MB GROUP CREDIT PROFILE
Update as at 30 September 2020 AGENDA
1. MB Group today
2. 1Q/3M FY21 Results
3. Funding & Treasury
3.1 Funding: structure & evolution
3.2 Treasury: structure & evolution
Annex
1. 12m figures as at June 20 MEDIOBANCA AT A GLANCE
MB Group today Section 1
Revenues1 RWAs1 Key financial information1 Revenues: €2.5bn CETI : 16.1%, Tot. Cap: 18.8% Net profit: €600m Moody’s rating 3 Baa1 WM WM 10% ROTE adj: 10% S&P rating 3 : BBB 23% Consumer 3 CIB 25% C/I ratio: 47% Fitch rating : BBB- CIB Consumer 42% 4 23% 43% Total assets: €79bn DPS: €0
Other Loan book: €47bn Stated payout: 0% Other 23% 11% TFA: €64bn Loan/funding ratio: 85% No. of staff: 4.9k Market cap.3: €5.4bn
Revenues (€m) Net profit (€m) ROTE adjusted2
2,525 2,513 2,419 Net profit 10% 10% 10% 2,196 adj.: 887 864 823 750 One-off 8% includ. Covid
600
June17 June 18 June19 June20 June17 June18 June 19 June 20 June17 June18 June19 June 20
1) Figures referred to FY20 period (June-end 2020 annual period) 3 2) Excluding items stemming from Covid emergency, systemic fund provisions, impairments on equity stakes and securities, and other positive/negative one-off items 3) As at 29 October 2020 4) In accordance with ECB guidance on Covid crisis AN INTEGRATED BUSINESS MODEL…
MB Group today Section 1
HIGH SYNERGIC BUSINESS
Capital light Wealth Corporate & Labour intensive Fee driver Fee driver Recurrent Management Inv.Banking Cyclical
REALLOCATION OPPORTUNITY DIVERSIFICATION OPPORTUNITY
EPS/DPS accretive Principal Capital intensive Revenue driver Consumer NII driver Source of capital Investing Banking Anti-cyclical
HIGH RETURN BUSINESS
4 …BASED ON STRONG POSITIONING IN SPECIALIZED, HIGH MARGIN BUSINESS… MB Group today Section 1
WEALTH MANAGEMENT - ROAC 19% CONSUMER BANKING - ROAC 31% A reputable player in Affluent & Private “Compass: top Italian consumer credit operator”
Affluent: CheBanca! on top of digital-technological frontier, sustainable and innovative offer Distribution and scoring built in 50 years Cost-efficient, strong credit risk assessment, Private: gathering UNHWI/HNWI, synergic with mid pricing margin driven corporate business, benchmark in private markets Countercyclical business Selected competences in alternative & traditional AM
CIB - ROAC 13% PRINCIPAL INVESTING - ROAC 18% “The leading Italian IB, established role in Southern EU” “13% stake in Ass.Generali”
Client driven, highly specialized, cyclical business Cost-efficient, strong credit risk assessment, Revenues, EPS, DPS stabilizer ~45% revenues from outside Italy Cost-tax free investment Leveraging MMA presence in France Potential source of capital Specialty Finance: from green field to sizable
WHERE MEDIOBANCA IS NOT PRESENT CIB: large FICC business to be heavily restructured, problematic sectors such as ITA small business, shipping, real estate development RETAIL: large and oversized traditional retail branches network, legacy IT/CRM system
5 ROAC refers to 12M June 20 figures SUPPORTED BY A STRONG A&L STRUCTURE…
MB Group today Section 1
Specialty Balance sheet as at 30 September 2020 Finance PB deposits 4% Mortgages Total: €81.9bn 15% 22% Retail Other Large deposits Leasing 12% corporate 28% 4% 35% €46.8bn Private €56.7bn Banking ECB 7% 11% Bonds to Loans/ institutional Consumer Loans Funding: 22% lending 57% Funding Bonds 28% 83% to retail 69% 12%
CET11: 16.2% Total Capital: 18.8% Leverage Ratio1: 9.3% BB govies 36% Treasury Liquidity Net NSFR: 109%, LCR (end-of period): 164% 39% assets Treasury Treasury €15bn 34% €15bn liabilities 15% NPLs/loans: 4.2% gross, 1.9% net NPLs coverage: 57% Equity 12% Equity Inv. 5% Bad loans/loans: 1.0% gross, 0.2% net Corporate Bad loans coverage: 82% Client & bonds 14% other Assets Liabilities 8% Trading book 3%
Loans : 43% corporate, 57% retail; ~80% Italy, ~20% non-domestic Funding: 55% from retail investors (12% bonds to retail, 28% retail deposits and 15% PB deposits)
1) CET1 FL: 14.6%; Leverage ratio FL: 7.4% 6 …WITH A LOW RISK PROFILE REAFFIRMED
MB Group today Section 1
Loans under moratoria well below Italian average, Stage 2 high coverage, stage 3 aligned to EU averages
Total granted moratoria Stage 2 loans Stage 3 loans % of loans¹ % of loans2 % of loans2 22.0% 25% 20.0% 3% 10.3% 15.0% 20% outstanding 3.8% 3.4% 10.0% 12.0% 10% 15% coverage 5.0% 53% 60.0% 0.0% 8% 45% 47% 50.0% 5.6% 10% -5.0%6% coverage 40.0% 11.3% -10.0%4% 5% 8.2% 6.4% -15.0%2% 4.3% 3.4% 6.5% 30.0% MB Listed ITA All ITA banks 0% -20.0%0% 20.0% banks MB EU avg. IT avg. MB EU avg. IT avg.
MB: buffers well over SREP and MREL requirements MB: liquidity and funding ratios at strong levels
193% >800bps buffer 42.4% MREL liabilities 2x 4 >650bps fully loaded requirement 166% 165% 160% 164% LCR
109% 109% 16.2% 105% 103% 103% MREL req. NSFR 21.6% SREP req. 7.9%3
CET1 ratio (Sept20) MREL liabilities (% RWA, June20) Sept19 Dec19 Mar20 June20 Sept20
1) MB as at Sept.20. Source: Bank of Italy, as of 11 September 2020; ITA banks’ June20 results presentations, reports and pillar 3 2) Source: EBA Risk Dashboard – Data as of June 2020- %of loans (histogram) and coverage ratio (dots) 7 3) In March 2020 the ECB brought forward application of CRD V Article 105. This means that 75% of Mediobanca P2R (1.25%) is now met by CET1 instruments and the other 25% with Tier 2 instruments, bringing the SREP minimum CET1 requirement down from 8.25% to 7.94% 4) Sub stack at 20.2% vs 16.5% requirement BP19/23 STRATEGY, TARGETS CONFIRMED, NOW INCLUDING COVID IMPACT
MB Group today Section 1
Shift to capital-light fee Revenue growth in a Enhanced return to business challenging environment shareholders
Targeting industry-leading performance
CET1 ratio progressively Revenues growth Earnings growth Profitability growth optimized at 13.5% throughout 2023 +4% CAGR1 +4% EPS CAGR1 ROTE23 @11% with a mix of cash dividend and share buyback
CAPITAL MANAGEMENT POLICY DPS20 = 0, in accordance with ECB recommendation Dividend pay-out @70% in FY21, pending ECB guidance / authorization after end-Dec. 2020 Progressive optimization of CET1 to 13.5% confirmed by end-June 2023 as a mix of cash dividend and buybacks, the size and mix of which will be set annually depending on developments in the pandemic and Mediobanca stock price
8 1) 4YCAGR 19/23, including treasury shares cancellation (subject to ECB authorization) CSR/ESG PATH: DELIVERY COMMENCED, WELL ON TRACK
MB Group today Section 1
FY20 non-financial performance Further ESG cornerstones set Several targets already reached, working to consolidate the remaining
Employee competences enhanced with avg. training hours up 95% YoY (BPTarget23: 25%) in part to deal with Covid-19 emergency New Corporate Social Responsibility Committee at BoD level in addition Procedure adopted to reach targets for equal opportunities, including to the Group Sustainability specification in head-hunter mandates Management Committee
AM: procedure started to include ESG criteria in investment evaluation (BPTarget23: 100% of new investments) CSR objectives included in the LTI €100m investments in outstanding Italian SMEs (BPtarget23: €700m) scheme as well as in BPlan23 ESG qualified products in clients’ portfolio up 20% (BPtarget23: up 30%) Group Sustainability Policy update €5.4m in FY20 for social/environmental proj. (BPtarget: €4m per year) MB Social Impact Fund: AUM up 29% (BPtarget23: up 20%) New Group Policy on Responsible Lending and Investing ESG bond issue: green and sustainable framework approved (BPtarget23: €500m) 36% of procurement exp. assessed with CSR criteria (BPtarget23: 40%) Customer satisfaction: CheBanca! CSI¹ in core segment² @74, NPS¹ @28 Materiality Matrix update (BPtarget23: 73 and 25)
Energy: 93% from renewables (BPTarget23: lifted to 94%), CO2 down 6% (BPTarget23: revised to down 27%); hybrid cars: 13% (BPTarget23 : @90% of MB fleet) RAM Stable Climate Global Equities issued
1) CSI: Customer Satisfaction Index; NPS: Net Promoter Score 9 2) Core: Premier: clients with wealth between €100k and €5m AGENDA
1. MB Group today
2. 1Q/3M FY21 Results
3. Funding & Treasury
3.1 Funding: structure & evolution
3.2 Treasury: structure & evolution
Annex
1. 12m figures as at June 20 1Q21: A POSITIVE START TO THE NEW FINANCIAL YEAR ALL BUSINESS SEGMENTS REACTING FAST
1Q/3M FY21 Results Section 2
Sound business recovery after lockdown, ahead of expectations and despite seasonality IB revenues picking up, pipeline rebuilding New loans in Consumer Banking back to 75% of pre-Covid levels, sufficient to offset loans expiring in 1Q WM: solid trend continuing in Affluent & Private segment
Positive exit from moratoria in all business segments Consumer Banking: 90% of loans under moratoria have expired, ~90% of which have resumed regular payments Mortgages: 16% of loans under moratoria have expired, 85% of which have resumed regular payments Moratoria outstanding at MB Group halved to just 3% of loan book (€1.4bn), already provisioned
Strong 1Q21 results Net profit up 4x QoQ to €200m, ROTE adjusted 9% CET1 at 16.2%1 (up 10bps QoQ), with 70% dividend payout2 accrued Revenues up 3% QoQ to €626m, driven by core revenues (NII+Fees up 9% QoQ) CIB rebounding (up 31%), solid trend in WM (up 4%), Consumer Banking holding up better than expected (down 2%) Cost of risk halved to 61 bps (141 bps in 4Q), Gross NPLs stable ~ 4%
CSR/ESG strategy: delivery ongoing, with green bond issuance ahead of schedule
1) CET1 Phase-in. Managerial calculation that differs from the one used in the COREP Common Reporting exercise due to the 11 retained earnings generated in the period (not subject to authorization under Article 26 of the CRR) and based on a dividend payout of 70% subject to the ECB ban currently in place until 31 December 2020 being removed. Retained earnings impact on CET1 as to approx. 15. CET1 FL @14.6% (without Danish Compromise ~140bps and with IFRS9 fully phased ~15bps) 2) Subject to ECB decision, if the ban is not further extended. 1Q/3M21 RESULTS: NET PROFIT AT €200m
1Q/3M FY21 Results Section 2 Financial results Highlights
1Q21 4Q 1Q20 D D Strong start to FY21, with 1Q21 back to €200m net profit and 9% ROTE €m Sept.20 June20 Sept.19 YoY1 QoQ1 on a larger capital base ([email protected]%) Total income 626 606 684 -9% +3% Robust trend in core revenues, due to effective business Wealth Management 146 140 140 4% 4% diversification, increased recurring items and funding cost Consumer 260 266 267 -3% -2% optimization partly offsetting margin pressure and volume CIB 183 139 150 22% 31% slowdown in Consumer Banking PI 46 61 137 -66% -24% Wealth Management: solid performance, up 4% YoY and Total costs (288) (298) (283) 2% -3% QoQ, driven by higher commissions on AUM/AUA GOP 338 308 402 -16% 10% Consumer Banking: temporarily impacted by lockdown: Loan loss provisions (72) (165) (65) 10% -57% down 3% YoY and 2% QoQ, despite activity recovering well in Write downs/ups on 1Q, due to lower average volumes, in personal loans 13 12 4 n.m. 14% financial assets especially Other2 0 (77) 0 n.m. n.m. CIB: robust recovery, up 22% YoY and 31% QoQ, due to major PBT 280 77 341 -18% n.m. transactions in advisory business and a good recovery in ECM, Net profit 200 48 271 -26% n.m. with trading and lending trends normalizing TFA - €bn 64.2 63.6 62.4 +3% 1% PI: lower contribution, down 66% YoY and 24% QoQ, mainly Customer loans - €bn 46.8 46.7 45.0 +4% n.m. due to non-recurring items3 Funding - €bn 56.7 54.9 52.6 +8% 3% Costs firmly under control, with cost/income ratio @46% RWA - €bn 47.6 48.0 46.0 +3% -1% LLPs and CoR strongly improved QoQ (CoR @61bps vs 141bps in 4Q20 – LLPs down 57% QoQ) due to trend in asset quality: Cost/income ratio (%) 46 49 41 +5pp -3pp Consumer Banking: moratoria concluded, collection Cost of risk (bps) 61 141 58 +3bps -80bps indicators back to pre-Covid levels Gross NPLs/Ls (%) 4.2% 4.1% 4.3% ROTE adj. (%) 9% 10% 10% CIB: further writebacks of UTP positions CET1 ratio phased-in (%) 16.2% 16.1% 14.2% +200bps +10bps CET1 phased-in up to 16.2% (up 10 bps QoQ and up 200 bps YoY), including a 70% dividend payout
1) YoY: 3M Sept20/Sept19. QoQ: 3M Sept20/June20 12 2) Including SRF/DGS provisions and RAM impairment in 4Q20 (€65m) 3) 1Q21 results include negative one-off item stemming from the settlement agreement between AG and BTG Pactual, while 1Q20 was positively affected by extraordinary gains from disposal recorded by AG ROBUST ACTIVITY IN 1Q21 IN CIB … STRONG PRESENCE IN EUROPEAN LANDMARK TRANSACTIONS 1Q/3M FY21 Results Section 2
Advisory revenues (€m) ECM/DCM revenues (€m) Markets revenues (€m)
ECM DCM
41 5 35 35 34 33 31 29 26 5 19 19 10 5 6 4 0 1 2 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21
Ranked 1st in Italy M&A*, having been ECM contributing materially again, Revenues back to pre-Covid levels in involved in all landmark transactions with a mix of primary (GVS) and part due to reduced market (ISP-UBI, Nexi, Exor-Gedi, BC Partners- secondary issues (Cellnex) turbulence IMA, PSA-FCA, Veolia-Suez, Unibail) 1Q market rebound following Slowdown in equity derivatives market Increase in revenues, despite Italian contraction, with Italy up 30% YoY and due to stock market uncertainty, M&A market still lagging behind EU Southern Europe up 4x YoY mitigated by increase in Cash Equity markets in the industry rebound (1Q and Credit Trading DCM revenue contribution resilient, up 6% QoQ but down 20% YoY) with 10 Italian deals completed in 1Q Increasing opportunities in distressed Pipeline solid, assuming markets M&A and sectors (TMT, FIG, Mid), in remain stable part due to private equity dry powder at an all-time high
13 * Refinitiv – Italian announced League Tables (July – September 2020) …AS WELL AS IN WM … PROFITABILITY OF MANAGED ASSET IMPROVED 1Q/3M FY21 Results Section 2
Net New Money by product TFAs trend (€bn) (Affluent & Private, €bn) +3% YoY +1% QoQ
64.2 62.4 63.6 +0.9 +0.2 2.1 (0.5) 22.6 23.8 24.2 0.7 0.8 1.1 1.0 0.9 0.5 1.3 1.0 1.3 0.6 0.6 0.3 39.8 39.8 40.0 -0.6
Sept19 June20 NNM NNM Market effect Sept20 1Q20 2Q20 3Q20 4Q20 1Q21 Affluent&Private AM
Deposits AUM/AUA AUM/AUA Deposits
Solid NNM in the Affluent & Private segment (€0.9bn in 1Q), despite summer seasonality with mix and asset allocation improving. TFAs up 3% YoY and 1% QoQ to €64.2bn Affluent: €0.8bn NNM, ow €0.3bn in AUM/AUA. Productivity (NNM per FA/RM) aligned with top tier Italian asset gatherers. Distribution enhancement ongoing: 26 professionals hired in the quarter Private: €0.1bn NNM, with sound inflows of AUM/AUA (€0.3bn) partly offset by outflows in deposits. New initiative launched in illiquid markets in MBPB and enhanced distribution (two new senior bankers at MBPB, 6 at CMB) AM: €0.5bn outflows due to ongoing optimization of unprofitable institutional mandates by MB SGR (€0.8bn), systematic funds outflows now almost zero, ESG/climate strategies at RAM launched, new €0.3bn CLO placed at Cairn
14 PROGRESSIVE NORMALIZATION IN LENDING … IN CONSUMER BANKING ESPECIALLY
1Q/3M FY21 Results Section 2
Consumer Mortgages Corporate New loans and loan book (€bn) New loans and loan book (€bn) New loans1 and loan book (€bn)
13.7 13.7 13.4 16.5 16.5 16.5 15.4 15.3 13.0 10.2 10.4 12.9 10.1 Loan book 9.5 9.8 Loan book Loan book 2.0
0.2 1.6 1.2 1.2
1.9 2.0 0.1 0.8 0.1 0.9 1.7 0.76 1.5 1.8 0.56 0.1 0.48 0.42 0.8 0.38 1.0 1.1 0.7 0.7
1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 Term loan RCF
Solid corporate and mortgages activity with resilient loan books. Consumer Banking recovering in terms of volumes and mix: Consumer Banking: new loans (€1.5bn) recovering to 75% of pre-Covid level (as a reminder: 20% in April with full lockdown), near to quarterly repayment level (~ €1.5bn per Q); the mix has also recovered, with Compass’s market share in personal loans back to pre-Covid levels at ~14% (vs 8% in April) on renewed demand. Mortgages: new loans close to historical averages; loan book up 1% QoQ to €10.4bn Corporate Banking: new loans temporarily softened by seasonality, high corporate liquidity and bond issuance. RCF normalization confirmed. Loan book stable €16.5bn.
15 1) new loans of LSF (lending and structured finance) division …RESULTED IN RESILIENT NII AND REVENUES WELL ABOVE €600M CORE REVENUES (NII & FEES) UP 9% QoQ
1Q/3M FY21 Results Section 2 NII trend by division (€m, 3M) Group revenues trend by source (€m, 3M)
-9% +3% -1% -1% 684 641 626 582 606 136 48 44 359 362 360 361 55 357 57 66 +9% 36 35 48 69 67 69 67 72 155 174 159 143 189
69 69 66 67 68
359 362 360 361 357 235 239 237 237 226
1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21
Consumer WM CIB Other NII Fees Trading income Equity acc.
Revenues total €626m (up 3% QoQ), driven by strong performance of core components (NII & fees up 9% QoQ and 6% YoY): NII: €357m (down 1% QoQ and YoY), due to lower average volumes in Consumer Banking, margin pressure and high liquidity at Treasury level. CoF flat at roughly 80 bps Fees: €189m, (up 32% QoQ, and 22% YoY) boosted by strong performance in IB and in WM Trading back to normalized levels Contribution from AG down 20% QoQ due to non-recurring items¹
16 1) Impact of settlement with BTG Pactual on the Assicurazioni Generali group’s 1H20 results amounts to charges of approx. €183m (consolidated pro rata in MB 1Q results) CoR SIGNIFICANTLY DOWN (~60bps), HEALTHY ASSET QUALITY TREND
1Q/3M FY21 Results Section 2
Cost of risk by segment (bps) Asset quality indicators Gross NPL (“Stage 3”, €m and %) and coverage (%)
361 NPLs/LS 4.3% 4.1% 4.2% gross 248 223 197 185 55% 57% 141 3,000 53% 60% 85 61 2,500 58 39 1,976 1,954 2,016 2,000 40% 70 37 1,500 (15) (52) (38) 1,000 20% 500 1Q20 2Q20 3Q20 4Q20 1Q21 414 426 493 - 0% Sept19 June20 Sept20 Group CoR CIB CoR Consumer CoR Bad loans Other NPLs NPLs coverage
CoR down to 61 bps (vs 141 in 4Q20), driven by: “Performing” - Stage 11 “Performing” - Stage 21 14.0% 20.0% CoR reduction in Consumer Banking to 248 bps (361 bps 120% 1.0% 0.51% 0.55% 0.56% 12.0% 15.0% in 4Q20) supported by end of moratoria and collection 110% 9.1% 10.2% 10.3% coverage 0.5% 10.0% indicators returning to pre-Covid levels 100% coverage 10.0% 0.0% 8.0% Writebacks in CIB with CoR returning to negative area (- 90% 5.0% 6.0% 80% -0.5% 38 bps vs 70 bps in 4Q20) 0.0% 70% 89% 88% 88% 4.0% -1.0% 6.2% 7.0% 6.7% Resilient asset quality: gross NPLs/Ls 4.2%, stage 2 down 60% 2.0% -5.0% (to 6.7%) on positive outcome of moratoria. Coverage up 50% -1.5% 0.0% -10.0% (57% NPLs, 82% bad loans) Sept19 June20 Sept20 Sept19 June20 Sept20
17 1) Stage 1 and Stage 2 in % of total gross loans and coverage ratio. Figures in the graphs in this slide refer to Customer Loan Book and may therefore differ from EBA Dashboard in slide 7 (in particular the EBA includes NPLs purchased and treasury balances that are excluded from the MB classification) CET1 @16.2% WITH DIVIDEND PAYOUT @ 70% ACCRUED
1Q/3M FY21 Results Section 2
CET1 ratio (phase-in) up to 16.2%1 Payout ratio and CET1 ratio
+200 bps
+10 bps 120% 17.0% 16.1% 16.2% 16.0% -10bps +5bps 100% 16.1% +40bps -30bps 15.0% 16.2% CET180% ratio 14.2% 14.1% 14.2% 14.0% 60% 13.0% 40% 70% 12.0% Pay-out 48% 50% 20% 11.0%
0% 10.0% Sept19 June20 Earnings AG RWA Dividend Sept20 FY18 FY19 FY20 FY21
Phased-in CET1 ratio1 @16.2% (up 10 bps QoQ) with: +45 bps organic generation (earnings & RWAs), -10bps from AG, -30bps dividend accrual New distribution policy set for FY212: cash dividend payout @ 70% of reported earnings, subject to ECB authorization
1) CET1 Phase-in. Managerial calculation that differs from the one used in the COREP Common Reporting exercise due to the 18 retained earnings generated in the period (not subject to authorization under Article 26 of the CRR) and based on a dividend payout of 70% subject to the ECB ban currently in place until 31 December 2020 being removed. Retained earnings impact on CET1 as to approx. 15. CET1 FL @14.6% (without Danish Compromise ~140bps and with IFRS9 fully phased ~15bps) 2) Subject to ECB decision, if the ban is not further extended, after Dec.20 LOANS UNDER MORATORIA HALVED, OVER IN CONSUMER BANKING
1Q/3M FY21 Results Section 2
Moratoria: 48% expired, ~90% have resumed regular payments … with outstanding halved to just 3% of Group loans
Gross carrying amount (€bn, Sept20)¹ % Moratoria on 5% Group loans Total Total o/w % expired granted outstanding Stage 2-3 2.2 3% 1.9 1.7 MB Group 2.70 48% 1.40 25% 1.6 1.5 1.4 Consumer 1.33 90% 0.14 86%
0.5 Mortgages 0.65 16% 0.54 19%
Leasing 0.72 - 0.72 17% Mar20 Apr20 May20 June20 July20 Aug20 Sept20
Leasing Consumer Mortgages
Total loans under moratoria halved to €1.4bn as at Sept.20, or 2.9% of Group loans 90% expired in Consumer Banking. On average 88% have resumed making regular repayments (5% rolled over) 16% expired in mortgages. On average 85% have resumed making regular repayments (12% rolled over) Conservative approach: 25% of residual loans under moratoria classified as stage 2-3 and covered Residual moratoria regarding: Leasing: €0.7bn; 17% related to clients that will not extend period and will resume normal payments in 2Q21; almost all the remainder expires by end-January 2021 Mortgages: €0.5bn; ~25% expiring by end-December 2020, ~60% by end-June 2021, 15% later
1) Including moratoria outside law decrees/associations of categories agreements 19 CONSUMER BANKING: REASSURING TREND IN ASSET QUALITY
1Q/3M FY21 Results Section 2
Moratoria expired with no major issues and … … early deterioration in asset quality indicators now back to (€m, Sept20) pre-lockdown levels
10% Expired €1.2bn Outstanding €0.1bn 3M avg.
88% back to regular payments 9% 255 Monthly data
8% 201 212 7%
144 6%
90 5% 67 48 47 38 38 36 32 30 4% 20 25 16
11 6 4 1
Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20
Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Coverage ratio strengthened and… …net NPL stock (€m) and ratio (%) remain excellent, thanks also to ongoing disposals
800 2.5% 3.0% 2.2% 2.1% 2.3%
700 2.2%
80% 7.0%
2.0%
600 75% 71% NPL coverage 68% 67% 68% 68% 6.0% 70% 500
5.0% 1.0%
65%
400 3.2% 3.2% 4.0% 324 303 60% 2.7% 2.7% 2.8% 300 295 291 0.0%
300 Performing 3.0% coverage 55% 200 2.0%
50% -1.0%
1.0% 100 45%
40% 0.0% 0 -2.0% Sept19 Dec19 Mar20 June20 Sept20 Sept19 Dec19 Mar20 June20 Sept20
20 CIB: HIGH QUALITY OF CORPORATE LOAN BOOK CONFIRMED
WB loan book by sector (as at Sept20)
18%
High impact from Covid-19 Immediate impact from Covid-19 11% 9% 9% 7% 7% 6% 6% 4% 3% 2% 2% 2% 2% 2% 2% 2% 1% 1% 1% 1% 0.6% 0.4%
WB exposure skewed to IG/crossover2 (as at Sept20) WB loan portfolio by geography3 (as at Sept20)
Germany 8% France ➢ High quality confirmed on sector highly 9% Crossover impacted by COVID-19 17% Spain ➢ 60% IG+crossover 7% ➢ LBOs only 3% UK IG Other Italy 6% 53% 30% ➢ Low ticket in riskier buckets 55% Other ➢ ~40 waiver requests, mainly related to Europe financial covenant and a negligible US 7% amount on postponement of payments 5% RoW 3% 1) “Other” includes sectors with exposure below 2% and low or medium impact from Covid-19: Aerospace, Containers and Packaging, Energy Services, Healthcare, Information Technology, Infrastructure, Metal, Paper, Retail Food and Utilities 21 2) Investment grade (IG) including rating classes from AAA to BBB-, crossover including BB+ rating bucket 3) Geographical breakdown based on the following criteria: i) Country where the company generates >50% of consolidated revenues or, if this criterion is not met, ii) Country where the company has either its managerial centre or its main headquarters ASSET QUALITY BY DIVISIONS
Net NPLs of which bad loans NPL coverage NPL as % of loans (“deteriorate”) (“sofferenze”) 4.3% 4.1% 4.2% 55% 57% Gross Mediobanca 53% 2.1% 1.9% 1.9% 926 874 877 +13% Net Group 80 78 88 Sept19 June20 Sept20 Sept19 June20 Sept20 Sept19 June20 Sept20 Sept19 June20 Sept20
3.7% +8% 2.9% 3.0% 42% Corporate & 40% 2.3% 38% Investment Banking 394 316 340 1.7% 1.9% (CIB) 0 0 0 Sept19 June20 Sept20 Sept19 June20 Sept20 Sept19 June20 Sept20 Sept19 June20 Sept20
-6% 6.5% 7.2% 7.5% 68% 68% 71% Consumer Banking 2.5% 300 324 303 -7% 2.2% 2.3% (CB) 16 15 14 Sept19 June20 Sept20 Sept19 June20 Sept20 Sept19 June20 Sept20 Sept19 June20 Sept20
1.7% Wealth 46% 46% 1.6% 1.6% +4% 44% Management +6% 117 115 119 0.9% (WM) 42 46 49 1.0% 0.9% Sept19 June20 Sept20 Sept19 June20 Sept20 Sept19 June20 Sept20 Sept19 June20 Sept20
9.0% 9.8% 9.6% 36% 36% 37% Leasing -4% +45% 6.0% 6.5% 6.3% 115 119 114 22 17 25 Sept19 June20 Sept20 Sept19 June20 Sept20 Sept19 June20 Sept20 Sept19 June20 Sept20
22 AGENDA
1. MB Group today
2. 1Q/3M FY21 Results
3. Funding & Treasury: Summary and recent trends
3.1 Funding: structure & evolution
3.2 Treasury: structure & evolution
Annex
1. 12m figures as at June 20 FUNDING UP TO 55BN, HIGH LIQUIDITY
Funding & Treasury - Summary & recent trends Section 3
Funding stock breakdown (€bn) MB securities redemptions (€bn, CoF bps vs Euribor3M) +8% YoY
+3% Avg. CoF 56.7 165 100 205 52.6 54.9 QoQ expiring bonds 10.8 6.7 6.4 6.7 4.3 5.7 6.5
19.3 18.8 19.3 3.1 2.9 2.5 22.6 23.8 24.2
Sept19 June20 Sept20 June21 June22 June23 > June23
WM deposits MB securities ECB Other
MB Group counterbalancing capacity(€bn)
Comfortable funding & liquidity position Abaco Funding up 8% YoY to €57bn, with higher contribution from WM 4.5 HQLA - deposits (up 7% YoY) and increased TLTRO drawdown: €6.5bn Encumbered Securities Total TLTRO (up €0.8bn vs June20), ow €4.8bn for TLTRO3 (€1.8bn (TLTRO) 3.4 unencumbered additional in Q1) with more favourable remuneration 6.5 ECB eligible Group CoF flat at ~80bps HQLA - assets: ~€13bn Cash Treasury assets up to €15bn (from €13bn in June), ow €4.1bn 4.8 liquid assets with ECB (up €1bn in the quarter), partially Non HQLA - remunerated by ECB Tiering (€1.5bn). Solid indicators (NSFR at Securities 109%, LCR at 164%, CBC at ~13bn) 0.6
24 WELL DIVERSIFIED FUNDING STRUCTURE…
Funding & Treasury - Funding: structure & evolution Section 3.1 MB Group funding breakdown (September 20) WM deposits by segment MB Bond by type, segment and channel
55% retail Senior (retail) T2 (retail) 4.4 2.4 MB bonds retail CB! deposits 12% 15.7 €19.3bn WM deposits Secured Senior 43% (institutional) €24.2bn MB bonds (institutional) 7.0 institutional 5.0 €56.7bn SNP (institutional) 22% 0.5
PB deposits 8.4 ECB Retail MOT Retail third Banks and 11% 13% party networks other 18% 12% Retail CB! 4% €19.3bn MB Group Funding totals €56.7bn: Institutional Private offer 55% retail and 45% institutional placements 47% 17% WM deposits representing 43% of total (€24.2bn) MB bonds representing 34% of total (19.3bn), 35% retail and 65% institutional, well-diversified by type and by channel: €11.4bn senior, €2.4bn T2, €0.5bn SNP, €3.8bn covered bonds, €1.2bn ABS Low needs in terms of capital eligible instruments due to high capital levels, but capital optimization on track with the inaugural SNP issuance in January 2020
25 …DIVERSIFIED OVER THE LAST DECADE
Funding & Treasury - Funding: structure & evolution Section 3.1
MB Group funding trend (€bn) MB bond outstanding by investor
57 56
45
40% 40% 38% 41% 45% 47% 42% 44% 43% 48% 52% 53% 63% 65%
60% 60% 62% 59% 55% 53% 58% 56% 57% 52% 48% 47% 37% 35%
J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 J-17 J-18 J-19 J-20 S-20 J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 J-17 J-18 J-19 J-20 S-20 MB bonds Retail deposits Private banking deposits Banks & Other Bonds to retail Bonds to institutionals ECB
WM deposit share increased due to CheBanca! and private banking arms’ growth Bond funding diversified between retail and institutional investors, with institutional funding on a constant rising trend ECB: reliance around 11% of Group Funding (€6.5bn as of September 20, not fully exploiting maximum drawable amount of ~€8bn)
26 …WITH LOW MREL NEEDS
Funding & Treasury - Funding: structure & evolution Section 3.1
MREL liabilities vs MREL requirements MREL requirement: MB and peers2
MREL Liabilities: 42.4%RWA1 Deposits³: 4%
Senior MREL Surplus Avg. 25.7% bonds: 20.9% 18.2% 21.6%
SNP: 1% Sub: 3.1% Sub Surplus MREL Senior bonds 5.9% requirement Sub stack Sub 21.6% RWA Hard Sub Req 20.2% CET1:16.1% requirement 14.3% 16.5%
MREL Eligible liabilities MREL req. 2020 Subordination req.
(June20) 2020 MB
Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Bank 6 Bank 7 Bank 8 Bank 9 Bank
Bank 10 Bank 10 Bank 11 Bank 12 Bank 13 Bank 15 Bank
MREL requirement set at 21.6% of RWA for 2020 (13.13% of TLOF, based on Dic.18 data), one of the lowest in EU MREL eligible liabilities (~€20.4bn as of June 2020) @42.4% of RWAs with a surplus of 20.9% of RWAs New subordination requirement for 2020 set at 16.5% (ow 2.2% senior allowance and 14.33% of hard subordination requirement) As of June 2020, CET1 and sub bonds totalling @20.2% of RWA with a surplus of 5.9% of RWAs (compared with 14.33% hard sub requirement) SNP issuance in Jan.20 (€500m) to optimize capital structure in view of T2 expiring starting from Nov.20 (€1.5bn T2 expiring in BP19-23 horizon)
1) Ratio computed using SRB Consolidated approach assumptions 2) Peer comparison include banks which have disclosed MREL requirment as of February 2020: ABN Amro, Allied Irish Banks, Bankia, 27 Bankinter, BBVA, Belfius, Bank of Ireland, CaixaBank, Deutsche Bank, ING, KBC, Santander, SocGen, Unicredit, Unicaja 3) Deposits not covered, not preferential REGULAR PLAYER ON BOND MARKET, ON SECURED AND UNSECURED SEGMENTS Funding & Treasury - Funding: structure & evolution Section 3.1
Historical bond issuances, redemptions and buybacks
12.6
8.6 8.9
7.2 6.8 7.0 6.4 6.3 5.2 5.5 4.6 4.5 4.5 4.1 4.4 4.2 4.1 4.4 4.0 3.7 2.9 3.0 3.1 2.8 2.5 2.1 1.1 0.5
J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 J-17 J-18 J-19 J-20 S-20
Issuances Redemptions and buyback
MB bond issuances well accepted by market especially during crisis period, when “flight to quality” matters From 2012 to 2015, maturities have not been fully replaced by issuances as MB has deployed substantial liquidity More recently, annual issuances stood in the range of €4-5bn, exploiting diversification by type and channel: in the secured space MB became regular issuer of ABS and covered bond, while on the unsecured, MB launched its inaugural NPS transaction in Jan.20. Inaugural € 0.5bn green bond launched in Sept, as planned in BP19-23
28 RECENT PUBLIC OFFERS AMONG INSTITUTIONAL INVESTORS Funding & Treasury - Funding: structure & evolution Section 2.2
MB public bonds placed to institutional investors since July 2019
Amount Subscription Issue date Bond type Tenor Spread at issue (€m) rate July 2019 Covered long 7Y 750 MS+53bps ~2.3x July 2019 Senior Preferred 6Y 500 MS+137bps >2.7x November 2019 ABS n/a1 600 3mE+57bps2 >1.5x December 2019 Senior Preferred long 6Y 500 MS+103bps ~1.9x January 2020 Senior Non-Preferred long 5Y 500 MS+130bps >8.0x September 2020 Senior Preferred Green 7Y 500 MS+135bps >7.0x
Allocation by geography Allocation by investor type BeNeLux 3% UK & Ireland 9% France Central Banks 17% Iberia & Official 8% Asset Institutions Managers Germany, AU 12% Nordics 52% & CH Insurance & 4% 25% Pension Funds Banks & Italy Others 2% 4% Private Banks 30% 32%
1) Final maturity of Class A1, A2 and B Notes is October 2036. The WAL of Class A1 Notes is 2.27 years 29 2) Referred to Class A1 Notes MEDIOBANCA INAUGURAL GREEN BOND
Mediobanca Inaugural Green 7-years € 500m Senior Preferred Issuance: CSR targets are key elements of MB Strategic Business Plan 19-23 and the publication of the Green and Sustainable Bond Framework in June 2020 represents a key pillar of our ESG strategy The inaugural green transaction has been focused towards the achievement of SDG 7 (Affordable Clean Energy), SDG 11(Sustainable Cities and Communities)and SDG 13 (Climate Action) Total size of eligible green projects at the date of the issuance was € 528m, with residual maturity of 8.7 years Breakdown of assets included in the green pool: 65% corporate loans, 26% retail mortgages, 9% consumer credit Thanks to Mediobanca strategic ESG goals and ambitions, the transaction saw a meaningful participation from SRI investors, demonstrating a clear sign of appreciation for the newly established framework
Allocation by Geography Allocation by Investor Type
Transaction Highlights 3% 1% Bond Type Senior Preferred Green 5% 6% 10% Pricing Date Sept 1st, 2020 25% 10% Tenor 7 years IPT Mid swap +165bps 10% 25% Re-offer spread Mid swap +135bps 15% 61% 14% Amount € 500m 15% ISIN XS2227196404 Re-financing of eligible Use of Proceeds Green Assets France Ger&Austria NIP -8bps Italy UK Funds Banks Over-subscription ~7.0x Nordics Iberia CBs & OIs Insurance & PF Swiss Others Others
30 MEDIOBANCA COVERED BONDS
Funding & Treasury - Funding: structure & evolution Section 2.2
Mediobanca €5bn Soft Bullet Covered Bond programme, placed to investors: UCITS and CRR Compliant, rated AA- with stable Outlook from Fitch; The cover pool is composed by first lien Italian residential mortgage loans with an average size of 91.9K; As of 30 September 2020, covered bond outstanding are €3.8bn; 0.01% of the loans are in 90+ arrears Oustanding Rating ISIN Currency Coupon Issue Date Maturity Date Amount (€m) (Fitch) IT0004966716 EUR 750 AA- 3.625% October 2013 October 2023 IT0005142952 EUR 750 AA- 1.375% November 20151 November 2025 IT0005142952 EUR 750 AA- 1.250% November 2017 November 2029 IT0005339186 EUR 750 AA- 1.125% July 20182 August 2024 IT0005378036 EUR 750 AA- 0.500% June 2019 October 2026
Interest rate type Portfolio characteristic (30 September 2020) 2.4% Total Current Balance €5,101m 36.1% Fixed Rate Average outstanding Balance €91.9k Floating Rate No. of loans 55,476 Floating Rate with Cap WA Seasoning 67 months 61.5% WA Remaining Term 228 months CLTV distribution 0.1%4.5% No. of borrowers 55,248 0-20% 20-40% 17.2% WA OLTV 65.0%
WA CLTV 55.1% 48.4% 40-60% 60-80% 29.9% % Fixed rate loans 36.60% over 80% WA Margin (%) Variable loans 1.96
31 1) €250m tap launched in December 2015; 2) €250m tap launched in September 2018 ABS (CONSUMER AND SALARY GUARANTEED LOANS)
Funding & Treasury - Funding: structure & evolution Section 2.2
Mediobanca through its subsidiary Compass S.p.a. (Compass) has originated several retained structured finance transactions collateralized by consumer loans, the Quarzo S.r.l. series. In December 2018 Compass has completed its inaugural market ABS, followed one year later by a similar transaction (November 2019) in order to pursue the strategy of becoming a regular issuer. The current outstanding amount for the Class A1 of the two transactions is of ~€788m1 Starting from 2015, Mediobanca has placed on the market two salary guaranteed loans transactions originated by Compass’ subsidiary Futuro S.p.a., through the SPV Quarzo CQS S.r.l. The current outstanding amount for Serie 2018 is ~€262m1
Quarzo S.r.l. – Serie 2019 Quarzo S.r.l. – Serie 2018 Quarzo CQS S.r.l. – Serie 2018
Quarzo 2019 is a securitization of consumer Quarzo 2018 is a securitization of consumer Quarzo CQS 2018 is a static cash loans originated to Italian borrowers by loans originated to Italian borrowers by securitization of salary and pension Compass Banca S.p.a. The transaction Compass Banca S.p.a. The transaction assignment loans originated to Italian factors in a 6-month revolving period factors in a 6-month revolving period borrowers by Futuro S.p.a. The purchase of starting from Dec-19. The issue was divided starting from Jan-19. The issue was divided the portfolio has been financed through into three classes, Class A1 offered to the into three classes, Class A1 offered to the the issuance of a senior (Class A) and a market and Class A2 and B retained by the market and Class A2 and B retained by the junior note. The Class A note has been Originator Originator placed on the market
Originator: Compass Banca S.p.A. Originator: Compass Banca S.p.A. Originator: Futuro S.p.A. Collateral type: Italian Consumer Loans Collateral type: Italian Consumer Loans Collateral type: Italian Secured Consumer Loans Total size of Class A: €600m Total size of Class A: €600m Total size of Class A: €598m Announcement date: 7 November 2019 Announcement date: 28 November 2018 Announcement date: 20 March 2018 Settlement date: 25 November 2019 Settlement date: 6 December 2018 Settlement date: 27 March 2018 First payment date: 15 January 2020 First payment date: 15 January 2019 First payment date: 18 April 2018 Coupon: 3mE+70bps Coupon: 3mE+95bps Coupon: 1mE+37bps Yield at issue: 3mE+57bps Yield at issue: 3mE+95bps Yield at issue: 1mE+37bps Issue price: 100.30% Issue price: 100.00% Issue price: 100.00% Listing: Irish Stock Exchange Listing: Irish Stock Exchange Listing: Irish Stock Exchange ISIN (Class A1): IT0005389264 ISIN (Class A1): IT0005348989 ISIN (Class A): IT0005328312 Minimum Minimum Minimum €100K + €1K €100K + €1K €100K + €1K denomination: denomination: denomination: Sole Arranger & Joint Lead Sole Arranger & Joint Lead Sole Arranger & Joint Lead Mediobanca’s role: Mediobanca’s role: Mediobanca’s role: Manager Manager Manager
1) As of October 29th, 2020 32 AGENDA
1. MB Group today
2. 1Q/3M FY21 Results
3. Funding & Treasury: Summary and recent trends
3.1 Funding: structure & evolution
3.2 Treasury: structure & evolution
Annex
1. 12m figures as at June 20 CAUTIOUS ASSET & LIABILITIES MANAGEMENT Funding & Treasury - Treasury: structure & evolution Section 3.2
MB Group net treasury assets* (€bn) MB Group treasury assets* breakdown (Sept20)
Trading Total €15bn book 0.5 Liquidity 5.8 9.3 8.2 15 Client&Other 9.3 1.2 8.6 5.6 7.3 5.0 7.5 BB bonds 4.9 5.5 6.2 2.1
11.8 12.0 BB govies 9.9 8.4 9.2 8.7 8.4 5.3 7.7 6.7 6.8 7.5
Financials Italy 73% 75% J-11 J-12 J-13 J-14 J-15 J-16 J-17 J-18 J-19 J-20 S-20 Germany 6%
Corporate Banking book Liquidity and HFT 25% Other 21%
Net treasury assets: €15bn; ~50% banking book govies and corporate bonds, ~50% liquidity/low risk client business Fixed income banking book up to €7.5bn, ~2/3 represented by Govies, 73% of which are Italian
* Sum of: financial asset/liabilities held for trading, treasury financial assets/liabilities, banking book securities, excluding banking 34 book equities LOW SOVEREIGN EXPOSURE AND DURATION OF IT GOVIES
Funding & Treasury - Treasury: structure & evolution Section 3.2 Banking book government bonds…by geography
Italian govies exposure confirmed low at €3.9bn Sept20 Book value (€bn) % CET1 (or ~50% of CET1 capital) out of €5.3bn, Total Govies 5.3 69% tactically increased to offset temporary Italy 3.9 51% slowdown in NII. - HTC 1.5 19% - HTCS 2.5 32% IT govies avg duration 4Y Germany 0.3 4% Low sensitivity of CET1 to IT govies spread: France 0.5 6% +100bps spread = <10bps neg. impact on CET1 US 0.4 5% Other 0.3 3%
…and maturities 7.1 5.6 2022- 5.1 5.4 5.3 €m 2020 2021 Beyond Total 4.6 4.7 2026 3.9 Italy - 380 2,912 632 3,923 3.3 3.3 2.7 Germany - 50 270 - 320 2.2 France 251 116 100 - 467 Spain - 10 172 - 182 US 107 254 13 - 374 Other - - 83 - 83 June16 June17 June18 June19 June20 Sept20 Total 358 810 3,550 632 5,349
Total Govies IT Govies
35 STABLE BANKING BOOK BOND PORTFOLIO
Funding & Treasury - Treasury: structure & evolution Section 3.2 Corporate (25%) Financials (75%) Total (Sept20)
BBB A BBB BB 53% 5% 19% AA 42% 10% AAA €0.5bn 8% €1.5bn BBB €2.1bn AA NR 28% BB 2% 4% 41% B and BB B and A 46% 4% AAA/AA below below 14% NR 10% 13% 3% Benelux 4% Benelux 5% Benelux Fra/Ger Fra/Ger 7% 13% 14% Italy US/UK €0.5bn Fra/Ger €1.5bn US/UK €2.1bn 68% 15% 6% 6% Italy Other Italy Other 70% UK 7% 69% 6% 7% Other 3%
BB non govies portfolio at €2.1bn (~75% Financials, ~25% corporate), well diversified in terms of geographies Corporate: ratings concentrated in the BB/BBB areas Financials: investment grade representing 42%, 83% IG+BB rating
36 AGENDA
1. MB Group today
2. 4Q/FY20 Results
3. Funding & Treasury
3.1 Funding: structure & evolution
3.2 Treasury: structure & evolution
Annex
1. 12m figures as at June 20 MEDIOBANCA GROUP A&L
12m figures as at June 20 Annex 1
∆ ∆ €bn June20 Mar20 Dec19 Sept19 June19 QoQ1 YoY1 Funding 54.9 53.9 52.1 52.6 51.4 +2% +7% Bonds 18.8 19.2 19.4 19.3 18.5 -3% +1% Direct deposits (retail&PB) 23.8 22.4 21.9 22.6 22.4 +6% +6% ECB 5.7 4.7 4.3 4.3 4.3 +22% +31% Others 6.7 7.6 6.5 6.4 6.1 -12% +10% Loans to customers 46.7 47.4 46.3 45.0 44.4 -2% +5% CIB 18.6 18.9 18.0 17.6 17.9 -2% +4% Wholesale 16.5 16.5 15.3 15.4 15.6 -0% +6% Specialty Finance 2.1 2.4 2.7 2.2 2.3 -11% -8% Consumer 13.0 13.7 13.7 13.4 13.2 -5% -1% WM 13.2 13.0 12.6 12.1 11.4 +1% +16% Mortgage 10.2 10.1 9.8 9.5 9.0 +2% +14% Private banking 2.9 2.9 2.8 2.6 2.4 +0% +25% Leasing 1.8 1.8 1.9 1.9 2.0 -1% -7% Treasury and securities at FV 13.8 11.9 11.4 13.5 12.8 +16% +8% RWAs 48.0 47.3 47.1 46.0 46.3 +2% +4% Loans/Funding ratio 85% 88% 89% 86% 86% -3pp -1pp CET1 ratio (%)2 16.1 13.9 14.1 14.2 14.1 TC ratio (%) 18.8 16.7 17.1 17.4 17.5
1) YoY=June20/June19; QoQ=June20/Mar20 38 2) CET1 phase-in. CET1 FL @14.5% (without Danish Compromise ~145bps and with IFRS9 fully phased ~15bps) 12M RESULTS BY DIVISION AS AT 30 JUNE 20
12m figures as at June 20 Annex 1
Wealth Consumer Principal Holding 12m- June20 (€m) CIB Group Management Banking Investing Functions
Net interest income 271 948 271 (7) (55) 1,442 Net treasury income 7 — 78 16 38 136 Net fee and commission income 306 123 226 — 11 630 Equity-accounted companies — — — 304 — 304 Total income 584 1,071 575 313 (7) 2,513 Labour costs (237) (102) (141) (3) (117) (599) Administrative expenses (214) (201) (135) (1) (56) (590) Operating costs (451) (303) (276) (4) (173) (1,189) Loan loss provisions (21) (325) (20) — (10) (375) Provisions for other financial assets (1) — (4) (11) (6) (21) Other income (losses) 2 (5) — — (64) (133) Profit before tax 114 438 275 298 (259) 795 Income tax for the period (33) (141) (92) (3) 76 (191) Minority interest (1) — (2) — (1) (4) Net profit 80 297 181 295 (184) 600
Customer loans 13,184 13,037 18,644 — 1,820 46,685 RWAs 4,952 11,801 20,028 8,122 3,128 48,030 No. of staff 2,021 1,441 630 11 817 4,920
39 Investor contacts
Mediobanca Group Investor Relations
Piazzetta Cuccia 1, 20121 Milan, Italy
Jessica Spina Tel. no. (0039) 02-8829.860 Luisa Demaria Tel. no. (0039) 02-8829.647 Matteo Carotta Tel. no. (0039) 02-8829.290 Marcella Malpangotto Tel. no. (0039) 02-8829.428
Email: [email protected]
http://www.mediobanca.com
40