Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca — Q1 FY2019/20 Earnings Presentation
32 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, Oct 24, 2019
Slide 1: Positive Start to FY19/20: 1Q20/3M Results as at 30 September 2019
MEDIOBANCA POSITIVE START TO FY19/20 1Q20/3M RESULTS AS AT 30 SEPTEMBER 2019 Milan, 24 October 2019
Slide 2: Agenda
AGENDA Section 1. Group results as at September 2019 Section 2. Closing remarks Annexes 1. Quarterly segmental reporting tables 2. Asset quality details by segment 3. Glossary
Slide 3: Positive start to FY19/20: net profit up 10%, ROTE>10%
POSITIVE START TO FY19/20: NET PROFIT UP 10%, ROTE>10% SUSTAINABILITY AND DISTINCTIVENESS OF MB ACCRETIVE VALUE CYCLE CONFIRMED ONCE AGAIN MB continues on its growth roadmap, leveraging on the effectiveness of its diversified business model with focus on high-margin, specialized, growing businesses
Slide 4: Progress in all divisions
PROGRESS IN ALL DIVISIONS 3M results as at September 2019 Section 1 WM: enhancement of awareness and positioning reflected in sound NNM and AUM/AUA growth Affluent: at the top level of asset gatherer sector by NNM. Growth in TFAs, with improving mix, revenue & profit With NNM at €0.5bn in AUM/AUA in
Slide 5: Progress in all divisions
PROGRESS IN ALL DIVISIONS 3M results as at September 2019 Section 1 Larger CIB: M&A and strong positioning strategic to offset ongoing pressure in European CIB segment Sound client business in the quarter, lower prop trading NII stable QoQ and YoY, at €69m, despite ongoing pressure on large corporat
Slide 6: Increase in revenue-generating assets & diversification delivered steady revenues growth
INCREASE IN REVENUE-GENERATING ASSETS & DIVERSIFICATION DELIVERED STEADY REVENUES GROWTH Steady loan book … … and robust TFAs growth … …generated steady increase in revenues (€bn) (€bn) (€m, 3m) 3YCAGR : +9% 3YCAGR : +7% 3YCAGR : +11% +7% +6% +5% 684 638 45,0 598 68 137 1.9 65 530 99 2.0 91 36,8 2.2
Slide 7: Unbroken growth in NII despite negative rate
UNBROKEN GROWTH IN NII DESPITE NEGATIVE RATE DUE TO DISTINCTIVE BUSINESS AND FUNDING MIX 3M results as at September 2019 Section 1 NII by division (€m, 3m) Loans by division (€bn) Consumer Banking Mortgages 359 +7% FY19 avg: 349 +16% FY18 avg: 340 332 344 349 70 66 68 69 13.2 13.4 9.5 69 67 64 66 69
Slide 8: Higher light fees offset subdued capital markets and costs
HIGHER K-LIGHT FEES (WM & ADVISORY) OFFSET SUBDUED CAPMKT AND COSTS TO ENHANCE DISTRIBUTION NETWORK 3M results as at September 2019 Section 1 Group fees by quarter (€m, 3m) CIB fees by product (€m) 57 57 Lending 53 12 9 FY18 avg: 155 10 9 155 Specialty fin FY19 avg: 153 12 10 11 155 10 14 150 Capmkt
Slide 9: TFAs up 5% YoY, strong NNM in Affluent and PB
TFAS UP 5% YOY, STRONG NNM IN AFFLUENT AND PB CHEBANCA! AT TOP LEVEL IN SECTOR FOR NNM OF MANAGED PRODUCTS 3M results as at September 2019 Section 1 Group TFAs stock by product (€bn) Group AUM/AUA NNM by segment (€bn, 3m) 68 68 1.2 0.4 65 6.5 6.0 0.6 0.3 7.5 0.5 0.3 (0.1) 0.5 1.1bn 22.4 22.6 0.2 0.5
Slide 10: Asset quality confirmed as strong despite new DoD
ASSET QUALITY CONFIRMED AS STRONG DESPITE NEW DOD GROUP COR AT 58BPS, STILL BENEFITING FROM WRITEBACKS IN WB 3M results as at September 2019 Section 1 Cost of risk by division (bps) Net NPL (“deteriorate”, €m) and coverage (%) 57% 55% 53% 60% 1200.0 185 50% 1000.0 842 926 806 800.0 ~120m New 40% DoD
Slide 11: Solid capital generation/optimization
SOLID CAPITAL GENERATION/OPTIMIZATION 3M results as at September 2019 Section 1 CET1¹ up to 14.2% RWA optimization ongoing also in FY20 AIRB AIRB corporate mortgages +60bps 60.0 90% 14.1% 14.2% 77% 75% +10bps 58.0 80% 66% 56.0 59% 70% -30bps -30bps 56% 54.0 60% 52.0 50% 50.0 40% 48.0 53.9 30% 52.7 4
Slide 12: Agenda
AGENDA Section 1. Group results as at September 2019 Section 2. Closing remarks Annexes 1. Quarterly segmental reporting tables 2. Asset quality details by segment 3. Glossary
Slide 13: Closing remarks
CLOSING REMARKS Closing remarks Section2 In the last 3Y¹ we have significantly enlarged and reshaped the Group despite the low growth/yield environment Leveraging distribution and asset growth (AUM up 31%¹ to €39bn, loans up 9%¹ to €44bn, funding up 3%¹ to €51bn) and keeping gearing low (cost/income
Slide 14: Agenda
AGENDA Section 1. Group results as at September 2019 Section 2. Closing remarks Annexes 1. Quarterly segmental reporting tables 2. Asset quality details by segment 3. Glossary
Slide 15: Quarterly segmental reporting tables
QUARTERLY SEGMENTAL REPORTING TABLES Annex 1 15
Slide 16: Mediobanca Group P&L
MEDIOBANCA GROUP P&L 3M results as at September 2019 Annex 1 1Q20 4Q19 3Q19 2Q19 1Q19 D D €m Sept19 June19 Mar19 Dec18 Sept18 QoQ1 YoY1 Total income 684 641 607 639 638 +7% +7% Net interest income 359 349 346 357 344 +3% +4% Fee income 155 150 149 158 155 +3% 0% Net treasury income 35 46 53 57 41 -2
Slide 17: Mediobanca Group A&L
MEDIOBANCA GROUP A&L 3M results as at September 2019 Annex 1 D D €bn Sept19 June19 Sept18 QoQ1 YoY1 Funding 52.6 51.4 49.6 +2% +6% Bonds 19.3 18.5 18.6 +4% +4% Direct deposits (retail&PB) 22.6 22.4 20.8 +1% +9% ECB 4.3 4.3 4.3 - - Others 6.4 6.1 6.0 +5% +7% Loans to customers 45.0 44.4 42.3 +1% +6%
Slide 18: Wealth Management results
WEALTH MANAGEMENT RESULTS 3M results as at September 2019 Annex 1 1Q20 4Q19 3Q19 2Q19 1Q19 D D €m Sept19 June19 Mar19 Dec18 Sept18 QoQ1 YoY1 Total income 140 138 137 137 136 +2% +3% Net interest income 69 66 66 64 64 +4% +7% Fee income 70 71 69 71 70 -2% 0% Net treasury income 2 1 2 2 2 +125% 0% Tot
Slide 19: Affluent & Premiere: CheBanca! results
AFFLUENT & PREMIERE: CHEBANCA! RESULTS 3M results as at September 2019 Annex 1 1Q20 4Q19 3Q19 2Q19 1Q19 D D €m Sept19 June19 Mar19 Dec18 Sept18 QoQ1 YoY1 Total income 77 77 74 74 72 0% +7% Net interest income 55 53 53 52 53 +3% +4% Fee income 22 23 21 22 19 -5% +15% Total costs (60) (62) (59) (57) (
Slide 20: Private Banking results
PRIVATE BANKING RESULTS 3M results as at September 2019 Annex 1 1Q20 4Q19 3Q19 2Q19 1Q19 D D €m Sept19 June19 Mar19 Dec18 Sept18 QoQ1 YoY1 Total income 63 61 63 63 64 +3% -1% Net interest income 14 13 13 12 12 +12% +22% Fee income 47 48 49 49 50 -1% -6% Net treasury income 2 1 1 2 2 -6% Total costs
Slide 21: Consumer Banking results
CONSUMER BANKING RESULTS 3M results as at September 2019 Annex 1 1Q20 4Q19 3Q19 2Q19 1Q19 D D €m Sept19 June19 Mar19 Dec18 Sept18 QoQ1 YoY1 Total income 267 257 257 256 257 +4% +4% Net interest income 235 224 224 227 223 +5% +5% Fee income 33 33 32 29 34 -1% -4% Total costs (70) (77) (75) (74) (68)
Slide 22: CIB results
CIB RESULTS 3M results as at September 2019 Annex 1 1Q20 4Q19 3Q19 2Q19 1Q19 D D €m Sept19 June19 Mar19 Dec18 Sept18 QoQ1 YoY1 Total income 150 149 145 174 159 0% -6% Net interest income 69 68 66 70 69 +1% 0% Fee income 57 53 52 66 57 +8% 0% Net treasury income 24 28 27 38 34 -16% -29% Total costs (
Slide 23: WB results
WB RESULTS 3M results as at September 2019 Annex 1 1Q20 4Q19 3Q19 2Q19 1Q19 D D €m Sept19 June19 Mar19 Dec18 Sept18 QoQ1 YoY1 Total income 120 119 111 138 127 +1% -5% Net interest income 48 47 44 50 48 +1% 0% Net treasury income 24 29 26 38 34 -18% -30% Fee income 49 43 41 50 45 +13% +8% Total costs
Slide 24: Specialty Finance results
SPECIALTY FINANCE RESULTS 3M results as at September 2019 Annex 1 1Q20 4Q19 3Q19 2Q19 1Q19 D D €m Sept19 June19 Mar19 Dec18 Sept18 QoQ1 YoY1 Total income 30 30 34 36 32 -3% -9% Net interest income 21 21 22 20 20 0% +2% Fee income and other income 9 10 12 16 12 -10% -27% Total costs (13) (13) (13) (1
Slide 25: Principal Investing results
PRINCIPAL INVESTING RESULTS 3M results as at September 2019 Annex 1 1Q20 4Q19 3Q19 2Q19 1Q19 D D €m Sept19 June19 Mar19 Dec18 Sept18 QoQ1 YoY1 Total income 137 102 60 72 99 +35% +39% Gains from disposals 0 0 0 0 0 Impairments 3 3 4 (15) 4 Net result 136 95 60 60 99 +43% 38% Book value (€bn) 4.2 3.9
Slide 26: Holding Function results
HOLDING FUNCTION RESULTS 3M results as at September 2019 Annex 1 1Q20 4Q19 3Q19 2Q19 1Q19 D D €m Sept19 June19 Mar19 Dec18 Sept18 QoQ1 YoY1 Total income (6) (1) 13 1 (7) Net interest income (16) (10) (13) (8) (15) Net treasury income 6 10 23 8 4 Fee income 4 (1) 4 1 4 Total costs (38) (50) (46) (43)
Slide 27: Asset quality details by segment
ASSET QUALITY DETAILS BY SEGMENT Annex 2 27
Slide 28: Asset quality details by segment
ASSET QUALITY DETAILS BY SEGMENT 3M results as at September 2019 Annex 2 NPLs Bad loans Coverage As % of loans (“deteriorate”) (“sofferenze”) From stage 2 79% 81% for new DoD ~120 -29% 2.0% 2.1% Mediobanca +12% 926 828 58% Group 113 80 53% 0.3% 0.2% Sept18 Sept19 Sept18 Sept19 Sept18 Sept19 Sept18 S
Slide 29: Glossary
GLOSSARY Annex 3 MEDIOBANCA 29
Slide 30: Glossary
GLOSSARY MEDIOBANCA BUSINESS SEGMENT PROFIT & LOSS (P&L) and BALANCE SHEET CIB Corporate and investment banking DPS Dividend per share WB Wholesale banking EPS Earning per share SF Specialty finance FAs Financial Advisors CB Consumer banking FVOCI Fair Value to Other Comprehensive Income WM Wealth m
Slide 31: Disclaimer & declaration of Head of Financial Reporting
DISCLAIMER & DECLARATION OF HEAD OF FINANCIAL REPORTING As from this fiscal year results, the Mediobanca Group is adopting IFRS 9 to represent its financial instruments. The transition to the new standard has resulted in an approx. €81m reduction in net equity, chiefly due to the introduction of the
Slide 32: Investor contacts
INVESTOR CONTACTS Mediobanca Group Investor Relations Piazzetta Cuccia 1, 20121 Milan, Italy Jessica Spina Tel. no. (0039) 02-8829.860 Luisa Demaria Tel. no. (0039) 02-8829.647 Matteo Carotta Tel. no. (0039) 02-8829.290 Marcella Malpangotto Tel. no. (0039) 02-8829.428 Email: investor.relations@medio