An introduction to the UBI Banca Group 01_Presentazione_III… · For further information about the...
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An introduction to the UBI Banca Group January 2017
Transcript of An introduction to the UBI Banca Group 01_Presentazione_III… · For further information about the...
An introduction
to the UBI Banca Group
January 2017
This document has been prepared by
Unione di Banche Italiane Spa (“UBI”) for
informational purposes only.
It is not permitted to publish, transmit or
otherwise reproduce this document, in
whole or in part, in any format, to any third
party without the express written consent
of UBI and it is not permitted to alter,
manipulate, obscure or take out of context
any information set out in the document.
The information, opinions, estimates and
forecasts contained herein have not been
independently verified and are subject to
change without notice.
They have been obtained from, or are
based upon, sources we believe to be
reliable but UBI makes no representation
(either expressed or implied) or warranty
on their completeness, timeliness or
accuracy.
Nothing contained in this document or
expressed during the presentation
constitutes financial, legal, tax or other
advice, nor should any investment or any
other decision be solely based on this
document.
This document does not constitute a
solicitation, offer, invitation or
recommendation to purchase, subscribe or
sell for any investment instruments, to
effect any transaction, or to conclude any
legal act of any kind whatsoever.
This document may contain statements
that are forward-looking: such statements
are based upon the current beliefs and
expectations of UBI and are subject to
significant risks and uncertainties. These
risks and uncertainties, many of which are
outside the control of UBI, could cause the
results of UBI to differ materially from those
set forth in such forward looking
statements.
Under no circumstances will UBI or its
affiliates, representatives, directors,
officers and employees have any liability
whatsoever (in negligence or otherwise) for
any loss or damage howsoever arising
from any use of this document or its
contents or otherwise arising in connection
with the document or the above mentioned
presentation.
For further information about the UBI
Group, please refer to publicly available
information, including Annual, Quarterly
and Interim Reports.
By receiving this document you agree to be
bound by the foregoing limitations.
Please be informed that some of the
managers of UBI involved in the drawing
up and in the presentation of data
contained in this document possess stock
of the bank. The disclosure relating to
shareholdings of top management is
available in the half year and the annual
reports.
Methodology
All data are as at 30th September 2016
unless otherwise stated.
Disclaimer
Page 2
Agenda
The UBI Banca Group
Background
UBI Banca and its Peers
UBI Banca’s profile in a snapshot
Key figures as at 30th September 2016
The Group Structure
Presence in Italy
The UBI Banca International Network
Contacts
Annexes
Page 3
Background
1888 Birth of the “Banca San Paolo di Brescia” (BSPB)
1883 Birth of the “Credito Agrario Bresciano” (CAB)
1963 BSPB acquires “Banca di Valle Camonica” (BVC)
1998 Merger of CAB and BSPB with the creation of “Banca Lombarda” as parent company and contribution of branch network of CAB and BSPB to “Banco di Brescia”0
2000 Acquisition of “Banca Regionale Europea”* by Banca Lombarda. The Group takes the name of “Banca Lombarda e Piemontese Group”
Birth of the “Banca Mutua Popolare della Città e Provincia di Bergamo”, subsequently renamed “Banca Popolare di Bergamo” (BPB) 1869
Birth of the “Società per la Stagionatura e l’Assaggio delle Sete ed Affini” subsequently renamed “Banca Popolare Commercio e Industria” (BPCI) 1888
Merger of BPB and “Credito Varesino” (BPB-CV) 1992
Acquisition of “Banca Popolare di Ancona” (BPA) by BPB-CV. Birth of the BPB-CV Group 1996
Acquisition of “Banca Carime” by BPCI 2001
Birth of the “BPU Banca Group” from the integration of BPB-CV and BPCI 2003
1st April 2007 Birth of
“UBI Banca” following the merger of the
BPU Banca Group and the
Banca Lombarda e Piemontese
Group
* Banca Regionale Europea was created in 1994 following the merger between “Cassa di Risparmio di Cuneo” and “Banca del Monte di Lombardia” Page 4
1992 CAB acquires “Banco di San Giorgio” (BSG)
Unione di Banche Italiane Spa (“UBI Banca”) was formed following the merger of the skills and experience of
the BPU Banca and Banca Lombarda e Piemontese Groups (1st April 2007)
The history of UBI Banca is marked by a succession of mergers which have led banks with strong roots in local
communities to the significant reality of today
14 October 2016
UBI EGM will decide on the
transition from the federal
model to the Single Bank
12 October 2015
UBI is the first popolare bank to become a Joint Stock Company
Background
Since 4th November 2014 UBI Banca is under the ECB’s Single Supervisory Mechanism.
UBI Banca is a joint stock company as from the 12th of October 2015. The transformation from co-operative was approved by a general meeting of the shareholders on 10th October 2015, after a recent Law dated March 2015 established that cooperative banks with total assets above 8€ bln must transform into Joint Stock Companies.
UBI Banca is listed on the Milan Stock Exchange and included , among others, in the FTSE/MIB and in the FTSE4Good indexes.
UBI Banca’s governance model is based on a “dualistic” system. Under this dualistic governance system, the shareholders appoint a Supervisory Board (strategy and supervision). The current Supervisory Board was appointed on 2nd April 2016 by the General Meeting of Shareolders of UBI Banca (15 members; former 23) for the 3-year period 2016-18.
The Supervisory Board, in turn, appoints a Management Board (day-by-day management of the bank), currently composed by 7 members (former 9 members).
Page 5
* Total shareholders (voting and non voting) number around 155,000
Market Capitalisation* as at 19th January 2017
(EUR bln) Source: “Il Sole 24Ore” – Italian Financial Newspaper –
Dated 20th January 2017
40.9
16.9
2.7
4.3
# 4
3.5
UBI Banca and its Peers
Page 6 Source: Press releases and periodic reports
81
875
714
63
160
122 50
Total assets as at 30th September 2016 (€ bln)
6,592
5,235
1,538
1,176 655
2,043
1,733
No. of branches as at 30th September 2016
Customer loans as at 30th September 2016 (€ bln)
481
365
78
44 34
105
82
592
380
46
105 85
37
Total direct funding as at 30th September 2016 (€ bln)
# 5
# 4
# 5
# 4
113
UBI Banca’s profile in a snapshot:
predominant retail business, solid capital base and low risk profile
Figures as at 30 September 2016, unless otherwise stated
* As disclosed on 12th December 2016
7
Strong
competitive
positioning
■ 1,532 branches in Italy and 6 abroad, with a market share of 5.2% serving approx. 3.8 million clients
■ 4th largest bank in Italy by customer lending and direct funding
■ Focus on Northern Italy where 81.2% of loans to customers and 74.1% of customer deposits are generated
(Data as at 30th June 2016)
Solid Capital
and Balance
Sheet Position
■ Capital ratios as at 30.09.2016, after booking over 95% of the new Business Plan costs (€ 1.25 bln gross; €
0.84 bln net)
CET 1 ratio phased in: 11.68% vs. 7.50% SREP requirement for 2017*, representing a buffer of 4.18 p.p.
CET 1 ratio fully loaded under Basel 3 rules: 11.28% (as from 21 November 2016, FL CET1 at approx.
11.6%, including repurchase of minorities through dedicated capital increase. FL CET1 does not yet
include use of DTA on shortfall, estimated at approx. +40bps.)
■ Basel 3 Leverage ratio at 5.86% phased in, 5.68% fully loaded
■ RWAs density of c. 53%
Good Asset
Quality
■ 77.1% of Performing Exposures is low risk (73.6% in Dec 2015)
■ Good asset quality compared to the Italian banking system. Gross NPEs/total gross loans at 15.2% (10.2%
net). New inflows to NPE from performing loans down by 50.7% vs 9M2015.
■ Coverage up to 45.1% for NPEs and to 58.6% for Bad Loans (including write-offs), respectively +79 bps and +63
bps vs. Dec 2015
■ Strong liquidity position framework with total eligible assets at € 29.3 bln (~58% of current accounts and
deposits) and both LCR and NSFR >100%
■ Funding mainly from own customer base (over 80%)
■ Current accounts and deposits from ordinary customers at € 50.3 mln (+5.5% vs. December 2015)
Funding and
Liquidity
Low Risk
Profile
■ Focus on traditional banking activities: Customer Loans / Total Assets at 72.3%
■ Financial Assets / Total Assets: c. 16%. Italian Govies represent 13.2% of total assets
Page 8
Key figures as at Sept 2016
11,68% 11,28%
7,50%
CET 1 phased in
CET 1 fully loaded
SREP requirement
STRONG CAPITAL
Buffer 418 bps (378 bps vs FL)
VOLUMES
FINANCIAL ASSETS & LIQUIDITY ECONOMICS
Loan book at 82 bln/€: growth in M/L term component at 55.7 bln/€ compared to 54.9 in Dec 2015 (notwithstanding almost 200 mln/€ per quarter of loans in “run off”)
Assets under management + Bancassurance, amounting to 52.8 bln/€, (+8.9% vs Dec 2015)
Deposits and current accounts to 50.3 bln/€, up both compared to Dec 2015 (+5.5%) and to Jun 2016 (+2.4%)
Further downsizing of Italian Govies Portfolio: 15 bln/€ (-18% vs Dec 2015) within UBI’s diversification strategy
A very high proportion of the portfolio consists of HQLA (High Quality Liquid Assets), with govies accounting for 81.5% of net financial assets
Total eligible assets at 29.3 bln/€, over 55% of current accounts and deposits, of which 16.6 bln/€ unencumbered
MAIN INCOME STATEMENT ITEMS in 9M16 (€ mln)
Core revenue: NII + Net fees & commissions 2,123
Operative income 2,334
Operating expenses (1,553)
Net operating income 781
Profit (loss) for the period before BP impact** 85
Business Plan impacts (840)
Profit (loss) for the period after BP impact (755)
Dividend paid in May 2016 at 11 €/cent. The Group has always paid cash dividend throughout the crisis
* Technical Lending ** Nearly 100% of Business Plan one off costs have been booked in 2016. The Business Plan was launched on 27Th June 2016 and covers a time span from 2015 to 2020.
Page 9
The Business Plan provides for the merger of 7 banking subsidiaries of the Group into UBI Banca and for a new organisational model articulated into macroareas
The Group Structure (1/2)
Subsidiaries
to be merged into
UBI Banca
Page 10
Mergers completed on 21st November: IT MIGRATIONS • 450 branches and customer facilities • 800,000 customers • 520,000 current accounts • 600,000 custody accounts • 2,500 employees involved • Call center strengthened: answer time 17secs on 21/11 down
to 5secs on 23/11 • No significant inconvenience to customers. MINORITIES • Minorities repurchased through dedicated capital increase,
positive impact on CET1
BPCI and BRE were successfully merged into UBI Banca on 21st November. The remaining
subsidiaries to be merged into UBI Banca within February 2017
287 branches
192 branches
64 branches
21 branches, ~ 808 financial advisors
100%
74.79%
100%
98.70%
202 branches
211 branches
99.58%
99.99%
347 branches 100%
204+3* branches
83.76%
Network Banks
SINGLE BANK PROJECT
1Q 2017
4Q 2016
The Group Structure (2/2)
On 18th Jan 2017 the contract for the
purchase of three banks in central Italy
was signed. See press release as of 12th
Jan 2017 for further detail
Agenda
UBI Banca International Network
Presence in the world
Page 11
Presence in the world
Luxembourg
• UBI Banca International (1)
• UBI Trustee SA
• UBI Management Co SA
Page 12
Munich
UBI Banca International
Branch (2)
Krakow
UBI Factor Branch
Vienna
Business Consultant
Moscow
Representative Office
Mumbai
Representative Office
Hong Kong
Representative Office
São Paulo
Representative Office
Madrid
UBI Banca International
Branch (2)
Antibes, Menton, Nice
UBI Banca Branches
Shanghai
Representative Office
Shanghai
Zhong Ou Asset Management
Company Co. Ltd (3)
Casablanca
Representative Office
New York
Representative Office
(1) (2) On 28th April 2016 UBI Banca signed a contract for the sale of 100% of the share capital of UBI Banca International S.A. to EFG International AG. Upon completion of the transaction (expected during the first half of 2017), Madrid and Munich branches will become UBI Banca branches. (3) Joint-venture in which UBI Banca holds 35% of the total share.
Dubai
Representative Office
Agenda
Contacts
UBI Banca Correspondent Banking and International Network
Representative Offices Contacts
Page 13
UBI Banca
Page 14
Isabella Moavero Head of Financial Institutions
Lorenzo Tassini
Head of Correspondent Banking
• Indian Subcontinent, China & Far East, Oceania
Alistair Newell Relationship Manager
• North America, Central America, South America, Caribbean, Israel
Ernst Rolf Hartmann Relationship Manager
• Turkey, Middle East, Africa Lorenzo Tassini
Relationship Manager [email protected]
• Europe & CIS Countries
Maria Lagonigro
Relationship Manager [email protected]
• Global Players – Responsible
for relationships with multi-regional banking groups & Special Projects
Marco Camozzi Relationship Manager
Paolo Vitali
Head of International Network
REPRESENTATIVE
OFFICES
(See next page for contacts)
STAFF
Elena Rustico
Jasmina Dzindo
Antonella Taiocchi
Elena Voronova
Representative Offices Contacts
MUMBAI
Mr Andrea Croci
Tel. +852 2878 7393
Fax +852 2878 7932
HONG KONG
Ms Rajeshree Balsari
Tel. +91 22 22023601
Fax +91 22 22023603
SHANGHAI
Ms Lu Bo
Tel +86 21 61675333
Fax +86 21 61675582
MOSCOW
Mr Ferdinando Pelazzo
Tel. +7 495 725 4466
Fax +7 495 725 4465
SAO PAULO
Mr Isidoro Guerrerio
Tel. +55 11 3063 0454
Fax +55 11 3063 3785
VIENNA (Business Consult.)
Ms Annick Stockert
Tel. +43 1 514 37 26
Fax +43 1 514 37 60
Page 15
DUBAI
Mr Luigi Landoni
Tel +971 4 3277289
Fax +971 4 3277290
NEW YORK
Mr Andrea De Benedittis
Tel +1 646 871 7600
Fax +1 646 205 4006
Mr Abdelkrim Sbihi
Tel +212 520 48 12 70
Fax +212 520 48 12 72
CASABLANCA
Agenda
Annex
UBI Banca’s consolidated results as at 31st December 2015
UBI Banca’s consolidated results as at 30th September 2016
Other main Group Companies
Group BIC codes
Page 16
Figures in € mln9M15 9M16
% change
9M16 vs
9M153Q15 2Q16 3Q16
% change
3Q16 vs
3Q15
% change
3Q16 vs
2Q16
Net interest income 1,245.8 1,133.1 (9.0%) 398.7 378.0 367.6 (7.8%) (2.8%)
Net commission income 969.5 988.8 2.0% 300.5 330.3 321.4 7.0% (2.7%)
Dividends and similar income 8.8 9.7 11.0% 3.5 8.1 1.1 (67.0%) (85.9%)
Profits of equity-accounted investees 23.2 18.9 (18.2%) 3.6 6.7 7.0 95.1% 4.3%
Net result from finance 138.9 106.3 (23.5%) 27.8 66.9 23.8 (14.6%) (64.5%)
Other income items 80.8 77.0 (4.7%) 24.2 25.5 24.8 2.5% (3.0%)
Operating income 2,467.1 2,334.0 (5.4%) 758.2 815.5 745.6 (1.7%) (8.6%)
Staff costs (972.7) (953.8) (1.9%) (318.0) (319.3) (314.7) (1.0%) (1.4%)
Other administrative expenses (454.6) (493.4) 8.5% (141.6) (155.5) (166.1) 17.3% 6.8%
Net impairment losses on property, equipment and
investment property and intangible assets(114.7) (106.0) (7.6%) (37.0) (35.7) (34.3) (7.3%) (4.0%)
Operating expenses (1,542.1) (1,553.2) 0.7% (496.6) (510.5) (515.0) 3.7% 0.9%
Net operating income 925.0 780.8 (15.6%) 261.6 304.9 230.6 (11.9%) (24.4%)
Net impairment losses on loans (557.6) (522.8) (6.2%) (168.5) (200.1) (167.4) (0.7%) (16.4%)
Net impairment losses on other financial assets and
liabilities(6.4) (50.9) n.s. (3.1) (50.7) (0.4) (87.4%) (99.2%)
Net provisions for risks and charges (47.8) (30.2) (36.8%) (18.6) (20.3) (3.5) (81.0%) (82.5%)
Profits (losses) from disposal of equity investments 0.4 1.9 n.s. 0.3 1.2 0.3 13.0% (71.8%)
Pre-tax profit from continuing operations 313.6 178.9 (43.0%) 71.7 35.0 59.6 (16.9%) 70.1%
Taxes on income for the period from continuing
operations(127.8) (72.3) (43.4%) (28.6) (23.2) (14.7) (36.6%)
Profits/losses for the period attributable to non-
controlling interests(22.6) (21.4) (5.5%) (5.5) (6.3) (7.7) 23.3%
Profit for the period before Business Plan impacts 163.2 85.2 (47.8%) 37.6 5.6 37.2 (1.1%) n.s.
Net impairment losses on loans with shortfall
absorption
(586.0) n.s. (586.0)
Charges for exit incentives
(net of tax and non-controlling interests)
(1.2) (207.9) n.s. (207.2) (0.2)
Brands impairment (37.9) n.s. (37.9)
Charges for Single Bank project (7.9) n.s. (3.4) (4.5) 29.7%
Profit (loss) for the period 162.0 (754.5) n.s. 37.6 (829.0) 32.5 (13.5%) n.s.
Page 17
The UBI Banca Group: consolidated results as at 30th Sept 2016
97% of 2019/20 Business Plan impacts already booked in 9M16 (-840 mln/€ net)
PPA allocated line by line
2019/2020 Business Plan impacts for 840 mln/€ (net of taxes) corresponding to 97% of total costs
(493.4)*
(50.9)**
The overall trend for operating income is forecast to grow compared
with the third quarter, with an improvement in core revenues and a smaller contribution from trading and hedging activity
The actions undertaken starting from 2015 allow us to confirm the objective of containing recurring operating expenses for the year 2016 in line with those of the previous year, absorbing the increase in costs relating to the ordinary contributions to the Resolution Fund and the Deposit Guarantee Scheme
The particularly low risk attaching to the performing portfolio and the continuation of the reduction in inflows of new non-performing loans, should confirm the expected reduction in loan losses in the fourth quarter of 2016 compared with the same period in 2015
* It includes the one-off elimination of residual credit risk connected with financial instruments resulting from one NPE position (43.4 mln/€)
** It Includes 26.4 mln/€ contribution to DGS (in 9M plus 31.9 mln/€ contribution to SRF* booked in 1Q16)
Outlook for ordinary operations (net of non recurring items)
Page 18
The UBI Banca Group: consolidated results as at 31st December 2015
PPA allocated line by line
FY15 profit net of non-recurring items: +33.2% YoY
195.1 mln/€ in FY15 vs. 146.5 mln/€ in FY14
MAIN INCOME STATEMENT ITEMS
Figures in € mlnFY14 FY15
% change
FY15 vs FY14
Net interest income 1,818 1,631 (10.3%)
Net commission income 1,227 1,300 6.0%
Net result from finance 200 291 45.6%
Profits of equity-accounted investees 37 35 (4.7%)
Other income items 128 114 (11.1%)
Operating income 3,410 3,371 (1.1%)
Staff costs (1,302) (1,295) (0.5%)
Other administrative expenses (635) (727) 14.5%
Net impairment losses on property, equipment and investment
property and intangible assets(171) (153) (10.7%)
Operating expenses (2,108) (2,175) 3.2%
Net operating income 1,301 1,196 (8.1%)
Net impairment losses on loans (929) (803) (13.6%)
Net impairment losses on other financial assets and liabilities (9) (17) 95.0%
Net provisions for risks and charges (9) (3) (67.2%)
Profits (losses) from disposal of equity investments 94 0 (99.5%)
Pre-tax profit from continuing operations 449 374 (16.8%)
Taxes on income for the period from continuing operations (187) (161) (13.8%)
Profits for the period attributable to non-controlling interests (29) (30) 2.9%
Impairment on tangible and intangible assets
(net of tax and non-controlling interests)(883) (3)
Charges for exit incentives
(net of tax and non-controlling interests)(76) (63) (17.8%)
Profit (loss) for the period (726) 117 n.s.
Profit for the period NET OF NON-RECURRING ITEMS 147 195 33.2%
A
B
• Net interest income decreased primarily following a change in the composition and a reduction in the size of the securities portfolio (AFS Italian Govies).
• Operating expenses are inclusive of the ordinary (€ 33.4 mln) and extraordinary contributions (€ 65.3 mln) to the Resolution Fund and to the Deposit Guarantee Scheme. On a like-for-like basis with respect to 2014, and that is excluding all the above contributions, costs fell further by 1.7% compared with 2014.
A
B
Other main Group Companies
Page 19 Data as at 30.09.2016 unless otherwise stated
Asset Management – Joint Venture with Prudential US
● UBI Pramerica develops, manages, markets and distributes a wide range of financial
products and services dedicated to private customers and institutions. It has been
awarded various international prizes.
● 47.5 bln EUR in Assets Under Management
● UBI Leasing offers its clients financing for asset acquisition such as: instrumental
leasing, real estate leasing, car leasing, aero naval leasing as well as specific
insurance and accessory services.
● 6.4 bln EUR in net Loans to Customers
● UBI Factor offers highly specialized factoring services to companies and public
administrations. The company is based in Milan with a capillary structure across the
national territory and is present also in Poland with its Krakow subsidiary. Since 1984
UBI Factor is part of the Factors Chain International network which allows it to retain a
presence in more than 75 countries and with more than 270 foreign partners.
● 6.5 bln EUR Turnover; 2.3 bln EUR net Loans to Customers
Recent merger between IW Bank (market leader in online trading in Italy with a strategy
based on three fundamental objectives: continuous product/service innovation, constant
development of technological platforms, professional support for the customer) and UBI
Private Investment, the network of financial agents of the UBI Group
Group BIC codes
Page 20
BEPOIT21
BCABIT21
BPAMIT31
CARMIT31
BVCAIT21
BLPIIT21
UBIBESMM
BEPODEMM
BLOPIT22
CABILULL Madrid Branch
Munich Branch
BIC ACTIVE
BIC NON ACTIVE
* On 28th April 2016 UBI Banca signed a contract for the sale of 100% of the share capital of UBI Banca International S.A. to EFG International AG. The transaction is expected to be completed during the first half of 2017.
*
