Sustainable Growth Business Plan 2019 2023 - Milan, 18 June 2019 - Gruppo Creval
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Sustainable Growth Business Plan 2019 - 2023 Milan, 18 June 2019
Disclaimer
This document contains certain “forward-looking statements”, which expression includes all statements that do not relate solely to historical or current facts but rather reflect
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environment and changes in governmental regulations, fiscal policy, planning or laws in the Republic of Italy, other relevant jurisdictions and the EU), many of which are outside
the control of Creval. There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-
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Creval presently believes are not material, could also cause results to differ materially from those expressed in the forward-looking statements included in this document.
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2Agenda
Today’s Speaker
Introductory Remarks @11.00 CET
Solid Foundations and Potential
A Clear Strategy
Effective Initiatives Underpinning the Business Plan
Luigi Lovaglio
Group CEO Financial Targets Reflecting Sustainable Growth
Q&A Session
Closing Remarks @13.30 CET
3Sustainable Growth
Business Plan 2019 – 2023: Our Mission
“ A solid, low-risk and value-oriented Commercial Bank,
focused on Retail and SME Clients in our Regions
”
4Sustainable Growth
Business Plan 2019 – 2023: Our Targets
Sustainable Attractive Fortress Cleaner
Profitability Dividends Capital Balance Sheet
>50% Dividend
~6% / >8% RoE in >14% CET1R FL inSolid Foundations and Potential
6Evolving Landscape on the Back of Macro and Industry Trends
Implications for Banks
Challenging Macro • Flat to limited GDP growth(1) Customer base growth &
Environment • “Lower for longer” interest rates environment revenue diversification
Change in Consumer
• Requirement for a quality omni-channel customer service “Customer first” &
Behaviours and
Increasing • Growing focus on Customer experience, major driver of Customer choices Customer-centric
Expectations • Simple, transparent products and value added services organisation
• Historically fragmented Italian banking sector, moving towards a
Competitive Landscape progressive consolidation Agile and innovative
Evolution • Increased competition from innovative and new value propositions (FinTech) platform
• Open Banking (PSD2) model
Regulatory Solid and low-risk
• Pressure on capital requirements, balance sheet strength and de-risking
Environment business model
(1) Source: Prometeia March 2019 (0.2%, 0.6%, 0.9% in 2019, 2020 and 2021 respectively; 0.7% over the period 2022 - 2026). 7Creval Can Count on a Strong Regional Franchise...
365 Branches Nationwide… …with More than 60% of Loans and Deposits in Northern Italy(1)
Centre
8 18%
1 160
Branches North Total: #365
12 56%
18 Sicily
26%
6
8 26 Sicily
2 17%
Customer
30 Centre Total: €16bn
Loans North
Client Breakdown by Type 21% 63%
Corporates
6% Sicily
SMEs 17%
17%
Direct
Center Total: €15bn
94 Funding 19%
Retail North
77% 64%
Longstanding relationships with ~700k Retail and SME Clients
Source: Company disclosure and managerial data.
(1) Number of branches as of March 2019, customer loans and direct funding as of December 2018. 8…With More than 50% of the Business in Lombardy, the Largest and Wealthiest Region
Lombardy as a % of Creval Key Provinces(2)
Selected Metrics(1) Branch # Inhabitants Income /
# of Branches m.s. (%) (‘000) Capita (€’000)
Sondrio 40 31.0% 181.4 25.3
Direct
53%
Funding
Milano 38 2.7% 3,235 34.0
Monza e
Brianza 18 5.0% 872 30.4
Customer
52%
Loans
Como 15 4.8% 599 26.0
Lecco 12 5.7% 339 27.0
Revenues 50%
Varese 11 3.7% 891 27.3
29.1
Pavia 10 3.7% 546 29.1
Branches 44%
Bergamo 6 1.0% 1,110 30.4
Lombardy is the largest region in Italy with 16% of total population and 22% of GDP(2)
(1) MIS data as of December 2018.
(2) Source: Company disclosure, Banca d’Italia, ISTAT and other publicly available information. 9Best-in-Class Capital Position…
CET1 Ratio Fully Loaded (1Q 2019)(1)(2) Buffer vs. SREP Requirement(1)(3) Memo: 2019 SREP Requirement(4)
Credito Valtellinese
14.0% 575 8.3%
1Q 2019
Bank 1 13.5% 417 9.3%
Bank 2 13.2% 520 8.0%
Bank 3 12.3% 218 10.1%
Bank 4 12.2% 324 9.0%
Bank 5 12.1% 281 9.3%
Bank 6 11.5% 222 9.3%
Bank 7 11.2% 120 10.0%
Bank 8 10.8% 149 9.3%
Credito Valtellinese
10.4% 270 7.7%
2017
(1) Banks include: BMPS, Pop. Sondrio, Banco BPM, BPER, Credem, Intesa Sanpaolo, UBI, UniCredit.
(2) Pop. Sondrio figure is transitional. Credem figure refers to Credem Holding.
(3) Pop. Sondrio buffer vs. SREP based on transitional CET1 ratio. 10
(4) Creval’s SREP requirement set by Bank of Italy.…Enabling a Clear Potential for Growth
AuM / (Direct + Indirect Funding) Consumer Finance Penetration(1) Mortgage Penetration(1)
~33% ~13%
1.2x
1.4x ~11%
~10%
~24%
~7% 1.3x
Source: Managerial benchmarking on “good practice” of selected Italian banks.
(1) Refers to retail clients holding consumer finance / mortgage in percentage of total retail clients. Italian average refers to eight major Italian banking institutions. 11A Clear Strategy
12Business Plan Built on Two Pillars
1 2
Revamp our Commercial Take Decisive Actions on
Banking Platform Legacy Issues
Enablers - Our Historic Franchise and Our People
131 Revamp Our Commercial Banking Platform
Strong Focus on Commercial Bank Enabling Sustainable Growth and Profitability
Key Actions
A Separate commercial bank from Non-Core unit
B Enhance customer-centric proposition
C Optimise platform and simplify processes
D Reshape credit underwriting and monitoring framework
14A
Separation of Commercial Bank from “Non-Core” Unit to Allow for a Strong Focus on
Plan Execution
Clearly Identified and Segregated Legacy Non-Core Assets Commercial Bank “Non-Core” Unit
Loan GBV breakdown (1Q 2019) As of 1Q 2019
15.3 13.4 Gross
Loans
€13.4bn(1) €1.9bn
Head-
~3,630 ~50
count
• Identified owners
with dedicated teams
1.9
• Few clear and
measurable targets
• Balanced KPIs
Total Loan Book Performing Exposures Non-Performing Legacy scorecard
Exposures
(1) Excluding government bonds and GACS securities.
15A …With Clear Accountability, Fostering a Customer Oriented High Performance Culture
Lean and Effective Managerial Set-Up
CEO
• Owners of specific pillars already identified
Head of Head of • Greater focus on Business Plan priorities
Head of
Small Business Cost
Retail
Banking Management • Flatter structure closer to customers
• Faster decision processes
Our Human Capital
16B Enhance Customer-Centric Proposition
Conservative Assumptions Underlying Our Revenue Expansion Targets
Euribor 3M / Plan Assumptions Key Considerations
(0.3%) (0.2%) 0.3% 0.4% NA NA
0.0% • Industrial plan reflects conservative rates assumptions for the
0.0%
(0.1%) medium term:
(0.1%)
(0.2%)
(0.2%)
• Euribor 3M future rates estimates consistently negative
(0.2%)
(0.3%) throughout the projection period
(0.3%) (0.3%)
(0.4%) • Euribor 3M 2023 capped at 0%
(0.5%) • ~60bps more conservative than Prometeia estimates for
2018 2019F 2020F 2021F 2022F 2023F
Plan Assumptions(1) Prometeia estimates(2) 2021
(1) Source: Bloomberg; Business Plan assumes Euribor 3 months future rates capped at 0% in 2023.
(2) Source: Prometeia; estimates available up to 2021. 17B Enhance Customer-Centric Proposition
Overview of Key Initiatives
Delta in Revenues ’19 – ’23 (€m)
1
Win-Back Clients and • Set-up of specific “win-back” programs
Scale-up New Client • New approach to leads generation, fully integrated into commercial processes ~20
Acquisition • Full deployment of digital channel to attract young customers
2
• Improvement of analytical capabilities to increase share of wallet
Household Financing • Product range enrichment, also leveraging on partners’ support ~35
• Digital sales
3 • Full deployment of private banking model leveraging on our presence in wealthy regions
Step-up Advisory Role • Enhanced service model for affluent clients with support from our partners
~25
on Wealth Management • Introduction of active customer life-cycle management practices to deliver better customer value
• Product range enhancement across wealth bands, with better online and digital capabilities
4 • Best through-the-cycle banking partner for our small business clients, the most
Renewed Commercial attractive in the sector
Proposition for Small • Increased focus on low-risk and export-oriented players to support asset mix ~25
Business • Small business hunters
• Kick-start and development at scale of our new factoring platform
Total: ~105
18C Optimise Platform and Simplify Processes
Overview of Key Initiatives
Reduction in Costs Post Efficiency
Initiatives ’19 – ’23 (€m)
1
Rigorous and Disciplined Non-HR • Centralisation of cost management with enhanced accountability
Cost Management • “Zero-based” approach to costs ~30
• Demand management optimisation and segregation of procurement
2
Streamlining of Processes to • Centralisation of back office and digital migration
Improve Agility, Services and • End-to-end review of processes and policies to redeploy resources for ~15
value-added commercial activities
Efficiency • Migration of standard transactions to digital and advanced ATMs
• Reduction of products’ variants
3
• Review of branch formats and coverage optimisation
Optimisation of Real Estate • Consolidation and relocation of central functions
~10
Portfolio • Reduction of rented spaces through relocation into unoccupied
proprietary buildings
Total: ~55
19B
C Redeploying Our Human Capital to Value-Added Commercial Activities
600
~500 ~500
500
• Refocus on selected and specific ~240
value-added commercial / front-end
~240
Commercial400 Headcount
Roles
activities for each reskilled Repositioned to
employee 300 commercial roles
Dedicated
~50
• Enhanced training framework with NPE Unit
200 Streamlining of
tailored and dedicated programs to Processes to
reposition skills within the Group ~220 Back Office 100 Improve Agility,
Services and
• Full utilisation of our existing Efficiency
0
human capital # of Employees to Target2023
Employee
Be Reskilled Structure
20B
C More than €20m Investments to Support the Plan
Investments for Growth and Evolution
€m
~5
~40%
~14
~19-22 ~60%
2018 Average 2019-2020
Investments Opex / Acquisition Costs Investments for Growth Evolution Investments
(1) Assuming deployment of investments in the first two years of the plan (2019-2020)
21D Reshape Credit Underwriting and Monitoring Framework
Overview of Key Initiatives
1
• No more lending to lowest-rated clients
Significant Strengthening of Credit
• Discipline in execution of credit policies
Standards
• Refocus on revolving and self-liquidating facilities
~40bps
2
Cost of Risk Reduction
• Timely and effective intervention from early warning signal with
Enhancement of Early Warning dedicated centralised team In the Commercial Bank
Systems • Improved capabilities in identifying riskiest exposures through by 2023 of which
enhanced monitoring systems
~35bps already
3 achieved in 2021(1)
Systematic Consequence • Definition of clear processes and responsibilities to timely deal
Management and Increased with problematic exposures already in the first 30 days
Oversight of Outsourcers • More efficient management of collection outsourcers
(1) Compared to 2019.
221 Revamp Our Commercial Banking Platform
Improvement of Operating Results Through Revenues and Cost Initiatives
€m Delta 2019 – 21 Delta 2021 – 23 Delta 2019 - 23
Incremental Revenues from
~65 ~40 ~105
Commercial Initiatives
Reduction in Costs Post Efficiency
~40 ~15 ~55
Initiatives
Incremental Gross Operating Profit ~105 ~55 ~160
bps 2019 2021 2023
Cost of Risk ~90 ~55 ~50
Incremental Contribution to Operating Profit of ~€105m by 2021 and ~€160m by 2023
~40bps Cost of Risk Reduction
232 Take Decisive Actions on Legacy Issues
2 Key Actions
A Decisive Run-Down of Non-Core Unit
B Reduction of Securities Portfolio
24A Decisive Run-Down of Non-Core Unit
The Current Stock of UTP and Bad Loans Will Be Reduced by Approximately 80%
Levers
• Creation of a separate €1.9bn portfolio with current UTP and Bad Loans
Segregation of Current NPEs • Dedicated unit for management of the portfolio, to reduce exposure by ~80% by 2023
• Clear targets and timing of execution with identified ownership and accountability
• Proactive restructuring for specific exposures
Proactive Management of Stock and • Definition of sale strategies on pledged real estate
New Flows
• Set-up of specific action plan for each position in order to maximise cure rates
• Strategic approach to NPEs portfolios on the back of comprehensive analysis of economic and capital
NPE Disposals
implications
25A Decisive Run-Down of Non-Core Unit (Cont’d)
Evolution of Non-Core NPEs portfolio
Key Considerations Evolution of NPEs Portfolio(1) (€bn)
• Substantial rundown by 2023 (c. 80%) leveraging on 1.9
disposals targeted by 2020 and improving recoveries
• NPE disposal plan fully funded by leveraging on
already identified sources, neutralising capital impacts
while maintaining positive levels of profitability
(0.8)
• Proactive management of remaining NPEs leveraging a
team of 50 fully dedicated employees (0.3)
• Expected improvement of cure-rate from 2% in 2018 to 0.4
(0.3) (0.1)
6% by 2023, narrowing the gap vs. 9% average of the
sector
1Q 2019 NPE Disposals Recoveries / Write-Offs Migration to Bonis 2023 NPE Stock
Stock Collections / Other
(1) Write-offs and migrations based on statistical evidence.
26B Reduction of Securities Portfolio
Financial Assets Evolution
Key Considerations Financial Assets (€bn)
~(50)%
7.9
• Reduction of securities portfolio according to its current 1.7
maturity profile and unwinding of REPO transactions 5.5
• Buffer of unencumbered High Quality Liquid Asset to fully 1.0
4.0
maintained, ensuring a strong liquidity position 0.5
• Tactical disposals in case of favourable windows of 6.2
opportunities (not factored in the plan) 4.4
3.5
2018 2021 2023
Other (1) Govies
(1) Other includes mainly retained GACS. 27Effective Initiatives Underpinning the Business Plan
28C1 Win-Back Clients and Scale Up Clients Acquisition
Selected Examples of Untapped Opportunities Selected Examples of Identified Levers
• Target 85k customers who left the bank in
the last two years accounting for >€1.4bn
• Welcome back package
Win-back saving volumes
• Dedicated senior involvement
• Focus on top 25% relationships,
representing ~90% of lost volumes
• “New-to-bank” young customers of ~500k • New digital acquisition channels offering innovative products with
in the Italian market support from social media platforms
New
• Referral programs from existing clients • Special offers with bonus
Customers
with a leads generation of ~100k • Special offers for transactions within Creval ecosystem and for credit
• Customers and suppliers of our borrowers facilities for business related to our borrowers
SME • SMEs in Lombardy export 50% of their • Fully-fledged import/export package and advanced discount
Exporters turnover of receivables
Source: Confindustria Lombardia and Bocconi University; Managerial figures, benchmarking analysis.
29C2 Household Financing
Selected Examples of Untapped Opportunities Selected Examples of Identified Levers
• Leverage on clients with salary already channeled to the bank (150k) and
not tapped by consumer lending
• Creval penetration on consumer lending • Pre-approval process for high-potential clients that have already been
on existing customers at ~7% compared identified (€200m potential growth in stock)
Consumer • Exploit full capabilities of digital channels aiming at “one-click” products
to ~10% of selected comparables(1)
Finance
• Sector volumes growing at c. 3% CAGR in • Up-scale of CRM functionalities for early identification of customers’
consumer finance segment behaviour and changing needs
• Special offer to customers currently borrowing from other banks
• Proactive top-up on selected clients
• Creval’s penetration on mortgages on • Leverage on more than 140k customers with salary already channeled to
Mortgages existing customers at 10% compared to the bank and not yet tapped by mortgage
~13% of selected comparables(1) • Optimisation of partnerships with real estate agents
• Marginally deployed cross-selling with
CPI products • Bundled offer of financing and CPI
CPI products
Source: Managerial figures, benchmarking analysis.
(1) “Good practice” of selected Italian banks
30C3 Step-Up Advisory Role on Wealth Management
Selected Examples of Untapped Opportunities Selected Examples of Identified Levers
• Enhancement of private banking coverage in our richest areas of
Territorial • High potential network located in the presence
presence and wealthiest region of Italy • "Wealth Management Academy" to improve Relationship Managers skills
PB Network
on wealth management
• Introduction of a Wealth Management unit to manage strategy,
• Creval’s AuM over total funding of 24% commercial planning and pricing
Indirect vs 33% of selected companies • Continued innovation in product offering
Funding Mix • Untapped potential on lower affluent • Financial advisory tools to support RM on portfolio management
and customers, compared to other wealth • Increased in-branch level of service, thanks to introduction of new
Penetration bands (10% under-penetration vs. advisory model
selected comparables) • Introduction of a home-offer advisory model, to allow a premium service
for high-potential clients
Non-Life • Limited cross selling of non-Life • Bundled offer also via digital
Insurance insurance products on affluent clients
Source: Managerial figures, benchmarking analysis.
31C4 Renewed Commercial Proposition for Small Business
Selected Examples of Untapped Opportunities Selected Examples of Identified Levers
• Lower penetration compared to other segments in • Pre-approval process for customers already identified with high
SME financing better rated clients rating (€400m volume potential)
Customer • Fastest growing segment with privileged • Special and targeted actions toward former top-rated borrowers
Credit Profile positioning in Lombardy, the region with largest (c. 2,000 clients with an exposure of around €150m)
SMEs in terms of turnover and employees
• Lower non-lending income compared to sector • Leverage fully-fledged offer including import / export products
Revenue
Quality (22% vs 26% for selected companies) • Online deposits
Portfolio • Current split (70% MT vs 65% for selected
companies of the sector) to tend towards • Simple and expedite access to revolving credit lines
Rebalancing
short term products
Source: Managerial figures, benchmarking analysis.
32C1 Rigorous and Disciplined Non-HR Cost Management
Clearly Identified Actions on Costs Selected Examples of Addressable Cost Items
• Optimisation of processes to better assess demand
and definition of expense targets
Demand • Centralisation of several cost owners under one unit, • Currently 15 cost owners
Optimisation acting as unique interface for costs demand within
the Group
• Segregation of procurement activities
Renegotiation • Renegotiation / revision of current contracts, • On average up to ~€50m worth of contracts subject to
of Contracts including IT agreements renegotiation every year
Review of • Redefinition of spending policies and processes in a • 17% of total SG&A relating to consultancy and
Processes / zero-based perspective professional services
Policies
Source: Managerial figures, benchmarking analysis.
33C2 Streamlining of Processes to Improve Agility, Services and Efficiency
Clearly Identified Actions on Costs Selected Examples of Addressable Cost Items
• Refocus branches on client-facing activities,
leveraging centralisation of back-office processes
Centralisation
of Back Office • Reskilling of resources switching to new roles • CurrentlyC3 Optimisation of Real Estate Portfolio
Clearly Identified Actions on Costs Selected Examples of Addressable Cost Items
• Adjust branch format to reflect new commercial focus:
• Fully-digital branches (Bancaperta model) • Currently 14 branches with Cost / Income
Branch >100%
Format and • Stand-alone branches with advanced ATMs
Coverage • 30-40 branches already clearly identified in
• Flagship branches, with differentiated offering
close proximity
across segments
• Consolidation of overlapping branches
Consolidation
• Consolidation and relocation of central functions into • 11 properties for headquarter use in 4 different
of Central
fewer number of Creval’s properties cities for a total of ~70k sqm
Functions
• Proprietary real estate assets per employee of €106k
Reduction of • Termination of unnecessary rental agreements vs. sector average of 72
Rented • Maximisation of utilisation level (m2 / resource) through • Average sqm per employee of ~60 vs ~30 for
Spaces redesign of spaces / upgrade of internal layouts comparables
• Rent costs of ~€6k vs ~€4.5k for comparables
Source: Managerial figures, benchmarking analysis.
35Financial Targets Reflecting
Sustainable Growth
36Key Financial Targets Recap
Incremental Reduction in CoR
Revamp our Revenues vs. 2019 Costs vs. 2019 Commercial Bank
Commercial
Banking Platform ~€65m by 2021 ~€40m by 2021 ~55bps in 2021
~€105m by 2023 ~€55m by 2023 ~50bps in 2023
Run-Down of Reduction of
Take Decisive Non-Core Securities
Actions on Legacy Portfolio
Issues
~80% by 2023 ~50% by 2023
37Well-Diversified Funding Plan
Focus on Institutional Funding
Covered Bonds Stock (€bn) Funding and Liquidity Ratios
2.0
• Issuance of covered
bonds to diversify >100% >100%
1.0 sources of funding
• Progressive decrease of
reliance on ECB facilities
2021 2023
Senior Bonds Stock (€m)
600 600
• Issuance of senior bonds LCR NSFR
to replace maturing retail
bonds Business Plan to result in Group’s
funding and liquidity ratios well above
regulatory requirements
2021 2023
38Bringing It All Together
Net Income Evolution
Net Income Evolution (€m) – Commercial Bank Net Income Evolution (€m) – Group
ROE (%) 2% ~6% >8%
>€100m
150
138
88 93
31
Commercial Bank 2021 Commercial Bank 2023 Group 2018 Group 2021 Group 2023
39Bringing It All Together
Selected P&L Items for The Group in 2021 and 2023
€m 2021 2023
A Net Interest Income 357 361
B Net Fees & Commission Income 284 308
Operating Profit 650 678
C Operating Costs (424) (400)
Net Operating Profit 226 278
D LLPs (94) (81)
Net Profit 93 138
40A Focus on Net Interest Income Evolution
€m Delta 2019 – 21 Delta 2021 – 23 Delta 2019 – 23
Incremental Net Interest Income
~33 ~23 ~55
Commercial Bank
Forgone Interest Income on Non-Core
~(10) ~(10) ~(20)
NPEs
Stabilisation of Institutional Funding,
Run-Down of Securities Portfolio, ~(16) ~(10) ~(25)
Unwinding of REPO transactions(1)
Total Impact on Net Interest Income ~7 ~3 ~10
Commercial Bank contribution offsetting the decisive balance sheet strengthening and asset quality
actions, enabling sustainable growth and profitability
(1) Includes impacts from maturing retail bonds and rates effect throughout the Business Plan.
41B Focus on Net Interest Income Mix
Net Interest Income by Customer Segment
54% 52% 50%
46% 48% 50%
2018 2021 2023
Retail Corporate
Rebalancing of Net Interest Income mix towards Retail
42B Focus on Fees and Commissions
Commission Income as a % of Core Banking Income(1) Asset Management as a % Commission Income
641 641 669 253 284 308
57% 56% 54%
65% 64% 63%
43% 44% 46%
35% 36% 37%
2018 2021 2023 2018 2021 2023
Net Fees & Commission Income Net Interest Income Asset Management Other Net Fees & Commission Income
Expected growth through increased penetration and conversion of direct funding into indirect funding
(1) Core banking income defined as the sum of Commission Income and Net Interest Income
43C Focus on Operating Costs
Evolution of Personnel Expenses (€m) Evolution of Non-HR Costs and D&A (€m)
19 282 263
264 3 266 257
202
160
143
Cost reduction initiatives more than
offsetting impact of contractual
obligations over the plan
2018 Contractual 2021 Post 2021 Contractual 2023 Post 2023 2018 2021 2023
Obligations to Contractual Obligations to Contractual
2021 Obligations 2023 Obligations
# Head- Cost / Income Ratio Evolution
~3.7k ~3.5k ~3.4k
count 70%
65%
59%
• Natural attrition resulting in ~300 headcount decrease over the plan, allowing to absorb
impact of national contract renewal as well as bonus payments factored in the plan
• As a result, personnel expenses to slightly decrease throughout the plan
• Decrease in administrative expenses, driven by cost initiatives, including centralisation
of cost management, “zero-based” approach and optimisation of RE portfolio 2018 (1) 2021 2023
(1) 2018 recurring.
44D Focus on Asset Quality
Cost of Risk – Group (bps) NPE Ratio – Group (%)
GBV (€bn) 2.0 1.2 1.1
~60 Gross NPE
Ratio (%) 11%
~50Commercial Volumes Evolution
Customer Loans by Segment (GBV, €bn)
27% 33% 35%
16.0 16.0 16.4
8.5 8.4
9.3 • Significant portfolio rebalancing over the plan horizon, with
Retail clients increasing share to ~50%
• Household financing reaching ~35% of total loans
7.6 8.0
6.7
2018 2021 2023
Household financing as a
Retail Corporate
% of total loans
46Customer Savings Evolution
Direct Funding (€bn)
15 16 17
32% 33% 32% • Continued growth in AuM and life insurance through our
asset management and bancassurance partnerships, also via
asset shift from direct funding
68% 67% 68%
2018 2021 2023
Retail Corporate
Total Customer Savings (€bn) AuM / Direct Funding (%)
25 28 30
60% 58% 56% 61%
54%
46%
40% 42% 44%
2018 2021 2023 2018 2021 2023
Indirect Funding Direct Funding
47Regulatory Capital Evolution
Fully Loaded CET1 Ratio Evolution
0.74% 0.61%
14.5%
14.1% (0.19% )
14.0%
(0.62% )
1Q19 CET1R Business Regulation / Other 2021 CET1R Business Regulation / Other 2023 CET1R
Development Development
# RWA (€bn) 10.1 10.2 10.4
Dividend Policy:
• 50% payout ratio starting from 2020 and 75% from 2022
48Q&A Session
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