Banca Monte Dei Paschi Di Siena S.p.a. · MIL:BMPS
Banca Monte Dei Paschi Di Siena — 9M 2024 Earnings Presentation
26 slides from Banca Monte Dei Paschi Di Siena's earnings presentation, Nov 8, 2024
Slide 1: 3Q-24 & 9M-24 Results
A Clear and Simple Commercial Bank, Revolving Around Customers, Combining Technology With Human Touch 3Q-24 & 9M-24 Results Siena, 8th November 2024
Slide 2: Disclaimer
Disclaimer THIS DOCUMENT IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THIS DOCUMENT, WHICH WAS PREPARED BY BANCA MONTE DEI PASCHI DI SIENA S.P.A. (THE “COMPANY” OR “BMPS” AND TOGETHER WITH ITS CONSOLIDATED SUBSIDIARIES, THE “GROUP”), IS PRELIMINARY IN NATURE AND MAY BE SUBJECT TO UPDATING,
Slide 3: 3Q-24 & 9M-24 Executive Summary
3Q-24 & 9M-24 Executive Summary ▪ 9M-24 net profit at €1,566m (+68.6% y/y), supported by 3Q-24 net profit at €407m, up +5.7% q/q on comparable basis ▪ 9M-24 gross operating profit above €1.6bn, up +13.7% y/y, driven by revenues growth +8.3% y/y and effective cost management leading to +2.5% y/y desp
Slide 4: Net Profit
Net Profit Quarterly Evolution (€m) Yearly Evolution (€m) +31.4% +68.6% 1,566 470 827 929 457 407 +18.9% 310 1,096 +5.7% 922 307 370 390 3Q-23 2Q-24 3Q-24 9M-23 9M-24 positive net tax • 9M-24 net profit at €1,566m, up +68.6% y/y, including €470m of positive net tax • 3Q-24 net profit at €407m, up +5
Slide 5: Net Operating Profit
Net Operating Profit Quarterly Evolution (€m) Yearly Evolution (€m) +9.2% +17.6% -2.3% 1,339 1,139 453 442 405 3Q-23 2Q-24 3Q-24 9M-23 9M-24 • 9M-24 net operating profit at €1,339m, up +17.6% y/y, thanks to increased revenues, effective costs control and cost of risk in line with the guidance • 3Q-2
Slide 6: Gross Operating Profit
Gross Operating Profit Quarterly Evolution Operating Income (€m) Gross Operating Profit (€m) +5.6% -1.1% +5.9% 953 1,018 1,007 -2.8% 922 956 952 509 555 539 3Q-23 2Q-24 3Q-24 Core revenues (NII + Fees) Other financial revenues Operating Costs (€m) +5.3% +1.0% 3Q-23 2Q-24 3Q-24 444 463 467 Cost/Incom
Slide 7: Gross Operating Profit
Gross Operating Profit Yearly Evolution Operating Income (€m) Gross Operating Profit (€m) +8.3% +13.7% 2,804 3,037 2,674 2,860 1,645 1,446 9M-23 9M-24 Core revenues (NII + Fees) Other financial revenues Operating Costs (€m) +2.5% 1,358 1,392 9M-23 9M-24 Cost/Income 48% 46% 9M-23 9M-24 • 9M-24 gross
Slide 8: Net Interest Income
Net Interest Income Quarterly Evolution (€m) Yearly Evolution (€m) -1.6% +4.7% +1.8% 1,768 605 585 596 1,688 3Q-23 2Q-24 3Q-24 9M-23 9M-24 Lending rate 4.39% 4.41% 4.29% 4.00% 4.39% Funding rate 0.78% 1.24% 1.14% 0.58% 1.18% Spread 3.61% 3.18% 3.16% 3.41% 3.21% -2bps -20bps -45bps • 9M-24 NII at €1,
Slide 9: Net Customer Loans
Net Customer Loans Net Loans (1) (€bn) -2.1% -1.9% 62.8 63.1 62.6 61.5 30.6 31.0 30.6 29.5 32.1 32.1 32.1 31.9 6.1 6.2 6.2 6.0 Dec-23 Mar-24 Jun-24 Sep-24 Small business & medium enterprises Retail Large Corporate & Other • Net customer loans volumes dynamics reflecting market trend Notes: (1) Loans
Slide 10: Total Commercial Savings
Total Commercial Savings Total Commercial Savings(1) (€bn) +3.7% -0.4% 161.7 164.4 163.7 Q/Q vs Dec-23 157.9 56.6 57.8 58.3 59.2 +1.5% +4.5% 29.9 32.1 31.8 32.4 -1.5% +3.2% 71.4 71.8 74.4 72.2 Dec-23 Mar-24 Jun-24 Sep-24 Deposits AuC AuM • Total commercial savings increased by €+5.8bn since Dec-23 a
Slide 11: Italian Govies Portfolio
Italian Govies Portfolio Italian Govies Portfolio Breakdown(1) (€bn) Italian Govies Portfolio at FVTOCI 10.7 Dec-23 Mar-24 Jun-24 Sep-24 10.2 10.2 8.9 1.2 1.5 1.0 1.6 1.5 1.4 FVTOCI Duration 1.6 ~2.8 ~2.6 ~2.5 ~2.3 (years) FVTOCI Credit 7.1 7.7 8.0 7.8 -0.5 -0.5 -0.4 -0.4 spread sensitivity (€m) Dec
Slide 12: Net Fee and Commission Income
Net Fee and Commission Income Quarterly Evolution Commercial Banking Fees (€m) Total Fees (€m) +7.0% +12.5% -4.7% -3.9% 171 192 183 370 356 317 3Q-23 2Q-24 3Q-24 Wealth Management and Advisory Fees (€m) +18.9% -3.0% 179 173 146 3Q-23 2Q-24 3Q-24 3Q-23 2Q-24 3Q-24 • +12.5% y/y total fees growth drive
Slide 13: Net Fee and Commission Income
Net Fee and Commission Income Yearly Evolution Commercial Banking Fees(1) (€m) Total Fees (€m) +3.2% +10.7% 539 556 1,092 987 9M-23 9M-24 Wealth Management and Advisory Fees (1) (€m) +19.6% 536 448 9M-23 9M-24 9M-23 9M-24 • 9M-24 total fees at €1,092m, up +10.7% y/y, thanks to almost +20% y/y growth
Slide 14: Operating Costs
Operating Costs Quarterly Evolution HR Costs (€m) Operating Costs (€m) +8.9% +1.9% 284 304 310 +5.3% +1.0% 463 467 3Q-23 2Q-24 3Q-24 444 Non-HR Costs (€m) -1.1% -0.9% 160 159 158 3Q-23 2Q-24 3Q-24 3Q-23 2Q-24 3Q-24 • 3Q-24 operating costs up +1.0% q/q growth mainly due to step-up in salaries outline
Slide 15: Operating Costs
Operating Costs Yearly Evolution HR Costs (€m) Operating Costs (€m) +6.9% +2.5% 859 918 1,358 1,392 9M-23 9M-24 Non-HR Costs (€m) -4.9% 499 475 9M-23 9M-24 9M-23 9M-24 • 9M-24 operating costs at €1,392m (+2.5% y/y), with ongoing optimization of non-HR costs (-4.9% y/y) partially offsetting the impac
Slide 16: Gross NPE Stock
Gross NPE Stock Gross NPE Stock (€bn) Breakdown by Category (€bn) 3.6 3.7 3.9 3.6 3.5 2.2 2.2 2.3 Bad loans/ 2.1 2.3 Total NPEs 1.4 1.5 1.5 1.6 1.3 36% 3.6 3.7 3.9 3.6 3.5 Dec-23 Mar-24 Jun-24 Sep-24 Sep-24 Bad loan UTP + Past due net of disposals Breakdown by type of guarantee (€bn) (2) Dec-23 Mar-
Slide 17: Coverage and Cost of Risk
Coverage and Cost of Risk NPE Coverage Breakdown Cost of Risk (bps) 68.1% 67.5% 68.4% 67.6% 37.6% 38.1% 37.7% 37.7% 21.7% 23.1% 22.8% 22.8% 57 54 50 50 9M-24 CoR Bad loan Coverage UTP Coverage Past Due Coverage 52bps Dec-23 Jun-24 Sep-24 Sep-24 net of disposals Total NPE Coverage 49.1% 49.8% 49.9% 4
Slide 18: Funding & Liquidity
Funding & Liquidity Reduced Reliance on ECB funding (ECB Funding/Total Liabilities) LCR Evolution 163% 163% 164% 165% 11% 9% 9% 7% Dec-23 Mar-24 Jun-24 Sep-24 NSFR Evolution 134% 133% 130% 129% Dec-23 Mar-24 Jun-24 Sep-24 Dec-23 Mar-24 Jun-24 Sep-24 • Solid liquidity position, with unencumbered coun
Slide 19: Capital
Capital CET1 Ratio Fully Loaded(1) Fully Loaded Capital Ratios(1) SREP 18.1% 18.2% 18.1% 18.3% Dec-23 Mar-24 Jun-24 Sep-24 2024 CET1 ratio (%) 18.1% 18.2% 18.1% 18.3% 8.57% 8.6% Tier 1 ratio (%) 18.1% 18.2% 18.1% 18.3% 10.58% Total capital Dec-23 Mar-24 Jun-24 Sep-24 SREP ratio (%) 21.6% 21.6% 21.4%
Slide 20: Conclusions
Conclusions ▪ €1.6bn net profit after 9 months, up by +68.6% y/y, confirming sustainability of results ▪ Gross operating profit up +13.7% y/y, with boosted WM fees +19.6% y/y driving revenues increase +8.3% y/y ▪ Healthy growth of total commercial savings, up by €5.8bn since the beginning of the ye
Slide 21: Appendix – Supporting Materials of 3Q-24 & 9M-24 Results
Appendix – Supporting Materials of 3Q-24 & 9M-24 Results 21
Slide 22: Focus on DTAs
Focus on DTAs On and Off Balance Sheet DTAs (€bn) Dec-23 Mar-24 Jun-24 Sep-24 Convertible DTAs 0.5 0.5 0.4 0.4 ▪ Stock of DTAs not recorded in Balance Sheet at DTAs on Tax loss carryforwards 0.7 0.8 1.3 1.4 €1.7bn, entirely composed by DTAs on tax loss carryforwards Other non-convertible DTAs 0.6 0.
Slide 23: Extraordinary Litigations and Extrajudicial Claims
Extraordinary Litigations and Extrajudicial Claims Gross Petitum(1) (€bn) Dec-23 Mar-24 Jun-24 Sep-24 ▪ Extraordinary litigations and extrajudicial claims stable since Alken civil December 2023 litigation (2nd degree positive) 0.45 0.45 0.45 0.45 ▪ A positive trend of civil sentences on disclosure o
Slide 24: Reclassified Income Statement
Reclassified Income Statement 3Q-24/ 3Q-24/ 9M-24/ (€m) 3Q-24 2Q-24 3Q-23 9M-24 9M-23 2Q-24 (%) 3Q-23 (%) 9M-23 (%) Net Interest Income 596 585 605 1,768 1,688 +1.8% -1.6% +4.7% Net fees and commission income 356 370 317 1,092 987 -3.9% +12.5% +10.7% Core Revenues 952 956 922 2,860 2,674 -0.4% +3.3%
Slide 25: Balance Sheet
Balance Sheet Total Assets(1) (€m) Sep-23 Dec-23 Jun-24 Sep-24 QoQ% YoY% Loans to Central banks 523 527 566 589 4.0% 12.7% Loans to banks 2,270 2,582 2,671 2,265 -15.2% -0.2% Loans to customers 77,982 76,816 77,975 76,649 -1.7% -1.7% Securities assets 18,323 17,277 18,399 17,801 -3.3% -2.9% Tangible
Slide 26: Lending & Direct Funding
Lending & Direct Funding Total Lending (€m) Sep-23 Dec-23 Jun-24 Sep-24 QoQ% YoY% Current accounts 2,766 2,756 2,634 2,884 9.5% 4.3% Medium-long term loans 53,139 51,838 51,579 50,400 -2.3% -5.2% Other forms of lending 14,265 14,219 14,659 14,209 -3.1% -0.4% Reverse repurchase agreements 6,051 6,230
Banca Monte dei Paschi di Siena — 9M 2024 Earnings Presentation on 6ix