Banca Monte Dei Paschi Di Siena S.p.a. · MIL:BMPS
Banca Monte Dei Paschi Di Siena — Q4 2024 Earnings Presentation
40 slides from Banca Monte Dei Paschi Di Siena's earnings presentation, Feb 6, 2025
Slide 1: 4Q-24 & FY-24 Preliminary Results
A Clear and Simple Commercial Bank, Revolving Around Customers, Combining Technology With Human Touch 4Q-24 & FY-24 Preliminary Results Siena, 6th February 2025
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) IMPORTANT - YOU MUST READ THE FOLLOWING BEFORE CONTINUING: The information set out in this presentation is not intended to form the basis of any contract. By attending (whether in person, by telephone or webcast) this presentation or by reading the presentation slides, you agree to
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) IMPORTANT INFORMATION: In connection with the Offer, the required offer document will be sent to Commissione Nazionale per le Società e la Borsa (“CONSOB”) and, to the extent that the shares issued in connection with the proposed voluntary public exchange offer will be required to b
Slide 4: 4Q-24 & FY-24 Executive Summary
4Q-24 & FY-24 Executive Summary ▪ FY-24 net profit at €1,951m (+16.9% y/y on comparable basis) driven by solid operating performance also in 4Q, with net profit of €385m ▪ FY-24 gross operating profit at €2,165m, up +10.8% y/y thanks to revenues growth +6.2% y/y and effective cost management enablin
Slide 5: Dividend of €0.86 per share, Dividend Yield of 14%
… €1,083m, for a Dividend Yield of 14%, top of the banking sector €0.86 per share, a total of €1,083m D/Y 14%(1) Dividend yields (2) 14% 10% 9% 8% 8% 7% 7% 7% 7% 7% 6% 5% 5% 4% 4% 3% 3% 2% Notes: The dividend distribution will be subject to the AGM approval. (1) On the basis of stock price as at 31
Slide 6: Net Profit
Net Profit Quarterly Evolution (€m) Yearly Evolution (€m) -4.9% 2,052 1,951 (1) 345 (1) (2) 506 1,123 471 (1) 339 (2) +16.9% 466 1,445 407 385 1,236 318 390 348 4Q-23 3Q-24 4Q-24 FY-23 FY-24 • FY-24 net profit at €1,951m, up + 16.9% y/y on comparable basis driven by a sound operating performance, wi
Slide 7: Gross Operating Profit (Quarterly)
Gross Operating Profit Quarterly Evolution Operating Income (€m) Gross Operating Profit (€m) +0.4% -1.0% +2.4% 1,007 996 -3.7% 993 +1.0% 940 952 961 508 539 520 4Q-23 3Q-24 4Q-24 Core revenues (NII + Fees) Other financial revenues Operating Costs (€m) -1.7% +2.0% 4Q-23 3Q-24 4Q-24 485 467 477 Cost/I
Slide 8: Gross Operating Profit (Yearly)
Gross Operating Profit Yearly Evolution Operating Income (€m) Gross Operating Profit (€m) +6.2% +10.8% 4,034 3,797 3,614 3,821 2,165 FY-23 FY-24 1,954 Core revenues (NII + Fees) Other financial revenues Operating Costs (€m) +1.4% 1,843 1,869 FY-23 FY-24 Cost/Income 49% 46% FY-23 FY-24 • FY-24 gross
Slide 9: Core Revenues
Core Revenues (Net Interest Income + Net Fee and Commission Income) Quarterly Evolution (€m) Yearly Evolution (€m) +2.3% +5.7% +1.0% 3,821 3,614 Net Fees & 1,465 940 952 961 Commission 1,322 Net Fees & Income Commission 335 356 373 Income 2,292 2,356 Net Interest 604 596 588 Net Interest Income Inco
Slide 10: Core Revenues driven by strong commercial performance
Core Revenues driven by strong commercial performance Total Commercial Savings(1) (€bn) WM Gross Inflows (€bn) +6% +40% 167.2 14.6 10.4 157.9 Dec-23 Dec-24 Dec-23 Dec-24 New Retail Mortgages (€bn) New Consumer Finance (€bn) +26% +21% 3.4 1.1 2.7 0.9 Dec-23 Dec-24 Dec-23 Dec-24 • Commercial focus on
Slide 11: Net Interest Income
Net Interest Income Quarterly Evolution (€m) Yearly Evolution (€m) -2.7% +2.8% -1.3% 2,356 2,292 604 596 588 4Q-23 3Q-24 4Q-24 FY-23 FY-24 Lending rate 4.44% 4.29% 4.09% 4.10% 4.31% Funding rate 1.01% 1.14% 0.99% 0.69% 1.13% Spread 3.43% 3.16% 3.10% 3.41% 3.18% -6bps -23bps -33bps • FY-24 NII at €2,
Slide 12: Net Customer Loans
Net Customer Loans Net Loans (1) (€bn) -1.2% +0.9% 62.8 63.1 62.6 61.5 62.0 30.6 31.0 30.6 29.5 29.6 32.1 32.1 32.1 31.9 32.4 6.1 6.2 6.2 6.0 6.4 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Small business & medium enterprises Retail Large Corporate & Other • Net customer loans development in 2024 better than
Slide 13: Total Commercial Savings
Total Commercial Savings Total Commercial Savings(1) (€bn) +5.8% +2.1% 161.7 164.4 163.7 167.2 Q/Q vs Dec-23 157.9 57.8 58.3 59.2 59.6 +0.7% +5.3% 56.6 29.9 32.1 31.8 32.4 33.2 +2.9% +6.1% 71.4 71.8 74.4 72.2 74.3 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Deposits AuC AuM • Total commercial savings up more
Slide 14: Italian Govies Portfolio
Italian Govies Portfolio Italian Govies Portfolio Breakdown(1) (€bn) Italian Govies Portfolio at FVTOCI 10.7 11.0 10.2 10.2 8.9 1.2 1.5 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 1.5 1.0 1.6 1.5 1.4 1.5 1.6 FVTOCI Duration ~2.8 ~2.6 ~2.5 ~2.3 ~2.1 (years) 7.1 7.7 8.0 7.8 8.0 FVTOCI Credit -0.5 -0.5 -0.4 -0.
Slide 15: Net Fee and Commission Income (Quarterly)
Net Fee and Commission Income Quarterly Evolution Commercial Banking Fees (€m) Total Fees (€m) +6.6% +8.1% +11.4% 185 183 198 +4.9% 373 335 356 4Q-23 3Q-24 4Q-24 Wealth Management and Advisory Fees (€m) +17.4% +1.6% 150 173 176 4Q-23 3Q-24 4Q-24 4Q-23 3Q-24 4Q-24 • 4Q-24 total fees at €373m, with st
Slide 16: Net Fee and Commission Income (Yearly)
Net Fee and Commission Income Yearly Evolution Commercial Banking Fees(1) (€m) Total Fees (€m) +4.1% +10.8% 752 722 1,465 1,322 FY-23 FY-24 Wealth Management and Advisory Fees (1) (€m) +19.0% 713 600 FY-23 FY-24 FY-23 FY-24 • FY-24 total fees at €1.465m, up +10.8% y/y, thanks to strong performance i
Slide 17: Operating Costs (Quarterly)
Operating Costs Quarterly Evolution HR Costs (€m) Operating Costs (€m) -3.0% +0.5% -1.7% 321 310 311 +2.0% 485 477 467 4Q-23 3Q-24 4Q-24 Non-HR Costs (€m) +0.9% +4.9% 164 166 158 4Q-23 3Q-24 4Q-24 4Q-23 3Q-24 4Q-24 • 4Q-24 operating costs at €477m (-1.7% y/y); q/q dynamics reflecting the typical las
Slide 18: Operating Costs (Yearly)
Operating Costs Yearly Evolution HR Costs (€m) Operating Costs (€m) +4.2% +1.4% 1,180 1,229 1,843 1,869 FY-23 FY-24 Non-HR Costs (€m) -3.5% 663 640 FY-23 FY-24 FY-23 FY-24 • FY-24 operating costs at €1,869m (+1.4% y/y), with ongoing optimization of non-HR costs (-3.5% y/y) partially offsetting the i
Slide 19: Gross NPE Stock
Gross NPE Stock Gross NPE Stock (€bn) Breakdown by Category (€bn) 3.6 3.7 3.9 3.7 3.5 2.2 2.2 2.3 2.3 Bad loans/ 2.1 Total NPEs 1.4 1.5 1.5 1.6 1.3 36% 3.6 3.7 3.9 3.7 3.5 Dec-23 Mar-24 Jun-24 Sep-24(2) Dec-24 Bad loan UTP + Past due (2) Breakdown by type of guarantee (€bn) Dec-23 Mar-24 Jun-24 Sep-
Slide 20: Coverage and Cost of Risk
Coverage and Cost of Risk NPE Coverage Breakdown Cost of Risk (bps) 68.1% 68.4% 66.5% 54 56 50 50 37.6% 37.7% 38.8% 22.8% 26.3% 21.7% Bad loan Coverage UTP Coverage Past Due Coverage 1Q-24 2Q-24 3Q-24 4Q-24 Dec-23 Sep-24 Dec-24 Total NPE Coverage 57 53 49.1% 49.9% 48.5% FY23 FY24 Dec-23 Sep-24(1) De
Slide 21: Funding & Liquidity
Funding & Liquidity Reduced Reliance on ECB funding (ECB Funding/Total Liabilities) LCR Evolution 163% 163% 164% 165% 166% 11% 9% 9% 7% 7% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 NSFR Evolution 134% 133% 134% 130% 129% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 • Solid liquidit
Slide 22: Capital
Capital CET1 Ratio Fully Loaded(1) Fully Loaded Capital Ratios(1) SREP 18.1% 18.2% 18.1% 18.3% 18.2% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 2025(2) CET1 ratio (%) 18.1% 18.2% 18.1% 18.3% 18.2% 8.79% 8.8% Tier 1 ratio (%) 18.1% 18.2% 18.1% 18.3% 18.2% 10.76% Total capital Dec-23 Mar-24 Jun-24 Sep-24 Dec-
Slide 23: Outlook 2025
Outlook 2025 2025 Outlook ▪ Impact of the interest rate scenario weathered by the optimization Net Interest Income of the business mix and the overall cost of funding Fees ▪ Expected to further grow, boosted by wealth management fees ▪ Costs trend mainly driven by full year impact of the new labour
Slide 24: Voluntary Public Exchange Offer launched by MPS on Mediobanca shares
Voluntary Public Exchange Offer launched by MPS on the ordinary shares of Mediobanca 24
Slide 25: Joining Forces with Mediobanca in a Unique Industrial Project
We are Joining Forces with Mediobanca in a Unique Industrial Project ‘‘ Mediobanca is our partner of choice, the ally with whom we want to join forces to enter into a new phase of growth and value creation, sustained by a synergic and complementary business model, leveraging the strengths of our res
Slide 26: Mediobanca Highlights
Mediobanca Highlights ▪ Group’s profitability mainly driven by Insurance (38% of net income) and Net income – Divisional contribution(1) (2024) Consumer Finance (28% of net income) Divisional ▪ Lower contribution of Wealth Management (15% of net income) and CIB 15% 18% 28% 38% Contribution (18% of n
Slide 27: Mediobanca Highlights (cont'd)
Mediobanca Highlights (cont’d) MPS – Mediobanca contribution analysis(1) ▪ MPS would represent c.60% of the combined entity in terms of customer loans and clients Relative assets Customer Loans (2) Loans due to customers 59% 41% €132bn Contribution Direct Funding (3) Direct funding 61% 39% €153bn MP
Slide 28: Powerful Group Combination thanks to Complementarity of the two Platforms
Powerful Group Combination thanks to Complementarity of the two Platforms… Mediobanca MPS Combined Combining “pure IB advisory” capabilities with a Mediobanca CIB solid balance sheet to evolve into a fully- Messier Maris & Associés (80%)(1) Armapartners fledged CIB model in line with leading players
Slide 29: … with an Enhanced Business Mix
… with an Enhanced Business Mix MPS (1) Mediobanca (2) Combined (3) Operating profit Operating profit Operating profit 3% 12% 26% 8% 48% 18% 15% + = 5% 27% 40% 49% Approx. 61% IB and 39% Corporate Banking (3) 30% 19% Retail banking Corporate banking CIB IB Consumer finance Private Banking / WM Insur
Slide 30: Increased Service Offering and Penetration, with Significant Value Creation
Increased Service Offering and Penetration, with Significant Value Creation … Business Area Revenues (~€0.3bn) ▪ Offering MPS daily products to Compass and Mediobanca Premier clients Retail Banking ▪ Delivery of MPS branch network at scale Investment Banking ▪ Enhanced product offering combining adv
Slide 31: … and Cost and Funding Synergies
… and Cost and Funding Synergies Business Area Costs (~€0.3bn) and Funding (~€0.1bn) ▪ Optimization of product factories (e.g., MBFACTA and MPS Factoring, respective NPE workout units) Corporate ▪ Optimization of overlapping footprint coverage ▪ Rationalization of existing platforms Consumer Finance
Slide 32: Value Creation for all Stakeholders
Value Creation for all Stakeholders ▪ Enlarged product and service offering for our Customers, with Profitability scale and ability to support new investments Pro-forma RoTE at ~14%(1) ▪ Opportunities for our People professional growth in an Double-digit accretion on adj. EPS(2) for all shareholders
Slide 33: Appendix – Supporting Materials of 4Q-24 & FY-24 Results
Appendix – Supporting Materials of 4Q-24 & FY- 24 Results 33
Slide 34: Focus on DTAs
Focus on DTAs On and Off Balance Sheet DTAs (€bn) Dec-23 Sep-24 Dec-24 Convertible DTAs 0.5 0.4 0.4 ▪ Stock of DTAs not recorded in Balance Sheet at DTAs on Tax loss carryforwards 0.7 1.4 1.5 €1.6bn, entirely composed by DTAs on tax loss carryforwards Other non-convertible DTAs 0.6 0.5 0.6 ▪ Current
Slide 35: Extraordinary Litigations and Extrajudicial Claims
Extraordinary Litigations and Extrajudicial Claims Gross Petitum(1) (€bn) Dec-23 Sep-24 Dec-24 ▪ Extraordinary litigations and extrajudicial claims stable since Alken civil December 2023 litigation (2nd degree positive) 0.45 0.45 0.45 ▪ A positive trend of civil sentences on disclosure of financial
Slide 36: Reclassified Income Statement
Reclassified Income Statement 4Q-24/ 4Q-24/ FY24/ (€m) 4Q-24 3Q-24 4Q-23 FY24 FY23 3Q-24 (%) 4Q-23 (%) FY23 (%) Net Interest Income 588 596 604 2,356 2,292 -1.3% -2.7% +2.8% Net fees and commission income 373 356 335 1,465 1,322 +4.9% +11.4% +10.8% Core Revenues 961 952 940 3,821 3,614 +1.0% +2.3% +
Slide 37: Balance Sheet
Balance Sheet Total Assets(1) (€m) Dec-23 Sep-24 Dec-24 QoQ% YoY% Loans to Central banks 527 589 565 -4.0% 7.3% Loans to banks 2,582 2,265 2,068 -8.7% -19.9% Loans to customers 76,816 76,649 77,310 0.9% 0.6% Securities assets 17,277 17,801 17,447 -2.0% 1.0% Tangible and intangible assets 2,483 2,331
Slide 38: Lending & Direct Funding
Lending & Direct Funding Total Lending (€m) Dec-23 Sep-24 Dec-24 QoQ% YoY% Current accounts 2,756 2,884 2,659 -7.8% -3.5% Medium-long term loans 51,838 50,400 50,705 0.6% -2.2% Other forms of lending 14,219 14,209 15,023 5.7% 5.7% Reverse repurchase agreements 6,230 7,212 7,035 -2.4% 12.9% Impaired
Slide 39: BMPS ESG Commitments and Targets
BMPS ESG Commitments and Targets OUR COMMITMENT CURRENT ACHIEVEMENTS OUR KEY OBJECTIVES AND TARGETS FOR 2024-2028 ▪ - 70 % Scope 1 emissions(1) (2017 vs 2024) ▪ 60% reduction of Scope 1 emissions (vs. 2017) and net zero on own operation by 2030 SUSTAINABLE FINANCE AND CLIMATE CHANGE ▪ 100% renewable
Slide 40: Decarbonisation Targets extended to other two NZBA sectors
Decarbonisation Targets extended to other two NZBA sectors Following its membership of the Net-Zero Banking Alliance (NZBA) of 2022, BMPS has identified further decarbonisation objectives for its lending portfolios for two other high emission intensity sectors to support the carbon neutrality by 205
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