Banca Sistema S.p.A. · MIL:BST
Banca Sistema — Q1 2022 Earnings Presentation
18 slides from Banca Sistema's earnings presentation, May 11, 2022
Slide 1: 1Q 2022 Results
1Q 2022 RESULTS yf uo N J 11 May 2022
Slide 2: 1Q 2022 Results at a Glance
1Q 2022 Results at a Glance Factoring turnover +26% y/y equal to €983m Commercial CQ outstanding at €919m, stable y/y performance Pawn loans outstanding at €92m, +16% y/y SMEs State guaranteed loans outstanding equal to €179m, up y/y Net Interest Income equal to €20.7m, +6% y/y Lower fun
Slide 3: Factoring commercial performance
Factoring commercial performance Factoring outstanding Outstanding breakdown (31.03.2022) €m +12% By Type of Product By Obligor y/y PA accounts for 75% 1,932 Tax receivables Recourse 1,850 State Central 1,722 24% 24% [+8% y/y] Local Administration [+48% y/y] Entities 30% 27% Public Sector Local Heal
Slide 4: CQ and Pawn loans commercial performance
CQ and Pawn loans commercial performance CQ loans outstanding Pawn Loans outstanding €m €m +16% y/y 932 92 917 919 Private Pensioners 90 18% 46% 80 PA employees 36% 31.03.2021 31.12.2021 31.03.2022 31.03.2021 31.12.2021 31.03.2022 • €47m turnover in 1Q22 (€42m in 1Q21) • >55k contracts • ~90% direct
Slide 5: 1Q22 – Balance Sheet
Figures in millions of Euro 31.12.2021 31.03.2022 Change in % 31.03.2022 vs 1Q22 – Balance Sheet 31.12.2021 Govies’ portfolio (€765m) up q/q, with an average duration of 32.8 ASSETS months, it includes €581m ‘Held to Collect and Sell’, up q/q (€446m as Ca s h a nd ca s h equi va l ents 176 220 25%
Slide 6: Well diversified Interest income
Well diversified Interest income 1Q22 Interest Income lower y/y, with a 24.2 23.6 higher contribution from Pawn loans and 2.1 3.5 SMEs State guaranteed loans contribution 1.3 (+€0.7m y/y) 5.2 1.8 4.7 Factoring Factoring represents 58% of Total Interest Total Interest Income CQ Income (64% in 1Q2
Slide 7: Total Income up 4% y/y excluding Govies’ ptf trading revenues
Total Income up 4% y/y excluding Govies’ ptf trading revenues Total Income €m 26.1 24.7 -6% 2.7 0.3 y/y 4.0 3.7 1Q22 Total Income down 6% y/y, mainly due to the decrease of Other Income. Total Cost of funding, equal to 0.2% (0.5% in 1Q21), is lower in both component Retail Net interest Income and
Slide 8: Cost base consolidating
Cost base consolidating Total Operating Costs Personnel Expenses Administrative Expenses, Net €m +2% FTEs (#) 275 273 Provisions for risk, Other and y/y D&A 15.3 15.7 8.4 9.1 6.9 6.6 1Q21 1Q22 1Q21 1Q22 1Q21 1Q22 Servicing Costs 5% Other Costs 49% Personnel Personnel Expenses down y/y due to lower
Slide 9: Lower funding cost y/y
Lower funding cost y/y Total Funding breakdown • Cost of funding lower y/y and q/q 68% 68% 0.5% 0.4% 0.4% 63% 0.2% 60% • Wholesale component increase q/q is due to higher Repos related to Govies’ ptf growth. Higher Repos impacted positively overall 24% 18% 17% 16% funding cost 15% 10% 7% 6% 8% 6% 5%
Slide 10: Asset Quality driven by factoring business
Asset Quality driven by factoring business Gross Non Performing Exposures Net Non Performing Exposures €m 315.1 319.5 294.5 PA exposure 255.6 257.5 deriving from ordinary 237.2 business 169.1 169.1 168.3 121.5 120.1 121.8 Past-dues 37.4 48.8 26.0 36.4 34.3 Unlikely to Pay 23.9 108.6 101.6 Bad loans
Slide 11: Regulatory Capital well above minimum requirements
Regulatory Capital well above minimum requirements CET1 and Total Capital(1) RWA breakdown €m €m 14.6% 15.0% 2022 SREP 1,517.6 1,450.9 requirements: CET1 ratio 9.0% 11.6% 221.7 11.9% 218.3 TCR 12.5%2 176.1 172.6 1,334.2 1,267.5 CET1 Credit Risk TC Ratio Total Capital Operational Risk CET1 Ratio & Ma
Slide 12: Annexes
Annexes BANCA 12 SISTEMA
Slide 13: Factoring Turnover
Factoring Turnover Factoring Turnover €m +26% 983 783 +13% y/y ex. Tax Receivables 701 Turnover generated by agreements with Italian Retail banks: 22% in 1Q22 1Q20 1Q21 1Q22 1Q22 Factoring Turnover breakdown By Type By Year of Customer’s Acquisition Customer Concentration Spain Tax 1Q22 2% receivabl
Slide 14: Late Payment Interest
Late Payment Interest Due LPI Stock – Assets in legal action Total collected cashed-in LPI €m €m 65 70 76 60 6.0 5.9 €0.7m Sold LPI 3.2 3.4 €52.2m accrual recognised in P&L 2.5 101 101 99 98 30.06.2021 30.09.2021 31.12.2021 31.03.2022 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 LPI – non relevant for the accrual
Slide 15: 1Q 2022 – Income Statement
1Q 2022 – Income Statement Figures in millions of Euro 1Q 22 vs 1Q 21 1Q 2021 1Q 2022 change in % Interest income 24.2 23.6 -2% Interest expenses (4.8) (2.9) -39% Net interest income 19.4 20.7 7% Commission income 5.9 7.5 28% Commission expenses (1.9) (3.8) nm Net commission 4.0 3.7 -8% Net income f
Slide 16: Asset Quality
Asset Quality Gross Bad loans 6.9% 0.2% 6.8% 0.2% Conservatorships (factoring) Loans granted 16.5% Factoring before 2020 16.4% SME State Guarantee Loans 76.4% 76.6% Other 31.12.2021 31.03.2022 Gross Unlikely to Pay 6.7% 5.6% 10.0% 84.4% 93.3% 31.12.2021 31.03.2022 16
Slide 17: 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 18: Carlo Di Pierro, Head of Investor Relations
Carlo Di Pierro Head of Investor Relations [email protected] +39 02 80280358 +39 3355288794 18