Banca Monte Dei Paschi Di Siena S.p.a. · MIL:BMPS

Banca Monte Dei Paschi Di Siena — H1 2015 Earnings Presentation

32 slides from Banca Monte Dei Paschi Di Siena's earnings presentation, Aug 6, 2015

  1. Slide 1: 1H2015 GMPS Results

    1H2015 GMPS Results Fabrizio Viola CEO & General Manager Bernardo Mingrone Deputy General Manager, Head of Finance & Operations 6th August 2015

  2. Slide 2: 1H15 Results

    1H15 Results  Key messages  1H15 Results - Balance sheet  1H15 Results - P&L  Final remarks page 2

  3. Slide 3: Executive Summary

    Executive Summary  Net profit for the period EUR 193.6mln and Pre-provision profit at EUR 1.1bn 1H15  In 2Q15, Net income at EUR 121mln and Pre-provision profit at ~EUR 620mln*, up ~1% QoQ Results  Good performance from fees (+9.3% QoQ), driven by WM Highlights component (+9.6% QoQ)  Continued f

  4. Slide 4: Strengthened Capital Position

    Strengthened Capital Position CET 1 ratio 12.0% 11.3% SREP Requirement: 10.7% 10.2% transitional 8.7% Dec-14 Jun-15 Jun-15 2018E transitional* fully loaded*  Successful completion of the EUR 3bn rights issue with a 99.6% take-up  Substantial buffer in capital ratios vs. SREP requirement  Capital

  5. Slide 5: Full reimbursement of NFIs

    Full reimbursement of NFIs NFI’s repayment* (€/mln) Including EUR 171mln of coupon +243 +46 961 +1,071 +45 +330 +126 -3,900 +3,000 Original Repayment Price 2013 Coupon Repayment Price 2014 2015 Total outstanding Jul-14 adjustment repayment Jul-15 adjustment Coupon Coupon Return Jul-14 Jul-15 repayme

  6. Slide 6: Strong liquidity position

    Strong liquidity position ECB exposure* (€/bn) Eur 29bn LTRO TLTRO MRO Eur 20bn Eur 17bn Eur 17bn 29.0 3.0 3.0 Eur 11bn Eur 7.8bn 20.0 6.3 14.0 4.5 7.7 6.6 7.8 Jun-13 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Net Interbanking exposure (€/bn) Unencumbered counterbalancing capacity (€/bn) on -54.7% Total 14.

  7. Slide 7: Core banking business trends

    Core banking business trends Strong result due to Net Interest Income (€/mln) Deleverage of Net Fees (€/mln) increase in productivity assets and (-150 branches YoY and -1,550 FTEs YoY) reduction/substitution of ECB funding +4.7% +6.4% 1,119 1,172 -8.5% +9.3% 612 927 560 871 484 1,172 443 972 +20.6%

  8. Slide 8: Impaired loans inflows and cost of risk

    Impaired loans inflows and cost of risk Net inflows of Gross NPE (Delta stock €/bn) Including AQR 2.5* ~30% of net NPE inflows relating to 1.7 1.6 one position vs. 1.3 local authority 0.6* 1.2 2012 2013 2014 1Q15 2Q15 Quarterly Quarterly Quarterly Avg Avg Avg Annualized Cost of Risk (bps)  First si

  9. Slide 9: First results from new NPE management approach

    First results from new NPE management approach GDP* assumption (YoY %) 1.50% 1.40% 1.40% 0.70% -0.40% 2014 2015E 2016E 2017E 2018E  Italian economy is improving in line with our expectations: consensus for GDP growth for 2015 at +0.7%, first growth since 1Q11 in investments +0.4% YoY Bad loans Reco

  10. Slide 10: 1H15 Results

    1H15 Results  Key messages  1H15 Results - Balance sheet  1H15 Results - P&L  Final remarks page 10

  11. Slide 11: Assets & Liabilities trends

    Assets & Liabilities trends Total Assets  Customer loans down €/mln Jun-14 Mar-15 Jun-15 QoQ% YoY% 4.6% QoQ with a decrease in repos (-EUR 3bn QoQ) used Customer loans 132,770 123,139 117,436 -4.6% -11.5% for temporary management Loans to banks 8,638 7,856 8,327 6.0% -3.6% of surplus liquidity in 1

  12. Slide 12: Lending

    Lending Total Lending  Commercial Customer loans decrease QoQ, €/mln Jun-14 Mar-15 Jun-15 QoQ% YoY% with Retail lending (-2.4% QoQ) impacted by the planned run-off of Consum.it also considering Current accounts 10,906 8,488 8,179 -3.6% -25.0% the full implementation of the distribution Mortgages 61

  13. Slide 13: Direct Funding

    Direct Funding Direct funding  Direct Funding down 4.0% QoQ due to €/mln Jun-14 Mar-15 Jun-15 QoQ% YoY% decrease in repos with institutional Current accounts 58,042 54,311 55,585 2.3% -4.2% counterparties, expiration of bonds Time deposits 10,406 12,657 13,122 3.7% 26.1% (institutional and retail)

  14. Slide 14: Indirect Funding

    Indirect Funding Wealth Management/Assets under Custody  Indirect Funding was up 1.0% YoY and €/mln Jun-14 Mar-15 Jun-15 QoQ% YoY% down 2.6% QoQ: Assets under  Assets under custody down 4.6% 58,680 55,874 53,317 -4.6% -9.1% custody affected by a negative market effect at Wealth the end of June (ap

  15. Slide 15: Asset Quality

    Asset Quality Non Performing Exposures (NPE) QoQ YoY QoQ YoY (€ mln) Net (%) (%) Gross (%) (%)  Net decrease in net NPE, - 0.3% QoQ Bad loans 9,048 +3.8 -5.6 25,357 +0.4 +10.6  NPE coverage substantially (sofferenze) stable vs. 1Q15; bad loans Unlikely to Pay 12,037 -1.6 +69.8 17,501 -2.2 +89.5 co

  16. Slide 16: Financial assets: focus on Italian Govies portfolio

    Financial assets: focus on Italian Govies portfolio Italian Government Bonds: ~EUR 22bn*  Securities and Derivatives Portfolio at EUR 30.8bn in 2Q15, decreased 8.9% QoQ, mainly Breakdown by IAS category Breakdown by maturity in HFT component (-EUR 1.5bn) driven by market making activity of MPS Capi

  17. Slide 17: RWAs and Capital ratios

    RWAs and Capital ratios RWAs over time (€/bn)  RWAs decrease (-EUR 974mln -1.3% QoQ) due to the conversion of approx. EUR 2bn of DTA in tax 80.0 76.2 76.4 75.4 credits offset by the increase in market risks and in RWA’s due to the update of AIRB models and RWA from CET1 threshold  Main drivers QoQ

  18. Slide 18: CET1 ratio and RWAs evolution

    CET1 ratio and RWAs evolution CET 1 ratio Common evolution Equity Tier 1 evolution QoQ (Transitional; €/mln) +14 +2 +32 11.3% -65 bps +240 -14 +18 +16 +9 11.0% 10.7% 8.1% Mar-15 Capital Net AFS Bis.3 Profit Prudential RWAs Other Jun-15 MEF Jun-15 Bis.3 Jun-15 increase Reserve deduction for the Filte

  19. Slide 19: 1H15 Results

    1H15 Results  Key messages  1H15 Results - Balance sheet  1H15 Results - P&L  Final remarks page 19

  20. Slide 20: 1H2015 P&L: Highlights

    1H2015 P&L: Highlights Change 1H14 1H15 € mln (YoY %)  1H15 Results: main underlying Net Interest Income 972.0 1,171.7 20.6% trends NII ex. one-off* on NFIs 1,119.1 1,171.7 4.7%  Total revenues up (+25.3% Net Fees 871.0 927.1 6.4% YoY) due to strong operating performance in commission Other revenu

  21. Slide 21: Net Interest Income

    Net Interest Income Net Interest Income (YoY)  Net Interest Income net of NFIs, increased 4.7% YoY thanks to improving funding/lending +4.7% spread (approx. +20 bps)  Negative quarterly evolution mainly driven by:  Interest-bearing assets reduction 972 1,172  Repricing of loan book and AFS portf

  22. Slide 22: Fees and Commissions Income

    Fees and Commissions Income Fees YoY (€/mln) Fees QoQ (€/mln) +6.4% +13.7% 484 927 443 871 426 422 405 Jun-14 Jun-15 2Q14 3Q14 4Q14 1Q15 2Q15 Fees Breakdown  Net fees and commissions +6.4% YoY driven by WM fees increase €/mln 1H14 1H15 YoY 1Q15 2Q15 2Q15 vs (+16.7% YoY) that more than offset 1Q15 W

  23. Slide 23: Dividends and Trading Income

    Dividends and Trading Income Dividends /Profit from investments (€/mln)  Dividends, similar income and gains (losses) on investments at Dividend from Banca EUR 42mln thanks to the contribution d’Italia from AXA-MPS and Banca d’Italia 39 42 stake 33 24 24 AXA  Trading: QoQ decrease mainly due to co

  24. Slide 24: Operating Costs

    Operating Costs Operating Costs (€/mln) Operating Costs QoQ (€/mln) -2% -1.5% +0.6% 1,331 1,311 735 690 671 653 657 Jun-14 Jun-15 2Q14 3Q14 4Q14 1Q15 2Q15 Personnel expenses (€/mln) Admin expenses (€/mln) Amortization and Depreciation (€/mln) -1.8% -4.7% +7% -1.2% +2.0% +11% 422 428 431 419 414 199

  25. Slide 25: Provisions and Cost of Risk

    Provisions and Cost of Risk Net loan loss provisions (€/mln)  Net loan loss provisions include 5,357 Of which EUR EUR 120mln impacted from update 41mln related to ECB of Probability of Default (PD) and review Loss Given Default (LGD) parameters for AIRB models 1,256 731 468  Cost of credit of 168b

  26. Slide 26: 1H15 Results

    1H15 Results  Key messages  1H15 Results - Balance sheet  1H15 Results - P&L  Final remarks page 26

  27. Slide 27: Final remarks

    Final remarks  Strong capital base with successful completion of EUR 3bn rights issue and no more reliance on State Aid  Return to profitability in 1Q15 confirmed in 2Q15  Full reimbursement of LTRO and strong liquidity  Ongoing normalization of cost of credit with firm commitment to continue to

  28. Slide 28: Thank you for your attention Q&A

    Thank you for your attention Q&A page 28

  29. Slide 29: Annexes

    Annexes page 29

  30. Slide 30: CET1 ratio proforma evolution

    CET1 ratio proforma evolution CET 1 ratio Transitional proforma evolution bps +16 -14 +6 +9 +24 +2 11.3% 10.9% Mar-15 CET1 Profit Net AFS Prudential RWA effect** Jun-15 Bis.3 Other CET1 Transitional for the Reserve Filters and deduction effects Transitional proforma* period on Alex. Intangibles Prof

  31. Slide 31: Disclaimers

    Disclaimers This document has been prepared by Gruppo Monte dei Paschi di Siena solely for information purposes and for use in presentations of the Group’s strategies and financials. The information contained herein has not been independently verified. No representation or warranty, express or impli

  32. Slide 32: ‘fe DEI PASCHI

    ‘fe DEI PASCHI ! DISIENA BANCA DAL 1472 www.mps.it

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