Credito Emiliano S.p.a. · MIL:CE
Credito Emiliano — H1 2024 Earnings Presentation
29 slides from Credito Emiliano's earnings presentation, 2024
Slide 1: Group Results 1H24
yr S= GROUP RESULTS 1H24
Slide 2: 1H24: Highlights
1H24: HIGHLIGHTS €324 MLN 20.0% 17.4% PROFITABILITY NET PROFIT ROTE ROE Gross NPL Ratio Net NPL 2.7% Ratio 2.3% 1H24 0.8% 1.9% ASSET QUALITY 15.72% CET1 8.12% Ratio €431 MLN 7.60% CAPITAL SOUNDNESS Organic capital generation* vs FY 2023 CET1 Ratio calculated at Credemholding level (prudential perime
Slide 3: 1H24: Highlights
1H24: HIGHLIGHTS +1.2% +4.0% +3.0% VOLUMES YoY YoY YoY Loans -2.4% Direct funding YoY +2.7 1H24 €BN PRODUCTION Customer funding Net inflows >1.5 MLN +6% VS 1H23 CUSTOMERS Total customers Loans: ABI Monthly Outlook July 2024 Credem Group net inflows include AUM, AUC, direct and insurance net inflows
Slide 4: Business Diversification
BUSINESS DIVERSIFICATION Operating Income 472.1 475.5 460.6 500.9 525.3 504.4 Core Operating Income** 422.0 460.4 457.7 491.0 480.6 471.9 0.3% 0.6% 2.3% 1.9% €/million 2.0% 3.9% 8.6% 2.9% 0.0% 4.4% 4.6% 50% 57% 62% 60% 54% 56% 40% 40% 38% 38% 37% 37% -0.7% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Core NIM on O
Slide 5: Contribution to Consolidated Net Profit
CONTRIBUTION TO CONSOLIDATED NET PROFIT Commercial banking Credem Banca €190.9 mln Private Banking Credem Euromobiliare €35.4 mln Private Banking Extended Banking Services, Consumer Credit & Technology Credem Factor Avvera Credemtel €40.3 mln Credem Leasing MGT Wealth Management Euromobiliare SGR €6
Slide 6: ESG Highlights
ESG HIGHLIGHTS Creation of the corporate figure called "ESG Link“: more than 30 people with specific roles and responsibilities of connection between the reference functions of the Bank and the Group companies and the Sustainability Team through a control room to promote synergy and coherence of inf
Slide 7: Customers: The Human-Digital Model
CUSTOMERS: THE HUMAN-DIGITAL MODEL OMNICHANNEL COMMERCIAL PROACTIVITY, DIGITALIZATION OF SALES CENTERED ON RELEVANT NEEDS IN THE CUSTOMER'S LIFE CYCLE OF PRODUCTS/SERVICES TO CUSTOMERS Commercial spaces, sales and engagement processes from an omnichannel COMMERCIAL PROACTIVITY GUIDED BY THE MARKETIN
Slide 8: People
PEOPLE NEW HIRES AUTO-ACTIVATION 167 hires in the 1H24 Support autonomy, innovation and with an average age of 30 years well-being of people, enabling alliances Target 2024: 280 new hires within the Federation of Businesses TALENTS RESPONSIBILITY Inclusive work environment, taking STIMULATE MOTIVATI
Slide 9: Reclassified Income Statement
RECLASSIFIED INCOME STATEMENT • Revenue Growth of +8.7% vs 1H23 confirming the value of the Δvs ∆ vs Group's business model, capable of taking advantage from different €/million 1Q24 2Q24 1H23 1H24 1Q24 1H23 market phases and supporting sustainable growth in the medium Net Interest Income 285.6 284.
Slide 10: Net Interest Income
NET INTEREST INCOME Net Interest Income (€/mln) NII reached approximately €285 million, stable compared to 1Q24, thanks to a better trend in average volumes and a smaller decline in the customer 303 286 285 spread 284 270 235 The customer spread slightly reduced for both Credem and the Industry, due
Slide 11: Non Interest Margin
NON INTEREST MARGIN Total* (€/mln) 237.3 206.0 176.5 198.0 239.7 219.7 Performance Fees 40.5 13.8 23.0 23.0 Income from Financial 0.2 53.6 53.7 56.1 52.3 52.7 Activities 54.1 Banking Fees 21.7 24.1 14.0 23.4 18.4 19.8 Insurance Income 109.3 109.9 97.8 110.5 111.4 109.9 Asset Management and -3.6 Brok
Slide 12: Operating Costs and D&A
OPERATING COSTS AND D&A Operating costs (€/mln) Employees 207 206 188 231 221 223 6,608 6,616 6,628 6,655 6,195 6,201 6,219 6,068 6,140 5,899 5,763 5,609 64 70 73 63 65 62 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2Q24 144 142 167 152 150 127 Financial Advisors 1Q23 2Q23 3Q23 4Q23 1Q24
Slide 13: Loans to Customers
LOANS TO CUSTOMERS Loans to customers (€/bn) 9.8 9.8 9.7 9.6 9.6 Other Loans 9.8 Residential 10.6 10.7 Mortgage 10.1 10.4 10.5 10.6 Leasing 3.2 3.3 3.3 3.2 3.3 3.3 2.8 3.0 3.1 3.2 3.3 3.5 Consumer Finance 7.9 8.3 7.8 8.9 7.7 8.1 1Q23 1H23 9M23 2023 1Q24 1H24 Totale 33.8 34.8 34.4 35.7 34.6 35.2 Ongo
Slide 14: Group Customers Funding: Net Inflows Breakdown
GROUP CUSTOMERS FUNDING: NET INFLOWS BREAKDOWN Amministrata Diretta Gestita + Assicurativo Tot. TotalProduzione Net Inflows Tot. TotalProduzione netto Net Inflows net Corporate of Corporate 2,826 2,961 2,680 2,819 2,600 2,686 2,693 2,664 1,945 1,753 1,635 1,871 1,421 1,093 893 977 570 723 568 446 26
Slide 15: Deposits, AUM and Insurance
DEPOSITS, AUM AND INSURANCE Total customer funding Direct deposits & retail bonds** €/mln 1H23 FY23 1H24 Sight / Saving Depo. 35,848 36,017 37,109 Industry Credem +4.0% YoY Retail Bonds & Other Deposits* 931 1,146 1,154 +158% Total Direct Funding 36,779 37,163 38,262 Insurance Reserves 8,102 8,173 8
Slide 16: Asset Quality: Gross NPL Ratio and Cost of Risk
ASSET QUALITY: GROSS NPL RATIO AND COST OF RISK Gross Non Performing Loans (€/mln,%) 2022 2023 373 359 360 321 298 266 1H24 Bad Loans Bad Loans Disposal ~40 mn Disposal 42 46 41 ~36 mn Gross Bad Loans Gross UTP Loans Gross Past Due Loans • The reduction in total NPL continued, they % on Loans (Crede
Slide 17: NPL: Coverage
NPL: COVERAGE NPL (€ /mln) Gross Net Coverage Bad Loans 266.3 53.6 79.9% UTP Loans 359.6 192.5 46.5% Past Due 41.4 29.9 27.8% Total NPL 667.3 276.1 58.6% + Net NPL +276.1 - (Shortfall + Addendum + Calendar) -7.0 NPL Net of Shortfall 269.1 Coverage incl. Shortfall 59.7% Stage 2 (% of gross loans) • N
Slide 18: Bonds Issuances and Maturities
BONDS ISSUANCES AND MATURITIES Recent issues (€/mln) Maturities (€/mln) Retail Wholesale 0 100 200 300 400 500 600 Social €/mln Jan-24 Covered Bond Green 24 500+ Covered Bond 750+ Sep-23 Social SP 500 100 Jul-23 Social SP Retail 2023 Jul-23 Social SP Retail May-23 Green SNP Senior Preferred 600 500
Slide 19: Liquidity
LIQUIDITY NSFR LCR 232% 137% 135% 132% 188% 167% FY22 FY23 1H24E FY22 FY23 1H24 Loan to Deposit Ratio* 0.95 0.96 0.91 • Liquidity ratios remained sound and well above minimum capital requirements, enabling the Group to have a greater flexibility in setting future funding strategies. In particular, L
Slide 20: Consolidated Capital Ratios
CONSOLIDATED CAPITAL RATIOS Fully phased figures Fully phased figures Gruppo Bancario Credemholding €/mln FY2 3 1H2 4 FY2 3 1H2 4 CET 1 3,267 3,506 3,021 3,240 Total Capital 3,696 3,940 3,601 3,821 Requisiti da rischio di: 1,686 1,636 1,697 1,649 Credito e controparte 1,495 1,444 1,493 1,444 Mercato
Slide 21: Leveraging on Our Diversified Business Model
LEVERAGING ON OUR DIVERSIFIED BUSINESS MODEL 68.4 132.2 136.3 bln € bln € bln € 2013 2023 1H24 The diversified model based on the federation of businesses allows a revenue growth in different rate scenarios, with positive impacts on the net interest income and non interest margin 1 1.2 >1.5 million
Slide 22: Future Positioning
FUTURE POSITIONING Execution ability towards growth and acquisition of market shares We will continue Diversification of revenue sources to excel in by leveraging on our complete Federation of Businesses a “new normal” rates’ scenario Progressive growth of non interest margin enhancing our service m
Slide 23: Attachments
ATTACHMENTS 23
Slide 24: Securities Portfolio
SECURITIES PORTFOLIO Securities portfolio breakdown (€/mln, %) Italian government bond (€/bn) 12,996 11,860 12,468 13,044 12,508 11,965 4.8 4.7 4.7 Ita Govies 1H24 4.2 HTC 3.9 4.0 4.0 HTCS 0.1 FVTPL 0.0 38% 35% 38% 36% 32% 33% Total 4.0 1Q23 1H23 9M23 FY23 1Q24 1H24 4% 4% 4% 4% 4% 4% 25% 24% • The o
Slide 25: Liquidity Reserves
LIQUIDITY RESERVES Liquidity Reserves (€/bn) • The total value of the Group's Liquidity Reserves stood at €17.0 billion, equal to 17.0 19.6% of Total Assets Total 17.2 • The value of Cash and deposits with Central Banks decreased to €4.1 billion Other ECB eligible 5.8 unencumbered assets 6.2 • ECB e
Slide 26: Assets & Liabilities
ASSETS & LIABILITIES Assets (€/mln) 34,552 35,178 1Q24 1H24 • Growth in Loans to customers, while the Securities Portfolio decreased due to some profit-taking 8,960 9,186 6,868 6,700 6,091 5,265 5,640 • The reduction in Due from Banks was 4,971 driven by the similar dynamics, on liability side, of O
Slide 27: Reclassified Consolidated Income Statement by Group Companies
RECLASSIFIED CONSOLIDATED INCOME STATEMENT BY GROUP COMPANIES Extended Banking Commercial Private Asset Weal th Consolidation 1H24 Banking Banking Services, Consumer BANKING Management Insurance Management adjustments Consol i dated Credit & Technology Net Interest Income 447.4 45.0 64.4 556.8 8.3 4
Slide 28: Volumes Reclassified by Group Company
VOLUMES RECLASSIFIED BY GROUP COMPANY Extended Banking Commercial Private Asset Weal th Consolidation 1H24 Banking Banking Services, Consumer BANKING Management Insurance Management adjustments Consol i dated Credit & Technology CUS T OME R LOANS 33,879.5 643.3 7,371.4 41,894.1 0.0 - 6,716.5 35,177.
Slide 29: Disclaimer and Contacts
DISCLAIMER AND CONTACTS The manager responsible for preparing the company’s financial reports Mr. Giuseppe Malato of Credito Emiliano S.p.A., declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corres
Credito Emiliano S.p.A. (Credem Group) — H1 2024 Earnings Presentation on 6ix