Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca — H1 FY2017 Earnings Presentation
50 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, Feb 8, 2017
Slide 1: Mediobanca 6M results as at 31 December 2016
Mediobanca 6M results as at 31 December 2016 Milan, 8 February 2017
Slide 2: Agenda
Agenda 1. Group results 2. Divisional results Annexes 1. Quarterly segmental reporting tables
Slide 3: Net profit up 30% to €418m, ROTE 10%
Mediobanca: net profit up 30% to €418m, ROTE 10% 6M results as at Dec 2016 - MB Group Section 1 Highest-ever 6m revenues with growing NII and fees, the former driven by consumer banking, the latter by wealth management Sharp reduction in cost of risk, already at BP19 target, coupled with lower NPLs
Slide 4: 1H17 results at a glance
IH17 results at a glance 6M results as at Dec 2016 - MB Group Section 1 Revenues GOP Net profit ROAC1 +6% +14% +30% ROTE 10% Mediobanca 425 321 418 8% 8% 1,016 1,072 372 Group 7% ROTE adj. Dec.15 Dec.16 Dec.15 Dec.16 Dec.15 Dec.16 Dec.15 Dec.16 +3% +15% +19% 11% 9% Corporate & 314 193 Investment Ban
Slide 5: ROAC up in all divisions
ROAC up in all divisions Divisional takeaways CIB Consumer Banking Net profit up 19% to €126m – ROAC1 11% Net profit up 75% to €123m – ROAC1 24% Revenues up 3%, NII stabilized, costs flat Long-standing NII growth continued (up 13%) CoR down to 12bps, NPLs coverage up to 51% Growth leveraging a 30% c
Slide 6: Last 3M key takeaways
Last 3M key takeaways 6M results as at Dec 2016 - MB Group Section 1 NII up 2% Fees up 32% with growth in all divisions driven by all divisions NII up 2% (to €321m) driven by all divisions Fee up 32% (to €135m) driven by all divisions, especially WM CIB up 2% to €78m CIB up 46% to €63m Consumer up 1
Slide 7: Highest-ever revenues and GOP
Highest-ever revenues and gop* 6M results as at Dec 2016 - MB Group Section 1 Total revenues (€m, 6m) Loan loss provisions (€m, 6m) GOP after LLPs (€m, 6m) 3Y CAGR : +27% 1,072 425 1,014 1,016 302 301 372 321 875 224 184 NII+ 203 Fees 872 NII+ Fees 727 Dec.13 Dec.14 Dec.15 Dec.16 Dec.13 Dec.14 Dec.1
Slide 8: Healthy trends with and without acquisitions
Healthy trends with and without acquisitions 6M results as at Dec 2016 - MB Group Section 1 Group revenues (€m, 6m) Group costs (€m, 6m) +6% +10% 49 1,072 39 463 +1% +1% 420 424 1,016 1,023 Dec.15 Dec.16, Acquisitions Dec.16 Dec.15 Dec.16, Acquisitions Dec.16 acquisitions exc. acquisitions exc. Grou
Slide 9: Top line: positive 2Q for banking and client businesses
Top line: positive 2Q for banking and client businesses 6M results as at Dec 2016 - MB Group Section 1 Group revenues (€m, 6m) Fees by quarter (€m, 3m) +32% +6% 135 1,072 1,016 114 102 136 139 64 46 237 June16 Sept.16 Dec.16 227 NII by quarter (€m) +2% 604 636 321 314 301 Dec.15 Dec.16 Net interest
Slide 10: Strict cost control
Strict cost control 6M results as at Dec 2016 - MB Group Section 1 Group costs (€m, 6m) Total costs by division (€m, 6m) +1% Dec.15 113 463 CIB 420 424 Dec.16 112 -1% YoY 242 210 222 Consumer Dec.15 131 banking Dec.16 137 +5% YoY 210 231 212 Wealth Dec.15 128 Dec.15 Dec.16 Dec.16 acquisitions Manage
Slide 11: CoR hovering around 100bps
CoR hovering around 100bps (BP19 target 105bps) 6M results as at Dec 2016 - MB Group Section 1 Cost of risk by division (bps) NPLs1 (“deteriorate”) and coverage1 (€m, %) 55% 53% 342 1,400 51% 55% 318 313 307 50% 1,200 267 1,000 45% 800 1,138 40% 1,007 937 600 35% 400 30% 133 Dec.14 Dec.15 Dec.16 111
Slide 12: Asset quality improved in all divisions
Asset quality improved in all divisions coverage up, Npls/bad loans down in relative terms NPLs1 Bad Ls1 Coverage1 As % of loans1 (“deteriorate”) (“sofferenze”) -7% -11% 66% 69% 3.1% 2.5% Mediobanca 937 53% 55% Group 1,007 190 168 0.6% 0.4% Dec.15 Dec.16 Dec.15 Dec.16 Dec.15 Dec.16 Dec.15 Dec.16 -7%
Slide 13: One-off items
One-off items 6M results as at Dec 2016 - MB Group Section 1 Non-operating items (€m, 6months) Barclays PPA allocation as at Dec16 (€m) ~90% allocated to cover future costs or €m - + sustain growth projects Atlantia - +110 1.6% stake disposal Disposal/impairment on (8) +12 (142) other AFS stakes 240
Slide 14: CET1 up to 12.3% due to RWA management and earnings
CET1 up to 12.3% due to RWA mgt & earning generation 6M results as at Dec 2016 - MB Group Section 1 RWA trend (€bn) CET1 phase-in trend (% and bps) - 53.9 53.8 +20bps 4.4 5.4 +0.9 (2.4) +0.9 +0.5 +20bps 11.2 11.4 12.1% +20bps -20bps 12.3% 6.8 7.2 4.3 4.9 27.2 24.8 June16 CIB PI Barclays Organic Dec.
Slide 15: SREP 2016: Mediobanca confirmed as best in class
SREP 2016 Mediobanca confirmed as best in class 6M results as at Dec 2016 - MB Group Section 1 Italian SREP SREP CET 1 Total Capital banks that CET 1 Total Capital Sept.16 Sept.16 have reported phase in phase in Credem 6.75% 13.5% 9.00% 14.7% Mediobanca 7.00% 12.1% 9.25% 15.7% BPER 7.25% 14.5% 9.50%
Slide 16: Agenda
Agenda 1. Group results 2. Divisional results 2A. Corporate & Investment Banking 2B. Consumer Banking 3C. Wealth Management 3D. Principal Investing 3E. Holding Functions
Slide 17: New BU segmentation consistent with strategic priorities
new BU segmentation consistent with strategic priorities Mediobanca Group Holding Functions Group ALM & Treasury Corporate & Investment Consumer Banking Wealth Management Principal Investing Banking (CIB) (CB) (WM) (PI) Corporate & Investment Consumer Banking Affluent & Premier Principal Investing B
Slide 18: Corporate & Investment Banking
Corporate & Investment Corporate & Banking (CIB) Investment Banking Corporate & Investment Banking Specialty Finance 18
Slide 19: CIB: improved profitability even in a volatile market
CIB: improved profitability even in a volatile market ROAC up to 11% Wholesale Banking (WB) Specialty Finance (SF) Corporate & Investment Banking (CIB) Excellent asset quality (nihil LLPs) Expanding volumes RWA optimization ongoing Fee driven-high profitable business Net profit up 19% to €126m Net p
Slide 20: M&A: Leading Position in Core Markets
M&A: Leading Position in Core Markets 6M results as at Dec 2016 – Divisional results Section 2 Mediobanca is the go-to investment bank with undisputed experience M&A Italy – Announced Deals (2016 - YTD) in the Italian M&A advisory and growing presence in the rest of Europe, leveraging on its core ge
Slide 21: Mediobanca: a unique ECM platform
Mediobanca: a unique ECM platform 6M results as at Dec 2016 – Divisional results Section 2 Mediobanca is one of the leading pure European investment bank with good access to both Italian and international institutional investors Bookrunner Italian ECM1 (2016 - YTD) Mediobanca boasts an unrivalled tr
Slide 22: CIB revenue up 3%, well diversified between products
CIB revenue up 3%, well diversified between products 6M results as at Dec 2016 – Divisional results Section 2 CIB revenues YoY trend (€m, 6m) Specialty Dec.15 TradingSpecialty Trading Finance Dec.16 7% Finance 12% 13% 9% Capmkt Capmkt 33% 20% €306m €314m Lending 45% Advisory Lending 10% Advisory 40%
Slide 23: Consumer Banking
Consumer Banking Consumer Banking (CB) Consumer Banking Compass 23
Slide 24: Consumer: strong set of results once again
Consumer: strong set of results once again ROAC 24% Disciplined and profitable growth Focus on margins Consumer Banking (CB) NII steadily up Superior asset quality CoR steadily down IH17 results at highest level ever: Loans steadily up keeping focus on risk- NII up 13% due to growing loan Revenues u
Slide 25: Focus on profitability rather than on volumes
focus on profitability rather than on volumes 6M results as at Dec 2016 – Divisional results Section 2 Cautious approach to new business …less risky products… … and more profitable direct distribution focused on … (Car and finalized new loans - €bn, %) … (direct new loans by product - €m) 40% 15.0%
Slide 26: Outstanding and sustainable asset quality performance
Outstanding and sustainable asset quality performance 6M results as at Dec 2016 – Divisional results Section 2 First risk indicator¹ Consumer NPLs ratio and coverage trend Consumer Dec.15 June 16 Dec.16 NPLs (€m) 176 176 176 = NPLs/loans 1.7% 1.6% 1.6% = NPLs coverage 74% 73% 73% = Further industria
Slide 27: Wealth Management
Wealth Management Wealth Management (WM) Affluent & Premier CheBanca! Private & HNWI Banca Esperia Spafid CMB Mediobanca AM 27
Slide 28: WM: steep growth due to recent acquisitions
WM: steep growth due to recent acquisitions ROAC 10% CheBanca! (Affluent & Premier) Private CheBanca! HNWI (Affluent & Premier) Wealth Management (WM) Barclays integration started Sound AUM growth Revenues up 31%, fees now visible at CheBanca! Robo-Advisory service TFA up 8% HoH (to €30bn) Group lev
Slide 29: WM top line growing and visible at group level
WM top line growing and visible at group level 6M results as at Dec 2016 – Divisional results Section 2 WM revenues breakdown (€m, 6months) Mortgages and CoR (€bn, bps) Contribution of WM fees 38% 300 40% 39 to Group fees 35 12.0 34 32% 35% 34 250 30 28% 214 +31% 30% 10.0 29 200 +55% 171 25% 8.0 7.4
Slide 30: Building up Wealth management, TFA up 20% to €51bn
Building up Wealth management TFA up 20% to €51bn 6M results as at Dec 2016 – Divisional results Section 2 Group TFA trend by costumer segments (€bn) +20% +15% 50.6 +42% -9% 42.2 (0.7) Cairn 7.4 AAM 3.0 Spafid 4.0 AAM Cairn 8.1 6.1 Esperia 9.0 Spafid 3.0 Private Private Esperia 8.4 CMB 9.4 CMB 8.1 C
Slide 31: With strong inflows of AUM and Deposits
... with strong inflows of AUM and Deposits 6M results as at Dec 2016 – Divisional results Section 2 Group TFA trend by product (€bn) +20% +27% +6% 50.6 +23% 42.2 0.7 AUC 11.4 3.8 AUC 10.7 3.9 Deposits 17.9 Deposits 14.1 AUM/AUA AUM/AUA 21.3 17.4 June16 AUM/AUA Deposits AUC Dec.16 TFA increase in la
Slide 32: Principal Investing
Principal Investing (PI) Principal Investing Principal Investing Ass. Generali AFS stake ptf 32
Slide 33: Principal Investing: continuing disposals
Principal Investing: continuing disposals ROAC 15% KPIs (€m) Main equity investments (€m) Book value AFS PI - €m Dec15 Dec16 D Company % €m reserve Revenues 153 138 -10% Ass.Generali 13% 3,346 n.m.² Gain from disposals/ Atlantia 1.4% 249 98 80 118 +48% impairments Net profit 230 242 +5% Italmobiliar
Slide 34: Holding Functions
Holding Functions Holding Functions Group ALM & Treasury Leasing 34
Slide 35: Holding Function: conservative ALM, optimization ongoing
Holding Function: conservative ALM, optimization ongoing Leasing Treasury, CheBanca! ALM (Affluent & Premier) Holding Functions (HF) Ordinate deleverage ongoing Optimization ongoing Net loss up to €123m: Net profit flat at €3m: Revenue down due to Lower NII due higher liquidity (LCR Loans and revenu
Slide 36: HF KPIs
HF KPIs 6M results as at Dec 2016 – Divisional results Section 2 Group funding (€m) HF revenues (€m) HF costs (€m, intragroup items exc.) 5 +11% 49.7 (38) 44.8 16 6.1 9 6.4 6.5 (76) 28 24 -7% 5.5 (71) 3.6 2.4 (14) -20% (11) 10.4 13.8 (39) (71) (62) -4% (59) 20.0 19.7 Dec.15 Dec.16 Dec.15 Dec.16 Dec.
Slide 37: Closing remarks
CLOSING REMARKS Highest-ever 6m revenues with growing NII and Fees Last 6m Sharp reduction of cost of risk, already down to BP19 target, coupled with lower NPLs and increased coverage ratios Growth Improvement in revenues, asset quality, net profit and ROAC in all in size and profitability divisions
Slide 38: Mediobanca 6M results as at December 2016
Mediobanca 6M results as at 31 December 2016 Milan, 8 February 2017
Slide 39: Quarterly segmental reporting tables
Quarterly segmental reporting tables Annex 1 39
Slide 40: Group P&L account
Group P&L account 6M results as at Dec 2016 Annex1 2H 1H 2H 4Q 3Q 2Q 1Q €m D YoY1 Dec16 June16 Dec15 Dec16 Sept16 June16 Mar16 Total income 1,072 1,030 1,016 6% 546 526 528 503 Net interest income 636 602 604 5% 321 314 301 301 Fee income 237 223 227 4% 135 102 114 109 Net treasury income 64 87 46 3
Slide 41: Group A&L
Group A&L 6M results as at Dec 2016 Annex 1 D D €bn Dec16 Sept16 June16 Dec15 HoH1 YoY1 Funding 49.7 50.2 46.7 44.8 +6% +11% Bonds 19.7 20.8 20.3 20.0 -3% -2% Retail direct deposits 13.8 13.8 10.7 10.4 +29% +33% ECB 6.5 5.5 5.0 5.5 +30% +19% Others 9.6 10.1 10.6 8.8 -9% +9% Loans to customers 37.6 3
Slide 42: CIB results
CIB results 6M results as at Dec 2016 Annex 1 2H 1H 2H 4Q 3Q 2Q 1Q €m D YoY1 Dec16 June16 Dec15 Dec16 Sept16 June16 Mar16 Total income 314 319 306 +3% 169 146 132 187 Net interest income 153 144 156 -2% 78 76 73 72 Net treasury income 54 72 24 28 26 13 59 Fee income 107 103 125 -14% 63 44 47 56 Tota
Slide 43: Consumer banking: Compass results
Consumer banking: Compass results 6M results as at Dec 2016 Annex 1 2H 1H 2H 4Q 3Q 2Q 1Q €m D YoY1 Dec16 June16 Dec15 Dec16 Sept16 June16 Mar16 Total income 476 450 423 +13% 240 236 235 215 Net interest income 408 384 363 +13% 206 203 196 188 Fee income 67 66 60 +12% 35 33 39 27 Total costs (137) (1
Slide 44: Wealth Management results
Wealth Management results 6M results as at Dec 2016 Annex 1 2H 1H 2H 4Q 3Q 2Q 1Q €m D YoY1 Dec16 June16 Dec15 Dec16 Sept16 June16 Mar16 Total income 214 171 163 +31% 123 91 88 84 Net interest income 117 92 94 +25% 67 50 46 46 Fee income 90 72 63 +43% 53 37 37 34 Net treasury income 7 7 6 +12% 3 4 4
Slide 45: CheBanca! Results (Affluent & Premier)
CheBanca! Results (Affluent & Premiere) 6M results as at Dec 2016 Annex 1 2H 1H 2H 4Q 3Q 2Q 1Q €m D YoY1 Dec16 June16 Dec15 Dec16 Sept16 June16 Mar16 Total income 132 96 96 +37% 78 54 49 47 Net interest income 100 73 76 +32% 59 41 36 37 Fee income 32 23 21 +54% 19 13 13 10 Total costs (111) (83) (80
Slide 46: Private Banking results
Private Banking results 6M results as at Dec 2016 Annex1 2H 1H 2H 4Q 3Q 2Q 1Q €m D YoY1 Dec16 June16 Dec15 Dec16 Sept16 June16 Mar16 Total income 83 75 67 +24% 46 37 39 36 Net interest income 18 19 18 -5% 9 9 10 9 Fee income 59 49 43 +38% 34 25 25 24 Net treasury income 6 7 6 +10% 3 4 4 3 Total cost
Slide 47: Principal Investing results
Principal Investing results 6M results as at Dec 2016 Annex 1 2H 1H 2H 4Q 3Q 2Q 1Q €m D YoY1 Dec16 June16 Dec15 Dec16 Sept16 June16 Mar16 Total income 138 131 153 -10% 60 78 90 41 Gains from disposals 119 28 92 30% 9 110 23 5 Impairments (1) (6) (12) (1) (0) (1) (5) Net result 242 144 230 5% 64 178
Slide 48: Holding Functions results
Holding Functions results 6M results as at Dec 2016 Annex 1 2H 1H 2H 4Q 3Q 2Q 1Q €m D YoY1 Dec16 June16 Dec15 Dec16 Sept16 June16 Mar16 Total income (38) (12) 5 (27) (12) 2 (13) Net interest income (47) (22) (12) (28) (19) (16) (6) Fee income 9 12 11 4 5 9 3 Total costs (71) (87) (76) -7% (38) (33)
Slide 49: Disclaimer
Disclaimer This presentation contains certain forward-looking statements, estimates and targets with respect to the operating results, financial condition and business of the Mediobanca Banking Group. Such statements and information, although based upon Mediobanca’s best knowledge at present, are ce
Slide 50: Investor contacts
Investor contacts Mediobanca Group Investor Relations Piazzetta Cuccia 1, 20121 Milan, Italy Jessica Spina Tel. no. (0039) 02-8829.860 Luisa Demaria Tel. no. (0039) 02-8829.647 Matteo Carotta Tel. no. (0039) 02-8829.290 Email: investor.relations@mediobanca.com http://www.mediobanca.com 50