Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB

Mediobanca - Banca Di Credito Finanziario — Mediobanca — FY2010 Earnings Presentation

28 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, Sep 21, 2010

  1. Slide 1: FY 2010 results

    FY 2010 results Milan, 21 September 2010

  2. Slide 2: Net profit up to €401m, total revenues up 14%

    Net profit up to €401m, total revenues up 14% FY 2010 results 2010 key group drivers Double-digit growth in total income despite reduced contribution from securities Franchise enlarged in CIB, Compass and CheBanca! Asset quality preserved, as a result also of selective lending policy Capitalization

  3. Slide 3: Growth delivered in top line and profitability

    Growth delivered in top line and profitability FY 2010 results Main trends Group KPIs (€m) June 10 June 09 D Total income up 14%, driven by continuing YoY 12m 12m growth of NII (up 6%) and fees (up 4%) in both corporate and retail operations and Total income 2,018 1,776 +14% recovering PI contributi

  4. Slide 4: Reshaping funding mix, solidity improved

    Reshaping funding mix, solidity improved FY 2010 results Main trends Group KPIs (€bn) June 10 June 09 D 12m 12m YoY Reshaping funding mix, with increasing contribution from retail operations which Funding 53.8 53.4 +1% now account for 18% of the funding stock, or Retail 9.6 6.2 +54% 40% of the funds

  5. Slide 5: NII steadily growing, CheBanca! becoming material

    NII steadily growing, CheBanca! becoming material FY 2010 results CIB NII (€m) RPB NII (€m) Group NII (€m)* +6% 917 861 475 442 436 426 +6% 526 +13% 495 429 379 282 256 243 216 213 239 151 201 131 178 114 115 119 124 102 98 2H08 1H09 3Q09 4Q09 1Q10 2Q10 2H08 1H09 3Q09 4Q09 1Q10 2Q10 2H08 1H09 2H09 1

  6. Slide 6: Fee income up, driven by CIB

    Fee income up, driven by CIB FY 2010 results CIB fees (€m) RPB fees (€m) Group fees (€m)* +4% 512 534 286 284 +10% 332 249 302 ~ 226 240 240 179 179 154 126 93 114 123 121 119 85 82 66 72 60 59 56 2H08 1H09 3Q09 4Q09 1Q10 2Q10 2H08 1H09 3Q09 4Q09 1Q10 2Q10 2H08 1H09 2H09 1H10 FY 08/09 FY 09/10 FY 08

  7. Slide 7: Trading income impacted by bond market volatility

    Trading income impacted by bond market volatility FY 2010 results Trading income (€m) AFS income (€m) PI income (€m) +2x nm +12% (12) 204 -40% 230 192 216 138 110 165 165 70 52 49 33 101 73 67 36 27 122 46 FY 07/08 FY 08/09 3Q09 4Q09 1Q10 2Q10 2H08 1H09 3Q09 4Q09 1Q10 2Q10 2H08 1H09 3Q09 4Q09 1Q10 2

  8. Slide 8: Costs up 6%, rate of growth reduced

    Costs up 6%, rate of growth reduced FY 2010 results CIB costs (€m) RPB costs (€m) Group costs (€m)* +6% 773 730 391 394 +10% 379 505 457 339 ~ 255 250 302 303 246 212 142 158 145 126 125 161 113 140 76 81 77 69 2H08 1H09 3Q09 4Q09 1Q10 2Q10 2H08 1H09 3Q09 4Q09 1Q10 2Q10 2H08 1H09 2H09 1H10 FY 08/09

  9. Slide 9: Conservative approach to asset quality

    Conservative approach to asset quality FY 2010 results Asset quality ratios trend* Gross and net bad loans trend* (€m) +9% 150bps +85% 140bps LLPs/Ls 1,290 Gross bad loans 1,400 85bps 80% 80% 77% NPLs Coverage 700 Net bad loans 0.3% 0.3% 0.4% Net NPLs/LS FY 07/08 FY 08/09 FY 09/10 June08 2H08 1H09 J

  10. Slide 10: Quarterly cost of risk progressively reducing

    Quarterly cost of risk progressively reducing FY 2010 results CIB LLPs (€m and bps) RPB LLPs (€m and bps) Group LLPs (€m and bps) 305 305 165 160 95 300 150 290 295 145 145 85 115 +3% 70 504 517 235 60 60 +11% 297 55 325 361 -13% 179 207 141 156 185 130 93 122 125 140 93 90 88 90 112 48 67 40 34 34

  11. Slide 11: Net profit and profitability growing

    Net profit and profitability growing FY 2010 results Net profit trend (€m) RWAs (€bn) and gross RORWA <300 >90 55 53 55 50 401 40 CIB 75% 33 >240 >40 >15 RPB 20% PI Net profit Income Costs Loans Securities Taxes Net profit J05 J06 J07 J08 J09 J10 Break June 09 provisions writedowns June 10 down • Ne

  12. Slide 12: Capital and dividend

    Capital and dividend FY 2010 results Core Tier 1 (€bn) Dividend policy 10.3% Core Tier 1 ratio 11.1% Core Tier 1 12.3% 10.3% 10.3% 11.1% Cash payout 75% 70% 55% -0.1 +0.2 5.9 +0.4 5.4 Net Dividends AFS+PI DPS adj € 0.61 0.61 0.17 income reserves Tot dividend €m 531 523 144 June 09 June 10 J07 J08 J0

  13. Slide 13: CIB 2010 results: strong 2009 results confirmed

    CIB 2010 results : strong 2009 results confirmed FY 2010 results Main trends KPIs (€m) June10 June 09 D June 08 CIB key 2010 trends: 12m 12m 09/10 12m Improved margins: despite 8% reduction in Total revenues 1,006 1,061 -5% 874 loan book, NII up 13%, driven by asset re-pricing and treasury yield enh

  14. Slide 14: CIB. Income doubled in 5Y driven by NII and Fees

    CIB. Income doubled in 5Y driven by NII and Fees FY 2010 results Total income trend (€m) and breakdown AFS stakes disposed (book value, €bn) 3.3 1.060 1.010 0.2 890 870 0.7 850 AFS Trading 1.1 560 Fees 0.7 NII 0.6 June 05 June 06 June 07 June 08 June 09 June 10 J06 J07 J08 J09 J10 Total disposals •

  15. Slide 15: PI 2010 results

    PI 2010 results FY 2010 results Main trends KPIs (€m) June10 June 09 D June 08 PI results returned to sizeable profit, due to 12m 12m 09/10 12m recovery by Ass. Generali and lack of Total income 204 (12) nm 485 impairment; contributions from RCS and Telco still negative (€17m and €2m Ass.Generali 23

  16. Slide 16: Consumer credit: 2010 key drivers

    Consumer credit: 2010 key drivers FY 2010 results New loans (€bn) LLPs (€m and bps) Costs (€m) 425 415 400 400 405 41 Collection 20 23 +7% 310 3.8 4.1 -6% ~ +13% 298 337 Other adm. 125 120 121 169 129 87 85 81 83 Labour 87 78 78 2H08 1H09 3Q09 4Q09 1Q10 2Q10 2H08 1H09 3Q09 4Q09 1Q10 2Q10 June 08 Jun

  17. Slide 17: Effective distribution, increasing mkt share

    Effective distribution, increasing mkt share FY 2010 results Compass distribution by channel (personal loans) New loans (D % YoY, Compass market share) Compass market share 7.8% June 2008 June 2010 7.1% 6.3% 17% +19% 24% 98% 58% -4% -9% -5% -27% -11% 1H09 2H09 1H10 • Distribution drastically diversi

  18. Slide 18: Consumer lending: sustainable growth confirmed

    Consumer lending: sustainable growth confirmed FY 2010 results Main trends KPIs (€m) June 10 June 09 D June 08 12m 12m 09/10 12m Income up 6% driven by NII on resumed growth in volumes and margins (lower cost Total income 605 592 638 +6% of funding) Total costs (240) (222) +12% (232) Cost up 12% exc

  19. Slide 19: CheBanca!: 2010 key drivers

    CheBanca!: 2010 key drivers FY 2010 results Commercial KPIs Income trend (€m) Branches and Staff Customers Product sold Deposits Physical network brand €bn standardized: 42 CheBanca! branches. In the last 12 months: +54% +90% 9.6 • 16 CheBanca! new openings 440K +2x • 23 former Micos branches closed

  20. Slide 20: CheBanca! deposits scaling up at reducing cost

    CheBanca! deposits scaling up at reducing cost FY 2010 results Funding stock and pricing for 12m tied deposits (€bn, bps) €bn 9.6 bn 10.0 Price Leader* 550 475 475 8.0 470 425 CheBanca! 375 410 6.0 350 325 300 296 250 4.0 266 +154 3.7 149 142 2.0 -54 140 110 1.8 1.1 0.6 1.3 0.4 3Q08 4Q08 1Q09 2Q09 3

  21. Slide 21: Reshaping funding mix

    Reshaping funding mix FY 2010 results Funding (€bn) Funds raised (€bn) MB bonds expiring (€bn) 46bn 53bn 54bn 13bn 16bn 9bn Total stock 35bn 12% 18% 30% 55% 18% 40% 40% 17% 70% 70% 65% 100% 60% 60% 20% 15% 10% June 08 June 09 June10 June 08 June 09 June10 <Dec11 <Dec12 <Dec13 >Dec13 • Retail deposit

  22. Slide 22: CheBanca! 2010 results: total income doubled

    CheBanca! 2010 results: total income doubled FY 2010 results Main trends KPIs (€m) June 10 June 09 D June 08 Losses peaked in June 2009, and are now 12m 12m 09/10 12m being progressively absorbed Total income 98 47 +2x 49 Total income doubled, driven by reduction in Total costs (180) (156) +15% (80)

  23. Slide 23: Private banking: AUM rebuilding, profitability to follow

    Private banking: AUM rebuilding, profitability to follow FY 2010 results Main trends KPIs (€m) June 10 June 09 D June 08 “Scudo fiscale” and market turmoil 12m 12m 09/10 12m reshaped on/off shore business, along with customers’ risk appetite Total income 108 114 -6% 141 - CMB 70 82 -15% 92 CMB. Desp

  24. Slide 24: Understanding of Basel III regulatory issues to date

    Understanding of Basel III regulatory issues to date FY 2010 results No issues on leverage, liquidity or funding ratios No issues on capital quality as Core Tier 1 = Tier 1 = 11.1% Impact of deductions starting in 2014 and spread out until 2018 Deduction of Ass.Generali stake recoverable throughout

  25. Slide 25: 2011 opportunities: further growth in banking business

    2011 opportunities: further growth in banking business FY 2010 results Group: banking activities MB business model already compliant with Basel III “new world” Room for growth at all banking businesses growth ongoing Consolidate recurrent income in CIB (AFS stake disposals ended) and Retail Upgradin

  26. Slide 26: MEDIOBANCA

    MEDIOBANCA Banca de Coedbte « Yoranniaric ‘ Lin S

  27. Slide 27: 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

  28. Slide 28: Investor contacts

    Investor contacts Mediobanca Group Investor Relations Piazzetta Cuccia 1, 20121 Milan, Italy Tel. no.: (0039) 02-8829.860 / 647 Fax no.: (0039) 02-8829.550 Email: investor.relations@mediobanca.it http://www.mediobanca.it 28

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