Intesa Sanpaolo S.p.A. · MIL:ISP
Intesa Sanpaolo — H1 2011 Earnings Presentation
73 slides from Intesa Sanpaolo's earnings presentation, Aug 5, 2011
Slide 1: 2011 Half-Yearly Results
2011 Half-Yearly Results 5 August 2011
Slide 2: Agenda
Agenda Sound operating performance and Core Tier 1 ratio up to 1 10.2% 22 2011 Half-Yearly Consolidated Results 33 2011 Half-Yearly Divisional Results 2
Slide 3: Sound operating performance and Core Tier 1 ratio up to 10.2%
Sound operating performance and Core Tier 1 ratio up to 10.2% Growth in 1H11 profitability Operating income at €8,678m (+5.6% vs 1H10) Pre-tax income at €2,605m (+33.4% vs 1H10) 1H11 Net Income adjusted for main non-recurring items(1) at €1,291m (+6.7% vs 1H10) Further decline in Operating
Slide 4: Growth in profitability despite adverse scenario
Growth in profitability despite adverse scenario Net Income adjusted for main non-recurring items(1) 1H11 Net Income adjusted for main non- recurring items up 6.7% vs 1H10 and 15.6% (€ m) vs 2H10 +6.7% 2Q11 “Core”(2) Operating income up 2.6% vs 1Q11 and 0.7% vs 2Q10 1,291 1,210 1,117 +15.6% 1H
Slide 5: Further decline in Operating Costs after four consecutive years of reductions
Further decline in Operating Costs after four consecutive years of reductions Reduction in Operating Costs (%) 2007(1) vs 2006 2008 vs 2007(1) 2009 vs 2008 2010 vs 2009 1H11 vs 1H10 -1.1 -3.3 -4.0 -1.8 -0.2 0.2% decline in Operating costs 1H11 vs 1H10 due to the decline in Other administrative exp
Slide 6: Reduction in 1H11 Cost of Credit and in inflow of new Doubtful and Substandard Loans
Reduction in 1H11 Cost of Credit and in inflow of new Doubtful(1) and Substandard Loans(2) 1H11 gross inflow of new Substandard Loans Cost of Credit down 21.2% vs 1H10 and 8.9% vs 2H10 (bps annualised) 1H11 gross inflow of new Doubtful Loans down 3.4% vs 1H10 and 20.0% vs 2H10 Doubtful Loans t
Slide 7: Strong funding capability: medium/long-term maturities already covered
Strong funding capability: 100% of 2011 medium/long-term wholesale maturities and 83% of 2011 total medium/long-term maturities already covered in July Medium-long term maturities(1) In July €33.0bn medium/long-term placements (83% of 2011 maturities) already carried out, of (€ bn) In July, Wholes
Slide 8: High liquidity
High liquidity €47bn of eligible assets with Central Banks(1) (net of haircut) available as at 30.06.11 (€34bn as at 31.07.11) In July €15bn 3-month repo opened with ECB to optimise cost of funding ~€80bn liquid assets(2) as at 31.07.11 in line with 30.06.11 Liquid and eligible assets can be
Slide 9: High capital ratios: Core Tier 1 ratio up to 10.2%
High capital ratios: Core Tier 1 ratio up to 10.2% Core Tier 1 ratio Tier 1 ratio Total Capital ratio ps 15.1% +290bps 11.8% 12.2% +2 9 0 b p s 10.2% 8.9% 7.7% +250b 30.06.10 30.06.11 30.06.10 30.06.11 30.06.10 30.06.11 More than 200bps increase in 30.06.11 Core Tier 1 ratio vs 31.03.11, of which
Slide 10: EBA stress tests: ISP 2012 Core Tier 1 ranks among the best
EBA stress tests: ISP 2012 Core Tier 1 ranks among the best under the adverse scenario Δ CT1 2012(2) CT1 2012(2) Stress vs Stress Δ CT1 2012(1) CT1 2012(1) CT1 2010 Main peers (with CT1 2010 Stress vs Stress (with additional CT1 2010 additional measures) measures) Dexia 10.4% 10.4% 12.1% -1.7% -1.7%
Slide 11: 10% Common Equity ratio - Basel 3 new normal
10% 10% Common Common Equity Equity ratio ratio -- Basel Basel 33 “new “new normal” normal” -- from from now now on on with with headroom headroom for for dividends dividends Common Equity ratio evolution in the Business Plan period Basel 2 Basel 3 (%) (%) Minimum requirement Business Plan’s capital
Slide 12: 1H11 results are in line with our Business Plan targets
1H11 results are in line with our Business Plan targets The formula of our Business Plan Highly sustainable revenues Solid value creation for Low risk Stronger + + profile + High liquidity + capital base = all stake- holders Productivity growth and strong cost discipline 12
Slide 13: Our 2011-2013/2015 Business Plan Main indicators
Our 2011-2013/2015 Business Plan Main indicators 2010-2013 CAGR/Δpp/Δbps Operating income 2010-2015 CAGR/Δpp/Δbps +5.6%(2) 1H11 vs 1H10 (€ bn) 6.1% 5.7% 78bps 1H11 105% as at 30.06.11 9.0%(3) as at 30.06.11 19.6 21.7 16.4 Net adjustments Direct Customer Common equity ratio to loans/Loans deposits/Cu
Slide 14: Italy: recovery in the manufacturing industry driven by exports
Italy: recovery in the manufacturing industry driven by exports and government deficit correction well on track Manufacturing turnover Index General Government – Primary Balance, 2011 (Jan- (Jan-May 2011 % change at current prices) (% of GDP) 2 Germany 15.1 1 0 Italy 11.5 -1 -2 France 10.8 -3 -4 Uni
Slide 15: Agenda
Agenda Sound operating performance and Core Tier 1 ratio up to 11 10.2% 2 2011 Half-Yearly Consolidated Results 33 2011 Half-Yearly Divisional Results 15
Slide 16: Growth in profitability
Growth in profitability up 5.6% 1H11 vs 1H10 (7.5% 2Q11 vs 1Q11) Revenues up 0.4% 1H11 vs 1H10 excluding capital gains on Prada and Findomestic down 0.2% 1H11 vs 1H10 Operating Costs down 0.1% 2Q11 vs 2Q10 up in 2Q11 vs 1Q11 due to quarterly seasonal factors up 12.6% 1H11 vs 1H10 (13.3%
Slide 17: Strong growth in 1H11 Operating Margin and Pre-tax Income vs 1H10
Strong growth in 1H11 Operating Margin and Pre-tax Income vs 1H10 1H10 1H11 Δ% (€ m) Restated Net interest income 4,816 4,739 (1.6) Dividends and P/L on investments carried at equity 23 41 78.3 Net fee and commission income 2,788 2,784 (0.1) Profits (Losses) on trading 215 821 281.9 Income from insu
Slide 18: 1H11 Net Income on the rise excluding main non-recurring items
1H11 Net Income on the rise vs 1H10 excluding main non-recurring items 1H10 Net Income 1H11 Net Income (post-tax data) (post-tax data) (€ m) (€ m) Net Income 1,690 Net Income 1,402 Integration charges +43 Integration charges +16 Amortisation of acquisition cost +192 Amortisation of acquisition cost
Slide 19: Sustained increase in 2Q11 Operating Margin and Net Income vs 1Q11
Sustained increase in 2Q11 Operating Margin and Net Income vs 1Q11 1Q11 2Q11 Δ% (€ m) Restated Net interest income 2,382 2,357 (1.0) Dividends and P/L on investments carried at equity 7 34 385.7 Net fee and commission income 1,385 1,399 1.0 Profits (Losses) on trading 278 543 95.3 Income from insura
Slide 20: 2Q11 Net Income at €529m excluding main non-recurring items
2Q11 Net Income at €529m excluding main non-recurring items 1Q11 Net Income 2Q11 Net Income (post-tax data) (post-tax data) (€ m) (€ m) Net Income 661 Net Income 741 Integration charges +4 Integration charges +12 Amortisation of acquisition cost +86 Amortisation of acquisition cost +85 Hungary extra
Slide 21: ALM focused on Liquidity, Asset Quality and EVA
ALM focused on Liquidity, Asset Quality and EVA® 30.06.10 30.06.11 Δ% (€ m) +2.0% Restated average volumes Loans to Customers 372,167 372,361 +0.1 Customer Financial Assets(1) 833,294 814,741 (2.2) of which Direct Customer Deposits 436,619 414,450 (5.1) of which Indirect Customer Deposits 422,967 42
Slide 22: Increase in Net Interest Income excluding negative impact of hedging reduction
Increase in Net Interest Income excluding the negative impact of hedging reduction Quarterly Analysis Yearly Analysis (€ m; %) Euribor 1M (€ m; %) Euribor 1M 4,816 -1.6% 4,739 2,384 2,432 2,440 2,395 2,382 2,357 1.05 1.22 0.87 0.62 0.81 0.43 0.43 0.43 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 1 t r i m. 1 0 1 t
Slide 23: Increase in Net Interest Income excluding the impact of hedging reduction
Increase in Net Interest Income excluding the impact of hedging reduction Δ 2Q11 vs 1Q11 Δ 1H11 vs 1H10 (€ m) (€ m) 1Q11 Net Interest Income 2,382 1H10 Net Interest Income 4,816 Operating impact (customers) +73 Operating impact (customers) +200 of which: of which: - Volumes +24 - Volumes (11) - Spre
Slide 24: Increase in 2Q11 Net Fee and Commission Income vs 1Q11
Increase in 2Q11 Net Fee and Commission Income vs 1Q11 Quarterly Analysis Yearly Analysis (€ m) (€ m) 2,788 -0.1% 2,784 1,394 1,394 1,506 1,385 1,399 1,318 1H10 1H11 1Q10 2 Q10 3 Q 10 4 Q 10 1Q11 2 Q11 1.0% increase in 2Q11 vs 1Q11 Net fee and commission income up 1.7% excluding the impact of th
Slide 25: €2.6bn net inflows in AuM in 1H11 and improved Asset Mix
€2.6bn net inflows in AuM(1) in 1H11 and improved Asset Mix Mutual Funds Asset Mix Bond 30.06.10 30.06.11 Bond 46.3% 45.9% €105bn €103bn Equity Equity 16.3% 17.5% 26.9% Flexible Monetary 30.8% Monetary Flexible 26.8% 4.9% 23.2% 6.7% Balanced Balanced 5.7% 6.6% In 1H11 €1.6bn net inflows in total C
Slide 26: Strong growth in 1H11 Profits on Trading
Strong growth in 1H11 Profits on Trading while maintaining a low risk profile Quarterly Analysis Yearly Analysis (€ m) (€ m) 821 543 % .9 81 278 +2 218 121 215 126 (3) 1Q10 2 Q10 3 Q10 4 Q10 1Q11 2 Q11 1H10 1H11 2Q11, the strongest quarter since the merger Strong increase vs 1H10 also when exclu
Slide 27: Trading profits: positive contribution from all activities
Trading profits: positive contribution from all activities 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 (€ m) Total 218 (3) 126 121 278 543 of which: Customers 85 85 90 99 109 81 Capital markets & Financial assets AFS 105 16 1 48 22 441** Proprietary Trading and Treasury 2 (114)* 8 (57)* 120 11 (excluding Structur
Slide 28: Strong increase in 2Q11 Income from Insurance Business vs 1Q11
Strong increase in 2Q11 Income from Insurance Business vs 1Q11 Quarterly Analysis Yearly Analysis (€ m) (€ m) 355 -19.7% 204 285 173 165 151 126 120 1Q10 2 Q10 3 Q10 4 Q10 1Q11 2 Q11 1H10 1H11 Strong increase in 2Q11 vs 1Q11 (+37.5%) Decline in 1H11 vs 1H10 mainly due to capital gains on sales o
Slide 29: Creation of a national player in Bancassurance
Creation of a national player in Bancassurance Technical reserves Technical reserves Technical reserves (€ bn) 30 (€ bn) (€ bn) 4 30.06.11 85 30.06.11 69 30.06.11(1) 2013 Technical reserves Technical reserves €26m of cost synergies 27 Product range simplification (€ bn) (€ bn) Italian market l
Slide 30: Reduction in Operating Costs confirmed
Reduction in Operating Costs confirmed Quarterly Analysis Yearly Analysis Operating Costs Personnel Expenses Operating Costs Personnel Expenses (€ m) (€ m) (€ m) (€ m) 2,230 2,277 2,237 2,479 2,223 2,274 4,507 -0.2% 4,497 1,356 1,353 1,351 1,423 1,360 1,364 2,709 +0.6% 2,724 1Q10 2 Q10 3 Q10 4 Q10 1
Slide 31: 1H11 annualised Cost of credit down to 78bps
1H11 annualised Cost of credit down to 78bps Quarterly Analysis Yearly Analysis Net Provisions for risks and charges Net Provisions for risks and charges (€ m) (€ m) 184 -57 .6% 98 144 78 86 65 30 13 1Q 10 2 Q 10 3 Q 10 4 Q 10 1Q 11 2 Q 11 1H10 1H11 Net Adjustments to Loans Net Adjustments to Loans
Slide 32: Reduction in stock of Substandard and Past Due Loans in 1H11
Reduction in stock of Substandard and Past Due Loans in 1H11 Net Past Due Net Substandard Loans (€ m) -1.0% (€ m) -6.6% -7.9% -20.6% 8,898 8,806 8,806 vs vs 1,503 30.06.10 30.06.10 1,176 1,194 31.12.10 31.03.11 30.06.11 31.12.10 31.03.11 30.06.11 Gross Non-performing Loans Net Non-performing Loans (
Slide 33: Doubtful Loans coverage more than adequate
Doubtful Loans(1) coverage more than adequate and solid Performing Loans reserve Doubtful Loans(1) coverage as at 30.06.11 126% 64% (2) Specific Total Doubtful Loans(1) total coverage (including collateral and guarantees) more than adequate at 126% Repayments from Doubtful Loans(1) structurally
Slide 34: 1H11 inflow of new Doubtful and Substandard Loans lower
1H11 inflow of new Doubtful Loans and Substandard Loans lower than in 1H10 and 2H10 New Substandard Loan Gross Flow New Doubtful Loan Gross Flow Group Group (€ bn) (€ bn) BdT 1Q10 1.6 0.5 0.6 2.6 1Q10 0.8 0.3 0.2 0.2 1.5 C&IB 2Q10 1.4 0.5 0.6 0.1 2.6 BdT 2Q10 0.9 0.2 0.3 1.4 Int. Sub. Banks C&IB \ 3
Slide 35: Well-diversified portfolio of Loans to Customers
Well-diversified portfolio of Loans to Customers Breakdown by business area Breakdown by economic business sectors (Data as at 30.06.11) Industrial credit, 31.03.11 30.06.11 ReposLarge Corporate Leasing, Factoring 9% Loans of the Italian banks and companies of the Group 1% Mid corporate Households 2
Slide 36: Exposure to sovereign risks by Country
Exposure to sovereign risks(1) by Country (€ m) DEBT SECURITIES AFS LOANS L&R AFS HTM CFV (2) HFT Total Reserve(3) EU Countries 8,358 50,419 2,084 315 14,733 75,909 -950 23,040 Austria 80 2 66 148 Belgium 90 14 104 -0 Overall Overall exposure exposure to to Bulgaria Cyprus 19 1 1 19 -0 Greece, I
Slide 37: Exposure to Greek Government Bonds as at 30.06.11
Exposure to Greek Government Bonds as at 30.06.11 AFS Book Value(1) Impairment (€ m) Reserve(2) Pertaining to L&R(3) AFS HFT Total Total the Group(4) Maturity by 2020 33 55 11 99 (48) (25) - Maturity after 2020 193 262 5 460 - - (227) Total 226 317 16 559 (48) (25) (227) Impairment on bonds with m
Slide 38: Agenda
Agenda Sound operating performance and Core Tier 1 ratio up to 11 10.2% 22 2011 Half-Yearly Consolidated Results 3 2011 Half-Yearly Divisional Results 38
Slide 39: Divisional Financial Highlights
Divisional Financial Highlights Corporate & International Corporate Banca dei Eurizon Public Banca Investment Subsidiary Centre / Total Territori Capital Finance Fideuram (1) (Figures as at 30.06.11) Banking Banks Others Operating Income (€ m) 4,759 136 2,051 196 1,188 400 (52) 8,678 Operating Margi
Slide 40: Banca dei Territori: decrease in 1H11 Net Adjustments to Loans and Operating Costs
Banca dei Territori: decrease in 1H11 Net Adjustments to Loans and Operating Costs vs 1H10 1HQ10 1H11 Δ% Restated ~31,000 ~31,000 newnew customers customers on on aa net net (€ m) basis basis and and +€0.7bn +€0.7bn Customer Customer Net interest income 2,957 2,811 (4.9) Financial Financial Asse
Slide 41: Eurizon Capital: increase in 1H11 Net Income vs 1H10
Eurizon Capital: increase in 1H11 Net Income vs 1H10 1H10 1H11 Δ% (€ m) Restated Leading Leading asset asset manager manager in in Italy Italy with with Net interest income 0 0 n.m. €139.5bn €139.5bn ofof AuM AuM (+2.3% (+2.3% vs vs Dividends and P/L on investments carried at equity 8 7 (12.5) 3
Slide 42: Corporate and Investment Banking: strong growth in 1H11
Corporate and Investment Banking: strong growth in 1H11 Operating Margin and Net Income vs 1H10 1H10 1H11 Δ% Restated (€ m) NII NII up up due due to to the the increase increase in in Net interest income 963 972 0.9 average average Loans Loans to to customers customers Dividends and P/L on inves
Slide 43: Banca IMI: significant contribution to 1H11 Group results
Banca IMI: significant contribution to 1H11 Group results while maintaining a low risk profile of which: Capital Markets (€ m) 111 24 60 Banca IMI Operating Income(1) 54 403 155 (€ m) Fixed Credits Equity Brokerage Finance and Capital Income Capital Markets 133 Management 68 604 of which: Investment
Slide 44: Public Finance: strong growth in 1H11 Operating Margin and Net Income
Public Finance: strong growth in 1H11 Operating Margin and Net Income vs 1H10 1H10 1H11 Δ% (€ m) Restated Sustained Sustained increase increase in in NII NII Net interest income 142 155 9.2 (+9.2%) (+9.2%) due to the widening of due to the widening of Dividends and P/L on investments carried at
Slide 45: International Subsidiary Banks: double-digit growth in 1H11 Operating Margin
International Subsidiary Banks: double-digit growth in 1H11 Operating Margin vs 1H10 1H10 1H11 Δ% (€ m) Restated 5.6% 5.6% revenue revenue increase increase due due toto Net interest income 809 872 7.8 growth growth in in NII NII and and in in Net Net fee fee Dividends and P/L on investments car
Slide 46: Banca Fideuram: strong increase in 1H11 Net Income vs 1H10
Banca Fideuram(1): strong increase in 1H11 Net Income vs 1H10 1H10 1H11 Δ% (€ m) Restated Market Market leader leader with with €73.7bn €73.7bn of of Net interest income 57 63 10.5 Customer Customer Financial Financial Assets Assets (of (of Dividends and P/L on investments carried at equity 0 0
Slide 47: 1H11 results confirm ISP's profitability and solidity
1H11 results confirm ISP’s profitability and position as one of the most solid international banking Groups Sound performance in 1H11 driven by Growth in profitability High liquidity Reduction in Cost of credit Core Tier 1 ratio up to 10.2% The result of the recent EBA stress test confir
Slide 48: Appendix
Appendix INTESA || SNNPAOLO
Slide 49: Methodological note (1/3)
Methodological note (1/3) For comparison purposes, 2010 P&L, 2010 Balance Sheet and 1Q11 results have been restated to take into account the sale of the 96 branches to Crédit Agricole With reference to the divisional figures, 2010 data has been restated to take into account the attribution of
Slide 50: Methodological note (2/3)
Methodological note (2/3) 2010 main non-recurring items include: 1Q10: 1) €23m integration charges and related tax savings resulting in net integration charges of €16m, 2) €92m charges from purchase cost allocation, net of tax and 3) €86m of fiscal benefit from the release of deferred taxes relati
Slide 51: Methodological note (3/3)
Methodological note (3/3) 2011 main non-recurring items include: 1Q11: 1) €6m integration charges and related tax savings resulting in net integration charges of €4m, 2) €86m charges from purchase cost allocation, net of tax and 3) €11m of extraordinary tax relating to the Group’s subsidiary in Hu
Slide 52: Quarterly P&L Analysis
Quarterly P&L Analysis 2Q10 3Q10 4Q10 1Q11 2Q11 (€ m) Restated Net interest income 2,432 2,440 2,395 2,382 2,357 Dividends and P/L on investments carried at equity 26 (5) 11 7 34 Net fee and commission income 1,394 1,318 1,506 1,385 1,399 Profits (Losses) on trading (3) 126 121 278 543 Income from i
Slide 53: Quarterly development of Net Fee and Commission Income
Quarterly development of Net Fee and Commission Income Net Fee and Commission Income (€ m) 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Guarantees given 85 81 81 94 95 88 Collection and payment services 81 84 83 91 76 89 Current accounts 221 221 225 222 210 214 Credit and debit cards 108 110 117 118 107 117 Com m
Slide 54: Banca dei Territori: slight increase in 2Q11 Revenues vs 1Q11
Banca dei Territori: slight increase in 2Q11 Revenues vs 1Q11 1Q11 2Q11 Δ% Restated +€0.6bn +€0.6bn Customer Customer Financial Financial (€ m) Assets Assets net inflows net inflows in in 2Q11 2Q11 duedue Net interest income 1,404 1,407 0.3 to to AuM AuM (+€0.4bn) (+€0.4bn) and and Assets Assets
Slide 55: Eurizon Capital: 2Q11 market share and Net income on the rise
Eurizon Capital: 2Q11 market share and Net income on the rise vs 1Q11 1Q11 2Q11 Δ% (€ m) Restated Net interest income 0 0 13.9 Leading Leading asset asset manager manager in in Italy Italy Dividends and P/L on investments carried at equity 4 3 (21.8) with with €139.5bn €139.5bn of of AuM AuM Net
Slide 56: Corporate and Investment Banking: strong increase in 2Q11 Profitability
Corporate and Investment Banking: strong increase in 2Q11 Profitability vs 1Q11 1Q11 2Q11 Δ% (€ m) Restated Increase Increase in in average average Loans Loans to to Net interest income 490 482 (1.7) Customers vs 1Q11 (+0.2%) Customers vs 1Q11 (+0.2%) Dividends and P/L on investments carried at
Slide 57: Public Finance: 2Q11 Net Income at €27m
Public Finance: 2Q11 Net Income at €27m 1Q11 2Q11 Δ% (€ m) Restated Net interest income 86 70 (18.4) €0.8bn €0.8bn of of new new loans loans in in 2Q11 2Q11 Dividends and P/L on investments carried at equity 0 0 n.m. Net fee and commission income 15 12 (18.6) 2Q11 2Q11 NII NII down down vs v
Slide 58: International Subsidiary Banks: strong increase in 2Q11 Net Income
International Subsidiary Banks: strong increase in 2Q11 Net Income vs 1Q11 1Q11 2Q11 Δ% Restated (€ m) Increase Increase in in Operating Operating margin margin Net interest income 436 435 (0.3) (+0.9%) (+0.9%) attributable attributable to to growth growth Dividends and P/L on investments carrie
Slide 59: Banca Fideuram: 2Q11 Operating Margin and Net Income on the rise
Banca Fideuram(1): 2Q11 Operating Margin and Net Income on the rise vs 1Q11 1Q11 2Q11 Δ% Restated Market Market leader leader with with €73.7bn €73.7bn of of (€ m) Customer Financial Assets Customer Financial Assets Net interest income 31 32 3.8 (of (of which which €54.8bn €54.8bn AuM), AuM), 4,
Slide 60: Non-performing Loans/Loans per Business Unit
Non-performing Loans/Loans per Business Unit Banca dei Territori Division Corporate and Investment Banking Division (%) 12.3 Past Due 12.5 (%) 0 .4 0 .4 Restructured 0 .1 0 .2 Substandard(1) 3 .8 3 .7 Doubtful(2) 7.4 6.6 6.7 6.7 0 .2 0 .4 0 .4 0 .3 5.2 5.5 0 .1 0 .2 2 .8 0 .2 2 .7 0 .3 3 .2 8 .2 3 .
Slide 61: Focus on strength in the domestic market
Focus on strength in the domestic market 1H11 Operating Income Leadership in Italy Breakdown by business area(1) (data as at 30.06.11) Public Finance Ranking Market share Corporate and 2.2% Investment 1 Loans 15.3% Banking Division 23.5% 1 Deposits 16.2% Banca 1 Leasing 18.4% Fideuram 4.6% Banca dei
Slide 62: International Subsidiary Banks: figures by Country 1H11 vs 1H10
International Subsidiary Banks: figures by Country 1H11 vs 1H10 Operating Income Operating Costs (€ m) ∆% (€ m) ∆% +17.4 +9.2 -8.0 +14.0 -4.8 -1.3 +4.3 +33.5 -8.4 -0.3 +14.3 +0.5 +2.6 -8.4 +3.5 +13.9 +11.1 +6.0 -4.6 -14.1 +1.7 -9.6 265 253 2 19 118 10 8 96 12 8 10 2 57 74 50 49 50 25 23 18 29 23 19
Slide 63: 7.8% of loans in CEE, very well diversified over 10 Countries
7.8% of loans in CEE, very well diversified over 10 Countries (Figures as at 30.06.11) Total Total CEE Hungary Slovakia Slovenia Croatia Serbia Bosnia Albania Romania Russian F. Ukraine Egypt Oper. Income (€ m) 219 253 50 265 128 16 19 23 74 29 1,077 102 1,180 % of Group total 2.5% 2.9% 0.6% 3.1% 1.
Slide 64: Adequate coverage of Non-performing Loans in CEE
Adequate coverage of Non-performing Loans in CEE (Figures as at 30.06.11) Total Total CEE Hungary Slovakia Slovenia Croatia Serbia Bosnia Albania Romania Russian F. Ukraine Egypt Performing loans (€ bn) 6.2 6.7 1.8 6.4 2.4 0.5 0.3 0.7 1.7 0.3 26.8 2.0 28.8 of which: Retail local currency 5% 54% 44%
Slide 65: Estimated impact on Core Tier 1 ratio from fully phased-in Basel 3
Estimated impact on Core Tier 1 ratio from fully phased-in Basel 3 (2019 parameters on 30.06.11 financial statements) As at 30.06.2011, considering the acquisition of Banca Monte Parma and the expected DTA absorption before ~€ bn ~bps fully phased-in Basel 3 Estimated Estimated impact impact DTA
Slide 66: Total exposure by Country: international exposure at 24% of total
Total exposure(1) by Country: international exposure at 24% of total (€ m) DEBT SECURITIES LOANS (2) L&R AFS HTM CFV HFT Total EU Countries 19,761 62,181 2,471 561 21,383 106,357 349,727 Austria 140 111 13 73 337 487 Belgium 182 265 448 560 Bulgaria 1 1 46 Cyprus 19 19 157 Czech Republic 77 42 0 119
Slide 67: Exposure to banks by Country
Exposure to banks by Country(1) (€ m) DEBT SECURITIES (2) LOANS L&R AFS HTM CFV HFT Total EU Countries 5,800 8,176 267 191 4,624 19,057 19,979 Austria 131 18 11 5 165 222 Belgium 56 251 307 194 Bulgaria -0 Cyprus -0 Czech Republic 50 50 2 Denmark 200 39 107 346 123 Estonia -0 Finland 12 0 12 7 Franc
Slide 68: Exposure to other customers by Country
Exposure to other customers by Country(1) (€ m) DEBT SECURITIES (2) LOANS L&R AFS HTM CFV HFT Total EU Countries 5,604 3,587 120 54 2,025 11,390 306,709 Austria 9 12 2 23 265 Belgium 37 37 366 Bulgaria 46 Cyprus 157 Czech Republic 27 16 42 440 Denmark 2 13 16 65 Estonia 2 Finland 58 1 59 22 France 1
Slide 69: Structured credit products portfolio: summary
Structured credit products portfolio: summary 31.12.10 30.06.11 30.06.11 Income Net exposure(1) statement(2) (€ m) of which of which Profits (losses) on trading Total Total (€ m) trading trading US Subprime 27 24 25 22 4 “Contagion” Contagion” area 165 76 128 62 0 - Multisector CDOs 12(3) -3(3) -4(3
Slide 70: High quality Structured credit products portfolio
High quality Structured credit products portfolio Products Geographical area ASSET CDO BACKED US non 18% 13% residential Only 7% 20% US residential US residential 7% Asia CLO RMBS 1% 31% 32% Emerging 3% Europe 69% CMBS 6% 78% Investment Grade 46% Vintage ≤ 2005 Rating % Vintage % AAA 47% Before
Slide 71: Structured credit products portfolio: Loans as at 30.06.11
Structured credit products portfolio: Loans as at 30.06.11 Effect from reclassification As at 30.06.11 Nominal Risk exposure(1) Risk exposure Fair Cumulated on on (€ m) value value the income Shareholders' statement Equity Reclassified securities: -from financial assets available for sale 159 85 68
Slide 72: Leveraged Finance: contained, high quality exposure
Leveraged Finance(1): contained, high quality exposure No. Transactions Amount(2) 116 €4,388m Breakdown Subordinated To be syndicated(3) Abroad Services Telecommunication 1% 11% 29% 14% 14% Financial 4% Italy Industrial Senior Final Take 71% 68% 99% 89% (1) Group financing to parties controlled by p
Slide 73: Disclaimer
Disclaimer “The manager responsible for preparing the company’s financial reports, Ernesto Riva, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the document results, books and acco