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A p r i l 2 0 0 3

2 0 0 2 R e s u l t s 2 0 0 3 - 2 0 0 5 B u s i n e s s P l a n. A p r i l 2 0 0 3. Changes in the Group composition. BANCA CR FIRENZE (Parent Company). CR CIVITAVECCHIA. CR PISTOIA e PESCIA. CR ORVIETO. CR MIRANDOLA. 51.0%. 73.6%. 73.8%. 51.0%. Liberamente Network.

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A p r i l 2 0 0 3

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  1. 2 0 0 2 R e s u l t s 2 0 0 3 - 2 0 0 5 B u s i n e s s P l a n A p r i l 2 0 0 3

  2. Changes in the Group composition BANCA CR FIRENZE (Parent Company) CR CIVITAVECCHIA CR PISTOIA e PESCIA CR ORVIETO CR MIRANDOLA 51.0% 73.6% 73.8% 51.0% Liberamente Network Arval Italia Centrovita Findomestic Infogroup Datacentro 51.0% 50.0% 22.5% 100.0% 100.0% Centro Telemktg. Centro Leasing Consumer Credit Centro Factoring Citylife Financial Planners 50.0% 41.0% 97.1% 46.0% Cerit Perseo Finance CR Firenze Gest. Int.le 100.0% 80.0% 60.0% Service Companies Product Companies Specialized units provided by Sanpaolo IMI and BNP Paribas 2

  3. 2002 Consolidated results 20022001 PFChange INTEREST MARGIN 588.4 568.8 + 3.5 % Euro mn Dividends 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 % of which net commissions 230.2 244.7 - 5.9 % Trading 8.4 13.8 -38.9 % Equity investments 15.0 10.0 +50.0 % TOTAL INCOME 954.8 933.6 + 2.3 % 3

  4. 2002 Consolidated results 2002 2001 PF Change Ex FINDOMESTICBanca CR Firenze TOTAL COSTS 659.1 638.5 + 3.2 % +1.4 %- 1.7 % Euro mn Personnel expenses 370.1 364.5 +1.5 % FLAT- 1.5 % Other costs 223.7 210.1 +6.5 % +3.9 % - 3.5 % Depreciation 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 92.2* - 10.5 % 4 * 2001 net income benefited by Euro 6.4 mn transfer from General Banking Risk reserve

  5. Total Financial Assets 20022001Change DIRECT FUNDING 12,340 11,058 + 11.6% Euro mn 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% of which Discretionary accs. 1,948 2,340 - 16.7% Mutual funds 4,471 4,089 + 9.3% Insurance Products 1,779 1,598 +11.3% TOTAL FINANCIAL ASSETS 26,296 25,150 + 4.6% 5

  6. 25% 16% 16% 10% 7% 7% 6% 6% 5% 2% Textile Building Others Families Commerce Agricol.& food Industrial prod. Hotels & transp. Mineral & Energy Communication Customer loans - Findomestic Customers loans • Growth, diversification and balance 6 Portfolio composition: by segment, average - by sector, B CR Firenze

  7. Euro mn Gross NPLs Net NPLs cover ratio Net NPLs Net NPLs/Net loans Gross NPLs/Gross loans Credit quality • Close loan quality monitoring 7

  8. 90 45 Euro mn 0 M J S D M J S D M J S D 2000 2001 2002 Total recovered Scenario 1 Scenario 2 Scenario 3 Scenario 4 Credit quality - Perseo • 1999 NPL securitisation recoveries: far better thenthe best case scenario 8

  9. 2003-05 Business Plan 9

  10. Index 1.21 Banca CR Firenze Group Index 0.97 Index 1.54 Index 1.15 Competitive positioning • Comparison with other regional banks shows there is no local roots advantage 10

  11. Pistoia Pistoia Firenze Firenze Arezzo Grosseto Arezzo Terni Massa 11.2%** Prato 8.6%** Grosseto Pisa Terni Lucca Siena Viterbo Lucca Massa Livorno Siena Perugia Modena Pisa Viterbo Modena Prato Perugia Mantova Mantova Livorno Funding Lending Competitive positioning • Highly diversified market share and penetration index in the different local areas Much room for improvement 11 * Market share / Employee market share - as at 30/09/02 ** B.CR Firenze Group average

  12. Performance analysis • Corporate macro-segment shows a negative performance 12 * B. CR Firenze - Contribution to commercial banking net income - 2002

  13. 656,000 Mass Market 140,000 Affluent 85,000 Small Business C U S T O M E R B A S E 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 CORPORATE CENTERS PRIVATE BKG. CENTERS RETAIL BRANCHES 15,000 Corporate 4,000 Private Bkg 13

  14. Retail Division Targets and Actions F O C U S O N • Industrialization of marketing actions (CRM) • Packaging of offer • Reduction of service costs FAMILY SMALL BUSINESS • Further customization of relationship • Increase in cross- and up-selling • Continuous development of financial planners network AFFLUENT 14

  15. 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

  16. 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

  17. 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

  18. Corporate & Private Bkg. Division Targets and Actions F O C U S O N • Customization of relationship and Client Plan introduction • Monitoring of credit quality • Increase in penetration and focusing on areas with great development potential CORPORATES • New service model: dedicated portfolio managers • Dedicated offer development • Sinergies with Corporate segment PRIVATE BANKING 18

  19. Targets and Actions CORPORATES BOLOGNA Service model Firenze Ovest Sesto F.no Firenze Est Prato Avenza Montevarchi Viareggio Arezzo Pisa-Livorno Dedicated marketing structure Perugia Santa Croce Top foreign trade advisory Empoli Siena Leading role of portfolio managers Grosseto Client Plan introduction 12 Corporate Centers + 2 Aid points 120 portfolio managers 40 specialized consultants 19

  20. Targets and Actions CORPORATES Profitable capital allocation Implementation of Internal Rating system Fine-tuning of the present pricing method • Risk-adjusted pricing Switch to customers with higher credit standing and lower risk/profitability ratio Pricing Target curve Spread High Low Risk (Internal Rating) 20

  21. Corner Sesto F.no Firenze Ovest Firenze Est Prato Corner Avenza Montevarchi Viareggio Arezzo Corner Pisa-Livorno Corner Santa Croce Corner Perugia Empoli Siena Corner Grosseto 8 Investment Centers and 6 Corners at the Corporate Centers 47 portfolio managers Targets and Actions PRIVATE BANKING Service model Dedicated marketing structure Investment Centers Leading role of portfolio managers Dedicated Personal Financial Planning 21

  22. 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

  23. 2003 - 05 TARGETS 23

  24. + 22% CAGR Target line Base line EPS 2003-05 • The new marketing model will bring important improvement in profitability 24

  25. +12.1 % -28.8 %* +36.7 % 624.0 92.8 +25.0 % +4.2 % 43.9 18.5 +16.2 % 118.3 +21.2 % +15.6 % 103.4 +15.3 % 14.0 88.8 144.3 Corporate Center Shareholdings Private Banking Small Business TOTAL INCOME Finance Corporate Retail Affluent 2002 total income 2005 total income increase 2002 & 2005 total income breakdown • Increase in profitability from every segment • Corporate macro-segment will reach a positive contribution 25 * Negative performance due to 2002 Eptaconsors extraordinary dividend

  26. ROE Cost / Income ROE and Cost/Income • Net growth in overall profitability • Business plan implementation costs will have an impact mainly in 2003 26

  27. Costs breakdown to 2005 2002 2005ChangeFINDOMESTICB. CR Firenze CAGRExcluded TOTAL COSTS 659.1 726.0 + 3.2% +1.5 %+1.7 % Euro mn 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 % 27

  28. 2 0 0 2 R e s u l t s 2 0 0 3 - 2 0 0 5 B u s i n e s s P l a n A p r i l 2 0 0 3

  29. Back-up slides 28

  30. Capital ratios 2002 2001Change TIER 1* 896.5 785.6 + 14.1% Euro mn TIER 2 608.5 454.1 + 34.0% Deductions 114.5 124.0 - 7.6% REGULATORY CAPITAL1,390.4 1,115.7 + 24.6 % SOLVENCY RATIO9.8% 8.3% + 150 bp TIER 1 RATIO6.2% 5.7% + 50 bp 29 * Core capital - No preference shares issued

  31. 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% Macroeconomic scenario 30 Prometeia, December 2002

  32. 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 Personnel expenses: +1.4% CAGR Banks’ headcount reduction 31

  33. Findomestic Banca3.97 BNL 3.27 Fiatsava 2.92 Destsche Bank Prestitempo 2.24 Agos Itafinco 2.04 2002 new business volume 2003 New business 1.12% 125 0.95% 118 2001 2002 2001 2002 NPLs ratio Cover ratio Vehicles Home appliances Personal Loans Revolving Home appliances Revolving cards 2003 new business trend Personal loans Vehicle financing Findomestic Banca – Consumer credit 32

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