Banca Monte Dei Paschi Di Siena S.p.a. · MIL:BMPS
Banca Monte Dei Paschi Di Siena — 9M 2022 Earnings Presentation
26 slides from Banca Monte Dei Paschi Di Siena's earnings presentation, Nov 11, 2022
Slide 1: A Clear and Simple Commercial Bank - 9M 22 Financial Results
A Clear and Simple Commercial Bank 9M 22 Financial Results Siena, 11th November 2022
Slide 2: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Banca Monte dei Paschi di Siena S.p.A. (the “Company”) or any person on behalf of the Company, and any question-and-answer session
Slide 3: Executive Summary
Executive Summary ▪ EUR 2.5bn capital increase successfully completed, bringing fully loaded proforma CET1 ratio to 14.7% ▪ HR one-off restructuring costs of EUR -925mln relating to over 4,000 early retirements already booked in 3Q22 ▪ 3Q22 net profit excluding HR restructuring costs at EUR 537mln (
Slide 4: Net profit quarterly evolution
Net profit quarterly evolution €/mln 537 407 10 18 130 -925 -388 1Q22 2Q22 3Q22 Tax effect HR Restructuring costs Reported • 3Q22 net profit excluding HR restructuring costs at EUR 537mln, driven by pre-tax profit (EUR 130mln) and EUR +407mln positive tax effect. Including EUR -925mln HR one-off res
Slide 5: Net profit yearly evolution
Net profit yearly evolution €/mln 565 388 415 150 -925 -360 9M21 9M22 Tax effect HR Restructuring costs Reported • 9M22 net profit excluding HR restructuring costs at EUR 565mln, driven by pre-tax profit (EUR 150mln) and EUR +415mln positive tax effect. Including EUR -925mln one-off HR restructuring
Slide 6: Gross operating profit quarterly evolution
Gross operating profit quarterly evolution Operating income Gross operating profit €/mln +4.0% €/mln -1.7% 698 739 726 +9.6% -1.6% 206 202 3Q21 2Q22 3Q22 Operating costs 185 €/mln +2.0% -1.7% 514 533 524 3Q21 2Q22 3Q22 3Q21 2Q22 3Q22 • 3Q22 gross operating profit up by 9.6% y/y thanks to higher oper
Slide 7: Gross operating profit yearly evolution
Gross operating profit yearly evolution Operating income Gross operating profit €/mln €/mln -0.5% -2.5% 2,260 2,248 137 49 673 656 2,122 +3.7% 2,200 137 49 9M21 9M22 Operating costs +13.5% €/mln 608 535 +0.3% 1,587 1,592 9M21 9M22 Capital gains from securities disposal 9M21 9M22 • 9M22 gross operati
Slide 8: Net interest income
Net interest income Quarterly evolution Yearly evolution €/mln +21.2% €/mln +15.7% +12.7% 1,040 380 899 115 313 337 17 128 46 52 362 +20.1% 925 291 +24.7% 770 261 3Q21 2Q22 3Q22 9M21 9M22 Lending rate 1.79% 1.80% 2.11% 1.82% 1.90% Funding rate 0.13% 0.11% 0.12% 0.16% 0.12% Spread 1.66% 1.69% 1.99% 1
Slide 9: Net customer loans
Net customer loans Net loans Performing loans retail €/bn €/bn +1.2% +0.1% +0.3% -0.4% 31.1 31.4 31.4 72.8 73.2 72.9 Sep 21 Jun 22 Sep 22 Performing loans corporate €/bn -0.7% -0.9% 41.7 41.8 41.4 3.4 3.1 3.5 2.3 2.0 1.9 38.3 38.7 38.0 Sep 21 Jun 22 Sep 22 Performing loans NPEs Sep 21 Jun 22 Sep 22
Slide 10: Funding composition
Funding composition Quarterly evolution Retail funding €/bn €/bn -0.8% 0.0% -0.9% -0.1% 45.6 45.2 45.2 72.1 71.5 71.4 6.9 5.7 5.2 Sep 21 Jun 22 Sep 22 Corporate funding 65.2 65.8 66.2 €/bn -0.9% 13.8 -0.3% 11.9 11.4 26.5 26.3 26.2 Sep 21 Jun 22 Sep 22 Current accounts Term deposits Bonds and other S
Slide 11: Italian govies portfolio
Italian govies portfolio Italian govies portfolio breakdown Italian govies portfolio at FVTOCI €/bn 13.9 13.2 11.4 4.5 4.2 Sep 21 Jun 22 Sep 22 2.9 FVTOCI Duration ~2.2 ~1.7 ~2.1 4.4 (years) 4.1 3.6 FVTOCI Credit spread sensitivity -1.1 -0.9 -0.8 5.1 4.9 4.9 (€/mln) Sep 21 Jun 22 Sep 22 Amortized co
Slide 12: Net fee and commission income
Net fee and commission income quarterly evolution Banking fees Wealth Management fees €/mln €/mln +2.2% -20.7% -3.9% -15.2% 188 200 192 171 160 135 104 60 53 101 98 34 42 48 48 110 106 102 44 47 46 3Q21 2Q22 3Q22 3Q21 2Q22 3Q22 Loans Current accounts and other* Payments and cards Continuing fees Up-
Slide 13: Net fee and commission income
Net fee and commission income yearly evolution Banking fees Wealth Management fees €/mln €/mln +0.4% -11.4% 587 590 526 466 312 311 201 147 147 142 325 319 128 136 9M21 9M22 9M21 9M22 Loans Current accounts and other* Payments and cards Continuing fees Up-front fees • Banking fees up 0.4% y/y • Weal
Slide 14: Indirect funding
Indirect funding Indirect funding breakdown AuM & Bancassurance breakdown €/bn Market effect €/bn -12.7% y/y q/q -1.7% -11.0% -2.3% 104.8 64.4 58.9 58.0 93.1 91.5 8% 8% 8% 40.3 34.2 33.5 46% 47% 47% 64.4 58.9 58.0 46% 45% 45% Sep 21 Jun 22 Sep 22 Sep 21 Jun 22 Sep 22 AuM & Bancassurance Asset under
Slide 15: Operating costs
Operating costs quarterly evolution HR costs Operating costs €/mln €/mln -1.2% -0.8% 359 358 +2.0% 357 354 -1.7% 533 533 524 514 2Q21 3Q21 2Q22 3Q22 Non-HR costs €/mln +9.3% -3.6% 174 176 170 155 2Q21 3Q21 2Q22 3Q22 2Q22 3Q21 2Q22 3Q22 • HR costs lower both q/q and y/y • Non-HR costs lower 3.6% q/q
Slide 16: Operating costs
Operating costs yearly evolution HR costs Operating costs €/mln -1.0% €/mln 1,077 1,067 +0.3% 1,587 1,592 9M21 9M22 Non-HR costs €/mln +3.1% 510 526 9M21 9M22 9M21 9M22 • HR costs down -1% y/y • Non-HR costs dynamic affected by one-off cost release in 3Q21 16
Slide 17: HR reduction
HR reduction HR manoeuvre: >4k voluntary exits • Optimization of workforce: >4k voluntary exits from 1st December 2022, with expected annual cost savings of more than EUR 300mln HQ and network non Total HR reduction branch staff Branch staff • HR exits skewed towards HQ and non-branch staff • Operat
Slide 18: Gross NPE stock
Gross NPE stock Gross NPE stock Breakdown by category €/bn -3.9% €/bn +0.5% 4.3 4.3 4.1 4.1 4.1 4.1 -24% y/y 3.2 2.6 2.3 2.2 3.2 1.9 1.7 1.8 1.9 1.3 Sep 21 Jun 22 Sep 22 Sep 22 Sep 21 Jun 22 Sep 22 Sep 22 proforma proforma Gross NPE Bad loan UTP + Past due 5.0% 4.9% 5.0% 4.0% ratio Net NPE ratio 2.7
Slide 19: Coverage and cost of risk
Coverage and cost of risk NPE coverage breakdown Cost of risk (bps) 64.9% 63.3% 65.0% 34.5% 34.6% 36.6% 25.2% 24.6% 26.4% 56 58 49 Bad loan Coverage UTP Coverage Past Due Coverage 9M22 CoR Sep 21 Jun 22 Sep 22 proforma proforma 55bps Total NPE coverage 5 Bad loans/ Total NPEs 47.8% proforma 9M21 1Q2
Slide 20: Capital
Capital CET1 ratio phased-in Regulatory capital ratio phased-in Sep 22 Sep 21 Jun 22 Sep 22 proforma SREP 15.7% 12.3% 11.7% CET1 ratio (%) 12.3% 11.7% 10.0% 15.7% 8.80% 10.0% 8.8% Tier 1 ratio (%) 12.3% 11.7% 10.0% 15.7% 10.81% Total capital 15.9% 15.4% 13.9% 19.5% 13.50% Sep 21 Jun 22 Sep 22 Sep 22
Slide 21: Petitum
Petitum €/bn Gross petitum • September 2022 petitum reflects all Sep 21 Jun 22 Sep 22 claims already disclosed in 2Q22 results Financial information 2014-2015 0.2 0.3 0.3 presentation Claims Financial information 2008-2011 0.5 0.5 1.2 • In October 2022 two extrajudicial claims excluding civil Subord
Slide 22: Conclusions
Conclusions ▪ Implementation of business plan in line with targets (key actions on capital increase, HR cost reduction and merger of IT factory effective as of 1 December 22) ▪ Solid balance sheet with strong capital ratios following EUR 2.5bn capital increase ▪ Further upside deriving from net inte
Slide 23: Annexes
Annexes E DEI PASCHI DI SIENA
Slide 24: Reclassified Income Statement
Reclassified Income Statement 3Q22/ 9M22/ € mln 3Q22 2Q22 1Q22 9M22 9M21 2Q22(%) 9M21(%) Net Interest Income 380 337 323 1,040 899 +12.7% +15.7% Net fees and commission income 327 359 369 1,055 1,113 -9.0% -5.2% Profit (loss) of equity-accounted investments (AXA) 27 -3 14 38 67 n.m. -42.7% Core Reve
Slide 25: Balance Sheet
Balance Sheet Total Assets (€/mln) Sep-21 Dec-21 Jun-22 Sep-22 QoQ% YoY% Loans to Central banks 20,941 20,770 17,627 4,426 -74.9% -78.9% Loans to banks 3,344 3,493 1,432 2,716 89.6% -18.8% Loans to customers 81,200 79,380 78,622 77,939 -0.9% -4.0% Securities assets 24,961 22,127 22,313 19,794 -11.3%
Slide 26: Lending & Direct Funding
Lending & Direct Funding Total Lending (€/mln) Sep-21 Dec-21 Jun-22 Sep-22 QoQ% YoY% Current accounts 2,871 2,696 3,097 3,062 -1.1% 6.6% Medium-long term loans 57,014 56,268 55,808 55,702 -0.2% -2.3% Other forms of lending 12,935 13,152 14,267 14,105 -1.1% 9.0% Reverse repurchase agreements 6,095 5,
Banca Monte dei Paschi di Siena — 9M 2022 Earnings Presentation on 6ix