Banca Sistema S.p.a. · MIL:BST
Banca Sistema — 9M 2022 Earnings Presentation
18 slides from Banca Sistema's earnings presentation, Nov 11, 2022
Slide 1: 9M 2022 Results
9M 2022 RESULTS 11 November 2022
Slide 2: 9M 2022 Results at a Glance
9M 2022 Results at a Glance Factoring turnover +26% y/y equal to €3,152m Commercial CQ outstanding at €958m, stable y/y performance Pawn loans outstanding at €104m, +19% y/y SMEs State guaranteed loans outstanding equal to €181m, up y/y Net Interest Income equal to €65.4m, +15% y/y Lower
Slide 3: Factoring commercial performance
Factoring commercial performance Factoring outstanding Outstanding breakdown (30.09.2022) €m +8% By Type of Product By Obligor y/y PA accounts for 82% 1,850 1,851 Tax receivables Recourse State Central 25% 18% 1.707 [-20% y/y] Local Administration [+63% y/y] Entities 31% 27% Public Sector Organizati
Slide 4: CQ and Pawn loans commercial performance
CQ and Pawn loans commercial performance CQ loans outstanding Pawn Loans outstanding €m €m +19% y/y 955 958 104 932 Private Pensioners 17% 43% 90 87 PA employees 40% 30.09.2021 31.12.2021 30.09.2022 30.09.2021 31.12.2021 30.09.2022 • ~61k contracts • «QuintoPuoi» branding of three branches of agents
Slide 5: 9M22 – Balance Sheet
Figures in millions of Euro Change in % 9M22 – Balance Sheet 31.12.2021 30.06.2022 30.09.2022 30.09.2022 vs 31.12.2021 Govies’ portfolio (€845m) up q/q and y/y, with an average ASSETS duration of 24.5 months, exclusively Italian Governament Ca s h a nd ca s h equi va l ents 176 70 149 -15% bonds: F
Slide 6: Well diversified Interest income
Well diversified Interest income 9M22 Interest Income up 7% y/y (down q/q), with a higher contribution from Pawn loans and SMEs State guaranteed loans/Tax credit 74.9 +7% 69.8 y/y for ‘superbonuses’ (+€2.8m y/y) 7.6 12,4 4,3 5.6 Factoring Factoring represents 55% of Total Interest 16.0 16.1 Inco
Slide 7: Total Income up 8% y/y
Total Income up 8% y/y Total Income €m 80.9 74.8 3,2 +8% 5.8 12.3 y/y 9M22 Total Income up 8% y/y (down q/q), although the 11,9 decrease of Other Income Net interest Income NII +15% increase y/y (down q/q) is driven by the increase in 65,4 57,1 Net Commissions Interest Income and the decrease in
Slide 8: Cost base consolidating
Cost base consolidating Total Operating Costs Personnel Expenses Administrative Expenses, Net €m +8% FTEs (#) 278 283 Provisions for risk, Other and y/y D&A 47,7 44,3 21,3 21,4 23.0 26,3 9M21 9M22 9M21 9M22 9M21 9M22 Servicing Costs 4% Other Costs 51% Personnel Personnel Expenses stable y/y due to
Slide 9: Lower funding cost y/y
Lower funding cost y/y Total Funding breakdown • Cost of funding lower y/y and slightly up q/q -0.4% -0.4% -0.1% -0.2% Total Funding Cost • Wholesale component increase 68% 68% 66% q/q is due mainly to higher Repos 55% related to Govies’ ptf increase, ECB short term funding (on top of Wholesale +0.0
Slide 10: Asset Quality driven by factoring business
Asset Quality driven by factoring business Gross Non Performing Exposures Net Non Performing Exposures €m 315.1 291.2 291.7 PA exposure 255.6 deriving from ordinary 229.6 231.3 business 169,1 166.8 167.0 121,5 Past-dues 119.1 120.8 37.4 26.0 46.8 33.8 Unlikely to Pay 33.6 20.4 108,6 Bad loans 108.0
Slide 11: Regulatory Capital above minimum requirements
Regulatory Capital above minimum requirements CET1 and Total Capital(1) €m TC Ratio 16.4% 15.4% 15.9% 14.6% 16.5% RWA breakdown 13.0% 12.1% 12.5% 11.4% 13.3% €m CET1 Ratio 221,9 217,3 215,8 234.0 206,1 Considering Ecofin’s decision to introduce a 1,356.9 1,415.22 176,3 188.3 171,6 170,2 prudential f
Slide 12: Annexes
Annexes BANCA 12 SISTEMA
Slide 13: Factoring Turnover
Factoring Turnover Factoring Turnover €m +26% 3,152 2,495 +10% y/y ex. Tax Receivables 2,183 Turnover generated by agreements with Italian Retail banks: 12% in 9M22 9M20 9M21 9M22 9M22 Factoring Turnover breakdown By Type By Year of Customer’s Acquisition Customer Concentration Spain 6% Tax 9M22 rec
Slide 14: Late Payment Interest
Late Payment Interest Due LPI Stock – Assets in legal action Total collected cashed-in LPI(1) €m €m 81 78 65 70 €0.7m 5,9 Sold LPI €56.2m accrual 3,2 3,1 recognised in P&L 2,5 101 1,6 1,8 99 101 105 30.09.2021 31.12.2021 30.06.2022 30.09.2022 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 LPI – non relevant fo
Slide 15: 9M 2022 – Income Statement
9M 2022 – Income Statement Figures in millions of Euro 9M 22 vs 9M 21 9M 2021 1Q 2021 2Q 2021 3Q 2021 9M 2022 1Q 2022 2Q 2022 3Q 2021 change in % Interest income 69.8 24.2 23.5 22.1 74.9 23.6 27.0 24.3 7% Interest expenses (12.8) (4.8) (4.4) (3.5) (9.4) (2.9) (3.0) (3.5) -26% Net interest income 57.
Slide 16: Asset Quality
Asset Quality Gross Bad loans 6,9% 0,2% 6,9% 0,2% Conservatorships (factoring) Loans granted 14,7% 15,4% Factoring before 2020 SME State Guarantee Loans 77,5% 78,2% Other 30.06.2022 30.09.2022 Gross Unlikely to Pay 7,9% 12,0% 0,5% 10,5% 81,6% 87,5% 30.06.2022 30.09.2022 16
Slide 17: Disclaimer
Disclaimer The distribution of this presentation in other jurisdictions may be restricted by law or regulation. Accordingly, persons who come into possession of this document should inform themselves of, and observe, these restrictions. To the fullest extent permitted by applicable law, the companie
Slide 18: Carlo Di Pierro, Head of Investor Relations
Carlo Di Pierro Head of Investor Relations carlo.dipierro@bancasistema.it +39 02 80280358 +39 3355288794 18