Consolidated Results as at September 30, Miro Fiordi CEO, Credito Valtellinese. 11 th November 2014

Transcription

1 Consolidated Results as at September 30, th November 2014 Miro Fiordi CEO, Credito Valtellinese 1

2 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management and Net profit development New Commercial Model (CuRVa) AQR Annexes 2

3 Executive Summary Executive Summary Strong capital position: CET1 ratio at 11.8% phased-in aligning Creval to the best capital standards, also excluding the additional buffer deriving from AIRB model approval (approx. 130 basis point), to comfortably face AQR impact Solid leverage ratio 7.15% (September 2014) Sound liquidity position counterbalancing capacity over 7,4 bln of which 4,4 bln /bn unencumbered LCR and NSFR well above the minimum required TLTRO 1 /bln took up in September 2014 (max.amount to pick up, vs. 2,2 bln/ expiring LTRO in February 2015) Good operating trends Operating income up to 700 /mln (+15.9% y/y), driven by NII recovery and trading income whilst net commissions confirmed substantially unchanged Cost control capability affirmed (-1.2% y/y) Lending volume trend still affected by a subdued demand, especially for SMEs new investments Cost of credit risk at 206 bps (annualized) affected by a subdued macro environment Management focus on credit quality ahead of AQR outcome Strong management commitment to efficiency: a new branch model CuRVa «Customer Relation Value» 3

4 Executive Summary Consolidated Balance Sheet Data 30 September December 2013 (mln ) +3.8% 20, % 19,672 20, % 21,116 11, % 11,925 31,817 33,041 Loans to customers Direct deposits Indirect deposits Total deposits 31/12/ /09/2014 Balance sheet structure 30/09/ /12/2013 Indirect deposits from customers / Total deposits 36.1% 35.1% Direct deposits from customers / Total liabilities 74.2% 76.0% Customer loans / Direct deposits from customers 93.2% 97.8% Customer loans / Total assets 69.1% 74.3% 4

5 Executive Summary Strengthening Customer base 929k customers (+22k year to date) Cross selling ~ 4.4 Retention rate* ~ 96.1% Overall customer satisfaction index* 78 (+9 points YoY, 65 market average) Sales results as of 30/09/2014 Current accounts ~ + 15,600 Debt Cards ~ + 29,500 Car insurance ~ 14,100 Consumer Finance (Compass) new loans Net flow AUM (mainly Anima) Bancassurance flow Household mortgages - new loans Internet customers ~ 45 mln ~ 256 mln ~ 350 mln ~ 245 mln ~ 238 k *Source: customer satisfaction survey - households 5

6 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management and Net profit development New Commercial Model (CuRVa) AQR Annexes 6

7 Credit policies and asset quality Loans to customers analysis Quarterly trend (mln ) -4.4% 20,581 20,197 19,835* 19,864** -1.9% -1.8% +0.1% -1.0% 19,672 Some signs of stabilization in loan volume, gross of impairments, in /09/ /12/ /03/ /06/ /09/2014 Including 196 mln to CCG Including 326 mln to CCG Including 259 mln to CCG Including 628 mln to CCG Including 761 mln to CCG * Including assets (418 mln, financial leasing) related to the agreement signed with Alba leasing ** Including assets (417 mln, financial leasing) related to the agreement signed with Alba leasing Gross loans by technical classification Current accounts 27.5% Npls 11.0% Mortgages 45.0% Pool loans 2.9% Foreign loans 1.8% Personal loans 2.9% Loans CCG & CDP* 3.6% Other operations 1.6% Financial leasing 3.7% * CCG: Cassa Compensazione e Garanzia CDP: Cassa depositi e prestiti Gross loans by business segment 65% of total loan book to SMEs and Households Source: internal data Large corporate: asset/revenues>25mln SME Corporate 36.4% Households 28.8% Small retail 9.6% Micro retail 4.5% Other 4.8% Large Corporate 15.9% Source: internal data 7

8 Credit policies and asset quality Loan portfolio diversification Gross loan book breakdown by geography (%) ~ 58% of loans in Lombardy Well-diversified loans, both in terms of industrial sector and individual borrower Average loan granted to real estate and construction sectors ( ATECO ) ~ 235k * Loan to value at the disbursment date Source: internal data Average EUR 83,000 per loan (EUR 84,000 in June 2014) Loan concentration % Total loans Top 20 exposures 6.9% Lombardia 58.1% Marche 7.3% Piemonte 3.7% Sicilia 15.3% Retail Secured on real estate property Retail Secured on real estate property of which SME Toscana 1.9% Trentino Alto Adige 1.6% Umbria 0.7% Valle d Aosta 0.01% Veneto 2.7% Emilia Romagna 1.1% Lazio 7.6% Source: internal data LTV % (as of 30/06/2014) 48.4% 50.5% Retail Secured on real estate property of which non SME 47.5% 8

9 Credit policies and asset quality Asset quality Credit risk profile (mln ) 30/09/ /12/2013 Chg% 30/09/2013 Net non-performing 1, Net Substandard 1,326 1, ,046 Net Restructured Net Past due Total net doubtful loans 3,209 2, ,772 Net doubtful loans / Loans to customers 16.3% 13.6% 13.5% Non-performing loans coverage 55.3% 57.9% 57.9% Doubtful loans coverage 33.6% 33.7% 32.5% Cost of credit risk * 2.06% 1.32% 1.19% (*) Calculated as the ratio between net value adjustments due to deterioration of loans and end of period loans, included Non-current assets and disposal groups held for sale Total NPLs coverage considering write off on existing NPL ~ 58.3%** ** Source: internal data Category Average ageing (months) as at September 2014 Substandard

10 Credit policies and asset quality Asset quality Coverage Ratios 30/09/ /12/ /09/2013 Non-performing loans 55.3% 57.9% 57.9% Substandard 15.9% 15.9% 15.6% Restructured 10.4% 10.2% 11.0% Past due 6.6% 6.4% 3.7% Doubtful Loans Coverage Coverage Bonis 32.5% 33.7% 33.6% +120 bps -10 bps 0.59% 0.58% 0.60% -1 bps +2 bps September 2013 December 2013 September 2014 September 2013 December 2013 Share of loans assisted by guarantees** on total net NPLs Data as at 31/12/2013 September % 85% 84% 83% 78% 77% 76% 75% 72% Peer average*: 79% * Peers include ISP, UCG, MPS, UBI, BPER, BPM, Carige and BP. ** real collateral Source: FY 2013 Annual Reports. Aritmetic mean Creval Peer1 Peer2 Peer3 Peer4 Peer5 Peer6 Peer7 Peer8 10

11 Credit policies and asset quality NPL analysis including collateral NPL Total Coverage Ratio (%) -3% 107% 110% 107% 55% 3% 49% 13-Q3 14-Q3 Cash coverage Ratio Cash coverage related to NPL write-off Real estate collateral (market value) Total coverage ratio Source: internal data. Collateral includes real estates and securities at market value. Real estate values represented by 1st and 2nd mortgages. Collaterals are evaluated considering lowest value between credits and guarantee amount, in case of loans fully or partly covered by guarantees Personal guarantees are excluded 11

12 Credit policies and asset quality Substandard loans analysis including collateral Substandard Loans Total Coverage Ratio (%) +2% 147% 145% 147% 70% 13 Q3 14 Q3 61% 16% Cash coverage Ratio Personal Guarantees Real estate collateral (market value) Total coverage ratio Source: internal data. Collateral includes real estates and securities at market value. Real estate values represented by 1st and 2nd mortgages. Personal guarantees represent every other kind of collateral as bank guarantees, backing transactions and other credit commitments. Both collateral and personal guarantees are evaluated considering lowest value between credits and guarantee amount, in case of loans fully or partly covered by guarantees. 12

13 Credit policies and asset quality Doubtful loans sector analysis Gross amount Doubtful loans (Mln ) 4, , ,404 4, ,831 Total doubtful loans flow stable for the last three quarters 30/09/ /12/ /03/ /06/ /09/2014 Sector (ATECO)* Default Flow (mln ) % Total Flow Default rate (yearly) Households and families 6 0.8% 0.1% Manifacturing companies % 2.2% Constructions % 6.6% Wholesale and retail trades % 0.8% Professional, scientific activities % 5.5% Agricolture % 2.6% Horeca % 3.5% Other sectors % 4.5% All sectors % 3.3% * Source: internal data 13

14 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management and Net profit development New Commercial Model (CuRVa) AQR Annexes 14

15 Funding, liquidity and securities portfolio Direct deposits and ECB funding Quarterly trend (mln ) -6.7% Retail funding 22, % 20, % 20, % 20, % 21, % 19,029 19,223 30/09/ /12/ /03/ /06/ /09/2014 Including 2,140 mln to CCG Including 891 mln to CCG Including 267 mln to CCG Including 50 mln to CCG Including 257 mln to CCG 31/12/ /09/2014 Composition +2.2% 23% 25% +13.7% 77% 75% -1.1% 31/12/ /09/2014 Securities issued Due to customers mln 31/12/ /09/2014 Var.% Deposits % Time deposits 2,321 2, % Current accounts 11,849 12, % Wholesale bonds % Retail Bonds 3,848 3, % Securitizations Deposit certificates % Deposits CCG & CDP % Other % Source: internal data 15

16 Funding, liquidity and securities portfolio Bonds by maturities Retail bonds 2014 Q3 (Mln ) 948 Maturities mln Securitization s name 735 Issues 2014 Wholesale funding 2014 Q3 Outstanding Notional 30/09/2014 Maturities * 735* Issues/ Sales 2014** Sales Quadrivio Rmbs 2011 Issues Quadrivio SME 2014 * Outstanding carrying amount as at 30/09/2014 ** Net PP Net Placement Cost (DM) over EU3M Quadrivio RMBS 2011 S.r.l.-A1 304,084,264 EU3M bps Quadrivio RMBS 2011 S.r.l.-A2 180,000,000 EU3M + 116,7 bps Quadrivio SME 2014 S.r.l.-A1 1,296,057 EU3M bps Quadrivio SME 2014 S.r.l.-A2A 200,000,000 EU3M bps Quadrivio SME 2014 S.r.l.-A2B 110,000,000 EU3M bps Maturities* (Mln ) ECB funding Creval (Mln ) Wholesale Retail ,154 No wholesale bonds expiring in 2016 TLTRO Take up as of September 1 bln 2, * 1, * As at 4 November 2014 and net private placement LTRO TLTRO 16

17 Funding, liquidity and securities portfolio Liquidity position Loans to customers / Direct deposits* -8.7% 99.4% 100.5% 97.6%** 94.4%** 90.7% LCR as at 30 June 2014: 151% 30/09/ /12/ /03/ /06/ /09/2014 NSFR as at 30 June 2014: 118% *Net of CCG ** Included Non-current assets and disposal groups held for sale Short-term liquidity position November, 4 th 2014 ( /1,000) 1d 2d 3d 4d 5d 2w 3w 1m 2m 3m Net balance of cumulative expiring positions Counterbalancing capacity Net balance of overall liquidity ,569 5,547 5,453 5,553 5,503 5,011 5,068 5,000 4,799 6,000 5,480 5,467 5,458 5,345 5,350 4,683 4,412 4,593 4,402 4,358 1 month Liquidity Position ~ 16% of Total Assets, vs ~ 12% system average* * Source: Rapporto sulla stabilità finanziaria, Bank of Italy, May

18 Funding, liquidity and securities portfolio Securities portfolio Breakdown by accounting portfolio AFS 98.9% HFT 1.1% Mln 30/09/ /12/2013 HFT Portfolio AFS Portfolio 5,723 3,878 HTM Portfolio - - Breakdown of AFS portfolio Debt Instruments 97.8% Equity Instruments 1.5% OEIC Units 0.7% Current Average Duration of AFS Portfolio 2.01 Mln 30/09/ /12/2013 Debt Instruments 5,597 3,807 Equity Instruments OEIC Units Level 3 assets / Total assets 0.3% AFS reserve as at 30 September 14 mln (5 mln as at 30 June and - 36 mln as at 31 December 2013) AFS reserve on Govies, as at 30 September, ~ - 6 mln 18

19 Funding, liquidity and securities portfolio Indirect deposits analysis Quarterly trend (mln ) +9.1% 10, % 11, % 11, % 11, % 11,925 30/09/ /12/ /03/ /06/ /09/2014 Composition +6.9% 46% 48% 54% 52% 31/12/ /09/2014 AuM Administrated deposits +12.0% +2.4% Development of the strategic partnership with ANIMA SGR mln 31/12/ /09/2014 Var.% Funds & Sicav 1,519 1, % Custody 6,001 6, % AUM 2,095 2, % Insurance 1,544 1, % Total 11,159 11, % 19

20 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management and Net profit development New Commercial Model (CuRVa) AQR Annexes 20

21 Capital ratio Capital ratios evolution Capital ratios evolution phased-in calculation 8.8% 8.8% 12.2% ~ +300bps 12.2% 9.0% 9.0% 14.6% 11.6% 11.6% 11.8% 11.8% 15.1% Fully loaded calculation at September 30 th, 2014 (considering the SME supporting factor ): CET 1 Ratio 11.9% Tier 1 Ratio 11.9% Total capital ratio 15.1% Leverage ratio 31/12/2013* * Pro forma ex Basel 3 31/03/ /06/2014 Common Equity Tier 1 ratio Tier 1 ratio Total capital ratio 30/09/ September % Capital ratio 31/03/ /06/ /09/2014 TIER 1 (mln ) 1,598 2,024 2,029 RWA (mln ) 17,771 17,436 17,239 TIER 1 RATIO 9.0% 11.6% 11.8% TOTAL CAPITAL RATIO 12.2% 14.6% 15.1% Requirements 31/03/ /06/ /09/2014 Indicator 31/03/ /06/ /09/2014 Loan Risk weighted* 84.1% 82.2% 80.0% RWA /Assets 66.7% 64.8% 60.6% * RWA related to credit risk / Loans to customers at the end of the period Credit 91.8% 91.7% 91.2% CVA 0.2% 0.2% 0.2% Market 0.1% 0.1% 0.5% Operations 7.9% 8.0% 8.1% 21

22 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management and Net profit development New Commercial Model (CuRVa) AQR Annexes 22

23 Mln Revenues development Operating income development Chg % 1/1/ /9/2014 1/1/ /09/2013 NII Net fees Div. & profits on inv. in associated companies Trading income Other net income Operating income +5.8% +1.9% % % -12.0% +15.9% 80% of revenues from core business (NII + Fees) Net fees & comm. 28.2% Interest margin 51.7% Div. Invest & Trading 18.0% Other net income 2.1% 23

24 Revenues development Focus on interest margin Quarterly figures /1, % 123, , , , % +5.7% -5.1% -5.1% 114, Q Q Q Q Q3 YoY analysis Strong repricing tasks executed from September 2013, in particular on liability side 342, % 362,561 43,428 26,415-12,123 1/1/ /9/2013 1/1/ /9/2014 Volume Interest rate Total Annualized effetcs 24

25 Revenues development Focus on interest margin last three quarters Quarterly figures /1,000-8, , ,946 10,542 8, ,211 6,373 New repricing actions effective from the beginning of 2015, in particular on sight and time deposits 2014 Q Q Q3 Commercial NIM Carry Trade and Wholesale NIM Reduction in Commercial NIM mainly realted to lack of credit demand and correlated shortfall in gross volume Reduction in Commercial NIM also related to NPLs effect, mostly in the third quarter Basically stable the Commercial Spread in last quarters (slightly up from 2.49% to 2.55%) Carry trade NIM down in relation to the sharp decrease of Italian Government s yield 12% of NII derives from Carry contribution on Italian Government Bonds portfolio 25

26 Revenues development Focus on asset commercial spread Average monthly commercial spread ( ) +62 bps 2.55% 1.93% Repricing mainly on liability side, -63 bps from January 2013 Stable yield on commercial asset Further repricing actions on commercial deposits New time deposits < 100 bps New retail bonds < 150 bps Strong repricing on sight deposits planned for

27 Revenues development Focus on net fees Net fees quarterly trend /1, % 63,112 72,657 66,012 66, % -9.1% +0.7% -1.7% 65, Q Q Q Q Q3 Net fees breakdown YoY 62,099 48,236 38,921 44, % -12.5% -5.8% +14.9% +18.9% 54,348 45,423 44,704 53,353 1/1/ /9/2013 1/1/ /9/2014 Loans and others Current account 23.0% Payment and collection services Asset management, trading and consulting services 22.6% 27.5% 26.9% 27

28 Commission income Quarterly Net fees breakdown Good trend in traditional banking services (current accounts, payment services) Negative trend in loans fee due to lack of credit demand Remarkable trend in AUM and bancassurance, 440 mln net flow +183 mln net bancassurance inflows +256 mln net Aum inflows ( /1,000) Q Q Q Q Q Loans and others 17,711 18,434 18,203 20,780 19,375 Current account 15,502 15,164 14,757 17,036 16,565 Payment and collection services 14,973 14,964 14,767 16,878 13,233 Asset management, trading and consulting services 17,154 17,914 18,285 17,963 13,939 28

29 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management and Net profit development New Commercial Model (CuRVa) AQR Annexes 29

30 Cost management and Net profit development Operating result and cost/income development Mln Chg % 1/1/ /9/2014 1/1/ /09/2013 Operating income Personnel expenses Other admin. Expenses Amortization Net operating margin +15.9% -0.4% -2.0% -3.3% +46.8% Cost Income ratio Cost to asset ratio* Operating expenses -9.5% +0.01% -1.2% /1, % 54.9% 0.96% 0.97% 389, ,836 1/1/ /9/2013 1/1/ /9/2014 1/1/ /9/2013 1/1/ /9/2014 *Operating expenses annualized /(Direct deposits + Indirect deposits + Customer loans) 1/1/ /9/2013 1/1/ /9/

31 Cost management and Net profit development Personnel expenses and administrative expenses Personnel expenses Number of employees /1, % , ,059 4,333 4,330 1/1/ /9/2013 1/1/ /9/ /09/ /09/2014 Front to back Administrative expenses /1, % 71.3% -2.0% 133, ,021 30/09/ /09/2014 1/1/ /9/2013 1/1/ /9/

32 Cost management and Net profit development Net profit development Mln Net operating margin Value adjustments Provision & profit on disposals Net gains (losses) on sales of investments Income before tax Tax for the period Minority Net income +46.8% +67.8% n.s % -53.5% -67.7% +51.5% -28.4% Chg % 1/1/ /9/2014-1/1/ /9/

33 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management and Net profit development New Commercial Model (CuRVa) AQR Annexes 33

34 New Commercial Model (CuRVa) Main drivers of the new Commercial & Business Model Driver Customer Segmentation and portofolio management Branch Network & Organization Planned actions Implementation of new customer segmentation and portfolio management system in order to improve customer relationship throughout the new commercial business model Simplification and strengthening of the Branch network and creation of a unit dedicated to the restructuring and the development of the network Commercial Process Review of the business commercial process in order to increase commercial effectiveness Product, pricing and channels Rationalisation and focus on the product catalogue in order to satisfy the needs of the customers maintaining high levels of operational effectiveness Organisational structure Set up of three segment structures (corporate, private banking, retail) aimed to better understanding customer needs and to develop a dedicated and specialized value proposition Commercial & Business Reporting Set up of a new commercial reporting aimed to efficiently monitoring the commercial and operational performance Change management Strong effort on training, with focus on technical and managerial capabilities. Introduction of a incentive systems, linked to productivity and results Expected significant recovery in net commission and interest margin in 2015/

35 New Commercial Model (CuRVa) The new structure Board of directors Internal Audit CEO General Manager Planning and Control Human Resources Corporate Affairs Finanziaria San Giacomo COMMERCIAL CREDIT FINANCE AND OPERATIONS RISK AND CONTROLS Non performing branches - restructuring team Corporate Retail Private Pricing and budgeting Digital bank Global Assicurazioni Global Broker Territorial Areas CariFano Credito Siciliano 35

36 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management and Net profit development New Commercial Model (CuRVa) AQR Annexes 36

37 AQR Comprehensive Assessment results CET1 phased-in ratio (%, bps) From B2 to B3 AQR Stress test baseline scenario Stress test adverse scenario 9.80% 9.23% K actions Jan-Sept % +16 bps 8.79% +228bps +225 bps +228bps -127 bps -57 bps 5.79% Min 5.5% 7.52% 6.95% 7.52% +228bps -401 bps 3.51% CET1 B2 Dec13 CRR effect +228 bps CET1 CRR 1 Jan bps aucap AQR impact 8 bps Alba leasing 7 bps Warrant 1 bps Rev. Bankit AQR Adjusted CET1 Stress test baseline scenario impact CET1 post baseline scenario AQR Adjusted CET1 Adverse scenario impact CET1 post adverse scenario Note: As Creval calculated the ratio applying the standard methodology of RWAs for credit risk, it does not include the benefit deriving from the Advanced Internal Rating Based model validation, estimated in approx. 130 basis points, as pointed out with reference to the risk optimization and capital management actions outlined in the business plan. 37

38 AQR Comprehensive Assessment results AQR breakdown Asset class breakdown 117 mln: provisions recorded in 2014 on the portfolio selected in CFR Credit Risk RWA year end 2013 % of RWA selected Units of Measurement Mill. EUR in Phase 1 Total credit exposure , % , , , ,75 Sovereigns and Supranational non-governmental organisations 558,79 0% 0 0,00 0 0,00 0 0,00 0 0,00 Institutions 402,40 0% 0 0,00 0 0,00 0 0,00 0 0,00 Retail 4.441, % 0 0,00 0 0,00 0 0,00 0 0,00 thereof SME 2.578,71 0% 0 0,00 0 0,00 thereof Residential Real Estate (RRE) 1.264,61 0% 0 0,00 0 0,00 0 0,00 0 0,00 thereof Other Retail 598,14 100% 0 0,00 0 0,00 Corporates 9.830, % , , , ,75 Other Assets 1.324,16 0% 0 0,00 0 0,00 0 0,00 0 0,00 Portfolio selected in Phase 1 Adjustments to provisions on sampled files Basis Points Mill. EUR Adjustments to provisions due to projection of findings Basis Points Mill. EUR Adjustment to provisions due to collective provisioning review Basis Points Mill. EUR Impact on CET1 capital before any offsetting impact Basis Points Mill. EUR Additional information on portfolios with largest adjustments accounting for (at least) 30% of total banking book AQR adjustment: Asset Class Geography Large SME (non real estate) ITALY 2.823, , , , ,60 Real estate related ITALY 5.441, , ,24 0, ,32 Large corporates (non real estate) ITALY 2.264, ,59 2 3,24 0, ,83 38

39 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management and Net profit development AQR Annexes 39

40 Credit policies and asset quality Asset quality details (Mln ) 30/09/2014 Gross amount Impairment losses Carrying amount Coverage ratio Non-performing loans 2,352-1,301 1, % Substandard loans 1, , % Restructured loans % Past due exposures % Total impaired loans 4,831-1,622 3, % Performing loans 16, , % Total loans and receivables with customers 21,395-1,722 19,672 40

41 Credit policies and asset quality Doubtful loans Gross amount non-performing loans (Mln ) Gross amount substandard loans (Mln ) 1,878 1,923 2,013 2,200 2,352 1,240 1,357 1,487 1,588 1,577 30/09/ /12/ /03/ /06/ /09/ /09/ /12/ /03/ /06/ /09/2014 Gross amount past due loans (Mln ) Gross amount Doubtful loans (Mln ) , , ,404 4, ,831 30/09/ /12/ /03/ /06/ /09/ /09/ /12/ /03/ /06/ /09/

42 Annexes Doubtful loans analysis and cost of credit risk Cost of credit risk 1.19% 2.06% Retail banks 2.21% 1.48% 1.27% 01/ / / /2014 Credito Valtellinese Credito Siciliano Carifano Quarterly change in gross non-performing loans Quarterly change in gross substandard loans 62,389 45,079 89, , ,207 97, , , , Q Q Q Q Q Q Q Q Q2-10, Q3 Quarterly change in gross past due loans Quarterly change in gross Doubtful loans 121, Q3-169, Q Q1-69, Q2 67, Q3 292, Q3 26, Q4 272, Q1 203, Q2 224, Q3 42

43 Annexes Reclassified balance sheet the quarterly Assets 30/09/ /06/ /03/ /12/ /09/2013 Cash and cash equivalents 164, , , , ,095 Financial assets held for trading 65,195 64,382 81,054 84,996 90,740 Available-for-sale financial assets 5,723,495 3,622,110 3,542,841 3,877,889 5,528,728 Held-to-maturity investments ,131 Loans and receivables with banks 813,169 1,134, , ,056 1,264,756 Loans and receivables with customers 19,672,478 19,446,613 19,417,443 20,197,033 20,580,787 Equity Investments 196, , , , ,908 Property, equipment and investment property and intangible assets Non-current assets and disposal groups held for sale 802, , , , , , , Other assets 1,027,921 1,050,611 1,173, ,493 1,115,713 Total assets 28,465,029 26,900,395 26,625,313 27,198,703 29,944,972 Liabilities and Equity 30/09/ /06/ /03/ /12/ /09/2013 Due to banks 3,575,676 2,574,270 2,873,383 3,494,050 4,094,050 Direct funding from customers 21,116,472 20,424,825 20,328,876 20,657,592 22,639,044 Financial liabilities held for trading 4,115 3,318 9,613 7,723 6,458 Hedging derivatives 270, , , , ,856 Liabilities associated with disposal groups - 3,760 5, Other liabilities 906,795 1,100, , , ,512 Provisions for specific purpose 212, , , , ,844 Equity attributable to non-controlling interests 4,690 4,675 5,090 5,188 4,814 Equity 2,374,160 2,362,029 1,959,722 1,908,071 1,852,394 Total liabilities and equity 28,465,029 26,900,395 26,625,313 27,198,703 29,944,972 43

44 Annexes Reclassified consolidated income statement Income statement Q Q Q Q Q Net interest income Net fee and commission income Dividends and similar income Profit (loss) of equity-accounted investments Net trading and hedging income (expense) and profit (loss) on sales/repurchases Other operating net income Operating income Personnel expenses Other administrative expenses Depreciation/amortisation and net impairment losses on property, equipment and investment property and intangible assets Operating costs Operating profit Net impairment losses on loans and receivables and other financial assets Net accruals to provisions for risks and charges Net gains (losses) on sales of investments Pre-tax profit from continuing operations Income taxes Post-tax profit from continuing operations Profit for the period attributable to non-controlling interests Profit for the period 114, , , , ,593 65,340 66,476 66,012 72,657 63,112-1, ,705 3,213 4,443 1,364 5,729 21,223 59,322 30,565 27,069 7,443 4,598 4,620 5,230 2,028 4, , , , , ,881-76,292-74,911-74,856-70,362-76,122-42,502-46,186-42,333-35,135-44,018-9,334-9,278-9,144-8,748-9, , , , , ,915 83, , , ,312 74,966-94, , , ,882-59,198-1,033-3, ,731-1,070 14, ,181 2,426 11,656 4, ,879 2,267-8,641-2,778 2,670-10,330 4,693 3,015 1,644 2,831 7, , ,055 2, ,657 7,221 44

45 Disclaimer This document has been prepared by Credito Valtellinese for information purpose only and does not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect of such securities or other financial instruments. The information, opinions, estimates and forecasts contained herein have not been independently verified. They have been obtained from, are based upon, sources that company believes to be reliable but makes no representations (either express or implied) or warranty on their completeness, timeliness or accuracy. The document may contain forward-looking statements, which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to significant risks and uncertainties, many of which are outside the company s control. There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Presentation are provided as at the date hereof and are subject to change without notice. Pursuant the consolidated law on financial intermediation of 24 February 1998 (article 154-bis, paragraph 2), Simona Orietti, in her capacity as manager in charge of financial reporting declares that the accounting information contained in this Presentation reflects the group s documented results, financial accounts and accounting records. 45

46 Consolidated Results as at September 30, th November 2014 Miro Fiordi CEO, Credito Valtellinese 46