Bper Banca S.p.a. · MIL:BPE
Bper Banca — Q3 2020 Earnings Presentation
32 slides from Bper Banca's earnings presentation, Nov 4, 2020
Slide 1: 9M20 consolidated results
9M20 consolidated results Alessandro Vandelli, CEO 4 November 2020 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by “BPER Banca” solely for No part of the information contained herein may for any purpose information purposes, and only in order to present its strategies be reproduced or published as a whole or in part, nor may such and main financial figures. informati
Slide 3: Important methodological note
Important methodological note July 2019 saw completion of the acquisition of an additional 3Q19, 4Q19, 1Q20, 2Q20 and 3Q20 are comparable on a like- shareholding in Arca Holding, the acquisition of the minority for-like basis. interests in Banco di Sardegna and the acquisition of 100% of Unipol Banc
Slide 4: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 4
Slide 5: Executive summary (1/3)
Executive summary (1/3) • 9M20 net profit of 200.6 €/mn supported by ability to generate revenues and tight cost control Resilient despite a context characterized by the economic slowdown as a consequence of the health emergency profitability − 9M20 result impacted by some non-recurring items, alrea
Slide 6: Executive summary (2/3)
Executive summary (2/3) • Strong focus on asset quality allowed to reach the lowest NPE ratios and stocks since 2009 • Gross and net NPE ratios respectively at 8.8% and 4.7% significantly down vs 9.1% and 5.0% in Jun.’20 and 11.1% and 5.8% in Dec.’19 Asset quality • Gross and net NPE stocks decrease
Slide 7: Executive summary (3/3)
Executive summary (3/3) • Business continuity: − All ATMs are accessible − c. 50% of employees have been enabled for smart-working Health − Increasing number of daily access to online channels and incoming calls to the Contact Center emerghency measures • Customers support: update − Moratorium on lo
Slide 8: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 8
Slide 9: Direct and Indirect funding
Direct and Indirect funding Total Funding (€/mn; %) Total Funding significant increase in Sept.’20 to € 177.3 €/bn (+1.0% vs Dec.’19 and +2.2% vs Jun.’20). AuM further increase in 3Q20 almost back in line with pre-crisis levels and Bancassurance1 continues to show positive performances Total Funding
Slide 10: Customer loans
Customer loans Customer loans breakdown Net customer loans up by 0.6% since Jun.’20 and by 1.7% since Dec.’19 also supported by measures approved by the Government to support economy during the pandemic crisis. High quality of performing loans confirmed Customer loans breakdown (€/mn; %) Performing
Slide 11: Non Performing Exposures (1/2)
Non Performing Exposures (1/2) Balance sheet structure Asset quality strong improvement. Gross NPE stock down by 20.0% since Dec.’19. Gross and net NPE ratios declined respectively to 8.8% and 4.7%. NPE Cash coverages up in Sept.’20 vs Jun.’20 Gross NPE (€/mn; %) Chg YTD Chg vs. Gross NPE Stock and
Slide 12: Non Performing Exposures (2/2)
Non Performing Exposures (2/2) Balance sheet structure Default rate strong improvement by 40 bps at 1.3% from 1.7% in Jun.’20. Recovery rate continues to show positive trend (6.4% annualized despite of the strong decrease of bad loans stock) Default rate (%) Bad loans average recovery rate1 (%) (Bpe
Slide 13: Financial assets portfolio
Financial assets portfolio Balance sheet structure Financial assets portfolio at 23.2 €/bn up by 1 €/bn since Jun.’20 Financial Assets breakdown (€/mn; %) Italian Government bonds1 (€/mn) €/mn FVTPL FVOCI AC Total % on total 7,540 7,531 Bonds 351 6,123 15,803 22,277 96.0% 6,355 o.w. Italian gov 1 17
Slide 14: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 14
Slide 15: 9M20 reclassified Profit & Loss
9M20 reclassified Profit & Loss Profit and loss 9M20 net profit of 200.6 €/mn supported by ability to generate revenues and tight cost control despite a context characterized by the economic slowdown as a consequence of the health emergency. Contributions to systemic funds for 64.7 €/mn in 9M20 Recl
Slide 16: 3Q20 reclassified Profit & Loss
3Q20 reclassified Profit & Loss Profit and loss 3Q20 Net profit of 95.9 €/mn, thanks to growth in core income (587.6 €/mn) by 5.8% q/q and reduction of operating costs (€ 379.8 €/mn) by 7.4% q/q, in the presence of a reduction of provisions by 32.3% q/q mainly related to credit (cost of credit decli
Slide 17: Net Interest Income
Net Interest Income Profit and loss NII improvement in 3Q20 up by 4.9% q/q and by 5.9% q/q on ordinary basis mainly thanks to decrease of cost of funding driven by TLTRO3 take-up (14.0 €/bn on June 24th and 2.7 €/bn on September 30th) Net Interest Income evolution (€/mn) Spread contribution (%) 1.89
Slide 18: Net Commissions
Net Commissions Profit and loss Net commissions strong recovery up by 6.9% q/q after the decrease in 2Q20 impacted by the lock- down related to the health emergency Net Commissions evolution (€/mn) Chg q/q % • Positive performance of AuM up by 11.5% 275.9 q/q (+9.2 €/mn), credit cards, collections 2
Slide 19: Trading income and Dividends
Trading income and Dividends Profit and loss 3Q20 trading income positive performance of 43.1 €/mn mainly supported by fixed-income bond trading and favorable equity market performance in the quarter Trading income evolution (€/mn) -13.3% -7.9% 49.7 46.8 43.1 36.8 5.6 3Q19 4Q19 1Q20 2Q20 3Q20 Divide
Slide 20: Operating costs
Operating costs Profit and loss 3Q20 operating costs amount to 379.8 €/mn down respectively by 7.4% q/q and 2.5% vs. 3Q19 Operating costs evolution (€/mn) -2.5% -7.4% • Staff costs (-13.0% q/q) positively impacted by the effects of the 389.3 429.8 411.1 410.1 379.8 redundancy plan included in the Bu
Slide 21: Provisions and other items
Provisions and other items Profit and loss Loan loss provisions significant decline by 30.8% q/q at 106.5 €/mn vs 153.8 €/mn in 2Q20. 3Q20 cost of credit of 20 bps (29 bps in 2Q20) Provisions and other items evolution (€/mn) Chg vs Chg vs 3Q19 4Q19 1Q20 2Q20 3Q20 2Q20 3Q19 Total Provisions 161.1 140
Slide 22: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 22
Slide 23: Liquidity
Liquidity Liquidity and Capital adequacy High level of liquidity with an LCR index of 175.8% and a liquidity buffer for over 15.5€/bn Total eligible Assets evolution* (€/mn) Eligible Assets Pool Composition (%) +31.3% ABS, Estense Covered Bond, Government 27,101 27,452 ABACO bonds 20.1% 34.7% 20,911
Slide 24: Capital
Capital Liquidity and Capital adequacy Capital position significant improvement with a CET1 Fully Loaded pro-forma1 at 13.03% up by 46 bps vs. 12.57% in Jun.’20 and up by 102 bps vs. 12.01% in Dec.’19 Common Equity Tier 1 Ratios (%) Fully Loaded Phased In pro-forma2 +46 bps +648 bps 2 14.61% 1 12.57
Slide 25: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 25
Slide 26: Final remarks: Sound starting point for future growth
Final remarks Sound starting point for future growth 9M20 net profit of 200.6 €/mn supported by good ability to generate revenues and tight 1 RESILIENT • cost control. Positive trends also confirmed by 3Q20 results PROFITABILITY • Annualized cost of risk at 101 bps including non-recurring items 2 SO
Slide 27: Agenda
Agenda BPER GROUP CONSOLIDATED RESULTS Executive summary Balance sheet structure Profit and loss Liquidity and Capital adequacy Final remarks ANNEXES 27
Slide 28: Customer loans
Customer loans Annexes Portfolio composition Net customer loans breakdown by sector Customer loans breakdown by geographical (€/mn; %) distribution1(%) % on Total Δ% Business sector Sept 20 Customer vs Dec 19 Loans North Centre Manufacturing Wholesale and retail services, 7,501 14.2% +1.2% 52.3% 17.
Slide 29: Asset quality
Asset quality Annexes Asset quality breakdown (excl. customer debt securities) Gross exposures (€/mn) Sep 19 Dec 19 Mar 20 Jun 20 Sep 20 Chg YTD Chg Y/Y % % % % % Abs. Chg (% ) Abs. Chg (% ) Non Performing Exposures (NPEs) 6,515 11.6% 6,123 11.1% 6,056 11.1% 5,008 9.1% 4,896 8.8% -1,227 -20.0% -1,61
Slide 30: Financial Assets details
Financial Assets details Annexes Bond PTF by Geographical breakdown (%) Govies PTF Geographical breakdown (%) France Other 1.8% 4.8% Other Germany 22.4% 5.2% Spain 14.5% Netherlands 4.0% Italy 43.8% Germany 7.8% Italy 73.7% Spain 8.4% France 13.6% 4.6 Bonds PTF Maturities1 (€/bn) 16.6 Italian Govies
Slide 31: Bonds maturities and issues details
Bonds maturities and issues details Annexes Outstanding bonds (€/bn) Bonds issued (€/bn) Dec 18 Dec 19* Sept 20* 0.8 0.7 Wholesale bonds 2.5 3.2 3.1 0.5 0.5 0.1 0.3 o/w covered bonds 2.0 2.6 2.6 o/w subordinated bonds 0.5 0.5 0.5 Retail bonds 1.5 2.0 1.3 0.6 0.5 0.5 0.5 o/w subordinated bonds 0.3 0.
Slide 32: Contacts for Investors and Financial Analysts
Contacts for Investors and Financial Analysts Gilberto Borghi Via San Carlo, 8/20 - 41121 Modena - Italy Head of Investor Relations +39 059 2022194 gilberto.borghi@bper.it Giulia Bruni Via San Carlo, 8/20 - 41121 Modena - Italy Investor Relations +39 059 2022528 giulia.bruni@bper.it Nicola Sponghi V