Transcript Nessun titolo diapositiva

2002 Results
2003-2005 Business Plan
April
2 0 0 3
Changes in the Group composition
BANCA CR FIRENZE
(Parent Company)
CR PISTOIA
e PESCIA
CR ORVIETO
51.0%
Centrovita
51.0%
Centro
Leasing
41.0%
Cerit
100.0%
Arval
Italia
22.5%
Centro
Factoring
46.0%
CR Firenze
Gest. Int.le
80.0%
Product Companies
73.6%
Findomestic
50.0%
Consumer
Credit
CR MIRANDOLA
73.8%
CR
CIVITAVECCHIA
51.0%
Liberamente
Network
Infogroup
Financial
Planners
Centro
Telemktg.
100.0%
50.0%
Datacentro
100.0%
Citylife
97.1%
Perseo
Finance
60.0%
Service Companies
Specialized units provided by Sanpaolo IMI and BNP Paribas
2
2002 Consolidated results
2002
2001 PF
Change
588.4
568.8
+ 3.5 %
19.4
16.5
+17.6 %
NON-INTEREST INCOME
332.0
338.3
- 1.9 %
Net commissions & other net income
323.6
324.5
- 0.3 %
230.2
244.7
- 5.9 %
8.4
13.8
-38.9 %
Equity investments
15.0
10.0
+50.0 %
TOTAL INCOME
954.8
933.6
+ 2.3 %
INTEREST MARGIN
Dividends
of which net commissions
Trading
Euro mn
3
2002 Consolidated results
TOTAL COSTS
2002
2001 PF
Change
Ex FINDOMESTIC
Banca CR Firenze
659.1
638.5
+ 3.2 %
+1.4 %
- 1.7 %
364.5
+1.5 %
FLAT
- 1.5 %
Personnel expenses
370.1
Other costs
223.7
210.1
+6.5 %
+3.9 %
- 3.5 %
65.3
64.0
+2.1 %
+2.4 %
+3.2 %
OPERATING INCOME
295.7
295.1
+ 0.2 %
Goodwill amortisation
20.9
21.1
- 0.9 %
Total provisions
97.1
86.9
+11.7 %
Exceptionals
13.0
12.2
+6.6 %
Taxes & minorities
108.1
113.4
- 4.7 %
GROUP NET INCOME
82.6
Depreciation
92.2*
Euro mn
- 10.5 %
* 2001 net income benefited by Euro 6.4 mn transfer from General Banking Risk reserve
4
Total Financial Assets
2002
2001
Change
DIRECT FUNDING
12,340
11,058
+ 11.6%
INDIRECT FUNDING
13,956
14,092
- 1.0%
Assets under custody
5,758
6,064
- 5.0%
Assets under management
8,198
8,028
+2.1%
1,948
2,340
- 16.7%
Mutual funds
4,471
4,089
+ 9.3%
Insurance Products
1,779
1,598
+11.3%
26,296
25,150
+ 4.6%
of which Discretionary accs.
TOTAL FINANCIAL ASSETS
Euro mn
5
Customers loans
 Growth, diversification and balance
Consumer
credit
19%
Public bodies
3%
Retail
23%
Small business
18%
11.2
11.6
1.6
2.0
2000 PF
2001 PF
12.2
2.4
Corporate
37%
25%
7%
7%
10%
6%
6%
5%
2%
16%
Euro bln
16%
Customer loans -
Portfolio composition: by segment, average - by sector, B CR Firenze
2002
Findomestic
6
Credit quality
 Close loan quality monitoring
54.4%
284.3
281
261.5
52.6%
51.9%
125.8
133.2
129.7
2.36%
2.29%
1.14%
1.12%
Euro mn
2.28%
1.06%
2000 PF
2001 PF
Gross NPLs
2002
Net NPLs
2000 PF
2001 PF
Net NPLs cover ratio
2002
Gross NPLs/Gross loans
Net NPLs/Net loans
7
Credit quality - Perseo
 1999 NPL securitisation recoveries: far better then
the best case scenario
90
Euro mn
45
0
M
2000
J
S
D
M
2001
Total recovered
Scenario 3
J
S
Scenario 1
Scenario 4
D
M
2002
J
S
D
Scenario 2
8
2003-05 Business Plan
9
Competitive positioning
 Comparison with other regional banks shows there is no
local roots advantage
32%
Funding market share
Index 1.21
24%
16%
Index 1.54
Banca CR
Firenze Group
Index 0.97
8%
Index 1.15
0%
0%
10%
20%
30%
Branch market share
10
Competitive positioning
 Highly diversified market share and penetration index in
the different local areas
Much room for improvement
45%
25%
Pistoia
Market share
Market share
Pistoia
Firenze
Arezzo
11.2%**
Terni
Firenze
Arezzo
Grosseto
Prato
Terni
8.6%**
Grosseto
Siena
0%
0.00
Siena Lucca Massa
Pisa
Viterbo
Prato
Perugia
Mantova
Livorno
Funding
1.00
Modena
Modena
Penetration index*
2.00
0%
0.00
Massa
Lucca
Livorno Viterbo
Perugia
Pisa
Mantova
1.00
Penetration index*
2.00
Lending
* Market share / Employee market share - as at 30/09/02 ** B.CR Firenze Group average
11
Performance analysis
 Corporate macro-segment shows a negative performance
% Net income*
77.2%
30.2%
6.1%
-1.3%
-12.2%
Retail
Affluent
Private Bkg.
* B. CR Firenze - Contribution to commercial banking net income - 2002
Small
Business
Corporate
12
New marketing model
 Two markets - Retail Banking & Corporate & Private Banking
 Transfer of the Small Business segment to the Retail market
 Two vertically organized marketing Divisions
RETAIL DIVISION
CORPORATE & PRIVATE BANKING
DIVISION
RETAIL BRANCHES
656,000
Mass Market
85,000
Small Business
140,000
Affluent
CORPORATE CENTERS
PRIVATE BKG.
CENTERS
15,000
Corporate
4,000
Private Bkg
C U S T O M E R
B A S E
13
Targets and Actions
Retail
Division
FOCUS ON
FAMILY
SMALL BUSINESS
 Industrialization of marketing actions (CRM)
 Packaging of offer
 Reduction of service costs
 Further customization of relationship
AFFLUENT
 Increase in cross- and up-selling
 Continuous development of financial
planners network
14
Targets and Actions
FAMILY
 Industrialization of marketing actions (CRM)
 Packaging of offer
 Reduction of service costs
Pro-active marketing campaigns

Propensity score

Fine-tuning of customer knowledge (Customer Insight techniques)
Identification of priority products (Next Product )

Cluster analysis
Reduction in portfolio managers from 408 to 345 (-15%)
Event management

Event definition and link to marketing actions
15
Targets and Actions
SMALL
BUSINESS
 Industrialization of marketing actions (CRM)
 Packaging of offer
 Reduction of service costs
New integrated loan and marketing score platform

time saving (-30%)
Outbound and inbound call centers
New catalogue design

59% reduction in number of products from 506 to 207

8 new package products:4 deposit and 4 loan products
Revision and simplification of the credit granting process
Reduction in portfolio managers from 326 to 245 (-25%)
16
Targets and Actions
AFFLUENT
 Further customization of relationship
 Increase in cross- and up-selling
 Continuous development of financial planners network
Extension of portfolio model to all branches
Implementation of Personal Financial Planning
 Portfolios adjustment to risk profile / Increase in commissions
Asset under custody portfolio advisory
Increase in portfolio managers from 154 to 313 (+103%)
Financial planners: 200 by 2005
17
Targets and Actions
Corporate &
Private Bkg.
Division
FOCUS ON
CORPORATES
 Customization of relationship and Client
Plan introduction
 Monitoring of credit quality
 Increase in penetration and focusing on
areas with great development potential
PRIVATE BANKING
 New service model: dedicated portfolio
managers
 Dedicated offer development
 Sinergies with Corporate segment
18
Targets and Actions
CORPORATES
BOLOGNA
Service model
Prato
Avenza
Sesto F.no
Firenze Ovest
Firenze Est
Montevarchi
Viareggio
Arezzo
Pisa-Livorno
Dedicated marketing structure
Perugia
Santa Croce
Top foreign trade advisory
Empoli
Siena
Leading role of portfolio managers
Client Plan introduction
40 specialized consultants
Grosseto
12 Corporate Centers + 2 Aid points
120 portfolio managers
19
Targets and Actions
CORPORATES
Profitable capital allocation
Pricing
Implementation of Internal Rating system
Target curve
Fine-tuning of the present pricing method
Switch to customers with higher credit standing
and lower risk/profitability ratio
Spread
 Risk-adjusted pricing
High
Risk
(Internal Rating)
Low
20
Targets and Actions
PRIVATE
BANKING
Service model
Prato
Corner
Avenza
Investment Centers
Leading role of portfolio managers
Dedicated Personal Financial Planning
Firenze Ovest
Firenze Est
Montevarchi
Viareggio
Dedicated marketing structure
Corner
Sesto
F.no
Arezzo
Corner PisaLivorno
Corner Santa
Croce
Corner
Perugia
Empoli
Siena
Corner Grosseto
8 Investment Centers and 6 Corners
at the Corporate Centers
47 portfolio managers
21
Targets and Actions
PRIVATE
BANKING
Dedicated offer
Introduction of Discretionary Accounts with prior consent
Customized Discretionary Accounts (multibrand & multimanager)
Alternative investments

Funds of hedge funds

Funds of private equity funds

Real Estate funds
New derivatives platform
Specialized advisory

Fiscal and succession advisory services

Tax planning
22
2003 - 05 TARGETS
23
EPS 2003-05
 The new marketing model will bring important
improvement in profitability
0.15
0.138
+ 22% CAGR
0.101
0.1
0.1
0.084
Euro
0.076
0.083
0.067
0.05
2002
2003
Base line
2004
2005
Target line
24
2002 & 2005 total income breakdown
 Increase in profitability from every segment
 Corporate macro-segment will reach a positive
contribution
+12.1 %
-28.8 %*
+25.0 %
+16.2 %
+15.6 % +21.2 %
+15.3 %
88.8
118.3
+4.2 %
+36.7 %
92.8
624.0
43.9
18.5
103.4
14.0
144.3
Retail
Affluent
Private
Banking
Small Business Corporate
2002 total income
Finance
Corporate
Center
Shareholdings
TOTAL INCOME
2005 total income increase
* Negative performance due to 2002 Eptaconsors extraordinary dividend
25
ROE and Cost/Income
 Net growth in overall profitability
 Business plan implementation costs will have an impact
mainly in 2003
70.2%
14.4%
67.1%
66.3%
62.6%
11.3%
9.7%
8.9%
2002
2003
ROE
2004
2005
Cost / Income
26
Costs breakdown to 2005
2002
TOTAL COSTS
2005
Change
FINDOMESTIC
CAGR
Excluded
B. CR Firenze
659.1
726.0
+ 3.2%
+1.5 %
+1.7 %
Personnel expenses
370.1
386.0
+ 1.4 %
+ 0.4 %
+ 0.4 %
Other costs
223.7
264.0
+ 5.7 %
+ 2.9 %
+ 3.4 %
Depriciation
65.3
76.0
+ 5.0 %
+ 4.3 %
+ 2.9 %
Euro mn
27
2002 Results
2003-2005 Business Plan
April
2 0 0 3
Back-up slides
28
Capital ratios
2002
2001
Change
TIER 1*
896.5
785.6
+ 14.1%
TIER 2
608.5
454.1
+ 34.0%
Deductions
114.5
124.0
-
1,390.4
1,115.7
+ 24.6 %
SOLVENCY RATIO
9.8%
8.3%
+ 150 bp
TIER 1 RATIO
6.2%
5.7%
+ 50 bp
REGULATORY CAPITAL
* Core capital - No preference shares issued
Euro mn
7.6%
29
Macroeconomic scenario
2003
2004
2005
GDP
+1.4%
+ 2.6%
+ 2.5%
Domestic Demand
+2.0%
+ 2.5%
+ 2.5%
Inflation
+2.2%
+ 2.1%
+ 1.7%
Customer Loans
+5.4%
+ 6.2%
+ 6.1%
Direct funding
+4.7%
+ 5.1%
+ 5.1%
Spread
(Mk-up+Mk-down)
+3.5%
+ 3.4%
+ 3.4%
Prometeia, December 2002
30
Personnel
Group Banks
Headcount reduction
Incentive plan (around Euro 12,5 million)
Old / New personnel salary ratio around 2:1
Cerit
Sector regulations: use of sector redundancy fund
1999
2000
2001
2002
2005
420
0
-81
-83
Personnel expenses: +1.4% CAGR
383
383
386
2003
2004
2005
370
-82
-150
-161
-250
-300
300
2002
Banks’ headcount reduction
31
Findomestic Banca –
Consumer credit
Findomestic Banca
3.97
BNL
28.4%
3.27
Fiatsava
21.0%
2.92
Destsche Bank Prestitempo
Agos Itafinco
2.24
25.6%
25.0%
2.04
2002 new business volume
2003 New business
Home appliances
Personal loans
0.95%
1.12%
125
118
2001
2002
2001
2002
NPLs ratio
Cover ratio
Vehicles
Home appliances
Revolving cards
Vehicle financing
Personal Loans Revolving
2003 new business trend
32