Banca Sistema S.p.a. · MIL:BST
Banca Sistema — H1 2022 Earnings Presentation
18 slides from Banca Sistema's earnings presentation, Jul 29, 2022
Slide 1: 1H 2022 Results
1H 2022 RESULTS 29 July 2022
Slide 2: 1H 2022 Results at a Glance
1H 2022 Results at a Glance Factoring turnover +27% y/y equal to €2,096m Commercial CQ outstanding at €966m, stable y/y performance Pawn loans outstanding at €98m, +18% y/y SMEs State guaranteed loans outstanding equal to €184m, up y/y Net Interest Income equal to €44.6m, +16% y/y Lower
Slide 3: Factoring commercial performance
Factoring commercial performance Factoring outstanding Outstanding breakdown (30.06.2022) €m +18% By Type of Product By Obligor y/y PA accounts for 79% 1,971 1,850 Tax receivables Recourse State Central 25% 23% 1,669 [+23% y/y] Local Administration [+56% y/y] Entities 32% 26% Public Sector Local Hea
Slide 4: CQ and Pawn loans commercial performance
CQ and Pawn loans commercial performance CQ loans outstanding Pawn Loans outstanding €m €m +18% y/y 966 98 959 932 Private Pensioners 18% 46% 90 83 PA employees 36% 30.06.2021 31.12.2021 30.06.2022 30.06.2021 31.12.2021 30.06.2022 • €215m turnover in 1H22 (€136m in 1H21) • ~60k contracts • €104m dir
Slide 5: 1H22 – Balance Sheet
Figures in millions of Euro Change in % 1H22 – Balance Sheet 31.12.2021 31.03.2022 30.06.2022 30.06.2022 vs 31.12.2021 Govies’ portfolio (€643m) down q/q, with an average ASSETS duration of 33.5 months, it includes €568m ‘Held to Collect Ca s h a nd ca s h equi va l ents 176 220 70 -60% and Sell’,
Slide 6: Well diversified Interest income
Well diversified Interest income 1H22 Interest Income up y/y, with a higher 50.6 47.7 contribution from Pawn loans and SMEs 4.9 9.2 State guaranteed loans (+€1.2m y/y) 2.7 3.6 10.7 Factoring Factoring represents 53% of Total Interest 11.1 Income (62% in 1H21) Total Interest Income CQ €m Lower
Slide 7: Total Income up 9% y/y
Total Income up 9% y/y Total Income €m 54.8 50.3 3.2 +9% 4.0 7.0 y/y 1H22 Total Income up 9% y/y, although the decrease of 7.8 Other Income and Net Commissions Net interest Income NII increase is mainly driven by the increase in Interest 44.6 38.5 Net Commissions Income (on the previous slide) a
Slide 8: Cost base consolidating
Cost base consolidating Total Operating Costs Personnel Expenses Administrative Expenses, Net €m +3% FTEs (#) 275 280 Provisions for risk, Other and y/y D&A 30.3 31.3 16 17 14.3 14.3 1H21 1H22 1H21 1H22 1H21 1H22 Servicing Costs 5% Other Costs 49% Personnel Personnel Expenses stable y/y due to hig
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% 66% 64% 0.5% 0.4% 63% 0.2% 0.1% • Wholesale component decrease q/q is due to lower Repos related to Govies’ ptf decrease, partially compensated by higher 24% 17% 16% collateralized funding (CQ ABS 15% 16% 8% 6% 6%
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 PA exposure 291.2 deriving from 255.6 257.5 ordinary 229.6 business 169.1 169.1 166.8 121.5 120.1 Past-dues 119.1 37.4 48.8 26.0 36.4 46.8 Unlikely to Pay 33.6 108.6 101.6 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 16.4% 15.0% 15.9% 2022 SREP requirements: 1,450.9 11.9% 12.5% CET1 ratio 9.0% 1,356.9 13.0% TCR 12.5%2 221.9 218.3 215.8 176.3 172.6 170.2 1,267.5 CET1 1,173.5 Credit Risk TC Ratio Total Capital Operatio
Slide 12: Annexes
Annexes BANCA 12 SISTEMA
Slide 13: Factoring Turnover
Factoring Turnover Factoring Turnover €m +27% 2,096 1,652 +6% y/y ex. Tax Receivables 1,439 Turnover generated by agreements with Italian Retail banks: 11% in 1H22 1H20 1H21 1H22 1H22 Factoring Turnover breakdown By Type By Year of Customer’s Acquisition Customer Concentration Spain Tax 1H22 4% rece
Slide 14: Late Payment Interest
Late Payment Interest Due LPI Stock – Assets in legal action Total collected cashed-in LPI €m €m 76 78 65 70 €0.7m 6.0 Sold LPI 5.9 3.2 3.4 €52.6m accrual recognised in P&L 2.5 2.3 101 99 101 98 30.09.2021 31.12.2021 31.03.2022 30.06.2022 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q22 LPI – non relevant for the
Slide 15: 1H 2022 – Income Statement
1H 2022 – Income Statement Figures in millions of Euro 1H 22 vs 1H 21 1H 2021 1Q 2021 2Q 2021 1H 2022 1Q 2022 2Q 2022 change in % Interest income 47.7 24.2 23.5 50.6 23.6 27.0 6% Interest expenses (9.2) (4.8) (4.4) (5.9) (2.9) (3.0) -36% Net interest income 38.5 19.4 19.1 44.6 20.7 24.0 16% Commissi
Slide 16: Asset Quality
Asset Quality Gross Bad loans 6.8% 0.2% 6.9% 0.2% Conservatorships (factoring) Loans granted 16.4% Factoring 15.4% before 2020 SME State Guarantee Loans 76.6% 77.5% Other 31.03.2022 30.06.2022 Gross Unlikely to Pay 5.6% 7.9% 10.0% 10.5% 84.4% 81.6% 31.03.2022 30.06.2022 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
Carlo Di Pierro Head of Investor Relations [email protected] +39 02 80280358 +39 3355288794 18