Group Results 2015
2015 Highlights � Strong volumes’ expansion compared to substantially stable volumes for the industry: � Loans up by 6% in the quarter (+€1.4 billion) and by 5.3% YoY (+€1.1 billion) compared to an industry’s growth of 0.1% � Direct Deposits from Customers and Retail Bonds up by 5.9% QoQ (+€1.1 billion) and by 7.0% YoY (+€1.3 billion) compared to the industry’s performance negative by 0.6%. AUM and Insurance Reserves still on the rise, by 14% YoY (+€3.4 billion) � All indicators related to the solidity of the Group improved: � LtD* down to 1.03 compared to 1.06 at the end of 2014 and to 1.10 at the end of 2013 � 86% of corporate loans concentrated to the 4 best ratings’ classes (historical peak) � Net NPLs Ratio (3.5%) decreasing continuously from 4.0% at the end of 2013 � CET1 ratio fully-phased at 12.3%** (13.3% on Credem Group perimeter) � Net profit up by 9.5% YoY despite the contribution of more than €31 million to the Resolution Fund and DGS (*) Loans to Customers net of Repos with Institutional and Loans to Group’s SPVs, Deposits includes Bonds to Institutionals (**) Referred to Credemholding’s supervisory prudential perimeter 2
Income Statement 4Q14 3Q15 4Q15 % vs. 4Q14 % vs. 3Q15 2014 2015 % y/y Euro, million Operating Income 261.1 248.2 267.8 2.5% 7.9% 1.068.3 1.127.0 5.5% Operating Income net of Trading 247.7 244.6 253.4 2.3% 3.6% 995.1 990.8 -0.4% and Performance Fees Operating Costs -167.1 -162.1 -172.0 2.9% 6.1% -654.8 -683.3 4.4% D&A -9.9 -10.3 -11.0 11.1% 6.8% -38.7 -40.8 5.4% 374.8 402.9 Net Operating Profit 84.1 75.8 84.8 0.8% 11.8% 7.5% Net Adj. To Loans -37.0 -18.2 -31.5 -14.9% 73.1% -114.9 -113.8 -1.0% Provision for Risks and Charges -3.3 -8.1 -0.2 n.a. n.a. -8.2 -17.7 n.a. Extraord. Income/Expenses 0.2 -0.9 -34.1 n.a. n.a. -0.2 -32.2 n.a. 251.5 239.2 Pre Tax Profit 44.0 48.6 19.0 -56.9% -61.0% -4.9% Taxes/Minorities -20.7 -17.7 -3.1 -85.0% -82.5% -99.7 -73.0 -26.8% 151.8 166.2 Net Profit for the Period 23.3 30.9 15.9 -32.0% -48.7% 9.5% • FY15 «core» Revenues were in line with 2014, thanks to commissions and fees, that offset the lower contribution of the securities’ portfolio due to the choice of reducing the exposure to Italian Government bonds. • Net Profit was up 9.5% YoY despite the provisions to the Single Resolution Fund and the Deposit Guaranteed Scheme (for €28.0 and €4.0 million, respectively, gross of the fiscal effect on the whole year). 3
Net Interest Margin (1/3) Quarterly Net Interest Margin � After hitting a minimum in the 2Q15, Net Interest Margin confirmed a QoQ growth also in 4Q15, € Million 130 mainly thank to a strong performance on l ending volumes . 120 123.6122.2125.6 119.4 � As for the customers’ spread , the continuous 117.0 110 111.2 efforts to reduce the cost of funding were not 106.2103.8 100 entirely sufficient to compensate the negative 90 effect caused by interest rates decrease. 80 70 1Q142Q143Q144Q141Q152Q153Q154Q15 Euribor and BTP/Bund: Spread Evolution Quarterly Customers’ Spread (Credem SpA management reporting) bps 0.30% 0.31% 0.4% 250 4.0 3.38 3.31 3.5 3.12 2.96 2.92 0.3% 200 0.17% 2.76 3.0 2.62 2.51 2.38 2.36 196 146 2.22 2.5 2.14 2.12 2.11 2.07 127 2.04 0.2% 150 121 116 159 2.0 154 103 0.1% 100 1.5 0.05% 0.01% -0.03% 1.00 0.08% 0.94 0.90 0.85 0.78 1.0 0.64 0.55 0.47 -0.09% -0.1% 50 0.5 0.0 -0.2% 0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Euribor 3 months Spread BTP vs. Bund (10 years) Spread Average Loans rate Average Deposits rate 4
Net Interest Margin (2/3) Evolution of Average Loan Rate Evolution of Average Deposit Rate (Credem SpA management reporting) (Credem SpA management reporting) % % 3.79 3.79 2.50 4.00 -0.46% 3.43 3.33 3.31 3.18 3.50 1.96 -0.60% -0.73% 2.00 -0.74% 3.00 2.70 1.68 2.51 -0.76% 2.50 1.50 1.30 -0.79% 1.22 1.21 2.00 0.92 -0.70% 1.00 -0.73% 1.50 0.61 0.47 1.00 0.50 0.50 - - 2013 2014 2015 4Q2015 2013 2014 2015 4Q2015 Credem: Average Deposits rate Industry: Average Deposits rate Credem: Average Loans rate Industry: Average Loans rate Evolution of Average Customers’ Spread � The aggressive strategy pursued by the (Credem SpA management reporting ) Group with the aim of increasing its market shares continued in 2015. As a result, the gap % 2.26 2.11 2.12 2.10 2.09 2.10 2.50 2.04 between the group and the Industry on 1.82 -0.03% -0.06% Average Loan Rate widened to 79bps at the 2.00 0.16% 0.29% end of the year ( compared to circa 45bps in 1.50 the past ) 1.00 � On the other hand, the higher reduction of 0.50 cost of funding compared to the system (from 70bps to 73bps QoQ) is not enough to 0.00 2013 2014 2015 4Q2015 offset loan rate evolution, affecting the spread Credem: spread Industry: spread Source: IBA Monthly Outlook January 2016 5
Net Interest Margin (3/3) Securities’ Portfolio Breakdown by Issuer � After the disposal of the Italian (Credem SpA management reporting) sovereign bonds realized in 1Q15, the portfolio has been repositioned 100% bringing the exposure to «Italy risk» 13% 90% from 67% at the end of 2014 to the 10% current 48% 80% 39% � Thank 56% to the strong portfolio’s 70% 62% diversification, about 40% of 60% securities are AAA or AA 9% 50% 60% Duration and breakdown by rating 40% 11% (Credem SpA management reporting) 10% 38% 30% 6 18% 16% 20% 100% 2% 4.9 10% 5 10% 17% 80% 15% 14% 13% 4 0% 49% 60% Other 3 2013 2014 1Q15 2015 BBB Other non-Italy Other Govies/ EFSF/ BEI 40% 2 A Other Italy Italian Govies 20% 39% AAA/AA 1 Banking Group 0% 0 securities’ 6,420 5,902 6,219 6,154 Rating Avg. Maturity portfolio (€ mln) distribution 6
Non Interest Income Non Interest Income: Quarterly Evolution 246.9 Performance Fees 250 Trading 200 97.1 163.1 150.8 € Million 154.1 141.7 138.9 137.0 133.8 Other 7.9 150 10.00 5 15.9 39.1 6.5 2.9 4.9 5.4 13.2 5.0 5.4 3.4 4.3 4.9 3.8 4.5 49.3 Banking Fees 48.9 52.2 48.6 100 47.9 52.5 48.4 49.5 24 7.6 8.6 11.5 13.4 11.6 9.7 Insurance Income 11.8 50 74.1 71.2 68.5 67.8 61.2 60.9 61.8 58.1 Management & Brokerage 0 Fees 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 NII net of Trading and Perform. Fees 123.9 127.4 124.7 128.3 146.8 136.0 133.4 136.4 Non Interest Income: YoY Comparison � Banking and Insurance Fees 2013 performed well in 4Q15 , whereas 600 494 452 AUM Fees were penalized in the 2014 500 425 400 quarter by higher commission 2015 +16% vs. 2013 300 expenses +38% vs. 2013 200 122 61 52 47 48 � Net Commissions continued to grow 37 100 19 18 20 0 significantly (+€42 million in 2015 and Net Fees Insurance Trading Other +€27 million in 2014) Income 7
AUM and Insurance Reserves Third Parties’ Products Breakdown by Asset AUM and Insurance Reserves Evolution Class (Group management reporting) 100% 30,000 28,056 20% 21% 24% 27,129 27,081 26,866 80% 24,617 25,000 +34% 60% 40% 45% 51% 20,923 40% 20,000 20% 39% 33% 24% 0% 1% 1% 1% 15,000 2013 2014 2015 2013 2014 1Q15 2Q15 3Q15 2015 Money Market Bonds Balanced/ Flexible Equity Mutual Funds and SICAVs Breakdown by Asset Class (Group management reporting) � AUM and Insurance Fees growth YoY was caused by the continuing expansion of 100% 6% 7% 7% volumes, that increased by 34% compared to 80% 33% 35% the end of 2013 and by 14% compared to the 42% end of 2014 60% � The volumes’ expansion is flanked by the 40% 49% 49% 44% positive effect coming from the asset mix , for 20% which the increasing incidence of 12% 9% 7% 0% flexible/balanced and equity products 2013 2014 2015 produces higher management fees Money Market Bonds Balanced/ Flexible Equity 8
Operating Costs Operating Costs: Quarterly Evolution Employees/ Networks € Million Employees 200 6,200 176 172 167 174 5,993 167 164 5,7635,899 162 6,000 157 5,740 5,800 150 5,5445,5195,6045,609 55 49 45 57 54 52 50 5,600 48 5,400 100 5,200 2008 2009 2010 2011 2012 2013 2014 2015 122 123 121 117 113 113 112 109 Financial Advisers 50 1,500 1,0021,006 885 0 827 795 785 1,000 770 750 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 500 Personell Costs Administrative Expenses 0 • Operating Costs trend (+4.4% YoY) is in line with expectation and coherent with a growth Creacasa and Salary Backed Loans strategy , even if operating costs increase is Agents progressing at a slower pace than in the recent 600 past (+4.8% YoY as at 9M15; +6.8% YoY as at 353 394 377 359 400 FY2014) 272 217 158 200 98 • The Group continued to support the commercial capabilities, hiring new professionals and 0 Financial Advisors 9
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