The UBI Banca Group
Consolidated Results as at 31st March 2020
8 May 2020
Disclaimer
This document has been prepared by Unione di Banche Italiane Spa ("UBI") for informational purposes only and for use in the presentation of May 2020.
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 contains 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 annual reports.
References
The "notes on the reclassified financial statements" contained in the periodic financial reports of the Group may be consulted for a fuller comprehension of the rules followed in preparing the reclassified financial statements.
Figures in this presentation slides may not add up exactly to correspond to the total amount indicated, due to rounding differences.
2
A solid start to 2020 allowing strong intervention in the Covid19 emergency
Strong CAPITAL
Strong LIQUIDITY
High quality LOAN BOOK
- FL CET1 ratio to 12.86%
- MDA buffer vs CET1 9.25% SREP to 361 bps (459 in the hypothesis of full application of art104a of CRD5)
- Both CET1 ratio and MDA buffer are higher than Business Plan projections (CET1 >12.5 and MDA buffer > 330 bps) even netof 2019 dividend (accounting for 26 bps)
- Total capital ratio to 17.05% also following successful issuance of AT1 in Jan 2020
- MREL requirements largely exceeded
- FL Leverage ratio to 5.87%
-
LCR and NSFR > 100
Thanks to strong issuance plan carried out in 2019, no worries if markets were to close in 2020 - Liquid assets to €36.8 billion, of which €23.8 unencumbered
- High quality performing loan book (only 2.7% is high risk) generating low default rate (1% annualised in 1Q2020)
- Low level of NPEs following work out and sales carried out in 2019, still constantly decreasing: in 1Q2020 gross NPE ratio to 7.5% of total loans (6.7% taking account of SME bad loan sale currently being prepared)
- High recovery rate to 12.5% (cash in + back to performing) of total NPEs.
- Bad loan recovery rate (cash in) to 7.1%
3
Liquidity to the economy in the Covid19 emergency and Initiatives to support customers well above the Group's Market share
Covid-related additional measures
- €10 billion available to the Territories to support families, businesses and third sector launched on 1st April 2020
- Immediate application and fast procedures to allow customers access to opportunities offered by Government Decrees, even in remote
- Financing up to €25,000 with 100% state guarantee: as at the 7th of May, loans which have obtained the guarantee and are ready for disbursement amount to 40% of the total at system level*
- Medium/large lending tickets with MCC guarantee (over €25K): over 2 bln/€ of applications (average guarantee 80%)
- 130.000 "moratorie" out of a total of over 1.600.000** at system level (8% share)
*37,250 applications out of a total at system level of 93,301
4** latest avaialable system data
A good set of results in 1Q20, with a significant increase in net profit in a complex environment
NET PROFIT *
(€ mln)
93.6
83.4
38.1
1Q19 | 4Q19 | 1Q20 |
5 *Restated for 2019 to reflect change of measurement criteria for real estate : Net profit for 1Q19 previously published €82.2 million; Net profit for 4Q2019 previously published €60.1 million,
Resilience of Net Interest Income expected to continue in 2020
Net Interest Income (mln/€)
(mln/€)
412 -1.7% 405
Business with customers (including IFRS 9 impacts)
374 | -1.0% | 370 | ||||||||||||||||
Other components | ||||||||||||||||||
(financial activities | ||||||||||||||||||
and interbank) | -8.2% | |||||||||||||||||
36 | 35 | |||||||||||||||||
4Q19 | 1Q20 | |||||||||||||||||
EURIBOR (1 month) | -46 bps | -48 bps | ||||||||||||||||
mln/€ | 1Q19 | 4Q19 | 1Q20 | |||||||||||||||
Business with customers | ||||||||||||||||||
409 | 374 | 370 | ||||||||||||||||
(including IFRS9) | ||||||||||||||||||
o/w business with customers | 383 | 364 | 359 | |||||||||||||||
o/w IFRS9 | 26 | 10 | 11 | |||||||||||||||
Financial activities | 44 | 51 | 37 | |||||||||||||||
Interbank business | -8 | -13 | -2 | |||||||||||||||
Net Interest Income | 446 | 412 | 405 | |||||||||||||||
EURIBOR (1 month) | - 37 bps | - 46 bps | 48 bps | |||||||||||||||
1Q20 vs 4Q19:
- Stable NII from business with customers vs 4Q19 considering calendar effect (-4 mln/€)
1Q20 vs 1Q19
- Impact on funding component of the decrease of -11 bps in 1M Euribor and of the intense issuing of institutional funding in 2019 which enabled the required MREL levels to be reached in advance and UBI to be resilient in case of potential market closures in 2020
- lower IFRS9 contribution, mainly following the massive bad loan reduction and disposals completed in 2019, (gross NPE volumes down by -29.4% in 12 months) enabling the Bank to face the Covid emergency with higher quality assets
6
Overall Customer Spread improving in 1Q20 to 177 bps New M/L term originations at 3.9 bln/€ in 1Q20
GROUP CUSTOMER | |
SPREAD* | |
(M/L and SHORT TERM, | |
STOCK | BANKING GROUP + |
PRODUCT COMPANIES | |
In bps against 1M Euribor, | |
including hedging | |
derivatives and excluding | |
TLTRO2 |
FOCUS ON
MEDIUM/LONG
TERM
VOLUMES &
TRENDCOMMERCIAL SPREADS
BANKING
PERIMETER
239 | 243 | 244 | 247 | 250 | |||||||
Mark up on lending | |||||||||||
177 | |||||||||||
Customer spread | 176 | 177 | 173 | 175 | |||||||
Mark down on funding | 63 | 66 | 71 | 72 | 73 | ||||||
1Q19 | 2Q19 | 3Q19 | 4Q19 | 1Q20 | |||||||
Spread 10Y BTP-BUND | 257 | 262 | 183 | 148 | 166 | ||||||
(period average) | |||||||||||
• | Higher incidence | ||||||||||
of TLTRO | |||||||||||
lending products | |||||||||||
1Q19 | 4Q19 | 1Q20 | |||||||||
in 1Q20 | |||||||||||
NEW ORIGINATIONS | • | Net of TLTRO | |||||||||
Flows | +2.8bln/€ | +2.7bln/€ | +3.9bln/€ | lending (approx. | |||||||
Commercial Spread | 243bps | 239bps* | 195bps* | 1.4bln/€ in | |||||||
1Q20), spread | |||||||||||
REIMBURSEMENTS | up 5bps vs | ||||||||||
Flows | -3.3bln/€ | -3.7bln/€ | -3.2bln/€ | 4Q19 (to | |||||||
Commercial Spreads | 195bps | 206bps | 193bps | 256bps) | |||||||
* Exluding TLTRO lending, commercial spread at 251bps in 4Q19 and 256bps in 1Q20
7
2019 intense issuing activity (5bln/€ institutional and 2.2bln/€ retail*) guarantees a comfortable liquidity position
In order to optimise the Group's capital structure, inaugural 400 mln/€ AT1 issuance placed in January 2020
FUNDING MATURITY PROFILE | Situation as at 31st March 2020 | |||||||||||
(nominal amounts in bln/€) | ||||||||||||
0.10 | AT1 | |||||||||||
Retail bonds | ||||||||||||
2.27 | 1.76 | 1.75 | Covered Bonds (CB) | |||||||||
0.50 | 0.40* | EMTN | ||||||||||
0.07 | 0.06 | |||||||||||
0.01 | 0.04 | |||||||||||
1.52 | 1.02 | 1.70 | 1.25 | 1.50 | 1.00 | 1.25 | ||||||
0.20 | 1.50 | |||||||||||
0,750.75 | 0.80 | |||||||||||
0,14 | 0.41 | 0.40 | 0.50 | 0.50 | 0.50 | 0.50 | 0,25 | |||||
1Q 2Q-3Q-4Q | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2033 | |
2020 | 2020 |
2020 RETAIL ISSUANCES | 2020 INSTITUTIONAL ISSUANCES | ||||||||||||||||
Date | Amount | Avg Maturity | Avg Coupon | Settl. Date | Size | Type | Avg Coupon | ||||||||||
1Q 2020 | 0.02 bln/€ | 3 years | 1.04% | Jan 2020 | 0.40 bln/€ | Non-Cumulative Temporary Write-Down Deeply | 5.875% | ||||||||||
Subordinated Fixed Rate Resettable Notes** | |||||||||||||||||
Jan 2020 | 0.10 bln/€ | Private placements | undisclosed | ||||||||||||||
NB: in Feb 2020 UBI Banca also issued approx. 0.1 bln/€ of certificates
* Against total expiries of 5.8 bln/€
8 * * AT1 perpetual securities callable by the issuer, from 20/01/2025 until 20/06/2025 and subsequently on each coupon payment date
Net fees and commission income shows strong growth vs 1Q19: +4.9%
Net fees and commissions (mln/€)
+4.9%
446420
401
76
• Net fees & commission income from |
54
60
management, trading | and advisory |
services excluding | upfront and |
performance fees at the highest level |
172 | 177 | +3.5% | 183 |
176 | 193 | -8.2% | 178 |
o/w synthetic | 1Q19 | 4Q19 | 1Q20 | ||
o/w -8 | o/w -9 | o/w - 11 | |||
securitisation |
fees | Upfront* and performance fees | |
Management, trading and advisory services | ||
Banking related commissions | ||
ever, despite Covid19 strong impact |
in March |
• AUM placed in 1Q20 stable vs 1Q19 |
(about 3 bln/€, vs 2.3 bln/€ in 4Q19) |
• Traditional Banking related commission: |
+1.2% vs 1Q19. 4Q19 includes items |
typically booked at year end (especially |
related to payments, e.g. year end |
rappels) |
9 * Upfront fees include both placement of SICAV & funds and insurance products
Net of systemic charges, operating costs are down 1.7% vs 1Q19 and 3.6% vs 4Q19 thanks to strict control
Total Operating Costs (mln/€)
-1.7% | ||||||||||||||
Costs net of | -3.6% | |||||||||||||
Systemic | ||||||||||||||
charges | ||||||||||||||
561 | 572 | 552 | ||||||||||||
D&A | 52 | 59 | 57 | |||||||||||
Admin. Expenses (ex | 144 | 158 | 139 | |||||||||||
systemic charges) | ||||||||||||||
Staff | 364 | 355 | 355 | |||||||||||
1Q19 | 4Q19 | 1Q20 | ||||||||||||
Systemic | RF: 42 | DGS: 4 | RF: 42 | |||||||||||
charges | ||||||||||||||
Total Operating | 603 | 577 | 594 | |||||||||||
Costs | ||||||||||||||
- Staff costs (-2.6% vs 1Q 19) benefit from headcount reduction (-757resources vs March 2019) notwithstanding application of new National Labour Contract
- Administrative expenses down both vs 4Q19 (-11.9%)and vs 1Q19 (-3.2%)
10
A new way of working drives a different cost allocation
Health and safety measures
Communication
Social distancing | Organisational |
measures | |
measures | |
- More smart working
During the crisis all employees of the Group were enabled to smart work and 20,000 remote work stations were organized
5,600 employees on average were connected in remote conference calls/videos every day
Lower commuting costs
Lower costs in terms of paper/toner, energy, etc
- Social distancing and organizational measures:
During the crisis, all small business corporate, premium and private relationship managers were enabled to remote selling (4,700 resources) and access to the branches was allowed upon appointment
Change in the role of branches, which has been anyway decreasing over time but at a slow pace - Strengthening of contact centers
Higher costs to ensure clean and safe environment to customers and employees
Re-organisation of real estate Remote learning
- Communication
How to communicate after Covid19 both within and outside the Bank? More digital marketing
The role of mail and mailing costs
Videoconferences with customers eg advisory services…….
11
Asset quality: performing high risk positions down again to 2.7% of the portfolio. Low new inflows to NPEs from performing loans (-82% vs 2009 peak). Annualised default rate at 1%
GROSS PERFORMING PORTFOLIO UNDER AIRB | DEFAULT RATE* | ||||
Loans at amortised cost and at fair value through P&L as at 31.03.2020 | |||||
High risk | 2.7% | 1.85% | |||
Unrated 3.8% | |||||
vs 8.4% in Dec '12 | vs 5.7% in Dec '12 | Including the | |||
MARCH | new | ||||
'15 | definition of | ||||
Medium Risk 10.9% | |||||
vs 27.6% in Dec '12 | 1.0% | default | |||
introduced in | |||||
0.8% | |||||
July 2019 | |||||
Low Risk 82.6% | |||||
85% of high | vs 58.3% in Dec '12 | ||||
risk positions | 1Q18 | 1Q19 | 1Q20 | ||
are collateralised |
NPEs: GROSS INFLOWS FROM PERFORMING | ||||||||||||||||||||||||||||||||||||
(mln/€) | -82% | |||||||||||||||||||||||||||||||||||
1,134 | 1,069 | from the peak in 2009 | ||||||||||||||||||||||||||||||||||
870 | 722 | 811 | 650 | |||||||||||||||||||||||||||||||||
272 | 548 | 623 | 389 | 317 | 390 | 165 | 273 | 240 | 204 | |||||||||||||||||||||||||||
2007 | 2008 | 2009 | 2010 | 1Q11 | 1Q12 | 1Q13 | 1Q14 | 1Q15 | 1Q16 | 1Q17 | 1Q18 | 1Q19 | 3Q19 | 4Q19 | 1Q20 | |||||||||||||||||||||
Quarterly average | UBI stand-alone | July 2019: introduction of the | ||||||||||||||||||||||||||||||||||
new definition of default | ||||||||||||||||||||||||||||||||||||
2007 and 2008 gross inflows figures are stated according to table A.1.7. Since 2009 gross inflows figures are stated according to Table "Loans to customers: change in non-performing exposure"
12 * Default rate = gross inflows to NPEs / Gross performing loans at the beginning of the period
- Gross Inflows from performing - Outflows to performing.
Gross NPE more than halvedsince peak in Sept 2015
-8.8p.p. | ||||||
-8p.p. | ||||||
GROSS | 15.5% | |||||
NPEs/TOTAL | ||||||
10.4% | ||||||
GROSS LOANS | ||||||
7.8% | 7.5% | 6.7% | ||||
% | ||||||
Considering | ||||||
Sept '15 | Mar '19 | Dec '19 | Mar '20 | Mar '20 pro-forma | new disposal | |
of about | ||||||
-57% | 800mln/€ SMEs | |||||
bad loans to | ||||||
-51% | ||||||
be completed | ||||||
13.7 | in 2020 |
GROSS NPEs | 9.5 | ||||||||
(bln/€) | 6.7 | 5.9 | |||||||
6.8 | |||||||||
Sept '15 | Mar '19 | Dec' 19 | Mar '20 | Mar '20 pro-forma |
13
Confirmed strength of internal work-out units resulting in higher recovery rates
CASH-IN AND BACK TO PERFORMING | 2016 | 2017 | 2018 | 2019 | 1Q19 | 1Q20 | ||
(A) RECOVERY RATE NPE (cash-in)* | 8.1% | 8.3% | 8.9% | 7.8% | 8.7% | 9.1% | Total cash-in and | |
(B) BACK TO PERFORMING** | 2.7% | 2.4% | 3.0% | 3.9% | 3.3% | 3.4% | back to performing | |
(A+B) RECOVERY RATE NPE (cash-in) | 10.7% | 10.7% | 11.8% | 11.7% | 11.9% | 12.5% | at 12.5% in 1Q20 | |
+BACK TO PERFORMING | ||||||||
Recovery rate on | ||||||||
bad loans | ||||||||
improving further | ||||||||
to 7.1% | ||||||||
FOCUS BAD LOANS | 2016 | 2017 | 2018 | 2019 | 1Q19 | 1Q20 | ||
RECOVERY RATE BAD LOANS | 4.5% | 4.6% | 5.2% | 6.5% | 6.1% | 7.1% | ||
* Recovery rate = payments received / (initial NPE gross exposure + total increases), annualised | |
14 | ** Back to performing = NPE back to performing loans / (initial NPE gross exposure + total increase), annualised |
Cost of Risk in 1Q20 at 73bps including higher provisioning on UTP loans in sectors more impacted by the Covid19 emergency
Coverage consistent with a highly secured portfolio
1Q 20
FY19 1Q 19
COST OF RISK
- 73 bps inlcluding significant additional provisions on UTPs in sectors impacted by the Covid19 (bringing coverage on those sectors' UTPs to approx. 35%)
- 87 bps of which 20 bps related to massive disposals
- 59 bps (does not include the new definition of default introduced in July 2019)
% OF GROSS NPEs SECURED*
85% | 79% | 77% | ||||||||
71% | 70% | |||||||||
(REAL ESTATE COLLATERAL + CASH COVERAGE) / TOTAL GROSS NPEs*
81% | 79% | 78% | 75% | 75% | ||||||
COVERAGE PERFORMING LOANS**
0.69%
0.55%
0.41% | 0.36% | |||||||
0.30% | ||||||||
UBI | BPER BancoBPM Intesa SP Unicredit | UBI | BPER Unicredit Intesa SP BancoBPM | Unicredit | UBI Intesa SP BancoBPM BPER |
*Data as at 31 December 2019, Table A.3.2 financial reports and Company presentations
15 ** Data as at 31 March 2020
CET1 ratio at 12.9%
No future DTAs or optimisation actions included
Capital Ratios Fully Loaded
No future DTAs nor optimisation manoeuvres included
Already above Business | Total Capital + SNP | |
Plan expectations | 19.6% | |
19.6%: important | ||
• MDA buffer (CET1): 361 bps (vs Srep | ||
protection for |
+57 bps
12.86% |
12.29% |
Dec '19 Mar '20 |
CET1 |
+122 bps
17.05% |
15.83% |
Dec '19 Mar '20 |
Total Capital
9.25%) | holders of Senior | SNP | 2.6% | ||
• MDA buffer (CET1): 459 bps (in the | Preferred Bonds | ||||
hypothesis of full application of art. | Tier 2 | 3.5% | |||
104a CRD5) | |||||
AT1 | 0.7% | ||||
Both including or excluding 2019 | |||||
dividend | CET1 | 12.9% | |||
• | MDA buffer (CET1) > 330 bps* | ||||
• | CET1 ratio > 12.5% | ||||
- In 1Q20 impacts on CET1 ratio from:
- Dividend accrued for 2019 and not resolved by the General Shareholders' meeting following ECB recommendation (+26bps)
- Change in real estate valuation criteria (+38 bps, higher than Business Plan expectations)
- OCI reserve (-25 bps) and impact of TRIM inspections
- Net 1Q20 profit positive contribution with dividend accrual according to Business Plan projections
✓ Further positive effect on Total Capital ratio from 400 mln AT1 issued in Jan '20
* Average estimate in the span of Business Plan (2020-2022)
16 SREP 2019: CET1 requirement 9.25%; Total Capital Requirement: 10.25% (12.75% including the Capital Conservation Buffer). 2020 SREP unchanged vs 2019 See Annex 10 for further detail
Business Outlook
- The Covid19 emergency is a crisis that is different from others both because of how it originated and how it might develop, which makes any type of forecast complex. However, even in this crisis, the key factor is the quality of credit. In the face of this unprecedented crisis, swifter and more incisive measures were taken by domestic and international authorities to mitigate its impact.
- These measures, recently implemented, should allow the Bank to preserve its level of net interest income. Weaker performance by the fee and commission component relating to transactions following the slowdown in the economy is expected, while the fee and commission component relating to assets under management will be affected by the crisis in the first part of the year, but will depend on the performance of markets in the second.
- Maximum efforts will continue to be made to contain operating expenses, although in a different manner, driven by smartworking.
- As concerns loan losses, these will be higher than forecast for the first year under the Business Plan, although mitigated by the use of support initiatives included in the mentioned recent measures. The Bank has already made greater provisions for unlikely-to-pay loans in those sectors more exposed to the crisis with an impact on 1Q 2020 of about 50 million (with an overall cost of credit of 73 bps), and it will focus its attention during the year on these loans, given the high quality of performing loans (the level of high-risk performing loans fell further in 1Q 2020 to 2.7%, the default rate is expected to remain low and coverage for performing loans is among the highest for major Italian banks). The internal workout strategy for non-performing loans is therefore confirmed.
- From a balance sheet viewpoint, the UBI Group's capital position, its solid liquidity and its asset quality enables it to face this crisis with a reasonable level of confidence, as already occurred in previous crisis, and to generate profits on a continuing basis to the benefit of all stakeholders (including dividends when authorised by the ECB).
17
Annexes
18
Annex 1a
Reclassified consolidated Income Statement (restated to reflect the change in real estate measurement criteria)
(mln/€)
Net interest income
- of which: TLTRO2
- of which: credit components (IFRS9 and PPA)
- of which: IFRS9 contractual modifications without derecognition
Net fee and commission income
Net income (loss) from trading, hedging and disposal/repurchase activities and from assets/liabilities at fair value through profit or loss Profits of equity-accounted investees
Dividends and similar income
Net income from insurance operations Other net operating income/expense
Operating income
Staff costs
Other administrative expenses
of which: SRF and DGS contributions
Depreciation, amortisation and net impairment losses on property, plant and equipment and intangible assets
Operating expenses
Operating expenses excluding SRF and DGS contributions
Net operating income
Net impairment losses for credit risk relating to:
- financial assets measured at amortised cost: loans to banks
- financial assets measured at amortised cost: loans and advances to customers
- financial assets measured at amortised cost: securities
- financial assets as at fair value through other comprehensive income
Net provisions for risks and charges - commitments and guarantees granted
Net provisions for risks and charges - other net provisions
Profits (losses) from the disposal of equity investments
Net income (loss) from fair value change in property, plant and equipment and intangible assets
Pre-tax profit from continuing operations
Taxes on income for the period from continuing operations
Profits/losses for the period attributable to non-controlling interests
Profit for the period attributable to the Parent before Business Plan and other impacts
Redundancy expenses net of taxes and non-controlling interests
Business Plan Project expenses net of taxes and non-controlling interests
Impairment losses on property, plant and equipment
Profit for the period
Profit for the period net of non-recurring items
1Q19 4Q19 (restated) (restated)
445.6 412.0
12.411.1
31.221.4
(5.2)(11.9)
- 446.3
- 58.2
- 9.1
5.20.1
- 4.0
- 18.8
- 948.5
(364.4) (355.5)
(186.0) (162.7)
(42.0) (4.4)
(52.5) (58.5)
(603.0) (576.7)
(561.0) (572.2)
317.7 371.9
(130.0) (210.5)
(0.0)(0.3)
(128.6) (208.2)
(0.5)(1.4)
(0.9)(0.6)
(0.6) (1.9)
(3.5) (1.2)
- 1.8
- (39.4)
- 120.6
(51.4) (22.5)
(6.4) (13.0)
-
85.2
(42.6) (46.8)
(0.1)
(0.3)
- 38.1
126.1 83.9
1Q20 |
405.2 |
10.1 |
20.1 |
(8.8) |
420.5
53.6
7.8
4.8
2.5
19.3
913.6
(355.0)
(181.4)
(42.0)
(57.2)
(593.6)
(551.6)
320.0
(157.1)
(0.2)
(155.6)
0.6
(1.9)
(0.9)
0.9
0.1
(8.7)
154.2
(52.4)
(8.3)
93.6
0.0
93.6 |
99.3 |
1Q20 | 1Q20 |
vs 1Q19 | vs 4Q19 |
(9.1%) | (1.7%) |
(18.4%) | (8.9%) |
(35.6%) | (6.2%) |
70.7% | (25.8%) |
4.9% | (5.8%) |
43.2% | (7.9%) |
23.6% | (14.6%) |
(7.6%) | n.s. |
(28.6%) | (37.9%) |
(11.0%) | 2.5% |
(0.8%) | (3.7%) |
(2.6%) | (0.1%) |
(2.5%) | 11.5% |
(0.0%) | n.s. |
8.9% | (2.3%) |
(1.6%) | 2.9% |
(1.7%) | (3.6%) |
0.7% | (13.9%) |
20.9% | (25.4%) |
n.s. | (47.4%) |
21.0% | (25.2%) |
n.s. | n.s. |
114.9% | 211.1% |
67.6% | (51.3%) |
n.s. | n.s. |
(75.5%) | (96.3%) |
n.s. | n.s. |
(16.1%) | 27.9% |
1.9% | 133.1% |
29.4% | (36.0%) |
(25.8%) | 9.8% |
12.1% | 145.8% |
(21.2%) | 18.4% |
FY19 |
(restated) |
1,725.1
48.7
110.6
(25.3)
1,661.8
104.3
40.3
7.7
15.3
83.5
3,637.9
(1,427.7)
(711.1)
(107.6)
(221.3)
(2,360.0)
(2,252.5)
1,277.9
(744.1)
0.1
(738.4)
(2.5)
(3.3)
(0.0)
(24.8)
6.1
(39.4)
475.7
(118.8)
(33.9)
323.0
(89.4)
(0.1)
(0.3)
233.1 |
331.3 |
19
Contribution of non-recurring items to Net Profit
Stated Net | 2017-2020 Business Plan | Disposal of | First time application of | ||
1Q20 | securities/equity | measurement of | |||
Profit | Staff leaving incentives | ||||
investments | properties at fair value | ||||
1Q20 | 93.6 | (0.0) | (0.0) | 5.8 | |
P&L | (A) | Redundancy expenses net of | Net income from trading, | Net income (loss) from fair | |
reference line | taxes and non-controlling interests | hedging and disposal/ | value change in property, | ||
repurchase activities and | plant and equipment and | ||||
from assets/liabilities as at | intangible assets | ||||
fair value through profit or | |||||
loss |
Annex 1b
Total impact of non- | Normalised | |
recurring items | Net Profit | |
5.8 | 99.3 | |
(B) | (A+B) |
The reference date for the first time application of | new evaluation criterion is 31/03/2020. | ||
In short, the FTA impacts of the new evaluation | can be summarized as follows: | ||
IAS | Change in FV vs FTA | ||
Properties for operational use | Positive impact to equity | ||
FTA | (pursuant to IAS 16) | ||
Negative impact to income statement | |||
Investment properties | Net impact to equity | ||
(pursuant to IAS 40) | |||
Note: items net of taxes and non-controlling interests
20
Annex 1c
Change in the measurement critera for real estate assets
The real estate assets of the UBI Banca Group include:
- properties for operational use (pursuant to IAS 16)
- investment properties (pursuant to IAS 40)
and also properties treated as "inventories" (pursuant to IAS 2).
The Group's accounting policies required both categories to be measured at cost (net of accumulated depreciation and any impairment). The UBI Group has decided to revalue the carrying amount of its real estate assets as of 31st March 2020.
This consists of making changes:
- from measurement at cost to measurement at a "revalued amount" for properties held for operational use pursuant to IAS 16 (with impacts "on going" in the equity and income statement);
- from measurement at cost to measurement at fair value for investment properties pursuant to IAS 40 (with impacts "on going" in the income statement).
In accordance with IAS 8 "Accounting policies, changes in accounting estimates, and errors", this change in the method of measurement constitutes a voluntary change in accounting policies for the following reasons:
- to improve the quality of the information on which users of the financial statements bases their decisions;
- to evaluate the real estate assets in order to reflect their market value based on the characteristics of the properties and on the market context, regardless of the timing and reasons for the acquisition of each individual property;
- to improve the comparability of operating performance from year to year.
21
Annex 2
Change in the measurement criteria for real estate assets: impact on income statement
As of 31st March 2020 the UBI Group changed the criterion it uses to measure real estate assets, adopting the fair value criterion in place of that of cost. As a consequence of the above, the restated comparative periods differ from those published as at their respective reporting dates. In compliance with IAS 8, the comparative figures for previous periods have been restated following retrospective application of the change in the measurement criterion for real estate assets, subject to IAS 40 rules.
On the contrary, the change in the measurement criteria for operational real estate assets, pursuant to IAS 16, has been applied prospectively from 31st March 2020, in compliance with IAS 8.
Following the change in the measurement criteria for real estate assets, we report the following as of these financial statements:
-
the item "Property, plant and equipment" in the balance sheet includes measurement of "Operational properties" pursuant to IAS 16 and "Investment property" pursuant to IAS 40, at the
"revalued amount" and at "fair value" respectively; - the item "Depreciation and net impairment losses on property, plant and equipment and intangible assets" in the income statement includes, with regard real estate assets, only the depreciation of "Operational properties" since "Investment properties" measured at fair value are not depreciated;
- the item "Net income (loss) from fair value change in property, plant and equipment and intangible assets" includes the result for changes in the fair value of properties in the period, in compliance with the new measurement criteria adopted.
It follows that the figures reported are comparable with previous periods except for the item "Property, plant and equipment" in the balance sheet and the item "Net income (loss) from fair value change in property, plant and equipment and intangible assets" in the income statement.
2019 | ||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | |
Figures in thousands of euro | restatement | restatement | restatement | restatement |
impacts | impacts | impacts | impacts | |
Operating income | - | - | - | - |
190. a) Staff costs
190. b) | Other administrative expenses | ||||
of which: SRF and DGS contributions | |||||
Depreciation, amortisation and net impairment losses on property, plant and | |||||
210.+220. | equipment and intangible assets | 2,590 | 2,212 | 1,851 | 1,809 |
Operating expenses | 2,590 | 2,212 | 1,851 | 1,809 | |
Net operating income | 2,590 | 2,212 | 1,851 | 1,809 |
130. Net impairment losses for credit risk relating to:
130. a) - financial assets measured at amortised cost: loans and advances to banks
130. a) - financial assets measured at amortised cost: loans and advances to customers
- a) - financial assets measured at amortised cost: securities
- b) - financial assets measured at fair value through other comprehensive income
- a) Net provisions for risks and charges - commitments and guarantees granted
200. b) Net provisions for risks and charges - other net provisions
Net income (loss) from fair value change in property, plant and equipment and | |||||
260. | intangible assets | (39,386) | - | - | - |
250.+280. | Profits (losses) from the disposal of equity investments | ||||
290. | Profit (loss) before tax from continuing operations | (36,796) | 2,212 | 1,851 | 1,809 |
300. | Taxes on income for the period from continuing operations | 11,289 | (715) | (595) | (582) |
340. (Profit) loss for the period attributable to minority interests
Profit (loss) for the period attributable to the | shareholders of the Parent | ||||
before the Business Plan and other impacts | (25,507) | 1,497 | 1,256 | 1,227 |
190. a) Redundancy expenses net of taxes and minority interests
190. b) Business Plan project expenses net of taxes and minority interests
Depreciation and net impairment losses on property, plant and equipment net of | |||||
210. | taxes and minority interests | 3,432 | |||
350. | Profit (loss) for the period attributable to the shareholders of the Parent | (22,075) | 1,497 | 1,256 | 1,227 |
22
Annex 3a
Branches and headcounts evolution
# of domestic branches (end of period)
>2,000 | |||||
1,838 | |||||
o/w 1,524 | 1,648 | 1,638 | 1,636 | 1,575 | 1,566 |
UBI Banca Group |
Stand alone
Dec '16 | Dec '17 | Dec '18 | June '19 | Sept '19 | Dec '19 | Mar '20 |
pro-forma* |
- of headcounts (end of period)
22,500 | On 14th January trade union agreement signed for | |||||||
21,412 | the exit, on a voluntary basis, of over 300 resources | |||||||
o/w 17,560 | 20,394 | 20,241 | 20,128 | 19,940 | as from Feb 2020 | |||
UBI Banca Group | 19,629 | |||||||
Stand alone | ||||||||
Approx. 133 resources still to exit from end March | ||||||||
2020 | ||||||||
Dec '16 | Dec '17 | Dec '18 | June '19 | Sept '19 | Dec '19 | Mar '20 | ||
pro-forma* |
- Dec '16 pro-forma and FY2016 pro-forma include UBI Banca Group Stand Alone + data of 3 Banks acquired in May 2017
23
Detail of Operating costs
Annex 3b
o/w Staff Costs
(mln/€)
364 | 356 | 352 | 355 | 355 |
1Q19 2Q19 3Q19 4Q19 1Q20
-2.6%
Number of staff decreases by 311 employees vs Dec '19 and by 757 vs March '19
24
o/w Admin. Expenses
(mln/€)
186 175 187 163 181
RF: 42 | RF: 18 | DGS: | DGS: | |
4 | RF: 42 | |||
43 | ||||
144 | 157 | 144 | 158 | 139 |
1Q19 | 2Q19 | 3Q19 | 4Q19 | 1Q20 |
o/w Depreciation, Amortisation, etc.
(mln/€)
52 | 54 | 56 | 59 | 57 |
1Q19 2Q19 3Q19 4Q19 1Q20
Annex 4a
Reclassified Consolidated Balance Sheet - Assets (restated to reflect the change in real estate measurement criteria)
31.03.2020 | 31.12.2019 | Changes | % changes | 31.03.2019 | Changes | % changes | |||
restated | restated | ||||||||
A | A-B | A/B | A-C | A/C | |||||
Figures in thousands of euro | B | C | |||||||
ASSETS | |||||||||
10. | Cash and cash equivalents | 543,344 | 694,750 | (151,406) | (21.8%) | 606,459 | (63,115) | (10.4%) | |
20. | Financial assets measured at fair value through profit or loss | 2,445,729 | 1,758,730 | 686,999 | 39.1% | 1,504,110 | 941,619 | 62.6% | |
1) | Loans and advances to bank s | 16,875 | 16,213 | 662 | 4.1% | 14,715 | 2,160 | 14.7% | |
2) | Loans and advances to customers | 275,614 | 260,667 | 14,947 | 5.7% | 270,459 | 5,155 | 1.9% | |
3) | Securities and derivatives | 2,153,240 | 1,481,850 | 671,390 | 45.3% | 1,218,936 | 934,304 | 76.6% | |
Financial assets measured at fair value through other | |||||||||
30. | comprehensive income | 11,476,015 | 12,221,616 | (745,601) | (6.1%) | 11,237,472 | 238,543 | 2.1% | |
1) | Loans and advances to bank s | - | - | - | - | - | - | - | |
2) | Loans and advances to customers | - | - | - | - | 15 | (15) | (100.0%) | |
3) | Securities | 11,476,015 | 12,221,616 | (745,601) | (6.1%) | 11,237,457 | 238,558 | 2.1% | |
40. | Financial assets measured at amortised cost | 101,689,225 | 101,736,289 | (47,064) | - | 103,161,917 | (1,472,692) | (1.4%) | |
1) | Loans and advances to bank s | 9,467,195 | 11,723,923 | (2,256,728) | (19.2%) | 11,327,078 | (1,859,883) | (16.4%) | |
2) | Loans and advances to customers | 85,778,114 | 84,564,033 | 1,214,081 | 1.4% | 87,095,528 | (1,317,414) | (1.5%) | |
3) | Securities | 6,443,916 | 5,448,333 | 995,583 | 18.3% | 4,739,311 | 1,704,605 | 36.0% | |
50. | Hedging derivatives | 34,039 | 35,117 | (1,078) | (3.1%) | 20,298 | 13,741 | 67.7% | |
60. | Fair value change in hedged financial assets (+/-) | 651,581 | 547,019 | 104,562 | 19.1% | 320,370 | 331,211 | 103.4% | |
70. | Equity investments | 293,676 | 287,353 | 6,323 | 2.2% | 263,307 | 30,369 | 11.5% | |
80. | Technical reserves of reinsurers | 104 | - | 104 | - | - | 104 | - | |
90. | Property, plant and equipment | 2,590,524 | 2,370,247 | 220,277 | 9.3% | 2,492,994 | 97,530 | 3.9% | |
100. | Intangible assets | 1,731,379 | 1,739,903 | (8,524) | (0.5%) | 1,721,712 | 9,667 | 0.6% | |
of which: goodwill | 1,465,260 | 1,465,260 | - | - | 1,465,260 | - | - | ||
110. | Tax assets | 3,748,151 | 3,755,895 | (7,744) | (0.2%) | 4,123,686 | (375,535) | (9.1%) | |
120. | Non-current assets and disposal groups held for sale | 291,766 | 268,100 | 23,666 | 8.8% | 10,320 | 281,446 | n.s. | |
130. | Other assets | 997,059 | 1,200,966 | (203,907) | (17.0%) | 1,357,159 | (360,100) | (26.5%) | |
Total assets | 126,492,592 | 126,615,985 | (123,393) | (0.1%) | 126,819,804 | (327,212) | (0.3%) | ||
25
Annex 4b
Reclassified Consolidated Balance Sheet - Liabilities and Equity (restated to reflect the change real estate measurement criteria)
31.03.2020 | 31.12.2019 | Changes | % changes | 31.03.2019 | Changes | % changes | ||
restated | restated | |||||||
A | A-B | A/B | A-C | A/C | ||||
Figures in thousands of euro | B | C | ||||||
LIABILITIES AND EQUITY | ||||||||
10. | Financial liabilities measured at amortised cost | 108,386,682 | 109,795,016 | (1,408,334) | (1.3%) | 111,409,557 | (3,022,875) | (2.7%) |
a) Due to bank s | 14,497,500 | 14,367,985 | 129,515 | 0.9% | 17,776,512 | (3,279,012) | (18.4%) | |
b) Due to customers | 71,435,696 | 72,577,255 | (1,141,559) | (1.6%) | 69,830,403 | 1,605,293 | 2.3% | |
c) Debt securities issued | 22,453,486 | 22,849,776 | (396,290) | (1.7%) | 23,802,642 | (1,349,156) | (5.7%) | |
20. | Financial liabilities held for trading | 617,709 | 555,296 | 62,413 | 11.2% | 461,254 | 156,455 | 33.9% |
30. | Financial liabilities designated at fair value | 285,439 | 197,610 | 87,829 | 44.4% | 124,296 | 161,143 | 129.6% |
40. | Hedging derivatives | 575,925 | 386,778 | 189,147 | 48.9% | 107,022 | 468,903 | n.s. |
50. | Fair value change in hedged financial liabilities (+/-) | 156,033 | 145,191 | 10,842 | 7.5% | 124,767 | 31,266 | 25.1% |
60. | Tax liabilities | 300,268 | 210,882 | 89,386 | 42.4% | 196,528 | 103,740 | 52.8% |
70. | Liabilities associated with assets held for sale | - | 2,331 | (2,331) | (100.0%) | - | - | - |
80. | Other liabilities | 3,145,785 | 2,735,807 | 409,978 | 15.0% | 2,271,216 | 874,569 | 38.5% |
90. | Provision for post-employment benefits | 264,793 | 289,641 | (24,848) | (8.6%) | 307,910 | (43,117) | (14.0%) |
100. | Provisions for risks and charges: | 448,535 | 489,485 | (40,950) | (8.4%) | 495,298 | (46,763) | (9.4%) |
a) commitments and guarantees granted | 54,255 | 54,005 | 250 | 0.5% | 54,026 | 229 | 0.4% | |
b) pension and similar obligations | 85,035 | 86,756 | (1,721) | (2.0%) | 87,111 | (2,076) | (2.4%) | |
c) other provisions for risk s and charges | 309,245 | 348,724 | (39,479) | (11.3%) | 354,161 | (44,916) | (12.7%) | |
110. | Technical reserves | 2,149,201 | 2,210,294 | (61,093) | (2.8%) | 1,962,495 | 186,706 | 9.5% |
120.+150.+160. | Share capital, share premiums, reserves, valuation reserves | |||||||
+170.+180 | ||||||||
and treasury shares | 10,002,121 | 9,306,321 | 695,800 | 7.5% | 9,243,950 | 758,171 | 8.2% | |
190. | Minority interests (+/-) | 66,529 | 58,230 | 8,299 | 14.3% | 32,076 | 34,453 | 107.4% |
200. | Profit (loss) for the period/year (+/-) | 93,572 | 233,103 | (139,531) | (59.9%) | 83,435 | 10,137 | 12.1% |
Total liabilities and equity | 126,492,592 | 126,615,985 | (123,393) | (0.1%) | 126,819,804 | (327,212) | (0.3%) | |
26
Annex 5
Direct funding at over 94 bln/€: a slight decrease in corporate current account and deposits Indirect funding at 92.2 bln/€, -0.5% vs Dec '19 when excluding market performance
bln/€ | 31 Mar '19 | 31 Dec '19 | 31 Mar '20 | |
...from ORDINARY CUSTOMERS | 75.75 | 76.88 | 75.54 | |
of which | ||||
Current accounts and deposits | 65.66 | 69.04 | 67.95 | |
Term deposits, financing & other payables | 2.32 | 2.38 | 2.48 | |
Leasing payables | ||||
0.40 | 0.39 | 0.38 | ||
Bonds issued | 7.09 | 4.93 | 4.64 | |
Certificates of deposit | 0.27 | 0.13 | 0.08 | |
…from INSTITUTIONAL CUSTOMERS | 17.89 | 18.64 | 18.51 | |
of which | ||||
Covered Bonds | 13.02 | 10.57 | 10.54 | |
EMTN | 3.42 | 7.21 | 7.19 | |
Repos with CCG and other | 1.45 | 0.85 | 0.78 | |
TOTAL DIRECT FUNDING | 93.63 | 95.51 | 94.05 | |
AuM | 43.50 | 45.83 | 41.22 | |
Bancassurance | 25.52 | 27.26 | 27.08 | |
AuC | 29.75 | 28.36 | 23.95 | |
TOTAL INDIRECT FUNDING | 98.77 | 101.45 | 92.24 | |
- Current accounts and deposits in Mar '20: decrease (-1.6% vs Dec '19), mainly due to strategy to reduce corporate deposits, lowering balance with ECB
- Indirect funding: all items impacted by market performance effect
- AUM (net of insurance) down by 10,1% but +0,3% net of performance effect
- AUC down by 15,6% (-3,9% net of performance effect, following the exit of one large position)
- Insurance products substantially unvaried (+1,5% net of performance effect
- Repurchases not included
27 ** Please see annex 6 for the main list of issuances placed in 2019 and 2020
Evolution of the Group's Financial Assets
Financial Assets (Securities*, in bln/€)
21.95 | 20.07 | |||||||
17.20 | 19.15 | |||||||
9.53 | ||||||||
15.64 | 8.38 | |||||||
8.28 | ||||||||
1.40 | ||||||||
1.44 | ||||||||
1.24 | ||||||||
0.97 | 7.68 | 9.37 | 9.10 | |||||
5.34 | ||||||||
Dec' 16** | Mar '19 | Dec '19 | Mar '20 |
Focus on Italian Govies (Incidence on total financial assets)
75.7% | 55.4% | 51.1% | 54.6% |
Dec '16 | Mar '19 | Dec '19 | Mar '20 |
Annex 6
Italian Govies excluding insurance portfolio
Modest increase due to purchase of short term bonds to invest liquidity and on the trading book
Italian Govies insurance portfolio
o/w main changes Mar '20 vs Dec '19:
▪ Euro Area govies: | +1.2 bln/€ | |
▪ Corporate bonds: | -1.3 bln/€ | |
▪ Emerging markets: | -0.1 bln/€ | |
o/w main changes Mar '20 vs Mar '19: | ||
▪ Euro Area govies: | +1.3 bln/€ | |
▪ Corporate bonds: | -0.5 bln/€ | |
▪ Equity securities/ UCITS: | +0.1 bln/€ |
28 | * | Includes reclassified balance sheet items 20.3) , 30.3) and 40.3) |
** | Dec '16 aggregate includes UBI Banca Group Stand Alone (17,859 mln/€) + data of 3 Banks acquired in May 2017 |
Annex 7
Financial assets proprietary portfolio breakdown: Italian Govies maturities and main exposures
31 DECEMBER 2019 | |||||||||||||||||
FVTPL | FVOCI | AC | |||||||||||||||
(fair value through | (financial | ||||||||||||||||
(fair value | TOTAL | ||||||||||||||||
Amounts in mln/€ | other | assets at | |||||||||||||||
through profit or | |||||||||||||||||
comprehensive | amortised | ||||||||||||||||
loss) | |||||||||||||||||
income) | cost) | ||||||||||||||||
Financial Assets | 1,482 | 12,222 | 5,448 | 19,152 | |||||||||||||
(Securities and | |||||||||||||||||
derivatives*) | |||||||||||||||||
o/w Italian Govies | 9 | 5,520 | 4,258 | 9,787 | |||||||||||||
Financial Liabilities held for trading | 469 | ||||||||||||||||
Maturity of the Italian Govies Portfolio | |||||||||||||||||
Amounts in mln/€ | FVTPL | FVOCI | AC | TOTAL | TOTAL | ||||||||||||
31.03.20 | 31.12.19 | ||||||||||||||||
2020 | 328 | 1 | - | 329 | 16 | ||||||||||||
2021-2022 | 350 | 131 | 459 | 940 | 835 | ||||||||||||
2023-2025 | 4 | 2,562 | 703 | 3,269 | 3,305 | ||||||||||||
2026-2030 | - | 1,561 | 2,268 | 3,829 | 3,133 | ||||||||||||
From 2031 and over | - | 550 | 2,051 | 2,601 | 2,497 | ||||||||||||
Total portfolio | 682 | 4,804 | 5,482 | 10,969 | 9,787 | ||||||||||||
% of portfolio on | 6.2% | 43.8% | 50.0% | 100% | |||||||||||||
total Italian Govies | |||||||||||||||||
31 MARCH 2020 | ||||||||||
% Change | ||||||||||
FVTPL | FVOCI | AC | ||||||||
(fair value through | (financial | of TOTAL | ||||||||
(fair value | ||||||||||
other | assets at | TOTAL | amounts | |||||||
through profit or | ||||||||||
comprehensive | amortised | |||||||||
loss) | ||||||||||
income) | cost) | |||||||||
2,153 | 11,476 | 6,444 | 20,073 | 4.8% | ||||||
682 | 4,804 | 5,482 | 10,969 | 12.1% | ||||||
Financial Liabilities held for trading | 541 | |||||||||
Main exposures as at 31 March 2020 | ||||||||||
Portfolio: | Consolidated | o/w | ||||||||
Insurance | ||||||||||
Amounts in bln/€ | o/w Govies | o/w Corporates | o/w Loans | Govies | ||||||
and banks | ||||||||||
Italy | 10,969 | 1,134 | 631 | 1,441 | ||||||
Spain | 2,044 | 77 | 275 | |||||||
USA | 1,765 | 105 | 1 | |||||||
France | 952 | 116 | 31 | |||||||
Main 4 countries | 15,730 | 1,432 | 631 | 1,748 | ||||||
% on total amount | 93.9% | 73.3% | 96.8% | 96.5% | ||||||
* The analysis excludes equity securities (0.4 bln/€) and UCITs (0.6 bln/€)
29
Annex 8
Liquidity resources at 36.8 bln/€ (31/03/2020)
(i.e. over 50% of current accounts and deposits)
Destination (amounts in €/bln) | |||||||||||
Excess Liquidity on ECB Account | |||||||||||
Unencumbered | 23.8 | ||||||||||
5.8 bln/€ | |||||||||||
36.8 bln/€ | Pledged to ECB* | 10.3 | |||||||||
Eligible assets (net of haircut) | |||||||||||
Repos and other | 2.7 | ||||||||||
31.0 bln/€ | (mainly CCG) | ||||||||||
Composition of eligible assets (net of haircut) | |||||||||||
Italian Govies | 31% | ||||||||||
Foreign Govies | 11% | ||||||||||
Retained covered bonds | 16% | ||||||||||
Retained securitisation | 14% | ||||||||||
ABACO (credit claims) | 19% | ||||||||||
Other (mainly CCG repos) | 9% | ||||||||||
* Following the 1.5bn/€ reimbursement in September 2019, UBI Banca proceeded in December 2019 with the early repayment of a further 1 bln/€ TLTRO2, which now amount to nominal
30 7.5 bln/€ currently outstanding with expiry date 24 June 2020. As a result, the residual TLTRO2 total exposure amounts now to 10 bln/€, including also nominal 2.5 bln/€ expiring on 24 March 2021.
Annex 9
NPEs coverage up 56bps vs December 2019
High collective provisions on Stage 1 and 2 loans
LOANS TO CUSTOMERS AT AMORTISED COST (31 MARCH '20)
bln/€ | Gross exposure | Impairment | Carrying amount | Coverage | |||
losses | |||||||
NPEs | (7.5%) | 6.67 | 2.64 | (4.7%) | 4.03 | 39.56% | |
- Bad loans | (3.8%) | 3.41 | 1.76 | (1.9%) | 1.66 | 51.51% | |
- UTPs | (3.5%) | 3.15 | 0.87 | (2.7%) | 2.28 | 27.65% | |
- Past-due loans | (0.1%) | 0.10 | 0.01 | (0.1%) | 0.10 | 8.58% | |
Performing loans | (92.5%) | 82.20 | 0.45 | (95.3%) | 81.74 | 0.55% | |
TOTAL | 88.87 | 3.09 | 85.78 | 3.48% | |||
LOANS TO CUSTOMERS AT AMORTISED COST (31 DECEMBER '19) | |||||||
mln/€ | Gross exposure | Impairment | Carrying amount | Coverage | |||
losses | |||||||
NPEs | (7.8%) | 6.84 | 2.67 | (4.9%) | 4.17 | 39.00% | |
- Bad loans | (4.1%) | 3.55 | 1.85 | (2.0%) | 1.71 | 51.98% | |
- UTPs | (3.6%) | 3.17 | 0.81 | (2.8%) | 2.36 | 25.52% | |
- Past-due loans | (0.1%) | 0.11 | 0.00 | (0.1%) | 0.10 | 8.33% | |
Performing loans | (92.2%) | 80.85 | 0.46 | (95.1%) | 80.39 | 0.57% | |
TOTAL | 87.69 | 3.13 | 84.56 | 3.57% |
Coverage with write- offs
52.03%
67.66%
Coverage |
with write- |
offs |
50.92% |
67.12% |
- Reduction in gross NPEs stock: -2.4% vs Dec '19 and -29.4% vs Mar '19
- Reduction in net NPEs stock: -3.3% vs Dec '19 and -30% vs Mar '19
31
Annex 10
Capital Ratios as at 31 March'19.
Common Equity Tier 1 phased in ratio at 12.90%, Total Capital phased in ratio at 17.08%
m ln/€ | Dec '19 | Mar '20 |
Common Equity Tier 1 | 7,254.6 | 7,572.6 |
(after filters) | ||
Common Equity Tier 1 regulatory adjustments | -89.4 | -75.0 |
of which negative elements for deduction excess of expected losses | -84.5 | -13.4 |
over impairment losses | ||
Common Equity Tier 1 Capital (CET1) | 7,165.2 | 7,497.6 |
Additional Tier 1 before deductions | - | 397.9 |
Additional Tier 1 regulatory adjustments | - | - |
of which negative elements for deduction excess of expected losses | - | - |
over impairment losses | ||
mln/€ | Dec '19 | Mar '20 | |||||
Risk weighted assets | 58,086.3 | 58,143.1 | |||||
Total prudential requirements | 4,646.9 | 4,651.5 | |||||
Credit risk | 4,240.2 | 4,238.2 | |||||
CVA (Credit Value Adjustment) risk | 3.8 | 4.1 | |||||
Market risk | 81.0 | 87.3 | |||||
Operational risk | 321.9 | 321.9 | |||||
CET 1 ratio | TOTAL CAPITAL ratio | ||||||
Additional Tier 1 | - | 397.9 |
Tier 1 Capital (CET 1 +Additional Tier 1) | 7,165.2 | 7,895.5 |
Dec '19 | Mar '20 |
PHASED - IN 12.34% | 12.90% |
Dec '19 | Mar '20 |
PHASED - IN 15.88% | 17.08% |
Tier 2 Capital before transitional provisions
Tier 2 instruments grandfathering
Tier 2 Capital after transitional provisions
2,114.6 2,094.5
--
2,114.6 2,094.5
FULLY | 12.29% | 12.86% |
LOADED | ||
FULLY | 15.83% | 17.05% |
LOADED | ||
Tier 2 capital regulatory adjustments
of which: negative elements for deduction excess of expected losses over impairment losses
-58.4-58.0
--
• B3 Leverage ratios as at 31 Mar'20: |
✓ phased in 5.89% (5.44% in Dec '19) |
✓ fully loaded 5.87% (5.42% Dec '19) |
Tier 2 Capital | 2,056.2 | 2,036.5 |
TOTAL OWN FUNDS | 9,221.4 | 9,932.1 |
• LCR and NSFR > 100% |
(also excluding TLTRO2)
32
Annex 11
Issuances in 2020
20th January 2020
- AT 1 bondissuance on the wholesale market for a total 400mln/€ amount
- Thanks to the huge total amount of the orders received from approximately 450 institutional investors (over €6 billion), the initial coupon guidance, announced at around 6.5%, was reviewed downwards by 0.625% and the final coupon was set at 5.875% for the first five and a half years.
- The coupon is payable half-yearly in arrears on 20th June and 20th December of each year starting from 20th June 2020 (first coupon is short).The re-offer price is 100.
Allocation by | Allocation by | |||
Investor Geography | Investor Type | |||
Others, | Pension/I | Others ; | ||
18% | ||||
nsurance; | 3% | |||
UK&Ireland | ||||
Hedge 5% | ||||
; 29% | Funds; | |||
10% | ||||
Asia; 7% | ||||
Italy 8% | Banks; | |||
16% | ||||
France; | ||||
Fund | ||||
Switzerland | Germany& | 18% | Managers | |
; 10% | Austria; | 66% | ||
10% |
33
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Disclaimer
UBI Banca – Unione di Banche Italiane Scpa published this content on 08 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2020 15:13:05 UTC