1. finance
2. bank

Group’s results – 9M2014
November 11, 2014
Quarter highlights
The development of main aggregates continued with Loans to Customers up by 4.3% YoY,
compared with +2.8% YoY at the end of June 2014, and AUM up almost 20%YoY, compared with +16.1%
at the end of 1H14
Operating Income in 3Q14, net of Trading and Performance Fees, continued to grow (+0.3% QoQ
and +9.2% YoY), despite the usual negative seasonality
Net Interest Income was up 8.6% YoY and up 2.8% QoQ, because of the expansion of volumes
and the reduction of the cost of funding
Non Interest Income, net of Trading and Performance Fees, was remarkably up YoY (+9.8%) but
down QoQ (-2.1%) mostly because of unfavorable seasonality. The same aggregate, including also
the more volatile components was up 3.8% QoQ, as a result of Trading’s performance
Operating Costs performed in line with expectations (+6.6% YoY), coherently with the strategy
implemented by the Group (+6.8% YoY including D&A). The aggregate is down 4.5% QoQ because of
seasonality
Net Adjustments to Loans increased significantly both YoY and QoQ due to the update of the model
to calculate collective provisions, accordingly with Comprehensive Assessment’s results. The normalized
cost of risk on a yearly basis would have been 41 bps compared to 43 bps in 9M13
3Q14 Net Profit was up 0.7% YoY despite the additional provisioning on loans amounting to almost
€25million. 9M14 Net Profit was up 28% YoY
2
Income Statement
3Q13
2Q14
3Q14
% vs. 3Q13
% vs. 2Q14
9M13
9M14
% a/a
Operating Income
234.4
256.0
264.5
12.8
3.3
737.2
807.2
9.5
Operating Income net of Trading
and Performance Fees
229.3
249.6
250.3
9.2
0.3
691.9
747.4
8.0
-147.1
-164.2
-156.8
6.6
-4.5
-459.4
-487.7
6.2
Depreciation & Amortization
-8.9
-9.8
-9.8
10.1
0.0
-25.8
-28.8
11.6
Operating Profit
78.4
82.0
97.9
24.9
19.4
252.0
290.7
15.4
Net Adj. To Loans
-21.4
-17.6
-46.8
118.7
165.9
-69.3
-77.9
12.4
-6.2
-1.6
-1.0
n.a.
n.a.
-9.1
-4.9
n.a.
0.5
2.0
-0.8
n.a.
n.a.
-1.2
-0.4
n.a.
51.3
64.8
49.3
-3.9
-23.9
172.4
207.5
20.4
-22.0
-22.8
-19.8
-10.0
-13.2
-72.1
-79.0
9.6
29.3
42.0
29.5
0.7
-29.8
100.3
128.5
28.1
Euro, million
Operating Costs
Provision for Risks and Charges
Extraord. Income/Expenses
Pre Tax Profit
Taxes/Minorities
Net Profit
Operating Income net of Trading and Performance Fees continued to expand both QoQ and YoY,
while Operating Costs, mostly due to investments, grew at a lower pace
9M14 Net Profit, even if penalized by higher provisions on collective provisions, posted a solid growth
YoY (+28%)
3
Operating Income evolution
Operating Income (net of Trading and Performance Fees)
Euro, Million
255
250
245
240
235
230
225
220
215
210
248
250
250
244
231
223
230
232
229
225
219
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
Core revenues continued to increase despite third quarter is usually weak because of a negative
seasonality that affects fee’s income
4
Net Interest Income (1/3)
Net Interest Income
123.6 122.2 125.6
121.3
The Net Interest Income was back to growth
QoQ (+2.8%) benefitting from higher average
loans’ volumes as well as lower charges on
funding, especially related to institutional
bonds
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
As for Customer’s Spread, after the positive
trend seen in the first six months of 2014, the
sharp interest rates decrease occurred in
3Q14 (and expected to continue also in the final
quarter of 2014), penalized significantly the
aggregate
Euro, Million
130
120
116.7 115.7
110 112.6
100
90
Euribor and BTP/Bund spread evolution
Quarterly Customers’ Spread
(Credem SpA management accounting)
0.4%
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
3.39
2.11
1.29
3.35
2.09
3.28
2.03
1.26
1.24
3.30
2.22
3.38
2.38
3.31
2.36
3.12
2.22
294
350
280
0.3%
1.00
0.94
0.90
0.2%
0.23% 0.24%
spread
2Q13
3Q13
4Q13
average loan rate
1Q14
2Q14
300
250
159
154
140
0.17%
0.1%
200
150
100
0.11%
0.0%
1Q13
0.30% 0.31%
236
196
0.21% 0.21%
1.08
259
50
0
3Q14
average deposit rate
Euribor 3 months
Spread BTP vs. Bund (10 years)
5
bps
Net Interest Income (2/3)
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
Evolution of Average Loan Rate
Evolution of Average Deposit Rate
(Credem SpA management accounting)
(Credem SpA management accounting)
%
3.77
3.39
3.88
3.31
-0.51%
-0.51%
-0.42% -0.51%
-0.38%
3.89
3.38
3.81
3.30
3.79
3.28
3.77
3.35
2.50
3.78
3.12
-0.57%
%
2.03
2.00
-0.66%
1.50
1.29
1.26
1.24
1.08
1.83
0.81%
1.00
1.00
1.73
1.63
0.83% 0.79%
0.94
0.74%
0.90
0.50
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
0.00
1Q13
Credem: Average loan rate
2.15
2.22
0.30%
2.15
2.36
0.17%
2.06
2.38
0.31%
1.92
2.22
0.37%
1.86
2.03
1.78
2.09
1.50
1.74
2.11
2.00
0.32% 0.22%
1.00
0.50
0.00
1Q13
2Q13
3Q13
Credem: Spread
3Q13
Credem: Average deposit rate
(Credem SpA management accounting)
2.50
2Q13
4Q13
1Q14
2Q14
3Q14
Industry: Average loan rate
Evolution of Average Customers’ Spread
%
1.99
1.93
1.89
0.75% 0.73% 0.69%
4Q13
1Q14
2Q14
3Q14
0.07%
Industry: Average deposit rate
The comparison with the industry clearly
highlights Group’s growth strategy as pricing
policy is aimed at increasing loan’s
volumes
On the other hand, the significant
reduction of the cost of funding
associated to deposits experienced in
the last 21 months (-39 bps compared to
1Q13) limits the room for a further descend,
penalizing bank customers’ spread
Industry: Spread
Source: ABI Monthly Outlook October 2014
6
Net Interest Income (3/3)
Latest Credem Covered Bonds issues to institutional
investors
Date
Jun-’11
Jul-’13
Feb-’14
Oct-’14
3
7
5
7
Amount (€,million)
500
500
750
750
Orders gathered on
issuance amount
1.8
3.2
3.3
4.0
Maturity (years)
•
The further reduction of BTP-Bund
spread, paired with the outcome of the
ECB’s Comprehensive Assessment
which confirmed Group’s quality and
solidness, also in comparison with
other Italian and European financial
institutions,
•
reducing potential institutional
investors’ uncertainties
•
lowering
correlation
between
sovereign yields and the cost of
funding for banks,
Regional Distribution of investors
Italy
55%
44%
36%
29%
Germany/ Austria
18%
28%
35%
33%
Nordics
6%
7%
6%
5%
France
5%
6%
5%
15%
13%
10%
4%
7%
Switzerland
5%
4%
Asia
1%
4%
8%
3%
UK/Ireland
Other
3%
5%
BTP-Bund Spread at the
date (bps)
178
274
189
162
Spread of the issue*
140
180
88
25
enable a further reduction in the cost
of wholesale funding, even in
comparison with recent issuances
•
It is also interesting to note that the
portion issued to local investors
progressively contracted, revealing a
trend toward the normalization of
financial markets
* Spread calculated on mid-swap rate, meaning the interbanking market rate at the date corresponding to the maturity of the issue
7
Non Interest Income
Non Interest Income: Quarterly Evolution
163.1
Performance Fees
€ Million
Trading
Other
Banking Fees
Insurance Income
Asset Management Fees
165
150
135
120
105
90
75
60
45
30
15
0
NII net of Trading and Perform. Fees
145.8
118.7
9M13
9M14
+32.9%
28
37
4.5
5.4
4.9
3.8
39.1
11.8
4.5
5
4.5
51.3
49.2
52.5
49.5
47.9
49.9
48.4
10.5
9.9
7.3
9.7
11.8
13.4
11.6
52
51.9
51.9
54.9
58.1
61.2
60.9
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
117.8
115.5
113.6
122.7
123.9
127.4
124.7
307 328
+6.8%
138.9
27.6
4
Non Interest Income: YoY Comparison
350
300
250
200
150
100
50
0
133.8
136.8
127.7
+30.0%
44
58
+1.4%
13
13
10.7 3.4
5.6
13.2
Non Interest Income is affected by
the negative seasonality, as well as
in 2013, but, net of trading and
performance fees, was close to the
peak from the beginning of 2012
All aggregates were up YoY, in
particular Insurance Income and, in
absolute
values,
Net
Fees
performed very well
8
Operating Costs
Operating Costs: Quarterly Evolution
Euro, million
Employees
200
150
Networks
157.8 154.5 147.1 153.9
48.6 49.4 45.6 46.9
166.7 164.2
156.8
54
51.7 47.9
100
6,200
6,000
5,800
5,600
5,400
5,200
5,993
5,740
5,544 5,519 5,604 5,609
5,729
2008 2009 2010 2011 2012 2013 9M14
50
109.2 105.1 101.5 107.0 112.7 112.5 108.9
Financial Advisers
1.500
0
1Q13
2Q13
3Q13
Payroll Costs
4Q13
1Q14
2Q14
3Q14
Admin. Expenses
Third quarter’s seasonality had a positive
impact on Operating Costs (-4.5% QoQ) even if
YoY comparison (3Q14 vs. 3Q13: +6.6%) remains
in line group’s strategy on investments
already reported in recent quarters (9M14 vs.
9M13: +6.2%)
All networks grew also in the 3Q14, in line with
recent trends
1.000
1.002 1.006 885
795
750
770
795
500
0
Crecasa and Salary Backed Loans Agents
600
400
200
98
158
217
272
359
353
387
0
9
Loans
Loans to Customers (net of Repos with Institutional and Loans to Group’s SPVs)
21,000
18,000
15,000
12,000
9,000
6,000
3,000
0
€ Mil.
17,536
18,770
19,949
19,721
19,270
19,938
20,107
3,323
3,324
3,370
3,150
3,056
3,165
2,577
5,534
5,845
6,282
6,241
6,151
6,127
6,161
1,941
1,935
2,001
2,042
2,002
2,014
2,070
7,484
7,667
8,114
8,296
7,967
8,742
8,710
2009
2010
2011
2012
9M13
2013
9M14
18,884
19,995
20,643
19,409
19,938
20,275
Loans to Customers
17,536
(B.S. – Line 70 )
Short-Term Loans
Leasing
Growing loans’ volumes (+4.3% YoY) were paired
by the aggressive policy showed in terms of
loans rates. The growth in volumes was mainly
driven by short term lending, (+9.3% YoY) with
long term performing anyhow well in every
aggregate (leasing, residential mortgages and
other long term loans)
Volumes’ growth remained coherent with a large
concentration of loans to customers belonging
to the best 4 rating classes, whose percentage
topped in the quarter its historical maximum
Residential Mortgage
Other Loans
Corporate Loans distribution by Rating
(Credem SpA management accounting)
90%
80%
70%
73%
77%
77%
78%
2011
2012
2013
82%
67%
60%
50%
2009
2010
9M14
% of corporate loans in top 4 rating classes
10
Loans: comparison with the Industry
Loans to Retail and Public Sector Growth Rates
(Credem SpA management accounting)
7.0%
8.0%
6.0%
Market shares on retail and corporate customers
and small business (net of financial institutions)
4.2%
4.0%
5.1%
4.3%
2.2%
1.3%
1.198%
1.2%
0.0%
-2.0%
-2.3%
-3.9%
2010
2011
2012
2013
1.155%
1.2%
-0.1%
-1.1%
-4.0%
-6.0%
1.280%
1.3%
1.2%
2.0%
1.324%
1.4%
1.1%
1.068%
1.1%
9M14
1.0%
dec. 2010 dec. 2011 dec. 2012 dec. 2013 aug. 2014
Industry
Credem
overperformance
(∆ %)
Credem
MS on Performing Loans
0.6%
2.8
2.9
2,3
3.8
6.6
0.5%
0.5%
Credem Group’s growth trend is totally divergent in
comparison with the Industry. As a result, the
market share in performing loans grew by 30% in
the last three years and an half
0.548%
0.6%
0.453%
0.443%
0.434%
0.425%
0.4%
0.4%
0.3%
dec. 2010 dec. 2011 dec. 2012 dec. 2013 aug. 2014
MS on Gross NPLs
Source: ABI Monthly Outlook Ottobre 2014; Bankit data: data flows from “Matrice dei Conti Bankit “(Bastra1) since December 2011, Bankit Public
database (Bollettino Bankit) until November 2011
11
Deposits, Bonds and AUM
The Group continued to grow also on
Customers’ Funding, where the low level of
interest rates drove to a significant growth
especially on AUM
2011
2012
2013
1H14
9M14
12,005
13,066
13,625
13,687
14,083
493
256
260
307
322
43
-
-
-
-
12,541
13,322
13,885
13,994
14,405
4,817
1,721
3,096
4,149
879
3,270
4,187
1,131
3,056
4,349
1,381
2,968
4,079
1,366
2,713
Direct Dep, &
Retail Bonds
15,637
16,592
16,941
16,962
17,118
Ins, Reserves
2,506
2,617
3,236
3,921
4,228
Portfolio
Management
3,859
3,747
3,766
4,258
4,450
4
Mutual Funds
3,062
2,944
3,051
3,279
3,354
3
SICAVs
4,454
5,047
5,314
5,935
5,953
2
Other & Third
Parties Products
3,415
4,478
5,556
6,050
6,554
14,790
16,216
17,687
19,522
20,311
Euro, million
Sight/ Saving
Deposits
CD & Other
Deposits
Repos
Direct
Deposits
Bonds
-Institutional
-Retail
In 3Q14 only, Credem Group was able to
increase AUM volumes by €800 million,
Insurance Reserves by €300 million and
Direct Deposits and Retail Bonds by €150
million
Bonds’ duration kept on increasing. Such
movement will be confirmed also in the next
quarter as a result of the recent issuance of a 7
year covered bond
Bonds Current Duration (years)
AUM
(Credem SpA management accounting)
3.3
3.5
2013
1Q14
3.8
1.6
1
0
2012
9M14
12
Credit Quality
Gross Impaired Loans
2013
1Q14
1H14
9M14
€ Million
9M13
825.5
774.2 804.2
740.8
702.1
900
800
700
600
500
400
300
200
100
0
421.1 433.6 430.6 446.4 438.4
127.0 111.0
Gross NPLs
Gross Watchlist/Restructured Loans
% on Loans(Credem)
3.5
3.6
3.8
3.8
3.9
2.1
% on Loans (Industry)
7.3
7.9
8.3
8.6
9.2*
5.3
2.1
5.5
2.1
2.1
5.9
6.0
2.1
87.4
87.5
99.1
Gross Past Due
0.6
0.5
0.4
0.4
1.2
0.9
0.8
0.8
0.5
Quarterly Average Gross Impaired Loans’ net
flows (€, Million)
80
70
70
60
50
42
46
50
40
30
25
27
2010
2011
26
20
10
• Impaired Loans kept on increasing,
especially in the NPLs aggregate, despite
quarterly average gross impaired loans’
net flows (calculated as quarterly average
increase of total «Gross Impaired Loans»**)
decreased significantly in the 9M14.
Moreover, such aggregate is very close to its
minimum observed in 2010 and 2011
2009
2012
2013
9M13
9M14
(*) *Value at August 2014 (source: ABI Monthly Outlook)
Source: ABI; internal calculation on Bank of Italy figures
(**) 9M14 €26 million has been calculated according to the following formula: Gross Impaired Loans as at the end of September 2014 (€1,363
million) – Gross Impaired Loans as at the end of 2013 (€1,285 million) divided by 3 (as the three quarters between December 2013 and
September 2014)
13
Impaired Loans coverage
Net Impaired Loans
Euro, Million
9M13
2013
1Q14
1H14
9M14
Net NPLs
314.1
310.0
318.9
327.1
337.4
Net Watchlist
339.8
350.2
359.8
366.2
358.4
Net Restructured
24.6
23.1
15.2
22.3
20.4
Net Past Due
120.0
105.1
82.9
83.1
94.0
Total Net
Impaired Loans
798.5
788.4
776.8
798.7
810.2
Impaired Loans’ coverage increased to
almost 41%, while NPLs’ Coverage remained
slightly above 59%, in line with the maximum
levels of the last four years
Net Impaired Loans
NPLs’ Coverage (%)
60
58
58.2
57.4
56.0
56
58.8
Impaired Loans’ Coverage (%)
59.3
59.1
42
40
38
55.4
34
52
32
40.3
40.6
1Q14
1H14
9M14
38.7
36.3
36
54
39.9
35.8
35.0
30
50
2010
2011
2012
2013
1Q14
1H14
9M14
2010
2011
2012
2013
14
The Coprehensive Assessment certified the adequacy of Credem
Group’s coverage policy
11,80
11.80
0.40
3,00
3.00
8.40
8,40
Adverse Stress
Test impact
CET1 post AQR
and Adverse
Stress Test
3,40
3.40
6.10
6,10
Adverse Stress
Test impact
CET1 post AQR
and Adverse
Stress Test
1,97
1.97
8,89
8.89
Adverse Stress
Test impact
CET1 post AQR
and Adverse
Stress Test
SSM
CET1 2013
10,20
10.20
AQR impact
0.70
ITA
CET1 2013
10.95
10,95
AQR impact
0.09
Credem
CET1 2013
AQR impact
15
First banking Group in Italy in the adverse scenario and second in
the baseline scenario, in terms of capital ratios
Bank Name
FY13
CET1
Ratio
Delta
AQR
(bps)
B1
CET1 Ratio
AQR adjusted
Correction for the
Baseline Scenario
(bps)
CET1 Ratio
post Baseline
Scenario
Correction for the
Adverse Scenario
(bps)
CET1 Ratio
post Adverse
Scenario
(B3 = B1 + B2)
B4
(B5= B3 + B4)
B6
(B7 = B3 + B6)
Credito Emiliano
10.95%
-9
10.86%
5
10.91%
-197
8.89%
UniCredit
9.77%
-19
9.58%
-8
9.50%
-279
6.79%
Mediobanca - Banca di Credito
Finanziario
9.25%
-85
8.40%
60
9.00%
-217
6.24%
Banca Popolare Di Milano
7.29%
-40
6.89%
-35
6.54%
-293
3.97%
Intesa Sanpaolo
11.95%
-25
11.70%
-48
11.23%
-339
8.31%
Iccrea Holding
11.08%
-44
10.64%
19
10.83%
-328
7.36%
Banca Popolare Dell'Emilia
Romagna
9.15%
-78
8.37%
-4
8.33%
-316
5.22%
Banca Popolare di Sondrio
8.15%
-78
7.37%
-13
7.24%
-317
4.20%
UBI
12.25%
-44
11.82%
-94
10.88%
-362
8.20%
Veneto Banca S.C.P.A.
7.33%
-163
5.70%
8
5.78%
-296
2.73%
Banca Piccolo Credito
Valtellinese
8.79%
-127
7.52%
-57
6.95%
-401
3.51%
Banco Popolare
10.06%
-212
7.94%
-124
6.70%
-320
4.73%
Banca Popolare di Vicenza
9.37%
-179
7.59%
-13
7.46%
-441
3.17%
Banca Carige S.P.A. - Cassa di
Risparmio di Genova e Imperia
5.17%
-129
3.88%
-154
2.34%
-624
-2.36%
Banca Monte dei Paschi di Siena
10.19%
-320
6.99%
-97
6.01%
-687
-0.09%
CREDEM RANKING
4°
°
3°
°
2°
°
1°
°
16
The only banking group in Italy not asked to correct its provisioning
on the base of the sample check of its assets
Bank Name
Provisioning adjustment projected
Provisioning adjustment on
on total portfolio on the base of the
sample check (D.C1)
sample check (D.D1)
Adjustment on
collective provision
(D.E1)
Total Adjustment
(D.C1+D.D1+D.E1)
(bps)
(mill. EUR)
(bps)
(mill. EUR)
(bps)
(mill. EUR)
(bps)
(mill. EUR)
Credito Emiliano
-0.7
-1
0.0
0
12.9
21
-12.2
20
UniCredit
11.8
482
2.7
111
9.3
380
-23.8
973
Intesa Sanpaolo
16.4
466
0.3
8
17.5
498
-34.2
972
Banca Popolare Di Milano
38.8
168
12.3
53
6.0
26
-57.0
248
Iccrea Holding
15.1
20
24.6
33
21.0
28
-60.7
82
UBI
31.4
199
26.3
167
3.7
24
-61.4
390
Banca Popolare Dell'Emilia
Romagna
42.6
185
32.1
139
36.0
156
-110.7
480
Banca Popolare di Sondrio
68.9
163
14.1
33
33.2
78
-116.2
274
69.4
351
0.1
1
51.7
262
-121.2
614
93.8
216
40.8
94
46.2
106
-180.8
416
91.1
165
74.3
134
16.2
29
-181.7
329
Veneto Banca
109.7
276
45.4
114
71.8
181
-226.9
571
Banca Popolare di Vicenza
44.2
126
86.3
246
120.3
343
-250.8
714
Banco Popolare
85.5
451
96.5
510
113.6
600
-295.6
1,561
Banca Monte dei Paschi di
Siena
135.3
1,130
263.1
2,196
102.3
854
-500.7
4,180
Mediobanca - Banca di
Credito Finanziario
Banca Carige S.P.A. - Cassa
di Risparmio di Genova e
Imperia
Banca Piccolo Credito
Valtellinese
Gross figures not netted by fiscal effects
17
Cost of Risk
Cost of Risk (bps)
59
60
47
52
46
39
37
40
47
43
42
39
41
20
27
31
1Q14
1H14
0
1Q13
1H13
9M13
2013
Cost of risk
Cost of risk (net of non recurrent items)
Cost of Risk: historical evolution (bps)
80
Crack Parmalat
70
70
62
59
60
44
50
40
30
35
31
35
34
27
21
19
20
20
10
9M14
7
The choice of updating the model to calculate
collective provisions, raised significantly the
Cost of Risk in the third quarter, in
comparison with 31 bps performance posted
in 1H14
If normalized, accounting non recurrent
provision of almost €25 million in the quarter, the
cost of risk would have been 41 bps, in line
with the normalized level observed in 2013
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
18
Assets & Liabilities
21,000
20,275
20,372
Assets (Euro, million)
14,000
4,315
0
Fin. Assets
held for
trading*
711
920
9M14
8
8
199
170
3,983
7,000
5,081
5,941
1H14
Fin. Assets at Fin. Assets
fair value*
av. for sale*
Fin. Assets
(insurance
companies)*
Due from
banks
Loans
stable
Loans to
customers
0
ECB exposure at
€2.2 billion
2,351
1H14
2,304
4,228
3,921
2,713
735
1,500
2,350
401
405
2,925
1,366
5,000
1,381
10,000
4,030
15,000
2,968
13,994
20,000
Equity
14,405
Clientele
to
Customers
were
On the liabilities’ side short
term
funding
decreased
significantly
Liabilities (Euro, million)
Institutional
Securities in AFS decreased
by almost €800 million in the
quarter as a result of the
Trading activity that took
advantage by the favorable
trend in value, mostly on
government bonds issued
by foreign countries
9M14
€735 million TLTRO line was
included in the aggregate,
while late October’s €750
million Covered Bond issue
is not yet in accounting
figures
(*) 9M14 figures based on internal calculations
19
Banking Group’s Securities Portfolio
Variazione
degli
impieghi
alla clientela
Securities’
Portfolio
Breakdown
(Credem SpA Management Accounting)
100%
90%
57%
The active management of the portfolio,
that caused a reduction of the aggregate in
the quarter of almost €800 million, also
changed the asset mix of the aggregate,
as the reduction affected mainly
government bonds issued by foreign
countries
18%
In particular, Italian government bonds
incidence, went up from 49% at the end
of June, to 57% at the end of September,
while this portion of the portfolio
remained stable in the amount
80%
51%
70%
49%
62%
60%
50%
40%
30%
20%
10%
24%
28%
10%
12%
10%
13%
13%
13%
13%
13%
2013
1Q14
1H14
9M14
16%
9M14 Italian govies’ incidence is however
definitely lower than the level of 62%
reached at December 2013
0%
Other no-Italy
Other Italy
Gov. No-Italy/ EFSF/ EIB
Gov. Italy
20
Liquidity Ratios
NSFR
130%
120%
110%
100%
90%
80%
70%
60%
50%
124%
113%
106%
2012
Both ratios showed levels remarkably
above future thresholds set by the
regulation
Last Covered Bond’s issue, not yet included
in the 9M14 aggregates, will further raise
the level of the ratios
2013
9M14E
LCR
ECB eligible securities at the end of 9M14
were €2.1 billion (6.5% of Total Assets),
slightly down QoQ as a result of the
anticipated repayment of retained bonds
issued by Credem and collateralized by a
government guarantee
170%
149%
150%
130%
124%
122%
110%
90%
70%
50%
2012
2013
9M14E
Source: internal estimate based on figures as at 30 September 2014
21
Solid Capital Base
Capital
Coefficienti
Ratios
Patrimoniali
Evolution
Common Equity Tier 1 Ratio: 11.29% (Fully phased 11.37%)
Total capital ratio: 13.65% (Fully phased 13.78%)
925
2,234.0
1,848.0
946
11.3%
2,273.1
1,850.8
500
996
1,000
2,288.6
1,500
13.7%
11.2%
11.0%
1,768.9
€ Million
2,000
13.7%
14.2%
2,500
0
2013
Common Equity Tier 1
1H14
Tier Total Capital
9M14
Excess Capital
The Comprehensive Assessment confirmed group’s solid capital position, with ratios in continuous
growth: CET1 was at 11.3% compared to 11% at the end of 2013
According to new regulatory framework, quarter’s Net Profit was not included in capital ratios
calculation, as the third quarter’s accounts are not subject to auditing
22
Disclaimer and Contacts
The manager responsible for preparing the company’s financial reports Mr. Paolo Tommasini of Credito
Emiliano S.p.A., declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance,
that the accounting information contained in this presentation corresponds to the document results, books
and accounting records.
***
This presentation includes certain forward looking statements, projections, objectives and estimates reflecting the current views of the management of
the Company with respect to future events. Forward looking statements, projections, objectives, estimates and forecasts are generally identifiable by
the use of the words “may,” “will,” “should,” “plan,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “goal” or “target” or the negative of
these words or other variations on these words or comparable terminology. These forward-looking statements include, but are not limited to, all
statements other than statements of historical facts, including, without limitation, those regarding the Company’s future financial position and results of
operations, strategy, plans, objectives, goals and targets and future developments in the markets where the Company participates or is seeking to
participate. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements as a prediction
of actual results. The Group’s ability to achieve its projected objectives or results is dependent on many factors which are outside management’s
control. Actual results may differ materially from (and be more negative than) those projected or implied in the forward-looking statements. Such
forward-looking information involves risks and uncertainties that could significantly affect expected results and is based on certain key assumptions. All
forward-looking statements included herein are based on information available to the Company as of the date hereof. The Company undertakes no
obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may
be required by applicable law. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf
are expressly qualified in their entirety by these cautionary statements.
Investor Relations Team
Daniele Morlini – Head of IR
[email protected]
+39 0522582785
Paolo Pratissoli
[email protected]
+39 0522583029
23