Banca Sistema S.p.A. · MIL:BST
Banca Sistema — Q1 2025 Earnings Presentation
26 slides from Banca Sistema's earnings presentation, May 16, 2025
Slide 1: Group Profile May 2025
GROUP PROFILE MAY 2025 BANCA SISTEMA
Slide 2: Agenda
AGENDA Slides • Banca Sistema Overview Slides 3-63-6 Slides • 1Q25 Results 8-25 • Annexes ©2011-2025 BANCA SISTEMA – UNAUTHORIZED REPRODUCTION IS PROHIBITED 2
Slide 3: Among the Top Italian Specialty Finance
AMONG THE TOP ITALIAN SPECIALTY FINANCE Who we are Customer loans (31.03.2025) • Independent and diversified specialty finance player in Italy • Banca Sistema Overview Factoring • Established in 2011 (HQ in Milan), IPO in 2015 6% 8% Salary and Pension secured loans • Serving more than 400 corporates
Slide 4: Factoring Represents 59% of Customers Loans
FACTORING REPRESENTS 59% OF CUSTOMERS LOANS Business Model Factoring customer loans What / How we do it €m Banca Sistema purchases receivables, mainly without recourse, from PA suppliers in Italy and Spain, but also Tax credits, receivables related to Football and Local transport subsidies: 1,808
Slide 5: CQ Represents 26% of Customer Loans
CQ REPRESENTS 26% OF CUSTOMER LOANS Business Model CQ customer loans What / How we do it €m • CQ is a personal loan ruled by the Italian civil law. The instalments are automatically 801 deducted from the debtor’s salary or pension up to 1/5 of the net amount based on an 799 701 obligation between th
Slide 6: Pawn Broking: Business with High Income Margin
PAWN BROKING: BUSINESS WITH HIGH INCOME MARGIN Business Model Pawn loans outstanding What / How we do it €m 153 Secured loans backed mainly by gold, but also jewelry, diamonds and one watch 144 brands 123 Fast loan procedure Assets not redeemed (less than 5% of the overall portfolio on average
Slide 7: Agenda
AGENDA Slides • Banca Sistema Overview 3-6Slides 3-6 Slides • 1Q25 Results 8-25 • Annexes ©2011-2025 BANCA SISTEMA – UNAUTHORIZED REPRODUCTION IS PROHIBITED 7
Slide 8: 1Q25 Results at a Glance
1Q25 RESULTS AT A GLANCE ▪ Total income: +60% y/y (+21% y/y net of LPI’s accrual on receivables with positive ECHR’s ruling) ▪ Adjusted interest income: +106% y/y (+42% net of accrual on receivables with positive ECHR’s ruling) driven by widening in asset spread, higher contribution from financial p
Slide 9: Factoring Commercial Performance
FACTORING COMMERCIAL PERFORMANCE Outstanding breakdown (31.03.2025)² €1,625m Factoring Loans Outstanding¹ By Type of Product By Obligor (%) % €m PA accounts for 57% 1,808 Tax Receivables Corporate Public Sector 17% 43% Organizations 4% 1,569 Non Local Local Recourse Healthcare Entities 1,519 52% Org
Slide 10: CQ and Pawn Loans Commercial Performance
CQ AND PAWN LOANS COMMERCIAL PERFORMANCE CQ Loans Outstanding CQ Loans by Obligor Pawn Loans Outstanding €m % €m +25% 801 Private 19% 153 PA 144 employees 123 35% 701 675 Pensioners 46% 1Q24 FY24 1Q25 Private Pensioners PA employees 1Q24 FY24 1Q25 • €29m turnover in 1Q25 (€56m in 1Q24) ▪ ~82k contra
Slide 11: 1Q25 – Balance Sheet
1Q25 – BALANCE SHEET Figures in millions of Euro Change in % 31.12.2024 31.03.2025 31.03.2025 vs ▪ Govies’ portfolio decreased ytd (nominal value €1073m vs 31.12.2024 €1178m as of YE24) with an average duration of 20 months (16 ASSETS months as at 31.12.2024), exclusively Italian Government bonds: C
Slide 12: Total Gross Income and Adjusted Income Margin Evolution
TOTAL GROSS INCOME AND ADJUSTED INCOME MARGIN EVOLUTION 1Q25 Total gross income up +10% y/y, with a higher contribution from factoring (€ 46.4m or +€4.5m y/y), pawn loans (€9.5m or +2.9m y/y), CQ loans Total Gross Income¹ €5.0m or +0.4m y/y) and decreasing trend in SMEs €m State guaranteed loans (
Slide 13: Total Income Breakdown
TOTAL INCOME BREAKDOWN ▪ 1Q25 Total Income up 60% y/y, thanks to positive trend y/y in all the divisions, positive contribution Total Income Breakdown¹ from the financial portfolio and lower cost of €m funding y/y. 42.6 ▪ Adj NII (NII + trading on Superbonus) increased by 3.8 106% y/y thanks to fact
Slide 14: Cost Base Consolidating
COST BASE CONSOLIDATING Total Operating Costs Personnel Expenses Other Operating Costs, D&A and €m €m Risk Provisions €m 8.6 20.1 8.1 18.5 11.5 10.3 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 FTEs Evolution (#) ▪ Total costs increased by +9% y/y due to higher personnel costs and higher administrative costs. 358
Slide 15: Net Income Evolution by Business Units
NET INCOME EVOLUTION BY BUSINESS UNITS ▪ Factoring: the division confirmed the excellent results registered in 2024 1Q25 Net Income Breakdown by BU posting in 1Q25 €13,1m net income (€8,0m as of 1Q24) or +64% y/y thanks to €m widening of asset spread, the accounting of part of the LPIs related to 16
Slide 16: Funding Cost Down y/y and q/q
FUNDING COST DOWN Y/Y AND Q/Q Total Funding Breakdown Funding Cost (%) (%) 78% 3.97% 76% 75% 3.63% ▪ Retail Funding represents 75% of total 70% 3.62% 3.27% 3.57% funding as of 1Q25. 3.24% 3.16% 2.84% 3.50% 3.55% ▪ Term deposits decreased by 3.3% y/y 2.90% but +2% q/q, Retail funding 21% 2.57% decrea
Slide 17: Asset Quality: NPE's Increase Due to Past Due New Classification
ASSET QUALITY: NPE’S INCREASE DUE TO PAST DUE NEW CLASSIFICATION Gross Non Performing Exposure Net Non Performing Exposure €m €m 520 581 150 188 333 275 39 287 60 221 180 141 178 333 128 331 52 33 51 101 36 58 57 100 1Q24 FY24 1Q25 1Q24 FY24 1Q25 Past Due Unlikely to Pay Bad Loans Past Due Unlikely
Slide 18: Regulatory Capital Above Minimum Requirements
REGULATORY CAPITAL ABOVE MINIMUM REQUIREMENTS Capital Ratios* €m/% RWA Breakdown €m 1,826 15.8% 16.1% 14.9% 1,632 207 12.7% 13.3% 12.4% 212 1,619 272 1,420 261 215 226 233 187 FY24 1Q25 CET1 capital Total capital Credit Risk Operational Risk & Market Risk 1Q24 FY24 1Q25 ▪ CET1 and Total Capital as a
Slide 19: Annexes
ANNEXES ©2011-2025 BANCA SISTEMA – UNAUTHORIZED REPRODUCTION IS PROHIBITED 19
Slide 20: Factoring: Breakdown by Type and Customers
FACTORING: BREAKDOWN BY TYPE AND CUSTOMERS Factoring Turnover €m -20% y/y due lower receivables from 1,368 Superbonus and Private sector 1,069 1,089 Turnover generated by agreements with Italian Retail banks: 1Q23 1Q24 1Q25 11% in 1Q25 1Q25 Factoring Turnover breakdown By Geography (1Q25) Customer C
Slide 21: Late Payment Interest
LATE PAYMENT INTEREST Total Collected Cashed-in LPI Due LPI Stock - Assets in Legal Action €m €m 7.6 6.7 300 6.0 250 94 60 4.5 200 105 88 99 103 150 €95.5m accrual 3.1 3.3 2.9 booked through 100 189 2.1 156 161 145 149 P&L 136 50 0 FY23 1Q24 1H24 9M24 FY24 1Q25 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q2
Slide 22: 1Q25 – Income Statement
1Q25 – INCOME STATEMENT Figures in millions of Euro 1Q 2025 vs 1Q 2024 1Q 2024 1Q 2025 change in % Interest income 48.2 57.5 19% Interest expenses (36.4) (33.0) -9% Net interest income 11.8 24.5 >100% Commission income 14.0 10.1 -28% Commission expenses (5.4) (4.4) -19% Net commission 8.6 5.7 -34% N
Slide 23: Asset Quality: Breakdown by Loans
ASSET QUALITY: BREAKDOWN BY LOANS Gross Bad loans 0.2% 1.4% 6.7% 2.6% 0.1% 17.0% 16.3% 14.1% 0.2% 79.1% 81.0% 81.4% 31.12.2023 31.12.2024 31.03.2025 Gross Unlikely to Pay 9.70% 15.70% 20.20% 51.20% 54.20% 57.80% 30.10% 22.00% 39.10% 31.12.2023 31.12.2024 31.03.2025 Conservatorships (factoring) Facto
Slide 24: Disclaimer
DISCLAIMER The distribution of this presentation in other jurisdictions may be restricted by law or regulation. Accordingly, persons who come into possession of this document should inform themselves of, and observe, these restrictions. To the fullest extent permitted by applicable law, the companie
Slide 25: Christian Carrese, Head of Investor Relations
Christian Carrese Head of Investor Relations christian.carrese@bancasistema.it +39 02 80280403 ©2011-2025 BANCA SISTEMA – UNAUTHORIZED REPRODUCTION IS PROHIBITED 25
Slide 26: Palazzo Largo Augusto
PALAZZO LARGO AUGUSTO Largo Augusto 1/A, ang. via Verziere 13 20122 Milano Tel. +39 02 8028 0241 info@bancasistema.it bancasistema.it