Banca Sistema S.p.a. · MIL:BST
Banca Sistema — 9M 2024 Earnings Presentation
20 slides from Banca Sistema's earnings presentation, Nov 8, 2024
Slide 1: 9M 2024 Results
9M 2024 RESULTS November 8th, 2024
Slide 2: 9M 2024 Results at a Glance
9M 2024 RESULTS AT A GLANCE Factoring turnover +12% y/y, equal to €4,000m Commercial CQ new volumes +16% y/y, outstanding -10% y/y, equal to €747m performance Pawn loans outstanding +9% y/y, equal to €128m SMEs State guaranteed loans outstanding -6% y/y, equal to €233m Adjusted Net Interes
Slide 3: Factoring Commercial Performance
FACTORING COMMERCIAL PERFORMANCE Outstanding breakdown (30.09.2024)² €1,777m Factoring Loans Outstanding¹ By Type of Product By Obligor (%) €m % PA accounts for 58% Tax Public Sector 2,117 Corporate Receivables Organizations 42% 16% 1% 1,729 1,606 Local Local Recourse Non Healthcare Entities 25% Rec
Slide 4: CQ and Pawn Loans Commercial Performance
CQ AND PAWN LOANS COMMERCIAL PERFORMANCE CQ Loans Outstanding CQ Loans by Obligor Pawn Loans Outstanding €m % €m Private 128 834 20% +9% PA employees 799 35% 121 117 747 Pensioners 45% 9M23 FY23 9M24 Private Pensioners PA employees 9M23 FY23 9M24 • €153m turnover in 9M24 (€132m in 9M23) ~76k contr
Slide 5: 9M24 – Balance Sheet
9M24 – BALANCE SHEET Figures in millions of Euro Change in % 31.12.2023 30.06.2024 30.09.2024 30.09.2024 vs Govies’ portfolio increased ytd and q/q (nominal value 31.12.2023 €1311m vs €647m as of YE23 and €1162m as of 1H24) with an ASSETS average duration of 5.6 months (15 months as at 31.12.2023)
Slide 6: Total Gross Income and Adjusted Income Margin Evolution
TOTAL GROSS INCOME AND ADJUSTED INCOME MARGIN EVOLUTION 9M24 Total gross income up +39% y/y, with a higher contribution from factoring (€ 124.2m or Total Gross Income¹ +€43.7m y/y), pawn loans (€20.6m or +4.6m y/y), €m SMEs State guaranteed loans (€15.4m or +4.7m 174.6 y/y) and decreasing trend in
Slide 7: Total Income Breakdown
TOTAL INCOME BREAKDOWN 9M24 Total Income up 19% y/y, thanks to positive contribution from factoring and pawn loans Total Income Breakdown despite higher cost of funding and lower €m contribution from CQ business Adj NII (NII + trading on Superbonus) increased by 85.0 71.3 8.2 11% y/y thanks to f
Slide 8: Cost Base Consolidating
COST BASE CONSOLIDATING Total Operating Costs Personnel Expenses Other Operating Costs, D&A and Risk €m €m Provisions €m 58.9 24.9 34.0 50.1 20.9 29.2 9M23 9M24 9M23 9M24 9M23 9M24 Total costs increased by +18% y/y due to higher personnel and administrative FTEs Evolution costs but also DGS provis
Slide 9: Net Income Evolution by Business Units
NET INCOME EVOLUTION BY BUSINESS UNITS Factoring: the division confirmed the excellent results registered in 2023 9M24 Net Income Breakdown by BU posting in 9M24 €23,2m net income €m (€17,7m in 9M23) or +31% y/y thanks to turnover growth and positive repricing. CQ: higher cost of funding negativ
Slide 10: Funding Cost Up Y/Y but Down Q/Q
FUNDING COST UP Y/Y BUT DOWN Q/Q Total Funding Breakdown Funding Cost (%) (%) Retail Funding represents 69% of total 78% 3.83% 3.66% funding as of 9M24 72% 69% 3.63% 66% 3.24% 3.11% 3.59% 2.84% Retail funding was slightly down q/q 2.69% 3.55% 3.57% while grew by +12% y/y thanks to 2.57% positive
Slide 11: Asset Quality: Bad Loans Flat, UTPs Down, Past Due Up
ASSET QUALITY: BAD LOANS FLAT, UTPs DOWN, PAST DUE UP Gross Non Performing Exposure Net Non Performing Exposure €m €m 297 306 317 232 245 256 177 178 135 174 134 125 49 49 33 32 59 44 64 80 90 78 89 63 FY23 1H24 9M24 FY23 1H24 9M24 Past Due Unlikely to Pay Bad Loans Past Due Unlikely to Pay Bad Loan
Slide 12: Regulatory Capital Well Above Minimum Requirements
REGULATORY CAPITAL WELL ABOVE MINIMUM REQUIREMENTS Capital Ratios RWA Breakdown €m/% €m 1,553 1,428 16.1% 15.5% 15.9%* 12.9% 12.4% 12.9%* 198 194 230 232 246 1,355 187 201 1,234 184 CET1 capital Total capital FY23 9M24 FY23 1H24 9M24 Credit Risk Operational Risk & Market Risk RWA – Credit Risk CET
Slide 13: Annexes
ANNEXES ©2011-2024 BANCA SISTEMA - UNAUTHORIZED REPRODUCTION PROHIBITED 13
Slide 14: Factoring: Breakdown by Type and Customers
FACTORING: BREAKDOWN BY TYPE AND CUSTOMERS Factoring Turnover €m +12% y/y or +2% ex. Trading 4,000 3,575 Ecobonus 3,152 Turnover generated by agreements with Italian Retail banks: 9% in 9M2024 9M22 9M23 9M24 9M24 Factoring Turnover breakdown By Type (9M24) Customer Concentration By Year of Customer'
Slide 15: Late Payment Interest
LATE PAYMENT INTEREST Due LPI Stock - Assets in Legal Action Total Collected Cashed-in LPI €m €m 300 6.9 250 6.0 200 88 94 99 €84.6m accrual 98 105 booked through 4.5 150 P&L 100 3.1 2.9 136 156 161 145 50 128 2.1 0 9M23 FY23 1Q24 1H24 9M24 LPI - relevant for the accrual LPI - non relevant for the a
Slide 16: 9M24 – Income Statement
9M24 – INCOME STATEMENT Figures in millions of Euro 9M 24 vs 9M 23 9M 2023 1Q 2023 2Q 2023 3Q 2023 9M 2024 1Q 2024 2Q 2024 3Q 2024 change in % Interest income 129.6 40.1 43.3 46.2 143.6 48.2 47.6 47.8 11% Interest expenses (79.4) (19.5) (28.0) (31.9) (110.9) (36.4) (38.4) (36.2) 40% Net interest inc
Slide 17: Asset Quality: Breakdown by Loans
ASSET QUALITY: BREAKDOWN BY LOANS Gross Bad loans 0.1% 6.8% 2.7% 6.7% 0.2% 14.3% 14.3% 14.1% 0.1% 78.8% 79.1% 82.9% 31.12.2022 31.12.2023 30.09.2024 Gross Unlikely to Pay 9.70% 10.90% 15.10% 0.50% 51.20% 30.30% 39.10% 58.80% 84.40% 31.12.2022 31.12.2023 30.09.2024 Conservatorships (factoring) Factor
Slide 18: Disclaimer
DISCLAIMER The distribution of this presentation in other jurisdictions may be restricted by law or regulation. Accordingly, persons who come into possession of this document should inform themselves of, and observe, these restrictions. To the fullest extent permitted by applicable law, the companie
Slide 19: Christian Carrese, Head of Investor Relations
Christian Carrese Head of Investor Relations [email protected] +39 02 80280403 ©2011-2024 BANCA SISTEMA - UNAUTHORIZED REPRODUCTION PROHIBITED 19
Slide 20: Palazzo Largo Augusto
PALAZZO LARGO AUGUSTO Largo Augusto 1/A, ang. via Verziere 13 20122 Milano Tel. +39 02 8028 0241 [email protected] bancasistema.it