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BPVi Group - Banca Popolare di Vicenza

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Banca Popolare di Vicenza
Company profile
Last update – November 2014
Disclaimer
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Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements that are based on third party
sources and involve known and unknown risks and uncertainties. Forward-looking statements contained in this presentation regarding past trends or
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forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking
statements, which speak only as of the date of this presentation. Any decision to purchase securities in the context of an offering of securities, if any, should be
made solely on the basis of information contained in an offering circular or prospectus published in relation to such an offering.
Although Banca Popolare di Vicenza has obtained the information provided from sources that should be considered reliable, it cannot guarantee its accuracy or
completeness. The information provided is purely of an indicative nature and is subject to change without notice at any time.
By participating in this presentation or by accepting a copy of the slides presented, you agree to have notice of and be bound by the foregoing.
BANCA POPOLARE DI VICENZA
2
 BPVi Group
 Financial Results
 Funding Breakdown
 ECB Comprehensive Assessment
 Contacts
BPVi’s business
Highlights
1
2
3
4

BPVi was established in 1866 and is the largest, not listed, Italian
bank. BPVi is a cooperative bank: each shareholder (with the
exception of investment funds) can not hold more than 1% of the
shareholders' equity and is entitled to one vote

BPVi is a commercial bank with national relevance and its business
is mainly concentrated in the North East Regions of Italy (above all
in Veneto and Friuli VG). BPVi has a strong presence also in the
central Regions (Toscana and Lazio) and in Sicilia as well

BPVi has a traditional banking business model based on 3 pillars
from a loans originating perspective: residential mortgages, SME
short-term financing and SME long term financing. From a liquidity
perspective, 88% of the funding is based on retail segment

BPVi is a very active player in structured finance space with a
securitization programme under the “Berica brand”. Since early
2000 BPVi acted as originator in 13 RMBS transactions (the last
public deal, completed in June 2014, was Berica ABS 3) and 2 SME
ABS transactions
Largest not listed
Italian bank
Commercial bank
Traditional banking
business
Very active in
securitization
BANCA POPOLARE DI VICENZA
4
BPVi Group’s business areas as of 30 June 2014
Companies which are part of the Group
Companies which are not part of the Group, but contribute to the business
Banks
Banca Nuova S.p.A.
100%
Bank & Insurance
Farbanca S.p.A.
66.85%
Product Factories
Berica Vita S.p.A.
40%
Cattolica Life Ltd
40%
ABC Assicura S.p.A.
40%
Cattolica Assicurazioni
14.92%
Asset Management
Prestinuova S.p.A.
100%
Compass S.p.A.
Palladio Leasing S.p.A.
Pitagora S.p.A.
Arca SGR S.p.A.
19.99%
Wealth Management
Open Platform
Private Equity
Banca IFIS S.p.A.
NEM SGR S.p.A.
Proprietary Trading
Services
BPVi Multicredito Ag. in
Attività Finanz. S.p.A.
100%
Servizi Bancari S.c.p.A.
99%
Immobiliare Stampa
S.c.p.A
100%
BPV finance plc
99.99%
Monforte 19 S.r.l
100%
Sec Servizi S.c.p.A
49.81%
Source: BPVi
BANCA POPOLARE DI VICENZA
5
BPVi Group’s market positioning as of 30 June 2014(*)
First 10 banking groups in terms of branches
First 10 banking groups in terms of Total Assets
TOTAL ASSETS
(€/mln)
BRANCHES (#)
1
2
3
4
5
6
7
Unicredit
7,765
1
Intesa San Paolo
5,984
2 Intesa San Paolo
Monte dei Paschi di Siena
2,362
3
Banco Popolare
1,958
4 Banco Popolare
126,044
Ubi Banca
1,679
5 UBI Banca
123,226
Banca Pop. Emilia Romagna
1,292
6 Banca Pop. Emilia Romagna
60,931
Unicredit
838,689
628,305
Monte dei Paschi di Siena
196,528
Carige
672
7 Banca Popolare di Milano
48,781
Banca Popolare di Milano
668
8
46,148
Gruppo BPVi
657
9 Gruppo
Carige BPVi
45,235
41,329
10 Veneto Banca (**)
555
10 Veneto Banca (**)
34,342
8
9
Gruppo BPVi
Source: BPVi
(*) Excluding Banks belonging to foreign groups
(**) Pro-forma figures (excluding BIM and IPIBI)
BANCA POPOLARE DI VICENZA
6
Network distribution in Italy as of 30 June 2014
Geographical distribution
BPVi Group Network
June 2014
563
BPVi
Banca Nuova
Farbanca
Prestinuova
93
1
Branches BPVi Group
657
Financial Points
Financial Points Prestinuova
15
29
1
Points of sales
702
Financial Promoters
120
Financial Agents
200
Private Banking Offices
Source: BPVi
BANCA POPOLARE DI VICENZA
7
BPVi’s Market share as of 30 June 2014
Market share by branches
1.94%
Market share by performing loans
2.10%
2.01%
2.00%
1.99%
1.95%
1.66%
1.84%
…
Dec. 2010
…
Dec. 2012
Dec. 2013
Dec. 2010
June 2014
Market share by direct funding

Market share by performing loans increased by 0.15 p.p
compared to December 2010 and it is almost in line with
year end 2013

Market share by direct funding increased by 0.16 p.p.
compared to December 2010 and, compared to year end
2013, shows a 0.05 p.p. reduction
…
Dec. 2010
Dec. 2012
Dec. 2013
June 2014
June 2014
Market share by branches increased by 0.44 p.p compared
to December 2010 and by 0.09 p.p. compared to year end
2013. In the first half of 2014, BPVi started to grow again
in terms of number of branches, with the acquisition of 1
branch from Banca Popolare di Spoleto and 16 branches
from Cassa di Risparmio di Ferrara, expanding its territorial
presence in strategic areas with high potential
1.34%
1.18%
Dec. 2013

1.39%
1.32%
Dec. 2012
Source: BPVi
BANCA POPOLARE DI VICENZA
8
BPVi’s shareholders
Shareholders’ geographical distribution
Shareholders’ breakdown
56,295
As of 31 Dec. 2013
Other
9%
As of 31 Dec. 2013
Vicenza:
31,334 (35%)
10,482
62% 12%
7,606 6,378
4,147 1,887
1,359 2,562
8%
7%
5%
2%
1%
Individuals
91%
3%
+15,284
+86.77%
(+16.85%)
56,754
58,259
63,489
67,090
73,274
Dec. 2008
Dec. 2009
Dec. 2010
Dec. 2011
Dec. 2012
90,716
94,795
Dec. 2013
June 2014
106,000
Aug. 2014
After 608 €/mln
Capital Increase
Source: BPVi
BANCA POPOLARE DI VICENZA
9
Growth in Customers’ number
Number of Customers (k)
+65 k
1,102
1,036 1,066
1,154
1,224
+38 k
1,289 1,327

Customers are more than 1.3 mln as of 30
June 2014

In the first half of 2014, the number of
Customers increased by 38,000 (+2.95%)

Increase of 291,000 Customers since 2008
(+28.09%)

The pace of growth accelerated since 2011:
+173,000 Customers (+14.99%)
Unrestricted Deposits
794,328
Dec. 2008 Dec. 2009 Dec. 2010 Dec. 2011 Dec. 2012 Dec. 2013 June 2014
Source: BPVi

The number of unrestricted deposits increased by
39,331 compared to year end 2013 and were about
794,328 as of June 2014
754,997
+39,331
711,120
Dec. 2012
Dec. 2013
June 2014
Source: BPVi
BANCA POPOLARE DI VICENZA
10
BPVi ratings
Latest rating action

The following table shows the current ratings assigned to Banca Popolare di Vicenza by Fitch and DBRS:
Rating Agency
Fitch Ratings
DBRS
Long Term
Short Term
BB
B
BBB (Low)
R-2 (Low)
Outlook
Last assessment
Stable
16 July 2014
Negative
18 December 2013

On 16 July 2014, Fitch Ratings as part of its annual revision of the ratings of Italian medium-sized banks, updated its
rating of the Parent Bank, changing the rating on medium/long term debt from BB+ to BB and the Viability Rating
from bb+ to bb, confirming the short-term rating at B. The outlook was improved from “negative” to “stable”. The
rating reflects the deterioration in asset quality and the low coverage levels. Fitch recognises that the flow of new
impaired loans was reduced in 2014, but deems that the capital strengthening measures carried out would be
necessary to offset the potentially high loan adjustments that may emerge within the Asset Quality Review
currently being performed by the ECB. The stable outlook, instead, reflects the capitalisation level and the signs of
normalisation of the Italian operating environment. Lastly, Fitch stressed that BPVi is rooted in one of the
wealthiest, most industrialised areas of the Countries, where the density of exporting enterprises, which are the
engine of the Italian economy, is high

On 18 December 2013, DBRS Ratings Limited assigned new ratings to Banca Popolare di Vicenza Scpa (BPVI, the
Bank or the Group). The IA of BBB (low) reflects BPVI’s sizeable and stable market positions for its retail and SME
franchise across many of the principal industrial regions of Northeastern Italy. The IA also reflects BPVI’s only
satisfactory financial performance which has come under pressure due to the difficult economic conditions in Italy
BANCA POPOLARE DI VICENZA
11
 BPVi Group
 Financial Results
 Funding Breakdown
 ECB Comprehensive Assessment
 Contacts
Financial highlights as of 30 June 2014
Highlights
1
2

Net Operating Costs increased to 331 €/mln (+0.9% compared to
June 2013) while the Cost Income Ratio decreased by 1.4 p.p. (Cost
Income ratio equal to 57.5% from 58.9% as of June 2013)

Coverage Ratio on Impaired Loans improved compared to year end
2013 despite the decrease in Cost of Credit (1.04% compared to
1.24% as of June 2013). Loans Loss Provisions were 187 €/mln

The 608 €/mln of capital increase was successfully completed in
August 2014: Pro-forma Core Tier 1 reached 10.67%

The strong liquidity position (Liquidity Coverage Ratio was 121% as of
30 June 2014) allowed a 2 €/bln reimbursement of LTRO. Overall
Loans to Deposits ratio(1) was 100.8%, (98.7% compared to June
2013)
Costs
Credit Quality
4
Capital
(1) Excluding
Net profit from Operating Activities improved to 234 €/mln (around
+9% compared to 30 June 2013), thanks to the growth in operating
income. Operating Income stood at 565 €/mln (+4.1% compared to
half year end 2013)
Profitability
3
5

Funding and
Liquidity
Source: BPVi
Repo transactions via CC&G (LSE Group)
BANCA POPOLARE DI VICENZA
13
Financial Results as of 30 June 2014
(1 of 3)
Statement of Financial Position
ASSETS
30/06/2014 31/12/2013
Loans and advances to customers
Loans and advances to banks
Financial assets held for trading
Financial assets available for sale
Financial assets held to maturity
Equity investments
Other assets
Total assets
LIABILITIES AND EQUITY
Due to customers
Due to banks
Debt securities in issue
Financial liabilities held for trading
Financial liabilities at fair value
Other liabilities items
Equity
- including: net income for the period pertaining to the Parent Bank
Total liabilities and stockholders'equity
Change
(+/-)
%
30,073.2
2,398.4
4,564.8
5,708.7
48.3
408.2
2,945.9
30,892.7
2,794.0
2,069.1
4,094.3
48.6
385.0
4,952.5
-819.5
-395.6
2,495.7
1,614.4
-0.3
23.2
-2,006.6
-2.7%
-14.2%
120.6%
39.4%
-0.6%
6.0%
-40.5%
46,147.5
45,236.2
911.3
2.0%
30/06/2014 31/12/2013
Change
(+/-)
%
21,026.9
7,022.7
6,464.1
3,918.1
1,753.0
2,258.6
3,704.1
22.0
22,992.7
7,053.1
6,957.7
1,733.2
1,712.2
1,139.6
3,647.3
-32.0
-1,965.8
-30.4
-493.6
2,184.9
40.8
1,119.0
56.8
n.s.
-8.5%
-0.4%
-7.1%
126.1%
2.4%
98.2%
1.6%
n.s.
46,147.5
45,236.2
911.3
2.0%
Source: BPVi
BANCA POPOLARE DI VICENZA
14
Financial Results as of 30 June 2014
(2 of 3)
Income Statement
30/06/2014 30/06/2013
Net interest income
Dividends and profit (loss) from equity investments
Net financial income
Net fee and commission income
Net profit for the property portfolios
Other operating charges/income
Net operating income
Administrative costs
Depreciation
Net operating costs
Net profit from operating activities
Net impairment adjustments
Net provisions for risk and charges
Gains (losses) on disposal/evaluation of investments
Net income before tax
Income tax
Profit (loss) from disposal groups, net of tax
Minority interests
Net income
260.0
18.9
278.9
147.0
111.5
28.0
565.3
-313.8
-18.0
-331.8
233.5
-187.0
-7.3
0.0
39.2
-16.7
-0.5
22.0
256.4
11.8
268.1
135.3
113.1
26.6
543.0
-311.6
-17.2
-328.8
214.3
-193.0
-3.8
0.0
17.5
-17.5
-0.1
-0.1
Change
(+/-)
%
3.6
1.4%
7.1
60.7%
10.7
4.0%
11.8
8.7%
-1.6
-1.4%
1.4
5.3%
22.3
4.1%
-2.2
0.7%
-0.8
4.9%
-3.0
0.9%
19.3
9.0%
6.0
-3.1%
-3.5
92.6%
0.0 -58.1%
21.7 123.7%
0.8
-4.6%
-0.4 346.0%
22.1
n.s.
Source: BPVi
BANCA POPOLARE DI VICENZA
15
Financial Results as of 30 June 2014
(3 of 3)
Other Information
30/06/2014 31/12/2013 30/06/2013
Average number of employees
Number of branches
CAPITAL ADEQUANCY RATIOS
CET1 Ratio / Core Tier 1 Ratio
Tier 1 Ratio (Tier 1 capital / Risk-weighted assets)
Total Capital Ratio (Regulatory capital / Risk-waighted assets)
STRUCTURE AND PRODUCTIVITY RATIOS
Loans to customers / direct deposits
Total Assets / Equity (leverage)
Direct deposits per employee (in millions of euro)
Indirect deposits per employee (in millions of euro)
Loans to customers per employee (in millions of euro)
Cost / Income
RISK RATIOS
Net non-performing loans / net loans
Non-performing loans coverage (%)
Annualized credit cost
5,281
657
5,290
640
5,284
640
30/06/2014 31/12/2013 30/06/2013
8.55%
8.55%
10.21%
9.21%
9.21%
11.81%
8.11%
8.11%
11.06%
30/06/2014 31/12/2013 30/06/2013
100.8%
12,5x
5.5
3.7
5.5
57.5%
99.8%
12,4x
5.5
3.6
5.5
58.5%
105.7%
14,4 x
5.3
3.4
5.6
58.9%
30/06/2014 31/12/2013 30/06/2013
5.69%
48.69%
1.04%
5.07%
48.74%
1.44%
4.60%
48.03%
1.24%
Source: BPVi
BANCA POPOLARE DI VICENZA
16
Statement of Financial Position as of 30 June 2014 - Highlights
Customers Loans (€/mln)
Retail Direct Funding (€/mln)
30,893
24,623
30,713
26,517
25,865
21,193
-2.5%
30,073
29,985
-2.7%
Dec. 2011
Dec. 2012
Dec. 2013
June 2014
Dec. 2011
17,589
109.80%
102.80%
+3.4%
100.80%
99.80%
97.60%
Dec. 2013
Dec. 2012
June 2014
112.30%
19,693
16,727
Dec. 2011
Dec. 2013
Loans to Deposits Ratio
Indirect Deposits (€/mln)
19,051
Dec. 2012
Dec. 2013
June 2014
June 2014
Loans to Deposit
Loans to Deposit (excl. Repo via CC&G - LSE Group)
Loans to Deposit (excl. Wholesale funding)
Source: BPVi
BANCA POPOLARE DI VICENZA
17
Customers Loans breakdown as of 30 June 2014
Loans by economic sectors (SAE)
Financials
4%
Individuals
32%
 Non-financials represent 56% of the loan book, while
Individuals represent about one third of total loans
Other
1%
 More than two thirds of the loan book is represented
by borrowers located in Northern Italy, in particular in
the North East regions, which are the areas that
recorded the highest economic performances in Italy
 The most relevant activities for BPVi Group are
Artisans/
Entrepeneurs
7%
Non Financial
56%
Loans by geographical distribution
Toscana
13%
Sicilia
9%
Lazio
7%
Emilia R.
4%
Building, Construction and Real Estate (about 20% of
the total loan book) and Trade (12%)
Distribution of loans by economic activity (ATECO)
Other regions
and nonresidents
7%
Agricolture
2%
Individuals/Others
36%
Fashion Enginering/
3%
Automotive
6%
Building,
Construction and
Real Estate
19%
Lombardia
13%
Trade
12%
Friuli V.G.
8%
Veneto
39%
Other Industry
11%
Other Services
6%
Services for
Business
5%
Source: BPVi
BANCA POPOLARE DI VICENZA
18
Income Statement as of 30 June 2014 - Highlights
Net Profit from Operating Activities (€/mln)
233,535
214,275
June 2013



Cost of Credit
1.24%
+8.99%
-0.2 p.p.
June 2014
Net profit from Operating Activities improved to 234
€/mln (+8.99% compared to June 2013), thanks to
the growth in operating income. Net operating
Income increased by 4.1% (565.3 €/mln)
June 2013
June 2014
Cost Income Ratio
58.90%
Coverage Ratio on Impaired Loans improved
compared to half year end 2013 despite the
decrease in Cost of Credit (1.04% compared to 1.24%
as of June 2013). Loans Loss Provisions were 187
€/mln
Net Operating Costs increased to 331 €/mln (+0.9%
compared to June 2013) while the Cost Income Ratio
decreased by 1.4 p.p. (Cost Income ratio equal to
57.5% from 58.9% as of June 2013)
1.04%
-1.4 p.p.
June 2013
57.50%
June 2014
Source: BPVi
BANCA POPOLARE DI VICENZA
19
Credit Quality as of 30 June 2014 - Highlights
Impaired Loans – Gross Figures (€/mln)
5,937
5,378
4,747
736
334
-31.46%
Past Due Loans
542
469
505
525
Dec. 2013 (1)
7.47%
June 2014 (2)
1,887
1,594
57.14%
Restructured Loans
1,259
2,417
Impaired Loans – Gross Growth Rate
-10.63%
3,039
2,755
26.58%
Watch List Loans
18.40%
June 2013
Non Performing Loans
Dec. 2013
Watch List Loans
June 2014
Restructured Loans
Past Due Loans
13.97%
Non Performing Loans
10.31%



Gross Impaired Loans increased, globally, by 559 €/mln
due to the persistent difficulty of the economic
environment
The raw material of NPLs represented by Past-due Loans
recorded a slight increase (+7.47%) but the Gross Growth
Rate of Watch List Loans and NPLs was consistently lower
compared to the previous half year figures
Coverage Ratio increased for each Impaired Loans
category
(1) Figures referred to Dec. 2013 on June 2013
(2) Figures referred to June 2014 on Dec. 2013
Coverage Ratio(*)
3.93%
3.53%
3.89%
3.83%
3.49%
15.05%
4.26%
15.08%
43.15%
43.67%
Dec. 2013
June 2014
13.49%
40.62%
June 2013
Non Performing Loans
Watch List Loans
Restructured Loans
Past Due Loans
(*) Excluding partial write-offs for bankruptcy proceedings in progress at the reporting date
Source: BPVi
BANCA POPOLARE DI VICENZA
20
Capital Ratios: pro-forma as of 30 June 2014
Capital Ratios
11.81%
9.21%
10.21%
8.55%

12.38%
10.67%
BPVi successfully completed the 608 €/mln capital
increase with a demand well above 700 €/mln. For
the first time in BPVi's history, the number of
shareholders raised to more than 100,000
Capital strengthening
Capital Increase
253 €/mln
Completed
2
Soft mandatory Covertible
Bond
253 €/mln
Completed
June 2014 and Pro-forma Capital Ratios were computed
following Basel 3 Standards phase-in implementation
3
Capital Increase
100 €/mln
Completed
BPVi is a standardized bank under CRR framework. BPVi
implemented its internal rating system in 2008 which is
used in the origination and monitoring credit process. In
2012 an internal project was set-up, aimed to get IRB
advanced status by year end 2015
4
Capital Increase
June 2014
Core Tier 1


Timing
1
Dec. 2013

Amount
June 2014 - Pro Forma
Aug. 2013
Aug. 2013
Total Capital Ratio
reserved to new shareholders
• reserved to shareholders
608 €/mln
• reserved to new shareholders
300 €/mln
Dec. 2013
Completed
Aug. 2014
Currently
underway (*)
(*)
Capital Increase reserved to new shareholders started in June 2014. Details are
available at page 16 of 2014 EU-wide Stress Test
Further benefits on Capital Ratios will derive from the
conversion of 253 €/mln soft mandatory convertible bond
(2015)
Source: BPVi
BANCA POPOLARE DI VICENZA
21
 BPVi Group
 Financial Results
 Funding Breakdown
 ECB Comprehensive Assessment
 Contacts
Direct funding breakdown as of 30 June 2014
Direct funding by segment (€/mln)

Direct funding decreased by 2.4 €/mln (compared to
year end 2013) mainly due to a consistent reduction of
Repo Transaction (thanks to the significant increase in
the Group’s liquidity position)

Funding with Institutional Clients increased by 10.8%
(+290 €/mln) mainly due to 3y EMTN public issuance
(500 €/mln executed in January 2014) and to the
execution of 625 €/mln Private Placements based on
reverse inquiries (with a maturity between 2 and 10
years)

Direct Funding with Retail/Network Clients decreased
by 652 €/mln (-2.5%)

Funding represented by securitization is around 2.4
€/bln as of June 2014 (Berica ABS 3 not included)
-2,419
-7.6%
31,663
2,469
2,677
26,517
-2,057
-83.3%
29,244
412
+290
+10.8%
-652
-2.5%
2,967
25,865
Retail Clients 1
Institutional Clients 2
31 Dec. 2013
Other 3
30 June 2014
1
Bank accounts, Deposits (restricted and unrestricted), deposit certificates, retail bonds (excl. EMTN and Private Placement) and other Bonds
EMTN and Private Placement
3 Repo transactions via CC&G (LSE Group) and Other Debts
2
BANCA POPOLARE DI VICENZA
Source: BPVi
23
Group Funding Plan
(1 of 3)
Main achievements

Primary market deal in June 2014 through the new securitization in RMBS space:


Primary market deal in July 2013 through the debut securitization in SME space:


Berica PMI – 980 €/mln
Origination of a private securitization in July 2013:


Berica ABS3 – 835 €/mln
Piazza Venezia – 673 €/mln
Secondary market disposal (Q4 2012 – 1H 2014) of 3.4 €/bln of retained securitizations:

Berica 8 – 755 €/mln

Berica ABS A1 – 940 €/mln

Berica 10 A2 – 311 €/mln

Berica ABS2 A1/A2 – 632 €/mln
Source: BPVi
BANCA POPOLARE DI VICENZA
24
Group Funding Plan
(2 of 3)
Main achievements

BPVi has been active in the last months in EMTN/senior unsecured space:

500 €/mln of a public 3 year senior bond under EMTN Programme (120 accounts, total book after repricing
over 800 €/mln). In terms of distribution, Italian investors took 55%, UK & Ireland 23%, Switzerland 6%,
Luxemburg, Spain & Portugal, France and Germany took 13%. The book was supported by Asset Managers
44%, Banks 36% and Insurance Companies 8% – January 2014

400 €/mln of a public 5 year senior bond under EMTN Programme (90 accounts, total book after repricing
over 580 €/mln). BPVi is the first Italian bank rated below BBB- or equivalent, since the beginning of the
crisis, to issue a senior unsecured bond with a 5 year tenor – October 2013

900 €/mln of senior bonds with a maturity between 2 and 10 years under EMTN Programme (mainly based
on reverse inquiries) issued since July 2013, 625 €/mln of them issued in the first half of 2014.
Source: BPVi
BANCA POPOLARE DI VICENZA
25
Group Funding Plan
(3 of 3)
2014 main redemptions

Wholesale funding:


No redemptions of senior bonds issued under EMTN Programme left in 2014
Retail funding:

Retail bonds issued under domestic Programme maturing by year end 2014 amount to 200 €/mln. Funding
Plan’s target is a total replacement of the bonds matured

The Securities Lending business will continue to play a pivotal role to get new clients and retain existing
customers. In terms of counterbalancing capacity contribution, securities lending with customers is well
above 800 €/mln in terms of market value
Source: BPVi
BANCA POPOLARE DI VICENZA
26
Liquidity Risk Management perspective
Liquidity Risk Metrics

BPVi implemented the liquidity risk indicators required by Basel 3 standards, both for regulatory and internal purposes.
The Risk Management Department, reporting to the Board of Directors, is in charge of monitoring the
short term liquidity risk and the intraday liquidity risk, the regulatory LCR and NSFR on a monthly basis and
the leverage ratio on a quarterly basis

During the first half of 2014 the internal LCR has permanently been well above the minimum level of 100%, set by
the Board of Directors within the approved Risk Appetite Framework

The Basel 3 LCR as of 30 June 2014 was higher than the minimum regulatory level of 60% which, according to Basel 3
requirements, must be reached by 1 January 2015

The Basel 3 NSFR as of 30 June 2014 was relatively close to the minimum regulatory level of 100%
which, according to Basel 3 requirements, must be reached by 1 January 2018

BPVi belongs to the panel of banks monitored on a weekly basis by Bank of Italy. From a liquidity perspective, the
3 month cumulated gap stood at 5.36 €/bln, as of 30 June 2014
Source: BPVi
BANCA POPOLARE DI VICENZA
27
ECB Collateral Breakdown
ECB Collateral by asset type

As of September 2014 (compared with year
end 2013), Net (of haircut) ECB collateral
market value increased by 62.2%.

The available credit line to access ECB main
refinancing operations increased, since
December 2013, by 250% (over 3.7 €/bln)

ECB
Collateral
quality
improved
dramatically due to the strong liquidity
position that allowed the early repayment
of Senior Bond issued with Government
Guarantee.

As of September 2014, there are no ECB
main refinancing operations left (the 3.3
€/bln of LTROs have been fully repaid).
10.65%
39.18%
2.88%
2.23%
2.42%
31.04%
5.14%
8.26%
2.21%
7.83%
19.80%
84.24%
51.05%
33.07%
31 Dec. 2013
30 June 2014
Central Government
Financials & Others
Senior bond issued with Gov. Guarantee
ECB Collateral Pool:
Collateral used
Collateral (credit line) available
Net ECB market value
31 Dec. 2013
3,36
1,48
4,84
as % of Total
69,46%
30,54%
100,00%
24 Sett. 2014
Credit Claims (eligible loans)
Retained securitization & other RMBS/ABS
30 June 2014
3,38
4,47
7,85
as % of Total
42,24%
57,76%
100,00%
24 Sett. 2014
4,91
4,91
as % of Total
0,00%
100,00%
100,00%
Source: BPVi
BANCA POPOLARE DI VICENZA
28
 BPVi Group
 Financial Results
 Funding Breakdown
 ECB Comprehensive Assessment
 Contacts
ECB Comprehensive Assessment
(1 di 2)
BPVi Results

The European Central Bank assumed banking supervision tasks in November 2014 in its role within the Single
Supervisory Mechanism (SSM). In preparation, the ECB has conducted a Comprehensive Assessment of 130 banks
and it has published the results on October 26, 2014.

The Comprehensive Assessment consisted of these components:


the Asset Quality Review (AQR) was a point-in-time assessment of the accuracy of the carrying value of banks’
assets as of 31 December 2013 and provided a starting point for the stress test;

The Stress Test provided a forward-looking examination of the resilience of banks’ solvency to two
hypothetical scenarios, also reflecting new information arising from the AQR;

The Join-up methodology for AQR figures and Stress Test results that provided a connection of both the first
two components.
The outcome of the Comprehensive Assessment run by ECB and EBA is the following:

the AQR outcome is showing a 340 Eur/mln surplus (including 2014 measures);

the Stress Test showed capital excess of 30 Eur/mln: the technical gap was fulfilled by the conversion of the
253 Euro million soft mandatory bond issued in 2013 in addition to the main capital measures launched in
2013 and 2014 for a total amount of 1.2 Euro billion.
Source: BPVi
BANCA POPOLARE DI VICENZA
30
ECB Comprehensive Assessment
(2 di 2)
AQR and Stress Test Results
AQR Results as of 31 Dec. 2013
Operating Profit before impairments
mln EUR, %
438
Impairment losses on financial and non-financial assets in the banking book (5)
Common Equity Tier 1 Capital
Total Risk Exposure
1,205
2,178
28,712
CET 1 (1)
Stress Test
3 yr cumulative operating profit before impairments
3 yr cumulative impairment losses on financial and non-financial assets in the banking book
3 yr cumulative losses from the stress in the trading book
Valuation losses due to sovereign shock after tax and prudential filters
Common Equity Tier 1 Capital
Total Risk Exposure
7.6%
As of 31 Dec. 2016
Adverse Scenario - mln EUR, %
129
1,594
41
163
930
29,305
As of 31 Dec. 2014 (6)
Baseline Scenario - mln EUR, %
937
740
12
n.a.
2,164
29,022
3.2%
7.5%
CET 1 (1)
Memorandum Items
Adverse Scenario - mln EUR
Common EU wide CET 1 Threshold (2)
Baseline Scenario - mln EUR
1,612
AQR - mln EUR
2,322
2,297
Source: EBA 2014 EU-wide Stress Test
Actions performed in 2014
mln EUR, %
mln EUR, %
mln EUR, %
Capital Increase (3)
459
459
459
Soft mandatory convertible bond (4)
Capital Excess (Shortfall)
253
30
253
554
253
593
CET 1 (1)
5.6%
9.9%
10.1%
Source: BPVi
1
According to CRR/CRD4 definition transitional arrangements as per reporting date. Figures as of 12/31/2014 computed as of first day of application 01/01/2014
Common EU wide CET1 Threshold 5.50% (Adverse scenario) and 8.00% (AQR and Baseline scenario)
3 Details are available in EBA 2014 EU-wide Stress Test at the following link: https://www.bankingsupervision.europa.eu/home/html/index.en.html
4 Board of Directors took an irrevocable resolution to convert the soft mandatory bond issued in 2013
5 Figure adjusted as part of ECB Comprehensive Assessment AQR calculation
6 According to ECB/EBA guidelines capital excess (shortfall) must be determined considering the lowest capital level over 3-years period (2016 data for adverse scenario and 2014 data for baseline
scenario)
2
BANCA POPOLARE DI VICENZA
31
 BPVi Group
 Financial Results
 Funding Breakdown
 ECB Comprehensive Assessment
 Contacts
Contacts
Senior unsecured bond/EMTN
Structured Finance/ABS
Direct line: +39 02 62481260
Direct line: +39 02 62481260
e-mail: [email protected]
e-mail: [email protected]
BANCA POPOLARE DI VICENZA
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BANCA POPOLARE DI VICENZA
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