Consolidated Results as at June 30 th Miro Fiordi CEO, Credito Valtellinese. 6 th August Consolidated results as at 30 June

Transcription

1 Consolidated Results as at June 30 th th August 2015 Miro Fiordi CEO, Credito Valtellinese 1

2 Executive Summary Executive Summary Operating trends Recovery in NII for the third consecutive quarter (commercial actions and repricing) significant increase in asset managment fees (+22,3%). Increase in total net fees (+6,6%) positive results from cost reduction actions (-2,3% in operating expenses) cost of retail funding (deposits and bonds) at 43 bps, compared to 126 bp at December 2014 gross loans stable compared to the end of 2014, 376 mn of new loans to individuals, % YoY, 947 mn of new loans +73.3% YoY inflow of doubtful loans in decrease compare to the last quarter (-36,9%) New agreement with Cerved Group to manage NPLs in a better way Sound liquidity position counterbalancing capacity of 4,8 bln, of which 3,3 bln unencumbered LCR and NSFR above the minimum required (>100%) Strong capital position: CET1 ratio at 11,1% fully loaded aligned to the best capital standards, not considering the additional buffer deriving from AIRB model approval Preliminary agreement to sell the stake in ICBPI, capital gain implied bps Solid Basel 3 leverage ratio at 6,3%* *At 31 march

3 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management and Net profit development Annexes 3

4 Credit policies and asset quality Loans to customers analysis Quarterly trend (mln ) Commercial Loans (gross amounts) Loans amount almost stable during first half - 0.1% 22,722 23,107 23,064 21,279 20,637 20,356 20,561 20,074 20,099 20, Gross loans by technical classification Gross loans by business segment Current accounts 25.4% Npls 13.1% Pool loans 2.5% Foreign loans 1.7% Personal loans 3.0% Loans CCG & CDP* 2.5% Other operations 2.3% 73.4% of total loan book to SMEs, Households and Retail SME Corporate 39.4% Households 19.6% Other 5.4% Mortgages 46.1% Financial leasing 3.4% * CCG: Cassa Compensazione e Garanzia CDP: Cassa depositi e prestiti Source: internal data Retail 14.4% Corporate 21.2% Source: internal data 4

5 Credit policies and asset quality Focus on new loans Loans to customers (Gross amountoutstanding) 1H mln 947 mln of new loans disbursed in the period +73.3% YoY Amount Chg % YoY % Fixed Average Rate 1H 2015 Change Breakdown Individuals 376 mln % 29.6% 2.76% Individuals + 1.9% Of which net substitutions («surroghe»): 28 mln Real estate - 2.9% Amount Chg % YoY Manufactoring Trade Other + 0.7% - 0.3% + 0.5% Mortgage Other secured Unsecured 140 mln 166 mln 265 mln -5.7% % +66.9% Average Rate 3.00% Total amount 571 mln +56.0% Source: internal data 5

6 Credit policies and asset quality Loan portfolio diversification Gross loan book breakdown by geography (%) ~ 57.7% 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 ) ~ 220k Very conservative LTV (<50%), both for households and SMEs Lombardia 57.7% Marche 6.7% Piemonte 4.0% Sicilia 15.4% Toscana 1.9% Trentino Alto Adige 1.7% Umbria 0.8% Valle d Aosta 0.0% Veneto 2.9% Emilia Romagna 1.2% Lazio 7.7% Source: internal data Average EUR 85,000 per loan Loan concentration % Total loans Top 20 exposures 6.3% Retail Secured on real estate property Retail Secured on real estate property of which SME Source: internal data LTV %(as of 31/03/2015) 47.8% 49.8% Retail Secured on real estate property of which non SME 47.0% 6

7 Credit policies and asset quality Doubtful loans analysis and cost of credit risk Cost of credit risk 2.12% 1.71% Retail banks 1.83% Normalization in the cost of risk trend 1.44% 1.02% 2Q14 2Q15 Credito Valtellinese Credito Siciliano Carifano Quarterly change in gross bad loans Quarterly change in gross unlikely to pay 186, ,207 89, , % 94, , ,483 85,900 4, , % 30,385 46,422 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Quarterly change in gross past due Quarterly change in gross non - performing exposures Q14-69,379 2Q14 67,903 3Q14-43,055 4Q14 37,699 1Q15-52,715 2Q15 272, , ,116 1Q14 2Q14 3Q % 250, , ,453 4Q14 1Q15 2Q15 7

8 Credit policies and asset quality Net flow trend of NPL (gross amounts) in 1H Change in NPL loans % % 573, , , ,711 1H H H H 2015 Cost of credit risk at 171 bps (212 bp in 1H 2014) 8

9 Credit policies and asset quality Asset quality Credit risk profile (mln ) 30/06/ /03/ /12/2014 Chg% vs Dec /06/2014 Net Bad loans 1,196 1,160 1, Net Unlikely to pay 1,638 1,603 1,578* ,598* Net Past due Total net non-performing exposures 3,334 3,312 3, ,063 Net non-performing exposures/ Loans to customers 17.9% 17.8% 16.8% 15.4% Net NPL almost flat during the quarter. NPL ratio stable at ~ 18% * Sum of Substandard loans and Restructured loans 9

10 Credit policies and asset quality Asset quality Coverage Ratios 30/06/ /12/ /06/2014 Bad loans 55.8% 56.0% 56.3% Unlikely to pay* 21.6% 21.6% 14.4% Past due 9.3% 9.6% 6.9% * Sum of Substandard loans and Restructured loans Non-performing exposures Coverage 37.2% 36.8% Coverage Bonis 37.6% 0.81% 0.80% NPLs Coverage up by 80 bps in Q2 0.76% December 2014 March 2015 June 2015 December 2014 March 2015 Share of loans assisted by guarantees** on total net NPLs Data as at 31/12/2014 June ,4% 86,1% 85,0% 84,1% 80,0% 78,7% 78,2% 76,5% 73,8% Peer average*: 80.9% * Peers include ISP, UCG, MPS, UBI, BPER, BPM, Carige and BP. ** real collateral Source: FY 2014 Annual Reports. Aritmetic mean Creval Peer1 Peer2 Peer3 Peer4 Peer5 Peer6 Peer7 Peer8 10

11 Credit policies and asset quality NPLs management model Past due days Max 270 UNLIKELY TO PAY Administrativ e category PERFORMING PAST DUE SUBSTANDARD RESTRUCTURED BAD LOANS Managerial category GREEN SKY-BLUE YELLOW ORANGE RED SUBSTANDARD RESTRUCTURED BAD LOANS Owner by segment Household / Retail Retail / Household manager Retail / Household manager Phone Collection Home collection Credit Department Credit Department Outsourcing SME / Corporate Corporate manager Corporate manager Credit Manager / branch manager Credit Manager Credit Manager/ Credit Department Non Core Unit Credit Department Bad Loans department (large ticket) Specialization needed for each different status / category Leverage on specialized partner for reducing costs and improving performance Industrial model for NPL management, upgraded over time 11

12 Credit policies and asset quality Strategic partnership with Cerved Credit Management STRATEGIC AGREEMENT CORPORATE NPL «LARGE TICKET», RECOVERY STRATEGIES, MONITORING SLA RETAIL AND MID CORPORATE MORE STANDARDISED AND «TIME CONSUMING» [15% GBV] [85% GBV] DEVELOPMENT OF AN INDUSTRIAL PARTNERSHIP Sell price for the stake in Finanziaria San Giacomo 22 mln, + 13 bps CET Ratio ~ 12

13 Credit policies and asset quality Industrial benefits for Creval The exclusive servicing contract envisages the management, in outsourcing, of the more standardized and time consuming bad loans of the Creval Group as well as of future inflows (85% of the current stock and of new inflows of bad loans), based on variable market fees, which are mainly determined by the collections achieved on the portfolio of bad loans. Moreover, the agreement considers a significant activity to be performed by the servicer aimed at populating a comprehensive Loan Tape on the bad loans such as to be able to start, in the medium term, a process to divest a portion of the bad loans portfolio, in line with the objectives defined by Creval Group Industrial Plan. Creval Group will maintain management of large ticket bad loans, as well as coordination and control of the recovery process and of the overall servicing activities. For the Creval Group this agreement is consistent with the objectives outlined in its Industrial Plan, specifically related to bad loans management allowing to maximize incremental value through the optimization of recovery activities, reducing operating costs and improving the recovery rate over time. 13

14 Credit policies and asset quality Establishment of a Non Core Unit CREDIT AREA CREDIT MANAGEMENT DEPARTMENT Non core unit Guarantees Management Corporate and Large Ticket Households, Retail and SME Corporate Watchlist and past due monitoring Creval has set up a special Non-Core Unit (NCU), within the Loans Division, in support of the process, with deleveraging and derisking objectives on the focused portfolio. First activity of the NCU related to the whole portfolio of Real Estate Related Unlikely to pay loans (1 bn outstanding) 14

15 Credit policies and asset quality Partnership with Yard Real Estate Unlikely to pay portfolio Real Estate «Unlikely to pay» portfolio under analysis 1) Mapping and definition of cluster of real estate asset (hotel, residential, commercial etc) 2) Valuation of the portfolio PHASE 1 COMPLETED PHASE 2 WAY OUT ~ 1 bln PHASE 3 3) Analysis and planning: Definition of way out strategy for each single asset IMPLEMENTATION 4) Implementation of the strategy, through an rooted and specialized commercial network In brief, the agreement with Yard entails the following activities: portfolio assessment, wayout strategies modelling and, finally, implementation of the placement on the market of the assets Consolidated results as as at at June

16 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management and Net profit development Annexes 16

17 Funding, liquidity and securities portfolio Direct deposits and ECB funding Quarterly trend (mln ) Retail funding +0.9% 18,150 19,229 19,480 19,654 19,028 18,994 19,655 19,222 19,041 18,534 18, % Composition Direct Funding 26% +7.2% 74% 78% 30/06/2014 Securities issued 22% 30/06/2015 Deposits due to customers Remix from customer deposit to assets under management and liquidity -9.8% +13.1% mln 30/06/ /06/2015 Chg.% Deposits % Time deposits 2,378 1, % Current accounts 11,919 12, % Securitizations % Wholesale bonds % Retail Bonds 3,655 3, % Deposit certificates % Deposits CCG & CDP 66 2,359 n.s. Other % Source: internal data 17

18 Funding, liquidity and securities portfolio Bonds by maturities Retail bonds 2015 H1 (Mln ) Wholesale funding 2015 H mln * 687* Wholesale 150 Securitisation Maturities 2015 Securitization s name Issues 2015 Outstanding Notional 30/06/2015 Maturities 2015 Issues 2015** ** Net PP Net Placement Cost (DM) over EU3M Quadrivio RMBS 2011 S.r.l.-A1 239,093,074 EU3M bps Quadrivio RMBS 2011 S.r.l.-A2 180,000,000 EU3M + 116,7 bps Quadrivio SME 2014 S.r.l.-A1 0 EU3M bps Quadrivio SME 2014 S.r.l.-A2A 142,411,768 EU3M bps Quadrivio SME 2014 S.r.l.-A2B 78,326,472 EU3M bps H Maturities* (Mln ) ECB funding Creval 30 June 2015 (Mln ) Wholesale Retail H * As at 1 July 2015 and net private placement 1,500 TLTRO 18

19 Funding, liquidity and securities portfolio Liquidity position Commercial loans / Retail funding +0.9% 108.7% 103.6% 107.0% 105.4% 108.4% 109.6% LCR and NSFR as at 30 June 2015 > 100% 31/03/ /06/ /09/ /12/ /03/ /06/2015 Short-term liquidity position July, 29 th 2015 ( /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 * Source: Rapporto sulla stabilità finanziaria, Bank of Italy, April

20 Funding, liquidity and securities portfolio Securities portfolio Breakdown by accounting portfolio Mln 30/06/ /03/ /12/2014 Chg.% Vs Dec 2014 AFS 98.0% HFT 2.0% HFT Portfolio % AFS Portfolio 5,519 7,437 6, % HTM Portfolio Current Average Duration of AFS Portfolio 3.16 Breakdown of AFS portfolio Debt Instruments 97.0% Equity Instruments 2.1% OEIC Units 0.9% Mln 30/06/ /03/ /12/2014 Debt Instruments Equity Instruments 5,351 7,295 6, OEIC Units BTP; 71.1% CCT; 13.5% BOT; 9.5% Other equieties; 2.4% Other bond; 3.5% AFS reserve as at 30 June mln (+46 mln as at 4 th August) AFS reserve on Govies, as at 30 June, ~ mln (- 8 mln as at 4 th August) AFS reserve as at 31 March 98 mln AFS reserve on Govies, as at 31 March, ~ 61 mln 20

21 Funding, liquidity and securities portfolio Indirect deposits analysis Quarterly trend (mln ) +3.3% 11,635 11,891 11,925 11,963 12,912 12, % +0.3% +0.3% +7.9% - 4.9% 31/03/ /06/ /09/ /12/ /03/ /06/2015 Composition + 3.3% Development of the strategic partnership with ANIMA SGR 47% 54% +17.2% mln 30/06/ /06/2015 Chg.% Funds & Sicav 1,814 2, % Custody 6,257 5, % 53% 46% -9.3% AUM 2,138 2, % Insurance 1,682 1, % 30/06/ /06/2015 Total 11,891 12, % AuM Custody 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 Annexes 22

23 Capital ratio Capital ratios evolution Capital ratios evolution phased-in calculation ~ +50bps Fully loaded calculation at June 30 th, 2015 (considering the SME supporting factor ): 11.0% 11.0% 14.0% 11.1% 11.1% 13.6% 11.5% 11.5% 13.8% CET 1 Ratio 11.1% (11.1% at ) Tier 1 Ratio 11.1% (11.1% at ) Total capital ratio 13.1% (13.7% at ) 31/12/ /03/ /06/2015 Common Equity Tier 1 ratio Tier 1 ratio Total capital ratio Capital ratio 30/06/ /03/ /12/2014 TIER 1 (mln ) 1,892 1,845 1,825 RWA (mln ) 16,450 16,678 16,635 TIER 1 RATIO 11.5% 11.1% 11.0% CET1 Ratio pro-forma (fully loaded) Considering ICBPI disposal up to 13,0% Leverage ratio Phased-in calculation 6.3% ( ) TOTAL CAPITAL RATIO 13.8% 13.6% 14.0% Indicator 30/06/ /03/ /12/2014 Loan Risk weighted* 82.7% 83.5% 83.5% RWA /Assets 60.8% 56.7% 57.7% * RWA related to credit risk / Loans to customers at the end of the period (net CCG) Requirements 30/06/ /03/ /12/2014 Credit 90.9% 90.8% 91.0% CVA 0.2% 0.2% 0.2% Market 0.1% 0.4% 0.1% Operations 8.8% 8.7% 8.7% 23

24 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management and Net profit development Annexes 24

25 Revenues development Operating income development Mln NII Net fees Div. & profits on inv. in associated companies Trading income Other net income Operating income Chg % % +6.6% +34.6% -43.6% +14.2% -7.4% 83.6% of revenues from core business (NII + Fees) Net fees & comm. 31.1% Interest margin 52.5% Div. Invest & Trading 13.9% Other net income 2.5% 25

26 Revenues development Focus on interest income Quarterly figures /1, % 127, , , , , , % -5.1% +1.8% +0.4% +2.9% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 YoY analysis Third increase in NII, thanks to repricing actions 247, % 237,533 Commercial spread trend ( ) bps 1.96% 2.12% 2.50% 2.51% 2.59% 2.58% Jun 13 Dec 13 Jun 14 Dec 14 Mar 15 Jun 15 26

27 January February March April May June July August September October November December January February March April May June July Revenues development Cost of retail funding Average cost (basis points) - sight deposits book bp bp Banking system Data Source: Bank of Italy Creval Data Source: Internal Data Italian Banking System Creval Difference between Creval s cost and system average: -59% (Jan 14 May15) Strong repricing measures taken in the first quarter Further actions to be implemented in H2, already effective 27

28 Revenues development Cost of retail funding Average cost - new time deposits by quarter 1,96 Difference between average rate on Time Deposits and short term Goverment Bonds (BOT-12m) down from 131 bp (2014 Q1) to 57 bp (-65%) 1, , Q Q Q Q Q Q2 BOT 12 MESI 0,70 TIME - BOT 0,54 Downward revision of the rate / limits for new deposits issued by branches Strict control in terms of funding spread associated to new deposits New commercial target / reporting with great focus on value creation (NII) 0,70 28

29 Revenues development Focus on net fees Net fees quarterly trend /1, % 66,476 65,340 70,904 68,521 72, % +8.5% -3.4% +6.2% 2Q14 3Q14 4Q14 1Q15 2Q15 Net fees breakdown YoY +6.6% 36,637 29,921 29,731 36, % -6.0% +2.4% +22.3% 38,435 28,137 30,449 44,258 Loans and others Current account Payment and collection services Asset management, trading and consulting services 19.9% 21.6% 27.2% 31.3% 2014 H H1 29

30 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management and Net profit development Annexes 30

31 Cost management and Net profit development Operating result and cost/income development Mln Operating income Personnel expenses Other admin. Expenses Amortization Net operating margin Chg % % -3.0% - 0.7% -4.8% -13.0% Cost Income ratio Cost to asset ratio * Operating expenses +2.8% -0.05% -2.3% /1, % 55.2% 1.90% 1.85% 256, ,142 1H14 1H15 1H14 1H15 1H14 1H15 *Operating expenses annualized /total asset 31

32 Cost management and Net profit development Personnel expenses and administrative expenses Personnel expenses Number of employees /1, % , ,766 4,346 4,116 1H14 1H15 30/06/ /06/2015 Front to back Administrative expenses 70.9% 69.0% -0.7% /1,000 88, /06/ /06/2015 1H14 1H15 32

33 Cost management and Net profit development Net profit development Mln Valued adjustments -25.6% YoY The amount includes a provision of ~ 4 mln for SRF Disposal of Finanziaria San Giacomo to Cerved Group Net operating margin Value adjustments Provision & profit on disposals Income before tax Tax for the period Investment disposal Minorities Net income -13.0% -25.6% +8.8% % -34.6% n.s % n.s. Chg %

34 Equity investments Major investments EQUITY INVESTMENTS PORTFOLIO Company ICBPI GLOBAL ASSISTANCE Company s activities Bank (Holding of ICBPI Group) Insurance and reinsurance company Share of capital held by the group (%) Carrying amount Mln (CA) Earning 2014 Pro-rate (E) Return on investment (E/CA) 20.4% % 40.0% ,1% Press release 19 June 2015 Credito Valtellinese S.c., ( ) signed an agreement for the sale of 85.79% of the share capital held in Istituto Centrale delle Banche Popolari Italiane S.p.A. to Mercury Italy S.r.l. The consideration will be based on a valuation of 100% of the share capital of ICBPI of 2,150m or 2,000m depending on the structure of the transaction between two alternatives already identified. Credito Valtellinese comunicates: (i) that it undertook to sell a 18.39% of ICBPI share capital and, assuming ( ) a proportional allocation of the price amongst the sellers, the transaction would imply on a consolidated basis considering the financial statements as at 31 March 2015 an economic effect ( ) estimated in 217m and 247m respectively. The consolidated Common Equity Tier 1 ratio ( Phased in ) ( ) would increase of 165 and 183 basis point, respectively ( ). (ii) that upon the sale above it will hold a shareholding equal to 2% of ICBPI s share capital. REVISED ESTIMATES AS AT 30/06/2015 Increase of CET1 ~ bps Major investments AVAILABLE FOR SALE FINANCIAL ASSETS PORTFOLIO Company ANIMA HOLDING Company s activities Asset management Company (Holding of Anima Group) Share of capital held by the group (%) Carrying amount Mln 2.8% 65.4 ALBA LEASING Leasing company 8.1% 33.0 BANCA POP.CIVIDALE Bank (Holding of BPC Group) 1.0%

35 Agenda Executive summary Credit policies and asset quality Funding, liquidity and securities portfolio Capital ratio Revenues development Cost management and Net profit development Annexes 35

36 Key data Consolidated Balance Sheet Data 30 June December 2014 (mln ) +4.5% -2.2% +5.6% 32,709 34,179 19,005 18,591 20,746 21,899 11, % 12,280 Loans to customers * Direct deposits* Indirect deposits Total deposits 31/12/ /06/2015 *the amounts include components referring to central counterparties and institutionals Balance sheet structure 30/06/ /12/2014 Indirect deposits from customers / Total deposits 35.9% 36.6% Direct deposits from customers / Total liabilities 80.9% 72.0% Customer loans / Direct deposits from customers 84.9% 91.6% Customer loans / Total assets 68.7% 66.0% 36

37 Commercial trends Strengthening Customer base 985k customers Cross selling ~ 4.2 Retention rate* ~ 98.0% Sales results as of 30/06/2015 Current accounts ~ + 7,034 Debt Cards ~ + 7,357 Car insurance ~ 9,752 Consumer Finance (Compass) new loans Net flow AUM (mainly mutual funds) Bancassurance flow New loans to individuals Internet customers ~ 24 mln ~ 441 mln ~ 364 mln ~ 376 mln ~ 257 k +89.9% Y/Y % Y/Y *Source: customer satisfaction survey - households 37

38 Credit policies and asset quality Loans to customers analysis Quarterly trend (mln ) - 1.8% ,989 22,722 23,107 23,064 21,279 20,637 20,356 20,561 20,074 20, Commercial Loans (gross value) Other Loans (gross value) Source: internal data 38

39 Annex Asset quality details (Mln ) 30/06/2015 Gross amount Impairment losses Carrying amount Coverage ratio Bad loans 2,706-1,510 1, % Unlikely to pay loans 2, ,638 21,6% Past due exposures % Total impaired loans 5,346-2,012 3, % Performing loans 15, , % Total loans and receivables with customers 20,719-2,128 18,591 39

40 Credit policies and asset quality Bad loans analysis including collateral Bad loans Total Coverage Ratio (%) +1% 107% 108% 50% 108% 14-Q2 15-Q2 55% 3% Cash coverage Ratio Cash coverage related to bad loans 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 40

41 Credit policies and asset quality Unlikely to pay loans analysis Unlikely to pay Loans Total Coverage Ratio (%) 70% 143% 52% 21% 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. 41

42 Annex Non performing exposures (Gross amount) (Mln ) Bad loans Unlikely to pay 2,706 2,200 2,352 2,503 2,598 1,866 1,870 2,013 2,043 2,089 30/06/ /09/ /12/ /03/ /06/ /06/ /09/ /12/ /03/ /06/2015 Past due Non-performing exposures ,607 4,831 5,082 5,245 5,346 30/06/ /09/ /12/ /03/ /06/ /06/ /09/ /12/ /03/ /06/

43 Annexes Reclassified balance sheet the quarterly Assets 30/06/ /03/ /12/ /09/ /06/2014 Cash and cash equivalents 151, , , , ,213 Financial assets held for trading 114, ,383 61,787 65,195 64,382 Available-for-sale financial assets 5,519,379 7,436,450 6,789,606 5,723,495 3,622,110 Held-to-maturity investments Loans and receivables with banks 709, , , ,169 1,134,362 Loans and receivables with customers 18,590,813 18,614,292 19,004,863 19,672,478 19,446,613 Equity Investments 30, , , , ,779 Property, equipment and investment property and intangible assets Non-current assets and disposal groups held for sale 657, , , , , ,947 3,158 3, ,475 Other assets 1,111,395 1,167,989 1,055,566 1,027,921 1,050,611 Total assets 27,062,432 29,437,878 28,813,556 28,465,029 26,900,395 Liabilities and Equity 30/06/ /03/ /12/ /09/ /06/2014 Due to banks 1,759,167 2,401,288 4,837,734 3,575,676 2,574,270 Direct funding from customers 21,898,623 23,297,163 20,745,569 21,116,472 20,424,825 Financial liabilities held for trading 3,450 4,021 3,233 4,115 3,318 Hedging derivatives 263, , , , ,564 Liabilities associated with disposal groups ,760 Other liabilities 922, , , ,795 1,100,850 Provisions for specific purpose 200, , , , ,104 Equity attributable to non-controlling interests 4,269 4,250 4,454 4,690 4,675 Equity 2,010,927 2,131,261 2,020,106 2,374,160 2,362,029 Total liabilities and equity 27,062,432 29,437,878 28,813,556 28,465,029 26,900,395 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 Value adjustments of goodwill Net gains (losses) on sales of investments Pre-tax profit from continuing operations Income taxes Post-tax profit from continuing operations Gains from assets held for sale Profit for the period attributable to non-controlling interests Profit for the period 120, , , , ,730 72,759 68,521 70,904 65,340 66,476 1, ,321 5,847 4,244 7,048 5,705 3,213 15,771 34,949 7,540 21,223 59,322 6,805 4,441 1,439 4,598 4, , , , , ,682-70,538-74, ,485-76,292-74,911-47,654-40,193-37,824-42,502-46,186-8,857-8,672-19,801-9,334-9, , , , , ,375 96, ,113 29,446 83, ,307-90,803-67, ,670-94, ,455-3, ,033-3, , , ,989 38, ,427 2,426 11,656 6,330-13, ,883 2,267-8,641 8,319 24, ,544 4,693 3,015 20, , ,172-1, ,494 23, ,285 4,055 2,308 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 June 30 th th August 2015 Miro Fiordi CEO, Credito Valtellinese 46

47 Contacts for Investor and Financial Analysts Ugo Colombo Head of Planning, Control and General Affairs Tel Mob Tiziana Camozzi Head of Investor Relations Tel Mob