Banca Sistema S.p.A. · MIL:BST
Banca Sistema — 9M 2019 Earnings Presentation
15 slides from Banca Sistema's earnings presentation, Oct 30, 2019
Slide 1: 9M 2019 Results
9M 2019 RESULTS 30 October 2019
Slide 2: 9M 2019 Results at a Glance
9M 2019 Results at a Glance Factoring Turnover +22% y/y equal to €2.1bn Commercial CQS/CQP outstanding reached €767m, +26% y/y performance Gold/ jewellery backed loans outstanding at ~€10m, with >8k underlying contracts Interest Income equal to €58.4m, +10% y/y Stable Cost of funding y/y a
Slide 3: Core business assets outstanding is growing
Core business assets outstanding is growing Factoring outstanding CQ Loans outstanding €m €m +6% y/y +26% y/y -5% q/q +2% q/q 1,914 1,822 751 767 1,711 turnover 609 €675m in Q3 Of which 24% under Legal action 30.09.2018 30.06.2019 30.09.2019 30.09.2018 30.06.2019 30.09.2019 Outstanding breakdown (30
Slide 4: 9M 2019 – Balance Sheet
9M 2019 – Balance Sheet Figures in millions of Euro Govies’ portfolio (€803m) almost Change in % 31.12.2018 30.06.2019 30.09.2019 31.12.2018 vs stable q/q, with an average 30.09.2019 residual duration of 16.6 months ASSETS (18 months as at 30.06.2019), it Fina ncia l as s ets a t fa ir va l ue thr
Slide 5: Interest Income growth driven by higher assets
Interest Income growth driven by higher assets 9M 2019 Interest Income is up 12% y/y, Total Interest Income Adjusted Income margin1 growth is driven by higher assets, €m Factoring, CQ and Govies’ ptf. Q/q higher 4.4% 1Q 2019 contribution is driven by factoring +12% 4.7% 1H 2019 80.3 y/y 71.6 5.3%
Slide 6: Total Income supported by business growth
Total Income supported by business growth Total Income 9M 2019 Total Income is up 13% y/y, €m growth is mainly driven by higher Net 73.1 +13% 2.2 Interest Income (NII) and higher Net 64.5 y/y 0.9 12.5 Commissions 10.6 NII y/y increase is driven by Interest Income increase that has more than comp
Slide 7: Operating costs up y/y for business growth and Atlantide
Operating costs up y/y for business growth and Atlantide Administrative Expenses, Net Provisions for Operating Costs Personnel Expenses risk, Servicing Costs, Other and D&A €m FTEs (#) 179 210 +14% of which today #21 y/y 35.2 coming from the 30.8 merger with Atlantide 19.5 16.4 €0.6m Atlantide 14.4
Slide 8: Lower funding cost y/y
Lower funding cost y/y Total Funding breakdown Total Funding breakdown • Cost of funding slightly lower y/y and stable q/q Funding Cost1 • Wholesale component 0.9% 0.9% 0.8% 0.8% q/q and y/y decrease is 65% due mainly to lower ECB 59% 59% Wholesale 52% funding equal to €143m Funding (€418m as at 35%
Slide 9: Asset Quality driven by factoring business
Asset Quality driven by factoring business Gross Non Performing Exposures Net Non Performing Exposures €m 225.2 236.3 239.7 202.7 205.0 196.0 54.1 57.3 34.5 36.9 57.5 39.0 113.5 122.7 77.9 100.8 87.2 109.1 80.5 79.1 67.4 68.7 59.7 58.9 31.12.2018 30.06.2019 30.09.2019 31.12.2018 30.06.2019 30.09.201
Slide 10: Regulatory Capital well above minimum requirements
Regulatory Capital well above minimun requirements CET1 and Total Capital(1) RWA breakdown €m CET1 Total Capital €m Operational Risk & Market Risk (2) Credit Risk TC Ratio 13.7% 14.6% 17.2% Lower CQ CET1 Ratio 10.8% 11.4% RWA 13.4% 205.5 1,410.3 1,406.1 193.3 160.0 2019 SREP requirements: 1,253.8 1,
Slide 11: Annexes
Annexes
Slide 12: Factoring Turnover
Factoring Turnover Factoring Turnover €m 2,091 +22% Turnover generated by agreements 1,710 with Italian Retail banks: 27% in 9M 2019 1328 9M 2017 9M 2018 9M 2019 9M 2019 Factoring Turnover breakdown By Type By Year of Customer’s Customer Concentration Acquisition Tax receivables TOP 10 Before 2016 1
Slide 13: 9M 2019 – Income Statement
9M 2019 – Income Statement Figures in millions of Euro 9M 19 vs 9M 18 9M 2018 1Q 2018 2Q 2018 3Q 2018 9M 2019 1Q 2019 2Q 2019 3Q 2019 change in % Interest income 71.6 20.0 24.7 26.9 80.3 21.6 26.9 31.7 12% Interest expenses (18.5) (6.4) (5.8) (6.4) (21.9) (7.0) (7.1) (7.8) 18% Net interest income 53
Slide 14: 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 15: Head of Investor Relations
Carlo Di Pierro Head of Investor Relations [email protected] +39 02 80280358 +39 3355288794