Credito Emiliano S.p.a. · MIL:CE

Credito Emiliano — 9M23 Earnings Presentation

23 slides from Credito Emiliano's earnings presentation, 2023

  1. Slide 1: Group Results 9M23

    yr S= GROUP RESULTS 9M23

  2. Slide 2: 9M23: Loans Growth and Asset Quality

    9M23: LOANS GROWTH AND ASSET QUALITY Loans Direct Funding LOANS GROWTH Loans to customers stood at 34.4 billion, up by +6.5% 3.6% YoY, more than almost 8 p.p. compared to +3.6% the Industry, down by 4.1% YoY. Direct funding up by 6.5% YoY, in sharp contrast to the Industry, down by 2.1% YoY -4.1% -2

  3. Slide 3: 9M23: Profitability and Capital Soundness

    9M23: PROFITABILITY AND CAPITAL SOUNDNESS PROFITABILITY Strong growth of Net profit, up by more than 94% €439 vs 9M22 at 439 million MLN 20.0% 17.2% Profitability ratios at the highest level in the Industry, ROTE and ROE at 20.0% and 17.2% respectively UTILE NETTO ROTE ROE 9M23 CAPITAL SOUNDNESS 14.

  4. Slide 4: Business Diversification

    BUSINESS DIVERSIFICATION Operating Income 357.6 331.1 352.5 437.3 475.6 478.7 464.7 Core Operating Income** 318.6 329.0 345.4 429.5 425.5 463.6 461.8 €/million 0.0% 0.3% 0.5% 0.2% 0.3% 0.6% 2.0% 0.4% 1.6% 1.6% 2.9% 0.0% 10.9% 8.5% 44% 47% 36% 51% 56% 61% 49% 53% 55% 51% 47% 40% 41% 38% 1Q22 2Q22 3Q2

  5. Slide 5: Contribution to Consolidated Net Profit

    CONTRIBUTION TO CONSOLIDATED NET PROFIT Commercial banking Credem Banca €279.2 mln Private Banking Credem Euromobiliare €43.5 mln Private Banking Extended Banking Services, Consumer Credit & Other Credem Factor Credemtel €52.6 mln Credem Leasing Avvera Blue Eye MGT SATA Wealth Management Euromobilia

  6. Slide 6: Reclassified Income Statement

    RECLASSIFIED INCOME STATEMENT Δvs ∆ vs €/million 2Q23 3Q23 9M22 9M23 2Q23 9M22 • The remarkable growth in revenues continued Net Interest Income 269.5 284.1 5.4% 438.7 788.4 79.7% (+36.3% vs 9M22), mainly driven by the growth of NII Non Interest Margin 209.1 180.6 -13.6% 602.5 630.5 4.6% and the exc

  7. Slide 7: Net Interest Income (1/3)

    NET INTEREST INCOME (1/3) Net Interest Income (€/mln) Euribor and BTP/Bund spread 284 223 209 270 192 180 170 6.0% 5.9% 5.8% 5.7% 149 5.6% 5.5% 5.4% 5.3% 5.2% 5.1% 224 235 187 3.36% 5.0% 4.9% 4.8% 4.7% 4.6% 4.5% 4.4% 4.3% 4.2% 4.1% 4.0% 3.9% 3.8% 2.63% 3.78% 3.7% 3.6% 3.5% 3.4% 3.3% 3.2% 3.1% 3.0% 2

  8. Slide 8: Net Interest Income (2/3)

    NET INTEREST INCOME (2/3) Customers’ spread 3.49 Loans to customers 4.49 3.25 4.12 3.93 3.08 3.66 3.57 2.94 2.90 2.76 2.99 3.16 2.392.42 2.14 2.18 2.35 2.54 1.88 1.81 1.70 1.74 1.73 1.53 1.57 1.49 1.54 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Credem: spread Industry: spr

  9. Slide 9: Net Interest Income (3/3)

    NET INTEREST INCOME (3/3) Securities portfolio breakdown (€/mln, %) Italian government bond (€/bn) 6.2 6.0 6.0 5.6 14,060 14,824 14,656 14,683 12,996 11,860 12,468 4.8 4.7 4.2 Ita Govies 9M23 HTC 4.7 HTCS 0.1 40% 38% 35% 38% FVTPL 0.0 42% 41% 41% Total 4.8 4% 1Q22 1H22 9M22 FY22 1Q23 1H23 9M23 4% 4%

  10. Slide 10: Non Interest Margin

    NON INTEREST MARGIN Total *(€/mln) 228.6 185.8 188.1 213.8 240.8 209.1 180.6 Performance Fees 38.9 6.8 40.5 13.8 Income from Financial 1.2 5.5 58.7 53.7 0.2 Activities 54.3 53.6 56.0 55.9 54.1 Banking Fees 15.9 26.9 24.1 12.3 16.2 21.7 19.8 Insurance Income 114.3 107.8 103.4 110.1 109.3 109.9 97.8 A

  11. Slide 11: Operating Costs and D&A

    OPERATING COSTS AND D&A Operating costs (€/mln) Employees 6,608 6,616 6,658 200 194 185 216 210 210 192 6,068 6,140 6,195 6,201 6,219 5,544 5,519 5,604 5,609 5,763 5,899 66 63 65 57 57 55 62 143 137 151 147 145 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 3Q23 130 131 Financial A

  12. Slide 12: Loans to Customers

    LOANS TO CUSTOMERS Loans to customers (€/bn) 10.0 9.8 9.8 Other Loans 10.2 9.9 9.8 10.1 Residential Mortgage 9.9 10.1 10.4 10.5 9.6 9.7 9.8 Leasing 3.0 3.1 3.2 3.2 3.2 3.3 Consumer Finance 3.0 2.4 2.5 2.7 2.8 3.0 3.1 2.2 Short-Term Loans 7.9 8.3 8.0 8.8 7.9 8.3 7.8 1Q22 1H22 9M22 2022 1Q23 1H23 9M23

  13. Slide 13: Group Customers Funding: Net Inflows Breakdown

    GROUP CUSTOMERS FUNDING: NET INFLOWS BREAKDOWN AUC Direct Deposits AUM + Insurance Total Net Inflows 4,592 3,268 3,410 3,552 2,962 2,303 1,336 1,880 1,490 1,319 845 930 970 700 611 129 237 -211 -454 -895 9M19 9M20 9M21 9M22 9M23 Net Production kept growing vs 9M22 and stood at €3.3 billion. Net flow

  14. Slide 14: Deposits, AUM and Insurance

    DEPOSITS, AUM AND INSURANCE Total funding Direct deposits & retail bonds** €/mln 9M22 FY22 9M23 Sight / Saving Depo. 33,677 35,378 35,631 Industry Credem +6.5% YoY Retail Bonds & Other Deposits* 997 951 1,287 +161% Total Direct Funding 34,674 36,329 36,918 Insurance Reserves** 7,735 7,704 7,863 -2.1

  15. Slide 15: Asset Quality: Gross NPL Ratio and Cost of Risk

    ASSET QUALITY: GROSS NPL RATIO AND COST OF RISK 2021 600 Gross Non Performing Loans (€/mln,%) 398 378 373 2022 321 317 353 300 9M23 Bad Loans 52 • Gross Total NPL decreased and stood at Disposal ~86 mn ~14 mn 43 42 0 remarkably low level, at 723 million, Gross Bad Loans Gross UTP Loans Gross Past Du

  16. Slide 16: NPL: Coverage

    NPL: COVERAGE NPL (€/mln) Gross Net Coverage Bad Loans 317.4 82.0 74.2% UTP Loans 353.3 202.8 42.6% Past Due 52.1 40.2 22.8% Total NPL 722.8 325.0 55.0% + Net NPL +325.0 NPL Coverage - (Shortfall + Addendum + Calendar) -56.8 NPL Net of Shortfall 268.2 74.2% Coverage incl. Shortfall 62.9% 62.9% 55.0%

  17. Slide 17: Asset Quality: Benchmarking

    ASSET QUALITY: BENCHMARKING Gross NPL Ratio (%) Stage 2 (% of gross loans) EBA** 11.2% threshold 9.2% 2.8% 6.4% 6.1% 2.4% 2.3% 2.1% 2.1% 2021 2022 3Q23 2Q23 ITA 2Q23 EU 2022 9M23 1H23 ITA 1H23 EU Coverage The Group's excellent asset quality is best in class in the 65% Credem + EBA** industry thanks

  18. Slide 18: Assets & Liabilities

    ASSETS & LIABILITIES Assets (€/mln) 34,429 34,761 1H23 9M23 • The securities portfolio increased due to some purchases of domestic bonds 8,419 7,409 8,171 • The remaining TLTRO III exposure was 6,922 6,335 5,059 5,491 4,938 reduced to 740 million, after the TLTRO repayment of 200 million in the quar

  19. Slide 19: Bonds Issuances and Maturities

    BONDS ISSUANCES AND MATURITIES Issuances (€/mln) Maturities (€/mln) Covered Bond 100 + 750 Green Bond SP 600 + Retail bond 150 CB 500 + 150 Green Bond Green Bond SNP 400+ SP 600+ Covered Social SP Bond +Social T2* SNP 500 + 200 500+ 600 500+Green Social CB 750 Retail bond SNP 400 SP 500+ 150+95 Cove

  20. Slide 20: Liquidity (1/2)

    LIQUIDITY (1/2) Liquidity Reserves (€/bn) • The total value of the Group's Liquidity 17.1 Reserves increased compared to the Total end of 1H23, reaching a total amount of 16.0 €17.1 billion Other ECB eligible 5.6 • The value of Cash and deposits with unencumbered assets 5.6 Central Banks increased t

  21. Slide 21: Liquidity (2/2)

    LIQUIDITY (2/2) NSFR LCR 232% 136% 137% 205% 134% 169% 2021 FY22 9M23E 2021 FY22 9M23 Loan to Deposit Ratio* 0.93 0.95 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. LCR at 169

  22. Slide 22: Consolidated Capital Ratios

    CONSOLIDATED CAPITAL RATIOS Fully phased data Fully phased data Credem Group Credemholding €, million 2022* 9M23 2022* 9M23 CET 1 2,916 3,220 2,649 2,951 Total Capital 3,320 3,630 3,193 3,504 Capital absorption from: 1,503 1,587 1,515 1,599 Credit and Counterparty 1,333 1,417 1,332 1,417 Market 9 8

  23. Slide 23: Disclaimer and Contacts

    DISCLAIMER AND CONTACTS The manager responsible for preparing the company’s financial reports Mr. Paolo Tommasini 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) — 9M23 Earnings Presentation on 6ix