Banca Sistema S.p.a. · MIL:BST
Banca Sistema — H1 2023 Earnings Presentation
18 slides from Banca Sistema's earnings presentation, Jul 28, 2023
Slide 1: 1H 2023 Results
1H 2023 RESULTS 28 July 2023
Slide 2: 1H 2023 Results at a Glance
1H 2023 Results at a Glance Factoring turnover +18% y/y equal to €2,477m Commercial CQ outstanding at €856m, slightly lower y/y performance Pawn loans outstanding at €113m, +15% y/y SMEs State guaranteed loans outstanding equal to €249m Net Interest Income equal to €35.8m, down y/y Highe
Slide 3: Factoring commercial performance
Factoring commercial performance Factoring - Customer loans Outstanding breakdown (30.06.2023) €m €1,937m By Type of Product By Obligor PA accounts for 77% 1,800 Tax Recourse Local Healthcare Local Entities Receivables 19% Organizations (ATS) 26% 1,679 18% [-20% y/y] 16% [-29% y/y] 1,501 State-owned
Slide 4: CQ and Pawn loans commercial performance
CQ and Pawn loans commercial performance CQ loans outstanding Pawn Loans outstanding €m €m +15% y/y 113 966 933 Private Pensioners 22% 44% 107 856 98 PA employees 34% 30.06.2022 31.12.2022 30.06.2023 30.06.2022 31.12.2022 30.06.2023 • €77m turnover in 1H23 (€215m in 1H22) • ~66k contracts • Total tu
Slide 5: 1H23 – Balance Sheet
Figures in millions of Euro Change in % 1H23 – Balance Sheet 31.12.2022 31.03.2023 30.06.2023 30.06.2023 vs 31.12.2022 Govies’ portfolio (€1,208.6m) slightly down q/q, with an ASSETS average duration of 15.3 months (18.4 months as at Ca s h a nd ca s h equi va l ents 127 53 171 35% Fi na nci a l a
Slide 6: Well diversified Interest income
1H23 Interest Income up 65% y/y (up q/q), Well diversified Interest income with a higher contribution from factoring (+€18.2m y/y) +65% y/y Factoring represents 54% of Total Interest 83.4 Income 23 Factoring Higher contribution y/y by factoring, mainly 50.6 due to higher factoring LPIs from le
Slide 7: Total Income lower y/y
Total Income lower y/y Total Income €m -10% y/y 1H23 Total Income down 10% y/y, due to lower Net Interest 54.8 Margin 3.2 49.4 7.0 3.5 Net interest Income 10.1 NII decrease y/y is driven by higher Interest Expenses (+€41.6m y/y), following an increase of the funding cost Net Commissions 44.6 35.
Slide 8: Cost base consolidating
Cost base consolidating Total Operating Costs Personnel Expenses Administrative Expenses, Net €m FTEs (#) 280 297 Provisions for risk, Other and +12% y/y D&A 35.0 14.3 14.7 20.3 31.3 17.0 1H22 1H23 1H22 1H23 1H22 1H23 Other Costs 58% Personnel Personnel Expenses up y/y (in 1H22, €1.0m higher-than-
Slide 9: Higher funding cost y/y
Higher funding cost y/y Total Funding breakdown • Cost of funding up y/y and q/q 0.1% 0.4% 2.0% 2.4% Total Funding • Wholesale component q/q change is 66% Cost due mainly to lower Interbanking, not 55% 57% totally compensated by higher 50% collateralized funding (Tax receivables ABS) Wholesale -0.6%
Slide 10: Asset Quality driven by factoring business
Asset Quality driven by factoring business Gross €m Non Performing Exposures Net Non Performing Exposures 284.8 298.4 PA exposure 275.9 deriving from ordinary 223.1 234.7 business 213.6 170.4 173.4 173.9 123.3 125.2 Past-dues 126.6 Unlikely to Pay 33.0 34.5 63.1 19.2 48.9 20.7 81.4 Bad loans 80.6 67
Slide 11: Regulatory Capital above minimum requirements
Regulatory Capital above minimum requirements CET1 and Total Capital €m TC Ratio 16.5% 15.3% 15.0% 2022 SREP requirements: • CET1 ratio 9.0% RWA breakdown CET1 Ratio 13.3% 12.0% 11.9% • TCR 12.5% €m 238.8 215.5 217.8 1,448.0 1,412.5 193.1 CET1 169.8 172.1 Credit Risk Total Capital 1,223.7 1,259.2 Op
Slide 12: Annexes
Annexes BANCA 12 SISTEMA
Slide 13: Factoring Turnover
Factoring Turnover Factoring Turnover €m +18% 2,477 2,096 +34% y/y ex. Tax Receivables 1,651 Turnover generated by agreements with Italian Retail banks: 11% in 1H2023 1H 21 1H 22 1H 23 1H23 Factoring Turnover breakdown By Type By Year of Customer’s Acquisition Customer Concentration Spain 1H23 Tax 3
Slide 14: Late Payment Interest
Late Payment Interest Due LPI Stock – Assets in legal action Total collected cashed-in LPI(1) €m €m 93 90 81 84 €69m accrual €1.1m recognised in P&L Sold LPI 3.9 119 3.1 3.1 105 104 112 2.7 1.6 1.8 30.09.2022 31.12.2022 31.03.2023 30.06.2023 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 LPI - non relevant for
Slide 15: 1H23 – Income Statement
1H23 – Income Statement Figures in millions of Euro 1H 23 vs 1H 22 1H 2022 1Q 2022 2Q 2022 1H 2023 1Q 2023 2Q 2023 change in % Interest income 50.6 23.6 27.0 83.4 40.1 43.3 65% Interest expenses (5.9) (2.9) (3.0) (47.5) (19.5) (28.0) nm Net interest income 44.6 20.7 24.0 35.8 20.6 15.2 -20% Commissi
Slide 16: Asset Quality
Asset Quality Gross Bad loans 6.8% 0.2% 6.6% 0.1% 6.6% 0.1% Conservatorships (factoring) 14.3% 14.1% 14.1% Factoring SME State Guarantee Loans 78.8% 79.1% 79.1% Other 31.12.2022 31.03.2023 30.06.2023 Gross Unlikely to Pay 13.3% 12.7% 7.5% 0.5% 5.0% 56.5% 36.0% 86.2% 82.3% 31.12.2022 31.03.2023 30.06
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