Banca Sistema S.p.a. · MIL:BST
Banca Sistema — Q1 2023 Earnings Presentation
18 slides from Banca Sistema's earnings presentation, May 12, 2023
Slide 1: 1Q 2023 Results
1Q 2023 RESULTS 12 May 2023
Slide 2: 1Q 2023 Results at a Glance
1Q 2023 Results at a Glance Factoring turnover +9% y/y equal to €1,069m Commercial CQ outstanding at €903m, slightly lower y/y performance Pawn loans outstanding at €109m, +19% y/y SMEs State guaranteed loans outstanding equal to €189m, +6% y/y Net Interest Income equal to €20.6m, stable y
Slide 3: Factoring commercial performance
Factoring commercial performance Factoring - Customer loans Outstanding breakdown (31.03.2023) €m €1,651m By Type of Product By Obligor PA accounts for 81% Tax receivables Recourse State Central 1,632 13% 17% Administration 1,576 1,501 [-52% y/y] [-40% y/y] Local 19% Entities 30% Local Healthcare Or
Slide 4: CQ and Pawn loans commercial performance
CQ and Pawn loans commercial performance CQ loans outstanding Pawn Loans outstanding €m €m +19% y/y Private Pensioners 109 933 107 919 22% 43% 903 92 PA employees 35% 31.03.2022 31.12.2022 31.03.2023 31.03.2022 31.12.2022 31.03.2023 • €37m turnover in 1Q23 (€47m in 1Q23) • ~64k contracts • Total tur
Slide 5: 1Q23 – Balance Sheet
Figures in millions of Euro 31.12.2022 31.03.2023 Change in % 31.03.2023 vs 1Q23 – Balance Sheet 31.12.2022 Govies’ portfolio (€1,243m) slightly q/q, with an average duration of 15.3 ASSETS Ca s h a nd ca s h equi va l ents 127 53 -58% months (18.4 months as at 31.12.2022), exclusively Italian Gove
Slide 6: Well diversified Interest income
1Q23 Interest Income up 70% y/y (up q/q), Well diversified Interest income with a higher contribution from factoring (+€8.7m y/y) +70% 40.1 y/y Factoring represents 56% of Total Interest Income 10.1 Factoring Higher contribution y/y by factoring, mainly 23.6 2.4 due to higher factoring LPIs fr
Slide 7: Total Income slightly lower y/y
Total Income slightly lower y/y Total Income €m +3% y/y 1Q23 Total Income up 3% y/y, due to highet Net 24.7 25.3 0.3 0.1 commissions 3.7 4.6 Net interest Income NII stable y/y is driven by the increase in Interest Income, but also Interest Expenses. Total Cost of funding equal to 2% 20.7 20.6 Ne
Slide 8: Cost base consolidating
Cost base consolidating Total Operating Costs Personnel Expenses Administrative Expenses, Net €m FTEs (#) 275 291 Provisions for risk, Other and +17% y/y D&A 18.4 15.7 10.9 6.6 7.5 9.1 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 Other Costs 59% Personnel Personnel Expenses up y/y (in 1Q22, €0.7m higher-than-exp
Slide 9: Higher funding cost y/y
Higher funding cost y/y Total Funding breakdown • Cost of funding up y/y and q/q 0.2% 0.2% 0.4% 2.0% Total Funding • Wholesale component q/q change is Cost due mainly to higher Interbanking and Repos related to Govies’ ptf slight 63% 55% 55% increase, more than compensated a 50% decrease of the coll
Slide 10: Asset Quality driven by factoring business
Asset Quality driven by factoring business Gross €m Non Performing Exposures Net Non Performing Exposures 291.7 284.8 275.9 PA exposure deriving from ordinary 231.3 223.1 business 213.6 167.0 170.4 173.9 Past-dues 120.8 123.3 126.6 33.7 33.0 Unlikely to Pay 20.4 19.2 34.5 20.7 90.9 81.4 Bad loans 90
Slide 11: Regulatory Capital above minimum requirements
Regulatory Capital above minimum requirements CET1 and Total Capital(1) €m TC Ratio 15.9% 15.2% 15.3% RWA breakdown 12.6% 11.9% 12.0% €m CET1 Ratio 220.6 215.5 209.9 1,385.2 1,412.5 174.9 169.8 CET1 164.2 Credit Risk Total Capital 1,196.4 1,223.7 Operational Risk & Market Risk 188.8 188.8 31.12.2022
Slide 12: Annexes
Annexes BANCA 12 SISTEMA
Slide 13: Factoring Turnover
Factoring Turnover Factoring Turnover €m +9% +32% y/y ex. Tax Receivables 983 1,069 783 Turnover generated by agreements with Italian Retail banks: 11% in 1Q2023 1Q21 1Q22 1Q23 1Q23 Factoring Turnover breakdown By Type By Year of Customer’s Acquisition Customer Concentration Spain Tax 1Q23 3% receiv
Slide 14: Late Payment Interest
Late Payment Interest Due LPI Stock – Assets in legal action Total collected cashed-in LPI(1) €m €m 90 81 84 78 €1.1m 5.9 Sold LPI 3.9 €64.7m accrual 3.1 2.7 101 105 104 112 recognised in P&L 1.6 1.8 30.06.2022 30.09.2022 31.12.2022 31.03.2023 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 LPI - non relevant f
Slide 15: 1Q23 – Income Statement
1Q23 – Income Statement Figures in millions of Euro 1Q 23 vs 1Q 22 1Q 2022 4Q 2022 1Q 2023 change in % Interest income 23.6 27.1 40.1 70% Interest expenses (2.9) (7.1) (19.5) nm Net interest income 20.7 20.0 20.6 0% Commission income 7.5 7.7 7.7 2% Commission expenses (3.8) (3.3) (3.1) -19% Net comm
Slide 16: Asset Quality
Asset Quality Gross Bad loans 6.8% 0.2% 6.6% 0.1% Conservatorships (factoring) 14.3% 14.1% Factoring SME State Guarantee Loans 78.8% 79.1% Other 31.12.2022 31.03.2023 Gross Unlikely to Pay 13.3% 12.7% 0.5% 5.0% 86.2% 82.3% 31.12.2022 31.03.2023 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