Credito Emiliano S.p.a. · MIL:CE
Credito Emiliano — H1 2005 Earnings Presentation
19 slides from Credito Emiliano's earnings presentation, September 2005
Slide 1: CREDEM Group First Half '05
CREDEM CREDEM Group First Half ’05 September 2005 Investor Relations – 1H05 results - update 1
Slide 2: The CREDEM Group today
CREDEM The CREDEM Group today Italy’s 14th largest banking group Italy’s 12th largest “asset manager” 700,000 customers and € 67 billion Total Business in total business Around 500 branches and business Loans 19% AUC centres and 5,000 employees 36% 19 companies operating in all Direct finance sector
Slide 3: Results
CREDEM Results Attachments Investor Relations – 1H05 results - update 3
Slide 4: Key figures: Profitability improves significantly
CREDEM Key figures Profitibility improves significatly Total income +12.8% norm. Operating costs +5.7% norm. 467,8 +11.7% 285.0 418.9 274.5 +3.8% 500 300 112.4 400 112.2 +0.2% 294.2 +12.7% 261.0 200 300 +9.9% +6.3% 200 162.3 172.6 100 157.9 173.6 100 0 0 06/04 06/05 06/04 06/05 Net interest income N
Slide 5: Key figures: Loans and fundings growing
CREDEM Key figures Loans and fundings growing Mkt 8.1% Funding from customers Total direct loans ( net of r epos) (non-inst it ut ional) +9.2%norm. +8.2%norm. 53.3 12.5 49.3 11.5 15 60 0,7 +14.2% +6.5% 0,6 24.0 22.6 10 40 10,8 11,8 +8.9% 16.8 +9.6% 15.3 5 20 Mkt 11.4 12.5 +9.6% 8.4% 0 0 06/04 06/05
Slide 6: Key indicators
CREDEM Key indicators 2003 2004 06/05 Mkt share funding 1.5% 1.5% 1.5% growth Mkt share loans 1.0% 1.0% 1.0% ROE 11.1% 14.2% 11,8% * profitability Net interest income / Total income Non interest income/ Total income 38.9% 61.1% 38.9% 61.1% 37.1% 62.9% * First half ROE Operating costs / Total income
Slide 7: Revenues up 13%
Revenues up 13% CREDEM Total income Spread and net interest income improve Margine d'intermediazione (€/mn) 2004 06/04 06/05 % yoy Net interest income 323.8 157.9 173.6 9.9% Commercial spread 2.73% 2.67% 2.89% +22 bps Net interest income has improved by 10%. The strength of the “core” loan sectors i
Slide 8: From total income to net profit
CREDEM From total income to net profit EBITDA + 26.6% EBIT + 38.4% (€/mn) 2004 06/04 06/05 % yoy Costs managed with flexibility and in line with the Total income 832.3 418.9 467.8 11.7% strategic plan (change at like for like perimeter of Personnel expenses -324.9 -162.3 -172.6 6.3% 5.7%). Depreciat
Slide 9: Income generation
CREDEM Income generation Figures normalized for "Garda" sale Breakdown of EBITDA contribution (€/mn) 2004 06/04 06/05 at 06/05 Total Income 823.8 414.6 467.8 . Captive 740.8 367.4 401.0 85.7% . Non captive 83.0 47.2 66.8 14.3% Operating costs -540.7 -269.7 -285.0 . Captive -476.8 -234.9 -249.8 87.6%
Slide 10: Distribution and HR
CREDEM Distribution and HR No. Of CREDEM Group branches and market share Distribution network 2003 2004 06/05 Credembanca and others 440 441 431 B.ca Euromobiliare 22 22 22 1 Bank branches 462 463 453 65 0.1 % 15 . Of which B.ca Garda 10 -10 14 1.1 % 0.4 % 0.5% Business centres 38 39 38 129 5 4.0 0.
Slide 11: Positive trend in deposits: Funding and asset management
Positive trend in deposits CREDEM Funding and asset management Breakdown of customer funding 2004 06/04 06/05 % yoy Deposits 7,795 7,215 8,588 19.0% Bonds 3,984 4,196 3,920 -6.6% Direct customers' funding 11,779 11,411 12,508 9.6% First-half trend in net inflows has been Portfolio management 3,245 2
Slide 12: Loans: Growth in core segments confirmed
CREDEM Loans Growth in core segments confirmed Cash loans by technical form Cash loans have increased by around 9%. Medium-term (net of repos) +8.9% loans have continued to grow (+14.5%), confirming the 11,8 10,8 market trend and now accounting for around 58% of total loans (55% at 6/04). +3.3% 12 1
Slide 13: Loans: Repositioning of loans completed
CREDEM Loans Repositioning of loans completed "Gross" loans to customers Figures normalized for Garda sale (€ mn) % change The growth in loans is following the planned strategy Breakdown by segment 2003 2004 06/056/05-12/03 of: CORPORATE 5,573 4,909 4,776 -14.3% . % of total 51 42 40 • selective rep
Slide 14: Other risks
CREDEM Other risks Market risks (€ mn) 2003 2004 06/05 V.A.R. banking and trading book (99%. 10 days) Credembanca . average 2.8 1.7 1.7 . maximum 4.8 3.7 2.4 Market risks mostly refer to Credembanca and Abaxbank. Abaxbank . average 2.3 1.1 1.0 . maximum 3.9 2.0 2.5 On the whole, risks are limited wi
Slide 15: Principal effects of IAS
CREDEM Principal effects of IAS (€mn) IAS - net effects on equity 2004 06/05 Equity under "Italian principles" 1,057 1,101 Revaluation of buildings 56 58 Depreciation rules on fixed assets 7 9 Time value effect -3 -2 Amortized cost effect -8 -7 The adoption of new international Effect on "finance ar
Slide 16: Attachments
CREDEM Results Attachments Investor Relations – 1H05 results - update 16
Slide 17: Capital structure
CREDEM Capital structure Agreement More than between 226 2,900 shareholders shareholders Principali azionisti %sul c.s. Famiglia Maramotti 35.5% Pictet Cie 4.9% Eredi Savioli 2.9% Finc orrad 2.1% Allianz Subalpina 1.7% 72.6% 27.4% CREDEMHOLDING 72.6% 27.4% CREDEM Investor Relations – 1H05 results -
Slide 18: Credem stock
CREDEM Credem stock 1997 1998 1999 2000 2001 2002 2003 2004 No. shares (/000) 225,839 253,408 265,464 270,679 272,537 273,309 274,350 275,417 Net equity per share 2.07 2.34 2.27 2.55 2.86 3.08 3.23 3.46 Earnings per share 0.22 0.26 0.17 0.51 0.39 0.40 0.35 0.47 ROE 11.6% 13.5% 8.5% 21.3% 14.6% 13.5%
Slide 19: Structure and Businesses
CREDEM Structure and Businesses CREDEM Commercial Banking Wealth Management Investment Banking Other 100% 98.5% 50% * 100% 100% Life insurance 100% 100% 50% * 59.5% 100% FIDUCIARIA Spa Insurance 100% * na 100% * 100% 100% 100% 100% 100% * Not consolidated Investor Relations – 1H05 results - update 1
Credito Emiliano S.p.A. (CREDEM) — H1 2005 Earnings Presentation on 6ix