GRUPPO CARIGE
4th
GRUPPO CARIGE
London
September 2009
1
Agenda
Carige Group at a glance
Key financial highlights
Strategic Priorities
1H09 results
GRUPPO CARIGE
2
Banca Carige Group today
~50,000 small
shareholders
Fondazione CR
Genova e
Imperia
i
44.06%
CNCE
14.98%
Assicurazioni
Generali
4.08%
Market
36.88%
Banca Carige SpA
Cassa di Risparmio di Genova e Imperia
Banking
Insurance
Finance
• Banca Carige
• Carige Vita Nuova (life)
• Carige AM SGR
• CR Savona
S
C i
Ass.ni
A
i (non
(
life)
lif )
• Carige
• Creditis
C diti (C
(Consumer
Trustee
• Centro Fiduciario
credit)
• CR Carrara
• BM Lucca
• B. Cesare Ponti
5,888
EMPLOYEES
Main Companies Only
1.9 M CUSTOMERS
(1.2 M BANKING; 0,7M ASSURANCE)
643 BRANCHES &
383 INSURANCE OUTLETS
EQUITY
3.5 € BILLION
Operational and accounting data as at 30 June 2009
GRUPPO CARIGE
3
Growth through a long season of acquisitions
Year
CAPITAL COLLECTED
€m
1994-95 IPO
1996-97
Year
105
Bond conversion into new shares
ACQUISITIONS
€m
1993-95-99 Cassa di Risparmio di Savona
228
61
1991-2006 Insurance companies
317
46
1999-2007 Banca del Monte di Lucca
1997
Capital increase underwritten by La
B il
Basilese
1998
Capital increase underwritten by
institutional investors
116
2000
21 branches from Banco di Sicilia
1999
Capital increase underwritten by CNCEP,
CDC,, WestLB
236
2001
61 branches from Gruppo Intesa
277
2003
Capital increases and issue of
subordinated convertible bonds
306
2002
42 branches from Gruppo Capitalia
127
2006
Capital increase
215
2003
Cassa di Risparmio di Carrara
174
Iss e of a LT2 loan
Issue
500
Capital increase
957
2008
79 branches from Intesa Sanpaolo
853
Issue of subordinated loans (Tier 1, Lower
Tier 2, Upper Tier 2, Tier 3)
510
2008
40 branches from Unicredit Group
115
Issue of a LT2 loan
100
2008
2009
Total
GRUPPO CARIGE
3,152
74
2004 2008 Banca Cesare Ponti
2004-2008
60
61
Total
2,286
4
A more and more diversified network
The network today
1/1
58/
/
72/ 53
24
56/22
ex Unicredit
branches
7
46/
30
47/31
643
20/ 18
28/19
France
252/13
1
56/ 24
57/20
40
79
4/ 11
4/11
1/ 5
2/7
13
13
33/ 35
40/35
522
2
137
3
2
9/34
7
6
11/
ex ISP
branches
7
4
69 / 60
new
branches
24
1989
2007
TODAY
100%
72%
71%
96%
48%
39%
3
3
11/23
25
26
37/
53
63/52
Banking branches
Insurance outlets
GRUPPO CARIGE
643
383
% of Branches
in
Northern Italy
% of
Branches
in Liguria
Operational data
5
The last two acquisitions
LOMBARDY
COMO
PAVIA
EX ISP
79 BRANCHES
25
19
6
VENETO
VERONA
VENETO
PADUA
ROVIGO
VENICE
1
1
34
15
1
18
VALLE D’AOSTA 1
AOSTA
1
1
2
25
15
PIEDMONT
TURIN
1
34
EMILIA ROMAGNA
BOLOGNA
RIMINI
FORLI’
5
UMBRIA
PERUGIA
1
15
15
5
2
2
1
1
1
7
LATIUM
ROME
Direct
Deposits
€1 4b
€1.4b
Indirect
Deposits
€3 6b
€3.6b
Loans
€1.4b
Customers
170,000
As at 10 March 2008
EX UNICREDIT
40 BRANCHES
Direct
Deposits
€0.5b
Indirect
Deposits
€0.6b
Loans
€0.4b
Customers
67,000
As at 1 December 2008
7
7
TOTAL
4
SARDINIA
SASSARI
4
4
26
GRUPPO CARIGE
SICILY
PALERMO
MESSINA
CATANIA
AGRIGENTO
SYRACUSE
26
13
4
2
4
3
Direct
Deposits
€1.9b
Indirect
Deposits
€4.2b
Loans
€1.8b
Customers
237,000
Operational data
6
Among the top 10 Italian banking Groups
Market Cap(1) (€b)
43,2
• Ordinary shares
• Savings shares
37,9
Total Assets FY08
3.5 €b
0.5 €b
(2)
(€b)
1,046 #6
#8
636 86
8,6
7,1
4,1
4,0
2,6
2,3
2,3
1,7
214 UC
Domestic Branch Network FY08
(2)
(#)
ISP
MPS
122 UBI
121 BP
53 45 32 BPER BPM
BC
Customer Loans FY08
(2)
21 14 BPS CBERG
(€b)
6,463 612
612 #8
5,053 #8
395 3,104 2,209 1,946 2,209 1 946
1,273 ISP
UC
MPS
BP
UBI
787 BPER BPM
145 643 BC
262 96 250 BPS CBERG
UC
ISP
MPS
UBI
81 BP
40 33 21 BPER BPM
BC
15 11 BPS CBERG
(1) Data as at 27 August 2009
(2) First 10 banks by capitalization at 13 May 2009
Source: Company data
GRUPPO CARIGE
Operational data and accounting data (FY08 report)
7
Among the top 10 Italian banking Groups
C/I (%) FY08
Core * C/I (%) FY08
(1)
(1)
66 9%
66.6% 66.9%
75.8%
#3
72.1%
63.7% 64.5%
68.1%
66.5% 66.7%
53.8%
58.9% 58.9%
55.4% 56.3%
58.6%
60.0%
#4
61.5% 62.6%
43.9%
44.2%
CBERG BPER
CBERG BPER
BC
BPS
UC
UBI
BP
BPM
ISP
MPS
T1 ratio
#6
TC ratio
BC
UC
BPM
BP
UBI
ISP
MPS
(*) Core cost income = Core revenues/Operating costs
Tier 1 and Total Capital Ratio (%) FY08
#3
BPS
Net NPL ratio (%) FY08
(1)
2.5%
#7
1.7%
12.4% 11.9%
11.4% 11.1% 11.0%
10.6% 10.6% 10.2%
0.04%
4.2%
CBERG BPM
8.6%
0.6%
4.2%
3.4%
3.9%
2.7%
4.2%
3.1%
7.3%
7.7%
7.2%
7.9%
6.4%
7.1%
5.1%
UC
UBI
BPER
BC
BP
ISP
MPS
12.4%
7.7%
9.3%
0 7%
0.7%
0.9%
0.9%
1.0%
1.2%
1.4%
1.4%
BC
BPER
4.2%
9.0%
‐0.5%
BPS
BPM
BPS CBERG UBI
ISP
BP
UC
MPS
(1) First 10 banks by capitalization at 13 May 2009
Source: Company data
GRUPPO CARIGE
Operational data and accounting data (FY08 report)
8
Agenda
Carige Group at a glance
Key financial highlights
Strategic priorities
1H09 results
GRUPPO CARIGE
9
Focus on retail
by segment
by area (*)
South & Isles
7%
Public Entities
4%
Large Private
Corporate
<1%
9%
L
O
A
N
S
Mass Market
30%
Other
9%
Centre
20%
SME
38%
Small Business
10%
Liguria
36%
North
38%
(*) by customers’ residence
LOANS TO CUSTOMERS 1H09 : 21.9 €b
by segment
T
O
T
A
L
D
E
P
O
S
I
T
S
by area
Other
19%
Affluent & Mass Market
50%
Private
20%
Centre
13%
North
22%
South & Isles
6%
Liguria
60%
Corporate
11%
TOTAL DEPOSITS 1H09 : 44.6 €b
Small business = turnover<1 m ; SMEs= <100 m€; Large Corporate= >100 m€
Data as at 30 June 2009
Mass Market: total deposits < 80 k€, Affluent > 80 k€, Private > 500 k€
GRUPPO CARIGE
Operational and accounting data (1H9)
10
Customer based funding
Funding
€m
Interbank deposits
money market deposits
and current accounts
other deposits
475.6
2.0
205.2
270.5
0.8
1.1
20,408.9
13,564.1
84.2
56.0
6,844.8
28.2
EMTN programme
deposits
bonds
1,870.0
50.0
1 820 0
1,820.0
7.7
0.2
75
7.5
Subordinated loans
floating rate bonds
convertible fixed rate bonds
1,142.9
1,133.0
9.9
4.7
4.7
0.0
339.7
339.7
1.4
1.4
Customer deposits
short term deposits
medium/long term deposits
and bonds
Securitisation
RMBS performing
f
securities
Interbank deposits
2%
%
Customer Customer
deposits
84%
Securitisation
1%
Subordinated loans
EMTN
EMTN 5%
programme
8%
Bonds issued on the network
New issues for
2,1 €b over
the last 12
months
500 400 TOTAL FUNDING
24,237.1 100.0
Funding includes further 101,9 million from
the securitization carried out in 2001,
derecognised in the financial statement
pursuant to the exemption allowed by IFRS 1
on first time adoption
€m
300 200 100 ‐
issued bonds
Data as at 30 June 2009
GRUPPO CARIGE
expired bonds
Data as at August 2009
Operational data and accounting data (1H09 report)
11
No pressure on liquidity
Current Debt Maturity Profile
2008 and 2009 operations
Operation
Issue
Date
2008
Capital increase
957 € m
March
Tier 3
100 € m
June
Lower Tier 2
100 € m
June
Tier 1
160 € m
December
Covered bonds
(*)
500 € m
December
PL Securitization
853 € m
December
Upper Tier 2
150 € m
December
5 000
5,000
4,500
4,000
500 m
callable in 2011
3,500
3,000
2,275 2,500
2,000
1,500
2 048
2,048 1,376 1,183 1,082 736 1,000
699 116 174 500
0
2009
2010
2011
2012
customers
2013
institutional
2014
2015
2016
2017+
2009
Lower Tier 2
Total
100 € m
June
2.920 € m
€m
Data as at July 2009
GRUPPO CARIGE
(*) On a 5 € b plafond
Operational data
12
Sound assets
Loans to customers allocation and concentration
Financial assets splitting
Medium/long term gross loan splitting
Financial assets (*)
mortgage mortgage
loans to individuals
24.5%
bad loans
3.3%
Mutual funds
3% Hedge funds
<1%
consumer credit
d
3.4%
m/l term
/l
73%
short tem
23.7%
Debt securities
83%
Structured Structured
notes
9%
loans to corporate
72.0%
Loans to customers 21.9 €b
(*) Data do not include the shareholding in Bank of Italy and
the notional value underlying customers’ index linked policies
First 30 groups
First 50 groups
AA
61%
25.0%
AAA
5%
BBB
5%
20.0%
15.0%
Other
4%
10.0%
5.0%
Total 5.2 €b
Debt securities, securitisation and structured notes rating
Cash loan concentration
First 20 groups
Securitization
2%
Equity and private equity
3%
Dec 02
Dec 03
Dec 05
Dec 06
Dec 07
Dec 08
Jun 09
First 20 groups 17.6%
16.9%
11.3%
10.2%
9.5%
8.6%
10.9%
First 30 groups 20.6%
19.3%
13.5%
12.2%
11.7%
10.6%
13.1%
First 50 groups 24.7%
22.8%
16.7%
14.9%
14.5%
13.4%
15.9%
A
25%
Total 4.8 €b
Data as at 30 June 2009
GRUPPO CARIGE
Operational data and accounting data (1H09 report)
13
Conservative NPL coverage policy
Bad loan ratio
NPL loan ratio
8.0%
8.0%
6.0%
3.7%
3.6%
4.0%
4.3%
4.1%
4 6%
4.6%
Dec 06
Dec 07
Dec 08
2.0%
1.8%
1.6%
1.4%
1.7%
Dec 06
Dec 07
Dec 08
June 09
Gross bad loan ratio
Gross bad loan ratio
6.0%
4.0%
2.0%
0.0%
6.2%
6.9%
6.0%
3.3%
2.9%
6.3%
5.1%
0.0%
Net bad loan ratio
Net bad loan ratio
G
Gross NPL ratio
NPL i
June 09
N NPL i
Net NPL ratio
Only one NPL
securitization in
2000
Breakdown of gross NPL (€m)
NPL
of which: bad loans
Coverage of gross bad loan
Coverage
of gross bad loan
Adjustment on loans/loan
GRUPPO CARIGE
31/12/2006
31/12/2007
1,018
599
52.0%
0.5%
1,087
621
55.6%
0.4%
30/06/2008 31/12/2008
1,252
627
54.5%
0.3%
1,278
622
53.8%
0.4%
30/06/2009
1,510
720
49.1%
0.2%
Operational data and accounting data (FY06 report - FY07 report – 1H08 report
– FY08 report – 1H09 report)
14
Robust capital ratios
Capital Ratios
14.00%
1H09
12.00%
TOTAL CAPITAL RATIO
10.09%
10.00%
TIER 1 RATIO
7.70%
T1 min
T1 recommended
T1 Carige Group
T1 Carige Group
TCR min
TCR recommended
Core TIER1 RATIO
6.90%
8.00%
6.00%
4.00%
TCR Carige Group
2.00%
2001
2002
2003
2004
2005
2006
2007
2008
J 09
Jun‐09
Comparison with the Average Italian Banks’ Ratios – FY08
10.4%
0.4%
Impact on recapitalisation
operations carried out after
31 December 2008,
2008 including
operations announced by 4
banks (Tremonti bonds)
6.7% 7.1%
GRUPPO CARIGE
6.2%
7.2%
7.2%
Banking system
Banking system
Carige Group
Core T1 ratio
Source: ABI – European Banking Report Observatory
7.7% 7.9%
T1 ratio
Equity/Total assets ratio
Operational data
15
Agenda
Carige Group at a glance
Key financial highlights
Strategic priorities
1H09 results
GRUPPO CARIGE
16
Our mission
Carige Group aims to be a national financial conglomerate equipped to
provide banking, financial, insurance and pension solutions, focused on
retail, pursuant to the development of resources and structures
g
multi-channel distribution system
y
and the enhancement of an integrated
Conglomerate
• Complete offer of
banking, financial
and insurance
products and
services
• Aggregation
A
ti
point
i t
for smaller banks
GRUPPO CARIGE
National
• Widespread
presence in Italy
especially in
certain areas and
strong presence in
Liguria
• Focused on the
relationship with
local communities
Retail
• F
Focusing
i
on
families, SMEs
and local public
entities
• Widespread and
intensive use of
technology
Quality of
resources and
structures
Multi-channel
• Distribution
• Specialisation of
system based
distribution and
on branches,
production structures
mobile and
• Unitary management
remote channel
of the Group’s keyexpertises
i
• Professional
development of
human resources
• IT system in line with
best practice
17
Core priorities
PRODUCTION AREA
• Profitability enhancement of each business area (lending, wealth
management, payment system, insurance)
• Integration
i
b
between Insurance and
d Banking
ki
Business
i
Enhancement of
productivity,
efficiency
y and
profitability
Growth of
volumes and
maintenance of
consistent equity
levels
Effective risk
management
DISTRIBUTION AREA
• Increasing volumes per employee:
¾ cross-selling, up-selling and retention in Liguria
¾ raising market share outside Liguria
• Growth of intermediation, above all in areas outside Liguria where the
presence is already significant
• Full integration of the 79 ex ISP and 40 ex Unicredit branches
• Increasing income from subsidiaries
ADMINISTRATION AREA
Human Resources:
• Maintenance of a standard consistent with the Group’s needs
• Development of skills and management of talents
GOVERNANCE AND CONTROL AREA
• Process innovation through investment in technology
• Controlling the economic impact of all kinds of risk
• Capital management
GRUPPO CARIGE
18
Now the Group is focusing on:
Numbers
9 Increase the number of current accounts
9 Deveoplment of cross selling
9 Development of Bancassurance product
Quantities
9 Exploitation of mortgage portability
9 Development of personal loans
Efficiency
GRUPPO CARIGE
9 Operational efficency (cash-in technique – group back office)
9 Improvement of allocation efficiency
19
Cross selling
The number of products per customers is susceptible of development, particularly through
profitable products
Cross selling
2 60
2.60
2.53
2.50
2.52
2.50
2.49
2.45
2.40
2.38
2 30
2.30
2.28
2.20
2002
2003
2004
2005
2006
2007
2008
Cross selling by area and segment
Cross selling by area and segment
Private
4.45
Affluent
3.80
Corporate
2.97
3.10
2.95
Small business
2.46
2.35
TOTAL
Large corporate
Large corporate
2.40
2 25
2.25
Mass market
2.26
2.21
2.40
0.00
GRUPPO CARIGE
1.00
2.00
5.02
5.30
4.17
4.40
3.33
3.82
3.37
Total Carige
Extra‐Liguria Network
2.67
Liguria Network
2.83
3.00
4.00
5.00
6.00
20
Bancassurance products
A large number of customers is still available to place bancassurance products
In 2008 results of bancassurance products overperformed the system, but the average
per branch is still below the system’s
€/10
000
+48%
868
‐27%
767
586
System
Carige
2007
556
System
Average per branch
CHANGE
6 months 2009 6 months 2008
+141%
Carige
2008
3,3%
Approx 60,000 customers shared
between banking companies and
insurance companies
GRUPPO CARIGE
21
Personal loans
The Group’s consumer credit company shows wide room of development for its products
Personal loan MYSURA
Total
136.9
136
9 mln
l
over 6 months
25,0
Mysura
is
a
personal
loan
issued
by
the
Group’s
consumer
credit
company
(Creditis).
The
lended amount is
between 2,000 and
75,000 €
€m
20,0
15,0
10,0
5,0
00
0,0
Both
B
th products
d t
can
be
supported by a
CPI.
Jan
Feb
Mar
Apr
May
June
July
Credit card VALEA
Total
6.1 mln
over 6 months
16
1,6
1,4
1,2
€m
Valea is a revolving
card issued by the
Group’s
consumer
credit
company
(Creditis)
since
October 2008
1,0
0,8
0,6
0,4
0,2
0,0
Jan
GRUPPO CARIGE
Feb
Mar
Apr
May
June
July
22
Focus on operational efficiency
Technology investments allow customers to reduce the use of tellers above all for low value
added operations, releasing resources that can be exploited in different activities
20%
% deposits made through Cash in
%
p
g
18%
15.9%
16%
16.6%
14.7%
13.2%
14%
11.3%
12%
10.2%
10%
8 5%
8.5%
8%
12.0%
10.6%
11.3%
7.7%
5.9%
Carige Extra Liguria
6%
3.2%
4%
2%
Carige Liguria
9.4%
1.4%
0.0%
0
0%1.4%
1 4%
2.2%
1.6%
1.4% 1.5%
0.5%
1.7%
1 6%
1.6%
2.2%
Total Banca Carige
1.6%
1 6%
1.6%
0%
Jan‐08 Feb‐08 Mar‐08 Apr‐08 May‐08 Jun‐08
Jul‐08 Aug‐08 Sep‐08 Oct‐08 Nov‐08 Dec‐08 Jan‐09 Feb‐09 Mar‐09 Apr‐09 May‐09 Jun‐09
Jul‐09
85%
% current account operations through Centred Back (1) L’incidenza è calcolata
sulle operazioni di
versamento effettuate nelle filialioffice
in cui sono attivi i Cash in.
Carige Liguria
Carige Liguria
80%
75.31%
75%
70.1%
70%
67.4%
71.3%
71.9%
67.4%
68.3%
71.5%
70.1%
65.2%
65%
61.6%
67.6%
65 9%
65.9%
60%
Total Carige
56.4%
55%
Carige Extra Liguria
51.4%
50%
Banking subsidiaries
45%
Mar‐07
GRUPPO CARIGE
Jun‐07
Sep‐07
Dec‐07
Mar‐08
Jun‐08
Sep‐08
Dec‐08
Mar‐09
Jun‐09
23
Agenda
Carige Group at a glance
Key financial highlights
Strategic priorities
1H09 results
GRUPPO CARIGE
24
1H09 – Growth of Deposits and Loans
DIRECT DEPOSITS
TOTAL DEPOSITS
€b
23.7
€b
+ 18.3%
20
42.2
44.6
+ 15.5%
+ 5.7%
1H08
3.2%
1H08
1H09
1H09
INDIRECT DEPOSITS
22.2
20.9
€b
-5.6%
-7.9%
1H08
NET INTERBANK BALANCE
€m
LOANS TO CUSTOMERS
305.6
1H08
change
GRUPPO CARIGE
21.9
+ 45.2%
210.5
1H09
19.4
1H09
1H08
change net of UC branches’ contribution
CUSTOMER
DIRECT DEPOSITS
LOANS
TO CUSTOMERS
=96%
€b
+ 12.9%
+ 10.6%
1H09
UC branches’ contribution
Operational data and accounting data (1H08 report – 1H09 report)
25
1H09 – Growth of core revenues
NET PROFIT
O
CO
CORE
REVENUES
S
€m
(*)
€m
525.2
111
1H08
+ 0.7%
111.7
1H09
OTHER REVENUES
517.2
1H08
1H08
change
GRUPPO CARIGE
1H09
COSTS
€m
25.5
-32.9
+1.5%
326 1
326.1
€m
+17.2%
278.4
1H09
1H08
1H09
(*) Core revenues = Net interest income + Net commissions + Dividends
Operational data and accounting data (1H08 report – 1H09 report)
26
Disclaimer
This document has been prepared by Banca Carige SpA solely for information purposes and for use in
presentation of the Group’s strategies and financials. The information contained herein has not been
independently verified. No representation or warranty, express or implied, is made as to, and no reliance
should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions
contained herein. Neither the company, its advisors or representatives shall have any liability whatsoever for
any loss howsoever arising from any use of this document or its contents or otherwise arising in connection
with this document. The forward-looking information contained herein has been prepared on the basis of a
number of assumptions which may prove to be incorrect and, accordingly, actual results may vary.
This document
Thi
d
t does
d
nott constitute
tit t an offer
ff or invitation
i it ti
to
t purchase
h
or subscribe
b
ib for
f
any shares
h
and
d no partt off
it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
The distribution of this presentation in certain jurisdictions may be restricted by law. Recipients of this
presentation should inform themselves about and observe such restrictions.
The information herein may not be reproduced or published in whole or in part, for any purpose, or distributed
to any other party. By accepting this document you agree to be bound by the foregoing limitations.
*****
The manager responsible for preparing the company
company’s
s financial reports Daria Bagnasco,
Bagnasco Director in charge of
Planning and Accounting of Banca CARIGE S.p.A., declares, pursuant to paragraph 2 of Article 154 bis of the
Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to
the document results, books and accounting records.
GRUPPO CARIGE
27
Contacts
Giacomo Burro
CFO & Wealth Management Director
[email protected]
Tel: +390105794580
Maurizio Marchiori
Head of Planning and Control
[email protected]
Tel. +390105794868
Emilio Chiesi
Head of International Funding & UK Representative
[email protected]
Tel: +442076002608
Investor Relations
[email protected]
Tel: +390105794877
GRUPPO CARIGE
28