Notes: Non accounting figures; (1) This aggregate includes the SME loans granted/purchased, distressed credit investments booked, senior financing loans granted in the period and the value of the deals signed but yet
to be booked, owing to a settlement structure based on multiple tranches or to a time lag between the signing of the master agreement and the date of loan disbursement/onboarding. This aggregate additionally
includes part of the net loans to existing customers of BIP, due to their features considered consistent with illimity's SME segment for about €60mln. It includes also the portfolio sold; (2) Deals in final stage of the
formalization of the agreement/contractual terms; (3) Specific business opportunities for which the bank envisages there is a reasonable expectation to close the transactions in the forthcoming months; (4) Including BIP
3
core SME for about €60mln and high yield bond for €27mln; (5) It includes financial instruments, accounted for in the balance sheet item "20. c) Other financial assets mandatorily at fair value" for accounting purposes;
(6) Gross Book Value at 31 October 2020; (7) Turnover related to Factoring only for the year 2020; (8) Credit line to be granted; (9) The AUM of the servicing unit includes the gross book value of distressed credit and
the value of property and capital goods managed by IT Auction, net of cash flows and portfolio disposals
-
Resilient and
Selective business origination
Dynamic portfolio
dynamic core
with focus on guarantees
management consistently
businesses
produces sizable profits
No loan book deterioration,
moratorium unchanged
Continued performance in
gross cash flow
Investing to
play new
Unique value proposition
market
in UTP portfolio opportunities based on cross-competencies
opportunities
illimitybank.com keeps delivering according to plan
JV with Fabrick in , the
leading Italian fintech platform in digital financial services
Strong impulse to digitalisation paves the way to success of
Open banking platforms
4
-
HOME
PRODUCTS
CURRENT ACCOUNTS
DEPOSITS
PSD2
…
BANK PLATFORM
illimitybank.com
FINTECH PLATFORM
WHITE LABEL PLATFORM
(coming soon)
STRONG TECH &
COST SYNERGY
3rd PARTY
PRODUCTS
CONSUMER CREDIT
PAYMENTS
UTILITIES
…
5
-
TRADITIONAL RETAIL
OPEN BANKING
BANKING
for most players
• Branches + Home
• Mostly machine-based
banking
relationship
• Presence in many
• Home product factoriescountries without any local leadership
• High costs
• Mostly commodity products
OPEN BANKING at illimity
approach
Multiple choice of
in selected countries
of valuable third-party products
DECREASING VOLUMES
INCREASING VOLUMES
NEGATIVE P&L
NEGATIVE P&L
6
Direct Banking
Carlo Panella
7
The JV: a unique way to address the retail banking arena
HOME
PRODUCTS
CURRENT ACCOUNTS
DEPOSITS
PSD2
…
BANK PLATFORM
illimitybank.com
FINTECH PLATFORM
WHITE LABEL PLATFORM
(coming soon)
STRONG TECH &
COST SYNERGY
3rd PARTY
PRODUCTS
CONSUMER CREDIT
PAYMENTS
UTILITIES
…
Coherent with illimity's strategy
Accelerates illimity's growth
ambition in retail and open banking arena
Reduces execution risk of our retail and open banking strategy
Generates value via synergy and by positioning illimity at the frontier of innovation in retail banking
8
illimitybank.com continues to record impressive results in customer engagement
Data as of 31 October 2020
Funding goals over-achieved thanks to €1bn funding
with a decreasing cost of funding
(-30bps cost of funding on illimitybank.com Oct. vs Jan. 2020)
• Focus on Digital
Platform enhancement and improvement to increase stickiness and customer engagement
~39k
85%
+85%
+152%
30%
51
Total Customers
at 31 October 2020
Active Customers
o/w 28% already chosen illimity as primary bank
Conveyed payrolls
October vs January
SDD(1)
October vs January
Brand Awareness
Net Promoter Score
September (vs 9 fmarket average)
Notes: (1) Sepa Direct Debit.
9
HYPE: by far the leading fintech challenger in Italy per number of users
HYPE is thefirst Fintech challenger in Italy per number of users
1
Fintech
challenger
Number of users - in thousands
(Italian Market - Sept 2020)
~1,300
~700
~500
<100
Challenger 1
Challenger 2
Challenger 3
Distinctive
•
Simple and straightforward user experience
features
•
Wide product offering (proprietary products and third-party offering)
Main KPIs
77%
~20%
1-2k
~4mln
users with a
Subscriber
new customers
Number of
positive
users
acquired daily
transactions
balance
per month
Source: HYPE.
10
HYPE: becoming one of the challengers with the most complete proposition
# of users
Challenger 1
Challenger 2
Challenger 3
Italian Market only
1.3mln
~0.7mln
~0.5mln
<0.1mln
BANKING
Payment Account
Debit Card
SEPA Transfer
International Transfer
PSD2
Account Aggregation (AISP)
Move Money (PISP)
Spending Categories
Budgets
PFM
Saving tool
Expense forecast
Saving goals / projects
Peer Comparison
HYPE already has a comprehensive offer, in line with main competitors…
…and thanks to
illimity synergy in
PSD2 and PFM services, HYPE offer
will became one of the most complete and appealing in the market
Contribution from illimity
3PP
Marketplace
11
Strong benefits from integration of technology and expertise
HYPE strong customer
Technology
acquisition capacity
Strengthen market positioning and enriching HYPE
1-2k customers acquired per day
product offering thanks to technology integration, coupled
with important cost benefits
illimity engagement engine
85% of active clients
28% of clients where illimity is the primary bank
Resources
Creation of a highly qualified team, thanks to the integration
of illimity and HYPE expertise
12
- HYPE key targets fuelled by Joint Venture
3 million customers
Net profit
by 2025
€3.5mln by 2023
€17mln by 2025
13
HYPE transaction 3Q20 Financial review
Francesco Mele, CFO & Head of Central Functions
14
- HYPE partnership transaction structure
illimitywill acquire 50% of HYPE's share capital
through the following corporate transactions:
DEAL STRUCTURE
10%
(Controlled by Group)
50%50%
€30mln
€45mln
HYPE cash capital increase reserved to illimity
Newly issued illimity shares for 7.5% of its share capital reserved to Fabrick at an issue price of €8.337 per share
Selected illimity technology asset contributed to HYPE
At the closing date, the Sella Group will underwrite an additional share capital increase regulated in cash equal to 2.5% of illimity's share capital, thus bringing its total shareholding in illimity to 10%. illimity issue price for the entire 10% stake set at €8.337 per share
Earnout for an additional stake in illimity linked to HYPE results in 2023 and 2024 bringing Sella total stake up to a maximum of 12.5%
15
HYPE will create substantial value for
illimity
Cost synergies
Revenue synergies
Pro-rata HYPE profit
•
Immediate lower
• Placement of
• €3.5mln in 2023
costs in illimity Direct
illimity's products
• €17mln in 2025
Banking Division
•
Funding
diversification with
lower cost of funding
Positive contribution
to illimity's net results already in the first year and due to grow to:
€10mln
in 2023
€20mln
in 2025
EPS including synergy
substantially neutral
~20bps positive impact on
CET1 ratio at closing and increasing in following years
16
- 3Q20: another resilient quarter
Steady revenue progression with further growth in net interest income and resumed commissions
SME Division: resilient performance with robust new business origination in lending with public guarantees
Low level of provisions in 3Q20 reflecting strong asset quality and
new origination backed by public guarantees
DCIS Division: strong performance in gross cash flow and steady profits from closed positions
CET1 ratio increased to over 19% despite loan book growth
17
- Solid balance sheet
Data in €mln
Reclassified Balance sheet
30.09
31.12
30.03
30.06
30.09
Δ30.09.20/
30.09.20/
2019
2019
2020
2020
2020
30.06.20%
30.09.19%
1
Cash and cash equivalent
110
772
219
311
543
74%
391%
Due from banks and other financial institutions
271
345
657
643
645
0%
138%
2
Customer loans
1,255
1,638
1,662
1,766
1,831
4%
46%
- DCIS1 investments
488
667
674
724
733
1%
50%
- DCIS1 senior financing
334
341
334
337
331
(2%)
(1%)
- SME2
320
527
556
613
685
12%
114%
- Cross-over & Acq. Finance2
219
261
278
315
366
16%
67%
- High yield bond
-
-
-
13
23
80%
n.s.
- Turnaround
61
131
154
156
173
11%
184%
- Factoring
40
135
123
129
123
(5%)
207%
- Non-core former Banca Interprovinciale
113
103
99
92
83
(10%)
(27%)
Financial assets Held To Collect (HTC)
103
-
-
-
-
n.s
n.s
3
Financial assets Held To Collect & Sell (HTCS)3
92
126
335
286
137
(52%)
49%
Financial assets measured at FVTPL4
10
9
8
12
17
41%
76%
Goodwill
22
22
36
36
36
0%
67%
Intangible assets
15
19
22
26
29
13%
92%
Other assets (Incl. Tangible and tax assets)
78
95
114
158
154
(2%)
97%
Total assets
1,956
3,025
3,052
3,238
3,392
5%
73%
Due to banks
397
377
468
583
541
(7%)
36%
4
Due to customers
906
1,979
1,911
1,915
2,125
11%
135%
Shareholders' Equity
543
544
537
563
575
2%
6%
Other liabilities
110
125
135
176
151
(14%)
38%
Total liabilities
1,956
3,025
3,052
3,238
3,392
5%
73%
5
Common Equity Tier 1 Capital
466
462
439
466
478
3%
3%
6
Risk Weighted Assets
1,613
2,162
2,347
2,548
2,497
(2%)
55%
Robust liquidity profile: €700mln between
cash, net adjusted interbank position and liquidity buffers owing to strong deposits gathering and Treasury portfolio divestment
Net customer loans up 4% qoq mostly on
growth in SME lending with a strong contribution from loans with public guarantees
Securities portfolio reduced to €137mln -
negative mark-to-market(M-t-M) to equity down to €1.7mln after tax
Retail & corporate funding up 7% to €1.9bn on
further growth in deposits at illimitybank.com
CET1 capital up to €478mln mainly
underpinned by profit generated in the quarter and the lower M-t-M of the securities portfolio RWA slightly down notwithstanding growth in
business thanks to early benefits of RWA optimization initiatives
Notes: Rounded figures; IT Auction consolidated for the first time in 1Q20; (1) DCIS: Distressed Credit Investment & Servicing Division (previously named NPL I&S); (2) This figure includes part of the net loans to
existing customers of Banca Interprovinciale, which due to their features are considered consistent with illimity's SME segment; (3) HTCS: Financial assets measured at fair value through comprehensive income; (4)18
FVTPL: other financial assets at fair value through profit or loss. This item includes equity financial instruments purchased as part of a Turnaround transaction, junior tranches acquired as part of senior financing transactions and investments in distressed credits in the energy sector purchased via a joint venture, as part of the DCIS division's activities.
onboarding of the business originated at the end of the previous quarter and by new business growth. It includes€0.4mln credit revaluation event in Turnaround
Pick up in net fees supported mainly by resumed IT Auction's activity and factoring business Steady stream of gains from closed distressed credit
positions either sold to third parties or agreed with debtors (DPO(3)) Operating costs increasing vs 2Q20 mainly on higher
collections and onboarding costs and despite normalisation of staff costs
Low level of provisions in 3Q20 on stable asset
quality and new origination backed by public guarantees
Pre-taxprofit increasing 31% qoq
Notes: Rounded figures; IT Auction consolidated for the first time in 1Q20; (1) Interest expenses restated to exclude costs related to Debt for leasing, now reclassified as administrative costs; (2) Gains from definitive
19
closure of non-performing exposures either through disposal to third parties or through discounted payoff agreed with the debtor; (3) Discounted pay off recovery strategy (the so-called "saldo e stralcio").
KPIs confirming strong asset quality androbust capital and liquidity
4Q19
1Q20
2Q20
3Q20
9M20
Cost-Income
73%
79%
82%
69%
76%
Organic Cost of Risk
46bps
124bps
52bps
13bps
58bps
(bps) annualised(1)
Gross Organic NPE
4.2%
4.2%
4.2%
3.8%
3.8%
ratio(2)
LCR
>1,000%
>1,000%
>1,000%
~700%
~700%
CET1 ratio
21.4%
18.7%
18.3%
19.2%
19.2%
Improving operating leveragewithCost-Incomeratio down to 69% in 3Q20
Stable asset quality and new origination mostly in loans with public guarantees drivingCost of Risk annualised to 13bps in 3Q20 - 58bps for the 9M20
Organic NPE ratio further down to 3.8%
Ample liquidity buffer
NSFR comfortably above minimum requirements
CET1 ratio increasing to 19.2%
Notes: (1) Ratio of loan loss provisions to net loans to customers end of period (€975.2mln as of 3Q20) from Factoring, Cross-over, Acquisition Finance, High-yield bond, BIP legacy book and Senior Financing - thus excluding UTP loans purchased or originated as part of the Turnaround business and the investments in Distressed Credit portfolios; (2) Ratio of gross NPE to total gross loans to customers from Factoring, Cross-over, Acquisition Finance, High-yield bond, BIP legacy book and Senior Financing to non-bank Distressed Credit investors - thus excluding UTP loans purchased or originated as part of the Turnaround and the investments in20 Distressed Credit portfolios. Any failure to reconcile the stated figures arise exclusively from rounding.
- CET1 Ratio above 19%
18.3%
CET1 ratio
19.2%
2.3
2.9
0.2
0.6
(3.4)
478.3
9.5
466.2
2Q20
3Q20
M-t-M
DTA
IFRS9
Other
Increase in
3Q20
CET1
net profit
securities
decrease
prudential
impacts
intangible
CET1
portfolio
filter
assets
3Q20/2Q20 €mln
2,548
RWA
2,497
CET1 Capital increasing by 3% qoq mostly on positive net profit contribution and reduction in negative M-t-M of securities
Decline in RWA in spite of volume growth in the quarter driven by capital optimisation initiatives - more to come in forthcoming quarters
Including special shares(1) and estimated benefit from the EU banking package, CET1 ratio would reach around 20.4% on apro-formabasis
Notes: Rounded figures; (1) Subject to regulatory approval.
21
- Dynamic securities portfolio
Securities portfolio
286
137
Jun-20Sept-20
HTCS
Portfolio composition
30 September 2020
18.4%
33.0%
€137mln
48.6%
Senior corporate
Subordinated
bonds
bonds
Italian Govt. bonds
Dynamic treasury portfolio management to reduce exposure to market volatility, mostly through tactical
divestment of Italian Government bonds
NegativeM-t-M(1)at approx. €1.7mln after tax on 30 September
Duration2.3 years
Average yield approx.1.2%
Notes: Rounded figures; (1) Valuation reserves on financial assets (other than equity instruments) at fair value through other comprehensive income.
22
- Balanced and inexpensive funding
Maturity mix
illimity offline(1)
Raisin
illimitybank.com Wholesale
~€0.8bn
~€0.8bn
~€1bn
~€2.6bn
10%
33%
27%
15%
45%
10%
13%
75%
18%
36%
56%
33%
24%
4%
1%
Sight
Short Term
Medium-Long
Total
Term
30%
32%
38%
100%
Medium-Long Term funding maturity 3.2 years
~1.4% blended average cost of funding
€185mln TLTRO-III
Notes: Rounded figures; Non accounting figures; short term maturity includes funding with residual maturity below 18 months; (1) illimity offline channels, mostly corporate deposits.
23
SME Division
Enrico Fagioli
24
- Specialist partner of Italian SME
Cross-over and Acquisition Finance
SME with industrial potential and support to external growth strategies
Turnaround finance
Unlikely-to-pay corporate exposures with potential to return to a performing status
Factoring
Support to industrial districts value chain
Cross-over
Acquisition Financing
Investment in high yield corporate bonds in industries in which we are specialists
Refinancing
Restructuring
New finance
UTP portfolios
Short-termfinancing through factoring
25
Public guarantees supporting robust new business origination
Strong acceleration in business origination across all sectors with a robust pipeline
Good share of new business in loans with public guarantees, a profitable segment in great demand
Pick-up in new business origination in Turnaround and additional credit revaluation booked for the second quarter in a row
26
Strong and very selective business
origination
Selective approach
• 446 deals analysedsince
inception worth ~€4.5bn in
nominal value
•292 deals declined worth
~€3.2bn
• 19 deals withterms
agreed and to be signed
shortly worth~€112mln
•13 deals currently under
evaluation in advanced
statusworth ~€135mln
• Other opportunities
identified for additional
Data in €mln
Customer loans unless otherwise stated Non accounting figures
Cross-over
& Acq. Finance
Turnaround
Factoring
A
Originated
B
C
A+B+C
business(1)
Inception to date
Terms
Advanced
BP 2018-23
agreed(2) to
Total
(10 November 2020)
pipeline(3)
Target 2020
be signed
475(4)
~83
~48
~606
~300
243(5)
~29
~87
~359
600 - 700
T/O(7) 586
~107(8)
128(6)
~79
~314
~300
~€398mln
66 deals signed since
inception
Total SME
846
~191
~242 ~1,279 ~1,200-1,300
Originated business
Notes: Non accounting figures; (1) This aggregate includes the loans originated/purchased in the period, thus already income-producing, and the deals signed but yet to be booked, due to a settlement structure in multiple tranches or to a time lag between the signing and the date of loan disbursement; (2) Deals in final stage of the formalization of the agreement/contractual terms; (3) Specific business opportunities for which
the bank envisages there is a reasonable expectation to close the transactions in the forthcoming months; (4) Including BIP core SME for about €60mln and high yield bond for €27mln; (5) It also includes financial 27 instruments, such as quasi-equity instruments, which are accounted for in the balance sheet item: "20. c) Other financial assets mandatorily at fair value" for accounting purposes; (6) Gross Book Value at 31 October 2020; (7) Turnover related to Factoring only for the year 2020; (8) Credit line to be granted.
Cross-over& Acq. Finance: robust origination continued into 3Q20
A
Originated business
B
C
A+B+C
Target
Terms agreed to
Advanced
Total
2020
be signed
pipeline
Data in €mln
Total 475
~83
~48
~606
~300
BIP Core 60
415
27 34
381
More than half of business origination
in 3Q20 is in lending with public support
measures
Confirmed selective approach to pipeline in a dynamic market
Booked(1) Signed but not booked(2)
Notes: Rounded figures; (1) Income-producing loans; (2) Deals signed but not yet booked, due to a time lag between the signing of the master agreement and the date of loan disbursement.
28
Turnaround: taking opportunities from public measures
A
B
C
A+B+C
Target
Originated business
Terms agreed to
Advanced
Total
2020
be signed
pipeline
Data in €mln
Total
243
~29
~87
~359
600 - 700
17 23
220
Pick-up in business origination in deals with the support of public measures
Over €20mln potential revenue upside(3)from credit revaluation events
- additional €0.4mln booked in 3Q
Booked(1) Signed but not booked(2)
Notes: Rounded figures; (1) Income-producing gross loans origination, including new finance, acquired credit and related instruments. It includes financial instruments, such as quasi-equity instruments, which are
accounted for in the balance sheet item: "20. c) Other financial assets mandatorily at fair value" for accounting purposes; (2) deals signed but not yet booked, due to a time lag between the signing of the master 29 agreement and the date of loan disbursement; (3) Additional potential revenue related to revaluation of equity, quasi-equity instruments and credit revaluation.
- Factoring: back to pre-Covid level
A
Originated business
B
C
A+B+C
Target
Terms agreed to
Advanced
Total
2020
be signed
pipeline
Data in €mln
Total 128
~79
~107
~314
~300
Outstanding(1)
26
135
135
123
129
124
128
Turnover(2)
240
66
586
241
298
161
119
57
1H19 (3)
2H19
FY19
1Q20
2Q20
3Q20
Oct-20
Year to
date
Strong pick up in factoring in 3Q20
with turnover monthly average back to pre-Covid level
Outstanding nearly ready for SRT(4) initiatives which will free-upcapital
Signed agreement for €73mln credit
lines, to produce revenue from 4Q20
Notes: Rounded figures; Non accounting figures; (1) Outstanding: in a factoring transaction, the outstanding amount is the amount of receivables transferred and not yet collected at a certain date; (2) Turnover: in a
30
factoring transaction, the total amount of receivables transferred over a defined period of time; (3) Start-up phase; (4) Significant Risk Transfer, a capital management initiative that reduces capital absorption.
- Effective use of public measures
REGULATORY FRAMEWORK
'Cura Italia'
l. 27/2020
'Liquidità'
l. 40/2020
~€70-100mln~€240-270mln
~€79mln
PUBLIC~€89mln
GUARANTEES(1)
Fondo Centrale Garanzia
SACE
Requests for moratorium unchanged at ~€86mln
4%
MORATORIUM
o/w 35% with an already
44%
52%
defined refinancing operation
with public guarantee
• Art. 56 DL 18/2020
•
ABI Moratorium
Ex lege (corporates)
Bilateral agreements Other
•
Bilateral agreements
Notes: As of today; (1) Refers to Cross-over and Turnaround.
31
Distressed Credit I&S Division
Andrea Clamer
32
Building the Italian Corporate Distressed
Credit champion
Investment
Senior Financing
Servicing
Acquisition of secured and unsecured Corporate Distressed
Credit
Financing solutions for Distressed Credit non-bank investors
Workout services and remarketing for captive and 3rd parties' corporate Distressed Credit
Investment
Servicing
Remarketing
Origination
Due
Pricing
Bidding
Onboarding
Workout &
Remarketing of
Diligence
Recovery
Distressed Credit collaterals
33
Strong performance and dynamic portfolio management continued in 3Q20
Gross cash flow in 3Q: robust and ahead of initial plans
Additional €11.6mln profit from our dynamic approach to portfolio management
and workout strategy led by out-of-courtsettlement
Landmark transaction in UTP portfolios confirms the strength of illimity's
business model based on integrated competencies of DCIS, SME and neprix
Distressed credit market remains dynamic and with diminishing competition -
strong pipeline ahead
34
- Building the Italian Servicing Champion
From January 2021xxxxxxxxxwill be fully merged inxxxxxxxxxcreating the first fully integrated servicer
Enhances neprix's market positioning by
broadening its range of services
Data as of October 2020
€9.4bn
~220
Cross-fertilization of competencies across
the entire credit management value chain
GBV AUM
Total FTE
>700k
~22mln
Full integration will maximise costs and
revenue synergy
Registered users
Yearly online portals
35
online portals
webpage views
Outperformance of cash flow continued
into 3Q20
Cash Flow view(1)
3Q20 Economic view
Data in €mln
Data in €mln
Cumulativecash flow: actual vs. planned
Interest
Fee income Adjustments(3)
Gross
income(2)
Revenues(4)
176.9
99.4
Actual
Planned
Actual
Expected
Delta
Cash Flow
Cash Flow
Cash Flow
Q3 20
38.0
20.6
+17.4
Cumulative 176.9 99.4 +77.4
Investment
Senior
Financing
Total
Interest(2)
Q3
Adjustments
Q3
10.7
Adjustments 9M 34.8
24.1
-
10.7
34.8
3.8
0.5
-
4.3
27.9
0.5
10.7
39.1
NBV
Gross IRR
Period from
onboarding
Delta
ERC(5)
Cash Flow
Update
+17.4
-6.7
Delta
ERC(5)
Cash Flow
Update
+56.7-21.9
Notes: Rounded figures; (1) Cash flow from receivables; (2) Measured based on amortized cost; (3) Outcome of the Distressed Credit business plan periodic review; it includes €11.6mln reclassified in operating income 36 (gains from closed purchased distressed credit positions) and -€0.9mln accounted for in value adjustments on purchased distressed credit; (4) Revenues before any cost of funding; (5) Estimated Remaining Collection.
- Landmark transaction in UTP portfolios
SME Division: Turnaround
Restructuring competencies
DCI Division
Distressed credit workout competencies
Management of granular positions,
both going and gone concern
€600mln transaction in UTP
portfolio via competitive bid
illimity features a unique business model that combines cross-
divisional competencies
illimity positions as a leading player in this attractive market segment
37
- A disciplined business origination
Strong discipline drives selective approach
•
~€54bn of GBV
analysed since
inception
•
~€42bn of GBV
declined/lost since
inception
•~€8bn of GBV signed
Data in €mln
Customer loans unless otherwise stated Non accounting figures
Distressed Credit
Investment
Senior
Financing
A
Originated
B
C
A+B+C
business(1)
Inception to date
Terms
Advanced
BP 2018-23
agreed(2) to
Total
(10 November 2020)
pipeline(3)
Target 2020
be signed
1,154(4)
~10
~185
~1,349 1,700-2,000
441
-
~47
~488
100-200
since inception
•~€4bn of GBV
currently under
evaluation
Total Originated
1,595
~10
~232
~1,837
1,800-2,200
Business
Servicing(5)
~9,400
~60
~1,800
~11,300
5,100-6,300
AUM (GBV/Managed assets)
Notes: Non accounting figures; (1) This aggregate includes Distressed Credit investments booked, Senior Financing loans granted in the period, and deals signed but yet to be booked, owing to a settlement structure in multiple tranches or to a time lag between the signing of the master agreement and the date of loan disbursement/onboarding. It includes also the portfolio sold; (2) Deals in final stage of the formalisation of the agreement/contractual terms; (3) Specific business opportunities for which the bank envisages there is a reasonable expectation to close the transactions in the forthcoming months; (4) It also includes financial instruments, such as quasi-equity instruments which are accounted for in the balance sheet item "20. c) Other financial assets mandatorily at fair value" for accounting purposes corresponding to the investments in 38 energy distressed credit; (5) The AUM of the servicing unit includes the gross book value of distressed credit and the value of property and capital goods managed by IT Auction, net of cash flows and portfolio disposals.
Entering the most dynamic season of
the year
Originated business
Data in €mln
Distressed
Credit
Investment
Senior Financing
Total 1,154
158
996
(1)
Total 441
13 27
441
(1)
Booked(2) Signed but not booked(3)
Business origination affected by seasonality
and small delay of some closing after the end of the quarter
Senior financing focused on
high yield investments
Notes: Rounded figures; (1) Including September 2018; (2) Distressed credit investments booked, and senior financing loans granted in the period; (3) Deals signed but not yet booked, owing to a settlement
39
structure in multiple tranches or to a time lag between the signing of the master agreement and the date of loan disbursement/purchase.
- High quality portfolio in line with targets
Data as of 30 September 2020
NBV breakdown by type of guarantee
Secured
KPIs
~€737 Carrying
Type of borrower
Retail
8%
(GBV breakdown)
92%
Corporate
59%
~€737
mln
41%
Unsecured
mln value(1)
1.4x
Cash on Cash multiple
~€998
ERC(1) (2)
mln
Vintage(3)
(GBV breakdown)
Actual workout strategy
(Cash flow breakdown(4))
Pre-2010
13%
50% 2015-2019
37%
2010-2014
Out-of-court
75% settlement
24%
Judicial 1%
Other(5)
Notes: Rounded figures; (1) This includes distressed credits purchased by the Energy desk, which for accounting purposes are recognised at Fair Value (item 120 c); (2) Estimated Remaining Collections on booked
40
investments; (3) Only considering bad loans; (4) It does not include assets repossession (through ReoCo and datio in solutum); (5) Mainly refers to positions for which data remediation is ongoing.
Concluding remarks
Corrado Passera, CEO
41
Silvia Benzi
Head of Investor Relations & Strategic Planning
Mobile: +39 349 7846537 - +44 7741 464948
Email: silvia.benzi@illimity.com
42
Disclaimer (1/2)
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43
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illimity Bank S.p.A. published this content on 11 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2020 10:02:01 UTC
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