Credito Emiliano S.p.A. · MIL:CE
Credito Emiliano — Q1 2015 Earnings Presentation
23 slides from Credito Emiliano's earnings presentation, Jul 1, 2015
Slide 1: Group’s Results – 1Q2015
Group’s Results – 1Q2015
Slide 2: 1Q15 Highlights
1Q15 Highlights The Group continued to develop its business with Total Customers’ Deposits (Direct Deposits, AUM, Insurance Reserves and AUC) growing by 2.5 billion (+5.0%) in the quarter only and by €6 billion (+11.8%) YoY. In particular AUM was up by 1.7 billion in the quarter (+8.5%) and by €3.5
Slide 3: Income Statement
Income Statement % vs. % vs. Operating Income (net of Trading Euro. million 1Q14 4Q14 1Q15 1Q14 4Q14 and Performance Fees) Operating Income 286.7 261.1 353.1 23.2 35.2 Euro, Million Operating Income 260 253 250 250 net of Trading 248 248 247.5 247.7 253.0 2.2 2.1 and Performance 244 Fees 250 Operati
Slide 4: Net Interest Income (1/3)
Net Interest Income (1/3) Net Interest Income Net Interest Income was down by 11% QoQ Euro, Million following the choice of disposing a significant 130 portion of the Italian BTPs portfolio. Such 120 125.6 decision was taken deeming unlikely a future 123.6 122.2 119.4 appreciation of government bond
Slide 5: Net Interest Income (2/3)
Net Interest Income (2/3) Variazione degli impieghi Securities’ Portfolioalla clientela Breakdown (Credem SpA management accounting) 100% The re-mix of the securities' portfolio is 13% quite evident by looking at the 90% comparison with FY2013 and FY2014 80% situations: the exposure to Italian govie
Slide 6: Net Interest Income (3/3)
Net Interest Income (3/3) Evolution of Average Loan Rate Evolution of Average Deposit Rate (Credem SpA management accounting) (Credem SpA management accounting) 4.50 % 2.50 % 3.96 3.79 3.79 2.09 4.00 3.52 3.65 3.60 1.96 3.33 3.18 2.00 0.80% 3.50 2.96 0.74% 1.68 2.92 1.53 3.00 -0.44% -0.62% -0.46% -0
Slide 7: Non Interest Income (1/2)
Non Interest Income (1/2) Non Interest Income: Quarterly Evolution 246.9 Performance Fees 250 3 Trading 200 97.1 € Million 163.1 Other 145.8 138.9 141.7 150 127.7 136.8 133.8 118.7 39.1 5 27.6 10.7 3.4 5.4 10 3.4 13.2 4.3 11.8 4.9 3.8 4 5 5.6 4.5 49.3 Banking Services Comm. 4.5 4.5 100 49.5 47.9 48.
Slide 8: Non Interest Income (2/2)
Non Interest Income (2/2) Evoluzione AUM and Insurance Reserves Mutual Funds & SICAVs Breakdown by Asset Class (Credem SpA management accounting) Euro, Million 100% 30,000 6.0% 6.9% 7.3% 26,866 80% 33.1% 35.2% 38.4% +28% 24,616 25,000 60% 20,923 40% 49.3% 49.2% 20,000 46.8% 20% 11.5% 8.7% 7.5% 15,00
Slide 9: Operating Costs
Operating Costs Operating Costs: Quarterly Evolution Distribution Networks Euro, Million Employees 200 175.5 166.7 164.2 167.1 6,200 5,993 156.8 6,000 5,740 5,763 5,792 150 5,800 54 52 45 55 5,544 5,519 5,604 5,609 48 5,600 5,400 100 5,200 2008 2009 2010 2011 2012 2013 2014 1Q15 50 113 113 109 122 1
Slide 10: Loans to Customers
Loans to Customers Loans to Customers (net of Repos with Institutional and Loans to Group’s SPVs) €, Mil. 19,721 19,949 19,938 21,508 20,834 21,000 18,770 19,548 17,536 3,339 3,278 18,000 3,324 3,370 3,056 3,061 2,577 3,323 15,000 6,235 6,242 6,282 6,241 6,127 6,091 12,000 5,534 5,845 2,100 2,098 9,
Slide 11: Residential Mortgages: Comparison with the Industry
Residential Mortgages: Comparison with the Industry Residential Mortgages Inflows In the first quarter 2015 new Residential (Credem SpA management accounting) Mortgages inflows increased by more than 50% YoY, also sustained by the reduction of cost of funding Residential Mortgage’s market share stoo
Slide 12: Deposits, Bonds and AUM
Deposits, Bonds and AUM Euro, Million 2011 2012 2013 2014 1Q15 Indirect Deposits growth is outstanding with Sight/ Saving an AUM increase by €1.7 billion (+8.5%) 12,005 13,066 13,625 15,335 15,433 Deposits and an Insurance Reserves increase by CD and Other €0.5 billion (+12.1%) in the quarter, while
Slide 13: Credit Quality
Credit Quality Gross Impaired Loans 900 807.8 837.9 774.2 800 1Q14 700 600 € Million 500 403.6 423.0 416.0 2014 400 300 1Q15 200 114.4 113.6 111.1 100 0 Gross NPLs Gross Unlikely to pay Gross Past Due % on Loans (Credem) 3.8 3.7 3.9 2.0 1.9 1.9 0.6 0.5 0.5 % on Loans (Industry) 8.3 9.2 9.8* Quarterl
Slide 14: Impaired Loans’ Coverage (1/2)
Impaired Loans’ Coverage (1/2) Net Impaired Loans Net Impaired Loans have been substantially stable over the last 5 Euro, Million 2013 1Q14 1H14 9M14 2014 1Q15 quarters, proving the high quality of the Net NPLs 318.9 327.1 337.4 334.4 341.7 porfolio as well as the prudent provisioning policy Unlikel
Slide 15: Impaired Loans’ Coverage (2/2)
Impaired Loans’ Coverage (2/2) Impaired loans coverage (comparison with main competitors*) 70% 61% 59% 59% 57% 60% 56% 56% 50% 48% 50% 43% 42% 43% 40% 41% 39% 39% 40% 37% 35% 34% 34% 30% 27% 29% 20% 25% 23% 20% 19% 20% 18% 18% 10% 16% 16% 0% Player 1 Credem Player 2 Player 3 Player 4 Player 5 Player
Slide 16: Cost of Risk
Cost of Risk Cost of Risk (bps) 70 70 59 52 55 60 50 37 39 40 47 45 30 41 39 20 27 31 10 - 2013 1Q14 1H14 9M14 2014 1Q15 Cost of risk Cost of risk (net of "non reccurrent" items) Cost of Risk: history (bps) The sharp increase of the cost of risk in the quarter was entirely due to the higher 80 Parma
Slide 17: Assets & Liabilities
Assets & Liabilities Assets (Euro, Million) Assets did not show major changes in the quarter, with 21,695 21,347 21,000 just an expected reduction in Loans, because of the 14,000 seasonality, and a securities’ 2014 portfolio substantially stable 6,022 5,952 in volumes, but deeply 4,494 4,696 1Q15 7,
Slide 18: Liquidity Ratios
Liquidity Ratios NSFR 130% 124% 122% Both ratios showed levels remarkably 120% 116% above future thresholds set by the 110% regulation, with a NSFR ratio increasing 100% significantly compared to FY14 90% ECB eligible securities at the end of 1Q15 80% were €4,2 billion (12% of Total Assets) 70% 60%
Slide 19: Consolidated capital ratios
Consolidated capital ratios Credemholding consolidated capital ratios 12.8% (13.1% 11.0% including Net (11.3% including profit for the 2,500 Capital ratios «fully 11.1% 11.8% Net profit for the Period) phased» as at 10.2% 2,000 Period) (CET1) and 12.3% 1,500 (Tier Total) not 2,134.6 1,969.1 1,860.8
Slide 20: Stable shareholders’ base
Stable shareholders’ base Shareholders’ Pact More than 3,000 other shareholders Cofimar S.r.l. 20.0% Max Mara Finance S.r.l. 8.3% Max Mara Fashion Group S.r.l. 8.1% Others 39.0% 75.4% 24.6% Credemholding Free Float 76.9% 23.1% • Credem is the largest privately- owned bank in Italy Source: Internal d
Slide 21: A business model based on Retail & Commercial Banking
A business model based on Retail & Commercial Banking Retail & Commercial Banking Wealth Management Other 100.0% 100% 100% 100% 100% 100% 100% 100% 100% 100% 50% 100% 21
Slide 22: A distribution network with a national footprint
A distribution network with a national footprint Gruppo CREDEM Number of branches per region 2011 2012 2013 2014 1Q15 n° filiali e quota di mercato sportelli Branches 560 557 544 542 543 4 Strong presence in 7 the Emilia-Romagna Corporate 72 region (where is 41 42 42 42 42 27 Centres 19 located Grou
Slide 23: Disclaimer and Contacts
Disclaimer and Contacts The manager responsible for preparing the company’s financial reports Mr. Paolo Tommasini 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