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Bper Banca
Investor Presentation • Feb 7, 2025
4395_ip_2025-02-07_abbbc1cf-8c72-419e-a03b-23bdf2b17dfb.pdf
Investor Presentation
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FY24 Results Presentation
MILAN | FEBRUARY 7TH | 2025
Disclaimer
This document has been prepared by "BPER Banca" solely for information purposes, and only in order to present its strategies and main financial figures.
The information contained in this document has not been audited. No guarantee, express or implied, can be given as to the document's contents, nor should the completeness, correctness or accuracy of the information or opinions herein be relied upon. BPER Banca, its advisors and its representatives decline all liability (for negligence or any other cause) for any loss occasioned by the use of this document or its contents. All forecasts contained herein have been prepared on the basis of specific assumptions which could prove wrong, in which case the actual data would differ from the figures given herein. No part of this document may be regarded as forming the basis for any contract or agreement. No part of the information contained herein may for any purpose be reproduced or published as a whole or in part, nor may such information be disseminated.
The Manager responsible for preparing the Company's financial reports, Marco Bonfatti, declares, in accordance with art. 154-bis, para. 2, of the "Consolidated Financial Services Act" (Legislative Order No. 58/1998), that the accounting information contained in this document corresponds to documentary records, ledgers and accounting entries.
Marco Bonfatti
Manager responsible for preparing the Company's financial reports
METHODOLOGICAL NOTE
Figures included in the tables shown in this document may not add exactly due to rounding differences.
Starting from the closing of the first quarter 2024 accounts, the Income Statement underwent the following reclassification changes:
- Gains (losses) of equity investments measured under the equity method are presented as a separate line in Operating Income (former Gains (Losses) on investments);
- Contributions to systemic funds are shown under Profit (Loss) from current operations.
Based on the same overall net profitability, the margins in the Income Statement as at 31 December 2024 were affected by the reclassification of some cost/income components. More specifically:
- Net commissions included €35.5 m worth of charges for payment services provided (former Other administrative expenses);
- Other administrative expenses were offset within the same item by €16.7 m in recovery of costs for services ancillary to lending (former Commission income);
- Staff costs included €17.6 m in business trips and training charges (former Other administrative expenses);
- gross effects from the use of provisions for risks and charges set aside in prior periods (former Other operating expenses/Reversal of provisions for risks and charges) were directly offset within the same item by €17 m. In the interest of comparability of results, similar reclassifications have been made for the comparative reporting periods.
BPER Banca S.p.A., Head Office in Via San Carlo 8/20, Modena – Tax Code and Modena Companies Register No. 01153230360 – Company belonging to the BPER BANCA GROUP VAT, VAT No. 03830780361 – Share capital Euro 2,121,637,109.40 – ABI Code 5387.6 – Register of Banks No. 4932 – Member of the Interbank Deposit Guarantee Fund and of the National Guarantee Fund – Parent Company of the BPER Banca S.p.A. Banking Group – Register of Banking Groups No. 5387.6 – Tel. +39 059.2021111 – Telefax +39 059.2022033 – e-mail: [email protected] – Certified e-mail (PEC): [email protected] – bper.it – group.bper.it
Agenda
Solid Revenues growth and sound profitability in FY24
Delivered higher results in FY24 with Net Profit(1) up by 4.1% FY/FY
Core Revenues up by 4.1% FY/FY and operational efficiency stable with Cost/Income(2) at 50.3%
Strong Asset Quality profile confirmed with an improved Cost of Risk
Strong Balance Sheet, higher Capital Ratios thanks to Organic Capital Generation of 319bps in FY24
Proposed cash dividend per share of Euro 60 cents (+100% FY/FY) equal to 61% Payout Ratio of Net Profit Stated
(1) Net Profit is adjusted according to slide 27. (2) C/I is calculated on Operating Costs (adjusted) as shown on slide 27 and excluding €34.3 m related to a software depreciation in 4Q24. (3) RoTE calculated on Net Profit (adjusted) as shown on slide 27. (4) CET1 Ratio calculated including the portion of profit for the year not allocated to dividends, i.e. bringing forward in advance the effects of the ECB's authorisation to include these profits in "Own Funds" pursuant to art. 26, para. 2 of the CRR.
Net Profit in FY24 mainly driven by Core Revenues and lower Cost of Risk
| FY24 | FY/FY | 4Q24 | Q/Q | Y/Y | |
|---|---|---|---|---|---|
| Total Revenues | 5,574.6 | +1.8% | 1,445.6 | +5.4% | -1.2% |
| Core Revenues o/w NII |
3,376.9 | +3.9% | 853.7 | +1.5% | -1.9% |
| o/w Net Commission Income | 2,058.4 | +4.5% | 555.8 | +13.9% | +7.5% |
| Operating Costs (adjusted) | -2,840.7 | +3.6% | -796.5 | +22.9% | +2.7% |
| Net operat. Income (adjusted) | 2,733.9 | -0.0% | 649.1 | -10.2% | -5.6% |
| LLPs | -333.3 | -23.1% | -79.0 | -0.1% | +10.3% |
| Profit before tax (adjusted) | 2,161.7 | +7.1% | 469.3 | -24.9% | -16.5% |
| Net Profit (adjusted) | 1,406.9 | +4.1% | 296.3 | -28.2% | +12.2% |
| Net Profit (stated) | 1,402.6 | -7.7% | 265.6 | -35.7% | -38.6% |
P&L Key Figures (€m) Net Profit stated vs adjusted (€m)
Strong achievements in FY24 exceeding Guidance 2024
(1) Operating Costs, C/I and Net Profit are adjusted according to slide 27. (2) C/I calculated on Operating Costs adjusted as shown on slide 27 and excluding €34.3 m related to a software depreciation in 4Q24. (3) Calculated as: Net Profit adjusted (as shown on slide 27) / (Average Tangible Book Value - Minorities interests - AT1 - Dividends accrued).
Agenda
B:Dynamic | Full Value 2027
B:Dynamic | Full Value 2027 well on track
KEY HIGHLIGHTS
Pillar 1
- Strong performance in Bancassurance, with fees up by 29.6% FY/FY
- Sound growth in "Wealth Management" fees up by 7.1% FY/FY
- Significant growth in Customer Loans (+2.2% Y/Y) with new lending of €17.4 bn
Pillar 2
▪ Strict control of Operating Costs. Optimisation of BPER's network footprint, with 77 branches closed in FY24, mostly in 4Q24
Pillar 3
▪ Strong focus on balance sheet and capital ratios
Pillar 4
- Technology, Security & AI: initiatives launched. Capex will be deployed according to BPER's Plan
- ESG Commitment: upgrade of ESG Ratings and inclusion in FTSE4Good index
- Organization & People: Among the "Top Employers in Italy in 2024" for the sixth consecutive year; launch of "BPER Corporate Academy" with innovative training solutions for all the employees
Agenda
B.Dynamic | Full Value 2027
Group results
Remarkable performance in Core Revenues in FY24
| Total Revenues (quarterly) (€m) | ||||||||
|---|---|---|---|---|---|---|---|---|
| 8.6% | 8.8% | 9.3% | 9.2% | 9.5% | 9.6% | 9.6% | 9.5% | |
| 1,320.1 | 1,329.1 | 1,364.6 | 1,462.9 75.4 |
1,361.2 | 1,396.9 | 1,371.0 | 1,445.6 36.2 |
9.0% 8.0% |
| 97.9 496.2 |
30.5 479.6 |
51.8 476.3 |
517.2 | 18.8 498.7 |
42.0 516.0 |
42.3 487.9 |
555.8 | 7.0% 6.0% 5.0% |
| 726.0 | 819.0 | 836.5 | 870.3 | 843.6 | 838.9 | 840.8 | 853.7 | 4.0% 3.0% 2.0% 1.0% |
| 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 | 0.0% |
| NII Q/Q key drivers (€m) |
Net Commission Income | Div./Trad./Other | Net Revenues/RWA | (1) | ||||
| 1,371.0 | +67.8 | 1,445.6 | ||||||
KEY HIGHLIGHTS
Core Revenues
- In FY24, Core Revenues at €5.4 bn, up by 4.1% FY/FY, mainly thanks to:
- NII positive performance (+3.9% FY/ FY) mainly driven by higher commercial spreads, combined with an improved funding mix
- Strong growth in Commission Income (+4.5% FY/FY) mainly driven by AuM and Bancassurance products
- In 4Q24, Core Revenues at €1.4 bn, strongly up by 6.1% Q/Q, mainly driven by:
- Positive performance of NII (+1.5% Q/Q) thanks to volumes increase and non commercial activities
- A significant Commission Income growth (+13.9% Q/Q) thanks to the strong performance of all Wealth Management components and Bancassurance
(1) Net Revenues calculated as: Operating Income excluding Other operating expense/income net of LLPs. Net Revenues shall be considered cumulative for the period and annualised. The RWA stock shall be considered point in time as the date of closing of the reporting period.
NII positive performance mainly driven by commercial spreads and improved funding mix in FY24
NII (quarterly) (€m)
NII
- In FY24, strong NII at €3.4 bn (+3.9% FY/FY) mainly driven by commercial spread increase, benefitting from higher commercial rates in the first part of the year, combined with an improved funding mix
- In 4Q24, NII grew by 1.5% Q/Q to €853.7 m, thanks to volumes increase and non commercial activities
Commercial Rates
▪ During the quarter, Commercial Spread flat in a decreasing interest rates environment
NII Sensitivity
▪ Interest Rates sensitivity: +/-100 bps equal to approx. €165 m, basically stable compared to the previous quarter
-1.9% Y/Y
FY24 Net Commissions up by 4.5% FY/FY
KEY HIGHLIGHTS
Net Commission Income
- In FY24, Commission Income up at €2.1 bn (+4.5% FY/FY) mainly driven by AuM and Bancassurance products
- In FY24, Bancassurance performance fees at €31.1 m (+37.5% FY/FY) thanks to positive insurance sales
- In 4Q24, Fees were strongly up by 13.9% Q/Q (+7.5% Q/Q excluding Bancassurance performance fees) thanks to the strong performance of all Wealth Management components
- In 4Q24, Wealth Management fees up by 9.4% Q/Q with AuC & AuM Running Fees(2) up by 4.0% Q/Q
- In 4Q24, Banking Services Fees as the main contributor to overall Net Commission Income strongly increased at €282.0 m (+4.9% Q/Q and +3.2% Y/Y) thanks to payments systems services
FY23 FY24
(1) Since 2Q24, Net Commission Income has included charges for payment services provided and Other administrative expenses have been netted against recoveries of costs for services ancillary to lending. In the interest of comparability of results, similar reclassifications have been made for the comparative quarters. (2) Net of AuC & AuM upfront fees amounting to € 15.2 in 4Q24 and €12.2 m in 3Q24.
Wealth 785.1 39.9% 840.9 40.9% +7.1% 216.6 +9.4% +8.1% o/w AuC 72.1 3.7% 61.9 3.0% -14.2% 13.0 +39.3% -40.1% o/w AuM 555.0 28.2% 635.2 30.9% +14.4% 164.6 +3.5% +15.0% o/w Life Insur. & Others 158.0 8.0% 143.8 7.0% -9.0% 39.0 +31.6% +9.6% Bancassurance 98.9 5.0% 128.2 6.2% +29.6% 57.1 +170.3% +31.1% Banking services 1,085.3 55.1% 1,089.3 52.9% +0.4% 282.0 +4.9% +3.2% Total 1,969.3 100.0% 2,058.4 100.0% +4.5% 555.8 +13.9% +7.5%
Continued positive performance in TFAs thanks to well diversified products mix and market effects
Q/Q key drivers (1) (€bn)
KEY HIGHLIGHTS
Deposits
▪ Deposits up to €118.1 bn (+€1.5 bn Q/Q) thanks to positive commercial dynamics
AuC & AuM
- At the end of December 2024, AuC at €95.7 bn, up by €0.7 bn Q/Q mainly thanks to positive market effect
- At the end of December 2024, AuM at €71.5 bn (+€0.6 bn Q/Q) driven by customers asset rotation
- AuM net inflows +€1.2 bn during FY24
Life insurance
▪ Life Insurance at €21.0 bn, almost flat Q/Q
Cost/Income at 50.3% almost flat FY/FY
(1) Managerial figures. (2) C/I is calculated on Operating Costs adjusted as shown on slide 27 and excluding €34.3 m related to a software depreciation
KEY HIGHLIGHTS
- In FY24, Total Costs at €2.8 bn with a Cost/Income Ratio at 50.3%(2) almost flat FY/FY
- In 4Q24, Total Costs reached €796.5 m, up by 2.7% Y/Y mainly due to D&A dynamics
HR Costs
- Headcount at 19,508 at the end of December with a reduction of 716 from end of year 2023
- In FY24, HR costs increased by 0.9% FY/FY, mainly driven by the increase of National Collective Labour Agreement (CCNL) for €55.7 m
- In 4Q24, HR Costs were up by 11.2% Q/Q due to the end-of-year seasonality
Non-HR Costs
- In 4Q24, Non-HR Costs increased by 13.5% Y/Y to €356.6 m. Excluding €34.3 m of D&As due to an extraordinary write-off on software in 4Q24, Non-HR Costs were at €322.3 m (+2.6% Y/Y)
- At the end of December, branches at 1,558 down by 77 FY/FY
in 4Q24. Note: Operating Costs are adjusted according to slide 27.
CoR at 36bps in FY24. NPE Coverage Ratio stable at 54.3%
KEY HIGHLIGHTS
Cost of Risk (CoR)
▪ In FY24, CoR strongly down to 36bps. In 4Q24, CoR at 28bps (-7bps Q/Q and -5bps Y/Y) driven by positive credit risk dynamics
Overlays
▪ In FY24, total cumulative overlays at €237.1 m, up by €15.3 m Q/Q
Performing Loans Coverage Ratio
▪ In FY24, Coverage Ratio on Performing Loans at a strong 0.69%, one of the highest level amongst Italian peers
NPE Coverage Ratio
▪ Total NPE Coverage Ratio substantially stable Q/Q, despite the asset disposals, thanks to higher levels of coverage on Bad Loans and still remaining one of the highest among Italian peers
NPEs Ratios significantly lower Q/Q at the end of December
Gross and Net NPE Ratio
KEY HIGHLIGHTS
Gross NPE Stock
▪ Gross NPEs at €2.2 bn down by €0.3 bn Q/Q driven by asset disposals and proactive collection activities
Stage Classification
▪ Stage 2 loans flat in 4Q24 at €8.2 bn, with a Coverage Ratio at 4.7%
Slight increase in RWA by €1 bn mainly driven by the annual update of operational risk
Q/Q key drivers (€bn)
KEY HIGHLIGHTS
RWAs
- In 4Q24, total RWAs up by €1.0 bn Q/Q at €54.2 bn following the annual update of operational risk
- Credit RWAs declined by €0.3 bn Q/Q at €45.0 bn thanks to an improvement in credit risk profile offsetting loans growth
CET1 Ratio at 15.8% with Organic Capital Generation of €1.7 bn in FY24
KEY HIGHLIGHTS
Organic Capital Generation (OCG)(1)
- OCG of €1.7 bn in FY24 with an impact on CET1 Ratio of +319bps, reinforcing capital strength
- In 4Q24, OCG equal to €0.1 bn (+24bps on CET1 Ratio), supported by the positive quarterly income dynamics partially impacted by the negative operational RWAs effect
Quarterly key drivers
- In 4Q24, CET1 Ratio at 15.8% stable Q/Q despite the negative impact driven by higher operational risk
- In FY24, EPS of €0.991 (Diluted EPS of €0.968)
(1) Organic Capital Generation calculated as stated Net Profit including release on DTA from tax loss carry forward contribution and RWAs dynamic net of regulatory headwind.
Note: CET1 Ratio was calculated including Profit for the year for the portion not allocated to dividends, i.e. bringing forward in advance the effects of the ECB's authorisation to include these profits in "Own Funds" pursuant to art. 26, para. 2 of the CRR.
Robust balance sheet with a sound liquidity profile
KEY HIGHLIGHTS
LCR and NSFR
- LCR reached 167% at the end of December 2024 vs 161% at end of December 2023 mainly thanks to institutional bond issuances during the year
- NSFR increased to 138% at the end of December 2024 from 128% at the end of December 2023
Balance Sheet dynamics
▪ At the end of December 2024, Loan to Deposit Ratio at 76.3% stable Q/Q, one of the lowest amongst Italian peers
Well diversified bond portfolio
(1) Duration in years, hedging included.
Note: managerial figures.
Italian Govies
- Italian Govies stand at €11.3 bn at the end of December 2024, up by 13.0% Q/Q and by 26.2% Y/Y
- This portfolio is 41.9% of the Total Bonds outstanding
Duration
▪ Total Bond portfolio has a duration of 2.1 years at the end of December 2024, up versus the end of September 2024 due to an increase in holdings of Italian government bonds to capitalise on prevailing market conditions
Yield
▪ The total financial portfolio has an average yield of 2.7% in FY24 (VS FY23 2.6%)
Bond Issuances & Maturities
| Rating Agency | LT Issuer | LT Deposits | Outlook |
|---|---|---|---|
| BBB | BBB (high) | Positive | |
| BBB- | BBB | Positive (upgraded) |
|
| Baa3 | Baa1 | Stable | |
| BBB- | Positive |
KEY HIGHLIGHTS
Bond issued
- Main Issuance in FY24:
- In February, the first Senior Preferred Bond qualifying as "Green" for €0.5 bn
- In March, a 7-year maturity Covered Bond for €0.5 bn
- In May, the second Senior Preferred Bond qualifying as "Green" for €0.5 bn
- In August, a 5-year maturity Covered Bond for €0.5 bn
- In November, a new Additional Tier 1 perpetual bond for €0.5 bn
Rating agency
▪ All key ratings assigned to the Bank by the various ratings agencies are Investment Grade with an upgrade to Positive Outlook from Fitch
Agenda
Final remarks
New Divisional Database available with FY24 Results
Note: Provisional management data on the commercial perimeter. Starting from 1Q25 operating costs will be available. (1) Including all Group Business Units Wealth Fees. (2) Including all Group Business Units Indirect Deposits.
2024 Guidance successfully achieved, on track to deliver B:Dynamic | Full Value 2027
Growth supported by Core Revenues and sound Cost of Risk
Asset quality amongst the best in Italy
Robust capital supported by strong Organic Generation of 319bps (+€1.7 bn)
Proposed FY24 dividend at Euro 60 cents translating into a Payout Ratio of 61% (>117% FY/FY) on track to deliver a sustainable 75% Payout Ratio over the Plan horizon
Agenda
Group P&L
| P&L - (€m) | FY24 Stated |
FY23 Stated |
Delta FY/FY | Delta FY/FY % | 4Q24 Stated |
Delta Q/Q % | Delta Y/Y % |
|---|---|---|---|---|---|---|---|
| Net interest income | 3,376.9 | 3,251.8 | 125.1 | 3.9% | 853.7 | 1.5% | -1.9% |
| Net commission income | 2,058.4 | 1,969.3 | 89.1 | 4.5% | 555.8 | 13.9% | 7.5% |
| Core Income | 5,435.3 | 5,221.1 | 214.2 | 4.1% | 1,409.4 | 6.1% | 1.6% |
| Dividends | 41.8 | 30.9 | 10.9 | 35.4% | 1.4 | -56.9% | 51.8% |
| Gains on equity investments measured under the equity method | -12.4 | 24.0 | -36.3 | -151.6% | -15.1 | -477.5% | -320.2% |
| Net income from financial activities | 13.5 | 100.0 | -86.5 | -86.5% | 10.1 | -246.8% | 125.0% |
| Other operating expenses/income | 96.4 | 100.7 | -4.4 | -4.3% | 39.8 | -5.0% | -37.0% |
| Operating Income | 5,574.6 | 5,476.7 | 97.9 | 1.8% | 1,445.6 | 5.4% | -1.2% |
| Staff costs | -1,915.5 | -2,001.4 | 85.9 | -4.3% | -459.7 | 16.2% | -39.2% |
| Other administrative expenses | -784.2 | -771.2 | -12.9 | 1.7% | -227.8 | 27.2% | 1.5% |
| Depreciations & Amortizations | -334.6 | -263.6 | -71.0 | 27.0% | -128.8 | 75.0% | 43.9% |
| Operating costs | -3,034.2 | -3,036.2 | 1.9 | -0.1% | -816.3 | 25.9% | -23.7% |
| Net Operating Income | 2,540.4 | 2,440.5 | 99.9 | 4.1% | 629.3 | -12.9% | 60.2% |
| Net impairment losses for credit risk | -333.3 | -433.3 | 100.0 | -23.1% | -79.0 | -0.1% | 10.4% |
| Operating Income net of LLPs | 2,207.1 | 2,007.2 | 199.9 | 10.0% | 550.3 | -14.5% | 71.3% |
| Net provisions for risks and charges | -75.7 | -62.5 | -13.2 | 21.1% | -44.6 | 123.2% | -738.0% |
| Gain (Losses) on Investments | 34.2 | -58.9 | 93.1 | -158.1% | -118.2 | -- | 58.0% |
| Result from current operations | 2,165.7 | 1,885.9 | 279.8 | 14.8% | 387.4 | -38.0% | 52.9% |
| Contributions to systemic funds | -111.7 | -161.2 | 49.6 | -30.7% | -2.1 | -- | -115.1% |
| Profit (Loss) before taxes | 2,054.0 | 1,724.6 | 329.3 | 19.1% | 385.3 | -38.3% | 44.1% |
| Taxes | -615.5 | -172.9 | -442.6 | 256.0% | -112.8 | -43.6% | -164.6% |
| Profit (Loss) for the year | 1,438.5 | 1,551.8 | -113.3 | -7.3% | 272.6 | -35.8% | -38.3% |
| Minority Interests | -35.9 | -32.3 | -3.6 | 11.1% | -6.9 | -41.7% | -27.1% |
| Profit (loss) for the year pertaining to the parent company | 1,402.6 | 1,519.5 | -116.8 | -7.7% | 265.6 | -35.7% | -38.6% |
Note: in the present document, Operating Income and Total Revenues are synonyms, as are Core Revenues/Core Income and Operating Costs/Total Costs.
2023 and 2024 Non-recurring P&L items
Group Reclassified Balance Sheet
| ASSETS (€bn) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 | Chg Q/Q | Chg Y/Y | |||
| Customer Loans | 89.4 | 89.1 | 86.7 | 88.2 | 87.7 | 89.0 | 88.9 | 90.1 | +1.4% | +2.2% | ||
| Securities Portfolio | 30.7 | 30.5 | 30.0 | 28.6 | 26.5 | 26.5 | 27.7 | 29.0 | +4.7% | +1.5% | ||
| Interbank Assets(1) | 18.5 | 10.3 | 13.4 | 11.7 | 12.6 | 10.1 | 10.4 | 9.4 | -9.7% | -19.7% | ||
| PPE & Intangible Assets | 3.1 | 3.0 | 3.1 | 3.1 | 3.2 | 3.2 | 3.2 | 3.2 | +0.5% | +3.4% | ||
| Other Assets(2) | 9.5 | 10.2 | 10.4 | 10.5 | 10.1 | 10.6 | 9.7 | 8.8 | -9.3% | -16.1% | ||
| Total Assets | 151.1 | 143.1 | 143.5 | 142.1 | 140.1 | 139.4 | 139.9 | 140.6 | +0.5% | -1.1% | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY (€bn) | ||||||||||||
| 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 | Chg Q/Q | Chg Y/Y | |||
| Direct Deposits | 113.5 | 113.7 | 120.1 | 118.8 | 118.1 | 117.6 | 116.6 | 118.1 | +1.3% | -0.5% | ||
| Interbank Liabilities | 22.3 | 12.5 | 9.0 | 7.8 | 5.6 | 5.3 | 5.0 | 5.0 | +0.9% | -34.9% | ||
| Shareholders' Equity | 8.4 | 8.7 | 9.1 | 9.6 | 10.5 | 10.4 | 10.8 | 11.6 | +7.1% | +20.9% | ||
| Other Liabilities(3) | 6.9 | 8.2 | 5.2 | 6.0 | 5.8 | 6.1 | 7.5 | 5.9 | -21.9% | -3.0% |
(1) Interbank Assets include Cash and cash equivalents and Loans to banks. (2) Other Assets include Hedging derivatives, Equity investments, Loans mandatorily measured at fair value and Other assets. (3) Other Liabilities include Financial liabilities held for trading, Hedging derivatives and Other liabilities.
Asset Quality Breakdown
| Gross exposures (€m) | 1Q23 | 2Q23 | 3Q23 | 4Q23 1Q24 |
2Q24 | 3Q24 | 4Q24 | Chg Q/Q | Chg Y/Y | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| comp. % | comp. % | comp. % | comp. % | comp. % | comp. % | comp. % | comp. % | Abs. | Chg (%) | Abs. | Chg (%) | |||||||||
| Non Performing Exposures (NPEs) | 3,022 | 3.3% | 2,504 | 2.7% | 2,530 | 2.8% | 2,197 | 2.4% | 2,336 | 2.6% | 2,513 | 2.8% | 2,525 | 2.8% | 2,212 | 2.4% | -313 | -12.4% | 15 | 0.7% |
| Bad loans | 989 | 1.1% | 1,020 | 1.1% | 953 | 1.1% | 632 | 0.7% | 661 | 0.7% | 710 | 0.8% | 737 | 0.8% | 517 | 0.6% | -220 | -29.9% | -115 | -18.3% |
| Unlikely to pay loans | 1,872 | 2.0% | 1,277 | 1.4% | 1,337 | 1.5% | 1,354 | 1.5% | 1,463 | 1.6% | 1,653 | 1.8% | 1,644 | 1.8% | 1,573 | 1.7% | -71 | -4.3% | 219 | 16.2% |
| Past due loans | 161 | 0.2% | 207 | 0.2% | 240 | 0.3% | 212 | 0.2% | 213 | 0.2% | 150 | 0.2% | 144 | 0.2% | 122 | 0.1% | -22 | -14.8% | -89 | -42.1% |
| Gross performing loans | 88,884 | 96.7% | 88,801 | 97.3% | 86,326 | 97.2% | 87,834 | 97.6% | 87,272 | 97.4% | 88,427 | 97.2% | 88,377 | 97.2% | 89,747 | 97.6% | 1,370 | 1.6% | 1,913 | 2.2% |
| Total gross exposures | 91,906 | 100.0% | 91,305 | 100.0% | 88,856 | 100.0% | 90,031 | 100.0% | 89,609 | 100.0% | 90,940 | 100.0% | 90,902 | 100.0% | 91,959 | 100.0% | 1,057 | 1.2% | 1,928 | 2.1% |
| Adjustments to loans (€m) | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 | Chg Q/Q | Chg Y/Y | ||||||||||
| coverage (%) | coverage (%) | coverage (%) | coverage (%) | coverage (%) | coverage (%) | coverage (%) | coverage (%) | Abs. | Chg (%) | Abs. | Chg (%) | |||||||||
| Adjustments to NPEs | 1,841 | 60.9% | 1,491 | 59.6% | 1,449 | 57.3% | 1,154 | 52.5% | 1,266 | 54.2% | 1,339 | 53.3% | 1,375 | 54.4% | 1,201 | 54.3% | -174 | -12.7% | 47 | 4.0% |
| Bad loans | 795 | 80.4% | 830 | 81.4% | 753 | 79.1% | 457 | 72.4% | 478 | 72.3% | In attesa upd 494 |
69.6% | 490 | 66.5% | 392 | 75.8% | -98 | -20.0% | -65 | -14.4% |
| Unlikely to pay loans | 997 | 53.3% | 603 | 47.2% | 628 | 46.9% | 639 | 47.2% | 724 | 49.5% | 803 | 48.6% | 839 | 51.0% | 768 | 48.8% | -71 | -8.5% | 129 | 20.2% |
| Past due loans | 49 | 30.6% | 58 | 28.0% | 68 | 28.4% | 58 | 27.3% | 64 | 30.0% | 42 | 28.1% | 46 | 32.1% | 41 | 33.6% | -5 | -10.6% | -17 | -28.7% |
| Adjustments to performing loans | 664 | 0.7% | 719 | 0.8% | 735 | 0.9% | 653 | 0.7% | 634 | 0.7% | 638 | 0.7% | 649 | 0.7% | 622 | 0.7% | -27 | -4.1% | -31 | -4.7% |
| Total adjustments | 2,505 | 2.7% | 2,210 | 2.4% | 2,184 | 2.5% | 1,807 | 2.0% | 1,900 | 2.1% | 1,977 | 2.2% | 2,024 | 2.2% | 1,823 | 2.0% | -201 | -9.9% | 16 | 0.9% |
| Net exposures (€m) | 1Q23 | 2Q23 | 3Q23 | 4Q23 1Q24 |
2Q24 | 3Q24 | 4Q24 | Chg Q/Q | Chg Y/Y | |||||||||||
| comp. % | comp. % | comp. % | comp. % | comp. % | comp. % | comp. % | comp. % | Abs. | Chg (%) | Abs. | Chg (%) | |||||||||
| Non Performing Exposures (NPEs) | 1,181 | 1.3% | 1,013 | 1.1% | 1,080 | 1.2% | 1,043 | 1.2% | 1,071 | 1.2% | 1,174 | 1.3% | 1,150 | 1.3% | 1,011 | 1.1% | -139 | -12.0% | -32 | -3.0% |
| Bad loans | 194 | 0.2% | 190 | 0.2% | 199 | 0.2% | 175 | 0.2% | 183 | 0.2% | 216 | 0.2% | 247 | 0.3% | 125 | 0.1% | -122 | -49.4% | -50 | -28.5% |
| Unlikely to pay loans | 875 | 1.0% | 674 | 0.8% | 709 | 0.8% | 715 | 0.8% | 739 | 0.8% | 850 | 1.0% | 805 | 0.9% | 805 | 0.9% | 0 | 0.0% | 90 | 12.6% |
| Past due loans | 112 | 0.1% | 149 | 0.2% | 172 | 0.2% | 154 | 0.2% | 149 | 0.2% | 108 | 0.1% | 98 | 0.1% | 81 | 0.1% | -17 | -16.8% | -73 | -47.2% |
| Net performing loans | 88,220 | 98.7% | 88,082 | 98.9% | 85,592 | 98.8% | 87,181 | 98.8% | 86,638 | 98.8% | 87,788 | 98.7% | 87,728 | 98.7% | 89,125 | 98.9% | 1,397 | 1.6% | 1,944 | 2.2% |
| Total net exposures | 89,401 | 100.0% | 89,095 | 100.0% | 86,672 | 100.0% | 88,224 | 100.0% | 87,709 | 100.0% | 88,962 | 100.0% | 88,878 | 100.0% | 90,136 | 100.0% | 1,258 | 1.4% | 1,912 | 2.2% |
Net Customer Loans: Loan Portfolio Composition
| % on Total | Δ % vs FY23 |
|||
|---|---|---|---|---|
| Business sector | FY24 | Customer Loans |
||
| Manufacturing | 12.7 | 14.1% | -2.7% | |
| Wholesale and retail services, recoveries and repairs |
6.8 | 7.6% | -4.5% | |
| Construction | 2.7 | 3.0% | -10.3% | |
| Real Estate | 3.4 | 3.8% | -12.4% | |
| HORECA | 1.5 | 1.7% | -9.0% | |
| Agriculture, forestry and fishing | 1.0 | 1.1% | +0.4% | |
| Other | 10.7 | 11.9% | +5.8% | |
| Total loans to non-financial businesses |
38.9 | 43.2% | -2.5% | |
| Households | 43.2 | 47.9% | +4.2% | |
| Total loans to financial businesses | 8.0 | 8.9% | +17.4% | |
| Total Customer Loans | 90.1 | 100.0% | +2.2% | |
| Debt Securities | 15.7 | 17.5% | +15.8% |
Net Customer Loans Breakdown by Sector (€bn; %) Net Customer Loans Breakdown by Geographical Areas(1) (%)
Financial Assets: Highlights
Source: managerial figures.
Govies Geographical Breakdown (%)
Commercial dynamics: loans and deposits evolution
| Commercial loans by geography (€bn) | Commercial deposits by geography (€bn) | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 89.4 | 89.1 | 86.7 | 88.2 | 87.7 | 89.0 | 88.9 | 90.1 | 105.0 | 103.4 | 107.7 | 104.9 | 103.8 | 104.4 | 102.7 | 104.3 | |
| 10.0% | 10.0% | 10.1% | 10.5% | 10.1% | 10.1% | 10.3% | 10.5% | 13.1% | 13.2% | 13.3% | 13.5% | 13.1% | 13.4% | 13.8% | 13.7% | |
| 12.5% | 12.4% | 12.6% | 12.5% | 12.4% | 12.3% | 12.2% | 12.1% | 14.5% | 14.5% | 14.3% | 14.7% | 14.5% | 14.7% | 14.9% | 14.8% | |
| 17.7% | 17.4% | 17.4% | 17.4% | 17.9% | 17.9% | 18.2% | 18.4% | 17.4% | 17.4% | 18.2% | 16.5% | 17.0% | 16.8% | 17.2% | 16.8% | |
| 59.7% | 60.2% | 59.9% | 59.6% | 59.5% | 59.8% | 59.2% | 59.0% | 54.9% | 54.9% | 54.2% | 55.3% | 55.4% | 55.1% | 54.1% | 54.7% | |
| 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 | |
| Northern Italy Centre Southern Italy Islands & Foreign countries Northern Italy |
Centre | Southern Italy | Islands & Foreign countries | |||||||||||||
| 59.2% | 59.2% | 59.9% | 59.5% | 60.8% | 60.4% | 60.4% | 60.3% | 79.4% | 78.1% | 75.6% | 77.1% | 75.9% | 76.2% | 76.8% | 76.9% | |
| 40.8% | 40.8% | 40.1% | 40.5% | 39.2% | 39.6% | 39.6% | 39.7% | 20.6% | 21.9% | 24.4% | 22.9% | 24.1% | 23.8% | 23.2% | 23.1% | |
| Retail | Corporate | Retail | Corporate |
Source: managerial breakdown figures.
ESG focus ensured Ratings improvement in the last quarter
Environmental
- 100% use of electricity from renewable sources
- -23% of internal emission reduction (CO2 )
- €1 bn of two Green Bond issuances
- €6.8 bn credit disbursed in ESG products
- +68.2% ESG investment product offering since 2021
- €22.2 bn of ESG AuM
Social
- Implementation of the BPER's "Bene Comune" Service supporting Third Sector entities and Impact lending
- €0.5 bn of a Social bond issuance
- Top Employer Italia 2024
- IDEM Gender equality certification obtained for the year 2024
- D&I: 27% female executives and 34% female managers
- Included by S&P Global in the "Sustainability Yearbook 2024"
- Included in the MIB ESG Index
- Included in FTSE4Good Index
- 20% weight of ESG KPIs in the Remuneration policies
- D&I: 40% women in the BoD
- D&I: implementation of a 3Y operational plan for the enhancement of D&I
34
Dummy figures Contacts for Investors and Financial Analysts
Nicola Sponghi Head of Investor Relations [email protected]
Maria Accarrino Investor Relations [email protected]
Federico Febbraro Investor Relations [email protected] Chiara Leonelli Investor Relations [email protected]
Ilaria Picelli Investor Relations [email protected]
Sara Viglietti Investor Relations [email protected]
BPER Head Office: Via San Carlo 8/20, Modena
[email protected] bper.it – group.bper.it