Banca Sistema S.p.a. · MIL:BST
Banca Sistema — 9M 2023 Earnings Presentation
18 slides from Banca Sistema's earnings presentation, Nov 10, 2023
Slide 1: 9M 2023 Results
9M 2023 RESULTS 10 November 2023
Slide 2: 9M 2023 Results at a Glance
9M 2023 Results at a Glance Factoring turnover +13% y/y equal to €3,575m Commercial CQ outstanding at €834m, -13% y/y performance Pawn loans outstanding at €117m, +13% y/y SMEs State guaranteed loans outstanding equal to €247m, +36% y/y Net Interest Income equal to €50.2m, down y/y Fundi
Slide 3: Factoring commercial performance
Factoring commercial performance Factoring – Loans Outstanding Outstanding breakdown (30.09.2023) €m €1,796m By Type of Product By Obligor PA accounts for 75% 1,729 Tax receivables Recourse State Central 1,678 17% 16% Local Administration 1,501 [-35% y/y] [-14% y/y] Entities 21.2% 26.0% Local Health
Slide 4: CQ and Pawn loans commercial performance
CQ and Pawn loans commercial performance CQ loans outstanding Pawn Loans outstanding €m €m +13% y/y 958 117 933 Private Pensioners 22% 44% 834 107 104 PA employees 34% 30.09.2022 31.12.2022 30.09.2023 30.09.2022 31.12.2022 30.09.2023 • €132m turnover in 9M23 (€273m in 9M22) • ~68k contracts • Total
Slide 5: 9M23 – Balance Sheet
Figures in millions of Euro Change in % 31.12.2022 30.06.2023 30.09.2023 30.09.2023 vs 9M23 – Balance Sheet 31.12.2022 ASSETS Govies’ portfolio (nominal value equal to €1,109m) slightly Ca s h a nd ca s h equi va l ents 127 171 155 22% down q/q, with an average duration of 14,4 months (15,3 Fi na n
Slide 6: Well diversified Interest income
9M23 Interest Income up 73% y/y (up q/q), Well diversified Interest income with a higher contribution from factoring (+€27m y/y) 129.6 +73% 37.1 y/y Higher contribution y/y by factoring, mainly due to higher factoring LPIs from legal action 74.9 7.9 16.7 Factoring equal to €26.7m (€11.3m in 2022
Slide 7: Total Income lower y/y
Total Income lower y/y Total Income €m 80.9 3.2 71.3 -12% 12.3 5.9 y/y 9M23 Total Income down 12% y/y, due to lower Net 15.2 Interest Margin (-23% y/y) partially compensated by higher fees (+24% y/y) and positive contribution from financial Net interest Income portfolio disposal 65.4 50.2 Net Comm
Slide 8: Cost Base Growing at a Lower Pace
Cost Base Growing at a Lower Pace Total Operating Costs Personnel Expenses Administrative Expenses, Net €m FTEs (#) 283 295 Provisions for risk, Other and +5% y/y D&A 47.7 50.1 21.4 29.2 20.9 26.3 9M22 9M23 9M22 9M23 9M22 9M23 Other Costs 58% Personnel Personnel expenses -2.7% y/y (mainly due to l
Slide 9: Higher funding cost y/y
Higher funding cost y/y Total Funding breakdown • Cost of funding up y/y and q/q and still expected to increase in the coming 0.2% 0.4% 2.4% 2.7% Total Funding quarters but the bank has confirmed a Cost further more comfortable position in 55% 66% terms of liquidity thanks to extra 55% 57% funding d
Slide 10: Asset Quality driven by factoring business
Asset Quality driven by factoring business Gross €m Non Performing Exposures Net Non Performing Exposures 284.8 298.4 287.4 PA exposure deriving from ordinary 223.1 234.7 223.2 business 170.4 173.4 174.2 123.3 125.2 Past-dues 125.9 Unlikely to Pay 33.0 63.0 19.2 48.9 59.2 44.6 81.4 Bad loans 80.6 61
Slide 11: Regulatory Capital above minimum requirements
Regulatory Capital above minimum requirements CET1 and Total Capital €m TC Ratio 16.7% 15.0% 15.4% 2022 SREP requirements: • CET1 ratio 9.0% RWA breakdown CET1 Ratio 13.6% 11.9% 12.3% • TCR 12.5% €m 241.4 217.8 222.4 1,448 1,442 195.6 CET1 176.7 172.1 Credit Risk Total Capital 1,259 1,253 Operationa
Slide 12: Annexes
Annexes BANCA 12 SISTEMA
Slide 13: Factoring Turnover
Factoring Turnover Factoring Turnover €m +13% 3,575 3,152 +26% y/y ex. Tax Receivables 2,495 Turnover generated by agreements with Italian Retail banks: 12% in 9M2023 9M21 9M22 9M23 9M23 Factoring Turnover breakdown By Type By Year of Customer’s Acquisition Customer Concentration Spain Tax 9M23 4% r
Slide 14: Late Payment Interest
Late Payment Interest Due LPI Stock – Assets in legal action Total collected cashed-in LPI €m €m 98 €1.1m 93 Sold LPI 90 84 3.9 3.1 3.1 €73.2m accrual 2.7 112 119 123 104 recognised in P&L 2.0 1.6 1.8 31.12.2022 31.03.2023 30.06.2023 30.09.2023 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q23 3Q23 LPI - non relev
Slide 15: 9M23 – Income Statement
9M23 – Income Statement Figures in millions of Euro 9M 23 vs 9M 22 9M 2022 1Q 2022 2Q 2022 3Q 2022 9M 2023 1Q 2023 2Q 2023 3Q 2023 change in % Interest income 74.9 23.6 27.0 24.3 129.6 40.1 43.3 46.2 73% Interest expenses (9.4) (2.9) (3.0) (3.5) (79.4) (19.5) (28.0) (31.9) nm Net interest income 65.
Slide 16: Asset Quality
Asset Quality Gross Bad loans 6.8% 0.2% 6.6% 0.2% 6.6% 0.2% Conservatorships (factoring) 14.3% 14.1% 14.0% Factoring SME State Guarantee Loans 78.8% 79.1% 79.2% Other 31.12.2022 30.06.2023 30.09.2023 Gross Unlikely to Pay 13.3% 7.5% 8.1% 0.5% 52.7% 36.0% 56.5% 39.1% 86.2% 31.12.2022 30.06.2023 30.09
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: Christian Carrese
Christian Carrese Head of Investor Relations [email protected] +39 02 80280403 18