Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca - Banca di Credito Finanziario — FY2024 Earnings Presentation
40 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, Feb 6, 2025
Slide 1: 4Q-24 & FY-24 Preliminary Results
A Clear and Simple Commercial Bank, Revolving Around Customers, Combining Technology With Human Touch Siena, 6th February 2025 4Q-24 & FY-24 Preliminary Results
Slide 2: Disclaimer (1/2)
2 Disclaimer (1/2) IMPORTANT - YOU MUST READ THE FOLLOWING BEFORE CONTINUING: The information set out in this presentation is not intended to form the basis of any contract. By attending (whether in person, by telephone or webcast) this presentation or by reading the presentation slides, you agree t
Slide 3: Disclaimer (2/2)
3 Disclaimer (2/2) IMPORTANT INFORMATION: In connection with the Offer, the required offer document will be sent to Commissione Nazionale per le Società e la Borsa (“CONSOB”) and, to the extent that the shares issued in connection with the proposed voluntary public exchange offer will be required to
Slide 4: 4Q-24 & FY-24 Executive Summary
4 4Q-24 & FY-24 Executive Summary Notes: (1) Direct and indirect commercial funding. (2) Dec-24 ratios calculated including net profit for the period, subject to the ECB authorization, and net of €1.083m of dividend distribution, subject to the AGM approval. ▪ FY-24 net profit at €1,951m (+16.9% y/y
Slide 5: Dividend of €1,083m, Dividend Yield of 14%
5 … €1,083m, for a Dividend Yield of 14%, top of the banking sector €0.86 per share, a total of €1,083m D/Y 14%(1) Notes: The dividend distribution will be subject to the AGM approval. (1) On the basis of stock price as at 31 January 2025. (2) Source: FactSet as of 31-Jan-25. Dividend yield calculat
Slide 6: Net Profit Quarterly and Yearly Evolution
6 1,236 1,445 471 FY-23 FY-24 318 4Q-23 3Q-24 4Q-24 Net Profit Quarterly Evolution (€m) Yearly Evolution (€m) -4.9% 1,123 407 • FY-24 net profit at €1,951m, up + 16.9% y/y on comparable basis driven by a sound operating performance, with 4Q-24 net profit contribution of €385m 466 339 (1) (2) 385 2,0
Slide 7: Gross Operating Profit Quarterly Evolution
7 508 539 520 4Q-23 3Q-24 4Q-24 485 467 477 4Q-23 3Q-24 4Q-24 940 952 961 4Q-23 3Q-24 4Q-24 Gross Operating Profit Quarterly Evolution Operating Income (€m) Gross Operating Profit (€m) Operating Costs (€m) Core revenues (NII + Fees) Other financial revenues Cost/Income 1,007 49% 46% +2.4% 993 -1.0%
Slide 8: Gross Operating Profit Yearly Evolution
8 1,954 2,165 FY-23 FY-24 1,843 1,869 FY-23 FY-24 3,614 3,821 FY-23 FY-24 Operating Income (€m) Gross Operating Profit (€m) Operating Costs (€m) 46% Core revenues (NII + Fees) Other financial revenues Cost/Income 49% +6.2% Gross Operating Profit Yearly Evolution +10.8% +1.4% 3,797 4,034 • FY-24 gros
Slide 9: Core Revenues
9 604 596 588 335 356 373 4Q-23 3Q-24 4Q-24 Core Revenues (Net Interest Income + Net Fee and Commission Income) Yearly Evolution (€m) +5.7% Quarterly Evolution (€m) +1.0% +2.3% • FY-24 core revenues at €3,821m, up +5.7% y/y thanks to the increase in both NII and fees • 4Q-24 core revenues at €961m u
Slide 10: Core Revenues driven by strong commercial performance
10 Core Revenues driven by strong commercial performance 157.9 167.2 Dec-23 Dec-24 Total Commercial Savings(1) (€bn) 10.4 14.6 Dec-23 Dec-24 WM Gross Inflows (€bn) 2.7 3.4 Dec-23 Dec-24 New Retail Mortgages (€bn) 0.9 1.1 Dec-23 Dec-24 New Consumer Finance (€bn) Managerial data. Notes: (1) Commercial
Slide 11: Net Interest Income
11 604 596 588 4Q-23 3Q-24 4Q-24 2,292 2,356 FY-23 FY-24 Net Interest Income Lending rate Funding rate Spread Yearly Evolution (€m) 4.10% 0.69% 3.41% 4.31% 1.13% 3.18% -23bps +2.8% Quarterly Evolution (€m) 4.44% 1.01% 4.29% 1.14% -6bps -1.3% -2.7% -33bps 3.43% 3.16% 4.09% 0.99% 3.10% • FY-24 NII at
Slide 12: Net Customer Loans
12 Net Customer Loans Notes: (1) Loans presented net of repos and NPEs. 2023 figures have been recast on the basis of a different client segmentation and including the effect of the merger of MPS CS and L&F. 62.8 63.1 62.6 61.5 62.0 6.1 6.2 6.2 6.0 6.4 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 -1.2% +0.9%
Slide 13: Total Commercial Savings
13 Total Commercial Savings Notes: (1) Managerial data. Commercial savings, in indirect funding, not including certain institutional assets, as per business plan targets. 71.4 71.8 74.4 72.2 74.3 29.9 32.1 31.8 32.4 33.2 56.6 57.8 58.3 59.2 59.6 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Deposits AuC AuM +2
Slide 14: Italian Govies Portfolio
14 Notes: (1) Banking book: Amortized cost portfolio + Financial assets FVTOCI. FVTOCI credit spread sensitivity: before tax, for 1bp increase in the BTP/Bund spread. Figures from operational data management system. Nominal value for govies at AC; net position for govies at FVTPL. Total portfolio in
Slide 15: Net Fee and Commission Income Quarterly Evolution
15 150 173 176 4Q-23 3Q-24 4Q-24 335 356 373 4Q-23 3Q-24 4Q-24 185 183 198 4Q-23 3Q-24 4Q-24 Net Fee and Commission Income Quarterly Evolution Commercial Banking Fees (€m) Total Fees (€m) Wealth Management and Advisory Fees (€m) +6.6% +8.1% +11.4% +4.9% +17.4% +1.6% • 4Q-24 total fees at €373m, with
Slide 16: Net Fee and Commission Income Yearly Evolution
16 1,322 1,465 FY-23 FY-24 600 713 FY-23 FY-24 Total Fees (€m) Notes: (1) The split of net fee and commission income for FY-23 has been slightly changed compared to 2023 presentation to align with market best practices. Commercial Banking Fees(1) (€m) Wealth Management and Advisory Fees(1) (€m) +10.
Slide 17: Operating Costs Quarterly Evolution
17 485 467 477 4Q-23 3Q-24 4Q-24 321 310 311 4Q-23 3Q-24 4Q-24 Operating Costs Quarterly Evolution HR Costs (€m) Operating Costs (€m) Non-HR Costs (€m) -3.0% +0.5% +2.0% -1.7% 164 158 166 4Q-23 3Q-24 4Q-24 +0.9% +4.9% • 4Q-24 operating costs at €477m (-1.7% y/y); q/q dynamics reflecting the typical
Slide 18: Operating Costs Yearly Evolution
18 663 640 FY-23 FY-24 1,180 1,229 FY-23 FY-24 1,843 1,869 FY-23 FY-24 HR Costs (€m) Operating Costs (€m) Non-HR Costs (€m) Operating Costs Yearly Evolution +1.4% +4.2% -3.5% • FY-24 operating costs at €1,869m (+1.4% y/y), with ongoing optimization of non-HR costs (-3.5% y/y) partially offsetting th
Slide 19: Gross NPE Stock
19 1.4 1.5 1.5 1.6 1.3 2.1 2.2 2.2 2.3 2.3 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Bad loan UTP + Past due 1.6 1.7 1.7 1.8 1.6 0.8 0.8 0.9 0.9 1.0 1.1 1.1 1.2 1.2 1.1 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Secured (RE) Secured (State) Unsecured 3.5 3.6 3.7 3.9 3.7 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Gross NPE
Slide 20: Coverage and Cost of Risk
20 54 50 50 56 1Q-24 2Q-24 3Q-24 4Q-24 49.1% 49.9% 48.5% Dec-23 Sep-24 Dec-24 Total NPE Coverage 68.1% 37.6% 21.7% 68.4% 37.7% 22.8% 66.5% 38.8% 26.3% Bad loan Coverage UTP Coverage Past Due Coverage Dec-23 Sep-24 Dec-24 Coverage and Cost of Risk NPE Coverage Breakdown Cost of Risk (bps) 57 53 FY23
Slide 21: Funding & Liquidity
21 130% 129% 134% 133% 134% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 163% 163% 164% 165% 166% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 9% 9% 7% 7% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 11% Funding & Liquidity Reduced Reliance on ECB funding (ECB Funding/Total Liabilities) LCR Evolution NSFR Evolution • Solid liqui
Slide 22: Capital Ratios
22 18.3% +0.8% 18.2% -0.5% -0.4% Sep-24 4Q-24 net profit 4Q-24 dividend (pay-out: 75%) RWA and other Dec-24 Notes: (1) Dec-23 capital ratios net of €315m of dividend distribution. Mar-24 capital ratios include net profit of the period net of dividend (calculated on the basis of a pay-out ratio of 50
Slide 23: Outlook 2025
23 Outlook 2025 Pre-tax Profit ▪ Expected to be at least In line with 2024 CET1 ratio FL ▪ Organic capital generation allowing to grow CET1 ratio while maintaining high shareholders’ remuneration Dividend ▪ Ambition to ensure stability year on year 2025 Outlook > 18.5% Cost of Risk ▪ Decreasing, tha
Slide 24: Voluntary Public Exchange Offer launched by MPS on Mediobanca
24 Voluntary Public Exchange Offer launched by MPS on the ordinary shares of Mediobanca
Slide 25: We are Joining Forces with Mediobanca in a Unique Industrial Project
25 We are Joining Forces with Mediobanca in a Unique Industrial Project ‘‘ Mediobanca is our partner of choice, the ally with whom we want to join forces to enter into a new phase of growth and value creation, sustained by a synergic and complementary business model, leveraging the strengths of our
Slide 26: Mediobanca Highlights
26 Mediobanca Highlights Divisional Contribution ▪ Group’s profitability mainly driven by Insurance (38% of net income) and Consumer Finance (28% of net income) ▪ Lower contribution of Wealth Management (15% of net income) and CIB (18% of net income), accounting together for c.1/3 of net income 15%
Slide 27: Mediobanca Highlights (cont'd)
27 Mediobanca Highlights (cont’d) Relative Contribution MPS-MB MB Market Valuation ▪ Mediobanca market cap supported by growing weight of Generali stake (worth c.€6bn) ▪ As of January 23rd 2025, the c.13% stake in Generali accounts for c.47% of the market cap ▪ Mediobanca market cap excl. Generali s
Slide 28: Powerful Group Combination thanks to Complementarity of the two Platforms
28 Powerful Group Combination thanks to Complementarity of the two Platforms… CIB CONSUMER FINANCE INSURANCE PRIVATE BANKING MPS Combined Combining “pure IB advisory” capabilities with a solid balance sheet to evolve into a fully-fledged CIB model in line with leading players Player at scale (~1.2k
Slide 29: … with an Enhanced Business Mix
29 … with an Enhanced Business Mix Retail banking Corporate banking CIB IB Consumer finance Private Banking / WM Insurance 49% 48% 3% MPS (1) Operating profit + 30% 27% 5% 18% 8% 12% Combined (3) Operating profit 19% 40% 15% 26% Operating profit Mediobanca (2) = Note: Figures from publicly available
Slide 30: Revenue Synergies
Notes: Figures from publicly available data or elaborated by MPS on the basis of public available data. 30 Retail Banking ▪ Offering MPS daily products to Compass and Mediobanca Premier clients ▪ Delivery of MPS branch network at scale Investment Banking Corporate ▪ Enhanced product offering combini
Slide 31: Cost Synergies and Integration Costs
31 Business Area Costs (~€0.3bn) and Funding (~€0.1bn) ~€0.6bn in year-1 pre-tax integration costs – Expected a seamless integration between the two entities Treasury & Funding ▪ More balanced funding mix for the combined entity ▪ Optimization of the wholesale funding structure also leveraging on MP
Slide 32: Value Creation for all Stakeholders
32 Value Creation for all Stakeholders Profitability Pro-forma RoTE at ~14%(1) Double-digit accretion on adj. EPS(2) for all shareholders Dividends Organic capital generation above net income leading to accretive DPS with up to 100% payout ratio Capital CET1 ratio PF at ~16%, significantly above 14%
Slide 33: Appendix – Supporting Materials of 4Q-24 & FY-24 Results
33 Appendix – Supporting Materials of 4Q-24 & FY-24 Results
Slide 34: Focus on DTAs
34 Focus on DTAs Other non-convertible DTAs DTAs on Tax loss carryforwards Convertible DTAs Dec-23 ▪ Stock of DTAs not recorded in Balance Sheet at €1.6bn, entirely composed by DTAs on tax loss carryforwards ▪ Current Italian fiscal regulations do not set any time limit to the use of tax loss carryf
Slide 35: Extraordinary Litigations and Extrajudicial Claims
35 Extraordinary Litigations and Extrajudicial Claims 0.66 0.64 0.67 0.23 0.22 0.22 Gross Petitum(1) (€bn) Other civil litigations Extrajudicial claims 0.0 0.0 0.0 0.45 0.45 0.45 Dec-23 Sep-24 Dec-24 Alken civil litigation (2nd degree positive) ▪ Extraordinary litigations and extrajudicial claims st
Slide 36: Reclassified Income Statement
36 Reclassified Income Statement (1) Notes: (1) Financial revenues include: dividends, trading/disposal/valuation/hedging of financial assets. (€m) 4Q-24 3Q-24 4Q-23 FY24 FY23 4Q-24/ 3Q-24 (%) 4Q-24/ 4Q-23 (%) FY24/ FY23 (%) Net Interest Income 588 596 604 2,356 2,292 -1.3% -2.7% +2.8% Net fees and
Slide 37: Balance Sheet
37 Balance Sheet Notes: (1) Other assets include: cash and cash equivalents, derivatives assets, equity investments, tax assets, other assets. Other liabilities include: financial liabilities held for cash trading, derivatives, provisions, tax liabilities, other liabilities. Total Assets(1) (€m) Tot
Slide 38: Lending & Direct Funding
38 Lending & Direct Funding Total Lending (€m) Direct Funding (€m) Dec-23 Sep-24 Dec-24 QoQ% YoY% Current accounts 2,756 2,884 2,659 -7.8% -3.5% Medium-long term loans 51,838 50,400 50,705 0.6% -2.2% Other forms of lending 14,219 14,209 15,023 5.7% 5.7% Reverse repurchase agreements 6,230 7,212 7,03
Slide 39: BMPS ESG Commitments and Targets
39 BMPS ESG Commitments and Targets OUR COMMITMENT CURRENT ACHIEVEMENTS OUR KEY OBJECTIVES AND TARGETS FOR 2024-2028 Strengthen the Group’s commitment to supporting sustainable transition and reducing direct environmental impacts ▪ - 70 % Scope 1 emissions(1) (2017 vs 2024) ▪ 100% renewable energy s
Slide 40: Decarbonisation Targets extended to other two NZBA sectors
40 Decarbonisation Targets extended to other two NZBA sectors Following its membership of the Net-Zero Banking Alliance (NZBA) of 2022, BMPS has identified further decarbonisation objectives for its lending portfolios for two other high emission intensity sectors to support the carbon neutrality by
Mediobanca - Banca di Credito Finanziario — FY2024 Earnings Presentation on 6ix