Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca — 9M FY2016 Earnings Presentation
42 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, May 11, 2016
Slide 1: 9M/last 3M results as at 31 March 2016
9M/last 3M results as at 31 March 2016 Milan, 11 May 2016
Slide 2: Agenda
Agenda Section 1. 9M/last3M Group results Section 2. Closing remarks Annexes 1. Quarterly group and segmental reporting tables 2. Asset quality details by segment 3. Asset quality ratio: comparison among Mediobanca, Italian and European banks 4. Principal investing: main equity investments as at Mar
Slide 3: Mediobanca: revenues diversification, another set of good results
Mediobanca: revenues diversification, another set of good results 9M/last 3M results as at March 2016 Section 1 Growth in loan book in CIB and RCB (up 8%) with resilient credit margin due to a highly selective approach Growth in funding at reducing costs wide diversification by product and channel G
Slide 4: 9M at a glance: GOP up 11%, diversified between CIB, RCB and PI
9M at a glance: GOP up 11%, diversified between CIB, RCB and PI 9M/last 3M results as at March 2016 Section 1 MB Group operating profit¹ and PBT trend (€bn) +11% 91 47 75 ( 87) FI disposals 66 (25) (84) (39) 633 502 558 546 Operating NII AG LLPs Fee Treasury Total Operating Net equity PBT SRF PBT pr
Slide 5: 3M at a glance: strong banking performance: revenues up 2%, GOP up 20%
3M at a glance: strong banking performance: revenues up 2%, GOP up 20% 9M/last 3M results as at March 2016 Section 1 Banking activity: revenues up 2%, GOP up 20% Group banking activity: revenues and GOP ¹(€m) 46% C/I ratio 44% CIB and RCB have been delivering for the last Qs 151bps CoR 111bps
Slide 6: Healthy loan growth in CIB & RCB resulting in resilient credit margins
Healthy loan growth in CIB & RCB resulting in resilient credit margins 9M/last 3M results as at March 2016 Section 1 Group loan book trends (€bn) CIB* loan book trend (€bn) +8% +11% 33.0 +6% 34.8 32.3 -0.8 +2.3 14,1 15,7 14.7 14,3 13.2 16,2 16,6 15,1 Mar-15 Dec-15 Mar-16 CIB loan book New Reimbursem
Slide 7: Funding growing at decreasing cost, wide diversification
Funding growing at decreasing cost, wide diversification 9M/last 3M results as at March 2016 Section 1 Group funding (€bn) MB group avg cost of funding Bonds outstanding by investor & type (vs Eur3m) (March16, €bn) +6% 45.5 42.8 Institutional 8,5 3% 7,9 Private placements 45% 17% 35% 5,5 Institution
Slide 8: NII up 8% YoY, unparalleled by Italian banks, driven by...
NII up 8% YoY, unparalleled by Italian banks, driven by... 9M/last 3M results as at March 2016 Section 1 Net interest income (€m) NII quarterly trend: MB vs IT banks1 and EU banks2 (100 rebased) +8% 120 906 840 115 Mediobanca 110 52 57 37 105 EU banks 33 100 95 198 165 Italian banks 90 85 3Q14 4Q14
Slide 9: ... consumer lending profitable and steady growth (~70% of Group NII)
... consumer lending profitable and steady growth (~70% of Group NII) 9M/last 3M results as at March 2016 Section 1 Compass: 9months NII (€m) Compass: 9m GOP risk adj² (€m), ROAC 19.2% ROAC 578 14.6% +13% +10% 510 11.9% 465 +47% +30% 187 127 97 March14 March15 March16 March14 March15 March16 Compass
Slide 10: In an IB industry under pressure …
In an IB industry under pressure … 9M/last 3M results as at March 2016 Section 1 IB revenue trend of EU/US players (rebased) IB revenues: MB vs EU/US players* (1Q16 vs 1Q15) 120 110 104 100 100 94 93 89 -23% EU/US 90 100 players -11% 80 91 70 77 77 60 69 -23% Mediobanca 50 -5% 40 1Q15 2Q15 3Q15 4Q15
Slide 11: … MB IB product diversification proves effective for fee …
… MB IB product diversification proves effective for fee … 9M/last 3M results as at March 2016 Section 1 Mediobanca IB product diversification effective Mediobanca M&A and ECM deal value (completed & expected deals, €bn) M&A volumes rebounding (up ~50% YoY) +50% CapMkt: temporarily lowered by
Slide 12: … and trading income: strong CMS performance in 1Q16
… and trading income: strong CMS¹ performance in 1Q16 9M/last 3M results as at March 2016 Section 1 Trading income rebounded in last Q due to strong WB trading income trend (€m) performance by CapMarket Solution business 163 -52% CMS doubled revenues in 1Q16 to €44m (totalling €89m in 9M16), ben
Slide 13: CheBanca! AUM/AUA up 46% (to €3.8bn), fee up 63% (to €31m)
CheBanca! AUM/AUA up 46% (to €3.8bn), fee up 63% (to €31m) 9M/last 3M results as at March 2016 Section 1 CheBanca! Customer assets breakdown trend since March 15 (€bn) 14.2 % on total AUA/AUM up 46% % on total asset 1,2 asset 12.7 1,9 0,8 (1.2) 1.5 1,0 3.8 AUA/AUM 27% 20% AUA/AUM 2.6 0,9 0,9 0,9 Cur
Slide 14: Lowering NPLs driving reductions in cost of risk ...
Lowering NPLs driving reductions in cost of risk ... 9M/last 3M results as at March 2016 Section 1 Net NPLs (€m, %) Cost of risk by segment (bps) -10% 1.220 1.173 -2% 1.152 1.133 1.075 1.055 263 265 258 242 225 151 136 141 133 111 31 22 21 51 -2 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 1Q15 2Q15 3Q15 4Q15 1Q16
Slide 15: ... coupled with increasing coverage ratios
... coupled with increasing coverage ratios 9M/last 3M results as at March 2016 Section 1 NPLs (“deteriorate”) Bad loans (“sofferenze”) Group and segmental figures Mar15 Dec15 Mar16 Group and segmental figures Mar15 Dec15 Mar16 Net NPLs (€m) 1,173 1,075 1,055 Net bad loans (€m) 265 258 248 Net NPLs/
Slide 16: RWA kept flat by first optimization actions
RWA kept flat by first optimization actions 9M/last 3M results as at March 2016 Section 1 RWA trend in the last 12m (€bn) RWA by segment (€bn) -1% -1% 60.7 0,9 60.7 60.0 (1.6) 60.0 34,8 -4% 33,5 11,7 +10% 12,9 11,9 11,4 Mar-15 Credit risk Market risk Mar-16 Mar-15 Mar-16 PI Leasing RCB CIB RWA sti
Slide 17: Capital ratios confirmed strong
Capital ratios confirmed strong 9M/last 3M results as at March 2016 Section 1 CET1 ratio: phase-in/fully phased Ratios confirmed at high levels 13,4% 13,2% CET1 ratio at 12.5% (13.2% fully phased) 12,7% 12,4% 12,5% 11,6% Total capital at 15.7% (16.2% fully phased) Leverage ratio at 11.0% (11
Slide 18: Profitability ratios: CIB up to 7%, RCB to 17%
Profitability ratios: CIB up to 7%, RCB to 17% 9M/last 3M results as at March 2016 Section 1 9M 6M 12M March16 Dec15 June15 annualized annualized FY15 GROUP ROTE 7.2% 8.0% 7.6% CET1 12.5% 12.4% 12.0% CIB ROAC¹ 6.6% 5.9% 8.2% RCB ROAC¹ 17.1% 16.2% 10.8% of which Consumer lending ROAC¹ 19.2% 17.9% 14.
Slide 19: Agenda
Agenda Section 1. 9M/3Q16 Group results Section 2. Closing remarks Annexes 1. Quarterly group and segmental reporting tables 2. Asset quality details by segment 3. Asset quality ratio: comparison among Mediobanca, Italian and European banks 4. Principal investing: main equity investments as at March
Slide 20: Closing remarks
Closing remarks Closing remarks Section 2 Mediobanca one of the few banks which has been able to increase: 9M/Last 3M 2016 Loan book in CIB and RCB, with resilient credit margins Funding, at reducing costs Sound results in NII, unparalleled by other Italian banks ordinary business GOP in a
Slide 21: 9M/last 3M results as at 31 March 2016
9M/last 3M results as at 31 March 2016
Slide 22: Annexes
Annexes 1. Quarterly Group and segmental reporting tables 2. Asset quality details by segment 3. Asset quality ratio: comparison among Mediobanca, Italian and European banks 4. Principal investing: main equity investments as at March16 22
Slide 23: Loans and funding selectively up, RWA optimizing
Loans and funding selectively up, RWA optimizing 9M/last 3M results as at March 2016 Annexes D D €bn Mar16 Dec15 Mar15 QoQ1 YoY1 Funding 45.5 44.3 42.8 +3% +6% Bonds 21.1 20.8 19.8 +2% +7% Retail direct deposits 10.4 10.4 10.1 -0% +3% ECB 5.5 5.5 5.1 +0% +8% Others 8.5 7.6 7.9 +11% +7% Loans to cust
Slide 24: Operating profit up 11% YoY and 5% QoQ despite tough macro
Operating profit up 11% YoY and 5% QoQ despite tough macro 9M/last 3M results as at March 2016 Annexes 9m 9m D D €m 1Q16 4Q15 3Q15 2Q15 1Q15 Mar16 Mar15 YoY1 QoQ1 Total income 1,519 1,516 0% 503 509 507 530 501 -1% Net interest income 906 840 +8% 301 302 303 303 292 0% Fee income 336 361 -7% 109 132
Slide 25: CIB results
CIB results 9M/last 3M results as at March 2016 Annexes 9m 9m D €m 1Q16 4Q15 3Q15 2Q15 1Q15 Mar16 Mar15 YoY1 Total income 496 623 -20% 179 170 148 153 231 Net interest income 170 185 -8% 52 57 61 66 64 Fee income 239 261 -8% 75 99 65 82 71 Net treasury income 87 176 -50% 52 14 22 6 97 Total costs (2
Slide 26: Retail and Consumer Banking results
Retail and Consumer Banking results 9M/last 3M results as at March 2016 Annexes 9m 9m D €m 1Q16 4Q15 3Q15 2Q15 1Q15 Mar16 Mar15 YoY1 Total income 813 747 +9% 276 272 265 262 258 Net interest income 691 612 +13% 235 230 226 221 212 Fee income 122 134 -9% 42 41 39 41 46 Total costs (325) (327) -0% (11
Slide 27: Consumer banking: Compass results
Consumer banking: Compass results 9M/last 3M results as at March 2016 Annexes 9m 9m D €m 1Q16 4Q15 3Q15 2Q15 1Q15 Mar16 Mar15 YoY1 Total income 670 626 +7% 229 223 218 216 214 Net interest income 578 510 +13% 198 193 188 184 177 Fee income 91 115 -21% 31 30 30 32 37 Total costs (204) (211) -3% (71)
Slide 28: Retail banking: CheBanca! results
Retail banking: CheBanca! results 9M/last 3M results as at March 2016 Annexes 9m 9m D €m 1Q16 4Q15 3Q15 2Q15 1Q15 Mar16 Mar15 YoY1 Total income 144 121 +19% 47 49 48 46 45 Net interest income 113 102 +11% 37 37 38 37 36 Fee income 31 19 +63% 10 11 9 9 9 Total costs (121) (116) +5% (41) (41) (39) (45
Slide 29: Principal Investing results
Principal Investing results 9M/last 3M results as at March 2016 Annexes 9m 9m D €m 1Q16 4Q15 3Q15 2Q15 1Q15 Mar16 Mar15 YoY1 Total income 195 144 +35% 41 65 89 109 14 Gains from disposals 97 117 -17% 5 3 88 7 101 Impairments (17) (14) +25% (5) (10) (2) (7) (2) Net result 266 233 +14% 38 48 181 102 1
Slide 30: Annexes
Annexes 1. Quarterly group and segmental reporting tables 2. Asset quality details by segment 3. Asset quality ratio: comparison among Mediobanca, Italian and European banks 4. Principal investing: main equity investments as at March16 30
Slide 31: MB Group Bad Loans (“sofferenze”)
MB Group Bad Loans (“sofferenze”) 9M/last 3M results as at March 2016 Annexes Group net bad loans by segment1 (March 16) Group net bad loans and coverage by segment1 (March 16, €m, %) 300 Net bad loans: €247 m 93% 55% 48% 69% Net bad loans/net loans: 0.7% 250 WB & Private 65 Leasing banking 200 26%
Slide 32: MB Group NPLs (“deteriorate”)
MB Group NPLs (“deteriorate”) 9M/last 3M results as at March 2016 Annexes Group net NPLs by segment (March 16) Group net NPLs and coverage by category (March 16, €m, %) Net NPLs: €1.1 bn 1.200 69% 47% 59% 54% Net NPLs/net loans: 3.0% 1.000 67 Leasing 25% WB and 800 Private banking 600 740 38% 1.055
Slide 33: Wholesale NPLs
Wholesale NPLs 9M/last 3M results as at March 2016 Annexes Group net NPLs by segment (March 16) WB1 net NPLs and coverage by category (March 16, €m, %) WB net NPLs: €0.4 bn 600 47% 47% WB net NPLs/net loans: 2.7% 500 Leasing 25% WB and 400 - Private banking 300 38% 399 200 399 Retail Consumer 100 cr
Slide 34: Consumer credit NPLs
Consumer credit NPLs 9M/last 3M results as at March 2016 Annexes Group net NPLs by segment (March 16) Consumer net NPLs and coverage by category (March 16, €m, %) Consumer net NPLs: €0.2 bn 350 90% 67% 66% 75% Consumer net NPLs/net loans: 2.1% 300 Leasing 250 25% 47 200 WB and 150 116 Private 244 10
Slide 35: Retail banking NPLs
Retail banking NPLs 9M/last 3M results as at March 2016 Annexes Group net NPLs by segment (March 16) Retail net NPLs and coverage by category (March 16, €m, %) Retail net NPLs: €0.2 bn 55% 30% 31% 49% Retail net NPLs/net loans: 3.0% 160 140 4 Leasing 120 43 25% 100 80 WB and 149 60 Private 101 banki
Slide 36: Leasing NPLs
Leasing NPLs 9M/last 3M results as at March 2016 Annexes Group net NPLs by segment (March16) Leasing net NPLs and coverage by category (March 16, €m, %) Leasing net NPLs: €0.3 bn 300 48% 23% 16% 31% Leasing net NPLs/net loans: 10.0% 250 12 Leasing 200 25% 182 WB and 150 259 Private 100 banking 38% 5
Slide 37: Annexes
Annexes 1. Quarterly group and segmental reporting tables 2. Asset quality details by segment 3. Asset quality ratio: comparison among Mediobanca, Italian and European banks 4. Principal investing: main equity investments as at March16 37
Slide 38: MB well positioned among European banks on asset quality
MB well positioned among European banks on asset quality 9M/last 3M results as at March 2016 Annexes Net NPLs: % of total loans and coverage ratio (%) Net NPLs (“deteriorate”) as % of CET1 54% 52% 48% Coverage ratio 109% 10,5% 35% 3,0% 3,4% 14% Mediobanca Europe Italy Mediobanca Europe Italy NPLs /
Slide 39: Annexes
Annexes 1. Quarterly group and segmental reporting tables 2. Asset quality details by segment 3. Asset quality ratio: comparison among Mediobanca, Italian and European banks 4. Principal investing: main equity investments as at March16 39
Slide 40: Principal Investing: main equity investments
Principal Investing: main equity investments 9M/last 3M results as at March 2016 Annexes % ordinary share March 2016 Book value €m AFS reserve of capital Assicurazioni Generali 13.24% 3,117 n.m.1 Atlantia 2.71% 545 243 Italmobiliare 9.5% 83 48 RCS Mediagroup 6.2% 15 - Other listed equities 43 20 Oth
Slide 41: Disclaimer
Disclaimer This presentation contains certain forward-looking statements, estimates and targets with respect to the operating results, financial condition and business of the Mediobanca Banking Group. Such statements and information, although based upon Mediobanca’s best knowledge at present, are ce
Slide 42: 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 Email: investor.relations@mediobanca.com http://www.mediobanca.com 42