Equity Company Note Veneto Banca 19 May 2016 Italy Like a Phoenix Banks Veneto Banca- Key data IPO Report Y/E December 2015A 2016E 2017E 2018E Net interest income EUR M 505 464 473 497 Total income EUR M 947 795 824 874 Gross operating profit EUR M 261 199 262 330 Intesa Sanpaolo Pre-tax profit EUR M -997 -133 7 99 Research Department Net profit EUR M -882 -78 28 90 Manuela Meroni Tangible book value EUR M 1,907 2,740 2,768 2,858 Research Analyst A: actual; E: estimates; Source: Company data and Intesa Sanpaolo Research +39 02 8794 9817
[email protected] . A regional Italian banking group with a focus on Northern Italy. Veneto Banca is the 13th Italian banking group with EUR 22.7Bn customer loans, EUR 33.3Bn total assets and 550 branches (487 in Italy), as of 31 December 2015. Veneto Banca has a market share of 1.6% in Italy in terms of branches, of which 1.9% in the north of the country and 5.2% in the Veneto region (as of December 2015). Veneto Banca is set to launch a EUR 1Bn capital increase and, at the same time, be listed on the Italian Stock Exchange. Positives. Among Veneto Banca’s points of strength, we consider its geographical positioning and its scope to increase its profitability thanks to the weaker starting point versus peers in Financial Team terms of cost of funding, penetration of fee-based business and cost base. Moreover, the Manuela Meroni bank’s possible involvement in the consolidation process in the Italian banking sector is an Elena Perini, CFA option that supports the investment case.