An introduction to the UBI Banca Group. July, 2014

Transcription

1 An introduction to the UBI Banca Group July, 2014

2 Disclaimer This document has been prepared by Unione di Banche Italiane Scpa ( UBI ) for informational purposes only. It is not permitted to publish, transmit or otherwise reproduce this document, in whole or in part, in any format, to any third party without the express written consent of UBI and it is not permitted to alter, manipulate, obscure or take out of context any information set out in the document. The information, opinions, estimates and forecasts contained herein have not been independently verified and are subject to change without notice. They have been obtained from, or are based upon, sources we believe to be reliable but UBI makes no representation (either expressed or implied) or warranty on their completeness, timeliness or accuracy. Nothing contained in this document or expressed during the presentation constitutes financial, legal, tax or other advice, nor should any investment or any other decision be solely based on this document. This document does not constitute a solicitation, offer, invitation or recommendation to purchase, subscribe or sell for any investment instruments, to effect any transaction, or to conclude any legal act of any kind whatsoever. This document may contain statements that are forward-looking: such statements are based upon the current beliefs and expectations of UBI and are subject to significant risks and uncertainties. These risks and uncertainties, many of which are outside the control of UBI, could cause the results of UBI to differ materially from those set forth in such forward looking statements. Under no circumstances will UBI or its affiliates, representatives, directors, officers and employees have any liability whatsoever (in negligence or otherwise) for any loss or damage howsoever arising from any use of this document or its contents or otherwise arising in connection with the document or the above mentioned presentation. For further information about the UBI Group, please refer to publicly available information, including Annual, Quarterly and Interim Reports. By receiving this document you agree to be bound by the foregoing limitations. Please be informed that some of the managers of UBI involved in the drawing up and in the presentation of data contained in this document either participated in a stock option plan and were therefore assigned stock of the company or possess stock of the bank otherwise acquired. The disclosure relating to shareholdings of top management is available in the half year and the annual reports. Methodology All data are as at 31st March 2014 unless otherwise stated. Page 1

3 Agenda The UBI Banca Group Background UBI Banca and its Peers UBI Banca s profile in a snapshot The Group Structure Presence in Italy The UBI Banca International Network Contacts Annexes Page 2

4 Background Unione di Banche Italiane Scpa ( UBI Banca ) was formed following the merger of the BPU Banca and Banca Lombarda e Piemontese Groups (1st April 2007) The history of UBI Banca is marked by a succession of mergers which have led banks with strong roots in local communities to become the significant reality that exists today and employs approximately 18,300 people. Birth of the Banca Mutua Popolare della Città e Provincia di Bergamo, subsequently renamed Banca Popolare di Bergamo (BPB) Birth of the Credito Agrario Bresciano (CAB) Page 3 Birth of the Società per la Stagionatura e l Assaggio delle Sete ed Affini subsequently renamed Banca Popolare Commercio e Industria (BPCI) Birth of the Banca San Paolo di Brescia (BSPB) Merger of BPB and Credito Varesino (BPB-CV) BSPB acquires Banca di Valle Camonica (BVC) Acquisition of Banca Popolare di Ancona (BPA) by BPB-CV. Birth of the BPB-CV Group Merger of CAB and BSPB with the creation of Banca Lombarda as parent company and contribution of branch network of CAB and BSPB to Banco di Brescia 0 Acquisition of Banca Carime by BPCI 2001 Birth of the BPU Banca Group from the integration of BPB-CV and BPCI Acquisition of Banca Regionale Europea * by Banca Lombarda. The Group takes the name of Banca Lombarda e Piemontese Group * Banca Regionale Europea was created in 1994 following the merger between Cassa di Risparmio di Cuneo and Banca del Monte di Lombardia 1st April 2007 Birth of UBI Banca following the merger of the BPU Banca Group and the Banca Lombarda e Piemontese Group

5 Background UBI Banca is a popular bank with the legal status of a joint stock co-operative company. According to its by-laws, each registered shareholder has the right to cast one vote (to become a registered shareholder it is necessary to possess and hold at least 250 shares). There is therefore no reference shareholder*. UBI Banca is the only listed bank in the Group No one may hold shares amounting to more than 1% of the share capital (with the exception of collective investment companies) The said principles are equally applied to listed and nonlisted popular banks On the basis of the latest update of the shareholders register, registered shareholders number 77,500. If non registered shareholders are also considered, total shareholders (registered and unregistered) number above 151,000. UBI Banca s governance model is based on a dualistic system. Under this dualistic governance system a shareholders meeting appoints a Supervisory Board (strategic policy-making and supervision), which then appoints a Management Board (day by day management of the company) 37.4 Market Capitalisation as at 27th June 2014 (EUR bln) Source: Il Sole 24ore Italian Financial Newspaper dated 28th June ~7.5** ** Market capitalization calculated on last price of rights on 20th June 2014 (capital increase for 5 bln to be completed) Page * A distinction is made between registered shareholders, a status acquired following acceptance decided by the Management Board and enrolment in the shareholders register with the right to participate in shareholders meetings, and non registered shareholders whose rights are financial only. For the purposes 4 of acceptance as a registered shareholder, certificates testifying to the ownership of at least 250 shares must be presented, while should they no longer be held, this shall result in the loss of registered shareholder status in accordance with the law 2.2

6 UBI Banca and its Peers Total Assets as at 31 st March 2014 (EUR bln) Customer Loans as at 31 st March 2014 (EUR bln) th th Unicredit Group Intesa San Paolo Monte dei Paschi di Siena Banco Popolare UBI Banca Gruppo BPER Banca Popolare di Milano Unicredit Group Intesa San Paolo Monte dei Paschi di Siena UBI Banca Banco Popolare Gruppo BPER Banca Popolare di Milano Total Direct Funding as at 31 st March 2014 (EUR bln) 560 No. of Branches as at 31 st March ,921 6, th ,373 1,990 5th 1,730 1, Unicredit Group Intesa San Paolo Monte dei Paschi di Siena UBI Banca Banco Popolare Gruppo BPER Banca Popolare di Milano Unicredit Group Intesa San Paolo Monte dei Paschi di Siena Banco Popolare UBI Banca Gruppo BPER Banca Popolare di Milano Page 5 Source: Press releases.

7 UBI Banca s profile in a snapshot: predominant retail business, solid capital base and low risk profile Strong competitive positioning 1st Italian cooperative banking Group by market capitalization EUR 87.1 bn customer lending and EUR 90.8 bn direct funding (loan/deposit ratio: 95.9%) As at Dec 2013, 81.6% of loans to customers were granted in Northern Italy, 10.1% in Central Italy and 8.3% in Southern Italy, while 72.6% of customer deposits came from Northern Italy, 12.4% from Central Italy and 15% from Southern Italy* Capital ratios as at 31 March 2014: CET 1 ratio (phased in):12.2%; CET 1 ratio (fully loaded) under Basel 3 rules: 11.2% Solid Capital and Balance Sheet Position Low Leverage ratio (tangible assets / (tangible equity+non-controlling interests+net result for the period)): 14.1X. Applying Basel 3 requirements, leverage ratio (tier one capital / (on- and off-balance-sheet assets)) stands at 5.16% as at 31 Dec 2013 Sound Liquidity position: The Group already complies with the Net stable Funding Ratio and Liquidity Coverage Ratio as per Basel 3 requirements (also net of LTRO) Good Asset Quality Good asset quality compared to the Italian banking system (Net NPLs ( sofferenze ) /Total Loans 4.07%; Italian Banking system 4.27%) Annualised cost of credit of 91 bps of total loans Focus on traditional banking activities: Customer loans/total assets at 70.2% Low Risk Profile Funding mainly from own customer base (approx. 80%); limited recourse to institutional markets (MTNs, CBs, CP, CD and Preference shares altogether represent approx. 16% of total funding) Financial assets/total assets: 18.7%. Italian Govies represent 17.0% of total assets Page 6 Figures as at 31st March 2014 unless otherwise stated * Data referred to banking perimeter only.

8 The Group Structure UBI BANCA provides management, co-ordination, control and supply of centralized services to the network banks (single IT System, centralised risk management, centralised finance and treasury, commercial coordination, credit coordination, logistics, purchasing, on line banking, etc...) 8 DOMESTIC NETWORK BANKS MAIN PRODUCT COMPANIES 353 branches % 316 branches % ASSET MANAGEMENT UBI Pramerica (partnership with Prudential US) Northern Italy Central Italy 212 branches 244+3* branches 66 branches 213 branches 75.08% (1) 74.75% (2) 82.96% (3) 93.01% (4) FACTORING LEASING UBI Factor UBI Leasing NON-LIFE BANCASSURANCE UBI Assicurazioni (partnership with BNP Paribas/Ageas) LIFE BANCASSURANCE * Aviva Vita (partnership with Aviva) Aviva Assic. Vita (partnership with Aviva) Lombarda Vita (partnership with Cattolica) ON LINE TRADING IW Bank Southern Italy 242 branches 21 branches 677 fin. advisors 92.84% (5) % *Redefinition of Aviva partnership and minorities structure announced on 16 April 2014, expected to be completed within end 2014 (see related press release) Ownership Information updated as at 31 March 2014 N. of branches updated as at May 2014; * indicates branches outside Italy Page 7 1) moreover, 8.69% of capital held by Aviva, 16.23% of capital held by Fondazione Banca del Monte di Lombardia 2) further 24.90% of Banca Regionale Europea capital held by Fondazione Cassa di Risparmio di Cuneo and the rest by minority shareholders 3) moreover, 6.38% of capital held by Cattolica Assicurazioni and the rest by minority shareholders 4) moreover, 6.49% of capital held by Aviva and the rest by minority shareholders 5) moreover, 7.15% of capital held by Aviva and the rest by minority shareholders

9 Presence in Italy Introduction to the UBI Banca Group: Predominant Retail Business and Strong Northern Italian Franchise Approx. 3.7 million clients, mainly retail 1,673 branches, of which 795 in Lombardy (which generates over 20% of Italian GDP) Market share in terms of branches above 20% in some of the richest Provinces such as Bergamo, Brescia and Varese Market Shares* % Branches Current accounts & deposits Loans Bergamo Brescia Varese Cuneo National market share of 5.4% in terms of branches 1,673 branches in Italy + 6 branches abroad (as at May 2014) * Market shares calculated as at 31 st Dec Page 8

10 Agenda UBI Banca International Network International Network Presence in the world Page 9

11 International Network COMMERCIAL BANKS FOREIGN BRANCHES SUBSIDIARIES FOREIGN BRANCHES REPRESENTATIVE OFFICES MENTON, NICE AND ANTIBES (Banca Regionale Europea) KRAKOW (UBI Factor) MOSCOW SAO PAULO SHANGHAI (Zhong Ou Asset Management Company) MUMBAI SHANGHAI HONG KONG VIENNA (Business Consultant) Head office in Luxembourg FOREIGN BANKS SUBSIDIARIES BRANCHES UBI TRUSTEE SA (Luxembourg) LUXEMBOURG MADRID MUNICH Page 10

12 Presence in the world Munich UBI Banca International Branch Krakow UBI Factor Branch Vienna Business Consultant Luxembourg UBI Banca International UBI Trustee SA Antibes, Menton, Nice Banca Regionale Europea Branches Moscow Representative Office Shanghai Representative Office Shanghai Zhong Ou Asset Management Company Co. Ltd* Madrid UBI Banca International Branch São Paulo Representative Office Mumbai Representative Office Hong Kong Representative Office Page 11 * Joint-venture in which UBI Banca holds 35% of the total share. (Other partners: Guodu Securities Co. Ltd. holds 30% of the total share, Beijing Baijun Investment Co., Ltd holds 30% of the total share and WinnerKey Investment Co. Ltd holds 5% of the total share). At 31 st December 2013, the ex Lombarda China Fund Management Co., actives in the management of retail funds and of IPO, handled an AUM of 14.5 billions of Rmb (about 1.7 billions of euro).

13 Agenda Contacts UBI Banca Correspondent Banking Representative Offices Contacts Page 12

14 UBI Banca Sergio Passoni Head of Global Transaction and Operations Isabella Moavero - Head of Correspondent Banking and Representative Offices Correspondent Banking - correspondent.banking@ubibanca.it Alistair Newell Area Manager alistair.robert.newell@ubibanca.it Marco Camozzi Area Manager marco.camozzi@ubibanca.it Lorenzo Tassini Area Manager lorenzo.tassini@ubibanca.it Ernst Rolf Hartmann Area Manager ernst.rolf.hartmann@ubibanca.it BANGLADESH INDIA MALDIVES PAKISTAN SOUTH EAST EUROPE Western SRI LANKA Europe: UK BALTIC COUNTRIES IRELAND SCANDINAVIA CYPRUS ICELAND GREECE Western Europe: MALTA CYPRUS GREECE IRELAND MALTA UK AUSTRALASIA ASIA NORTH AMERICA RUSSIA AND CIS COUNTRIES Western Europe: AUSTRIA GERMANY SWITZERLAND AFRICA MIDDLE EAST TURKEY LATIN AMERICA CARIBBEAN EASTERN EUROPE ISRAEL Western Europe: PORTUGAL SPAIN BELGIUM FRANCE LUXEMBOURG NETHERLANDS VATICAN CITY MONTE-CARLO Page 13

15 Representative Offices Contacts HONG KONG MUMBAI SHANGHAI Mr Andrea Croci Suite 2911, Tower Two, Times Square 1, Matheson St. - Causeway Bay Hong Kong - S.A.R. Tel Fax Ms Rajeshree Balsari mumbai@ubibanca.com 92 Mittal Chambers, 9 th Floor, Nariman Point, Mumbai - India Tel Fax Ms Lu Bo office@ubibanca.sh.cn The Center Suite , Changle Road Shanghai China Tel Fax MOSCOW Mr Ferdinando Pelazzo moscow@ubibanca.com 10, Nikolskaya str., 4 th floor, Business Centre Nikolskaya Plaza Moscow - Russia Tel Fax SAO PAULO Mr Isidoro Guerrerio saopaulo@ubibanca.com Al. Ministro Rocha Azevedo, 456 Ed. Jaù - 4 And.Cj.402 CEP São Paulo - Brazil Tel Fax VIENNA (Business Consultant) Ms Annick Stockert annick.stockert@esterni.ubibanca.it Seilerstätte 16/ Vienna Austria Tel Fax Page 14

16 Agenda Annex Foreign Banks Product Companies Group Results Group BIC codes Page 15

17 Foreign Banks Qualified and specific services offered to Corporate customers: establishment of international companies trustee operations and corporate financing payment services corporate and syndicated loans issuance of bonds and international guarantees cash pooling factoring Services offered to Private customers: wealth management and investment advisory; heritage and personal wealth planning with tailor made financial engineering solutions; investment Funds and Sicav; financial and asset planning with tailored engineering solutions; term deposits in all major currencies,; trading and safekeeping of securities on all the major stock and bond markets; spot and forward foreign exchange transactions; services for the establishment of Trust Companies through UBI Trustee SA based in Luxembourg. Leasing UBI Leasing offers its clients financing for asset acquisition such as: instrumental leasing, real estate leasing, car leasing, aero naval leasing as well as specific insurance and accessory services. 7.4 bln EUR in net Loans to Customers Page 16 Data as at

18 Product Companies Factoring UBI Factor offers highly specialized factoring services to companies and public administrations. The company is based in Milan with a capillary structure across the national territory and is present also in Poland with its Krakow subsidiary. Since 1984 UBI Factor is part of the Factors Chain International network which allows it to retain a presence in more than 75 countries and with more than 270 foreign partners. 7.6 bln EUR Turnover; 2.3 bln EUR net Loans to Customers Asset Management Joint Venture with Prudential US UBI Pramerica develops, manages, markets and distributes a wide range of financial products and services dedicated to private customers and institutions. It has been awarded various international prizes bln EUR in Assets Under Management Online Trading IW Bank is a market leader in online trading in Italy with a strategy based on three fundamental objectives: continuous product/service innovation, constant development of technological platforms, professional support for the customer. 6.8 mln of transactions executed over the period (FY13) Page 17 Data as at

19 UBI Banca Main Consolidated figures Main balance sheet figures Dec 2013 Mar 14 Figures in millions of euro Loans to customers 88,421 87,095 Direct funding 92,604 90,844 of which: Direct Funding from Ordinary Customers (current accounts + retail bonds) 74,660 74,920 of which: Direct Funding from Institutional Customers 17,944 15,924 10,888 11, , ,983 Loans to customers / total assets 71.2% 70.2% Indirect funding (AuM + AuC) 71,652 73,392 of which: AUM 39,554 39,796 of which: AUC 32,098 33,596 Net Interbank exposure (not included in Direct Funding mainly LTRO) Total assets Page 19 Page 20 Lending volumes trends vs. Dec 2013 show a decrease of 1.5% reflecting weakness in GDP and low demand Net of volatile CCG (Cassa di Compensazione e Garanzia, Italian Clearing House) repos, Direct Funding grows by 2.7% vs Dec. 13, driven by bond issuances both to ordinary customers of the Network Banks and to institutional investors As at 31 March 2014, Loan to Deposit Ratio: 95.9% Liquidity buffer: Eligible Assets as at 5th May 2014: 33.2 bln (of which 19.6 unencumbered representing approx. 46% of Short Term Deposits

20 1Q14: improving profitability and cost control confirmed * mln Page 20 * Loan loss provisions at mln euro in 1Q14. In terms of cost of credit, they correspond to 91 bps for the UBI Banca Group vs. an average 108 bps for the other 6 major Italian banking Groups reported in slide n 5

21 Group BIC codes BEPOIT21 BCABIT21 BREUITM1 BLOPIT22 POCIITM1 BPAMIT31 CARMIT31 BVCAIT21 BLPIIT21 CABILULL UBIBESMM BEPODEMM Madrid Branch Munich Branch BIC ACTIVE BIC NON ACTIVE Page 21