Credito Emiliano S.p.a. · MIL:CE
Credito Emiliano — 9M24 Earnings Presentation
24 slides from Credito Emiliano's earnings presentation, 2024
Slide 1: Group Results 9M24
yr S= GROUP RESULTS 9M24
Slide 2: 9M24: Highlights
9M24: HIGHLIGHTS €486 MLN 19.5% 17.1% PROFITABILITY NET PROFIT ROTE ROE Gross NPL Ratio Net NPL 2.7% Ratio 2.3% 9M24 0.8% 1.9% ASSET QUALITY 15.75% CET1 8.15% Ratio 7.60% CAPITAL SOUNDNESS CET1 Ratio calculated at Credemholding level (prudential perimeter). Lowest P2R among banks directly supervised
Slide 3: 9M24: Highlights
9M24: HIGHLIGHTS +0.7% +2.0% +1.5% VOLUMES YoY YoY YoY Loans -1.4% Direct funding YoY +2.6 9M24 €BN PRODUCTION Customer funding Net inflows >1.5 MLN +5.3% VS 9M23 CUSTOMERS Total customers Loans: ABI Monthly Outlook October 2024 Credem Group net inflows include AUM, AUC, direct and insurance net inf
Slide 4: Business Diversification
BUSINESS DIVERSIFICATION Operating Income 472.1 475.5 460.6 500.9 525.3 504.4 480.0 Core Operating Income** 422.0 460.4 457.7 491.0 480.6 471.9 468.2 €/million 0.3% 0.6% 2.3% 1.9% 2.1% 2.0% 3.9% 8.6% 2.9% 0.0% 4.4% 4.6% 0.4% 50% 57% 62% 60% 54% 56% 58% 40% 40% 38% 38% 37% 37% 40% -0.7% 1Q23 2Q23 3Q2
Slide 5: Contribution to Consolidated Net Profit
CONTRIBUTION TO CONSOLIDATED NET PROFIT Commercial banking Credem Banca €281.9 mln Private Banking Credem Euromobiliare €57.0 mln Private Banking Extended Banking Services, Consumer Credit & Technology Credem Factor Avvera Credemtel €59.6 mln Credem Leasing MGT Wealth Management Euromobiliare SGR €1
Slide 6: Reclassified Income Statement
RECLASSIFIED INCOME STATEMENT Δvs ∆ vs • Revenue growth continued (+7.2% vs 9M23) thanks to both the €/million 2Q24 3Q24 9M23 9M24 2Q24 9M23 expansion of the NII (+7.5% vs 9M23) and the excellent dynamics of Net Interest Income 284.6 277.4 -2.5% 788.4 847.6 7.5% the commission components, with the N
Slide 7: Net Interest Income
NET INTEREST INCOME Net Interest Income (€/mln) NII reached €277 million in 3Q24, a decrease compared to 2Q24, due to the fall in the interest rate curve and the contraction of average volumes in the 303 quarter, both of loans, due to seasonality, and of the securities portfolio 284 286 285 277 270
Slide 8: Securities Portfolio
SECURITIES PORTFOLIO Securities portfolio breakdown (€/mln, %) Italian government bond (€/bn) 12,996 11,860 12,468 13,044 12,508 11,965 11,609 4.7 4.8 4.7 4.2 4.0 4.0 3.8 Ita Govies 9M24 HTC 3.7 HTCS 0.1 FVTPL 0.0 38% 35% 38% 36% 32% 33% 33% Total 3.8 1Q23 1H23 9M23 FY23 1Q24 1H24 9M24 4% 4% 4% 4% 4
Slide 9: Non Interest Margin
NON INTEREST MARGIN Total* (€/mln) 237.3 206.0 176.5 198.0 239.7 219.7 202.6 Performance Fees 40.5 13.8 23.0 23.0 Income from Financial 0.2 1.8 53.6 53.7 56.1 52.3 52.7 52.8 Activities 54.1 Banking Fees 21.7 24.1 14.0 23.4 18.4 22.2 19.8 Insurance Income 109.3 109.9 97.8 110.5 111.4 109.9 109.8 Asse
Slide 10: Operating Costs and D&A
OPERATING COSTS AND D&A Operating costs (€/mln) Employees 6,608 6,616 6,628 6,627 207 206 188 231 221 223 202 6,195 6,201 6,219 6,068 6,140 5,899 5,763 5,609 64 70 73 63 65 67 62 167 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 3Q24 144 142 127 152 150 135 Financial Advisors 1Q23 2Q23 3Q23
Slide 11: Loans to Customers
LOANS TO CUSTOMERS Loans to customers (€/bn) Other Loans 9.8 9.8 9.7 9.6 9.6 9.3 9.8 Residential Mortgage 10.4 10.5 10.6 10.6 10.7 10.8 Leasing 10.1 3.2 3.2 3.3 3.3 3.3 3.3 3.3 Consumer Finance 2.8 3.0 3.1 3.2 3.3 3.5 3.6 Short-Term Loans 7.9 8.3 7.8 8.9 7.7 8.1 7.6 1Q23 1H23 9M23 2023 1Q24 1H24 9M2
Slide 12: Group Customers Funding: Net Inflows Breakdown
GROUP CUSTOMERS FUNDING: NET INFLOWS BREAKDOWN AUC Direct Deposits AUM + Insurance Total NetInflows Total Net Inflows Total TotalNet Net Inflows netofofCorporate Inflows net Corporate 4,592 3,410 3,394 3,569 3,268 3,552 2,962 2,932 3,112 2,303 2,028 2,575 1,336 1,319 1,482 930 970 700 611 596 497 12
Slide 13: Deposits, AUM and Insurance
DEPOSITS, AUM AND INSURANCE Total customer funding Direct deposits & retail bonds** €/mln 9M23 FY23 9M24 Sight / Saving Depo. 35,631 36,017 36,570 Industry Credem +2.0% YoY Retail Bonds & Other Deposits* 1,287 1,146 1,097 +156% Total Direct Funding 36,918 37,163 37,667 Insurance Reserves 7,863 8,173
Slide 14: Asset Quality: Gross NPL Ratio and Cost of Risk
ASSET QUALITY: GROSS NPL RATIO AND COST OF RISK Gross Non Performing Loans (€/mln,%) 2022 • Gross non-performing loans remained low at 2023 373 359 351 at €670 million, confirming the absence of 321 298 276 significant NPL inflows 9M24 Bad Loans Disposal Bad Loans • Both the cost of risk and the def
Slide 15: NPL: Coverage
NPL: COVERAGE NPL (€/mln) Gross Net Coverage Bad Loans 275.7 54.5 80.2% UTP Loans 351.0 189.0 46.1% Past Due 43.5 31.5 27.6% Total NPL 670.2 275.0 59.0% + Net NPL +275.0 - (Shortfall + Addendum + Calendar) -6.9 NPL Net of Shortfall 268.1 Coverage incl. Shortfall 60.0% Stage 2 (% of gross loans) • NP
Slide 16: Bonds Issuances and Maturities
BONDS ISSUANCES AND MATURITIES Recent issues (€/mln) Maturities (€/mln) Retail Wholesale 0 100 200 300 400 500 600 Social €/mln Jan-24 Covered Bond Green 24 500+ Covered Bond 750+ Sep-23 Social SP 500 100 Jul-23 Social SP Retail 2023 Jul-23 Social SP Retail May-23 Green SNP Senior Preferred 600 500
Slide 17: Liquidity
LIQUIDITY NSFR LCR 232% 137% 135% 132% 167% 160% FY22 FY23 9M24E FY22 FY23 9M24 Loan to Deposit Ratio* 0.95 0.96 0.92 • Liquidity ratios remained sound and well above minimum capital requirements, enabling the Group to have a greater flexibility in setting future funding strategies FY22 FY23 9M24 *
Slide 18: Liquidity Reserves
LIQUIDITY RESERVES Liquidity Reserves (€/bn) • The total value of the Group's Liquidity Reserves stood at €16.8 billion, equal to Total 16.8 26.4% of Total Assets 17.0 • The value of Cash and deposits with Central Banks decreased to €3 billion Other ECB eligible 5.7 unencumbered assets 5.8 • ECB eli
Slide 19: Consolidated Capital Ratios
CONSOLIDATED CAPITAL RATIOS Fully phased figures Fully phased figures Credem Group Credemholding €, million FY23 9M24 FY23 9M24 CET 1 3,267 3,516 3,021 3,247 Total Capital 3,696 3,960 3,601 3,834 Capital absorption from: 1,686 1,637 1,697 1,649 Credit and Counterparty 1,495 1,444 1,493 1,444 Market
Slide 20: Attachments
ATTACHMENTS 20
Slide 21: Assets & Liabilities
ASSETS & LIABILITIES Assets (€/mln) 34,674 35,178 1H24 9M24 • The securities portfolio decreased, due to some sales in 3Q24, also total Loans to customers decreased 9,701 9,186 6,700 6,372 5,237 • The reduction in Due from Banks was 5,265 4,971 3,833 driven by the similar dynamics, on liability side
Slide 22: Reclassified Consolidated Income Statement by Business Line
RECLASSIFIED CONSOLIDATED INCOME STATEMENT BY BUSINESS LINE Extended Banking Commercial Private Asset Wealth Consolidation 9M24 Banking Banking Services, Consumer BANKING Management Insurance Management adjustments Consolidated Credit & Technology Net Interest Income 656.2 71.4 98.3 825.9 12.7 6.2 1
Slide 23: Volumes Reclassified by Business Line
VOLUMES RECLASSIFIED BY BY BUSINESS LINE Extended Banking Commercial Private Asset Wealth Consolidation 9M24 Banking Banking Services, Consumer BANKING Management Insurance Management adjustments Consolidated Credit & Technology CUSTOMER LOANS 33,355.7 636.9 7,395.6 41,388.1 29.1 29.1 -6,742.8 34,67
Slide 24: Disclaimer and Contacts
DISCLAIMER AND CONTACTS The manager responsible for preparing the company’s financial reports Mr. Giuseppe Malato of Credito Emiliano S.p.A., declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corres
Credito Emiliano S.p.A. (Credem) — 9M24 Earnings Presentation on 6ix