Unicredit S.p.a. · MIL:UCG
Unicredit — Debt Investor Presentation (September 2015)
33 slides from Unicredit's debt investor presentation, Sep 2, 2015
Slide 1: UniCredit Group: 2Q15 results Presentation to Fixed Income Investors
UniCredit Group: 2Q15 results Presentation to Fixed Income Investors Milan, 2nd September 2015
Slide 2: Disclaimer
Disclaimer This Presentation may contain written and oral “forward-looking statements”, which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, p
Slide 3: UniCredit at a glance
UniCredit at a glance A clear international profile based on a strong European identity UniCredit Highlights Shareholders’ Structure(1) Strong local roots in almost 17 countries Institutional Investors Around 127,000 employees 33% 41% Stable Shareholders About 7,000 branches Retail Over 32.5
Slide 4: Executive summary
Executive summary Earnings Group net profit at 522m in 2Q15 with a RoTE of 5%, and above1bn in 1H15 with a RoTE of 5% generation CET1 ratio fully loaded at 10.37%. Valuing the AFS reserve as of today and including Pioneer deal, CET1 ratio fully loaded at 10.84% Building CET1 ratio transitional
Slide 5: Agenda
Agenda Group Core Bank Non Core Financials 5 UniCredit Group - INTERNAL USE ONLY -
Slide 6: Group – Results
Group – Results Net profit over 1bn in 1H15 with 5% RoTE and positive quarterly development Total assets, bn Tangible equity, bn +2.3% Net profit, m +4.6% -2.8% -2.4% -7.3% 901 43.5 45.9 43.8 45.6 44.6 856 875 837 844 1,116 1,034 29.5% +2.0% Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Jun-14 Sep-14 Dec-14 Ma
Slide 7: Group – Asset quality
Group – Asset quality Gross impaired continued reduction supported by NPL sales and net outflows from impaired loans. Coverage ratio on impaired at 51% Gross impaired loans(1), bn Gross bad loans (sofferenze)(1), bn -3.1% +1.0% -1.6% -1.4% 83.6 82.4 84.4 83.2 49.1 49.6 52.1 51.4 51.3 81.7 Net bad 18
Slide 8: Asset quality in Italy
Asset quality in Italy Confirmed better asset quality trend vs. banking system UCI Spa(1) ABI sample(2) Gross impaired loans Gross bad loans (sofferenze) Other gross impaired loans Base 100 at Dec-12 Base 100 at Dec-12 Base 100 at Dec-12 141 155 127 127 139 126 137 150 146 118 138 138 127 135 134 11
Slide 9: Group – Regulatory capital (1/3)
Group – Regulatory capital (1/3) CET1 ratio fully loaded at 10.37% in Jun-15, up to 10.84% proforma for AFS reserves as of today and Pioneer deal 10.84% incl.: - AFS res. as +27bp of today (+22bp) +37bp 10.37% - Pioneer deal (+25bp) +13bp -5bp -17bp 10.10% o/w AFS reserves: -32bp. As of today, AFS r
Slide 10: Group – Regulatory capital (2/3)
Group – Regulatory capital (2/3) CET 1 ratio transitional up by 66bp Q/Q to 10.52% mainly thanks to earning generation in 1H15 and RWA dynamics in the quarter +66bp 10.92% incl. Pioneer deal +37bp +1bp 10.52% +25bp -9bp +13bp 9.86% Mar-15 1H15 earnings Div. accrual 2014 scrip RWAs Other Jun-15 trans
Slide 11: Group – Regulatory capital (3/3)
Group – Regulatory capital (3/3) RWA decreased by 15bn q/q mainly due to credit and market risk components RWA eop, bn RWA main drivers, bn +1.8% 420.6 -4.6 Market -3.5% Credit -4.2 421 -2.0 -0.4 Other(1) -2.8 406 -3.0 44 -0.5 399 -2.5 -2.4 - regulation -1.1bn 405.9 43 - procyclicality -1.7bn Operat
Slide 12: Group – Medium-long term funding plan
Group – Medium-long term funding plan 2015 Group Funding Plan on track; 2015 Funding Plan for Italy well ahead Funding mix, managerial data % of M/L term run offs by region(1) 10.1bn TLTRO 7.9bn TLTRO 32.0bn not included 26.6bn not included 29.2bn 24.6bn 28.2bn 13.8bn Germany 23% 12% 26% 59% 23% Ita
Slide 13: UniCredit has continuous wholesale market access
UniCredit has continuous wholesale market access Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 18/02/2015 MS + 3 bps 10Y 31/03/2015 23/04/2015 17/07/2015 01/09/2015 15/10/2014 12/01/2015 Pfand MS -14 bps MS + 45 bps MS – 13 bps MS + 5 bps MS + 370 bps 3mE + 105
Slide 14: Very strong liquidity position confirmed
Very strong liquidity position confirmed 1-year Group liquidity buffer exceeds 12m wholesale funding Liquidity buffer (12 months) as of June 2015 (€bn) (1) 177 Additional eligible assets 36 available within 12 months Cash and Deposits 27 with Central Banks Unencumbered assets 141 114 (immediately av
Slide 15: Ratings Overview
Ratings Overview Issuer Ratings(1) Recent actions and key individual rating drivers Italy BBB-/Stable/A3 On the 18th December 2014, UC SpA's rating was aligned with the sovereign Italy, as S&P's criteria caps the rating at the same level UC SpA BBB-/Stable/A3 On the 9th of June 2015, S&P maintai
Slide 16: Leverage Ratio
Leverage Ratio A sound level is confirmed, comparing well with peers Leverage Ratio 6.7 5.9 5.6 4.8 4.3 4.3 4.4 4.0 4.1 3.6 3.7 3.8 3.6 Fully Loaded 2.7 BIS3 Leverage Ratio, % (Jun. 2015) (2) (2) (3) (1) CS DB UBS BNP SG CBK Barclays CASA UCG Nordea SAN Erste BBVA ISP (1) Transitional Data. (2) Swis
Slide 17: Agenda
Agenda Group Core Bank Non Core Financials 17 UniCredit Group - INTERNAL USE ONLY -
Slide 18: Core Bank – Net profit
Core Bank – Net profit Net profit at 1.7bn in 1H15 and RoAC above 9% with positive contribution from all divisions, embedding additional charges for SRF in Italy & Germany for FY15 Net profit, m Divisional breakdown – 2Q15 net profit, m RoAC(1) -3.9% 1,766 CB Italy 570 27.9% 1,697 +7.9% CB Germany 8
Slide 19: Core Bank – Net operating profit
Core Bank – Net operating profit Net operating profit slightly up in 1H15 supported by higher revenues Revenues, m +1.9% +0.1% 11,167 11,377 5,686 5,685 5,693 Net operating profit, m 2Q14 1Q15 2Q15 1H14 1H15 +0.5% Costs, m 3,626 3,643 +2.0% +1.6% -4.9% 6,418 6,550 3,185 3,249 3,301 1,902 1,867 1,776
Slide 20: Core Bank – Total revenues
Core Bank – Total revenues Core revenues (net interest and net fees) up q/q and y/y. Higher dividends in 2Q15 fully offsetting slowdown of trading after a buoyant 1Q15 Net interest(1), m Net fees and commissions, m -3.5% +5.2% 6,141 5,927 3,933 3,737 +1.8% -0.1% 3,127 2,937 2,990 1,907 1,968 1,966 2
Slide 21: Core Bank – Net interest income
Core Bank – Net interest income Net interest up in 2Q15 with deposits re-pricing mitigating the impact of low customer rates on loans dynamics Net interest bridge q/q , m +1.8% 3,011 Euribor 3M -10 -3 2,990 +20 +0 +74 2,937 -5bp -129 +101 q/q Commercial dynamics: -21m 1Q15 Days and Baseline Loans De
Slide 22: Core Bank – New origination in commercial banks
Core Bank – New origination in commercial banks MLT flows strongly up by over 37.6% in 1H15 at 15.4bn, driven by corporates in Italy and Germany and households in Germany and Austria New flows o/w household mortgages o/w mid corporates +45.3% +99.2% +4.7% 8,488 3,769 1,652 1,731 5,843 CB Italy, m 1,
Slide 23: Core Bank – Fees and commissions
Core Bank – Fees and commissions Fees at almost 2bn in 2Q15, stable q/q and up y/y thanks to investment fees. Transactional fees up q/q mainly due to credit cards in CEE & Poland Net fees and commissions, m Investment services fees, m +5.2% c.60% recurring +12.3% fees(1) -1.2% 1,897 3,933 1,689 3,73
Slide 24: Core Bank – Total costs
Core Bank – Total costs Other administrative expenses down in 1H15 due to lower discretionary costs mitigating the impact of staff expenses driven by variable compensation Costs, m Staff expenses, m +3.4% +2.0% +1.8% 4,013 4,150 1,967 2,057 2,093 6,418 6,550 2Q14 1Q15 2Q15 1H14 1H15 +1.6% Other admi
Slide 25: Core Bank – Loan loss provisions
Core Bank – Loan loss provisions LLP increased q/q due to CIB and CEE resulting in a cost of risk at 56bp in 2Q15 Loan loss provisions, m Divisional breakdown – 2Q15 cost of risk, bp q/q y/y +5.5% CB Italy 78 -7bp -12bp 1,185 1,123 CB Germany 21 +8bp +18bp +8.1% CB Austria -25 -48bp -29bp 599 569 61
Slide 26: Agenda
Agenda Group Core Bank Non Core Financials 26 UniCredit Group - INTERNAL USE ONLY -
Slide 27: Non Core – Main trends
Non Core – Main trends Gross loans further down by 2bn q/q (-11bn y/y) supported by NPL disposals and proactive deleveraging, leading to a decrease of RWA by 1.3bn q/q Gross customer loans, bn €, m 2Q14 1Q15 2Q15 Q/Q Y/Y 1H14 1H15 1H/1H Revenues 112 64 42 -34.7% -62.5% 219 106 -51.5% 80.7 -10.9bn Co
Slide 28: Non Core – Asset quality
Non Core – Asset quality Impaired loans confirmed downward trend driven by continued other impaired reduction. Bad loans stabilizing with NPL sales balancing internal migrations Gross bad loans (sofferenze)(1), bn -0.1% -3.1% 37.6 36.3 36.4 Gross impaired loans(1), bn 35.3 35.3 -3.8% -5.5% Net 12.6
Slide 29: Concluding remarks
Concluding remarks Group net profit over 1bn in 1H15 with a RoTE of 5%, already embedding the impact of systemic charges Net operating profit up in 1H15 supported by higher revenues in the Core bank confirming the strong commercial grip of our franchise CET1 ratio fully loaded increased to 10.
Slide 30: Agenda
Agenda Group Core Bank Non Core Financials 30 UniCredit Group - INTERNAL USE ONLY -
Slide 31: Group – P&L and volumes
Group – P&L and volumes Net profit at 1bn in 1H15 despite c.200m related to SRF, booked in Italy, Germany and Austria for FY15 Euro (m) 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 ∆ % vs. ∆ % vs. 1H14 1H15 ∆ % vs. 1Q15 2Q14 1H14 Total Revenues 5,588 5,798 5,561 5,604 5,749 5,735 -0.3% ▼ -1.1% ▼ 11,387 11,484 +0.9
Slide 32: Core Bank – P&L and volumes
Core Bank – P&L and volumes Revenues up in 1H15 supporting a positive progression of GOP Euro (m) 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 ∆ % vs. ∆ % vs. 1H14 1H15 ∆ % vs. 1Q15 2Q14 1H14 Total Revenues 5,481 5,686 5,476 5,531 5,685 5,693 +0.1% ▲ +0.1% ▲ 11,167 11,377 +1.9% ▲ Operating Costs -3,233 -3,185 -3,1
Slide 33: Non Core – P&L and volumes
Non Core – P&L and volumes Loss at 296m in 2Q15, improving q/q with lower cost of risk and lower costs more than offsetting lower revenues Euro (m) 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 ∆ % vs. ∆ % vs. 1H14 1H15 ∆ % vs. 1Q15 2Q14 1H14 Total Revenues 107 112 85 73 64 42 -34.7% ▼ -62.5% ▼ 219 106 -51.5% ▼ Ope
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