Banca Sistema S.p.a. · MIL:BST
Banca Sistema — H1 2025 Earnings Presentation
20 slides from Banca Sistema's earnings presentation, Aug 1, 2025
Slide 1: 1H 2025 Results
1H 2025 RESULTS Aug. 1st, 2025
Slide 2: Executive Summary
EXECUTIVE SUMMARY Asset quality negatively impacted in 1Q25 (gross NPEs +75% q/q) by the new classification of past due STRONG loans in accordance with Bank of Italy compliance findings related to mitigant adopted by the Bank REDUCTION to reduce the effects of DoD IN NPEs Several managerial action
Slide 3: Factoring Commercial Performance
FACTORING COMMERCIAL PERFORMANCE Outstanding breakdown (30.06.2025)² €1,645m Factoring Loans Outstanding¹ By Type of Product By Obligor (%) % €m PA accounts for 51% Tax Receivables Public Sector 18% Corporate Organizations 49% 2% 1634 1569 Non Local Recourse Entities 1526 49% Local 17% Healthcare Or
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 +23% Private 761 19% 153 PA 144 employees 124 35% 701 652 Pensioners 46% 1H24 FY24 1H25 Private Pensioners PA employees 1H24 FY24 1H25 • €63m turnover in 1H25 (€109m in 1H24) ~79k contr
Slide 5: 1H25 – Balance Sheet
1H25 – BALANCE SHEET Figures in millions of Euro Change in % 31.12.2024 31.03.2025 30.06.2025 30.06.2025 vs Govies’ portfolio decreased ytd (nominal value €1057m vs 31.12.2024 €1178m as of YE24) with an average duration of 13 months (16 ASSETS months as at 31.12.2024), exclusively Italian Governme
Slide 6: Total Gross Income and Adjusted Income Margin Evolution
TOTAL GROSS INCOME AND ADJUSTED INCOME MARGIN EVOLUTION 1H25 Total gross income -7% y/y, due to lower contribution from factoring (€ 72.0m or -€10.1m y/y), Total Gross Income¹ SMEs State guaranteed loans (€7.4m or -€3.3m y/y), €m and CQ (€9.1m or -€0.9m y/y) partially offset by pawn loans (€19.3m
Slide 7: Total Income Breakdown
TOTAL INCOME BREAKDOWN 1H25 Total Income up 27% y/y, thanks to lower cost of funding and financial portfolio contribution which Total Income Breakdown¹ helped to offset lower volumes. €m Adj NII (NII + trading on Superbonus) increased by 43% 69.8 y/y despite lower interest income from 9.7 54.8 f
Slide 8: Cost Base Consolidating
COST BASE CONSOLIDATING Total Operating Costs Personnel Expenses Other Operating Costs, D&A and €m €m Risk Provisions €m 41.3 40.3 23.9 24.6 16.4 16.7 1H24 1H25 1H24 1H25 1H24 1H25 FTEs Evolution Total costs increased by +2% y/y due to higher personnel and administrative costs. (#) Figures include
Slide 9: Net Income Evolution by Business Unit
NET INCOME EVOLUTION BY BUSINESS UNIT Factoring: the division confirmed the 1H25 Net Income Breakdown by BU* excellent results registered in 2024 posting €m in 1H25 €17,3m net income (€13,3m as of 1H24) or +30% y/y thanks to trading Superbonus and lower cost of funding which together with the elim
Slide 10: Funding Cost Continues to Decline
FUNDING COST CONTINUES TO DECLINE Total Funding Breakdown Funding Cost (%) (%) 72% 75% 72% Retail Funding represents 72% of total 70% 3.50% 3.80% 3.55% 3.63% funding as of 1H25. 3.21% 2.90% 3.27% 3.60% Term deposits decreased by 11% y/y, 3.57% 3.07%Retail funding decreased by 9% y/y; 3.16% 2.71%
Slide 11: Asset Quality: Strong Past Dues Reduction in 2Q25
ASSET QUALITY: STRONG PAST DUEs REDUCTION IN 2Q25 Gross Non Performing Exposure Net Non Performing Exposure €m €m 581 520 519 463 150 188 188 159 333 275 39 60 67 42 180 142 333 331 52 264 33 262 101 100 FY24 1Q25 1H25 FY24 1Q25 1H25 Past Due Unlikely to Pay Bad Loans Past Due Unlikely to Pay Bad Lo
Slide 12: Regulatory Capital Above Minimum Requirements
REGULATORY CAPITAL ABOVE MINIMUM REQUIREMENTS Capital Ratios* €m/% RWA Breakdown €m 16.1% 14.9% 16.6% 1,826 1,632 207 1,637 13.3% 12.4% 13.8% 211 210 261 273 272 215 226 225 1,619 1,421 1,427 CET1 capital Total capital FY24 1Q25 1H25 FY24 1Q25 1H25 Credit Risk Operational Risk & Market Risk RWA – Cr
Slide 13: Annexes
ANNEXES ©2011-2025 BANCA SISTEMA - UNAUTHORIZED REPRODUCTION PROHIBITED 13
Slide 14: Factoring: Breakdown by Type and Customers
FACTORING: BREAKDOWN BY TYPE AND CUSTOMERS Factoring Turnover €m -18% y/y 2,793 due to lower receivables from 2,477 2,300 Superbonus and PA (mainly pharma) Turnover generated by agreements with Italian Retail banks: 11% in 1H25 1H23 1H24 1H25 1H25 Factoring Turnover breakdown By Geography (1H25) Cus
Slide 15: Late Payment Interest
LATE PAYMENT INTEREST Total Collected Cashed-in LPI Due LPI Stock - Assets in Legal Action €m €m 7.6 300 6.5 6.0 250 94 60 59 4.5 200 88 99 103 150 €86.1m accrual 3.3 2.9 2.8 booked through 100 189 2.1 156 161 145 149 177 P&L 50 0 1Q24 1H24 9M24 FY24 1Q25 1H25 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25
Slide 16: 1H25 – Income Statement
1H25 – INCOME STATEMENT Figures in millions of Euro 1H 2025 vs 1H 2024 1H 2024 1Q 2024 2Q 2024 1H 2025 1Q 2025 2Q 2025 change in % Interest income 95.8 48.2 47.6 91.2 57.5 33.7 -5% Interest expenses (74.8) (36.4) (38.4) (61.7) (33.0) (28.7) -18% Net interest income 21.0 11.8 9.2 29.5 24.5 5.0 40% Co
Slide 17: Asset Quality: Breakdown by Loans
ASSET QUALITY: BREAKDOWN BY LOANS Gross Bad loans 0.2% 1.7% 6.7% 2.6% 0.1% 12.7% 16.3% 14.1% 0.0% 79.1% 81.0% 85.7% 31.12.2023 31.12.2024 30.06.2025 Gross Unlikely to Pay 8.60% 15.70% 18.69% 51.80% 54.20% 16.72% 39.60% 30.10% 64.58% 31.12.2023 31.12.2024 30.06.2025 Conservatorships (factoring) Facto
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 ©2011-2025 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