Consolidated Results as at 31 March May Miro Fiordi CEO, Credito Valtellinese

Transcription

1 Consolidated Results as at 31 March May 2013 Miro Fiordi CEO, Credito Valtellinese

2 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management Net profit development 2

3 Executive summary Significant improvement in coverage ratios YoY. Cash coverage ratio NPLs ~ 63%, very strong level Significant improvement also in substandard coverage, ~ 16%, ~ +6% YoY Liquidity position still improving, with an overall net liquidity balance - on 3 months basis around 4 billions Euro ; Loan to Deposit Ratio 93%, -12% YoY LCR > 100%, NSFR ~ 100% (QIS exercise as at 31 December 2012). Capital position strenghtening YoY, with a Core Tier 1 Capital Ratio at 8.2%, due to the strategic operations and RWA optimization activities implemented (8.33% proforma internal data, including effects related to the loss coverage with evaluation reserves) Very strong cost actions, ~ -6,6 mln operating costs YoY, cost to asset ratio -17 bps YoY Operating profit -10% YoY, with a strong declining in market rates (average Euribor -86 bps YoY) 3

4 Consolidated Balance Sheet Data 31 March March 2012 (mil ) - 5.8% + 6.7% 22,792 21,467 21,625 23, % + 2.6% 33,164 34,018 11,540 10,944 Loans to customers Direct deposits Indirect deposits Total deposits 31/03/ /03/2013 Balance sheet structure 31/03/ /03/2012 Indirect deposits from customers / Total deposits 32.2% 34.8% Direct deposits from customers / Total liabilities 75.1% 73.5% Customer loans / Direct deposits from customers 93.0% 105.4% Customer loans / Total assets 69.9% 77.5% 4

5 Strengthening Customer base + 2.8% + 1.0% + 0.4% + 0.5% + 0.8% 908, , , , ,514 31/03/ /06/ /09/ /12/ /03/2013 Customer base growth:~ +25,700 YoY Customer satisfaction level (ratings 7+8) = 70% (vs. 60% Italian banks average)* Brand image (ratings 7+8) confidence rate: 74% (Italian banks average 64%)* Cross selling ~ 4.3 Retention rate ~ 98% Commercial results as at Current accounts ~ + 5,800 Debt Cards ~ + 11,000 New car insurance ~ 1,200 Compass new loans ~ 16 mln Turnover Factoring Ifis ~ 32 mln (*) Customer Satisfaction survey for retail segment Eurisko ABI

6 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management Net profit development 6

7 Loans to customers analysis Quarterly trend (mil ) - 5.8% - 1.7% + 0.1% - 1.9% - 2.5% 22,792 22,397 22,430 22,008 21,467 New mortgages ~ 185 mln New unsecured loans ~ 55 mln New leasing ~ 40 mln ~ +280 mln new loans Commercial Loans ~ -2% YoY 31/03/ /06/ /09/ /12/ /03/2013 including 584 mil to CCG including 106 mil to CCG including 317 mil to CCG including 105 mil to CCG including 68 mil to CCG Gross loans by technical classification Financial leasing 6.1% Personal loans 3.1% Mortgages 46.0% Npls 7.3% Current accounts 29.8% Other operations 7.7% Financial companies 1.7% Gross loans by business segment Foreign operators and other operators 1.9% Consumer households 17.6% Non-financial companies and personal businesses 78.8% Source: internal data 7

8 Loan portfolio diversification Gross loan book breakdown by geography Source: internal data ~ 57% 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 ) ~ 262k Loan to value ratio ~ 46% of residential mortgages Average EUR 83,000 per loan CONCENTRATION - banking system comparison CREVAL GROUP Banking system * Top 0.5% borrowers 44% 56% Top 1% borrowers 55% 62% LOAN CONCENTRATION % TOTAL LOANS Top 20 exposures 5.3% Top 50 exposures 9.4% Top 100 exposures 13.9% (*) Banking system data as at 31 December

9 Asset quality Credit risk ( /millions) 31/03/ /12/2012 Chg% 31/03/2012 Net non-performing loans Other net doubtful loans 1,746 1, ,411 Total net doubtful loans 2,433 2,100 2,010 Net non-performing loans / Loans to customers 3.2% 2.8% 2.6% Other net doubtful loans / Loans to customers 8.1% 6.7% 6.2% Non-performing loan coverage 58.9% 59.7% 56.0% Doubtful loan coverage 33.1% 35.2% 30.4% Cost of credit risk * 1.05% 1.61% 0.67% (*) Calculated as the ratio between net value adjustments due to deterioration of loans and year-end loans. Total coverage considering write off on existing NPL ~ 63%* * Source: internal data Category Average aging (months) as at March 2013 Substandard 9.9 Restructured 15.9 Ratio Net non-performing loans / Loans to customers Creval Group Banking system* 3.2% 3.4% Non-performing loan coverage 58.9% 49.3% (*) Source: ABI monthly outlook, March

10 Bankruptcy in Italy Bankruptcy trend in Italy per year % % + 7.8% + 2.4% 9,383 11,286 12,169 12, Altre 22.9% Lombardia 23.3% Bankruptcy trend in Italy first quarter % % + 5.8% + 7.5% % Trentino Alto Adige 1.0% Umbria 1.5% Marche 3.7% Aosta 0.1% Sicilia 5.9% Piemonte 6.2% Toscana 7.7% Emilia Romagna 8.5% Lazio 10.6% Veneto 8.6% 2,202 2,825 2,988 3,212 3, Q Q Q Q Q1 Source: CRIBIS D&B 10

11 NPL analysis including collateral NPL - Total Coverage Ratio 44% 4% 107% 59% Cash Coverage Ratio 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 Substandard loans analysis including collateral Substandard Loans - Total Coverage Ratio 65% 139% 58% 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 Doubtful loans analysis and cost of credit risk Loans Value Adjustments 0.67% 1.05% Legal entity 1.26% 0.61% 0.70% 0.44% I trim 2012 I trim 2013 Credito Valtellinese Credito Siciliano Carifano Mediocreval Quarterly change in non-performing loans Quarterly change in substandard loans 96, , ,152 99, ,288 46,494 32,560 32,965 19,240 40, Q Q Q Q Q1 Quarterly change in past due loans 2012 Q Q Q Q Q1 Quarterly change in Doubtful loans 211, , , , , , ,258-56, , Q Q Q Q Q1-89, Q Q Q Q Q1 13

14 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management Net profit development 14

15 Direct deposits analysis Quarterly trend ( mil) + 6.7% + 0.5% + 4.5% - 2.7% + 4.4% 21,625 21,737 22,723 22,103 23,075 CHANGE YTD: Wholesale bonds ~ +150 mln Other wholesale funding ~ +100 mln Net commercial funding ~ +750 mln 31/03/ /06/ /09/ /12/ /03/2013 including 419 mil from CCG Including mil from CCG Including 488 mil from CCG Including 940 mil from CCG Composition + 6.7% 29% -6.8% 25% 71% +12.2% 75% Bond wholesale 7.1% Current accounts 50.6% Deposits 2.5% Time deposit 16.1% 31/03/ /03/2013 Securities issued Due to customers Retail bond 17.5% Other 5.2% Repo 1.0% Source: internal data 15

16 Bonds by maturities Retail bonds 2013 Q1-16 mln Wholesale bonds 2013 Q mln Maturities 2013 Issues 2013 Maturities 2013 Issues 2013 * Net private placement 1, Maturities* , Wholesale Retail * From May

17 Liquidity position Loans to customers / Direct deposits 102.7% 102.4% 101.5% 101.1% 105.4% 103.0% 98.7% 99.6% 93.0% 31/03/ /06/ /09/ /12/ /03/ /06/ /09/ /12/ /03/2013 Short-term liquidity position as at 08th May 2013 ( /1,000) 08/05/2013 1g 2g 3g 4g 5g 2s 3s 1m 2m 3m Net balance of cumulative expiring positions Counterbalancing capacity Net balance of overall liquidity , ,118 3,998 4,256 4,266 4,266 4,443 4,569 4,720 4,923 4,310 4,221 4,222 4,041 4,044 4,042 3,982 3,982 3,956 3,841 3,982 17

18 Long Run Counterbalancing capacity Long run liquidity position Technical type - data in mil Amount Relative liquidity estimate Residential mortgages 1, Leasing 1, ABACO loans SME Mortgages 3,000 1,100 Other Long Run counterbalancing capacity 6,050 2,317 Short term liquidity position (3m, May) 3,982 Long run counterbalancing capacity 2,317 Potential liquidity position 6,299 18

19 Securities portfolio Breakdown by accounting portfolio AFS 92.0% Mil 31/03/ /03/2012 HFT 4.4% HTM 3.6% HFT Portfolio AFS Portfolio 5,204 2,362 HTM Portfolio HTM securities mainly represented by bank issues with high credit rating AFS / HFT securities represented by Italian sovereign bonds AFS reserve as at 31 March -135 mil (- 120 mil as at 31 December) AFS reserve on Govies, as at 14 th May, -70 mil Exposure increase partly related to Basel 3 requirements (Liquidity Coverage Ratio) Significant economic contribution, in a context of improvement of the Country solvency Portfolio duration < 1.5, considering the interest-rate risk hedging transactions 19

20 Indirect deposits analysis - 5.2% Quarterly trend ( mil) - 1.4% + 1.8% - 3.3% - 2.3% 11,540 11,377 11,579 11,201 10,944 31/03/ /06/ /09/ /12/ /03/2013 Indirect deposits trend influenced by persistent financial market volatility Approximately 6 billion of administrated deposits represent a potential liquidity reserve for new attractive products New insurance savings 2013Q1 75 million New Asset Management 2013Q1 43 million - 5.2% Composition Custody 54.8% - 0.2% 43% 45% - 8.9% 57% 55% 31/03/ /03/2013 Administrated deposits AUM Funds & Sicav 11.9% AUM 19.0% Insurance 14.3% 20

21 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management Net profit development 21

22 Capital ratio Capital ratios evolution ~ +90 bps 10.5% 11.5% 11.4% 7.3% 8.1% 8.2% 31/03/ /12/ /03/2012 Tier I capital ratio Total capital ratio RWA optimization counterbalanced by decrease in asset quality Core Tier 1 Ratio 8.33% proforma, including effects related to the loss coverage with evaluation reserves Capital Ratio 31/03/ /12/ /03/2012 TIER 1 (mln ) 1,602 1,617 1,550 RWA (mln ) 19,502 19,885 21,247 TIER 1 RATIO 8.2% 8.1% 7,3% TOTAL CAPITAL RATIO 11.4% 11.5% 10,5% Indicator 31/03/ /12/2012 Loans Risk weighted * 84.0% 83.6% RWA / Assets 63.5% 66.5% * RWA related to credit risk / Loans to customers at the end of the period Requirements 31/03/ /12/2012 Credit 93% 93% Market - - Operations 7% 7% 22

23 Leverage ratio Tangible Assets / Tangible Equity 22,6x % 18,9x

24 Warrant 2014: extraordinary period The Board of Directors of Credito Valtellinese resolved to allow in 2013 to the holders of the Warrant azioni ordinarie Credito Valtellinese 2014 an extraordinary exercise period to anticipate of almost a year the economic benefits coming from the issue of new Creval shares underlying the Warrants. Without prejudice to the right to exercise the Warrants in 2014, in accordance with their terms and conditions, the holders of the Warrants will have the right to subscribe for, starting from 2 May 2013 (including) to 31 May 2013 (including) (the Extraordinary Exercise Period ), a new Creval share for each Warrant submitted for the exercise, at the price per share of Euro 0,78 (the Subscription Price ). The subscription of the new shares shall be effective on 7 June

25 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management Net profit development 25

26 Operating income development Mln NII Net fees Div. & profits on inv. in associated companies Trading income Other net income Operating income % + 0.8% % % % % + 1.7% net of the guarantee fees to MEF Ch % 2013 Q1 / 2012 Q1 Interest margin 56.7% 91% of revenues from core business (NII + Fees) Other net income 2.5% Trading 5.8% Div. & invest. 0.8% Net fee & comm. 34.2% 26

27 Focus on interest margin /1,000 Quarterly figures % % + 8.6% - 1.2% % 125, , , , , Q Q Q Q Q % 2.00 % 1.95 % 1.93 % 1.82 % 1.07% 0.72% 0.38% 0.20% 0.21% Spread retail Media Euribor 2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 YoY analysis /1, % Volume effect related to increase in doubtful loans Volume effect related to deleverage on loans in bonis Unsecured Bonds cost in first quarter 3, , ,865-20,745-17, Q Q1 Volume Interest Rate Total +100 bp in yield curve +36,7 mil interest margin (~ 9%) 27

28 Focus on net fees /1,000 Net fee quarterly trend* % +1.8% + 0.5% + 8.6% - 8.4% 67,594 68,793 69,136 75,080 68, Q Q Q Q Q1 * net of fees on liabilities guaranteed by the MEF and fees reclassification due the AUM agreement with Anima Net fees breakdown* + 1.7% 25, % 25, % 14,857 15, % 12,171 12, % 15,548 15, Q Q1 Loans and others Current account Payment and collection services Asset management, trading and consulting services 28

29 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management Net profit development 29

30 Operating result and cost/income development Mil Operating income Personnel expenses Other admin. expenses Amortisation Net operating margin % - 6.2% - 3.1% - 2.9% % Chg % 2013 Q1/ 2012 Q1 Cost Income ratio bps Cost to asset ratio* - 17 bps Operating expenses - 5.0% /1, % 66.8% 1.82% 1.65% 133, , Q Q Q Q1 * Operating expenses /total asset 2012 Q Q1 30

31 Personnel expenses and administrative expenses /1,000 Personnel expenses - 6.2% Number of employees ,087 76,087 4,468 4, Q Q1 31/03/ /03/2013 Front to back ratio Administrative expenses - 3.1% /1, % 70.7% 42,883 41,555 31/03/ /03/ Q Q1 source: internal data 31

32 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management Net profit development 32

33 Net profit development Mln Net operating margin Value adjustments Provision & profit on disposals Income before tax Tax for the year Minority Net Income % % -85.3% % Chg % 2013 Q1/ 2012 Q1-66.0% % % 33

34 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 responsible for the preparation of the company s financial reports declares that the accounting information contained in this Presentation reflects the group s documented results, financial accounts and accounting records. Presentation to institutional investors 34

35 Consolidated Results as at 31 March May 2013 Miro Fiordi CEO, Credito Valtellinese