Med edioban banca ca 9M results as at 31 March 2018 Milan, 11 May 2018
Agen enda 1. Group results 2. Divisional results 3. Closing remarks Annexes 1. Quarterly segmental reporting tables 2. Glossary
Healthy thy growt owth and sust stain ainabi ability: lity: the he he heart t of MB’s busin usines ess s model el Once again best-ever results by revenues, GOP and net profit Revenues up 9% to € 1.8bn, diversified by income sources, fuelled by organic growth and M&A CoR stably at low level (59bps), asset quality confirmed excellent (Texas ratio @13%) GOP after LLPs up 19% to € 813m Net profit up 11% to € 682m ROTE adj. at 10% Robust franchise developing – NNM in 9M over € 3bn WM: scaling up with a sustainable revenue mix (FAs network tripled >200, strong organic growth, RAM acquisition closed) Consumer: excellent results as the “new normal” (quarterly net profit stabilized at record ~ € 80m, with 30% ROAC) CIB: fees at their highs (higher productivity and diversification) HF: A&L optimized, NII loss halved High capital generation CET1 up 100bps to 13.9%, after AIRB validation (+140bps) and RAM acquisition (-30bps) HEALTHY GROWTH EXCELLENT ASSET QUALITY STRONG CAPITAL Fees up 14% to € 457m NPLs to loans : gross 4.8%, net 2.2% CET1 at 13.9% 1 NII up 6% to € 1.014m BadLs to loans: gross 1.3%, net 0.4% Leverage ratio at 8.6% 1) Managerial calculation as at March 18 differs from that stated in the Common Reporting (COREP), as it includes the result for 3 the period (not subject to authorization pursuant to Article 26 CRR), which accounts for approx. 30bps of CET1
Last st 3M Strong ng accele eleratio ration n in WM development elopment Sound industrial rial perfo form rman ance ce Strong acceleration in WM development € 1.5bn NNM in the quarter, 50%:50% by affluent:private segment AUM/AUA up by € 4.7bn to € 36.5bn , now 58% of total TFA , driven by organic growth and M&A (RAM) Affluent: organic growth resumed (NNM by € 0.7bn) after one year spent working ok Barclays migration/integration 46 additional FAs, network now at 203 (tripled in 9M) Private&AM: organic growth continuing (NNM by € 0.8bn) , driven by Cairn and MBPB RAM acquisition closed ( € 4.2bn AUM) Healthy growth in P&L Optimization and strength in A&L NII at highest-ever level ( € 342m) CET1 at 13.9% after AIRB validation (up 140bps) on large corporate loans Fees at highest-ever level* ( € 156m) with basically equal contribution from WM and CIB RAM acquisition (down 30bps) CoR confirmed at lowest-ever level (60bps) LCR optimized at 160% (down 30pp QoQ, down 130pp YoY) Net profit at € 206m Loan/Deposit ratio at 83% with even without gains from disposals loans growing at € 40bn (up 1% QoQ, up 8% YoY) despite provisions to SRF ( € 26m) deposits stabilized at € 48bn (up 2% QoQ, down 2% YoY) * Excluding from 3Q17 € 47m fees linked to one large capital market deal 4
Franch nchise ise developmen elopment t delivering ivering best est NII a and Fees es 9M results as at March 2018 - Group results Section 1 Group revenues ( € m, 9M) Fees by quarter ( € m, 3M) 165 152 131 CAGR +9% 113 1,800 +9% 1,657 205 1,519 194 124 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17* 4Q17 1Q18 2Q18 3Q18 180 105 97 457 +14% 402 NII by quarter ( € m, 3M) 336 342 338 322 +6% 1,014 955 906 302 Mar16 Mar17 Mar18 Net interest income Fee income 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Trading income Equity acc. Quarter average 9M revenues up 9% following a positive long-term scale-up path driven by all sources. In 3Q : Fees recording highest ever level ( € 165m) , due to WM and CIB development NII consolidating solid growth ( € 342m) due to Consumer growth and Holding Functions optimization Positive trading result ( € 39m) , despite tough markets in 3Q, due to strong CMS activity * 3Q17 Fees: € 47m linked to one large capital market deal 5
Fees es scal aling ing up in size ze and sust stain ainabi abilit lity driven en by WM M & CI & CIB Group Fees by business 1 (9M, € m) CIB fees by quarter ( € m, 3m) March 16 March 17 March 18 75 64 62 +14% 57 +19% 41% 45% 50% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17* 4Q17 1Q18 2Q18 3Q18 € 457m 20% € 402m € 336m 23% 26% 24% 32% WM fees by quarter ( € m, 3m) 39% 64 62 51 WM fees (9M, € m) 34 144 185 97 Wealth Consumer Corporate & Investment Management Banking 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Banking Growth: fee up 14% YoY to € 457m, with 3Q record quarter at € 165m Higher quality and sustainability : 39% of fee income now from WM (mainly management fees), 41% from CIB CIB: fees at their highs due to higher productivity and diversification (SF, DCM and CF offsetting ECM) WM: scaling up for organic growth and enlarged area of consolidation (Esperia and RAM) 1. Calculated as % excluding HF 6 * 3Q17 Fees: € 47m linked to one large capital market deal
NII contin ntinuin uing g its s 5Y grow owth th driven en by Co Consu nsume mer r and ALM LM optim timizatio ation Treasury trend ( € bn) Group NII by business 1 (9M, € m) Group NII 9M change ( € m, % YoY) Group +6% +59 259% LCR 163% Consumer +37 +6% 17.0 CIB 19% (3,0) WM +11 +6% 0.6 (0,8) 13.8 Consumer € 1.014m 63% CIB -22 -10% WM 18% Loss HF +35 halved -50 0 50 100 Net Asset Funding Other Net treasury growth optimiz treasury Mar17 Mar18 NII has continued its last 5Y growth driven by Consumer and HF optimization Consumer up 6% due to 6% loan growth and margin resilience HF loss halved due to A&L optimization (reduced excess liquidity, TLTRO 1 reimbursed, lower CoF) WM up 6% on resilient deposit base and lower CoF CIB down 10% due to higher-ratings new business and margin pressure 1. Calculated as % excluding HF 7
asset quality : when no news is good news … 9M results as at March 2018 - Group results Section 1 Cost of risk by division (bps) NPLs ( “deteriorate”, € m ) and coverage (%) 201 56% 55% 55% 55% 1,000 50% 196 45% 800 Net NPLs 40% 941 892 865 600 NPLs coverage 35% 400 30% 59 June17 Dec17 Mar18 60 (23) Bad loans ( “sofferenze”, € m ) and coverage (%) (11) 73% 72% 70% 250 70% 200 Net Bad Loans 150 60% 3Q17 4Q17 1Q18 2Q18 3Q18 100 157 144 50% Bad Loans 143 Mar17 June17 Sept17 Dec17 Mar18 50 coverage - 40% CIB Group Consumer banking June17 Dec17 Mar18 NPLs constantly decreasing (well below € 0.9bn), both as stock (5% gross and 6% net YoY) and as % of loans (gross 4.8%, net 2.2%); coverage up at 56% BadLs at € 144m, down as stock (6% gross and 11% net YoY) and stable as % of loans (to 0.4%); coverage up to 73% Group CoR stable at 60bps, with writebacks again in WB and Consumer below 200bps; Texas ratio at 13% 8
… at all divisional levels 9M results as at March 2018 - Group results Section 1 NPLs Bad loans Coverage As % of loans ( “deteriorate” ) (“ sofferenze ”) 71% 73% -6% 2.5% 2.2% Mediobanca 921 865 56% 56% Group -11% 0.4% 0.4% 162 144 Mar17 Mar18 Mar17 Mar18 Mar17 Mar18 Mar17 Mar18 61% 57% Wealth 2.0% 1.7% Management 52% -5% 48% 1.2% 175 175 102 97 1.0% (WM) Mar17 Mar18 Mar17 Mar18 Mar17 Mar18 Mar17 Mar18 93% 94% 1.6% 1.5% Consumer Banking 73% 73% (CB) 185 186 0.1% 0.1% 16 14 Mar17 Mar18 Mar17 Mar18 Mar17 Mar18 Mar17 Mar18 95% Corporate & 2.6% 2.3% 71% Investment Banking -8% 384 4 49% 354 0 0% 0% 51% (CIB) Mar17 Mar18 Mar17 Mar18 Mar17 Mar18 Mar17 Mar18 7.6% 55% 51% 7.0% Leasing -15% 35% 33% 178 150 -17% 1.7% 40 1.5% 33 Mar17 Mar18 Mar17 Mar18 Mar17 Mar18 Mar17 Mar18 Bad Loans NPLs 9
GOP UP 19% to ov over er € 0.8bn bn 9M results as at March 2018 - Group results Section 1 MB Group GOP by division (9M, € m) +19%, +17% adj¹ 20 31 - 63 15 (2) 813 686 +29% +10% +20% n.m. +14% adj. 1 GOP Wealth Consumer Corporate & Holding Principal GOP 9M - Mar17 Management Banking Investment Banking Functions Investing 9M - Mar18 PI RCB RCB Divisions achieved positive GOP trend on revenues growth, cost control, and loan loss provision reductions CIB Efficiency preserved, with Group cost/income ratio at 45% 1. Adjusted: like for like, including acquisitions 10
CET1 ratio io at 14%, strong rong capit pital l gener nerati ation on 9M results as at March 2018 - Group results Section 1 RWA trend ( € bn) CET1 trend (bps) -10% +100bps 13.9% 52.1 +140bps 0.5 (0.2) 47.3 +25bps 12.9% (5.1) -15bps -10bps -30bps Dec17 Retained Business PI RAM CIB AIRB Mar18 Dec17 Business PI CIB AIRB Mar18 earnings RWA impact¹ acquisition growth impact¹ validation 80% 100% growth phase-in phase-in CET1 up 100 bps to 13.9%, including 10bps organic growth (retained earnings financing business development with RWA up € 0.5bn) 140bps in AIRB benefits on corporate portfolio. AIRB savings consistent with Basel IV – FIRB world 30bps accounted for by RAM acquisition 10bps absorbed by higher AG deduction (to be recovered after AG dividend payment) 1. PI impact related to increased AG deductions (from € 1.5bn at Dec17 to € 1.7bn at March18) due to higher AG book 11 value (from € 3,146m at Dec.17 to € 3,259m) and fully phased rules (deduction from March18 is entirely from CET1).
Agen enda 1. Group results 2. Divisional results 2A. Wealth Management 2B. Consumer Banking 2C. Corporate & Investment Banking 2D. Principal Investing 2E. Holding Functions 3. Closing remarks
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