLUTION OF €, million ù NORMALIZED AGGREGATES Net Interest Income 472.8 448.5 • The table shows aggregates normalized from Non Interest Margin 661.6 700.7 positive and negative contribution coming Operating Income 1,134.4 1,149.2 from TLTRO II and II

  10. Slide 10: Net Interest Income (1/3)

    NET INTEREST INCOME (1/3) NET INTEREST INCOME: EVOLUTION EURIBOR AND SPREAD BTP/BUND +1.8% 256 243 0.5% 136 0.4% 129 129 199 171 0.3% 123 160 119 116 139 133 0.2% 115 112 0.1% 103 -0.1% -0.2% -0.31% -0.32% -0.30% -0.3% -0.40% -0.40% -0.41% -0.47% -0.4% -0.52% -0.5% -0.6% -0.7% 1Q19 2Q19 3Q19 4Q19 1Q

  11. Slide 11: Net Interest Income (2/3)

    NET INTEREST INCOME (2/3) 1.99 CUSTOMERS SPREAD  The average loan interest rates similarly narrowed 1.97 2.10 1.92 both for the Industry (-21 bps vs. 4Q19) and for 1.90 1.91 1.85 1.82 1.82 1.78 1.78 Credem (-25 bps vs. 4Q19), due to strong 1.75 1.70 1.68 1.69 competition and low level of interest r

  12. Slide 12: Net Interest Income (3/3)

    NET INTEREST INCOME (3/3) SECURITIES PORTFOLIO BREAKDOWN 5.4 bn 5.4 bn 5.1 bn  The total securities portfolio remained 00% broadly stable compared to 9M20  BTP exposure slightly decreased in 4Q20 90% as well as the incidence on the total (the 37% 33% 36% 35% 80% 43% latter is expected to keep redu

  13. Slide 13: Non Interest Margin

    NON INTEREST MARGIN Total 164.9 171.1 182.2 201.5 186.4 161.9 182.6 178.3 2.7 27.8 19.4 Performance Fees 13.1 6.2 2.9 14.5 4.1 47.5 46.0 44.3 Income from 49.2 49.8 47.9 Financial Activities 43.8 52.4 13.7 14.6 15.4 Banking Fees 10.2 17.1 13.6 14.4 12.3 Insurance Income 98.1 91.4 96.0 94.4 Asset Mana

  14. Slide 14: Operating Costs and D&A

    OPERATING COSTS AND D&A OPERATING COSTS EMPLOYEES / NETWORKS -2% Employees 183 183 173 180 184 164 170 187 6,195 6,201 6,219 6,068 6,140 5,899 185 5,763 5,544 5,519 5,604 5,609 51 54 49 52 49 55 43 49 135 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 85 132 130 131 132 139 118 121 121 Finan

  15. Slide 15: Loans to Customers

    LOANS TO CUSTOMERS LOANS TO CUSTOMERS: EVOLUTION 8,364 24,000 5,444 5,699 7,119 7,964 5,328 5,362 5,332 20,000 Other Loans 7,405 7,484 8,329 16,000 6,838 7,045 7,206 7,733 7,993 Residential Mortgage Leasing 12,000 2,546 2,594 2,681 2,656 2,601 2,710 2,753 2,838 Short-Term8,000 Loans 10,282 10,452 10

  16. Slide 16: Loans: Comparison with the Industry

    LOANS: COMPARISON WITH THE INDUSTRY LOANS TO CUSTOMERS GROWTH* MARKET SHARES** EVOLUTION 1.94% +9.8% YoY 1.89%1.89% 1.9% 1.79% Industry 1.77% Credem 1.66% +56.1% 1.58% 1.6% 1.48% 1.28% 1.3% 1.20% 3.9% YoY 1.16% MS on Performing Loans 1.07% 1.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

  17. Slide 17: Group Customers Funding: Net Inflows Breakdown

    GROUP CUSTOMERS FUNDING: NET INFLOWS BREAKDOWN 7,062 AUC Direct Deposits 4,924 AUM + Insurance 4,508 Total Net Inflows 3,534 3,435 2,608 2,826 2,670 2,389 2,252 1,400 1,623 1,472 962 939 666 331 -352 -255 -577 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 • Remarkable performance of Net Producti

  18. Slide 18: Deposits, AUM and Insurance

    DEPOSITS, AUM AND INSURANCE • Continued the overall growth of Direct Deposit €/mln FY19 FY20 (+17.1% YoY), mainly driven by net funding flows, Slight / Saving Depo. 25,825 30,321 including Corporate • Excellent increase in assets under management, CD and Other Deposit 482 495 growing by 6.6% YoY, wi

  19. Slide 19: Bonds Issuances and Maturities

    BONDS ISSUANCES AND MATURITIES ISSUANCES 1000 MATURITIES Wholesale Retail 800 Covered Bond 2,000 365 500: SNP 600 1,500 750: CB 500 SNP 1,000 400 750 750 200: T2 1,500 1,250 107.5: T2 200 500 Tier 2 Covered Tier 2 Tier 2 500 CRVita CRVita Bond 38 200 250 307.5 0 50 100 100 107.5 - 50 100 2014 2015 2

  20. Slide 20: Credit Quality: Gross NPL Ratio

    CREDIT QUALITY: GROSS NPL RATIO GROSS NON PERFORMING LOANS 900 707 2018 578 600 2019 445 413 399 378 Disposal 2020 300 ~90 mn New DoD Disposal effect ~40+70mn 53 34 49 0 Gross Bad Loans Gross UTP Loans Gross Past Due Loans % su Loans (Credem) 2.7 2.1 1.5 1.6 1.5 1.3 0.1 0.2 0.2 % su Loans (System)*

  21. Slide 21: NPL: Accounting Coverage

    NPL: ACCOUNTING COVERAGE NET NON PERFORMING LOANS €, million 2018 2019 FY20 0  Significant reduction in Net Bad Loans (-14.3% vs FY19) that were €421 million. Coverage ratio on NPL Net Bad Loans 232.6 174.6 125.5 was 52% broadly in line with 2019 levels. High coverage on Bad Loans, that grew by app

  22. Slide 22: Comprehensive Coverage

    COMPREHENSIVE COVERAGE Coverage NPL Gross Net Coverage Shortfall* incl. Shortfall Bad Loans 445.2 125.5 71.8% 66.7 86.8% +420.8 + Net NPL UTP Loans 378.2 252.7 33.2% 12.5 36.5% - Shortfall - 78.6 = NPL net of Shortfall 342.2 Total NPL (FY20) 876.4 420.8 52.0% 78.6 61.0% PERFORMING LOANS COVERAGE FY1

  23. Slide 23: Cost of Risk

    COST OF RISK 68 59 55 58 52 48 42 44 39 36 38 31 32 34 38 47 45 39 41 24 24 24 28 34 30 18 27 20 19 21 13 17 15 8 15 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 1H20 9M20 2020 Cost of risk Cost of risk (net of non-recurring events) COST OF RISK: HISTORY • The cost of risk, 38 bps, is conf

  24. Slide 24: Assets & Liabilities

    ASSETS & LIABILITIES ASSETS 29,299 000 28,103 9M20 2020  Loans to customers grew more 000 than €1 billion, also favored by 8,635 8,309 7,946 7,534 the usual seasonality of the last quarter 5,200 5,055 3,699 3,516 000  The increase in loans led the reduction of Due from Banks (- 58 42 0 €300 millio

  25. Slide 25: Liquidity Ratios

    LIQUIDITY RATIOS NSFR 300% LCR 270% 125% 126% 121% 240% 210% 210% 199% 180% 172% 150% 120% 90% 2018 2019 2020E 2018 2019 2020E  Both the LCR and NSFR indicators have been 1.30 1.25 LOAN TO DEPOSIT RATIO* largely confirmed above the regulatory levels, 1.20 1.15 1.10 0.97 with the latter enabling the

  26. Slide 26: Consolidated Capital Ratios

    CONSOLIDATED CAPITAL RATIOS CAPITAL AND CAPITAL RATIOS CET1 RATIO Banking Group Credemholding (CREDEMHOLDING)* €/mln 2019 2 02 0 2018 2019 2 02 0 15.0% CET 1 2,220 2,580 1,782 2,039 2,340 2,200 14.0% Total Capital 2,567 2,932 2,093 2,339 2,746 14.0% 2,000 13.5% Capital absorption from: 1,197 1,324 1

  27. Slide 27: Disclaimer and Contacts

    DISCLAIMER AND CONTACTS The manager responsible for preparing the company’s financial reports Mr. Paolo Tommasini of Credito Emiliano S.p.A., declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corres

Credito Emiliano S.p.A. (Credem) — FY2020 Earnings Presentation on 6ix