COMPANY PROFILE - Banca Popolare di Vicenza

COMPANY PROFILE
NOVEMBER 2014
Tradizione e futuro
BANCA POPOLARE DI VICENZA
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Certain statements contained in this presentation may be statements of future expectations and
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Although Banca Popolare di Vicenza has obtained the information provided from sources that
should be considered reliable, it cannot guarantee its accuracy or completeness. The information
provided is purely of an indicative nature and is subject to change without notice at any time.
By participating in this presentation or by accepting a copy of the slides presented, you agree to
have notice of and be bound by the foregoing.
BANCA POPOLARE DI VICENZA
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4
BANCA POPOLARE DI VICENZA
Company Profile
MAIN TOPICS
BPVi Group
BPVi’s business �� 11
BPVi Group’s business areas as of 30 June 2014�� 12
BPVi Group’s market positioning as of 30 June 2014�� 13
Network distribution in Italy as of 30 June 2014�� 14
BPVi’s market share as of 30 June 2014 �� 16
BPVi’s shareholders�� 17
Growth in customers’ number�� 18
BPVi’s ratings�� 19
BANCA POPOLARE DI VICENZA
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Company Profile
Financial Results
Financial highlights as of 30 June 2014 �� 22
Financial results as of 30 June 2014 �� 23
Statement of financial position as of 30 June 2014 - highlights �� 26
Customers' loans breakdown as of 30 June 2014 �� 28
Income statement as of 30 June 2014 - highlights �� 30
Credit quality as of 30 June 2014 - highlights �� 32
Capital ratios: pro-forma as of 30 June 2014 �� 34
6
BANCA POPOLARE DI VICENZA
Company Profile
Funding Breakdown
Direct funding breakdown as of 30 June 2014 �� 39
Group funding plan �� 40
Liquidity risk management perspective �� 43
ECB collateral breakdown�� 44
ECB Comprehensive Assessment
BPVi Results�� 48
Stress Test Results �� 50
Contacts
Contacts�� 54
BANCA POPOLARE DI VICENZA
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Company Profile
BPVi Group
BANCA POPOLARE DI VICENZA
9
10
BANCA POPOLARE DI VICENZA
BPVi Group
BPVi’S BUSINESS
HIGHLIGHTS
Largest not
1 listed Italian
bank
2
Commercial
bank
Traditional
3 banking
business
4
Very active in
securitization
BPVi was established in 1866 and is the
largest, not listed, Italian bank. BPVi is a
cooperative bank: each shareholder (with the
exception of investment funds) can not hold
more than 1% of the shareholders’ equity
and is entitled to one vote
BPVi is a commercial bank with national
relevance and its business is mainly
concentrated in the North East Regions of
Italy (above all in Veneto and Friuli VG).
BPVi has a strong presence also in central
Regions (as Toscana and Lazio) and in
Sicilia as well
BPVi has a traditional banking business
model based on 3 pillars from a loans
originating perspective: residential
mortgages, SME short-term financing and
SME long term financing. From a liquidity
perspective, 88% of its funding is based on
retail segment
BPVi is a very active player in structured
finance space with a securitization
programme under the “Berica brand”. Since
early 2000 BPVi acted as originator in 13
RMBS transactions (the last public deal,
completed in June 2014, was Berica ABS 3)
and 2 SME ABS transactions
BANCA POPOLARE DI VICENZA
11
BPVi Group
BPVi GROUP’S BUSINESS AREAS
AS OF 30 JUNE 2014
Companies which are part
of the Group
Companies which are not part of the Group,
but contribute to the business
BANKS
Banca Nuova
S.p.A.
100%
BANK & INSURANCE
Farbanca S.p.A.
66.85%
PRODUCT FACTORIES
Prestinuova
S.p.A
Compass S.p.A.
100%
Berica Vita
S.p.A.
Cattolica Life Ltd
ABC Assicura
S.p.A.
Cattolica
Assicurazioni
40%
40%
40%
14.92%
ASSET MANAGEMENT
Palladio
Leasing S.p.A
Pitagora S.p.A.
Arca SGR S.p.A.
19.99%
Banca IFIS
S.p.A
SERVICES
BPVi
Multicredito
Ag. in Attività
Finanz. S.p.A.
Immobiliare
Stampa S.c.p.A.
Servizi
Bancari
S.c.p.A.
Monforte 19 S.r.l
100%
100%
100%
Wealth
Management
Open Platform
PRIVATE EQUITY
NEM SGR
S.p.A.
PROPRIETARY TRADING
BPV Finance plc
99.99%
99%
Sec Servizi
S.c.p.A
49.81%
Source: BPVi
12
BANCA POPOLARE DI VICENZA
BPVi Group
BPVi GROUP’S MARKET POSITIONING
AS OF 30 JUNE 2014(*)
FIRST 10 BANKING GROUPS IN TERMS OF BRANCHES
BRANCHES (#)
1
Unicredit
7,765
2
Intesa San Paolo
5,984
3
Monte dei Paschi di Siena
2,362
4
Banco Popolare
1,958
5
Ubi Banca
1,679
6
Banca Pop. Emilia Romagna
1,292
7
Carige
672
8
Banca Popolare di Milano
668
9
Gruppo BPVi
10
Veneto Banca (**)
657
555
FIRST 10 BANKING GROUPS IN TERMS OF TOTAL ASSETS
TOTAL ASSETS (€/mln)
1
Unicredit
838,689
2
Intesa San Paolo
628,305
3
Monte dei Paschi di Siena
4
7
Banco Popolare
Ubi Banca
Banca Pop. Emilia Romagna
Banca Popolare di Milano
196,528
126,044
123,226
60,931
48,781
8
Gruppo BPVi
9
Carige
Veneto Banca (**)
5
6
10
(*) Excluding Banks belonging to foreign groups
(**) Pro-forma figures (excluding BIM and IPIBI)
46,148
41,329
34,342
Source: BPVi
BANCA POPOLARE DI VICENZA
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BPVi Group
NETWORK DISTRIBUTION IN ITALY AS
OF 30 JUNE 2014
GEOGRAPHICAL DISTRIBUTION
BPVi
2
92
6
67
Banca Nuova
273
Farbanca
19
5
Prestinuova
94
2
31
1
1
1
19
88
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BANCA POPOLARE DI VICENZA
BPVi GROUP's NETWORK
June 2014
563
93
1
Branches BPVi Group
657
Financial Points
Private Banking Offices
Financial Points Prestinuova
15
29
1
Points of sales
702
Financial Promoters
120
Financial Agents
200
Source: BPVi
BANCA POPOLARE DI VICENZA
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BPVi Group
BPVi’S MARKET SHARE
AS OF 30 JUNE 2014
MARKET SHARE BY BRANCHES
1.66%
1.66%
1.66%
1.94%
1.94%
1.94%
2.01%
2.01%
2.01%
2.10%
2.10%
2.10%
Dec. 2010
Dec. 2012
Dec. 2013
June 2014
Dec.
Dec. 2010
2010
Dec.
Dec. 2012
2012
Dec.
Dec. 2013
2013
June
June 2014
2014
MARKET SHARE BY
PERFORMING LOANS
1.84%
1.84%
1.84%
1.95%
1.95%
1.95%
2.00%
2.00%
2.00%
1.99%
1.99%
1.99%
Dec. 2010
Dec. 2012
Dec. 2013
June 2014
Dec.
Dec. 2010
2010
Dec.
Dec. 2012
2012
Dec.
Dec. 2013
2013
June
June 2014
2014
MARKET SHARE BY DIRECT
FUNDING
1.18%
1.18%
1.18%
1.32%
1.32%
1.32%
1.39%
1.39%
1.39%
1.34%
1.34%
1.34%
Dec. 2010
Dec. 2012
Dec. 2013
June 2014
Dec.
Dec. 2010
2010
Dec.
Dec. 2012
2012
Dec.
Dec. 2013
2013
June
June 2014
2014
• Market share by branches
increased by 0.44 p.p.
compared to December
2010 and by 0.09 p.p.
compared to year end 2013.
In the first half of 2014, BPVi
started to grow again in
terms of number of
branches, with the
acquisition of 1 branch from
Banca Popolare di Spoleto
and 16 branches from Cassa
di Risparmio di Ferrara,
expanding its territorial
presence in strategic areas
with high potential
• Market share by performing
loans increased by 0.15 p.p.
compared to December
2010 and it is almost in line
with year end 2013
• Market share by direct
funding increased by 0.16
p.p. compared to December
2010 and, compared to year
end 2013, shows a 0.05 p.p.
reduction
Source: BPVi
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BANCA POPOLARE DI VICENZA
BPVi Group
BPVi’S SHAREHOLDERS
Source: BPVi
SHAREHOLDERS’ GEOGRAPHICAL DISTRIBUTION
56,295
As of 31 Dec. 2013
VICENZA
31,334
(35%)
10,482
VENETO
62%
7,606
6,378
FRIULI VG LOMBARDIA TOSCANA
12%
8%
7%
4,147
1,887
SICILIA
5%
EMILIA R.
2%
2,562
1,359
LAZIO OTHER REGIONS
3%
1%
SHAREHOLDERS’ BREAKDOWN
As of 31 Dec. 2013
INDIVIDUALS
91%
Total
90,716
OTHER
9%
+15,284
(+16.85%)
+86.77%
56,754
58,259
63,489
67,090
73,274
90,716 94,795 106,000
Dec. 2008 Dec. 2009 Dec. 2010 Dec. 2011 Dec. 2012 Dec. 2013 June 2014 Aug. 2014
After 608 €/mln
Capital Increase
BANCA POPOLARE DI VICENZA
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BPVi Group
GROWTH IN CUSTOMERS’ NUMBER
NUMBER OF CUSTOMERS (K)
+65 k
1,036
1,066
1,102
1,154
Dec. 2008
Dec. 2009
Dec. 2010
Dec. 2011
1,224
Dec. 2012
+38 k
1,289
Dec. 2013
1,327
June 2014
• Customers are more than 1.3 mln as of 30 June 2014
• In the first half of 2014, the number of Customers increased by 38,000
(+2.95%)
• Increase of 291,000 Customers since 2008 (+28.09%)
• The pace of growth accelerated since 2011: +173,000 Customers
(+14.99%)
UNRESTRICTED DEPOSITS
+39,331
711,120
Dec. 2012
18
754,997
Dec. 2013
794,328
June 2014
BANCA POPOLARE DI VICENZA
The number of unrestricted deposits
increased by 39,331 compared to
year end 2013 and were about
794,328 as of June 2014
BPVi Group
BPVi RATINGS
LATEST RATING ACTION
The following table shows the current ratings assigned to Banca
Popolare di Vicenza by Fitch and DBRS:
RATING AGENCY
LONG TERM
SHORT TERM
Fitch Ratings
BB
B
BBB (Low)
R-2 (Low)
DBRS
OUTLOOK
LAST ASSESSMENT
Stable
16 July 2014
Negative
18 Dec. 2013
• On 16 July 2014, Fitch Ratings as part of its annual revision of the ratings
of Italian medium-sized banks, updated its rating of the Parent Bank,
changing the rating on medium/long term debt from BB+ to BB and the
Viability Rating from bb+ to bb, confirming the short-term rating at B.
The outlook was improved from “negative” to “stable”. The rating reflects
the deterioration in asset quality and the low coverage levels. Fitch
recognises that the flow of new impaired loans was reduced in 2014,
but deems that the capital strengthening measures carried out would
be necessary to offset the potentially high loan adjustments that may
emerge within the Asset Quality Review currently being performed by
the ECB. The stable outlook, instead, reflects the capitalisation level and
the signs of normalisation of the Italian operating environment. Lastly,
Fitch stressed that BPVi is rooted in one of the wealthiest, most
industrialised areas of the Countries, where the density of exporting
enterprises, which are the engine of the Italian economy, is high
• On 18 December 2013, DBRS Ratings Limited assigned new ratings to
Banca Popolare di Vicenza Scpa (BPVI, the Bank or the Group). The IA of
BBB (low) reflects BPVI’s sizeable and stable market positions for its retail
and SME franchise across many of the principal industrial regions of
Northeastern Italy. The IA also reflects BPVI’s only satisfactory financial
performance which has come under pressure due to the difficult
economic conditions in Italy
BANCA POPOLARE DI VICENZA
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Company Profile
FINANCIAL
RESULTS
BANCA POPOLARE DI VICENZA
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Financial Results
FINANCIALS HIGHLIGHTS
AS OF 30 JUNE 2014
HIGHLIGHTS
Profitability
Net profit from Operating Activities
improved to 234 €/mln (around +9%
compared to 30 June 2013), thanks to the
growth in operating income. Operating
Income stood at 565 €/mln (+4.1%
compared to half year end 2013)
Costs
Net Operating Costs increased to 331 €/mln
(+0.9% compared to June 2013) while the
Cost Income Ratio decreased by 1.4 p.p.
(Cost Income ratio equal to 57.5% from
58.9% as of June 2013)
3
Credit
Quality
Coverage Ratio on Impaired Loans
improved compared to year end 2013
despite the decrease in Cost of Credit
(1.04% compared to 1.24% as of June 2013).
Loans Loss Provisions were 187 €/mln
4
Capital
The 608 €/mln of capital increase was
successfully completed in August 2014:
Pro-forma Core Tier 1 reached 10.67%
Funding and
Liquidity
The strong liquidity position (Liquidity
Coverage Ratio was 121% as of 30 June
2014) allowed a 2 €/bln reimbursement of
LTRO. Overall Loans to Deposits ratio(1) was
100.8%, (98.7% compared to June 2013)
1
2
5
(1) Excluding Repo transaction via CC&G (LSE Group)
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BANCA POPOLARE DI VICENZA
Financial Results
FINANCIAL RESULTS
AS OF 30 JUNE 2014 (1 of 3)
STATEMENT OF FINANCIAL POSITION
ASSETS
LOANS AND ADVANCES TO CUSTOMERS
LOANS AND ADVANCES TO BANKS
FINANCIAL ASSETS HELD FOR TRADING
FINANCIAL ASSETS AVAILABLE FOR SALE
FINANCIAL ASSETS HELD TO MATURITY
EQUITY INVESTMENTS
OTHER ASSETS
Total assets
LIABILITIES AND EQUITY
DUE TO CUSTOMERS
DUE TO BANKS
DEBT SECURITIES IN ISSUE
FINANCIAL LIABILITIES HELD FOR TRADING
FINANCIAL LIABILITIES AT FAIR VALUE
OTHER LIABILITIES ITEMS
EQUITY
- including: net income for the period
pertaining to the Parent Bank
Total liabilities and
stockholders’equity
30/06/2014
30,073.2
2,398.4
4,564.8
5,708.7
48.3
408.2
2,945.9
30,892.7
2,794.0
2,069.1
4,094.3
48.6
385.0
4,952.5
46,147.5 45,236.2
30/06/2014
21,026.9
7,022.7
6,464.1
3,918.1
1,753.0
2,258.6
3,704.1
22.0
Change
31/12/2013
+/
%
819.5
395.6
2,495.7
1,614.4
0.3
23.2
2,006.6
2.7%
14.2%
120.6%
39.4%
0.6%
6.0%
40.5%
911.3
Change
31/12/2013
22,992.7
7,053.1
6,957.7
1,733.2
1,712.2
1,139.6
3,647.3
32.0
46,147.5 45,236.2
2.0%
+/
%
1,965.8
30.4
493.6
2,184.9
40.8
1,119.0
56.8
N.S.
8.5%
0.4%
7.1%
126.1%
2.4%
98.2%
1.6%
N.S.
911.3
2.0%
Source: BPVi
BANCA POPOLARE DI VICENZA
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Financial Results
FINANCIAL RESULTS
AS OF 30 JUNE 2014 (2 of 3)
INCOME STATEMENT
30/06/2014
NET INTEREST INCOME
DIVIDENDS AND PROFIT LOSS FROM
EQUITY INVESTMENTS
NET FINANCIAL INCOME
NET FREE AND COMMISSION INCOME
NET PROFIT FOR THE PROPERTY PORTFOLIOS
OTHER OPERATING CHARGES/INCOME
NET OPERATING INCOME
ADMINISTRATIVE COSTS
DEPRECIATION
NET OPERATING COSTS
NET PROFIT FROM OPERATING ACTIVITIES
NET IMPAIRMENT ADJUSTMENTS
NET PROVISIONS FOR RISK AND CHARGES
GAINS LOSSES ON DISPOSAL/EVALUATION
OF INVESTMENTS
NET INCOME BEFORE TAX
INCOME TAX
PROFIT LOSS FROM DISPOSAL GROUPS,
NET OF TAX
MINORITY INTERESTS
NET INCOME
Change
30/06/2013
+/
%
260.0
18.9
256.4
11.8
3.6
7.1
1.4%
60.7%
278.9
147.0
111.5
28.0
565.3
268.1
135.3
113.1
26.6
543.0
10.7
11.8
1.6
1.4
22.3
4.0%
8.7%
1.4%
5.3%
4.1%
313.8
18.0
331.8
233.5
187.0
7.3
0.0
311.6
17.2
328.8
214.3
193.0
3.8
0.0
2.2
0.8
3.0
19.3
6.0
3.5
0.0
0.7%
4.9%
0.9%
9.0%
3.1%
92.6%
58.1%
39.2
16.7

17.5
17.5

21.7
0.8

123.7%
4.6%

0.5
22.0
0.1
0.1
0.4
22.1
346.0%
N.S.%
Source: BPVi
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BANCA POPOLARE DI VICENZA
Financial Results
FINANCIAL RESULTS
AS OF 30 JUNE 2014 (3 of 3)
OTHER INFORMATION
AVERAGE NUMBER OF EMPLOYEES
NUMBER OF BRANCHES
CAPITAL ADEQUANCY RATIOS
CET 1 RATIO/CORE TIER 1 RATIO
TIER 1 RATIO TIER 1 CAPITAL/RISKWEIGHTED ASSETS
TOTAL CAPITAL RATIO REGULATORY
CAPITAL/RISKWAIGHTED ASSETS
STRUCTURE AND PRODUCTIVITY RATIOS
LOANS TO CUSTOMERS/DIRECT DEPOSITS
TOTAL ASSETS/EQUITY LEVERAGE
DIRECT DEPOSITS PER EMPLOYEE IN MILLIONS OF EURO
INDIRECT DEPOSITS PER EMPLOYEE
IN MILLIONS OF EURO
LOANS TO CUSTOMERS PER EMPLOYEE
IN MILLIONS OF EURO
COST/INCOME
RISK RATIOS
NET NONPERFORMING LOANS/NET LOANS
NONPERFORMING LOANS COVERAGE %
ANNUALIZED CREDIT COST
30/06/2014
31/12/2013
30/06/2013
5,281
657
5,290
640
5,284
640
30/06/2014
31/12/2013
30/06/2013
8.55%
8.55%
10.21%
9.21%
9.21%
11.81%
8.11%
8.11%
11.06%
30/06/2014
31/12/2013
30/06/2013
100.8%
12,5X
5.5
3.7
99.8%
12,4X
5.5
3.6
105.7%
14,4X
5.3
3.4
5.5
5.5
5.6
57.5%
58.5%
58.9%
30/06/2014
31/12/2013
30/06/2013
5.69%
48.69%
5.07%
48.74%
4.60%
48.03%
1.04%
1.44%
1.24%
Source: BPVi
BANCA POPOLARE DI VICENZA
25
Financial Results
STATEMENT OF FINANCIAL POSITION
AS OF 30 JUNE 2014 - HIGHLIGHTS
CUSTOMERS LOANS (€/mln)
Source: BPVi
-2.7%
29,985
Dec. 2011
30,713
Dec. 2012
30,893
Dec. 2013
30,073
June 2014
INDIRECT DEPOSITS (€/mln)
Source: BPVi
+3.4%
16,727
Dec. 2011
26
17,589
Dec. 2012
BANCA POPOLARE DI VICENZA
19,051
Dec. 2013
19,693
June 2014
RETAIL DIRECT FUNDING (€/mln)
Source: BPVi
-2.5%
21,193
Dec. 2011
24,623
Dec. 2012
26,517
25,865
Dec. 2013
June 2014
LOANS TO DEPOSITS RATIO
Source: BPVi
112.30%
100.80%
109.80%
102.80%
99.80%
97.60%
Loans to Deposit
Loans to Deposit
(excl. Repo via
CC&G - LSE Group)
Loans to Deposit
(excl Wholesale funding)
Dec. 2013
June 2014
BANCA POPOLARE DI VICENZA
27
Financial Results
CUSTOMERS LOANS BREAKDOWN
AS OF 30 JUNE 2014
LOANS BY ECONOMIC SECTORS (SAE)
Source: BPVi
ARTISANS/
ARTISANS/
ENTREPENEURS
ENTREPENEURS
INDIVIDUALS
INDIVIDUALS
7%7%
32%32%
FINANCIALS
FINANCIALS
4%
4%
NON
NON
FINANCIAL
OTHER
FINANCIAL
56%
OTHER
1%
56%
1%
LOANS BY GEOGRAPHICAL DISTRIBUTION
Source: BPVi
SICILIA 9%
TOSCANA 13%
LAZIO 7%
SICILIA 9%
TOSCANA 13%
LOMBARDIA 13%
EMILIA R. 4%
LAZIO 7%
OTHER REGIONS
EMILIA
R. 4%
AND NONRESIDENTS
7%
LOMBARDIA 13%
FRIULI V.G. 8%
OTHER REGIONS
AND NONRESIDENTS
VENETO
7% 39%
FRIULI V.G. 8%
VENETO 39%
AGRICOLTURE 2%
28
BUILDINGS,
CONSTRUCTION
BANCA POPOLARE DI VICENZA
AND REAL ESTATE 19%
AGRICOLTURE 2%
ENGINERING/
AUTOMOTIVE 6%
SERVICES FOR BUSINESSES 5%
ENGINERING/ OTHER SERVICES 6%
AUTOMOTIVE 6%
LOMBARDIA 13%
OTHER REGIONS
AND NONRESIDENTS
7%
FRIULI V.G. 8%
VENETO 39%
DISTRIBUTION OF LOANS BY ECONOMIC ACTIVITY (ATECO)
AGRICOLTURE 2%
BUILDINGS,
CONSTRUCTION
AND REAL ESTATE 19%
TRADE 12%
INDIVIDUALS/
OTHERS 36%
ENGINERING/
AUTOMOTIVE 6%
SERVICES FOR BUSINESSES 5%
OTHER SERVICES 6%
FASHION 3%
OTHER INDUSTRIES 11%
Source: BPVi
•
Non-financials represent 56% of the loan book, while Individuals
represent about one third of total loans
•
More than two thirds of the loan book is represented by borrowers
located in Northern Italy, in particular in the North East regions,
which are the areas that recorded the highest economic
performances in Italy
•
The most relevant activities for BPVi Group are Building, Construction
and Real Estate (about 20% of the total loan book) and Trade (12%)
BANCA POPOLARE DI VICENZA
29
Financial Results
INCOME STATEMENT
AS OF 30 JUNE 2014 - HIGHLIGHTS
NET PROFIT FROM OPERATING ACTIVITIES (€/mln)
Source: BPVi
+8.99%
1.24%
233,535
214,275
June 2013
June 2014
June 20
•
Net profit from Operating Activities improved to 234 €/mln (+8.99%
compared to June 2013), thanks to the growth in operating income.
Net operating Income increased by 4.1% (565.3 €/mln)
•
Coverage Ratio on Impaired Loans improved compared to half year
end 2013 despite the decrease in Cost of Credit (1.04% compared to
1.24% as of June 2013). Loans Loss Provisions were 187 €/mln
58.90%
•
30
Net Operating Costs increased to 331 €/mln (+0.9% compared to
June 2013) while the Cost Income Ratio decreased by 1.4 p.p. (Cost
Income ratio equal to 57.5% from 58.9% as of June 2013)
BANCA POPOLARE DI VICENZA
June 20
-0.2 p.p.
COST OF CREDIT
Source: BPVi
3,535
-0.2 p.p.
1.24%
3,535
1.24%
1.04%
1.04%
ne 2014
e 2014
June 2013
June 2013
June 2014
June 2014
COST INCOME RATIO
Source: BPVi
-1.4 p.p.
-1.4 p.p.
58.90%
58.90%
57.50%
57.50%
June 2013
June 2013
June 2014
BANCA POPOLARE DI VICENZA
June 2014
31
Financial Results
CREDIT QUALITY AS OF
30 JUNE 2014 - HIGHLIGHTS
IMPAIRED LOANS – GROSS FIGURES (€/mln)
Source: BPVi
5,937
4,747
736
334
5,378
505
525
June 2013
•
469
1,887
1,594
1,259
2,417
542
2,755
Dec. 2013
3,039
Non Performing Loans
Watch List Loans
Restructured Loans
Past Due Loans
June 2014
Gross Impaired Loans increased, globally, by 559 €/mln due to the
persistent difficulty of the economic environment
The raw material of NPLs represented by Past-due Loans recorded
3.89%
a slight increase (+7.47%) but the Gross Growth Rate of Watch List
3.83%
Loans and NPLs
was consistently
4.26%lower compared to the previous
3.93%
half year figures
3.49%
15.08%
Non Performing Loans
3.53%
15.05%
• Coverage Ratio
increased for each Impaired Loans category
•
13.49%
Watch List Loans
43.15%
43.67%
BANCA POPOLARE DI VICENZA
3240.62%
Restructured Loans
Past Due Loans
5,937
4,747
736
Source: BPVi
334
542
5,378
505
469
Non Performing Loans
IMPAIRED
525 LOANS – GROSS GROWTH RATE
1,887
List Loans
Dec. 2013 (1) WatchJune
2014 (2)
1,594
1,259
Past
Due Loans
2,417
3,039
2,755
Restructured Loans
Past Due Loans
Restructured Loans
57.14%
-10.63%
Watch List Loans
June 2013
31.46%
7.47%
Dec. 2013
June 2014
26.58%
18.40%
13.97%
10.31%
Non Performing Loans
(1) Figures referred to Dec. 2013 on June 2013
(2) Figures referred to June 2014 on Dec. 2013
COVERAGE RATIO(*)
Source: BPVi
3.89%
3.83%
3.93%
3.53%
3.49%
15.05%
4.26%
15.08%
13.49%
40.62%
Non Performing Loans
Watch List Loans
43.15%
43.67%
Restructured Loans
Past Due Loans
June 2013
Dec. 2013
June 2014
(*) Excluding partial write-offs for bankruptcy proceedings in progress at the reporting date
BANCA POPOLARE DI VICENZA
33
Financial Results
CAPITAL RATIOS: PRO-FORMA AS
OF 30 JUNE 2014
CAPITAL RATIOS
Source: BPVi
12.38 %
11.81 %
9.21 %
10.21 %
8.55 %
Dec. 2013
June 2014
Core Tier 1
•
34
10.67 %
June 2014 - Pro Forma
Total Capital Ratio
BPVi successfully completed the 608 €/mln capital increase with a
demand well above 700 €/mln. For the first time in BPVi’s history,
the number of shareholders raised to more than 100,000
BANCA POPOLARE DI VICENZA
CAPITAL STRENGTHENING
AMOUNT
TIMING
1.
Capital Increase
253 €/mln
Completed Aug. 2013
2.
Soft mandatory Covertible Bond
253 €/mln
Completed Aug. 2013
3.
Capital Increase
reserved to new shareholders
100 €/mln
Completed Dec. 2013
Capital Increase
• reserved to shareholders
• reserved to new shareholders
608 €/mln
300 €/mln
Completed Aug. 2014
Currently underway (*)
4.
(*) Capital Increase reserved to new shareholders started in June 2014.
Details are available at page 16 of 2014 EU-wide Stress Test
•
June 2014 and Pro-forma Capital Ratios were computed following
Basel 3 Standards phase-in implementation
•
BPVi is a standardized bank under Basel 2 framework. BPVi
implemented its internal rating system in 2008 which is used in the
origination and monitoring credit process. In 2012 an internal
project was set-up, aimed to get IRB advanced status by year end
2015
•
Further benefits on Capital Ratios will derive from the conversion
of 253 €/mln soft mandatory convertible bond (2015)
BANCA POPOLARE DI VICENZA
35
Company profile
FUNDING
BREAKDOWN
BANCA POPOLARE DI VICENZA
37
38
BANCA POPOLARE DI VICENZA
Funding Breakdown
DIRECT FUNDING BREAKDOWN
AS OF 30 JUNE 2014
DIRECT FUNDING BY SEGMENT (€/mln)
•
•
Direct funding decreased by 2.4
€/mln (compared to year end
2013) mainly due to a consistent
reduction of Repo Transaction
(thanks to the significant
increase in the Group’s liquidity
position)
Funding with Institutional Clients
increased by 10.8%(+290 €/mln)
mainly due to 3y EMTN public
issuance (500 €/mln executed in
January 2014) and to the
execution of 625 €/mln Private
Placements based on reverse
inquiries (with a maturity between
2 and 10 years)
•
Direct Funding with Retail/
Network Clients decreased by
652 €/mln (-2.5%)
•
Funding represented by
securitization is around 2.4 €/bln
as of June 2014
-2,419
-7.6 %
31,663
29,244
2,469
-2,057
2,677
-83.3 %
+290
26,517
412
2,967
+10.8 %
25,865
-652
-2.5 %
31 Dec. 2013
30 June 2014
Retail Clients 1
1) Bank accounts, Deposits (restricted and unrestricted),
deposit certificates, retail bonds (excl. EMTN and Private
Placement) and other Bonds
2) EMTN and Private Placement
3)Repo transactions via CC&G (LSE Group) and Other Debts
Institutional Clients 2
Other 3
Source: BPVi
BANCA POPOLARE DI VICENZA
39
Funding Breakdown
GROUP FUNDING PLAN (1 of 3)
MAIN ACHIEVEMENTS
Primary market deal in June 2014 through the new securitization in
RMBS space:
• Berica ABS3 – 835 €/mln
Primary market deal in July 2013 through the debut securitization in SME
space:
• Berica PMI – 980 €/mln
Origination of a private securitization in July 2013:
• Piazza Venezia – 673 €/mln
Secondary market disposal (Q4 2012 – 1H 2014) of 3.4 €/bln of retained
securitizations:
• Berica 8 – 755 €/mln
• Berica ABS A1 – 940 €/mln
• Berica 10 A2 – 311 €/mln
• Berica ABS2 A1/A2 – 632 €/mln
Source: BPVi
40
BANCA POPOLARE DI VICENZA
Funding Breakdown
GROUP FUNDING PLAN (2 of 3)
MAIN ACHIEVEMENTS
BPVi has been active in the last months in EMTN/senior unsecured space:
• 500 €/mln of a public 3 year senior bond under EMTN Programme
(120 accounts, total book after repricing over 800 €/mln). In terms of
distribution, Italian investors took 55%, UK & Ireland 23%, Switzerland
6%, Luxemburg, Spain & Portugal, France and Germany took 13%.
The book was supported by Asset Managers 44%, Banks 36% and
Insurance Companies 8% – January 2014
•
400 €/mln of a public 5 year senior bond under EMTN Programme
(90 accounts, total book after repricing over 580 €/mln). BPVi is the
first Italian bank rated below BBB- or equivalent, since the beginning
of the crisis, to issue a senior unsecured bond with a 5 year tenor
– October 2013
•
900 €/mln of senior bonds with a maturity between 2 and 10 years
under EMTN Programme (mainly based on reverse inquiries) issued
since July 2013, 625 €/mln of them issued in the first half of 2014
Source: BPVi
BANCA POPOLARE DI VICENZA
41
Funding Breakdown
GROUP FUNDING PLAN (3 of 3)
2014 MAIN REDEMPTIONS
Wholesale funding:
• No redemptions of senior bonds issued under EMTN Programme left
in 2014
Retail funding:
• Retail bonds issued under domestic Programme maturing by year
end 2014 amount to 200 €/mln. Funding Plan’s target is a total
replacement of the bonds matured
•
The Securities Lending business will continue to play a pivotal role to
get new clients and retain existing customers. In terms of
counterbalancing capacity contribution, securities lending with
customers is well above 800 €/mln in terms of market value
Source: BPVi
42
BANCA POPOLARE DI VICENZA
Funding Breakdown
LIQUIDITY
RISK MANAGEMENT PERSPECTIVE
LIQUIDITY RISK METRICS
•
BPVi implemented the liquidity risk indicators required by Basel 3
standards, both for regulatory and internal purposes.
The Risk Management Department, reporting to the Board of
Directors, is in charge of monitoring the short term liquidity risk, the
long term structural liquidity risk as well as the intraday liquidity risk,
the regulatory LCR and NSFR on a monthly basis and
the leverage ratio on a quarterly basis
•
During the first half of 2014 the internal LCR has permanently
been well above the minimum level of 100%, set by
the Board of Directors within the approved Risk Appetite Framework
•
The regulatory CRR-compliant LCR as of 30 June 2014 stood well
above the minimum regulatory level of 60% which, according to the
requirements of the Delegated Act, must be reached by 1 October
2015
•
The Basel 3 NSFR as of 30 June 2014 was relatively close to the
minimum regulatory level of 100% which, according to Basel 3
requirements, must be reached by 1 January 2018
•
BPVi belongs to the panel of banks monitored on
a weekly basis by Bank of Italy. From a liquidity perspective,
the 3 months cumulated gap stood at 5.36 €/bln, as of 30 June 2014
Source: BPVi
BANCA POPOLARE DI VICENZA
43
Funding Breakdown
ECB COLLATERAL BREAKDOWN
ECB COLLATERAL BY ASSET TYPE
31 DEC.
2013
30 JUNE
2014
30 SETT.
2014
33.07%
19.80% 7.83% 8.26%
51.05%
2.21% 5.14% 2.42%
84.67%
2.50% 2.72%
31.04%
39.18%
10.11%
Source: BPVi
Central Government
Financials & Others
Senior bond issued with Gov. Guarantee
44
BANCA POPOLARE DI VICENZA
Credit Claims (eligible loans)
Retained securitization & other RMBS/ABS
ECB
COLLATERAL POOL
31 DEC.
2013
as %
of Total
30 JUNE
2014
as %
of Total
COLLATERAL USED
3.36
69.46%
3.38
42.24%

COLLATERAL
CREDIT LINE AVAILABLE
1.48
30.54%
4.47
57.76%
5.18
100%
NET ECB MARKET VALUE
4.84
100%
7.85
100%
5.18
100%
30 SEPT.
2014
as %
of Total

•
As of September 2014 (compared with year end 2013), Net (of haircut)
ECB collateral market value increased by 62.2%
•
The available credit line to access ECB main refinancing operations
(around 5.18 €/bln) increased, since December 2013, by 250%
(over 3.7 €/bln)
•
ECB Collateral quality improved dramatically due to the strong
liquidity position that allowed the early repayment of Senior Bond
issued with Government Guarantee
•
As of September 2014, there are no ECB main refinancing operations
left (the 3.3 €/bln of LTROs have been fully repaid)
BANCA POPOLARE DI VICENZA
45
Company Profile
ECB
COMPREHENSIVE
ASSESSMENT
BANCA POPOLARE DI VICENZA
47
ECB Comprehensive Assesment
BPVi RESULTS
The European Central Bank is assuming banking supervision tasks
in November 2014 in its role within the Single Supervisory
Mechanism (SSM). In preparation, the ECB has conducted a
Comprehensive Assessment of 130 banks and it has published
the results on October 26, 2014.
The Comprehensive Assessment consisted of these components:
• the Asset Quality Review (AQR) was a point-in-time assessment of
the accuracy of the carrying value of banks’ assets as of 31 December
2013 and provided a starting point for the stress test;
•
The Stress Test provided a forward-looking examination of the
resilience of banks’ solvency to two hypothetical scenarios, also
reflecting new information arising from the AQR;
•
The Join-up methodology for AQR figures and Stress Test results that
provided a connection of both the first two components.
48
BANCA POPOLARE DI VICENZA
The outcome of the Comprehensive Assessment run by ECB and EBA is
the following:
• the AQR outcome is showing a 340 Eur/mln surplus
(including 2014 measures);
•
the Stress Test showed capital excess of 30 Eur/mln:
the technical gap was fulfilled by the conversion of the 253 Euro
million soft mandatory bond issued in 2013 in addition to the main
capital measures launched in 2013 and 2014 for a total amount of 1.2
Euro billion.
BANCA POPOLARE DI VICENZA
49
ECB Comprehensive Assesment
AQR AND STRESS TEST RESULTS
mln EUR, %
AQR RESULTS AS OF 31 DECEMBER 2013
Operating Profit before impairments
438
Impairment losses on financial
and non-financial assets in the banking book (5)
1,205
Common Equity Tier 1 Capital
2,178
Total Risk Exposure
28,712
7.6%
CET 1 (1)
AS OF
31 DEC. 2016
AS OF
31 DEC. 2014 (6)
ADVERSE
SCENARIO
mln EUR, %
BASELINE
SCENARIO
mln EUR, %
129
937
1,594
740
3 yr cumulative losses from the
stress in the trading book
41
12
Valuation losses due to sovereign
shock after tax and prudential filters
163
n.a.
Common Equity Tier 1 Capital
930
2,164
29,305
29,022
3.2%
7.5%
STRESS TEST
3 yr cumulative operating profit
before impairments
3 yr cumulative impairment losses
on financial and non-financial
assets in the banking book
Total Risk Exposure
CET 1 (1)
Source: EBA 2014 EU-wide Stress Test
50
BANCA POPOLARE DI VICENZA
AS OF
31 DEC. 2016
AS OF
31 DEC. 2014 (6)
ADVERSE
SCENARIO
mln EUR
BASELINE
SCENARIO
mln EUR
AQR
mln EUR
1,612
2,322
2,297
mln EUR, %
mln EUR, %
mln EUR, %
Capital Increase (3)
459
459
459
Soft mandatory
convertible bond (4)
253
253
253
Capital Excess (Shortfall)
30
554
593
5.6%
9.9%
10.1%
MEMORANDUM
ITEMS
Common EU wide CET 1
Threshold (2)
Source: EBA 2014 EU-wide Stress Test
ACTION PERFORMED IN 2014
CET 1 (1)
Source: BPVi
(1) According to CRR/CRD4 definition transitional arrangements as per reporting date. Figures as of 12/31/2014
computed as of first day of application 01/01/2014.
(2) Common EU wide CET1 Threshold 5.50% (Adverse scenario) and 8.00% (AQR and Baseline scenario).
(3) Details are available in EBA 2014 EU-wide Stress Test at the following link:
https://www.bankingsupervision.europa.eu/home/html/index.en.html
(4) Board of Directors took an irrevocable resolution to convert the soft mandatory bond issued in 2013.
(5) Figure adjusted as part of ECB Comprehensive Assessment AQR calculation.
(6) According to ECB/EBA guidelines capital excess (shortfall) must be determined considering
the lowest capital level over 3-years period (2016 data for adverse scenario and 2014 data for baseline scenario)
BANCA POPOLARE DI VICENZA
51
CONTACTS
BANCA POPOLARE DI VICENZA
53
Contacts
CONTACTS
Senior unsecured bond/EMTN
• Direct line: +39 02 62481260
• e-mail: [email protected]
Structured Finance/ABS
• Direct line: +39 02 62481260
• e-mail: [email protected]
54
BANCA POPOLARE DI VICENZA
BANCA POPOLARE DI VICENZA
55
Tradizione e futuro

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