Credito Emiliano S.p.a. · MIL:CE
Credito Emiliano — Credem Group — FY2009 Earnings Presentation
22 slides from Credito Emiliano's earnings presentation, Mar 31, 2010
Slide 1: FY 2009: Group Results Conference Call
FY 2009: Group Results Conference Call Adolfo Bizzocchi March, 31st
Slide 2: Agenda
Agenda • A though scenario in 2009 • Actions taken during first nine months of 2009 CRESCERE • 4Q09 performance and FY09 Results PER CONTINUARE • New 2012 targets reading AD ECCELLERE 2
Slide 3: Approaching 2009 (1/2)
Approaching 2009 (1/2) Industrial Orders Industrial Production Index Total Industry’s NPLs evolution (released in December, 2008) (released in November, 2008) (EURm) 50,000 45,000 40,000 Monthly index Moving average 35,000 -0 8 -0 8 8 - 0 y-0 8 08 08 08 08 t -08 -0 8 - 08 October 2006 – October 2008
Slide 4: Approaching 2009 (2/2)
Approaching 2009 (2/2) euribor 3 months ois 3 months % Dow Jones EuroStoxx 50 6 14,000 5,000 5 4 12,500 3 4,000 2 11,000 1 3,000 0 9,500 01/2007 04/2007 07/2007 10/2007 01/2008 04/2008 07/2008 10/2008 01/2009 8,000 2,000 Spread (Cost of Funding for banks) 12/2007 03/2008 05/2008 07/2008 10/2008 12/2
Slide 5: Agenda
Agenda • A though scenario in 2009 • Actions taken during first nine months of 2009 CRESCERE • 4Q09 performance and FY09 Results PER CONTINUARE • New 2012 targets reading AD ECCELLERE 5
Slide 6: Lowering Risk Profile
Lowering Risk Profile Loans to corporate customers* Credem Cost of Risk (evolution 1H09 vs. FY08) 80 0% 71 -1% -0.6% 60 58 -2% 59 -3% bps Total Industry 40 -4% 34 Credem -5% 20 -6% -7% 0 -8% 2008 1Q09 1H09 9M09 -8.0% Cost of risk • During 1H09 Credem Group decided to deliberately reduce its loans bo
Slide 7: Sustaining Net Interest Income
Sustaining Net Interest Income Interest Rates (%) Net Interest Income (EURm) 3.0 140 135.1 130 2.0 120 119.4 112.9 110 1.0 100 94.9 90 0.0 80 4Q08 1Q09 2Q09 3Q09 Se 9 M 9 09 A 9 Fe 9 9 M 9 9 8 09 -0 -0 -0 l-0 0 0 -0 -0 n- n- b- p- ug pr ay ar ec Ju Ju Ja A Financial Assets D Available for 2,263 5,39
Slide 8: Growing Non Interest Income
Growing Non Interest Income AUM, Deposits and Repos Asset Management & Brokerage Fees 140 (100 = assets at 31/12/2008) 120 50 100 44.6 40 40.3 80 36.6 30 EURm 60 40 20 20 10 0 0 2008 1Q09 1H09 3Q09 1Q09 2Q09 3Q09 Sight Deposits Time Deposits Repos AuM • To offset a strong reduction of Net Interest I
Slide 9: Agenda
Agenda • A though scenario in 2009 • Actions taken during first nine months of 2009 CRESCERE • 4Q09 performance and FY09 Results PER CONTINUARE • New 2012 targets reading AD ECCELLERE 9
Slide 10: Loan Book
Loan Book -2.2% -2.4% -0.7% 4.9% 17,621 17,236 17,536 18000 16,841 16,721 2,847 2,804 2,788 2,577 • Lending volumes started to increase 2,782 again during last quarter, mostly for the 12000 5,276 5,313 5,534 growth of Short Term Loans 5,426 5,503 EURm 1,947 1,934 1,910 1,941 • Retail mortgage loans
Slide 11: Net Interest Income
Net Interest Income 7 6 6.08 5.67 6.02 6.02 6.07 5 5.36 5.44 5.55 • Despite loan growth, the 4.74 4 4.64 4.30 3.99 spread reduction, driven by 3.71 interest rates decrease, % 3.69 3.67 3.72 3.74 3.73 3.54 3 3.39 3.57 3.54 3.01 2.89 2.79 2.45 2.53 2.54 2.65 continues to keep pressure on 2 1.93 2.31 1
Slide 12: Deposits and Assets Under Management
Deposits and Assets Under Management EURm 2007 2008 1Q09 1H09 9M09 2009 Sight Deposits 9,520 10,444 10,099 10,495 10,094 11,443 +1,349 EURm vs. 9M09 Time deposits 1,785 3,275 2,805 2,181 2,244 2,637 +393 EURm vs. 9M09 Repos 735 2,216 1,229 702 389 158 Deposits & Repos 12,040 15,935 14,133 13,378 12,
Slide 13: Non Interest Income
Non Interest Income Asset Management & Brokerage Banking Services Insurance Trading Other 70 63.9 • Asset management fees grew significantly, also net of 45 48.3 performance fees that amounted 44.6 40.3 39.5 38.8 to EURm15 approximately 36.6 EURm 33.5 32.9 35 17.3 14.8 12.6 11.7 12.1 7.0 8 6.4 2.9 *
Slide 14: Personnel and Costs
Personnel and Costs Employees 5,992 6,000 • Headcount as at the end of 2009 was lower by 252 units compared to 2008, 5,900 in line with business plan target 5,800 5,740 5,700 5,600 2008 2009 635.6 661.8 10 EURm non recurring Abaxbank restructuring charges in 3Q09* • Personnel Cost was under control
Slide 15: Credit Quality (1/2)
Credit Quality (1/2) 400 363.8 Watchlist inflows in 4Q09 are mainly due to the application of 350 317.8 new rules issued by Bank of Italy about “Incagli Oggettivi” that 300 290.5 amounted to 67 EURm 2008 255.4 253.9 250 1Q09 215.6 1H09 EURm 200 165.6 154.1145.0 9M09 150 127.8 2009 102.3 95.3 95.5 10
Slide 16: Credit Quality (2/2)
Credit Quality (2/2) 2.66 2.08 0.59 • NPLs Coverage is 61.7% at the end of 2009 % on Net Tolal Loans 1.93 1.77 compared to 60.3% at September, 30th and 1.56 0.50 0.56 to 62.0% at the end of 2008 0.55 1.27 0.57 0.82 • Net Watchlist Loans increase is due to the 0.70 0.65 0.52 effect of the introductio
Slide 17: P&L
P&L EURm FY08* 1Q09 2Q09 3Q09 4Q09 FY09 % yoy Total Income 916.1 222.3 226.3 262.5 237.5 948.6 +3.5 Operating Costs** -635.6 -165.0 -163.2 -171.9 -161.7 -661.8 +4.1 Gross Operating Profit 280.5 57.3 63.1 90.6 75.8 286.8 +2.2 Amortization and Depreciation -36.9 -7.1 -7.2 -7.9 -7.3 -29.5 -20.1 Net Ope
Slide 18: Assets and Liabilities
Assets and Liabilities 8,000 7,191 • Exposure to financial markets 6,000 5,395 went down during 4Q09 due to 4,510 Abaxbank assets shrinkage as EURm 3,758 4,000 3,381 well as the unwinding of carry 2,362 2,0252,263 trade deals previously put in 2,000 1,582 1,256 1,4031,243 1,129 1,089 1,084 place - F
Slide 19: Capital Ratios
Capital Ratios 10.0% 10.9% 11.7% 11.1% 1800 9.6% • Loan volumes increase and dividend 1600 7.5% 7.9% 8.5% 8.1% payment push slightly down capital 1400 7.2% ratios in comparison with the previous 1200 quarter EURm 1000 1908 1942 1941 1796 1807 800 1376 1415 1413 • Tier 1 capital is all core: no hybri
Slide 20: Agenda
Agenda • A though scenario in 2009 • Actions taken during first nine months of 2009 CRESCERE • 4Q09 performance and FY09 Results PER CONTINUARE • New 2012 targets reading AD ECCELLERE 20
Slide 21: 2010-2012 Business Plan CAGR
2010-2012 Business Plan CAGR EURm 2009 2012E CAGR 10-12 • For a better understanding of the recently presented 2010-2012 business plan, it is now Net Interest Income 431 613 12.5% available the comparison between FY09 results Net Fees 339 445 9.5% and plan targets. Trading 127 57 -23.5% Other 52 55
Slide 22: Disclaimer and Contacts
Disclaimer and Contacts Pursuant to Article 154-bis, section 2 of the “Consolidated Law on Financial Intermediation” dated Feb 24, 1998, the Financial Manager Paolo Tommasini, declares that the accounting information contained in this document correspond to documentary records, ledgers and accountin