Banca Sistema S.p.A. · MIL:BST

Banca Sistema — FY2020 Earnings Presentation

15 slides from Banca Sistema's earnings presentation, Feb 10, 2021

  1. Slide 1: FY2020 Results

    FY2020 RESULTS 10 February 2021

  2. Slide 2: FY 2020 Results at a Glance

    FY 2020 Results at a Glance  Factoring Turnover +2% y/y equal to €3,101m, +10% excluding Tax receivables  Joint Venture with EBN Banco for factoring in Spain Commercial performance  CQS/CQP outstanding reached €934m, +14% y/y  Gold/Jewelry backed loans (“Gold/Jewelry”) outstanding reached €78m,

  3. Slide 3: Commercial performance

    Commercial performance Factoring outstanding CQ loans outstanding €m €m +14% -7% y/y -2% q/q y/y Private 934 18% 817 1,839 1,749 Pensioners 1,717 48% Of which 25% under PA employees Legal action 34% 31.12.2019 31.12.2020 • €308m turnover in 2020 (€266m in 2019) 31.12.2019 30.09.2020 31.12.2020 • €23

  4. Slide 4: FY 2020 – Balance Sheet

    FY 2020 – Balance Sheet Figures in millions of Euro  Govies’ portfolio (€873m) down q/q, Change in % with an average duration of 13.0 31.12.2019 30.09.2020 31.12.2020 31.12.2020 vs months, it includes €425m ‘Held to 31.12.2019 Collect and Sell’, with an average ASSETS duration of 14.8 months Fi na

  5. Slide 5: Interest income mainly driven by factoring revenues

    Interest income mainly driven by factoring revenues Total Interest Income Adjusted Income margin1  FY 2020 Interest Income is down 11% y/y, €m drop is driven mainly by lower -11% FY19 FY20 contribution of Factoring in the last 3 110.3 y/y quarters of the year  Factoring represents 66% of Total Int

  6. Slide 6: Total Income roughly stable y/y

    Total Income roughly stable y/y Total Income  FY 2020 Total Income roughly stable with €m +1% y/y, thanks to the contribution of Other +1% Income (Treasury activity and Sale of 100.9 y/y 101.5 factoring/CQ ptf) and Net Commissions 4.1 9.8 16.1  NII 8% y/y decrease is driven by Interest 17.4 Income

  7. Slide 7: Costs up due to higher SRF and non-recurring items

    Costs up due to higher SRF and non-recurring items Administrative Expenses, Net Provisions for Total Operating Costs Personnel Expenses risk, Servicing Costs, Other and D&A €m FTEs (#) 215 269 +9% y/y €0.4m Non- 55.3 recurring item 50.5 2.1 0.6 2.0 1.1 25.5 29.8 23.2 27.3 0.6 1.7 1.1 2.0 48.8 +5% 51

  8. Slide 8: Lower funding cost y/y

    Lower funding cost y/y Total Funding breakdown Total Funding breakdown Funding Cost • Cost of funding lower y/y 0.8% 0.6% 0.6% and stable q/q 0.6% 61% 59% • Wholesale component 54% decrease q/q lower is 50% Wholesale due to the reduction of Funding Retail the Govie’s ptf and the 41% Funding 19% 20%

  9. Slide 9: Asset Quality driven by factoring business

    Asset Quality driven by factoring business Gross Non Performing Exposures Net Non Performing Exposures €m 255.6 215.6 245.6 251.2 208.4 205.1 49.8 30.5 28.6 50.6 52.3 27.1 126.6 144.8 148.4 123.3 128.1 139.3 54.6 60.4 50.0 55.6 61.0 50.4 31.12.2019 30.09.2020 31.12.2020 31.12.2019 30.09.2020 31.12.2

  10. Slide 10: Regulatory Capital well above minimum requirements

    Regulatory Capital well above minimum requirements CET1 and Total Capital(1) RWA breakdown €m CET1 Total Capital €m Operational Risk & Market Risk (2) Credit Risk TC Ratio 15.4% 16.1% 2020 SREP requirements: CET1 ratio 7.75% CET1 Ratio 12.0% 12.6% 1,326.1 TCR 11.90% 1,297.3 209.5 204.3 163.8 1,156.9

  11. Slide 11: Annexes

    Annexes

  12. Slide 12: Factoring Turnover

    Factoring Turnover Factoring Turnover €m +2% +10% y/y ex. Tax Receivables 3,055 3,101 2,406 Turnover generated by agreements with Italian Retail banks: 26% in 2020 FY 2018 FY 2019 FY 2020 FY 2020 Factoring Turnover breakdown By Type By Year of Customer’s Customer Concentration Acquisition Tax FY 202

  13. Slide 13: FY 2020 – Income Statement

    FY 2020 – Income Statement Figures in millions of Euro FY 20 vs FY 19 FY 2019 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2020 1Q 2020 2Q 2020 3Q 2020 4Q 2020 change in % Interest income 110.3 21.6 27.0 31.7 30.0 98.1 22.4 23.5 25.7 26.5 -11% Interest expenses (29.6) (7.0) (7.1) (7.8) (7.7) (23.8) (6.4) (6.1

  14. 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

  15. Slide 15: Carlo Di Pierro, Head of Investor Relations

    Carlo Di Pierro Head of Investor Relations [email protected] +39 02 80280358 +39 3355288794

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