Bper Banca S.p.a. · MIL:BPE
Bper Banca — H1 2024 Earnings Presentation
31 slides from Bper Banca's earnings presentation, Aug 7, 2024
Slide 1: 1H24 Results
1H24 Results Milan, August 7th, 2024
Slide 2: Disclaimer
Disclaimer This document has been prepared by “BPER Banca” solely for information purposes, and only in order to present its strategies and main financial figures. The information contained in this document has not been audited. No guarantee, express or implied, can be given as to the document’s con
Slide 3: Agenda
Agenda Executive summary Group results Final remarks Annexes
Slide 4: Steadfast Revenue growth and higher profitability in 1H24
Steadfast Revenue growth and higher profitability in 1H24 Total Revenues Profit before tax(1)(2) €2.8 bn €1.1 bn Delivered higher results in first half with Pre-tax +4.1% H/H +15.9% H/H Profit up by 16% H/H Cost/Income (3) CoR(4) “Core” Revenues up by 7% H/H and operational 50.6% 41bps efficiency st
Slide 5: Net Profit in 1H24 mainly driven by Core Revenues and lower LLPs
Net Profit in 1H24 mainly driven by “Core” Revenues and lower LLPs P&L Key Figures Net Profit stated vs adjusted(3) (€mn) (€mn) 1H24 H/H 2Q24 Q/Q Y/Y 413.9 382.5 388.5 290.7 309.3 Total Revenues 2,758.1 +4.1% 1,396.9 +2.6% +5.1% 264.1 (4) Core Revenues 457.3 o/w NII 1,682.5 +8.9% 838.9 -0.6% +2.4% 4
Slide 6: On track to achieve 2024 Guidance
On track to achieve 2024 Guidance FY24 Guidance FY23 1H24 vs. FY23 Results Net Interest Income €3.3 bn €1.7 bn Revised to stable Net Commission Income €2.0 bn €1.0 bn Unchanged Operating Costs(1) €2.7 bn €1.4 bn Revised upwards Cost of Risk(2) 48bps 41bps Revised to improved Net Profit(3) €1.3 bn €0
Slide 7: Agenda
Agenda Executive summary Group results Final remarks Annexes
Slide 8: Resilient performance in Core Revenues
Resilient performance in “Core” Revenues Total Revenues Key Highlights Tot. Revenues +5.1%Y/Y “Core” Revenues Net Revenues/RWA(1) 9.3% 9.2% 9.5% 9.6% • In 1H24 “Core” Revenues at €2.7 bn, up by 7.0% 1,800.0 8.6% 8.8% 1,600.0 1,462.9 (2) 9.0% H/H, mainly thanks to: 1,329.1 1,364.6 1,361.2 1,396.9 8.0
Slide 9: 2Q24 NII driven by lower rates partially compensated by treasury activities
2Q24 NII driven by lower rates partially compensated by treasury activities Net Interest Income & Rates Key Highlights +2.4% Y/Y NII NII 870.3 836.5 843.6 838.9 (quarterly) 819.0 • In 1H24, strong NII at €1.7 bn (+8.9% H/H) thanks (€mn) 726.0 to spread increase • In 2Q24, resilient NII at €838.9 mn
Slide 10: Net Commissions up thanks to AuC/AuM & Non-life insurance products
Net Commissions up thanks to AuC/AuM & Non-life insurance products Net Commission Income(1) Key Highlights +7.6% Y/Y Net Commission Net Commission Income 517.2 516.0 Income • In 1H24, Commission Income up at €1.0 bn (+4.0% Insurance 22.7 (quarterly) 496.2 performance fees 498.7 H/H) mainly driven by
Slide 11: Total Financial Assets growth supported by diversified product mix
Total Financial Assets growth supported by diversified product mix TFA Key Highlights TFA +€17.6 bn Y/Y Deposits (€bn) 290.3 298.1 298.7 282.1 281.1 284.2 21.1 21.4 21.2 • Deposits mainly affected by outflows into 23.8 23.4 22.5 65.2 67.3 68.6 AuC/AuM thanks to customer demand of Italian 62.1 63.3 6
Slide 12: Cost/Income flat at 50.6%, HR Costs up by 3.1% H/H mainly due to CCNL
Cost/Income flat at 50.6%, HR Costs up by 3.1% H/H mainly due to CCNL Operating Costs Key Highlights Excluding Flat Y/Y Excluding €294.5 mn €173.8 mn Operating Costs Cost/Income(1) 50.4% 50.6% 50.6% 50.6% 50.1% • In 1H24, Total Costs were up to €1.4 bn (+4.2% 49.0% 775.5 H/H) with a Cost/Income rati
Slide 13: Improvement in Cost of Risk and well balanced Coverage Ratio
Improvement in Cost of Risk and well balanced Coverage Ratio LLPs, Cost of Risk & Coverage ratio Key Highlights 63 -19bps Y/Y 160.0 Cost of Risk 58 70 Loan loss provisions 60 (quarterly)140.0 43 50 • In 1H24, LLPs at €175.1 mn (-34.1% H/H) 120.0 38 39 (bps) 33 40 100.0 30 • In 2Q24, LLPs at €81.7 mn
Slide 14: NPEs slightly increase due to the late implementation of the new platform
NPEs slightly increase due to the late implementation of the new platform Asset Quality Key Highlights 3.0 Flat Y/Y Gross NPE Stage Classification 0.2 2.5 2.5 2.5 stock 0.2 2.2 2.3 • Strong reduction in Stage 2 loans (-€0.9 bn Q/Q) 1.0 0.2 0.2 (€bn) 0.2 0.2 1.0 1.0 0.7 0.7 with a Stage 2 Coverage Ra
Slide 15: RWA well managed with continued efficiencies and lower credit risk
RWA well managed with continued efficiencies and lower credit risk RWA evolution Key Highlights 53.5 53.4 53.4 53.5 53.1 RWA(1) 1.0 52.0 0.9 2.3 RWA 0.8 0.9 1.1 (€bn) 6.0 6.0 6.0 7.0 7.0 7.0 • In 2Q24 Total RWA remain flat Q/Q thanks to improved risk profile on the back of our prudent credit policy
Slide 16: CET1 Ratio driven by strong organic capital generation
CET1 Ratio driven by strong organic capital generation Capital evolution Key Highlights CET1 ratio 14.9% 14.9% 15.3% Organic capital generation (OCG)(1) 14.5% 14.0% • Significant OCG of 199bps in 1H24 reinforcing 13.3% capital strength Quarterly key drivers 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 • In 2Q24 th
Slide 17: Robust balance sheet with a sound liquidity profile
Robust balance sheet with a sound liquidity profile Balance sheet (€bn) Key Highlights Other Assets Balance sheet: €139.4 bn LCR and NSFR 12.7 19.9 • LCR reached 161.4% at the end of June 2024 vs Financial Assets at 8.6 160.9% at end of December 2023, even after the amortised Cost 7.7 Loans Breakdow
Slide 18: Bond Portfolio
Bond Portfolio Portfolio Key Highlights Italian Govies Italian Government -13.0% Bond • Italian Govies at €8.9 bn, down by 13.0% Y/Y and 10.3 10.2 (€bn) 10.0 up by 2.0% Q/Q 9.0 8.7 8.9 • This portfolio is 36.1% of the Total Bond portfolio outstanding 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Italian Gov. / 35.7
Slide 19: Bond Issuances & Maturities
Bond Issuances & Maturities Bond Maturities & Issuances Key Highlights 6.4 Bond issued Bond issued Bond maturities (€bn) (€bn) • Main issuance in the first half: in Feb-24, the first 2.1 Senior Preferred Bond qualifying as “Green” for €0.5 bn; in March a 7-year maturity Covered Bond 3.2 for €0.5 bn;
Slide 20: Agenda
Agenda Executive summary Group results Final remarks Annexes
Slide 21: Final Remarks
Final Remarks Growth supported by "Core" Revenues and operational efficiency Asset quality remains very strong Strong capital supported by solid Organic Generation of 199bps On track to achieve 2024 Guidance Capital Markets Day confirmed on 10 October 2024 21
Slide 22: Agenda
Agenda Executive summary Group results Final remarks Annexes
Slide 23: Group P&L
Group P&L 1H24 1H23 2Q24 P&L - (€mn) Delta H/H Delta H/H % Delta Q/Q % Delta Y/Y % Stated Stated Stated Net interest income 1,682.5 1,545.0 137.5 8.9% 838.9 -0.6% 2.4% Net commission income 1,014.7 975.9 38.9 4.0% 516.0 3.5% 7.6% Core Income 2,697.2 2,520.8 176.4 7.0% 1,354.9 0.9% 4.3% Dividends 37.
Slide 24: Group P&L adjustments in the last three quarters
Group P&L adjustments in the last three quarters 2Q24 Non-recurring 2Q24 1Q24 Non-recurring 1Q24 4Q23 Non-recurring 4Q23 P&L - (€mn) items items items Stated Adjusted Stated Adjusted Stated Adjusted Net interest income 838.9 838.9 843.6 843.6 870.3 870.3 Net commission income 516.0 516.0 498.7 498.7
Slide 25: Group Reclassified Balance Sheet
Group Reclassified Balance Sheet ASSETS (€bn) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Chg Q/Q Chg Y/Y Customer Loans 89.4 89.1 86.7 88.2 87.7 89.0 +1.4% -0.1% Securities Portfolio 30.7 30.5 30.0 28.6 26.5 26.5 +0.3% -12.9% 1 Interbank Assets 18.5 10.3 13.4 11.7 12.6 10.1 -19.4% -1.7% PPE & Intangible Assets 3
Slide 26: Asset Quality Breakdown
Asset Quality Breakdown Gross exposures (€mn) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Chg YTD Chg Y/Y Chg Q/Q comp. % comp. % comp. % comp. % comp. % comp. % Abs. Chg (%) Abs. Chg (%) Abs. Chg (%) Non Performing Exposures (NPEs) 3,022 3.3% 2,504 2.7% 2,530 2.8% 2,197 2.4% 2,336 2.6% 2,513 2.8% 316 14.4% 9 0.4
Slide 27: Net Customer Loans: Loan Portfolio Composition
Net Customer Loans: Loan Portfolio Composition Net Customer Loans Breakdown by Sector (€bn; %) Net Customer Loans Breakdown by Geographical Areas(1) (%) % on Total Δ% Lombardy Business sector 2Q24 Customer North vs 4Q23 24.5% Loans 59.8% Manufacturing 13.1 14.7% -0.1% Wholesale and retail services,
Slide 28: Financial Assets: Highlights
Financial Assets: Highlights Bonds PTF Geographical Breakdown (%) Govies Geographical Breakdown (%) Other Germany 6.8% Other 6.5% 23.8% USA 6.6% Spain 8.2% USA Italy 4.9% 44.8% Spain Italy 5.6% 71.9% Germany 8.5% France 12.5% Bonds PTF Maturities1 (€bn) Italian Govies Maturities1 (€bn) 14.3 5.4 2.9
Slide 29: Commercial dynamics: loans and deposits evolution
Commercial dynamics: loans and deposits evolution Commercial loans by geography (€bn; %) Commercial deposits by geography (€bn; %) 89.4 89.1 86.7 88.2 87.7 89.0 105.0 103.4 107.7 104.9 103.8 104.4 10.0% 10.0% 10.1% 10.5% 10.1% 10.1% 13.1% 13.2% 13.3% 13.5% 13.1% 13.4% 12.5% 12.4% 12.6% 12.5% 12.4% 1
Slide 30: ESG
ESG Environmental Social Governance • Membership in the Net Zero Banking Alliance, • Signatory of the Principles for Responsible Banking • Presence of a Board-internal Sustainability publication of the first Net Zero targets and and definition of inclusion, digitalisation and Committee and a Manager
Slide 31: Contacts for Investors and Financial Analysts
Contacts for Investors and Financial Analysts Nicola Sponghi Chiara Leonelli Head of Investor Relations Investor Relations nicola.sponghi@bper.it chiara.leonelli@bper.it Maria Accarrino Ilaria Picelli Investor Relations Investor Relations maria.accarrino@bper.it ilaria.picelli@bper.it Federico Febbr