Banca Sistema S.p.A. · MIL:BST
Banca Sistema — FY2022 Earnings Presentation
24 slides from Banca Sistema's earnings presentation, Apr 3, 2023
Slide 1: Group Profile March 2023
GROUP PROFILE MARCH 2023
Slide 2: Among the top Italian specialty finance
Among the top Italian specialty finance Who we are Customer loans (31.12.2022) • Independent and diversified specialty finance player in Italy 4% • Established in 2011 (HQ in Milan), IPO in 2015 Factoring to PA 7% • Serving more than 400 corporates in Factoring, 50k customers in CQ Salary and Pensio
Slide 3: Agenda
Agenda Slides 4-6 • Banca Sistema Overview • FY22 Results Slides 8-22 • Annexes 3
Slide 4: Factoring represents 55% of Customer loans
Factoring represents 55% of Customer loans Factoring outstanding €m Business Model What / How we do it 1,678 1,542 1,501 Banca Sistema purchases receivables, mainly without recourse, from PA suppliers in Italy and Spain, but also Tax credits, receivables related to Football and Local transport sub
Slide 5: CQ represents 34% of Customer loans
CQ represents 34% of Customer loans CQ loans outstanding €m Business Model 932 958 933 What / How we do it • CQ is a personal loan ruled by the Italian civil law. The instalments are automatically deducted from the debtor’s salary or pension up to 1/5 of the net amount based on an obligation between
Slide 6: Pawn loans has an Income margin > 15%
Pawn loans has an Income margin > 15% Pawn loans outstanding €m Business Model +19% 107 What / How we do it 104 y/y Secured loans backed mainly by gold, but also jewelry, diamonds and one watch brands Fast loan procedure Assets not redeemed (less than 5% of the overall portfolio on average), 3
Slide 7: Agenda
Agenda Slides 4-6 • Banca Sistema Overview • FY22 Results Slides 8-22 • Annexes 7
Slide 8: FY 2022 Results at a Glance
FY 2022 Results at a Glance Factoring turnover +22% y/y equal to €4,417m Commercial CQ outstanding at €933m, stable y/y performance Pawn loans outstanding at €107m, +19% y/y SMEs State guaranteed loans outstanding equal to €197m, +23% y/y Net Interest Income equal to €85.4m, +4% y/y Stab
Slide 9: Factoring commercial performance
Factoring commercial performance Factoring - Customer loans Outstanding breakdown (31.12.2022) €m €1,650m By Type of Product By Obligor PA accounts for 80% 1,678 Tax receivables Recourse State Central 9% 19% Administration 1,542 1,501 [-37% y/y] [-35% y/y] Local 15% Entities 30% Local Healthcare Org
Slide 10: CQ and Pawn loans commercial performance
CQ and Pawn loans commercial performance CQ loans outstanding Pawn Loans outstanding €m €m +19% y/y 958 107 932 933 Private Pensioners 104 17% 42% 90 PA employees 41% 31.12.2021 30.09.2022 31.12.2022 31.12.2021 30.09.2022 31.12.2022 • €322m turnover in FY22 (€299m in FY21) • ~62k contracts •€209m Di
Slide 11: FY22 – Balance Sheet
Figures in millions of Euro Change in % FY22 – Balance Sheet 31.12.2021 30.09.2022 31.12.2022 31.12.2022 vs 31.12.2021 Govies’ portfolio (€1,234m) up q/q and y/y, with an average ASSETS duration of 18.4 months, exclusively Italian Governament Ca s h a nd ca s h equi va l ents 176 149 127 -28% bonds
Slide 12: Well diversified Interest income
FY22 Interest Income up 4% y/y (up q/q), Well diversified Interest income with a higher contribution from Pawn loans and SMEs State guaranteed loans and Tax +4% credit for ‘superbonuses’ (+€4.3m y/y) 101.9 y/y 98.2 10.5 16.9 Factoring represents 56% of Total Interest Factoring 6.0 7.8 Income 21.
Slide 13: Total Income slightly lower y/y
Total Income slightly lower y/y Total Income €m 108.0 -2% 105.9 y/y FY22 Total Income down 2% y/y, due to the lower Other 10.3 3.8 15.7 16.7 Income Net interest Income NII +4% increase y/y is driven by the increase in Interest 82.0 85.4 Net Commissions Income. Total Cost of funding, equal to 0.4
Slide 14: Cost base consolidating
Cost base consolidating Total Operating Costs Personnel Expenses Administrative Expenses, Net €m FTEs (#) 278 290 Provisions for risk, Other and +2% y/y D&A 62.9 64.2 29.0 33.9 37.4 26.8 FY21 FY22 FY21 FY22 FY21 FY22 Servicing Costs 4% Other Costs 54% Personnel Personnel Expenses stable y/y adjust
Slide 15: Stable funding cost y/y
Stable funding cost y/y Total Funding breakdown • Cost of funding stable y/y and slightly up q/q 0.4% 0.1% 0.2% 0.4% Total Funding Cost • Wholesale component q/q change 68% 66% is due mainly to higher Repos 55% 55% related to Govies’ ptf increase, more than compensated a slight Wholesale -0.1% -0.6%
Slide 16: Asset Quality driven by factoring business
Asset Quality driven by factoring business Gross Non Performing Exposures Net Non Performing Exposures €m 315.1 291.7 284.8 PA exposure 255.6 deriving from ordinary 231.3 223.1 business 169.1 167.0 121.5 170.4 120.8 Past-dues 123.3 37.4 26.0 33.8 Unlikely to Pay 20.4 33.0 19.2 108.6 Bad loans 108.0
Slide 17: Regulatory Capital above minimum requirements
Regulatory Capital above minimum requirements CET1 and Total Capital(1) €m TC Ratio 15.4% 15.9% 14.6% 15.2% RWA breakdown 12.1% 12.6% 11.4% 11.9% €m CET1 Ratio 217.3 220.7 209.9 206.1 1,415.22 1,385.22 171.6 175.0 CET1 160.5 164.2 Credit Risk Total Capital 1,231.8 1,196.4 Operational Risk & Market R
Slide 18: Annexes
Annexes BANCA 18 SISTEMA
Slide 19: Factoring Turnover
Factoring Turnover Factoring Turnover €m +22% 4,417 3,611 +12% y/y ex. Tax Receivables 3,055 Turnover generated by agreements with Italian Retail banks: 12% in 2022 FY20 FY21 FY22 FY22 Factoring Turnover breakdown By Type By Year of Customer’s Acquisition Customer Concentration Spain 6% Tax FY22 rec
Slide 20: Late Payment Interest
Late Payment Interest Due LPI Stock – Assets in legal action Total collected cashed-in LPI(1) €m €m 81 84 78 70 €1.1m 5.9 Sold LPI 3.9 €56.3m accrual 3.1 2.5 recognised in P&L 105 1.6 1.8 99 101 104 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 31.12.2021 30.06.2022 30.09.2022 31.12.2022 LPI – non relevant fo
Slide 21: FY 2022 – Income Statement
FY 2022 – Income Statement Figures in millions of Euro FY 22 vs FY 21 FY 2021 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2022 1Q 2022 2Q 2022 3Q 2021 4Q 2022 change in % Interest income 98.2 24.2 23.5 22.1 28.4 101.9 23.6 27.0 24.3 27.1 4% Interest expenses (16.2) (4.8) (4.4) (3.5) (3.5) (16.5) (2.9) (3.0)
Slide 22: Asset Quality
Asset Quality Gross Bad loans 6.9% 0.2% 6.8% 0.2% Conservatorships (factoring) 14.7% 14.3% Factoring SME State Guarantee Loans 78.2% 78.8% Other 30.09.2022 31.12.2022 Gross Unlikely to Pay 12.0% 13.3% 0.5% 0.5% 87.5% 86.2% 30.09.2022 31.12.2022 22
Slide 23: 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 24: Investor Relations
Investor Relations investor.relations@bancasistema.it +39 02 80280358 +39 3355288794 24