An introduction to the UBI Banca Group. August 2015

Transcription

1 An introduction to the UBI Banca Group August 2015

2 Disclaimer This document has been prepared by Unione di Banche Italiane Scpa ( UBI ) for informational purposes only. 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 may contain 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 either participated in a stock option plan and were therefore assigned stock of the company or possess stock of the bank otherwise acquired. The disclosure relating to shareholdings of top management is available in the half year and the annual reports. Methodology All data are as at 30 th June 2015 unless otherwise stated. Page 1

3 Agenda The UBI Banca Group Background UBI Banca and its Peers UBI Banca s profile in a snapshot The Group Structure Presence in Italy The UBI Banca International Network Contacts Annexes Page 2

4 Background Unione di Banche Italiane Scpa ( UBI Banca ) was formed following the merger of the BPU Banca and Banca Lombarda e Piemontese Groups (1 st April 2007) The history of UBI Banca is marked by a succession of mergers which have led banks with strong roots in local communities to become the significant reality that exists today and employs approximately 17,800 people. Birth of the Banca Mutua Popolare della Città e Provincia di Bergamo, subsequently renamed Banca Popolare di Bergamo (BPB) Birth of the Credito Agrario Bresciano (CAB) Birth of the Società per la Stagionatura e l Assaggio delle Sete ed Affini subsequently renamed Banca Popolare Commercio e Industria (BPCI) Birth of the Banca San Paolo di Brescia (BSPB) Merger of BPB and Credito Varesino (BPB-CV) BSPB acquires Banca di Valle Camonica (BVC) Acquisition of Banca Popolare di Ancona (BPA) by BPB-CV. Birth of the BPB-CV Group Merger of CAB and BSPB with the creation of Banca Lombarda as parent company and contribution of branch network of CAB and BSPB to Banco di Brescia 0 Acquisition of Banca Carime by BPCI 2001 Birth of the BPU Banca Group from the integration of BPB-CV and BPCI Acquisition of Banca Regionale Europea * by Banca Lombarda. The Group takes the name of Banca Lombarda e Piemontese Group 1 st April 2007 Birth of UBI Banca following the merger of the BPU Banca Group and the Banca Lombarda e Piemontese Group Page 3 * Banca Regionale Europea was created in 1994 following the merger between Cassa di Risparmio di Cuneo and Banca del Monte di Lombardia

5 Background UBI Banca is a cooperative bank ( società cooperativa ). Its capital is represented by ordinary shares. Shareholders are divided between unregistered shareholders (who have a right to share in dividends, options, etc. but have no voting rights) and registered shareholders (who have both the right (i) to share in dividends, options, etc., and (ii) to vote at general meetings). To become a registered shareholder, one must own and hold at least 250 shares and apply to the management board. Each registered shareholder has only one vote. No one may hold shares amounting to more than 1% of the share capital (with the exception of collective investment companies). As at June 2015, voting shareholders number nearly 81,750*. A recent Law (March 2015) has established that cooperative banks with total assets above 8 bln must transform into Joint Stock Companies. Bank of Italy has recently issued instructions (11 June) and the Popolari involved have 18 months to transform into Joint Stock Companies. UBI Banca, which totals 120 bln of total assets, is one of the Banks involved in this process. UBI Banca is listed on the Milan Stock Exchange and included in the FTSE/MIB index. UBI Banca s governance model is based on a dualistic system. Under this dualistic governance system, the registered shareholders appoints a Supervisory Board (strategy and supervision); the Supervisory Board, in turn, appoints a Management Board (day-by-day management of the bank) Market Capitalisation* as at 27 th August 2015 (EUR bln) Source: Il Sole 24ore Italian Financial Newspaper Dated 28 th August # * Total shareholders (voting and non voting) number around 155,000 Page 4

6 UBI Banca and its Peers No. of branches as at 30 th June 2015 Total assets as at 30 th June2015 ( bln) 7,121 5, ,223 1,813 # 5 1,530 1, # Customer loans as at 30 th June 2015 ( bln) 581 Total direct funding as at 30 th June 2015 ( bln) # # Page 5 Source: Press releases.

7 The Group Structure Northern Italy UBI BANCA provides management, co-ordination, control and supply of centralized services to the network banks (single IT System, centralised risk management, centralised finance and treasury, commercial coordination, credit coordination, logistics, purchasing, on line banking, etc...) NETWORK BANKS 350 branches 288 branches 196 branches 208+3* branches 66 branches % % 83.76% (1) 74.77% (2) 84.13% (3) MAIN PRODUCT COMPANIES ASSET MANAGEMENT UBI Pramerica (partnership with Prudential US) FACTORING LEASING UBI Factor UBI Leasing LIFE BANCASSURANCE Lombarda Vita (partnership with Cattolica) Aviva Vita Spa Aviva Assicurazioni Vita Spa Central Italy Southern Italy 208 branches 216 branches 99.54% 99.99% ** 21 branches, ~ 772 financial advisors % Information updated as at 31 March 2015, unless otherwise stated * indicates branches outside Italy **Merger between IW Bank and UBI Private Investment completed on 25 May 2015 Page 6 1) moreover, 16.24% of capital held by Fondazione Banca del Monte di Lombardia 2) further 24.90% of Banca Regionale Europea capital held by Fondazione Cassa di Risparmio di Cuneo and the rest by minority shareholders 3) moreover, 5.50% of capital held by Cattolica Assicurazioni and the rest by minority shareholders 7

8 Presence in Italy Introduction to the UBI Banca Group: Predominant Retail Business and Strong Northern Italian Franchise Approx. 3.6 million clients, mainly retail 1,557 branches, of which 759 in Lombardy (which generates over 20% of Italian GDP) Market share in terms of branches above 20% in some of the richest Provinces such as Bergamo, Brescia and Varese Market Shares* % Branches Current accounts & deposits Loans Bergamo Brescia Varese Cuneo National market share of 5.1% in terms of branches 1,557 branches in Italy + 6 branches abroad As at 30 th June st December 2014 in terms of volumes. * Market shares calculated as at 31st March 2015 in terms of branches and as at Page 7

9 Agenda UBI Banca International Network International Network Presence in the world Page 8

10 International Network COMMERCIAL BANKS FOREIGN BRANCHES SUBSIDIARIES FOREIGN BRANCHES REPRESENTATIVE OFFICES MENTON, NICE AND ANTIBES (Banca Regionale Europea) KRAKOW (UBI Factor) MOSCOW SAO PAULO SHANGHAI (Zhong Ou Asset Management Company) MUMBAI SHANGHAI HONG KONG VIENNA (Business Consultant) Head office in Luxembourg FOREIGN BANKS NEW YORK (Upcoming opening 2015) DUBAI SUBSIDIARIES BRANCHES UBI TRUSTEE SA (Luxembourg) LUXEMBOURG MADRID MUNICH Page 9

11 Presence in the world 2015 upcoming opening of Representative Office New York Munich UBI Banca International Branch Krakow UBI Factor Branch Vienna Business Consultant Luxembourg UBI Banca International UBI Trustee SA UBI Management Co SA Antibes, Menton, Nice Banca Regionale Europea Branches Moscow Representative Office Shanghai Representative Office Shanghai Zhong Ou Asset Management Company Co. Ltd* Madrid UBI Banca International Branch Hong Kong Representative Office São Paulo Representative Office Dubai Representative Office Mumbai Representative Office Page 10 * Joint-venture in which UBI Banca holds 35% of the total share.

12 Agenda Contacts UBI Banca Correspondent Banking Representative Offices Contacts Page 11

13 UBI Banca Sergio Passoni Head of Global Transaction and Operations Isabella Moavero - Head of Correspondent Banking and Representative Offices Correspondent Banking - correspondent.banking@ubibanca.it Alistair Newell Relationship Manager alistair.robert.newell@ubibanca.it Indian Subcontinent, China & Far East, Oceania Ernst Rolf Hartmann Relationship Manager ernst.rolf.hartmann@ubibanca.it North America, Central America, South America, Caribbean, Israel Lorenzo Tassini Relationship Manager lorenzo.tassini@ubibanca.it Turkey, Middle East, Africa Marco Camozzi Relationship Manager marco.camozzi@ubibanca.it Global Players Responsible for relationships with multiregional banking groups & Special Projects Riccardo Rossi van Lamsweerde Relationship Manager riccardo.rossi.van.lamsweerde@ubibanca.it Europe & CIS Countries Page 12

14 Representative Offices Contacts MUMBAI Ms Rajeshree Balsari HONG KONG Mr Andrea Croci Ms Lu Bo SHANGHAI DUBAI (since Aug 2015) Mr Luigi Landoni 92 Mittal Chambers, 9 th Floor, Nariman Point, Mumbai - India Tel Fax hongkong@ubihk.com Suite 2911, Tower Two, Times Square 1, Matheson St. - Causeway Bay Hong Kong - S.A.R. Tel Fax office@ubibanca.sh.cn The Center Suite , Changle Road Shanghai China Tel Fax Office 113, Level 1, Tower 1 Al Fattam Currency House, Dubai Intl Financial Centre Dubai, UAE P.O. BOX Tel Fax MOSCOW SAO PAULO VIENNA (Business Consult.) Mr Ferdinando Pelazzo Mr Isidoro Guerrerio Ms Annick Stockert moscow@ubibanca.com 10, Nikolskaya str., 4 th floor, Business Centre Nikolskaya Plaza Moscow - Russia saopaulo@ubibanca.com Al. Ministro Rocha Azevedo, 456 Ed. Jaù - 4 And.Cj.402 CEP São Paulo - Brazil annick.stockert@esterni.ubibanca.it Seilerstätte 16/ Vienna Austria Tel Fax Tel Fax Tel Fax Page 13

15 Agenda Annex Foreign Banks Product Companies Group Results Group BIC codes Page 14

16 Product Companies UBI Leasing offers its clients financing for asset acquisition such as: instrumental leasing, real estate leasing, car leasing, aero naval leasing as well as specific insurance and accessory services. 6.8 bln EUR in net Loans to Customers UBI Factor offers highly specialized factoring services to companies and public administrations. The company is based in Milan with a capillary structure across the national territory and is present also in Poland with its Krakow subsidiary. Since 1984 UBI Factor is part of the Factors Chain International network which allows it to retain a presence in more than 75 countries and with more than 270 foreign partners. 4.3 bln EUR Turnover; 2.1 bln EUR net Loans to Customers Asset Management Joint Venture with Prudential US UBI Pramerica develops, manages, markets and distributes a wide range of financial products and services dedicated to private customers and institutions. It has been awarded various international prizes bln EUR in Assets Under Management Page 15 Data as at unless otherwise stated

17 Other foreign Banks Recent merger between IW Bank (market leader in online trading in Italy with a strategy based on three fundamental objectives: continuous product/service innovation, constant development of technological platforms, professional support for the customer) and UBI Private Investment, the network of financial agents of the UBI Group Qualified and specific services offered to Corporate and Private customers Page 16

18 UBI Banca s profile in a snapshot: predominant retail business, solid capital base and low risk profile Strong competitive positioning 1 st Italian cooperative banking Group by market capitalization EUR 85.3 bn customer lending and EUR 94.3 bn direct funding (loan/deposit ratio: 90.5%) As at 30 June 2015, 81% of loans to customers were granted in Northern Italy, 10.7% in Central Italy and 8.3% in Southern Italy, while 73.2% of customer deposits came from Northern Italy, 12.1% from Central Italy and 14.7% from Southern Italy Solid Capital and Balance Sheet Position Capital ratios as at 30 June 2015: CET 1 ratio phased in: 12.94% vs. 9.5% SREP requirement CET 1 ratio fully loaded under Basel 3 rules: 12.33% Leverage ratio under Basel 3 (tier one capital / (on- and off-balance-sheet assets)) is at 6.14% phased in, 5.88% fully loaded Sound Liquidity position: the Group already complies with the Net stable Funding Ratio and Liquidity Coverage Ratio as per Basel 3 requirements (also net of TLTRO) Good Asset Quality Good asset quality compared to the Italian banking system Annualised cost of credit of 91 bps of total loans vs. 98 bps of Italian Peers** Low Risk Profile Focus on traditional banking activities: Customer loans/total assets at 71.38% Funding mainly from own customer base (over 76%); limited recourse to institutional markets Financial assets/total assets: 18.3%. Italian Govies represent approx. 17% of total assets Page 17 Figures as at 30 th June 2015 unless otherwise stated * Data referred to banking perimeter only. ** UCG, ISP, BP, MPS, BPER and BPM

19 The UBI Banca Group: consolidated results as at 30th June 2015 MAIN INCOME STATEMENT ITEMS Figures in mln 1H14 1H15 % change 1H15 vs 1H14 Net interest income (6.8%) Net commission income % Net result from finance (18.7%) Profits of equity-accounted investees (5.3%) Other income items % Operating income 1,736 1,709 (1.6%) Staff costs (648) (655) 1.1% Other administrative expenses (311) (313) 0.6% Net impairment losses on property, equipment and investment property and intangible assets (85) (78) (8.7%) Operating expenses (1,044) (1,046) 0.1% Net operating income (4.1%) Net impairment losses on loans (429) (389) (9.3%) Net impairment losses on other financial assets and liabilities (2) (3) 67.3% Net provisions for risks and charges (3) (29) n.s. Profits (losses) from disposal of equity investments (0) 0 n.s. Pre-tax profit from continuing operations (6.0%) Taxes on income for the period from continuing operations (135) (99) (26.8%) Profits for the period attributable to non-controlling interests (16) (17) 8.7% Charges for exit incentives (net of tax and non-controlling interests) (1) n.s. Profit for the period % Profit for the period NET OF NON-RECURRING ITEMS % Profit net of non recurring items to 136 million, the highest half year results since 2H2008 Stated Profit for the period to million (+17.2% vs in 1H2014) Profits from equity-accounted investees, include 8.5 mln/ from Zhong Ou in 1H15 (vs. 0.7 mln/ in 1H14) thanks to strong growth in AuM reaching close to 18 billion at end June15 OUTLOOK The actions undertaken in the first half and the expected progressive improvement in the macroeconomic environment should allow a further increase in new grants of loans in the second half of the year in order to counter the strong competitive pressure on pricing. Net fee and commission income should benefit year-on-year from positive trends expected for assets under management and insurance and from possible growth in fees and commissions associated with the trend for lending. The continuation of the favourable evolution of the general macroeconomic environment and, hopefully, the absence of further tensions in the more critical countries of the euro area could allow a result to be achieved for trading and hedging activity in line with that of the first half. Actions planned for 2015 allow to confirm our objective of containing operating expenses in line with those for 2014, notwithstanding the additional costs in relation to the contribution to the European Resolution Fund and the Deposit Guarantee Scheme, estimated at over 30 million for the entire year and which will be recognised in the item other administrative expenses once final quantification, expected before year-end, is received. The improvements in the macroeconomic environment and the exit from recession, recently confirmed by the principal economic research institutes, should allow loan losses to be contained at a level lower than in 2014 Page 18

20 Group BIC codes BEPOIT21 BCABIT21 BREUITM1 BLOPIT22 POCIITM1 BPAMIT31 CARMIT31 BVCAIT21 BLPIIT21 CABILULL UBIBESMM BEPODEMM Madrid Branch Munich Branch BIC ACTIVE BIC NON ACTIVE Page 19