Banca Sistema S.p.A. · MIL:BST
Banca Sistema — FY2017 Earnings Presentation
14 slides from Banca Sistema's earnings presentation, Feb 8, 2018
Slide 1: FY 2017 Results
FY 2017 RESULTS 8 February 2018
Slide 2: FY 2017 Results at a Glance
FY 2017 Results at a Glance FY 2017 Factoring Turnover +37% y/y, +27% y/y 9M 2017 vs. 9M 2016 Commercial Increasing contribution on factoring turnover from the agreements with banks performance CQS/CQP outstanding reached €500m, +88% y/y Net Interest Income equals to €70.7m Cost of funding stable y/
Slide 3: Core business assets outstanding is growing
Core business assets outstanding is growing Factoring outstanding CQ Loans outstanding €m €m +38% y/y +88% y/y 1,429 Purchases from 8 originators 500 1,255 423 266 1,039 31.12.2016 30.09.2017 31.12.2017 31.12.2016 30.09.2017 31.12.2017 Outstanding breakdown (31.12.2017) Outstanding breakdown by Type
Slide 4: FY 2017 – Income Statement
FY 2017 – Income Statement Figures in millions of Euro Factoring contribution to NII represents 82% of the total Difference % 31.12.2016 31.12.2017 FY 2017 NII includes €9.6m of higher factoring LPIs (from legal actions) following an accounting update Net interest income 71.0 70.7 -0.5% of the accru
Slide 5: FY 2017 – Balance Sheet
FY 2017 – Balance Sheet Figures in millions of Euro Govies’ portfolio (€363m) lower vs 2016 year-end 31.12.2016 31.12.2017 Difference % following the decrease of the AFS component not compensated by the HtM position built in 2017 ASSETS Avai la bl e-for-s a le fina ncia l as s ets 515 286 -44% Loans
Slide 6: Stable factoring profitability
Stable factoring profitability How we originate new business: Factoring Outstanding Evolution Funding period based on Expected Collection date (“DFS”) days €m Ordinary Collection Legal Collection 421 611 645 310 364 338 345 362 1,429 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q17 1,229 1,255 364 1,0
Slide 7: Operating costs slightly higher y/y, line with expectations
Operating costs slightly higher y/y, line with expectations Administrative Expenses, Net Provisions for Operating Costs Personnel Expenses risk, Servicing Costs, Other and D&A €m FTEs (#) 144 156 +4% 21.5 20.5 36.7 38.1 17.4 15.2 17.6 17.1 4.4 3.1 FY 2016 FY 2017 FY 2016 FY 2017 1 FY 22017 FY 2016 S
Slide 8: Higher diversification and stable cost
Higher diversification and stable cost Total Funding Breakdown Core Business Funding Breakdown • Term Deposits stock is Core Funding Cost stable q/q and up y/y, 1.2% 1.1% 1.1% average cost was also almost stable q/q and y/y 61% 53% 50% • Current account stock up Wholesale Retail Funding y/y and q/q
Slide 9: Asset Quality driven by factoring business
Asset Quality driven by factoring business Gross Non Performing Loans Net Non Performing Loans €m 153.0 143.3 133.2 123.8 121.0 39.8 44.6 107.3 28.5 35.2 24.1 16.7 32.3 23.0 24.0 15.4 20.2 16.2 89.1 87.9 68.3 74.7 68.1 73.3 31.12.2016 30.09.2017 31.12.2017 31.12.2016 30.09.2017 31.12.2017 Past-dues
Slide 10: Regulatory Capital well above minimum requirements
Regulatory Capital well above minimun requirements CET1 and Total Capital(1) RWA breakdown CET1 Total Capital €m €m q/q increase due mainly Operational Risk & Market Risk(2) Credit Risk to the purchases of TC Ratio 16.1% 15.3% CQS/CQP Loans CET1 Ratio 12.4% 11.9% 157.8 162.0 1,058.0 983.0 122.2 125.
Slide 11: Appendix
Appendix
Slide 12: Factoring Turnover
Factoring Turnover Factoring Turnover €m +37% Turnover generated by agreements 2,010 with Italian Retail banks: 29% of FY 2017 (13.5% FY 2016) 1,469 FY 2016 FY 2017 2017 Factoring Turnover breakdown By Type By Year of Customer’s Customer Concentration Acquisition Tax Before 2015 receivables 24% TOP
Slide 13: 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 14: Head of Investor Relations
Carlo Di Pierro Head of Investor Relations [email protected] +39 02 80280358 +39 3355288794