Consolidated Results as at September 30 2015 Miro Fiordi€¦ · March 2015 March 2015 * 2014 - Sum of Substandard loans and Restructured loans NPLs Coverage up by 50 bps in Q3 September

1Consolidated results as at 30 September 2015

Consolidated Results as at

September 30th 2015

10th November 2015

Miro FiordiCEO, Credito Valtellinese


Agenda

Executive summary

Credit policies and asset quality

Funding, liquidity and securities portfolio

Capital ratio

Revenues development

Cost management and Net profit development

Annexes


Executive Summary

Executive Summary

Operating trends• significant increase in asset managment fees (20.7%). Increase in total net fees (+5.7%) • positive results from cost reduction actions (-2.7% in operating expenses)• cost of retail funding (deposits and bonds) at 83 bps, compared to 126 bp at December

2014• gross loans stable compared to the end of 2014, 589 mn of new loans to individuals,

+106.9% YoY, 1,467 mn of new loans +74.2% YoY• inflow of doubtful loans in decrease compare to the last quarter (-26.4%). Inflow of

doubtful loans in decrease for the third consecutive quarter.

Sound liquidity position• counterbalancing capacity of 5 bln, of which 3,7 bln unencumbered• LCR and NSFR above the minimum required

Strong capital position: • CET1 ratio at 11,8% “fully loaded” aligned to the best capital standards, not considering the

preliminary agreement to sell the stake in ICBPI• additional potential buffer deriving from AIRB model approval • solid “Basel 3” leverage ratio at 6,5%*

*At 30 june 2015 – fully loaded


Executive Summary

Digital banking

Oct 2015

Users 260,680

Bank Transfers 81%

Trading 63%

Trade and receivable presentations 90%

New digital platform released in

November

• web site

• institutional web site

• app for banking services

• website for banking services

“Future branch” released in 6 pilot branches

% of total

transactions


Agenda

Executive summary



Capital ratio



Annexes


Source: internal data


Loans to customers analysis

23,107 23,064 21,27920,637 20,356 20,561 20,074 20,099 20,146

12.11 12.12 12.13 03.14 06.14 09.14 12.14 03.15 06.15 09.15

20,062

Quarterly trend (mln €)

Total gross loans by technical classification Total gross loans by business segment

0.3%

~ 80% of

total loan

book to

SMEs


Mortgages

45.8%

Npls

13.0%

Personal loans

2.9%

Financial leasing

3.3%

Current accounts

24.5%

Foreign loans

1.7%

Pool loans 2.3%

Loans CCG & CDP*

3.9%

Other operations

2.6%

* CCG: Cassa Compensazione e Garanzia CDP: Cassa depositi e prestiti

Commercial Loans (gross amounts)

Households

20.1%

Retail

14.2%

SME Corporate

38.9%

Other

5.4%

Corporate

21.4%




Focus on new loans

Loans to customers

(Gross amount-

outstanding)

3Q 2015 +72 mln

Individuals

Real estate

Manufacturing

Trade

Other

+ 5.2%

- 4.5%

+ 1.6%

+ 0.2%

+ 2.2%

3Q 2015 Change YoY Breakdown Individuals 589 mln 30.2% 3.08%

%

Fixed

Average

Rate

Mortgage 204 mln

2.84%

Amount

Average RateOther secured 263 mln

Unsecured 411 mln

Total amount 878 mln

1,467 mln of new loans disbursed in the period

+74.2% YoY

Of which net substitutions («surroghe»): 87 mln

-21.5%

Chg %

YoY

+135.4%

+121.2%

+57.5%

Amount Chg %

YoY

+106.9%In

div

idu

als

SM

Es

an

d

Co

rpo

rate

Change in % of Real Estate

on total Set.15/Dec.14

-1.5%




Sound growth in new lending

Gross new lending

€/1,000

1/1/2014-

30/9/2014

1,466,696

1/1/2015-

30/9/2015

842,026

+74.2%

New lending to SMEs and corporate

€/1,000

1/1/2014-

30/9/2014

877,890

1/1/2015-

30/9/2015

557,386

+57.5%

New lending to individuals

€/1,000

1/1/2014-

30/9/2014

588,806

1/1/2015-

30/9/2015

284,640

+106.9%

New Leasing

1/1/2015-

30/9/201531/12/2014

48,151

100,593

1/1/2014-

30/9/2014

+108.9%

31,300

+221.4%

Of which 53%

secured by

guarantee’s

scheme

(MCC,SACE,EIF,

ISMEA etc.) or by

immovable

properties

Average LTV ~

60% for new

residential

mortgages


~ 57.3% of loans in Lombardy

Well-diversified loans, both in terms

of industrial sector and individual

borrower

Average loan granted to real estate

and construction sectors

(“ATECO”) ~ 215k

Very conservative LTV (<50%),

both for households and SMEs



Loan portfolio diversification

Average EUR 86,000 per loan

Gross loan book breakdown by geography (%)

Toscana

1.9%Trentino Alto Adige 1.7%

Umbria 0.7%

Piemonte

3.8% Sicilia

15.3%

Marche

7.4%

Veneto 3.0%

Lombardia

57.3%

Valle d’Aosta 0.02%

Lazio 7.7%

Emilia Romagna

1.2%


Loan concentration % Total loans

Top 20 exposures 6.6%

LTV %(as of

30/09/2015)

Retail – Secured on real estate

property47.6%


property of which SME49.2%


property of which non SME 46.9%


Retail

banks


Doubtful loans analysis and cost of credit risk

Cost of credit risk

3Q14

2.06%

Carifano

0.89%

Credito

Siciliano

1.43%

Credito

Valtellinese

1.68%

Quarterly change in gross bad loans Quarterly change in gross unlikely to pay

94,175108,746

39,599

4Q143Q14

152,207

2Q14

186,595

1Q14

89,990 46,422

2Q15 3Q15

105,430142,596

4,23685,900

182,483

Quarterly change in gross past due Quarterly change in gross non - performing exposures

-52,7152Q15

-69,6393Q15

67,903

-69,379-243102,453

75,390

272,230224,346

203,116

151,15730,385

-43,055

250,700

1.59%

1Q15

37,699162,259

- 26.4%

+ 127.1%

3Q15

4Q143Q142Q141Q14 1Q15

4Q143Q142Q141Q14 1Q154Q143Q142Q141Q14 1Q15

2Q15

- 63.6%

2Q15

3Q15

3Q15



Net flow trend of NPL (gross amounts) in 3Q*

Change in NPL loans

- 60.8%

- 51.4%

Cost of credit risk at 159 bps (206 bps in 3Q 2014)

3Q 2012 3Q 2013 3Q 2014 3Q 2015

623,986699,691

340,100

866,918

* 01/01-30/09


Net NPL almost flat during the quarter. NPL ratio stable at ~ 18%


Asset quality

Credit risk profile (mln €) 30/09/2015 30/06/2015 31/03/2015 31/12/2014Chg% vs

Dec 201430/09/2014

Net Bad loans 1,220 1,196 1,160 1,102 + 10.7 1,052

Net Unlikely to pay 1,699 1,638 1,603 1,578* + 7.6 1,588*

Net Past due 439 500 549 512 - 14.2 569

Total net non-performing

exposures3,358 3,334 3,312 3,192 + 5.2 3,209

Net non-performing exposures/ Loans

to customers17.8% 17.9% 17.8% 16.8% 16.3%

* Sum of Substandard loans and Restructured loans



Asset quality

Coverage Ratios 30/09/2015 31/12/2014 30/09/2014

Bad loans 55.6% 56.0% 55.3%

Unlikely to pay* 22.6% 21.6% 15.1%

Past due 8.8% 9.6% 6.6%

Non-performing exposures Coverage Coverage Bonis

36.8%

December

2014

37.2%

June

2015

37.6% 0.80%

December

2014

0.81%

June

2015

0.76%

85,4% 86,1% 85,0% 84,1% 80,0% 78,7% 78,2% 76,5% 73,8%

Share of loans assisted by guarantees** on total net NPLsData as at 31/12/2014

Creval Peer1 Peer2 Peer3 Peer4 Peer5 Peer6 Peer7 Peer8

Peer average*: 80.9%

* Peers include ISP, UCG, MPS, UBI, BPER, BPM,

Carige and BP .

** real collateral

Source: FY 2014 Annual Reports. Aritmetic mean

March

2015March

2015

* 2014 - Sum of Substandard loans and Restructured loans

NPLs Coverage

up by 50 bps in

Q3

September

2015September

2015

38.1% 0.73%


Outsourcing


NPLs management model

Past due days0 30 90

Administrativ

e category

Managerial

category

PERFORMING PAST DUE SUBSTANDARD RESTRUCTURED BAD LOANS

GREEN

SKY-BLUE

YELLOW ORANGE RED SUBSTANDARD RESTRUCTURED BAD LOANS

Max 270

Owner by segment

Household /

Retail

SME / Corporate

Retail /

Household

manager

Corporate

manager

Retail /

Household

manager

Corporate

manager

Phone Collection Home collectionCredit

Department

Credit Manager /

branch managerCredit Manager

Credit Manager/

Credit Department

Credit

Department

Credit

Department

Bad Loans

department

(large ticket)

UNLIKELY TO

PAY

• Specialization needed for each different status / category

• Leverage on specialized partner for reducing costs and improving

performance

• Industrial model for NPL management, upgraded over time

Non Core Unit


Agenda

Executive summary



Capital ratio



Annexes


mln € 30/09/2014 30/09/2015 Chg.%

Deposits 559 486 -13.0%

Time deposits 2,350 1,221 -48.1%

Current accounts 12,389 12,892 +4.1%

Securitizations 735 520 -29.3%

Wholesale bonds 763 160 -79.0%

Retail Bonds 3,635 3,355 -7.7%

Deposit certificates 123 67 -45.9%

Deposits CCG & CDP 317 2,688 n.s.

Other 245 167 -31.8%

DIRECT FUNDING 21,116 21,556 +2.1%



Direct deposits

18,150 19,229 19,480 19,654 19,028 18,994 19,655 19,222 19,041 18,534 18,312 18,097

12.09 12.10 12.11 12.12 12.13 03.14 06.14 09.14 12.14 03.15 06.15 09.15

-1.2%

-0.3%

Quarterly trend (mln €) Retail funding

Composition Direct Funding

-21.5%

+2.1%

+10.0%

30/09/2015

75% 81%

25%

30/09/2014

19%

Deposits due to customersSecurities issued

Remix from customer deposit to assets under management and liquidity



Bonds by maturities and ECB funding

Retail bonds – 2015 Q3 (Mln €) Wholesale funding – 2015 Q3

H2 2015 - 2017 Maturities* (Mln €) ECB funding Creval 30 September 2015 (Mln €)

541

304

- 237 mln

Issues

2015

Maturities

2015

735*687*

Issues

2015**

Maturities

2015** Net PP

550

Securitisation

Wholesale

* As at 1 December 2015

and net private placement

Retail

Wholesale

TLTRO

1,500

50

68 1,151818

2016 20172015 H2

Securitization’s nameOutstanding Notional

30/09/2015

Net Placement Cost (DM) over

EU3M

Quadrivio RMBS 2011 S.r.l.-A1 193,189,689 EU3M + 115 bps

Quadrivio RMBS 2011 S.r.l.-A2 180,000,000 EU3M + 116,7 bps

Quadrivio SME 2014 S.r.l.-A2A 83,771,929 EU3M + 180 bps

Quadrivio SME 2014 S.r.l.-A2B 46,074,561 EU3M + 180 bps


1d 2d 3d 4d 5d 2w 3w 1m 2m 3m

Net balance of cumulative

expiring positions 103 -110 -179 -363 -332 -678 -725 -1,392 -1,898 -2,217

Counterbalancing

capacity3,344 3,613 3,678 3,769 3,769 4,065 4,094 4,305 4,664 4,835

Net balance of overall

liquidity 3,447 3,503 3,500 3,407 3,438 3,387 3,369 2,913 2,766 2,618


Liquidity position

Commercial loans / Retail funding

108.4%

31/12/2014

105.4%

30/09/2014

107.0%

30/06/2014

103.6%

31/03/2014

108.7%

+2.6%

Short-term liquidity position – September, 29th 2015 (€/1,000)

31/03/2015 30/06/2015

109.6%

30/09/2015

111.3%

LCR as at

30 September 2015

~ 100%

NSFR as at 30 September

> 100%


Mln € 30/09/2015 30/06/2015 31/03/2015 31/12/2014

Debt

Instruments4,935 5,351 7,295 6,662

Equity

Instruments113 118 99 86

OEIC Units 54 50 43 42


Securities portfolio

Breakdown by accounting portfolio

AFS reserve as at 30 September +32.4 mln €

AFS reserve on Govies, as at 30 September, ~ -10.2 mln €

AFS

98.3%

HFT

1.7%

Breakdown of AFS portfolio

Debt

Instruments

96.8%Equity

Instruments

2.2%

OEIC

Units

1.0%

Current Average Duration of AFS Portfolio 2.83

BTP; 70.2%

CCT; 16.5% BOT; 3.0%

Other equieties;

2.7%

Other bond; 7.6%

Mln € 30/09/2015 30/06/2015 31/03/2015 31/12/2014

Chg.%

Vs Dec

2014

HFT

Portfolio 89 115 412 62 43.5%

AFS

Portfolio 5,101 5,519 7,437 6,790 -24.9%

HTM

Portfolio - - -

AFS reserve as at 30 June -48.6 mln €

AFS reserve on Govies, as at 30 June, ~ -94.6 mln €



Indirect deposits analysis


+7.9%

11,635 11,891 11,925 11,963 12,912 12,28012,065

+0.3%+0.3%+2.2%

31/12/201430/09/201430/06/201431/03/2014

mln € 30/09/2014 30/09/2015 Chg.%

Funds & Sicav 1,895 2,290 +20.8%

Custody 6,147 5,513 -10.3%

Individual accounts 2,156 2,217 +2.8%

Insurance 1,727 2,045 +18.4%

Total 11,925 12,065 +1.2%

Composition

+13.4%

-10.3%

+ 1.2%

30/09/2015

46%

54%

30/09/2014

52%

48%

CustodyAuM

Development of the strategic

partnership with ANIMA SGR

+1.2%

31/03/2015

- 4.9%

30/06/2015

- 1.8%

30/09/2015

http://www.google.it/url?sa=i&source=images&cd=&cad=rja&docid=9xWjUtJim1scfM&tbnid=MB7ykjvGFI7sxM:&ved=0CAgQjRwwAA&url=http://it.wikipedia.org/wiki/File:Logo_AnimaSgr.jpg&ei=fboAUunbIomJ4gTus4DwDQ&psig=AFQjCNGj-LAzGL2sofFA1CLFYbM2xd_ElA&ust=1375865853606564

http://www.google.it/url?sa=i&source=images&cd=&cad=rja&docid=9xWjUtJim1scfM&tbnid=MB7ykjvGFI7sxM:&ved=0CAgQjRwwAA&url=http://it.wikipedia.org/wiki/File:Logo_AnimaSgr.jpg&ei=fboAUunbIomJ4gTus4DwDQ&psig=AFQjCNGj-LAzGL2sofFA1CLFYbM2xd_ElA&ust=1375865853606564




Insurance, credit cards, custody are evolving positively

Insurance business – gross flow

€/1,000

3Q 2014

456,838

3Q 2015

347,559

+31.4%€/1,000

3Q 2014

443,326

3Q 2015

+66.0%

Non life insurance – collected premiums

3Q 2014

11,803

3Q 2015

9,575

+23.3%

267,121

Net flow AUM

€/1,000


+2.8%


Breakdown indirect deposit

-7.9%

30/9/2015

2,020

1,294

2,125

74

30/9/2014

2,079

1,405

2,558

105

-2.9%

-16.9%

-29.5%

-10.3%

Other Bond

EquityGovernment Bonds

Breakdown Custody (mln €) Breakdown Individual accounts (mln €)

Breakdown Funds & Sicav* (mln €)

* At 30/09/2015

** including funds not of our placement

+35.0%

191

137259

679

203

54357

837

-6.1%

-27.5%

-18.9%

Monetary

Flexible

705951

+155.5%

Bond Balanced

Equity

30/9/2014 30/9/2015

30/9/2015

357

1,079

361

195

30/9/2014

306

928

195

128

+20.8%

Monetary

FlexibleBond

BalancedEquity

Other**

150148

157181

+16.3%

+16.7%

+85.1%

+24.2%

-17.1%

+15.6%

Reduction in

monetary / bond

to

flexible / balanced

Reduction in

monetary funds to

equity / flexible /

bond

Reduction in

government bond

to AUM


Agenda

Executive summary



Capital ratio



Annexes


Indicator 30/09/2015 30/06/2015 31/03/2015 31/12/2014

Loan Risk

weighted* 81.1% 82.7% 83.5% 83.5%

RWA /Assets 60.2% 60.8% 56.7% 57.7%

Capital ratio

Capital ratios evolution

Capital ratios evolution – phased-in calculation

31/12/2014

14.0%

11.0%

~ +70bps

Total capital ratio

Fully loaded calculation at

September 30th, 2015 (considering the “SME supporting factor”):

CET 1 Ratio

11.8% (11.1% at 31.12.2014)

Tier 1 Ratio

11.8% (11.1% at 31.12.2014)

Total capital ratio

13.7% (13.7% at 31.12.2014)

Leverage ratio

Phased-in calculation

6.7% (Transitional date at

30.06.2015)

11.0%

30/06/2015

13.8%

11.5%11.5%

Capital ratio 30/09/2015 30/06/2015 31/03/2015 31/12/2014

TIER 1 (mln €) 1,895 1,892 1,845 1,825

RWA (mln €) 16,176 16,450 16,678 16,635

TIER 1 RATIO 11.7% 11.5% 11.1% 11.0%

TOTAL CAPITAL RATIO 13.8% 13.8% 13.6% 14.0%

Common Equity Tier 1 ratio Tier 1 ratio

Requirements 30/09/2015 30/06/2015 31/03/2015 31/12/2014

Credit 90.7% 90.9% 90.8% 91.0%

CVA 0.2% 0.2% 0.2% 0.2%

Market 0.1% 0.1% 0.4% 0.1%

Operations 9.0% 8.8% 8.7% 8.7%* RWA related to credit risk / Loans to customers at the end of the period (net CCG)

31/03/2015

13.6%

11.1%11.1%

30/09/2015

13.8%

11.7%11.7%

Data as of 30/09/2015 estimated


Agenda

Executive summary



Capital ratio



Annexes


352

209656


Operating income development

Operating

income

Other net

income

16

Trading

income

66

Div. & profits on

inv. in associated

companies

13

Net feesNII

Mln €

-2.9% +5.7% -40.7% +9.8% -6.4%Chg %

2015 – 2014

85.6% of revenues from

core business (NII + Fees)

Div. Invest &

Trading

12.0%Other net

income

2.4%

Interest

margin

53.7%

Net fees &

comm.

31.9%

-11.9%



Focus on interest income

Quarterly figures

€/1,000

+0.4%

114,584

-5.1%

127,247

+1.8%

120,730

-5.1%

4Q143Q142Q141Q14

YoY analysis

116,601

1/1/2014-30/9/2014

351,894362,561

-2.9%

Commercial spread trend * (2013-2015)

2.12% 2.50%1.96%

Jun 13 Dec 13 Jun 14

2.51%

Dec 14

+ 58 bps

1Q15

117,051

1/1/2015-30/9/2015

2.59%

Mar 15

-10.1%

2Q15

120,482

+2.9%

2.58%

Jun 15

3Q15

114,361

-5.1%

2.54%

Sep 15

* Spread as of at the end of the quarter




Commercial interest margin

Commercial interest margin Carry trade and finance *

11,631

109,099

13,644

113,603

9,848

104,736 102,976

13,625

103,147

13,904

106,500

13,982

105,404

8,958

4Q143Q142Q141Q14 1Q15 2Q15 3Q15

127,247120,730

114,584 116,601 117,051 120,482114,362

Substantially stable commercial margin. Reduction of NII from carry

trade and finance due to the reduction in stock of Government bond

portfolio (trading profit realized during the quarter)

* Interest financial assets – Interest due to central counterparties – Interest term deposits with central bank – hedging results




465,776559,258

-16.7%

Interest loans

to customers€/1,000

1/1/2014-

30/9/2014

1/1/2015-

30/9/2015

65,80861,141

+7.6%

Interest income

financial assets

€/1,000

1/1/2014-

30/9/20141/1/2015-

30/9/2015

1,6834,461

-62.3%

Interest

loans bank

€/1,000

1/1/2014-

30/9/20141/1/2015-

30/9/2015

1,49232

n.s.

Other Interest

income

1/1/2014-

30/9/2014

1/1/2015-

30/9/2015

72,083132,340

-31.9%

Interest due

to customers€/1,000

1/1/2014-

30/9/2014

1/1/2015-

30/9/2015

2,8326,740

-58.0%

Interest due to bank

€/1,000

1/1/2014-

30/9/20141/1/2015-

30/9/2015

89,146105,776

-15.7%

Interest

securities issued

€/1,000

1/1/2014-

30/9/20141/1/2015-

30/9/2015

18,80217,475

+7.6%

Other interest

1/1/2014-

30/9/2014

1/1/2015-

30/9/2015

Very important commercial actions aimed to

reduce the cost of the sight and time deposits



Cost of retail funding

Banking system Data Source: Bank of Italy

Creval Data Source: Internal Data

Average cost (basis points) - sight deposits book

Difference between Creval’s cost and system

average: -64% (Jan 14 – Aug15)

Strong repricing measures taken in the first quarter

Further actions to be implemented in H2, already effective

38 38 39 37 37 36 32 32 31 27 27 30 25 23 23 21 20 20 19 19

9790 92 92 91 90 87 88

8175 73 72

56 53 50 47 44 43 42 40 38

0

20

40

60

80

100

120

Ja

nu

ary

Fe

bru

ary

Ma

rch

Apri

l

Ma

y

Ju

ne

Ju

ly

Aug

ust

Sep

tem

be

r

Octo

ber

Novem

be

r

Decem

be

r

Ja

nu

ary

Fe

bru

ary

Ma

rch

Apri

l

Ma

y

Ju

ne

Ju

ly

Aug

ust

Sep

tem

be

r

Italian Banking System Creval2014 2015

+59 bp

+19 bp


2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

TIME DEPOSIT 12 MESI

0,78 0,70


Cost of retail funding

Average cost - new time deposits by quarter

Downward revision of the rate / limits for new deposits issued by branches

Strict control in terms of funding spread associated to new deposits

New commercial target / reporting with great focus on value creation (NII)

1,93

1,79

1,48

1,04

0,85

TIME DEPOSIT 12 MESI down from 193 bp (2014 Q1) to 70 bp (-64%)



Focus on net fees

Net fees quarterly trend

+6.2% -6.7%

4Q143Q142Q14

+2.1%

65,340

-1.7% +8.5%

66,476

€/1,000

Net fees breakdown – YoY

+1.1%

1/1/2015-30/9/2015

64,380

45,178

43,424

56,166

1/1/2014-30/9/2014

53,353

44,704

45,423

54,348

+20.7%

-4.4%

+3.3%

+5.7%

Loans and others

Payment and collection services

Asset management, trading and

consulting services

Current account

70,904

31.3%21.6%

19.9%27.2%

1Q15

68,521

-3.4%

2Q15

72,759

3Q15

67,868


Agenda

Executive summary



Capital ratio



Industrial Plan - update

Annexes


656 217

282

*Operating expenses annualized /total asset


Operating result and cost/income development

27

Other admin.

Expenses

130

Personnel

expenses

Operating income Net operating

margin

Amortization

Mln €

-6.4% - 0.7% -10.9%-3.8% -4.2%

Cost Income ratio Cost to asset ratio * Operating expenses

+2.2%

1/1/2015-

30/9/2015

57.0%

1/1/2014-

30/9/2014

54.8% 383,963

-2.7%

373,460

+0.05%

1.85%1.80%

€/1,000

Chg %

2015 - 2014

1/1/2015-

30/9/2015

1/1/2014-

30/9/2014

1/1/2015-

30/9/2015

1/1/2014-

30/9/2014



Personnel expenses and administrative expenses

Personnel expenses Number of employees

€/1,000

1/1/2014-

30/9/2014

216,836

1/1/2015-

30/9/2015

225,310

-3.8%

4,330 4,119

- 211

30/09/2014 30/09/2015

Front to back Administrative expenses

€/1,000

130,051

-0.7%

130,906

71.3%

30/09/201530/09/2014

72.4%

1/1/2014-

30/9/2014

1/1/2015-

30/9/2015


5.73.0

Disposal of

Finanziaria San

Giacomo to Cerved

Group

The amount includes

a provision of 6.2

mln for SRF and DGS

~


Net profit development

Value

adjustments

225.2

Net

operating

margin

282.2

Tax for

the

period

5.7

MinoritiesNet incomeIncome

before tax

Mln €

-10.9%

Chg % 2015 - 2014

-26.7% +24.8% +165.3% -37.3% n.s.

51.3 62.720.1

Valued adjustments

-26.7% YoY

Provision

& profit on

disposals

+38.6% n.s.

Investment

disposal


Press release 19 June 2015Credito Valtellinese S.c., (…) signed an agreement for the sale of 85.79% of the share capital held in Istituto Centrale delle

Banche Popolari Italiane S.p.A. to Mercury Italy S.r.l. The consideration will be based on a valuation of 100% of the share

capital of ICBPI of €2,150m or €2,000m depending on the structure of the transaction between two alternatives already

identified.

Credito Valtellinese comunicates:

(i) that it undertook to sell a 18.39% of ICBPI share capital and, assuming (…) a proportional allocation of the price amongst

the sellers, the transaction would imply on a consolidated basis – considering the financial statements as at 31 March 2015

– an economic effect (…) estimated in €217m and €247m respectively. The consolidated Common Equity Tier 1

ratio (“Phased – in”) (…) would increase of 165 and 183 basis point, respectively (…).

(ii) that upon the sale above it will hold a shareholding equal to 2% of ICBPI’s share capital.


Equity investments

Company Company’s activities

Share of

capital held by

the group (%)

Carrying amount

30.09.2015 – Mln €

(CA)

Earning 2014

Pro-rate

(E)

Return on

investment

(E/CA)

ICBPIBank

(Holding of ICBPI Group)20.4% 196.7 19.6 10.0%

GLOBAL

ASSISTANCE

Insurance and

reinsurance company40.0% 4.0 0.8 19,9%

Major investments – EQUITY INVESTMENTS PORTFOLIO

Major investments – AVAILABLE FOR SALE FINANCIAL ASSETS PORTFOLIO

Company Company’s activities

Share of capital

held by the

group (%)

Carrying amount

30.09.2015 – Mln €

ANIMA HOLDINGAsset management Company

(Holding of Anima Group)2.8% 64.8

ALBA LEASING Leasing company 8.1% 33.0

BANCA POP.CIVIDALE Bank (Holding of BPC Group) 1.0% 3.2


Agenda

Executive summary



Capital ratio



Annexes


12,065

21,556

Annexes

Consolidated Balance Sheet Data

+2.8%

Total deposits

32,709

Indirect deposits

11,963

Direct deposits*

20,746

Loans to customers *

19,005 18,903

30/09/201531/12/2014

30 September 2015 – 31 December 2014 (mln €)

+3.9%-0.5%

Balance sheet structure 30/09/2015 31/12/2014

Indirect deposits from customers / Total deposits 35.9% 36.6%

Direct deposits from customers / Total liabilities 80.3% 72.0%

Customer loans / Direct deposits from customers 87.7% 91.6%

Customer loans / Total assets 70.4% 66.0%

33,621

+0.9%

*the amounts include components referring to central counterparties and institutionals


Annexes

Strengthening “Customer base”

975k customers

Cross selling ~ 4.3

Retention rate* ~ 95.9%

*Source: customer satisfaction survey - households

Sales results as of 30/09/2015

Current accounts ~ + 9,100

Debt Cards ~ + 12,800

Car insurance ~ 14,500

Consumer Finance (Compass) – new loans ~ 36 mln

Net flow AUM (mainly mutual funds) ~ 443 mln

Bancassurance flow ~ 457 mln

New loans to individuals ~ 589 mln +103.2% Y/Y

+66.0% Y/Y



Annexes

Loans to customers analysis

20,98922,722 23,107 23,064

21,279 20,637 20,356 20,561 20,074 20,099 20.062 20.146

120 163 185 196

412 341 730 834 950 571 658 937

12.09 12.10 12.11 12.12 12.13 03.14 06.14 09.14 12.14 03.15 06.15 09.15

Commercial Loans (gross value) Other Loans (gross value)


- 0.1%


30/09/2015Gross

amount

Impairment

losses

Carrying

amount

Coverage

ratio

Bad loans 2,746 - 1,526 1,220 55.6%

Unlikely to pay loans 2,195 - 496 1,699 22,6%

Past due exposures 481 - 42 439 8.8%

Total impaired loans 5,422 - 2,064 3,358 38.1%

Performing loans 15,659 - 114 15,545 0.73%

Total loans and receivables with customers 21,081 - 2,178 18,903

Annexes

Asset quality details

(Mln €)


Source: internal data.

Collateral includes real estates and securities at market value. Real estate values represented by 1st and 2nd mortgages.

Collaterals are evaluated considering lowest value between credits and guarantee amount, in case of loans fully or partly covered by guarantees

Personal guarantees are excluded

Annexes

Bad loans analysis – including collateral

Total coverage ratio

109%

Real estate collateral

(market value)

51%

2%

Cash coverage Ratio

56%

Bad loans – Total Coverage Ratio (%)

109%

+2%

15-Q314-Q3

107%

Cash coverage

related to bad

loans write-off


Annexes

Unlikely to pay loans analysis

Source: internal data.

Collateral includes real estates and securities at market value. Real estate values represented by 1st and 2nd mortgages. Personal guarantees represent every other kind of collateral as

bank guarantees, backing transactions and other credit commitments.

Both collateral and personal guarantees are evaluated considering lowest value between credits and guarantee amount, in case of loans fully or partly covered by guarantees.

Unlikely to pay Loans – Total Coverage Ratio (%)

Total coverage ratio

52%

Cash coverage

Ratio

Personal

Guarantees

22%

72%

Real estate collateral

(market value)

146%


Annexes

Non performing exposures (Gross amount)

Bad loans Unlikely to pay

31/03/201531/12/2014

2,503

30/09/2014

2,352

Past due Non-performing exposures

2,598

31/03/201531/12/2014

2,043

30/09/2014

2,0131,870 2,089

551 481

31/03/201531/12/2014

566

30/09/2014

609 604

31/03/201531/12/2014

5,082

30/09/2014

4,8315,245

+251 +163

2,706

30/06/2015 30/06/2015

30/06/2015

5,346

+101

30/06/2015

30/09/2015

2,7462,195

30/09/2015

30/09/2015

+76

5,422

30/09/2015

(Mln €)


Annexes

Reclassified balance sheet – the quarterly

Assets 30/09/2015 30/06/2015 31/03/2015 31/12/2014 30/09/2014

Cash and cash equivalents 151,563 151,760 159,122 194,289 164,436

Financial assets held for trading 89,049 114,593 412,383 61,787 65,195

Available-for-sale financial assets 5,101,448 5,519,379 7,436,450 6,789,606 5,723,495

Held-to-maturity investments - - - - -

Loans and receivables with banks 793,524 709,547 779,573 839,489 813,169

Loans and receivables with customers 18,903,168 18,590,813 18,614,292 19,004,863 19,672,478

Equity Investments 31,248 30,303 206,654 200,797 196,039

Property, equipment and investment property and

intangible assets 661,188 657,695 658,257 663,968 802,296

Non-current assets and disposal groups held for sale176,947 176,947 3,158 3,191 -

Other assets 951,793 1,111,395 1,167,989 1,055,566 1,027,921

Total assets 26,859,928 27,062,432 29,437,878 28,813,556 28,465,029

Liabilities and Equity 30/09/2015 30/06/2015 31/03/2015 31/12/2014 30/09/2014

Due to banks 1,834,858 1,759,167 2,401,288 4,837,734 3,575,676

Direct funding from customers 21,556,385 21,898,623 23,297,163 20,745,569 21,116,472

Financial liabilities held for trading 2,483 3,450 4,021 3,233 4,115

Hedging derivatives 286,227 263,292 359,525 308,718 270,567

Liabilities associated with disposal groups - - 736 573 -

Other liabilities 868,430 922,617 937,575 635,058 906,795

Provisions for specific purpose 203,369 200,087 302,059 258,471 212,554

Equity attributable to non-controlling interests 4,071 4,269 4,250 4,454 4,690

Equity 2,104,105 2,010,927 2,131,261 2,020,106 2,374,160

Total liabilities and equity 26,859,928 27,062,432 29,437,878 28,813,556 28,465,029


Annexes

Reclassified consolidated income statement

Income statement Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014

Net interest income114,361 120,482 117,051 116,601 114,584

Net fee and commission income 67,868 72,759 68,521 70,904 65,340

Dividends and similar income1 1,989 - 24 -

Profit (loss) of equity-accounted investments 851 5,847 4,244 7,048 5,705

Net trading and hedging income (expense) and profit (loss)

on sales/repurchases 15,157 15,771 34,949 7,540 21,223

Other operating net income4,612 6,805 4,441 1,439 4,598

Operating income202,850 223,653 229,206 203,556 211,450

Personnel expenses-72,070 -70,538 -74,228 -116,485 -76,292

Other administrative expenses-42,204 -47,654 -40,193 -37,824 -42,502

Depreciation/amortisation and net impairment losses on

property, equipment and investment property and intangible

assets-9,044 -8,857 -8,672 -19,801 -9,334

Operating costs-123,318 -127,049 -123,093 -174,110 -128,128

Operating profit 79,532 96,604 106,113 29,446 83,322

Net impairment losses on loans and receivables and other

financial assets -66,859 -90,803 -67,512 -349,670 -94,351

Net accruals to provisions for risks and charges -1,858 -3,855 - 12 -1,033

Value adjustments of goodwill- - - -131,344 -

Net gains (losses) on sales of investments 36 43 -37 129 14,488

Pre-tax profit from continuing operations 10,851 1,989 38,564 -451,427 2,426

Income taxes1,809 6,330 -13,884 120,883 2,267

Post-tax profit from continuing operations 12,660 8,319 24,680 -330,544 4,693

Gains from assets held for sale- 20,347 -277 -1,125 -

Profit for the period attributable to non-controlling interests -783 -1,172 -1,030 -616 -638

Profit for the period11,877 27,494 23,373 -332,285 4,055


Disclaimer

This document has been prepared by Credito Valtellinese for information purpose only and does not constitute a public offer

under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial

instruments or any advice or recommendation with respect of such securities or other financial instruments.

The information, opinions, estimates and forecasts contained herein have not been independently verified. They have been

obtained from, are based upon, sources that company believes to be reliable but makes no representations (either express or

implied) or warranty on their completeness, timeliness or accuracy.

The document may contain forward-looking statements, which are therefore inherently uncertain. All forward-looking statements

rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to

significant risks and uncertainties, many of which are outside the company’s control. There are a variety of factors that may

cause actual results and performance to be materially different from the explicit or implicit contents any forward-looking

statements and thus, such forward-looking statements are not a reliable indicator of future performance. The company

undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information,

future events or otherwise, except as may be required by applicable law. The information and opinions contained in this

Presentation are provided as at the date hereof and are subject to change without notice.

Pursuant the consolidated law on financial intermediation of 24 February 1998 (article 154-bis, paragraph 2), Simona Orietti, in

her capacity as manager in charge of financial reporting declares that the accounting information contained in this Presentation

reflects the group’s documented results, financial accounts and accounting records.


Consolidated Results as at

September 30th 2015

10th November 2015

Miro FiordiCEO, Credito Valtellinese


Ugo Colombo Head of Planning, Control and General Affairs

Tel. +39 0342522578

Mob. +39 3355761968

Email [email protected]

Tiziana Camozzi Head of Investor Relations

Tel. +39 0280637471

Mob. +39 3346700124

Email [email protected]

Contacts for Investor and Financial Analysts

Documents

Consolidated Results as at September 30 2015 Miro Fiordi€¦ · March 2015 March 2015 * 2014 - Sum of Substandard loans and Restructured loans NPLs Coverage up by 50 bps in Q3 September