Corporate and Private Banking. Section 2

Transcription

1 Corporate and Private Banking Section 2

2 Mediobanca CIB: our strengths Recognized brand Strong culture and corporate identity Business model already compliant with new regulations Customer-driven, integrated approach MB CIB client-aligned corporate business Strong balance sheet Low leverage Diversified revenues Predominantly NII and fee Efficient structure Good asset quality 44

3 Leadership positioning in Italian market... M&A positioning ECM positioning Ranking by total deals value Bank ( bn) Mkt share Ranking by number of deals Bank Deals Mkt share 1 MB % MB % 2 BOFA % LAZ % 3 JPM % KPMG % 4 CITI % ROTH % 5 GS % ISP 345 9% 6 LAZ % UCG 262 7% 7 CS % MS 216 6% 8 MS % JPM 213 6% 9 ROTH % BOFA 176 5% 10 DB % BNPP 167 5% Ranking by total deals value Ranking by number of deals Bank ( bn) Mkt share Bank Deals Mkt share 1 MB 32 22% MB % 2 ISP 15 10% ISP % 3 MS 12 8% UCG 88 20% 4 UCG 12 8% BOFA 48 11% 5 JPM 11 7% BNPP 45 10% 6 GS 11 7% JPM 42 10% 7 BOFA 10 7% DB 39 9% 8 CS 9 6% GS 37 8% 9 DB 7 5% CS 37 8% 10 UBS 5 3% MS 29 7% Mediobanca leader in M&A and ECM; sizeable market share also in lending and DCM Strong expertise and track record in Italian corporates world Source: Thomson Financial, Dealogic, deal completed, any Italian involvement 45

4 leveraged since 2004 on a European scale Paris set up Focus: corporate advisory and lending Frankfurt and Madrid set up Focus: corporate advisory and lending Business Plan Empower MB geographical footprint New York set up Focus: brokerage London set up Focus: capital markets solutions, equity research & sales Istanbul set up Focus: corporate advisory Enhanced coverage of existing branches London as a hub Mexico and China Leading domestic positioning in CIB leveraged outside Italy since 2004, following customers international needs Local client coverage and advisory execution; risk assessment and book keeping in Milan 46

5 MB international CIB: a pragmatic & differentiated approach Non-domestic countries largely covered by local IB and by bulge bracket firms Core Europe: mature but very large corporate market in which MB has a sub-optimal market share Even small bites of the big cake have material impact on the relatively small-size MB balance sheet MB mission: to be recognized as an high-quality specialized operator (no league tables) MB: customer-driven/tailor-made offering (solutions business vs flow business) Good profiles-selective hirings possible given: talents moving from bulge brackets to boutiques strong MB brand, corporate culture and balance sheet MB flexibility and entrepreneurial approach 47

6 CIB Business plan 14-16: boost size and reshuffling revenues mix 1 Exploit an untapped corporate base 2 Empower geographic footprint 3 Complete product offering 4 Leverage on IB industry secular trends 5 Keep focus on balance sheet quality and strength 48

7 CIB targets: balanced business model to deliver growth and return B3 compliant business model to deliver growth and returns on low cost/risk basis on sustainable (domestic)/increasing (international) market shares Enhancing the right mix of cyclical, L-intensive, flow businesses / stable, K-intensive, stock businesses FY16 revenues: 1bn, CAGR +10% 85% from client business 45% non-domestic FY16 ROAC: 12/13% assets broker-holder approach domestic/non-domestic businesses 49

8 Strategy 14-16: empower MB geographical footprint Core Europe Mature but large market in which Mediobanca still has a sub-optimal market share Extend mission of London branch from capital markets platform to hub of competence for industry expertise and markets Reinforce continental European branches hiring bankers and through a stronger integration between local coverage and industry/product expertise (in London and Milan) Entering high growth markets, meeting customers needs, covering 3 fast-developing economies: Turkey, Mexico, China Enlarge coverage of existing branches: New geographies MENA regions from Turkey Russia from London Eastern EU from Frankfurt Exploit product/customer synergies Focus on capital-light businesses Chile, Colombia and Peru from Spain Benelux from France Non-domestic contribution from 30% (FY13) to 45% of total CIB revenues 50

9 FY14 actions: senior hiring, FIG EMEA team set up UK, Ireland and Nordics Central Eastern Europe France, Belux & MENA Iberia Italy, Greece, Turkey Stefano Marsaglia appointed Co-head of CIB. Focus on a synergic approach between industries, products and countries FIG EMEA team set up: 35 professionals with leading industry experience and strong track record 51

10 Improved positioning in K light equity business in Southern EU Top 10 ECM players on FIG customers in southern Europe* (Jan-June 14, Dealogic) Rank Bookrunnner Deal Value ( m) Number of deals % share 1 UBS 2, Mediobanca 1, Citi 1, Bank of America Merrill Lynch 1, Deutsche Bank 1, Morgan Stanley 1, JPMorgan Goldman Sachs Credit Suisse UniCredit MB: ranked 2^ in ECM in southern Europe (Jan-June14), co-ordinating 7 ECM deals in Italy, Spain and Greece MB coverage in FIG, crucial sector in EU representing ~50% of total European IB fee-pool, significantly enhanced * Italy, Spain, Portugal, Greece; apportioned amount 52

11 Non-domestic WB operations up to 48% of total WB revenues Non-domestic revenues ( m, % WB revenues) 48% 36% 29% 32% 23% 6% 17% June 08 June 09 June 10 June 11 June 12 June 13 June 14 Non domestic revenues % WB revenues Non domestic revenues up to 48% of total WB revenues, driven by ECM, DCM and capital market solutions 53

12 Private banking operations enhanced CMB KPIs (June14) Compagnie Monégasque de Banque CMB: stake since 1989, fully owned since 2004 Leading financial institution in Principality of Monaco, with around 10% market share 7.3bn AUM. AUM breakdown: mainly private investors 44% managed assets, 56% administered Distribution network: 41 bankersf m June14 June13 June12 Revenues Costs (46) (45) (46) GOPrisk adj Net result (*) AUM bn Banca Esperia KPIs (June14) Banca Esperia (100%) Founded in 2001 (50% partnership with Mediolanum) Highly synergic with CIB operations Top ranked in Italy as specialist player for UHNWI 15.5bn AUM. AUM breakdown: 72% private investors, 28% institutional investors 46% managed, 54% administered Distribution network: 80 bankers, 12 branches in Italy m June14 June13 June12 Revenues Costs (67) (73) (64) GOP risk adj Net result AUM bn * Excluding one-off items 54

13 Corporate and Private Banking ( CIB ) Key figures m 12M June M June13 12M June12 Total income Net interest income Fee income Net treasury income Total costs (333) (333) (340) Loan loss provisions (231) (122) (110) ----ow LLPs non-recurrent (200) Other (7) 14 (100) PBT Net result Cost/income ratio (%) 56% 43% 37% Cost of risk (bps) Cost of risk adj.(bps) 20 NPLs coverage ratio 49% 39% 33% Loans ( bn) AUM ( bn) RWA ( bn)* * June14 figures: Basel 3 compliant; June 12 and 13 figures: Basel 2.5 compliant