Unicredit S.p.a. · MIL:UCG
Unicredit — Debt Investor Presentation (December 2015)
35 slides from Unicredit's debt investor presentation, December 2015
Slide 1: UniCredit Group: 3Q15 results Presentation to Fixed Income Investors
UniCredit Group: 3Q15 results Presentation to Fixed Income Investors Milan, December 2015
Slide 2: Disclaimer
Disclaimer This Presentation may contain written and oral “forward-looking statements”, which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, p
Slide 3: UniCredit at a glance
UniCredit at a glance A clear international profile based on a strong European identity UniCredit Highlights Shareholders’ Structure(1) Strong local roots in almost 17 countries Institutional Investors Over 126,500(2) employees 33% 41% Stable Shareholders About 7,000(2) branches Retail Almos
Slide 4: Executive summary
Executive summary Earnings Group net profit at 507m in 3Q15 with a RoTE of 4.8%, and 9M15 above 1.5bn delivering a RoTE generation of 5%. Considering non recurring items, 9M15 net profit at 1.9bn with a RoTE of 6.2% CET1 ratio fully loaded up to 10.53% thanks to earning generation and RWA dynami
Slide 5: Agenda
Agenda Group Core Bank Non Core Financials 5 UniCredit Group - INTERNAL USE ONLY -
Slide 6: Group – Results
Group – Results Net profit above 1.5bn in 9M15 with 5% RoTE and 1.9bn with 6.2% RoTE considering SRF/DGS, LLP for Ukraine and CHF conversion in Croatia Total assets, bn Tangible equity, bn Net profit, m -2.8% 9M15 at 1.9bn +2.1% +0.2% excluding non -0.2% recurring items(1) 901 875 45.9 43.8 45.6 44.
Slide 7: Group – Regulatory capital (1/3)
Group – Regulatory capital (1/3) CET1 ratio fully loaded up to 10.53% in Sep-15 due to earnings generation and RWA dynamics, 10.78% proforma for Pioneer JV 10. 78% incl. Pioneer JV (+25bp) +16bp +8bp 10.53% +13bp -5bp 10.37% Jun-15 3Q15 earnings Div. accrual & Cashes RWA, Reserves Sep-15 fully loade
Slide 8: Group – Regulatory capital (2/3)
Group – Regulatory capital (2/3) CET 1 ratio transitional at 10.53% at Sep-15 with positive earnings generation and RWA reduction offsetting FX reserve +12bp -5bp 10.93% incl. -6bp Pioneer JV 10.52% 10.53% Jun-15 3Q15 earnings(1) Div. accrual RWA, Sep-15 transitional & Cashes reserves & other transi
Slide 9: Group – Regulatory capital (3/3)
Group – Regulatory capital (3/3) RWA decreased by 5.4bn q/q mainly due to FX dynamics and procyclicality more than offsetting business evolution RWA eop, bn RWA main drivers(1), bn -0.8bn +0.5 Market -5.4bn -0.2 Credit 405.9 +1.1 -1.0 406 -0.6 -3.7 Other(2) -0.2 401 400 43 -3.5 Operational 44 43 -1.
Slide 10: Group – Medium-long term funding plan
Group – Medium-long term funding plan 2015 Group Funding Plan completed including TLTRO Funding mix, managerial data % of M/L term run offs by region(1) 10.1bn TLTRO 7.9bn TLTRO 32.3bn not included 26.6bn not included 29.6bn 24.6bn 28.2bn 17.9bn Germany 23% 12% 27% 59% 18% Italy 52% 13% 68% 8% 8% 14
Slide 11: UniCredit has continuous wholesale market access
UniCredit has continuous wholesale market access Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 18/02/2015 7Y MS + 3 bps 01/09/2015 MS + 5 bps Pfand 10Y 31/03/2015 23/04/2015 17/07/2015 (500) 12/01/2015 Pfand MS -14 bps MS + 45 bps MS – 13 bps 3mE + 105 bps (500)
Slide 12: Very strong liquidity position confirmed
Very strong liquidity position confirmed 1-year Group liquidity buffer exceeds 12 months wholesale funding Liquidity buffer (12 months) as of September 2015 (€bn)(1) 191 Additional eligible assets 36 available within 12 months Cash and Deposits 25 with Central Banks Unencumbered assets 155 129 (imme
Slide 13: Ratings Overview
Ratings Overview Issuer Ratings(1) Recent actions and key individual rating drivers Italy BBB-/Stable/A3 On the 18th December 2014, UC SpA's rating was aligned with the sovereign Italy (affirmed on the 13th of November), as S&P's criteria caps the rating at the same level UC SpA BBB-/Stable/A3 O
Slide 14: Leverage Ratio
Leverage Ratio A sound level is confirmed, comparing well with peers Leverage Ratio 6.9 4.5% incl. Pioneer JV 5.7 5.4 4.7 4.2 4.4 4.4 4.4 3.9 3.9 4.1 3.6 3.8 Fully Loaded 2.8 BIS3 Leverage Ratio, % (Sep. 2015) (2) (2) (3) (1) CS DB UBS BNP SG CBK Barclays CASA UCG Nordea SAN Erste BBVA ISP (1) Trans
Slide 15: Group – Asset quality
Group – Asset quality Gross impaired further down due to NPL sales and recoveries. Coverage ratio confirmed at a sound 51% with CoR down excluding CHF conversion in Croatia Gross impaired loans(1), bn Gross bad loans (sofferenze)(1), bn -0.2% -4.3% +3.1% -2.9% 83.6 83.5 84.4 81.7 80.7 49.1 50.6 52.1
Slide 16: Asset quality in Italy
Asset quality in Italy Confirmed better asset quality trend vs. banking system UCI Spa(1) ABI sample(2) Gross impaired loans Gross bad loans (sofferenze) Other gross impaired loans Base 100 at Dec-12 Base 100 at Dec-12 Base 100 at Dec-12 144 159 127 127 127 141 155 126 139 123 137 150 146 133 143 14
Slide 17: Agenda
Agenda Group Core Bank Non Core Financials 17
Slide 18: Core Bank – Net profit
Core Bank – Net profit Net profit 900m in 3Q15 with 10% RoAC. Net profit 2.6bn in 9M15, up vs. 9M14 considering DGS/SRF, Ukraine in 2Q15 and LLP for CHF conversion in Croatia Net profit, m Divisional breakdown – 3Q15 net profit, m RoAC(2) 9M15 at c.3bn excluding non CB Italy 515 25.1% recurring item
Slide 19: Core Bank – Net operating profit
Core Bank – Net operating profit Net operating profit stable in 3Q15 excluding loan loss provisions for CHF conversion in Croatia Revenues, m +0.3% -6.7% 16,643 16,688 5,476 5,693 5,311 Net operating profit, m 3Q14 2Q15 3Q15 9M14 9M15 -8.8% 5,666 Costs, m 5,166 +2.0% 3Q15 at c.1.7bn excluding CHF -1
Slide 20: Core Bank – Revenues
Core Bank – Revenues Resilient revenues in 9M15 with net interest compensated by higher fees, trading and dividends. 3Q15 trading affected by market conditions Net interest(1), m Net fees and commissions, m -3.8% +4.6% 9,210 8,856 5,545 5,801 -2.1% -5.0% 3,068 2,990 2,928 1,808 1,966 1,868 3Q14 2Q15
Slide 21: Core Bank – Net interest income
Core Bank – Net interest income Net interest lower in 3Q15 with loan volumes and funding improvement mitigating the impact of lower customer rates Net interest bridge q/q , m -2.0% 2,990 2,987 Euribor 3M -3 +25 -21 -26 2,928 -0.03% -120 +67 +16 in 3Q15 Commercial dynamics: -33m 2Q15 Days and Baselin
Slide 22: Core Bank – Customer loans
Core Bank – Customer loans Commercial lending volumes broadly stable in 3Q15. Positive yearly progression supported by all divisions Divisional breakdown – Customer loans, bn Customer loans, bn At const. FX q/q y/y CB Italy(1) 133.4 -0.3% +2.4% CB Germany (1) 77.9 +1.5% +1.5% +3.6% +0.8% CB Austria
Slide 23: Core Bank – Customer direct funding
Core Bank – Customer direct funding Commercial direct funding up by 6.2bn q/q. CIB and CEE & Poland are top contributors to a sound liquidity position Divisional breakdown – Direct funding, bn Customer direct funding(1), bn At const. FX q/q y/y CB Italy(2) 142.3 -1.2% -0.1% CB Germany(2) 73.1 -0.2%
Slide 24: Core Bank – New origination in commercial banks
Core Bank – New origination in commercial banks MLT flows strongly up by 38% in 9M15 at 23.3bn, driven by all main customer segments across commercial banks New flows o/w household mortgages o/w mid corporates +42.7% +83.3% +11.2% 12,343 5,232 2,527 2,810 8,650 CB Italy, m 2,853 9M14 9M15 9M14 9M15
Slide 25: Core Bank – Fees and commissions
Core Bank – Fees and commissions Fees at 5.8bn in 9M15, up by 4.6% vs 9M14 thanks to investment fees. AuC conversion and new inflows underpin y/y conversion into AuM Net fees and commissions, m Investment services fees, m recurring fees +11.2% +4.6% (c.60% in 9M15)(1) 5,801 -7.8% 2,487 2,766 5,545 7
Slide 26: Core Bank – Total costs
Core Bank – Total costs Costs down in 3Q15 by c.2% supported by lower staff expenses Costs, m Staff expenses, m +2.9% -2.8% 6,007 6,183 +2.0% 1,993 2,093 2,034 9,599 9,789 3Q14 2Q15 3Q15 9M14 9M15 Other administrative expenses(1), m -0.4% -1.9% 3,301 -0.3% 2,939 2,928 3,181 3,239 968 982 979 3Q14 2Q
Slide 27: Core Bank – Loan loss provisions
Core Bank – Loan loss provisions LLP down by c.11% in 3Q15, embedding negative impact of CHF conversion in Croatia and positive impact of write-backs in CBK Germany and CIB Loan loss provisions, m Divisional breakdown – 3Q15 cost of risk, bp q/q y/y Croatia CHF conversion +25.7% 1,732 CB Italy 73 -4
Slide 28: Agenda
Agenda Group Core Bank Non Core Financials 28 UniCredit Group - INTERNAL USE ONLY -
Slide 29: Non Core – Main trends
Non Core – Main trends Gross loans further down by over 4bn q/q supported by back to Core, NPL disposals and proactive deleveraging, leading to a RWA decrease of 2.4bn q/q Gross customer loans, bn €, m 3Q14 2Q15 3Q15 Q/Q Y/Y 9M14 9M15 9M/9M Revenues 85 42 21 -49.0% -74.8% 304 128 -58.0% -13.7bn Cost
Slide 30: Non Core – Asset quality
Non Core – Asset quality Impaired loans confirmed downward trend driven by continued reduction in other impaired loans Bad loans stabilizing with NPL sales balancing internal migrations Gross bad loans (sofferenze)(1), bn +3.2% -2.7% 36.4 37.6 36.4 36.6 Gross impaired loans(1), bn 35.3 -2.4% -7.4% N
Slide 31: Concluding remarks
Concluding remarks Group net profit over 1.5bn in 9M15 with a RoTE of 5%. Excluding non recurring items (Croatia and Ukraine) and systemic charges net profit at 1.9bn with RoTE of 6.2% Core Bank net operating profit stable in 3Q15 net of LLP related to CHF conversion in Croatia, lower costs and
Slide 32: Agenda
Agenda Group Core Bank Non Core Financials 32
Slide 33: Group – P&L and volumes
Group – P&L and volumes Net profit over 1.5bn in 9M15 with 5.0% RoTE. Solid commercial performance partly overshadowed by LLP for CHF conversion in Croatia Euro (m) 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 ∆ % vs. ∆ % vs. 9M14 9M15 ∆ % vs. 2Q15 3Q14 9M14 Total Revenues 5,588 5,798 5,561 5,604 5,749 5,735
Slide 34: Core Bank – P&L and volumes
Core Bank – P&L and volumes Positive bottom line quarterly evolution with cost reduction and lower LLP mitigating the impact of revenues seasonality Euro (m) 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 ∆ % vs. ∆ % vs. 9M14 9M15 ∆ % vs. 2Q15 3Q14 9M14 Total Revenues 5,481 5,686 5,476 5,531 5,685 5,693 5,311 -
Slide 35: Non Core – P&L and volumes
Non Core – P&L and volumes Net loss in 9M15 at 1.1bn, broadly in line with 9M14 with lower costs and LLP offsetting lower revenues Euro (m) 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 ∆ % vs. ∆ % vs. 9M14 9M15 ∆ % vs. 2Q15 3Q14 9M14 Total Revenues 107 112 85 73 64 42 21 -49.0% ▼ -74.8% ▼ 304 128 -58.0% ▼ Ope
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