UBS Warburg Italian Banking & Insurance Conference

Transcription

1 1 UBS Warburg Italian Banking & Insurance Conference Mr Alfonso Iozzo,, CEO Naples, 7 February AGENDA Q GROUP RESULTS STRATEGIC FOCUS ON RETAIL BANKING BANCO DI NAPOLI INTEGRATION AND BRANCH NETWORK REORGANISATION

2 2002 NINE-MONTH OPERATING RESULTS Deposit margin Mark down Sanpaolo IMI Group 9-months 01 Mark down Sanpaolo IMI Group 9-months 02 NET INTEREST INCOME 2, % 2,813 3 euro m gen feb mar apr mag giu lug ago set 9-months months 2002 Pro forma Assets under management % FEE INCOME % /12/ /09/ months months NINE-MONTH OPERATING RESULTS 4 SELECTIVE LOAN GROWTH IN FAVOUR OF SME AND LOW RISK BORROWERS Loan growth by business unit (y-o-y) % growth rate Absolute increase (m. Euro) 22,0% 21,1% Consumer Banking Leasing ,4% Banca OPI ,5% 4,1% Cardine Sanpaolo Network ,1% -6,9% -9,0% Banco di Napoli Foreign Network Others Wholesale ,2% Large corporate -1420

3 ASSET QUALITY 5 euro m 1,312 NET NPL S 1,400 1,431 30/09/01 31/12/01 30/09/02 NET WATCHLIST (*) 30/09/02 NPL ratio 1.1% Net Watchlist ratio 1.2% General Reserve: 88 basis points of performing loan portfolio NPL coverage ratio: 71.4% Watchlist coverage ratio: 25.2% PORTFOLIO RATING PROFILE 26,4%26,1% 22,0% 1,363 1,462 1,478 14,8% 7,1% 1,9% 1,7% euro m 30/09/01 31/12/ /09/2002 (*) Includes watchlist, restructured and in course of restructuring loans. AAA AA A BBB BB B CCC Core capital ratio: 6.5% Tier 1 ratio: 7.3% Total capital ratio: 10.2% 2002 NINE-MONTH OPERATING RESULTS Total customer financial assets Stocks 357, , % 138, ,164 84,593 87, % +3.2% Managed Savings Administered Savings TFA net inflows from 31/12/01 Net Inflows 7,018 euro m 2,738 2,242 2, , , % Direct Deposits euro m 31/12/ /09/2002 Life insurance 25,443 Stock Reserves +27% 4,034 euro m 20,039 4,189 3,771 3,511 6,496 4,206 10,724 8,551 31/12/01 30/09/02 Third party Index Linked Unit Linked Traditional As at 30/09/02 Direct Deposits Administered Savings (*) Managed Savings (*) Excluding performance effect Gross Premia (*) % 42% 11% YTD 6,577 euro m Y/Y % -16.3% 47% % (*) Includes Sanpaolo Vita, Sanpaolo Life and Fideuram Vita

4 2002 NINE-MONTH OPERATING RESULTS 7 FEE INCOME BREAKDOWN euro m 2, , % +11.0% +5.6% +1.7% Other services (including tax collection) Deposit and current accounts Collection and payment services Loans and guarantees 9-months 01 9-months % Asset Management, Dealing and advisory services Pro forma 2002 NINE-MONTH OPERATING RESULTS 8 ADMINISTRATIVE COSTS 3, % 3,424 2, % 2,111 Personnel expenses Other administrativ e costs euro m % 9-months months 2002 Pro forma

5 9 AGENDA Q GROUP RESULTS STRATEGIC FOCUS ON RETAIL BANKING BANCO DI NAPOLI INTEGRATION AND BRANCH NETWORK REORGANISATION FOCUS ON DOMESTIC RETAIL BANKING 10 complete and strengthen the branch distribution network re-address the loan policy in favour of SME, de-emphasising corporate and international lending maintain a strong focus on household savings increase efficiency and integrate the acquired or merged banks

6 EXPAND DISTRIBUTION 11 Branch banking network ,292 branches 4 million clients (as of 31/12/99) ,956 branches 6.5 million clients (as of 31/12/02) REFOCUSING THE LOAN BOOK 12 As at 31/12/1999 Divisional breakdown 15% Retail As at 30/06/ % 43% 13% International Public Sector 52% 12% 15% 14% Large Italian Corporate SME 7% 11% Asia +6.5% Concentration(*) USA -28.0% Europe First 15 borrowers First 10 borrowers 16,0% 13,4% 9,7% 15,2% 12,4% 8,5% 13,3% 10,8% 7,7% 12,8% 10,4% 6,7% +33.9% 31/12/ /09/2002 First 5 borrowers (*) In terms of loans, commitments and guarantees on net customer loans

7 COLLECTING AND MANAGING HOUSEHOLD SAVINGS 13 AUM Mutual funds market share Eptaconsors 2.4% Eptaconsors % 18.9% 18.8% 18.8% Life Reserves New production market share ,279 euro/mil 8.92% 09/2002 5,762 euro/mil 18.11% Embedded value (30/06/2002) : 1,641 Euro/mil SEARCH OF EFFICIENCY AND RATIONALISATION 14 Employees turnover 46,240-1,829 +1, , 083-3,273 +2, ,807 Headcount at year-end Gross reduction New recruitments Change of perimeter 31/12/00 31/12/01 31/12/02 46,240 45,807 Group employees -0.5% Other Companies +46.8% Cardine -1.5% Banco di Napoli Sanpaolo IMI S.p.A % -1.4% Domestic banking -7.3% headcount 2000 E 2002

8 15 AGENDA Q GROUP RESULTS STRATEGIC FOCUS ON RETAIL BANKING BANCO DI NAPOLI INTEGRATION AND BRANCH NETWORK REORGANISATION SOUTHERN ITALY: MACRO-ECONOMIC TRENDS (P) 2003(E) (growh rates) Italy South Italy South Italy South GDP Internal demand Employment Unemployment (ratio) (P) (growh rates) Italy South Italy South Italy South Banking loans Banking funding Current accounts Financial Assets Source: Prometeia

9 SOUTHERN ITALY - MARKET OPPORTUNITIES: CREDIT MARKET 17 market size 2002 growth rates bn. Euro % of nat. mkt. Total lending of which: Companies (>20 employees) Companies (<20 employees) Family business Households of which Mortgages Source: Prometeia SOUTHERN ITALY - MARKET OPPORTUNITIES: FINANCIAL WEALTH 18 market size 2002 growth rates bn. Euro % of nat. mkt. Household financial assets composition: - banking deposits postal deposits bonds mutual funds Life Insurance reserves Other Banking direct funding Banking custodian funds Managed savings Life premia Source: Prometeia

10 BANCO DI NAPOLI ACQUISITION: STRATEGIC OBJECTIVES (2000) 19 Acquisition industrial plan ( ) guidelines: Re-focus BdN business towards retail & SME Rationalise the bank and increase efficiency Focus on financial products & increase fee revenues Maintain interest income in core business with strict control on credit risk BANCO DI NAPOLI: REFOCUS AND RATIONALISATION Re-focus the business: Re-sizing the cost base: headcount 1, sell of foreign branches reduction of corporate loans 71 sell of subsidiaries (Dataitalia, Soldan Fumagalli) 10, /12/00 Funded redundancies Divested businesses Infragroup transfers Other net 31/12/2002 Trend in operating costs: Dec 2001/Dec % 9 months 2002 /9 months % Personnel expenses Other administrative costs Indirect duties and taxes Personnel expenses Other administrative costs Indirect duties and taxes months months 2002

11 BANCO DI NAPOLI: PRESSURE ON REVENUES Asset under management: Fee income: 21 6, , ,443 5,518 9,781 1,393 1,300 7,088 CAGR +21% + 43% -9.9% % Life reserves Private portfolios Mutual funds % 31/12/00 30/09/ /09/ months months 2002 Re-focus and downsizing of loan book: Net interest income: 15,689 14,382 13,654 CAGR 7.2% % 9-months months /12/00 30/09/01 30/09/02 BANCO DI NAPOLI MERGER: GUIDELINES 22 Post-merger guidelines: Streamline Banco di Napoli headquarters Single branch network and single operating system Branch specialisation according to customer segments, locally coordinated Rationalisation of area management structures

12 NETWORK INTEGRATION AND DISTRIBUTION MODEL IN THE SOUTH Group presence in Southern Italy Turin H.Q. 23 local franchise area coordination marketing & strategy Branches: Retail & S.B. Retail market Private banking Area Manager Sanpaolo Network Mid-corporate Mid-corp. market RATIONALISATION OF AREA MANAGEMENT STRUCTURES 24 Banco di Napoli branch management areas: 11 areas of which 8 in continental South Sanpaolo + 2 areas = Post merger : 4 areas

13 NATIONAL DISTRIBUTION MODEL Strategic guidelines Commercial policies Credit policies Control Systems HR management Parent 25 Branch local co-ordination Sanpaolo & former B.d.N. Areas Cardine banks Front office: branches Market segmentation Brand differentiation Midcorporate Retail & small business Private banking TIMING OF THE INTEGRATION PROCESS 26 STEPS: DEADLINES: Banco di Napoli Merger 31/12/02 Rationalisation of SP & BdN Areas 31/12/02 Former BdN branches on SP system 03/06/03 Integration of Cardine Finanziaria 31/12/03 Former Cardine banks on SP system 01/07/04