Credito Emiliano S.p.a. · MIL:CE
Credito Emiliano — Credem — Italian Banks and Insurance CEO Conference, Kepler Equities, Milan 2004
23 slides from Credito Emiliano's conference presentation, Sep 28, 2004
Slide 1: First-Half '04
CREDEM CREDEM Group First-Half ’04 Adolfo Bizzocchi General Manager speaks at the Italian Banks and Insurances CEO Conference Kepler Equities Italia - Milan, 27-28 September 2004 Investor Relations - Italian Banks and Insurance CEO Conference - Kepler Equities Milan, 27-28 settembre 2004 1
Slide 2: Intro, Results, Attachments
CREDEM Intro Results Attachments Investor Relations - Italian Banks and Insurance CEO Conference - Kepler Equities Milan, 27-28 settembre 2004 2
Slide 3: The CREDEM Group today
CREDEM The CREDEM Group today Italy's 14th largest banking group with over 19 billion in assets Italy's 12th largest asset manager with 15.5 billion in customer funds under management Total Business with customers 700,000 customers and about 63 Loans billion in customer total business 19% AUC 36% 50
Slide 4: Flexible strategies in Guidelines 2004-2006 plan
Flexible strategies in CREDEM Guidelines 2004 - 2006 plan CENTRAL ROLE of the CORE BUSINESS Commercial Banking with strong Wealth Management Strategy Customers of medium-high standing in RETAIL with focus on Small Business and SMEs in the Corporate sector Goals •Excellence in VALUE CREATION •Extract
Slide 5: Main targets 2004-2006 Plan
CREDEM Main targets 2004 - 2006 Plan CAGR CAGR Total income ‘03-’06 ‘03-’06 Operating costs 1,005 7.1% 606 5.1% 522 819 1,000 600 7.4% 237 4.3% 633 208 511 400 mln € mln € 500 6.5% 5.6% 369 372 200 314 308 0 0 2003 2006E 2003 2006E Net interest income Non-interest income Payroll costs Admin. Expense
Slide 6: Main targets 2004-2006 Plan
CREDEM Main targets 2004 - 2006 Plan CAGR ‘03-’06 Distribution channels Deposits & collections 8.6% 68 +3 53 54 57 80.0 +5 5.8% 60.0 28.2 Mkt 38 43 23.8 14.4% 9.8% bn € +11 40.0 22.2 6.7% 462 473 14.8 4.5% 20.0 17.6 14.5 0.0 2003 2006E 2003 2006E Branches Corporate centres Points & shops Direct AUM
Slide 7: Intro, Results, Attachments
CREDEM Intro Results Attachments Investor Relations - Italian Banks and Insurance CEO Conference - Kepler Equities Milan, 27-28 settembre 2004 7
Slide 8: Key figures: Increasing revenues, decreasing cost to income
Increasing revenues CREDEM Key figures decreasing cost to income Total income Operating costs 418.9 +7.5% 264.2 274.5 +3.9% 389.8 500 300 400 +8.9% 250 108.5 112.2 +3.4% 239.7 261.0 200 300 150 +5.2% +4.2% 200 155.7 162.3 100 150.1 157.9 100 50 0 0 06/03 06/04 06/03 06/04 Net interest inc ome Non-in
Slide 9: Key figures: AUM on the rise
CREDEM Key figures AUM on the rise Customers' loans Customers' funds (non-institutional) + 1.9% +6.1% 11.8 50.9 47.9 11.6 +10.9% 15 +4.8% 0.6 0.6 60 +10.6% 20.5 22.7 10 +4.2% Mkt 40 +3.4% Mkt net of repos net of repos 10.9 11.2 +5.7% 14.0 +6.9% 15.4 5 20 13.5 12.7 0 0 06/03 06/04 06/03 06/04 Cash Gu
Slide 10: Key indicators
CREDEM Key indicators 2003 06/03 06/04 Mkt share funding 1.60% 1.53% 1.53% growth Mkt share loans 1.00% 0.99% 0.98% ROE 11.1% 7.8% 8.0% profitability Net interest income /Tot. income Non-interest income /Tot. income 38.9% 61.1% 38.5% 61.5% 37.7% 62.3% Operating costs/Total income 66.0% 67.8% 65.5% e
Slide 11: Revenues growing
Revenues growing CREDEM Total income Commissions and fees up sharply 12/03 & 6/03 pro-forma (€/mln) 2003 06/03 06/04 % yoy Net interest income 307.3 150.1 157.9 5.2% Spread 2.79% 2.92% 2.67% -25bp Net commissions 342.8 157.2 188.2 19.7% Total income +7.5%. . of which: mngt. & brokerage 233.5 105.4 1
Slide 12: From total income to net profit
CREDEM From total income to net profit Improving profitability 12/03 & 6/03 pro-forma (€/mln) 2003 06/03 06/04 % yoy Gross operating income +15.0% Total income 790.7 389.8 418.9 7.5% Payroll -313.5 -155.7 -162.3 4.2% Administrative expenses -208.2 -108.5 -112.2 3.4% Operating income +25.9% Operating
Slide 13: Profit generation: Focus on core business
CREDEM Profit generation Focus on Core business Breakdown of gross operating income contribution (€/mln) 06/03 06/04 % at 6/04 Total income 389.8 418.9 . Captive 339.2 371.7 88.7% . Non captive 50.6 47.2 11.3% Operating costs -264.2 -274.5 . Captive -226.2 -239.7 87.3% . Non captive -38.0 -34.8 12.7
Slide 14: Distribution and HR
CREDEM Distribution and HR no. of CREDEM Group branches and market share Distribution structure 2003 06/03 06/04 1 64 0.1 % Credembanca and others 440 433 438 1.1 % 25 12 0.7 % B.ca Euromobiliare 22 23 22 0.5% Branches 462 456 460 126 4 4.0 % 0.5 % Corporate centres 38 38 39 10 4 0.5% 3 0.3 % Points
Slide 15: Good performance in funding, all forms of AUM
Good performance in CREDEM Funding all forms of AUM (€/mln) Breakdown of customer funding 2003 06/03 06/04 % yoy Deposits 6,991 6,959 7,324 5.2% Bonds 4,601 4,177 4,196 0.5% Net inflows as of July ‘04 were over €865 million, Tot. Direct excl. Repos 11,592 11,136 11,520 3.4% mainly in managed and adm
Slide 16: Loans: Retail, Small Business, SME
CREDEM Loans RETAIL-SMALL BUSINESS-SME ....our key customer segments Cash loans by type (net of repos) 11.0 +4.2% Customer loans up by over 4% (about 9% at average principals). 10.6 •Far more impressive is the average principal comparison for the 12.0 +17.9% 0.9 types of customer representing our co
Slide 17: Excellent loan quality
Excellent loan CREDEM Loans quality Credembanca - Gross customer loans (€/mln) Breakdown by Business Unit 2003 06/03 06/04 % yoy short-term 3,678 3,779 3,050 -19.3% Growth still significant for CREDEM's long-term 435 393 442 12.5% non-performing 59 4 62 n.s. strategic customer groups: Retail, Small
Slide 18: Market risks under control
CREDEM Other risks Market risks under control Market risk (€/mln) 2002 2003 06/04 V.A.R. banking & trading book (99% . 10 days) Credembanca Market risk is primarily focused on . Average 1.2 2.8 2.0 Credembanca and Abaxbank. . Maximum 3.0 4.8 3.7 Abaxbank Overall risks are modest and fairly stable .
Slide 19: Intro, Results, Attachments
CREDEM Intro Results Attachments Investor Relations - Italian Banks and Insurance CEO Conference - Kepler Equities Milan, 27-28 settembre 2004 19
Slide 20: Attachments
CREDEM Attachments A closer look at the group: •Capital structure •Group structure •Business areas Investor Relations - Italian Banks and Insurance CEO Conference - Kepler Equities Milan, 27-28 settembre 2004 20
Slide 21: Capital structure
CREDEM Capital structure Pact among 226 More than 2,900 shareholders investors Main shareholders % held Maramotti family 35.5% Pictet Cie 4.9% Eredi Savioli 2.9% Fincorrad 2.1% Allianz Subalpina 1.7% 72.4% 27.6% CREDEMHOLDING 73.7% 26.3% CREDEM Investor Relations - Italian Banks and Insurance CEO Co
Slide 22: Group structure
CREDEM Group structure CREDEMHOLDING 73,7% CREDEM 100% Banca Euromobiliare 100% Credemleasing Euromobiliare 100% Credemtel 100% Fiduciaria 98,5% Euromobiliare A.M. 100% Credemfactor Banca del Garda 51,2% Credimmobili 100% S.G.R. 100% Euromobiliare 50% Azuritalia Ass.ni Credem International 100% Maga
Slide 23: Business areas
CREDEM Business areas Commercial Banking Wealth Management Investment Banking Other CREDEM Life insurance (*) FIDUCIARIA Spa Insurance (*) (*) CORPORATE FINANCE (*) (*) companies not included within the group Investor Relations - Italian Banks and Insurance CEO Conference - Kepler Equities Milan, 27
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