Credito Emiliano S.p.a. · MIL:CE
Credito Emiliano — FY2015 Earnings Presentation
23 slides from Credito Emiliano's earnings presentation, 2016
Slide 1: Group Results 2015
Group Results 2015
Slide 2: 2015 Highlights
2015 Highlights Strong volumes’ expansion compared to substantially stable volumes for the industry: Loans up by 6% in the quarter (+€1.4 billion) and by 5.3% YoY (+€1.1 billion) compared to an industry’s growth of 0.1% Direct Deposits from Customers and Retail Bonds up by 5.9% QoQ (+€1.1 billion) a
Slide 3: Income Statement
Income Statement Euro, million 4Q14 3Q15 4Q15 % vs. 4Q14 % vs. 3Q15 2014 2015 % y/y Operating Income 261.1 248.2 267.8 2.5% 7.9% 1.068.3 1.127.0 5.5% Operating Income net of Trading 247.7 244.6 253.4 2.3% 3.6% 995.1 990.8 -0.4% and Performance Fees Operating Costs -167.1 -162.1 -172.0 2.9% 6.1% -654
Slide 4: Net Interest Margin (1/3)
Net Interest Margin (1/3) Quarterly Net Interest Margin After hitting a minimum in the 2Q15, Net Interest € Million Margin confirmed a QoQ growth also in 4Q15, 130 mainly thank to a strong performance on lending 120 123.6 125.6 volumes. 122.2 119.4 110 117.0 As for the customers’ spread, the continu
Slide 5: Net Interest Margin (2/3)
Net Interest Margin (2/3) Evolution of Average Loan Rate Evolution of Average Deposit Rate (Credem SpA management reporting) (Credem SpA management reporting) % % 4.00 3.79 3.79 2.50 3.33 -0.46% 3.43 3.31 3.50 3.18 -0.60% 1.96 -0.73% 2.00 3.00 2.70 -0.74% 1.68 2.51 2.50 -0.76% -0.79% 1.50 1.22 1.30
Slide 6: Net Interest Margin (3/3)
Net Interest Margin (3/3) Securities’ Portfolio Breakdown by Issuer After the disposal of the Italian (Credem SpA management reporting) sovereign bonds realized in 1Q15, 100% the portfolio has been repositioned 13% bringing the exposure to «Italy risk» 90% from 67% at the end of 2014 to the 80% 10%
Slide 7: Non Interest Income
Non Interest Income Non Interest Income: Quarterly Evolution 246.9 Performance Fees 250 Trading 200 163.1 97.1 150.8 € Million 141.7 154.1 138.9 137.0 Other 133.8 7.9 150 39.1 10.00 5 15.9 13.2 5.4 2.9 6.5 4.9 5.4 4.9 3.8 3.4 4.3 5.0 Banking Fees 4.5 49.3 100 47.9 52.5 48.9 48.6 52.2 49.5 48.4 24 7.
Slide 8: AUM and Insurance Reserves
AUM and Insurance Reserves AUM and Insurance Reserves Evolution Third Parties’ Products Breakdown by Asset Class (Group management reporting) 30,000 100% 28,056 26,866 27,129 27,081 20% 21% 24% 80% 24,617 25,000 +34% 60% 40% 45% 51% 20,923 40% 20,000 20% 39% 33% 24% 0% 1% 1% 1% 15,000 2013 2014 2015
Slide 9: Operating Costs
Operating Costs Operating Costs: Quarterly Evolution Employees/ Networks € Million Employees 200 6,200 5,993 167 164 167 176 174 162 172 6,000 5,899 157 5,740 5,763 5,800 150 54 45 55 57 49 5,544 5,519 5,604 5,609 52 48 50 5,600 5,400 100 5,200 2008 2009 2010 2011 2012 2013 2014 2015 50 113 113 109
Slide 10: Loans to Customers
Loans to Customers Loans to Customers (net of Repos with Institutional and Loans to Group’s SPVs) € Mil. 24,000 21.508 21.289 22.649 19.721 19.949 19.938 18.770 3,755 20,000 17.536 3,339 3,614 3,324 3,370 3,056 16,000 2,577 3,323 6,235 6,392 6,241 6,127 6,329 5,534 5,845 6,282 12,000 2,175 2,100 2,1
Slide 11: Loans: comparison with the Industry
Loans: comparison with the Industry Loans to Retail and Public Sectors Growth Rates Market shares on retail and corporate customers and small business (net of financial institutions) (Credem SpA management reporting) 10.0% 7.9% 8.0% 7.0% 1.5% 1.45% 1.44% 1.47% 6.0% 4.2% 5.1% 5.3% 1.4% 4.0% 2.2% 1.2%
Slide 12: Residential Mortgages: comparison with the Industry
Residential Mortgages: comparison with the Industry Residential Mortgages Inflows With stocks growing 2.5% YoY, new inflows in (Credem SpA management reporting) 2015 increased by a substantial 27% Mortgages’ market share reached a maximum since 2008. Quite remarkably, it is 50% higher in comparison
Slide 13: Deposits, Bonds and AUM
Deposits, Bonds and AUM Euro, million 2012 2013 2014 9M15 2015 Still in 2015 all main aggregates grew very Sight/ Saving well: AUM +€1.4 billion (+11.6% YoY), 13.066 13.625 15.335 15.676 16.979 Insurance Reserves +€1.1 billion (+25% Deposits YoY), Direct Deposits & Retail Bonds CD and Other Deposits
Slide 14: Retail Customers' Evolution: Comparison with the Industry
Retail Customers’ Evolution: Comparison with the Industry Number of Customers with a Current Account: Net Increase (%) 5.59% 5.85% 6.0% 5.0% 4.43% 4.53% 4.0% 3.15% 3.0% 2.0% 1.61% 1.41% 1.46% 1.21% 0.91% 1.0% 0.0% 2011 2012 2013 2014 1H15 IBA Panel* Credem Customers’ Satisfaction 90% AUM growth is i
Slide 15: Bonds issued and future maturities
Bonds issued and future maturities Bonds Issued Bonds Maturities (Credem SpA management account) (Credem SpA management account) € Million € Million 2,500 1,200 2,000 1,000 365 1,500 800 1,473 Retail Bonds 1,407 1,000 600 1,141 784 1,500 500 938 400 523 600 38 312 249 - 200 354 400 2010 2011 2012 20
Slide 16: Credit Quality
Credit Quality Gross Non Performing Loans 1000 870.5 889.8 909.7 1H15 800 € Milioni 600 9M15 428.1 438.6 451.0 400 2015 200 96.1 94.7 70.0 0 Gross Bad Loans Gross Unlikely to pay Gross Past Due % on Loans(Credem) 3.9 4.1 3.9 1.9 2.0 1.9 0.4 0.4 0.3 % on Loans (Industry) 9.6 10.0 10.4* 6.3 6.4 0.8 0.
Slide 17: Non Performing Loans' Coverage
Non Performing Loans’ Coverage Net Non Performing Loans Total Net NPls are have being fairly stable for the last 8 quarters. While NPLs ratio Euro, Million 2013 2014 9M15 2015 has being moving down from 4.0% to 3.5% Net Bad Loans 334.4 341.7 356.8 during the same period of time Unlikely to Pay 362.8
Slide 18: Cost of Risk
Cost of Risk Cost of Risk (bps) 70 70 59 55 60 60 52 51 52 50 37 39 40 47 45 30 41 39 39 37 41 20 27 31 10 - 2013 1Q14 1H14 9M14 2014 1Q15 1H15 9M15 2015 Cost of risk Cost of risk (net of "non recurrent" items) After 1Q15 remarkable non recurrent Cost of Risk: history (bps) provisioning finalized to
Slide 19: Assets & Liabilities
Assets & Liabilities Assets (Euro, Million) Within the assets, Loans grew significantly QoQ: +€1.8 billion 21,310 23,093 24,000 of which €0.4 billion were repos to institutional 18,000 (therefore the increase in 12,000 9M15 loans to the clientele was €1.4 6,492 6,301 billion QoQ) 5,191 5,502 2015 6,
Slide 20: Liquidity Ratios
Liquidity Ratios NSFR Both ratios are estimated to remain, well 130% 124% 124% above the future target thresholds set 120% 116% by the regulation, with NSFR in further 110% improvement at 124% and LCR at 144% 100% ECB eligible securities at the end of 2015 90% were €3.3 billion (circa 9% of Total As
Slide 21: Subordinated Bonds Issued
Subordinated Bonds Issued Outstanding Subordinated Bonds as at Dec 31, 2015 Since 2012 the Group has not been issuing (Banking Group) subordinated bonds to its retail customers. 350 As of today, only €60 million are partially computable as Tier 2 Capital (grandfathering) 300 As for their incidence o
Slide 22: Capital ratios evolution
Capital ratios evolution Capital Ratios on Banking Group Consolidated Capital Ratios “prudential (phased-in) perimeter” (phased-in) 2,500 2,500 11.7% 15.4% 15.2% 11.8% 14.9% 14.8% 11.1% 14.0% 2,000 11.1% 13.6% 13.5% 2,000 13.8% 1,500 1,500 1,969 1,955 1,917 2,010 1,983 1,861 1,958 1,791 1,864 1,751
Slide 23: 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