Banca Monte Dei Paschi Di Siena S.p.a. · MIL:BMPS

Banca Monte Dei Paschi Di Siena — Q1 2013 Earnings Presentation

38 slides from Banca Monte Dei Paschi Di Siena's earnings presentation, May 15, 2013

  1. Slide 1: 1Q2013 Results

    1Q2013 Results Siena, 15 May 2013

  2. Slide 2: Contents

    Contents  Key messages  1Q13 Results - Balance sheet  1Q13 Results - Profit and Loss  Business Plan progress update page 2

  3. Slide 3: Executive summary

    Executive summary  Thanks to an approach strongly focused on customer proximity, customer confidence has been restored and the difficult media environment earlier on in the year has been overcome, as evidenced by the stability of direct funding  Soundness of capital structure and liquidity profile

  4. Slide 4: Key messages on balance sheet reinforcement

    Key messages on balance sheet reinforcement Improvements in quality of capital, liquidity profile and balance sheet Key messages structure  Core Tier 1 (%)  L/D ratio (%) down 104.7 103.8 Balance sheet 11.1 8.9 4Q12 1Q13 4Q12 1Q13 P&L  Interbank position* reduced  Financial assets further reduce

  5. Slide 5: Key messages on productivity

    Key messages on productivity….. Positive signs from sales and revenue in 1Q2013 despite challenging Key messages macroeconomic conditions  Interest income breaks out of  Fees & commissions pick up its downward trend -0.5% +12.6% Balance sheet 431 597 like for like basis 383 435 € mln € mln 4Q12 1Q

  6. Slide 6: Sales proactivity increased

    Sales proactivity increased…. Significant focus on customers retention and share of wallet Customer Retention (%) Key messages  Retention: 98.4 98.5  Stable customer retention with launch of “Loyalty programme” 1Q12 1Q13  Direct Funding:  “Conto Italiano di deposito”: 70k new contracts, EUR 1.8

  7. Slide 7: Difficult media environment overcome

    ….and difficult media environment overcome Key messages Direct funding trend (€ mln) Balance sheet Direct funding outflows fully recovered P&L Jan Feb Mar From Apr to 10th May Business Plan update Montlhy flows Cumulative flows page 7

  8. Slide 8: Contents

    Contents  Key messages  1Q13 Results - Balance sheet  1Q13 Results - Profit and Loss  Business Plan progress update page 8

  9. Slide 9: Assets & Liabilities

    Assets & Liabilities Total Assets Key messages €/mln Mar-12* Dec-12** Mar-13 QoQ% YoY% Customer loans 146,628 142,015 140,510 -1.1% -4.2% Loans to banks 14,877 11,225 13,676 21.8% -8.1%  Customer loans down, Financial assets 52,341 49,163 47,732 -2.9% -8.8% continuing to be affected by Tangible and

  10. Slide 10: Direct funding

    Direct funding Deposits hold firm despite difficult media climate Direct funding by Source Key messages €/mln Mar-12* Dec-12 Mar-13 QoQ% YoY% Current accounts 58,174 56,006 52,892 -5.6% -9.1%  Direct funding substantially stable vs. Time deposits 3,502 5,802 8,324 43.5% 137.7% Dec-12 (-0.3% QoQ, +0

  11. Slide 11: Focus on the network's placing power

    Focus on the network’s placing power Q1 retail issues replaced by time deposits Retail/Corporate Funding breakdown* Key messages  The issuance programme was suspended in 1Q13 € bn 94 92 owing to the audit regarding the restatement of accounts; the issuing activity will resume in 2Q for retail and c

  12. Slide 12: Institutional funding and Interbank Exposure

    Institutional funding and Interbank Exposure Reduction of Interbank exposure; counterbalancing capacity up strongly in April Direct Funding and Net Interbank Exposure Key messages  Net interbank position down from 2012 year- 166 169 165 end following an increase in loans to banks, owing to fulfillm

  13. Slide 13: Indirect funding

    Indirect funding Indirect funding Key messages €/mln Mar-12 * Dec-12 Mar-13 QoQ% YoY%  Indirect funding was down 3.2% vs Assets under 4Q12: 91,858 69,636 66,695 -4.2% -27.4% custody Assets under  Assets under Custody: down 4.2% 45,693 44,540 43,820 -1.6% -4.1% management QoQ due to shift in Retail

  14. Slide 14: Lending

    Lending Deleveraging driven by macroeconomic environment Total Lending Key messages  Loans to customers down 2.7% YoY and €/mn Mar-12 * Dec-12 Mar-13 QoQ% YoY% 1.1% QoQ, due to slowing economic cycle Current accounts 13,817 13,099 12,626 -3.6% -8.6% (affecting credit quality and demand), and Mortga

  15. Slide 15: Asset quality overview

    Asset quality overview Difficult economic environment persists Impaired Loans Key messages (€ mln) Gross Net High-granularity loan book NPL 18,166 7,656  top 10 customers account for EUR 3.3 vs Dec. 12 +4.9% +4.9% bn (2.8% of total loans as at Mar-13 vs. Watchlist 8,262 6,539 3.3% in Mar-12) vs De

  16. Slide 16: Asset quality: Coverage

    Asset quality: Coverage Substantially stable compared to values among highest in the system Impaired Loans Coverage Key messages  NPL coverage stable at 2012 year-end -60bps levels: 57.9%  Watchlist coverage -100 bps from Dec-12; 39.7% 41.0% 40.4% the decline is mainly due to the inflow of IT Bank

  17. Slide 17: Asset quality

    Asset quality NPLs and watchlist inflow are down Gross NPL and Watchlist Inflows* Key messages NPL Watchlist** 376 271 272 241 224 266 353 272 Balance sheet 212 237 € mln 1Q12 Monthly 2Q12 Monthly 3Q12 Monthly 4Q12 Monthly 1Q13 Monthly avg avg avg avg avg Breakdown by: by Geography** (%) – Mar13 by

  18. Slide 18: Financial Assets

    Financial Assets Decline in line with Business Plan targets Securities and Derivatives Portfolio  Securities and Derivatives portfolio: EUR 38 bn Key messages (-1.1% vs Dec-12) Market Value Mar-13 QoQ% (€ mln)  HFT, L&R: down, the latter especially due to natural maturity of certain securities HFT

  19. Slide 19: RWAs and Regulatory Capital Ratios

    RWAs and Regulatory Capital Ratios RWA and Regulatory Capital Ratios Key messages €/mln  Core Tier 1 ratio, including EUR 4.1 bn in New Dec-12* Mar-13 QoQ Financial Instruments, at 11.1% (8.9% as at 31 RWA 92,828 88,596 -4.6% December 2012) Core Tier 1 8,237 9,845 19.5% Tier 1 Capital 8,841 10,448

  20. Slide 20: Focus on AFS Reserve and Core Tier

    Focus on AFS Reserve and Core Tier 1 Key messages AFS* over time vs Spread  AFS reserve at March 2013 was -EUR 2.6 bn (compared to -EUR 3.2 bn at time 600 of EBA stress test on 30/9/2011) 500  Estimated sensitivity of Banca MPS AFS Italy reserve (based on 2012 figures): 400  Credit spread sensiti

  21. Slide 21: Contents

    Contents  Key messages  1Q13 Results - Balance sheet  1Q13 Results - Profit and Loss  Business Plan progress update page 21

  22. Slide 22: P&L: 1Q2013

    P&L: 1Q2013 03/31/12 03/31/13 Change MPS Group (*) Ins. % Net interest income 882.6 597.0 (285.6) -32.4% Key messages Net fee and commission income 424.3 431.3 7.0 1.7% Income from banking activities 1,306.9 1,028.3 (278.6) -21.3% Dividends, similar income and gains (losses) on investments 10.6 27.2

  23. Slide 23: Net Interest Income

    Net Interest Income Impacted by NFI coupons Net Interest Income (YoY)  Net interest income: +37.4% QoQ and -32.4% YoY Key messages  As compared to normalised* 4Q12 (-0.5% QoQ), the following factors contributed to the result: -24.2%  Interest rate effect: +EUR 19 mln due to -32.4% like for like r

  24. Slide 24: Fee and Commission Income

    Fee and Commission Income Significant rebound, notwithstanding February, mainly driven by bancassurance Fees YoY Fees QoQ Key messages +12.6% +1.7% 424 431 413 413 424 431 383 Balance sheet € mln € mln 1Q12 * 1Q13 1Q12 * 2Q12 * 3Q12* 4Q12 * 1Q13 Fees breakdown €/mln 1Q12 4Q12 1Q13 QoQ% YoY% AuM fees

  25. Slide 25: Dividends and trading

    Dividends and trading Trading/valuation of financial assets QoQ Key messages  Net profit (loss) from trading / valuation / 255 repurchase of financial assets/liabilities totalled approximately EUR 121 mln and 182 included:  Net profit (loss) from trading amounting to 121 EUR 63.5 mln (vs. -EUR 45.

  26. Slide 26: Operating Costs

    Operating Costs Reduction ahead of Industrial Plan targets Total Costs (YoY % growth) Operating Costs QoQ Key messages -10.4% 813 826 821 832 746 -3.7% Balance sheet -8.3% € mln 2012 1Q13 1Q12 * 2Q12 * 3Q12 * 4Q12 * 1Q13 Cost/Income  Operating costs down significantly (-8.3% -232bps YoY) P&L 65.9%

  27. Slide 27: Operating costs

    Operating costs Significant containment of ALL costs components Personnel expenses QoQ Administrative expenses YoY -23.0% QoQ Like for like Key messages basis** -6.9%* -9.8%* -0.2% -21.3% -2.5% QoQ 504 526 like for like 264 255 287 302 486 basis** 238 471 470 Balance sheet € mln € mln 1Q12 *** 2Q12

  28. Slide 28: Provisioning

    Provisioning Difficult macro environment driving up cost of credit Provisions annualized (bps) Key messages -50bps 188  Within the framework of a prudential 138 provisioning policy, the cost of credit 119 Balance sheet is still high on account of the prolonged macroeconomic downturn, although impro

  29. Slide 29: Contents

    Contents  Key messages  1Q13 Results - Balance sheet  1Q13 Results - Profit and Loss  Business Plan progress update page 29

  30. Slide 30: Network rationalisation

    Network rationalisation Closure of non core branches ahead of schedule Branches Key messages  Market coverage optimisation completed, -96 2,671 by simplifying Local Market Units’ internal layout and refocusing sales +2 2,577 objectives Balance sheet  Further 96 branches closed in 1Q13; 17 speciali

  31. Slide 31: Management of personnel

    Management of personnel ca60% of reduction target already achieved Realized and Planned Exits Key messages -1,541 -5.1% 30,265 -500 28,724 -500 -435 -111 -225 Balance sheet Dec-12 Exit Feb-13 Exit 1 Mar-13 Exit 31 Mar-13 Tournover March-13 June-13 Exits funded with income support fund Planned Exits

  32. Slide 32: Developing business productivity

    Developing business productivity Key messages  Launch of new Private Banking Area, during annual meeting of 13 and 14 May  New rules defined for sales and distribution supply chain for Private customers Balance sheet  Multiple initiatives in place to relaunch asset management and related advisory

  33. Slide 33: Thank you for your attention Q&A

    Thank you for your attention Q&A page 33

  34. Slide 34: Annexes

    Annexes page 34

  35. Slide 35: P&L: quarterly trend

    P&L: quarterly trend 2012 (*) 2013 MPS Group 1st quarter 2nd quarter 3rd quarter 4th quarter 1st quarter Net interest income 882.6 788.1 724.4 434.5 597.0 Net fee and commission income 424.3 412.6 413.1 382.9 431.3 Income from banking activities 1,306.9 1,200.7 1,137.4 817.4 1,028.3 Dividends, simil

  36. Slide 36: Contacts

    Contacts Declaration of the Financial Reporting Officer Strategic Planning & Investor Pursuant to para. 2, article 154- bis of the Consolidated Law on Relations Finance, the Financial Reporting Alessandro Santoni (Head) Officer, Mr. Bernardo Mingrone, declares that the accounting Piazza Salimbeni, 3

  37. Slide 37: Disclaimer

    Disclaimer This document has been prepared by Gruppo Monte dei Paschi di Siena solely for information purposes and for use in presentations of the Group’s strategies and financials. The information contained herein has not been independently verified. No representation or warranty, express or implie

  38. Slide 38: fe DEI PASCHI

    fe DEI PASCHI I SIENA ==” BANCA DAL 1472 www.mps.it

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