Banco Di Desio E Della Brianza S.p.a. · MIL:BDB
Banco Di Desio E Della Brianza — Debt Investor Presentation (August 2017)
35 slides from Banco Di Desio E Della Brianza's debt investor presentation, August 2017
Slide 1: Soft-Bullet Covered Bond Programme Investor Presentation
Banco di Desio e della Brianza S.p.A. (“Banco Desio”) SOFT-BULLET COVERED BOND PROGRAMME Investor presentation August 2017
Slide 2: Potential Transaction: Indicative Terms and Conditions
Potential Transaction Indicative Terms and Conditions Issuer Banco di Desio e della Brianza S.p.A Expected Rating [AA-] Fitch Status Covered Amount EUR [•]million Maturity type Soft-bullet/Intermediate Coupon Fixed [ ] % Coupon payments Annual Issue/re-offer Spread: ms+[•] bps Redemption price 100%
Slide 3: Executive Summary
Executive Summary • Conservative business model focused on retail and SMEs banking activities • Improving asset quality with high coverage ratio well above Italian System avg • Stable funding and good liquidity (LCR over 100%) Issuer description • Strong capital position: CET1 at 11.09% vs SREP requ
Slide 4: Table of contents
Table of contents 1 Issuer description 2 Banco Desio OBG Programme and Cover Pool description 3 Residential mortgage business 4 Contacts 4
Slide 5: Table of contents
Table of contents 1 Issuer description 2 Banco Desio OBG Programme and Cover Pool description 3 Residential mortgage business 4 Contacts 5
Slide 6: Banco Desio: a solid and independent bank with strong local roots
Banco Desio: a solid and independent bank with strong local roots 2014: Banco Desio 1995: listing on the Milan Founded in 1909 acquisition of Banca Stock Exchange market Popolare di Spoleto • Founded in 1909 under the name of • Following the listing, Banco Desio • Banco Desio reviewed its bank «Cass
Slide 7: Banco Desio in a nutshell: coherent, conservative, listed and IG rated
Banco Desio in a nutshell: coherent, conservative, listed and IG rated • Business model mainly providing retail and SMEs banking services; • Simple group structure focused on banking activities; • Listed since 1995 on the Milan Stock Exchange with a market capitalisation of EUR 324.7m (as of 24th Au
Slide 8: Banco Desio vs Italian issuers
Banco Desio vs Italian issuers • Solid fundamentals and ratios makes Banco Desio comparable to Italian CB issuers despite its small BS; • The inaugural CB Programme will be the first market transaction for Banco Desio, leading the bank also to diversify and extend its potential sources of funding; •
Slide 9: Business Plan update: from BPS acquisition to CB issuance
Business Plan update: from BPS acquisition to CB issuance Business Plan 2015-2017 Business Plan 2018-2020 Release of a new Business Plan Release of the new three-year Business Plan following acquisition of BP Spoleto focusing on: after inaugural CB programme : ● Full integration of Banco Desio and B
Slide 10: Resilient performance despite the prolonged economic downturn
Resilient performance despite the prolonged economic downturn and the re-launch of Banca Pop. Spoleto, acquired in 2014 P&L 2016 (Eur m) ∆ Income statement Eur m 2014* 2015 2016 2016/2015 Operating income 431.8 470.8 422 -10.40% Operating costs -243.2 -278.6 -275.2 -1.20% • In a global context of lo
Slide 11: Constant proximity to real economy and well-diversified customer base
Constant proximity to real economy and well-diversified customer base Gross customer loans (interest bearing) trend (Eur bn) • Good diversification in terms of industrial sectors and individual borrowers, with limited large exposures and increasing loans to customers year on year; • Gross customers
Slide 12: Improving asset quality: decreasing level of NPLs
Improving asset quality: decreasing level of NPLs Gross impaired loans trend (Eur bn) • Banco Desio is planning further net NPEs disposals by the end of 2017 so to improve its asset quality; • Eur 167m bad loans disposal was made in Dec-16 and Mainly due to Mainly due to Eur 167m NPLs Eur 40m NPLs E
Slide 13: Consistent and resilient funding profile
Consistent and resilient funding profile Total funding breakdown (Eur bn) • Banco Desio proved to have a consistent and resilient funding thanks to its large retail clientele and solid relationship with corporate depositors; • As of Jun-17, total funding amounted to Eur 24.0bn (+1.6% y/y) mainly dri
Slide 14: Securities portfolio made of Govies and optimal liquidity position
Securities portfolio made of Govies and optimal liquidity position Financial portfolio breakdown (Eur bn) Liquidity Coverage ratio (%) • Liquidity coverage ratio above required limits; • The Bank is not dependent on the ECB for its liquidity needs (TLTRO operations only representing ca 14% of its to
Slide 15: Capital ratios: fully meeting SREP requirements
Capital ratios: fully meeting SREP requirements Capital ratios well above minimum requirements (%) • As of FY-16, total equity amounted to Eur 918.5m (stable +506bps year on year), representing 7% of total assets; TCR TCR • High and stable capital adequacy with 5.1% buffer, also CET1 TIER1 13.47% CE
Slide 16: Table of contents
Table of contents 1 Issuer description 2 Banco Desio OBG Programme and Cover Pool description 3 Residential mortgage business 4 Contacts 16
Slide 17: Summary of the programme
Summary of the programme Main Terms Issuer Banco Desio Sellers Banco Desio e Banca Popolare di Spoleto Expected Rating [AA-] (by Fitch) Programme Size Eur 3,000,000,000 Programme Structure Soft-bullet with 12 months of maturity extension Guarantor DESIO OBG S.r.l. Cover Pool Italian prime, first eco
Slide 18: Summary of the programme
Summary of the programme Main Terms Counterparties Guarantor Calculation Agent Securitisation Services S.P.A. Test Calculation Agent Banco Desio Representative of OBG Securitisation Services S.P.A. holders Arranger BNP Paribas Asset Swap Provider N/A Liability Swap Provider BNP Paribas Asset Monitor
Slide 19: Structure diagram
Structure diagram SWAP Provider(s) Transfer of Assets and Subordinated Loan Banco Desio e BP Spoleto DESIO OBG Srl (Sellers) (Guarantor) Purchase Price and Repayment of Subordinated Loan Banco Desio Asset (Issuer) Monitor Guarantee Oversight Proceeds Covered Bonds (Series) Representative of the Cove
Slide 20: Statutory tests
Statutory tests The Statutory Tests are designed according to the Italian Regulation Framework and are intended to ensure that the Cover Pool is at all times sufficient to repay the Covered Bonds Failure of the asset tests that is not remedied within a stipulated period (3 months) will constitute an
Slide 21: Additional tests
Additional tests The tests are included in the legal documentation according to the Rating Agency Requirements • The Adjusted Aggregate Loan Amount* shall be at least equal to the aggregate Outstanding Balance of the Covered Bonds • The Adjusted Aggregate Loan Amount is the lower of: (i) the aggrega
Slide 22: Summary
Summary Portfolio of Mortgage Loans Number of Loans 8,061 Number of Loans Banco di Desio e della Brianza Portfolio ("Desio Portfolio") 5,655 70.15% Number of Loans Banca Popolare di Spoleto Portfolio ("Spoleto Portfolio") 2,406 29.85% Total Outstanding Credit (Euro) 831,636,996.08 Outstanding Credit
Slide 23: Cover pool features (1/6)
Cover pool features (1/6) Breakdown by Outstanding Principal Breakdown by Original Loan amount Range Outstanding Range Outstanding % % (Eur) Principal (Eur) (Eur) Principal (Eur) 01) 0,000 - 20,000 2,060,252.52 0.25% 01) 0,000 - 20,000 33,181.75 0.00% 02) 20,000 - 50,000 52,093,245.16 6.26% 02) 20,0
Slide 24: Cover pool features (2/6)
Cover pool features (2/6) Geographic breakdown of which 0.44% Lombardy 50% 29.97% 69.59% North Centre of which Lazio 13% South Source: Banco Desio Financing purpose 90% 80% 80% 70% 60% 50% 40% 30% 20% 16% 10% 5% 0% Purchase / Refurbishment Liquidity Other Source: Banco Desio 24
Slide 25: Cover pool features (3/6)
Cover pool features (3/6) Breakdown by Original Term Breakdown by Funding Year Range Outstanding Outstanding % Average Size Year % Average Size (years) Principal (Eur) Principal (Eur) 01) 0 - 6 1,995,564.47 0.24% 58,693.07 1999 15,573.20 0.00% 15,573.20 2000 21,711.85 0.00% 21,711.85 02) 6 - 8 4,725
Slide 26: Cover pool features (4/6)
Cover pool features (4/6) Residual Life Seasoning 14% 18% 13% 16% 12% 12% 16% 12% 14% 13% 10% 12% 10% 9% 9% 12% 8% 10% 10% 10% 8% 10% 6% 8% 8% 6% 6% 8% 7% 7% 6% 5% 6% 4% 3% 4% 2% 1% 2% 0% 0% 0% 0-6 6-8 8 - 10 10 - 12 12 - 14 14 - 16 16 - 18 18 - 20 20 - 22 22 - 24 24 - 26 26 - 28 28 - 30 > 30 0-1 1-
Slide 27: Cover pool features (5/6)
Cover pool features (5/6) Current LTV LTV at origination 25% 35% 22% 31% 20% 30% 20% 17% 16% 25% 21% 21% 20% 15% 20% 13% 15% 10% 7% 10% 4% 5% 4% 5% 1% 1% 1% 0% 0% 0% 0% 0% 00-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80 00-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100 Source: Banco Desio
Slide 28: Cover pool features (6/6)
Cover pool features (6/6) Class of Spread Current Interest rate breakdown 40% 36% 35% 9% 30% 25% 29% 25% 22% Fixed 20% Floating 15% 10% 10% 7% Floating Capped 5% 62% 0% 0% 0%-0.50% 0.50%-1.00%1.00%-1.50%1.50%-2.00%2.00%-2.50% Over 2.50% Source: Banco Desio Source: Banco Desio Class of Rate Payment F
Slide 29: Table of contents
Table of contents 1 Issuer description 2 Banco Desio OBG Programme and Cover Pool description 3 Residential mortgage business 4 Contacts 29
Slide 30: Origination and Underwriting
Origination and Underwriting • All mortgages are originated directly through Banco Desio and BP Spoleto branches : Sales force • 267 branches concentrated in North and Centre of Italy (especially in Lombardy and Umbria) • Most of the approval powers are granted to regional or central offices • Depen
Slide 31: The underwriting process
The underwriting process Analysis of key factors for Data collection and input Internal rating and scoring credit decision Collection of documents from the Assessment of the Borrower’s • Debt to income borrower (Identification credit worthiness based on • Score in-house credit model documents, Incom
Slide 32: Arrears management process
Arrears management process • Loan “In Bonis” (performing) Payment • Managed daily at branch level date • Most customers contacted immediately depending on amount and risk • Specific alerts sent to branches by IT application requesting the reason of the arrears 30 days that will be duly reported to t
Slide 33: Table of contents
Table of contents 1 Issuer description 2 Banco Desio OBG Programme and Cover Pool description 3 Residential mortgage business 4 Contacts 33
Slide 34: Contacts
Contacts Alberto Re Head of Financial Dept. +39 0362 613400 [email protected] Giorgio Federico Rossin Head of Planning & Control, Investor Relations +39 0362 613469 [email protected] 34
Slide 35: Banco Desio disclaimer
Banco Desio This presentation has been prepared by Banco di Desio e della Brianza S.p.A. (the “Company”) and is intended for the sole use of qualified investors as defined by Article 26, first paragraph, letter d) of CONSOB Regulation No. 16190 of October 29, 2007, as amended, pursuant to Article 10
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