Mediobanca - Banca Di Credito Finanziario S.p.a. · MIL:MB
Mediobanca - Banca Di Credito Finanziario — Mediobanca — Q1 FY2021 Earnings Presentation
41 slides from Mediobanca - Banca Di Credito Finanziario's earnings presentation, Oct 27, 2020
Slide 1: Mediobanca 1Q/3M Results as at 30 September 2020
MEDIOBANCA 1Q/3M RESULTS AS AT 30 SEPTEMBER 2020 Milan, 27 October 2020
Slide 2: Agenda
Agenda Section 1. Executive summary Section 2. 1Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Asset quality by division 2. Corporate loan book composition 3. Divisional results by quarter 4. Glossary
Slide 3: 1Q21: A Positive Start to the New Financial Year
1Q21: A POSITIVE START TO THE NEW FINANCIAL YEAR ALL BUSINESS SEGMENTS REACTING FAST Executive summary Section 1 Sound business recovery after lockdown, ahead of expectations and despite seasonality IB revenues picking up, pipeline rebuilding New loans in Consumer Banking back to 75% of pre-Covid le
Slide 4: 1Q/3M Results: Snapshot
1Q/3M RESULTS: SNAPSHOT Executive summary Section 1 Mediobanca Group – 1Q results as at September (€) Mediobanca Group – 1Q results as at September (€) Revenues Cost/income CoR Net profit Gross NPL/Ls ROTE adj CET1 ratio DPS €626m 46% 61 bps €200m 16.2%1 +3% QoQ -3pp QoQ Halved QoQ +4x QoQ 4% 9% 70%
Slide 5: Agenda
Agenda Section 1. Executive summary Section 2. 1Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Asset quality by division 2. Corporate loan book composition 3. Divisional results by quarter 4. Glossary
Slide 6: Robust Activity in 1Q21 in CIB
ROBUST ACTIVITY IN 1Q21 IN CIB … STRONG PRESENCE IN EUROPEAN LANDMARK TRANSACTIONS 1Q - Group results Section 2 Advisory revenues (€m) ECM/DCM revenues (€m) Markets revenues (€m) ECM DCM 41 5 35 35 34 33 31 29 26 19 5 19 10 6 5 4 2 0 1 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20
Slide 7: …As Well as in WM
…AS WELL AS IN WM … PROFITABILITY OF MANAGED ASSET IMPROVED 1Q - Group results Section 2 Net New Money by product TFAs trend (€bn) (Affluent & Private, €bn) +3% YoY +1% QoQ 63.6 64.2 62.4 +0.9 +0.2 2.1 (0.5) 22.6 23.8 24.2 0.7 0.8 1.0 1.1 0.9 0.5 1.3 1.3 0.6 1.0 0.6 39.8 39.8 40.0 0.3 -0.6 Sept19 Ju
Slide 8: …Produced the Strongest Quarter in Fee Income of Last 3Y
…PRODUCED THE STRONGEST QUARTER IN FEE INCOME OF LAST 3Y 1Q - Group results Section 2 Fees trend by division (€m, 3M) Fees mix evolution (€m, 12M) +22% +32% 189 FY20 47% 34% 630 174 155 159 143 88 FY19 44% 36% 611 65 +54% 52 57 52 FY16 28% 47% 450 89 77 76 70 72 33 36 34 FY13 19% 48% 410 25 29 1Q20
Slide 9: Progressive Normalization in Lending
PROGRESSIVE NORMALIZATION IN LENDING … IN CONSUMER BANKING ESPECIALLY 1Q - Group results Section 2 Consumer Mortgages Corporate New loans and loan book (€bn) New loans and loan book (€bn) New loans1 and loan book (€bn) 13.7 13.7 13.4 16.5 16.5 16.5 15.4 15.3 13.0 12.9 10.1 10.2 10.4 9.8 Loan book 9.
Slide 10: …Resulted in Resilient NII and Revenues Well Above €600m
…RESULTED IN RESILIENT NII AND REVENUES WELL ABOVE €600M CORE REVENUES (NII & FEES) UP 9% QoQ 1Q - Group results Section 2 NII trend by division (€m, 3M) Group revenues trend by source (€m, 3M) -9% +3% -1% -1% 684 641 606 626 136 48 582 44 359 362 360 361 57 55 36 357 66 +9% 35 48 69 67 67 69 72 174
Slide 11: Loans Under Moratoria Halved, Over in Consumer Banking
LOANS UNDER MORATORIA HALVED, OVER IN CONSUMER BANKING 1Q - Group results Section 2 Moratoria: 48% expired, ~90% have resumed regular payments … with outstanding halved to just 3% of Group loans Gross carrying amount (€bn, Sept20)¹ % Moratoria on 5% Group loans Total Total o/w % expired granted outs
Slide 12: Low Risk Profile Reaffirmed
LOW RISK PROFILE REAFFIRMED 1Q - Group results Section 2 Loans under moratoria well below Italian average, Stage 2 high coverage, stage 3 aligned to EU averages Total granted moratoria Stage 3 loans Stage 2 loans % of loans¹ % of loans2 % of loans2 22.0% 25% 20.0% 3% 10.3% 15.0% 20% outstanding 3.8%
Slide 13: CoR Significantly Down, Healthy Asset Quality Trend
CoR SIGNIFICANTLY DOWN (~60bps), HEALTHY ASSET QUALITY TREND 1Q - Group results Section 2 Cost of risk by segment (bps) Asset quality indicators Gross NPL (“Stage 3”, €m and %) and coverage (%) 361 NPLs/LS 4.3% 4.1% 4.2% gross 248 223 197 185 55% 57% 141 3,000 53% 60% 85 2,500 58 61 2,016 39 1,976 1
Slide 14: 1Q/3M21 Results: Net Profit at €200m
1Q/3M21 RESULTS: NET PROFIT AT €200m 1Q - Group results Section 2 Financial results Highlights 1Q21 4Q 1Q20 D D Strong start to FY21, with 1Q21 back to €200m net profit and 9% ROTE €m Sept.20 June20 Sept.19 YoY1 QoQ1 on a larger capital base (CET1@16.2%) Total income 626 606 684 -9% +3% Robust trend
Slide 15: CET1 @16.2% with Dividend Payout @70% Accrued
CET1 @16.2% WITH DIVIDEND PAYOUT @ 70% ACCRUED 1Q - Group results Section 2 CET1 ratio (phase-in) up to 16.2%1 Payout ratio and CET1 ratio +200 bps +10 bps 120% 17.0% 16.1% 16.2% -10bps +5bps 100% 16.0% 16.1% +40bps -30bps 16.2% 15.0% CET180% ratio 14.2% 14.1% 14.2% 14.0% 60% 13.0% 40% 70% 12.0% Pay
Slide 16: Agenda
Agenda Section 1. Executive summary Section 2. 1Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Asset quality by division 2. Corporate loan book composition 3. Divisional results by quarter 4. Glossary
Slide 17: WM: Steady Growth in Fees, Net Profit, Profitability
WM: STEADY GROWTH IN FEES, NET PROFIT, PROFITABILITY ROAC 20% 1Q - Divisional results Section 3 Financial results Highlights 1Q21 4Q 1Q20 D D Ongoing delivery of BP19-23 strategy: €m Sept.20 June20 Sept.19 YoY1 QoQ1 Distribution: recruiting restarted after lockdown, with Total income 146 140 140 +4%
Slide 18: Affluent/Private: AUM and Fees Up
AFFLUENT/PRIVATE: AUM and FEES UP 1Q - Divisional results Section 3 Revenues (3M,€m) NNM trend (3M,€bn) TFA stock trend (€bn) +11% +8% 0.9 +3% 0.5 0.9 0.8 81 83 77 27.8 28.7 0.3 25.8 2.9 2.9 Affluent 27 2.6 +22% 26 +4% 22 10.0 8.4 9.6 55 54 56 14.8 15.3 15.7 1Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 S
Slide 19: Consumer Banking: Recovering Quickly from Lockdown
CONSUMER BANKING: RECOVERING QUICKLY FROM LOCKDOWN EARNINGS AND PROFITABILITY STAY HIGH: ROAC@27% 1Q - Divisional results Section 3 Financial results Highlights 1Q21 4Q 1Q20 D D Distribution: direct personal loans distributed via internet up to €m Sept.20 June20 Sept.19 YoY1 QoQ1 25% (from 15% 1Q20)
Slide 20: Reassuring Trend in Asset Quality
REASSURING TREND IN ASSET QUALITY 1Q - Divisional results Section 3 Moratoria expired with no major issues and … … early deterioration in asset quality indicators now back to (€m, Sept20) pre-lockdown levels Outstanding €0.1bn 3M avg. 10% Expired €1.2bn 88% back to regular payments 9% 255 Monthly da
Slide 21: CIB: Revenues Up 22%, Net Profit Up 48%, Profitability Picking Up
CIB: REVENUES (UP 22%) NEP PROFIT (UP 48%) PROFITABILITY PICKING UP ROAC@19% 1Q - Divisional results Section 3 Financial results Highlights Strong start to FY21 in CIB, with all areas showing a solid 1Q21 4Q 1Q20 D D €m Sept.20 June20 Sept.19 YoY1 QoQ1 increase and positive pipeline Total income 183
Slide 22: 1Q 20/21 Mediobanca CIB – Selected Relevant Transactions
22 1Q 20/21 MEDIOBANCA CIB – SELECTED RELEVANT TRANSACTIONS M&A – Senior role in landmark transactions Italy Ongoing Italy September 2020 Italy Ongoing Italy Ongoing France October 2020 France Ongoing Undisclosed €5,5bn Undisclosed Undisclosed Undisclosed €3.4bn Public Exchange Offer Acquisition of
Slide 23: PI – P&L Impacted by One-offs
PI –P&L IMPACTED BY ONE-OFFS ROAC@13% 1Q - Divisional results Section 3 Financial results Highlights 1Q21 4Q 1Q20 D D 1Q21 net profit at €52m, down 26% QoQ and 62% YoY, due €m to one-offs reported by AG Sept.20 June20 Sept.19 YoY1 QoQ1 Total income 46 61 137 -66% -24% Negative impact of €24m in 1Q21
Slide 24: HF: A&L and Key Indicators at Comfortable Levels
HF: A&L AND KEY INDICATORS AT COMFORTABLE LEVELS 1Q - Divisional results Section 3 Financial results Highlights 1Q21 4Q 1Q20 D D €m Sept.20 June20 Sept.19 YoY1 QoQ1 ALM assuring comfortable funding position with CoF flat, while retaining ample liquidity buffer to cope with market Total income (3) 6
Slide 25: Agenda
Agenda Section 1. Executive summary Section 2. 1Q Group results Section 3. Divisional results Section 4. Closing remarks Annexes 1. Asset quality by division 2. Corporate loan book composition 3. Divisional results by quarter 4. Glossary
Slide 26: Key Topics Ahead
KEY TOPICS AHEAD 1Q – Closing remarks Section 4 Top line resilience Better CoR trend Strong commitment to dividend confirmed distribution: payout @ 70% for FY21 Fees: positive trend ahead, supported Moratoria: over in Consumer Pending ECB guidance / by WM and IB where not all fees Banking, manageabl
Slide 27: Closing Remarks
CLOSING REMARKS 1Q – Closing remarks Section 4 1Q21: positive start to the new financial year with all business segments reacting fast to lockdown Net profit up 4x to €200m, ROTE adjusted 9% CET1 at 16.2%1 (flat QoQ), with 70% dividend payout2 accrued Revenues up 3% QoQ to €626m, driven by core reve
Slide 28: Mediobanca 1Q/3M Results as at September 2020
MEDIOBANCA 1Q/3M RESULTS AS AT 30 SEPTEMBER 2020 Milan, 27 October 2020
Slide 29: Agenda
Agenda Section 1. Executive summary Section 2. 1Q Group results Section 3. Divisional results Section 5. Closing remarks Annexes 1. Asset quality by division 2. Corporate loan book composition 3. Divisional results by quarter 4. Glossary
Slide 30: Asset Quality by Divisions
ASSET QUALITY BY DIVISIONS Net NPLs of which bad loans NPL coverage NPL as % of loans (“deteriorate”) (“sofferenze”) 4.3% 4.1% 4.2% 55% 57% Gross Mediobanca 926 874 877 53% 2.1% 1.9% 1.9% +13% Group 80 78 88 Net Sept19 June20 Sept20 Sept19 June20 Sept20 Sept19 June20 Sept20 Sept19 June20 Sept20 3.7%
Slide 31: Corporate Loan Book
CORPORATE LOAN BOOK WB loan book by sector (as at Sept20) 18% High impact from Covid-19 Immediate impact from Covid-19 11% 9% 9% 7% 7% 6% 6% 4% 3% 2% 2% 2% 2% 2% 2% 2% 1% 1% 1% 1% 0.6% 0.4% WB exposure skewed to IG/crossover2 (as at Sept20) WB loan portfolio by geography3 (as at Sept20) Germany 8% F
Slide 32: Mediobanca Group P&L
MEDIOBANCA GROUP P&L 3M results as at September 2020 Annex 1Q21 4Q20 3Q20 2Q20 1Q20 D D €m Sept20 June20 Mar20 Dec19 Sept19 QoQ1 YoY1 Total income 626 606 582 641 684 +3% -9% Net interest income 357 361 360 362 359 -1% -1% Fee income 189 143 159 174 155 +32% +22% Net treasury income 36 48 (3) 57 35
Slide 33: Mediobanca Group A&L
MEDIOBANCA GROUP A&L 3M results as at September 2020 Annex D D €bn Sept20 June20 Sept19 QoQ1 YoY1 Funding 56.7 54.9 52.6 +3% +8% Bonds 19.3 18.8 19.3 +3% - Direct deposits (retail&PB) 24.2 23.8 22.6 +2% +7% ECB 6.5 5.7 4.3 +14% +50% Others 6.7 6.7 6.4 - +5% Loans to customers 46.8 46.7 45.0 - +4% CI
Slide 34: Wealth Management Results
WEALTH MANAGEMENT RESULTS 3M results as at September 2020 Annex 1Q21 4Q20 3Q20 2Q20 1Q20 D D €m Sept20 June20 Mar20 Dec19 Sept19 QoQ1 YoY1 Total income 146 140 145 159 140 +4% +4% Net interest income 68 67 66 69 69 +1% -1% Fee income 76 72 77 89 70 +5% +9% Net treasury income 2 1 3 1 2 +85% +33% Tot
Slide 35: Consumer Banking Results
CONSUMER BANKING RESULTS 3M results as at September 2020 Annex 1Q21 4Q20 3Q20 2Q20 1Q20 D D €m Sept20 June20 Mar20 Dec19 Sept19 QoQ1 YoY1 Total income 260 266 273 264 267 -2% -3% Net interest income 226 237 237 239 235 -5% -4% Fee income 34 29 36 25 33 +17% +4% Total costs (73) (77) (77) (79) (70) -
Slide 36: CIB Results
CIB RESULTS 3M results as at September 2020 Annex 1Q21 4Q20 3Q20 2Q20 1Q20 D D €m Sept20 June20 Mar20 Dec19 Sept19 QoQ1 YoY1 Total income 183 139 104 182 150 +31% +22% Net interest income 72 69 67 67 69 +4% +5% Fee income 88 52 52 65 57 +70% +54% Net treasury income 23 19 (15) 50 24 +21% -4% Total c
Slide 37: Principal Investing Results
PRINCIPAL INVESTING RESULTS 3M results as at September 2020 Annex 1Q21 4Q20 3Q20 2Q20 1Q20 D D €m Sept20 June20 Mar20 Dec19 Sept19 QoQ1 YoY1 Total income 46 61 67 49 137 -24% -66% Gains from disposals 0 0 0 0 0 Impairments 13 21 (40) 5 3 Net result 52 70 38 51 136 -26% -62% Book value (€bn) 4.2 3.9
Slide 38: Holding Function Results
HOLDING FUNCTION RESULTS 3M results as at September 2020 Annex 1Q21 4Q20 3Q20 2Q20 1Q20 D D €m Sept20 June20 Mar20 Dec19 Sept19 QoQ1 YoY1 Total income (3) 6 (1) (5) (6) n.m. -55% Net interest income (13) (14) (10) (15) (16) -8% -19% Net treasury income 7 19 7 6 6 -62% +15% Fee income 3 2 2 3 4 n.m.
Slide 39: Glossary
GLOSSARY MEDIOBANCA BUSINESS SEGMENT PROFIT & LOSS (P&L) and BALANCE SHEET CIB Corporate and investment banking DPS Dividend per share WB Wholesale banking EPS Earning per share EPS adj. Earning per share adjusted1 SF Specialty finance ESG Environmental, Social, Governance CB Consumer banking FAs Fi
Slide 40: Disclaimer & Declaration of Head of Financial Reporting
DISCLAIMER & DECLARATION OF HEAD OF FINANCIAL REPORTING Disclaimer This document includes certain projections, estimates, forecasts and consequent targets which reflect the current views of Mediobanca – Banca di Credito Finanziario S.p.A. (the “Company”) with regard to future events (“forward-lookin
Slide 41: 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 Marcella Malpangotto Tel. no. (0039) 02-8829.428 Email: investor.relations@medio