BANCA CARIGE SpA Cassa di Risparmio di Genova e Imperia

Transcription

1 -1- BANCA CARIGE SpA Cassa di Risparmio di Genova e Imperia European Banks & Misc. Financials KBW Conference 2006

2 -2- Agenda Banca Carige overview Carige share performance 1H06 results The Strategic Plan Focus on main strategic projects Annexes

3 -3- Banca Carige Group Fondazione CR Genova e Imperia CNCE WestLB Others 40.46% 14.75% 5.34% 39.44% Banca Carige SpA Cassa di Risparmio di Genova e Imperia Banking Insurance Finance Trustee Real Estate Banca Carige BM Lucca Cr Carrara Cr Savona B.Cesare Ponti Carige Vita Nuova (life) Carige Ass.ni (non life) Carige AM SGR

4 -4- Rating and Ranking Carige Group: rating and ranking in Italian Market RATING Fitch A Moody s A2 Standard&Poor s A- RANKING BY SIZE ~15 (Branches & Total Assets) M A R K E T C A P 1 Unicredito Intesa + San Paolo Capitalia MPS BPVN 8.4 6BPU 7.5 7BPI 5.7 8B Lombarda 5.6 9Banca Carige Bca Fideuram BPM CR Firenze Credem Banca Italease Cr Bergamasco 1.8

5 -5- Our mission Financial Group National Quality of service Quality of resources and structures Complete offer of banking, financial and insurance products and services Aggregation point for smaller banks Stronghold in Liguria Out of Liguria it distinguishes itself for the attention to the relationship with local communities Focus on retail Widespread and intensive use of technology Specialisation of distribution and production structures Unitary management of the Group s keyexpertises Professional development of human resources

6 -6- Our history Establishment of Cassa di Risparmio di Genova Change of name to Cassa di Risparmio di Genova e Imperia Creation of a Multifunctional group IPO: first savings bank to be floated on the Italian Stock Exchange Capital increase reserved to institutional investors Acquisition of 124 branches from BdS, Intesa and Capitalia Establishment of Carige AM SGR SpA - acquisition of Banca C. Ponti oundation of onte di Pietà di enova Merger of Monte di Pietà into Cassa di Risparmio di Genova Banca Carige becomes the banking subsidiary of Foundation Commitment of the Foundation to privatise Banca Carige. Merger of financial subsidiaries Acquisition of the Italian insurance activities of Baloise Group; the non life company Carige Ass.ni and the life company Carige Vita Nuova (formerly Levante Ass.ni and Basilese Vita Nuova) International partnership agreements (CNCE, WestLB and El Monte); acquisition of BML and Cassa di Risparmio di Savona Capital increase; acquisition of Cassa di Risparmio di Carrara Capital increase ( 215M)

7 -7- M&A activity Year Capital collected Euro M Year Acquisitions Euro M IPO Cassa di Risparmio di Savona Bond conversion into new shares Insurance companies Capital increase underwritten by La Basilese Banca del Monte di Lucca 63 Capital increase underwritten 1998 by institutional investors 116 Capital increase underwritten 1999 by CNCEP, CDC, WestLB branches from Banco di Sicilia branches from Intesa branches from Capitalia Issue of a subordinated loan 400 Capital increase and issue of 2003 subordinated convertible bonds Cassa di Risparmio di Carrara Banca Cesare Ponti : Total 1,270 Total 1,269 Capital increase of 215M The capital collected was entirely invested in acquisition

8 -8- The geographical expansion (96%) branches in Liguria and 94 (69%) in Genoa province / /60 12/30 19/18 247/15 55/24 1/5 3/11 50% branches in Liguria; Market share: 30% 33/ /34 7/ /53 Banking branches Insurance outlets Branches Employees Regions Branches/ outlets Employees Regions Bank 137 2,962 4 Banks (*) 500 4,736 12/20 Insurances /20 Group 895 5,101 20/20 (*) Nice (France) included.

9 -9- The growth of volumes and results LENDING AND DEPOSITS ( m) NET PROFIT ( m) 47,119 CAGR CAGR +11,4% +12.3% 8, SHAREHOLDERS EQUITY ( m) EMPLOYEES 226 2,137 CAGR CAGR +15.1% 5,101 2, %

10 -10- Loans to customers Loans by segment Loans by area Public Entities Other 6% 7% Private & Affluent 4% South + Isles 4% Centre Retail 39% SME & Corporate 44% 15% North 27% Liguria 54% 1H06 data Total Loans (1H06) 14.8 billion

11 -11- Deposits Deposits by segment Deposits by area Public Entities 10% Other 3% Private & Affluent 42% North 11% Centre 11% South + Isles 5% Retail 33% SME & Corporate 12% Liguria 73% 1H06 data Total Deposits (direct+indirect, 1H06) 34.5 billion

12 -12- Net Profit Net Profit by segment Net Profit by area Insurance 3% Public Entities 3% Other 10% Private & Affluent 26% North 11% Center & South 10% Retail 23% SME & Corporate 35% Liguria 79%

14 -14- Ordinary shares Annual average yield per ordinary share since IPO (1994) Total Return 17.4% (with dividends reinvested in security) Ordinary shares Market Cap: ~ 4.7 bn Saving shares Market Cap: ~ 0.7 bn Carige Market Cap: > 5.4 bn Simple price appreciation 13.6% Price at 31 August 2006 (3.95 )

16 -16-1H06 PROFIT & LOSS LOSS NET INTEREST INCOME ( m) NET COMMISSION ( m) TOTAL REVENUES ( m) % % % 1H05 1H06 1H05 1H06 1H05 1H06 PROVISIONS ( m) OPERATING COSTS ( m) NET PROFIT ( m) % % % 1H05 1H06 1H05 1H06 1H05 1H06

17 -17-1H06 INTERMEDIATION ACTIVITIES & RATIOS TFA ( b) AUM ( b) LOANS TO CUSTOMERS ( b) % % % 1H05 1H06 1H05 1H06 1H05 1H06 ROE (%) TIER I (%) TOTAL CAPITAL (%) 4.7% net of Bank of Italy revaluation 8.35 Paid Capital increase Included ( 215M) Paid Capital increase Included ( 215M) H06 1H06 1H06

19 -19- Our strategy Independence through growth Capital base strengthening and opening to new shareholders Expansion and diversification Rationalisation and profitability enhancement

20 -20- The core priorities of the Strategic Plan Strengthening of operating efficiency and profitability enhancement Profitability enhancement of subsidiaries (banks and insurances) and of each business area (lending, wealth management, payment system) Cost Management Growth through productivity improvement Increase of volumes per employee: cross-selling, up-selling and retention in Liguria rising of market share outside Liguria, also in synergy with insurance agents Risk management Re-engineering of business processes Control of the economic impact of risks

21 Targets E CAGR CAGR CARIGE GROUP Total Intermediation ( b) % 6.7% - TFA ( b) % 6.4% - Loans to customers ( b) % 7.3% Net profit ( m) % 18.9% Shareholders equity ( b) 2,1 2,7 1.0% 7.9% ROE 6.2% 8.2% ROE adjusted (*) 8.3% 10.3% Cost Income 66.4% 54.7% Tier 1 6.5% 8.2% Total capital ratio 8.8% 11.8% CARIGE BANK Net profit ( m) % 14.7% Dividends ( m) % 7.1% EPS ( ) BVPS ( ) P/E ( ) P/BV ( ) (*) Equity net of the revaluation of the participation in Bank of Italy (547 m)

22 -22- Loans and TFA: 2008 targets LOANS LOANS TO TO CUSTOMERS CUSTOMERS ( b) ( b) CAGR (1) TFA TFA ( b) ( b) CAGR (1) +6,7% +6,7% +6.3% +6.4% ML Term Short Term % +6,7% +6,7% +7.4% +17.5% +7.2% +4.8% +7.9% Direct Deposits Indirect Deposits % +5.0% +8.9% +7.6% (1) 2008 targets / 2005 results

23 -23- Cost income, revenues and costs: : 2008 targets REVENUES NET OPERATING INCOME 254 CAGR 22.6% CAGR 9.1% CAGR 10.3% CAGR 8.3 % 1, E Non interest income Net interest income OPERATING COSTS E Cost income (1) 66.4% 1H06: 60.5% 54.7% CAGR 2.2% CAGR 2.7 % CAGR 1.9 % Other costs 354 Personnel expenses E ) Cost income 2005 pro forma (provisions to reserves for risks and arges not included)

24 -24- The plan of internal growth The Group has drawn up a plan to increase the number of its branches between 2006 and The new branches will be principally localised in the regions next to Liguria (Lombardia, Piemonte, Emilia Romagna, Toscana, South France), in order to enforce the brand where it already exists. The Plan foresees 98 openings (75 under Carige brand and 23 under the brands of the other banks of the Group). CARIGE GROUP BRANCHES NEW BRANCHES BY BANK TOTAL CR Carrara The localisation of the new branches responds to two main principles: - market attractiveness (potential customers, competition) -achievement of a market share of 5% (the minimum market share to grant the development of the business).

26 -26- The Projects of the Strategic Plan THE STRATEGIC PROJECTS: IMPACTS & LIFECYCLE DEFINITION & PLANNING PILOT IMPLEMEN- TATION TESTING & MONITORING CLOSURE & RUNNING Distribution Distribution New Front office Back offices centralisation Liguria project Commercial strengthening program Production Production JV-Consumer Credit Basel II PFP Collaboration branchesinsurance agents Support Support Cost Management COST SIDE REVENUE SIDE

27 -27- The Projects of the Strategic Plan COST COST SIDE SIDE Cost Cost Management Project What is it? A rationalisation of the cost structure Scope of the project Project highlights Results Reducing the cost structure Reengineering of the process of purchasing Two new functions at a Group level: purchasing Office at a Group level - Management of deals and purchases - Benchmarking (prices and services) - Price/volume analysis - Zero based costing method Cost Management office - Control of expense levels - Support to short and medium term planning - Process Reengineering First results of the project at 12/31/2005: savings: 12,2 million of euro (on total target of 13,3)

28 -28- The Projects of the Strategic Plan COST COST SIDE SIDE Cost Cost Management Project Some detail ,2 million of savings at 12/31/ ,0 10,0 m Already implemented Work in progress Still To do 13,1 M 0,8 0,1 5, ,2 0 INFO SECURITY TLC1 IT ENERGY PROVIDER MAIL MARKETING TLC2 E-PROCUREMENT (Stationary) HR POS IT (Maintenance) Global service Communicatio ns expenses Fleet M. TOTAL IMPACT ON OPERATING COSTS (2005)

29 -29- The Projects of the Strategic Plan COST COST SIDE SIDE Back Back offices centralisation What is it? Reengineering of the branches processes in order to re-focus branches on their core sale activities Scope of the project Conversion of more than 100 employees from back office activities to sales Project highlights transfer of 35-40% of the back-office activities from the branches to two new central structures process reengineering more synergies will be reached when new front office procedures are completed

30 -30- The Projects of the Strategic Plan REVENUE REVENUE SIDE SIDE What is it? Scope of the project Project highlights Results Commercial strengthening program A structural reengineering of the branches selling process (branches outside Liguria) Improvement of the branch cost/income ratio outside Liguria: target cost/income <50% creation of the organisational conditions (structure, skills and systems) to permanently support the network in further commercial development of the Group ( selling more and selling better ) more than 250 branches interested 7 phases of the project (first phase started in November 2004, the last one in October 2005) a customer analysis system identification of commercial initiatives / alliances on the target customers dedicated sale channel (developers and call center) dedicated monitoring system Results of the project at 31 Dec 05: revenues: +13 M branches Cost income: - 5 pp (from 50% to 45%) volumes: million

31 -31- The Projects of the Strategic Plan REVENUE EVENUE SIDE SIDE Commercial strengthening program Some detail.. Areas Number of branches Cost Income..first results Liguria Outside Liguria Estimates Estimates % 30% 50% 43% -2pp -7pp Thanks to strategic projects, performances of Branches Outside Liguria are increasing but there is still a great potential to exploit

32 -32- The Projects of the Strategic Plan REVENUE REVENUE SIDE SIDE Collaboration branches - insurance agents What is it? A definition of a set of rules and methods in the relationship between branches and insurance agents Scope of the project Exploitation of the respective customer relationships: increasing of the cross-selling ratio between banks customers and insurances customers Project highlights monitoring and coordination system at a central level a system based on customers lists and referrals exploitation of natural skills: banks employees sell banking products to insurance customers and insurance agents sell insurance products to bank customers

33 -33- The Projects of the Strategic Plan REVENUE EVENUE SIDE SIDE Collaboration branches - insurance agents Some detail... Customers of the Group Shared customers..an high potential to exploit, mainly outside Liguria 1, Extra Liguria Liguria 1,750 1,500 1,250 1, , Extra Liguria Liguria n. of customers [ 000] n. of customers [ 000] Total customers Banks customers Insurance customers Shared customers

34 -34- The Projects of the Strategic Plan REVENUE REVENUE SIDE SIDE JV JV - Consumer Credit What is it? A newco in the sector of the consumer credit between Carige (51%) and its French shareholder CNCE (through GCE Financial Services, 49%). Scope of the project a growth in the penetration of the consumer credit products both on the Carige client base and on the open market exploitation skills and technologies of CNCE Project highlights starting of the commercial activities: end of 2006 the newco will be located in Genoa products: personal loans and revolving cards

35 -35- Agenda Banca Carige overview 1H06 results Carige share performance The Strategic Plan Focus on main strategic projects Annexes

36 -36- Annexes The participation in Bank of Italy % participation N. of Shares Value of the participation Value of Value of each share Value of the Banking Groups owning in Bank of Italy entered in the each share at book value (*) participation Bank of Italy shares balance sheet at book value (millions of euro) (euro) (euro) (millions of euro) (a) (b) Banca Intesa , ,384 45,472 3,657 San Paolo Imi , ,579 45,472 2,350 Capitalia , ,846 45,472 1,521 Unicredito , ,424 45,472 1,469 Bnl 2.8 8, ,781 45, Mps 2.5 7, , Carifirenze 1.9 5, ,899 45, Total first seven groups ,426 1,069 4,872 9,978 (without Carige) Banca Carige , , C.R. Savona ,450 45,472 6 C.R. Carrara ,497 45,472 5 Banca del Monte di Lucca ,988 45,472 0 Total shares owned by Carige , Total shares 300,000 (*) Shareholders' equity (Book value) of Bank of Italy at 31 dec ,641,585,767 Bank of Italy's total shares 300,000 Value of each share at book value at 31 december ,472

37 -37- A strategic location The new Trans-European Corridors: an opportunity for Carige Banca Carige headquarters (Genoa, Liguria) From a geografic point of view Genoa and Liguria Region are in a strategic position The market share of Carige in Liguria is about 30%

38 -38- Contacts Giacomo Burro Director Maurizio Marchiori Planning & Control Emilio Chiesi UK Representative Roberta Famà Investor Relations Tel:

39 -39- Disclaimer This document has been prepared by Banca Carige Spa solely for information purposes and for use in presentation of the Group s strategies and financials. The information contained herein has not been independently verified. No representation or warranty, express or implied., is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Neither the company, its advisors or representatives shall have any liability whatsoever for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. The forward-looking information contained herein has been prepared on the basis of a number of assumptions which may prove to be incorrect and, accordingly, actual results may vary. This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. The distribution of this presentation in certain jurisdictions may be restricted by law. Recipients of this presentation should inform themselves about and observe such restrictions. The information herein may not be reproduced or published in whole or in part, for any purpose, or distributed to any other party. By accepting this document you agree to be bound by the foregoing limitations.