1Q results as at 30 September Milan, 28 October 2008

Transcription

1 1Q results as at 30 September 2008 Milan, 28 October 2008

2 ¹: decelerating but solid result MB Solid balance sheet Funding further increased to 47bn (+4%), reasonable cost of funding Loan portfolio to 36bn (+3%), excellent asset quality Treasury further increased to 11bn (+6%) CIB net profit flat NII up 13%, 158 gain from AFS stake disposal, no losses in trading Deceleration in fees No material impact in P&L from new IAS 39 criteria² PI results halved due to lower contribution from investee companies RPB self-financing business line: net profit 25m, despite CheBanca! start-up costs Consumer credit: merger executed, integration underway, profitability preserved Private banking: earnings resilient due to CMB ¹ Results reported for the first time i) including Linea figures (Sept 07 restated); ii) according to new business plan segmentation: Corporate & Investment Banking ( CIB ), Principal Investing ( PI ) and Retail & Private Banking ( RPB ) ² 543m of bonds have been transferred to loan portfolio, thus avoiding a 7m charge to P&L 2

3 Still a good P&L performance and solid balance sheet MB P&L KPIs ( m) Balance sheet KPIs ( bn) Sept 07PF* Sept 08 June 08 Sept 08 Income % Loans Income (PI exc.) -3% 0.8x Costs % Funding Ordinary costs +3% Treasury Risk provisions % Net equity Net profit % Tangible net equity * Restated to include Linea figures 3

4 Liquidity and funding not an issue MB High rating Standard & Poor AA- Core Tier % (June 08) Strong capital Total Capital 11.9% (June 08) Total asset / tangible equity 10.3x Good liquidity Funding up to 47bn, 15bn raised in the last 15m Treasury up to 11bn Funding sources diversified 60% of new funds raised in retail Cost of funding under control Compound average cost of new funds: 35 bps 4

5 Well diversified loan book, excellent asset quality MB Loan book: Sept 08 breakdown ( bn and %) 35.7 Bad loans¹/ Loans 0% 1.6% 1.7% 1.4% 0.1% 0.7% % % 18.8 Total loan book Corporate Retail Corporate lending Leasing Consumer credit Mortgage lending Private banking ¹ Bad loans: non performing loans + potential problem accounts + overdue items 5

6 Income reduction due to PI; good results by CIB and RPB MB Income by component ( m) income by division ( m m and %) % % Income from equity acc. co. -44% -3% 96-48% % 120 Fees -7% 111-7% 85 14% 187 Income from securities and disposals -12% % 208 Net interest income +7% 223 1Q08PF CIB PI RPB* * Esperia consolidated pro-rata 6

7 Resilient income from banking MB Trend in average quarterly income by source ( m) Q08 PF PF Net interest income PF Fees 1Q08 PF Q08 PF PF Income from securities and disposals 7

8 Costs driven by enhancement of distribution network MB Cost trend by component ( m) cost by division ( m m and %) +25% +21% % % Non-Italian branches costs CheBanca! start-up +27% % Ordinary costs 1Q08PF Ordinary costs Total costs CIB PI RPB* * Esperia consolidated pro-rata 8

9 Cost of risk under control, but worsening MB Consumer finance Mortgage lending Leasing Loan book ( bn ) Loan book ( bn) Loan book ( bn) % % 1Q Linea acquisition 1Q Q Loan provisions ( m) Loan provisions ( m) Loan provisions ( m) Q Q Q Q Q07 3Q07 2Q07 1Q Q08 7 3Q08 2 2Q08 2 1Q Q07 3Q07 2Q07 1Q Q08 4 3Q08 4 2Q08 3 1Q Q07 2 3Q07 2 2Q07 3 1Q07 2 9

10 CIB: sound contribution from NII/disposals Income by component trend ( m) Corporate & Investment Banking 343-7% Income from AFS disposal 1.5x Trading income 10 Div & income from equity acc.co Fees -29% Net interest income +13% 94 Avg. Q08 1Q08 CIB PI RPB 10

11 Net profit flat Corporate & Investment Banking Net profit trend ( m) -15% ~ % < 23 +8% > 5 Income Ordinary > 10 > 4 costs Non-Italian branch Cost of costs risk 200 Minorities Minorities & taxes & taxes 200 Net profit Sept 07 PBT Sept 07 PBT Sept 08 Net profit Sept08 CIB PI RPB 11

12 PI: market impact on both NAV and income Principal Investing NAV trend ( bn) Income trend ( m) -27% 6.5-5% -48% Sept 07 June 08 Sept 08 Sept 07 Sept 08 Ass.Generali RCS Media CIB PI RPB 12

13 RPB: self-financing business line Retail & Private Banking Net profit trend ( m) +8% +7% +16% 19 2 CheBanca! costs 50 > 13 Ordinary costs Income > 10 Cost of risk Minorities & taxes CheBanca! costs 10 Minorities & taxes 25 Net profit Sept 07 PBT Sept 07 PBT Sept 08 Net profit Sept 08 CIB PI RPB 13

14 Consumer finance: merger executed, profitability preserved Retail & Private Banking new and outstanding loans by product ( m m and %) Consumer finance P&L ( m) Salary guaranteed Credit cards 1,028 6% 9% 8,413 6% 7% Income Sept Sept % Personal loans 41% 39% Fees % Special purposes 14% 315 Cars 30% 10% 38% Costs Risk provisions % +12% Net profit % Finalized Direct New loans Outstanding loans CIB PI RPB 14

15 Private banking resilient thanks to CMB banking activity Retail & Private Banking AUM trend ( bn) Private banking P&L ( m) 13.8 Sept07 Sept Banca Esperia Income % NII x 19 Fees -10% Compagnie Monégasque 8.2 Costs % Net profit % AUM Sept 07 AUM June 08 AUM Sept 08 CIB PI RPB 15

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