growing together with enterprises · short term + 3.4% medium-long term + 3.5% december...
TRANSCRIPT
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Growing together with enterprises
Milano, 3 July 2009
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Lending still growing Δ% y/y
April 2009/April 2008 + 3.4% short term + 3.4%
medium-long term + 3.5%
December 2008/December 2007 + 6.8% short term + 7.8%
medium-long term + 6.1%
-12.0
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08
GDP Investments
Lending to enterprises in Italy is still growing despite the recession
Slumping Production and Export* ...
Declining GDP and Investments*...
* Nominal growth rates
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08
Ind. Prod. Export
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13.1% 12.1% 10.8% 6.8% 4.0%
-10.6% -21.1%-3.9%1.0% 0.1%
Mar. 08 Jun. 08 Sep. 08 Dec. 08 Mar. 09
Loans to enterprises Industrial Production
Correlation between Industrial Production and lending to enterprises
(% Y/Y)
Gap between loan growth and Industrial
Production growth
Lending is growing more than the Economy (1/2)
25.117.314.712.012.1
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Correlation between Export and lending to enterprises
Gap between loan growth and Export growth
(% Y/Y)
Lending is growing more than the Economy (2/2)
4.0%6.8%10.8%12.1%13.1%
4.7%4.5% 2.0%
-19.8%-6.6%
Mar. 08 Jun. 08 Sep. 08 Dec. 08 Mar. 09
Loans to enterprises Export (current prices)
23.813.48.87.48.6
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Rate on loans and spread at all-time lows...
Rate on loans to enterprises Cost of funding
Spread (Loans to enterprises – funding)
1.00
2.00
3.00
4.00
Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-093.00
4.00
5.00
6.00
7.00
Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09
1.00
2.00
3.00
4.00
Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09
Bond rate spread vs Euribor 3m
Source: Bank of Italy
-1.00-0.500.000.501.001.502.002.50
Dec-05 Dec-06 Dec-07 Dec-08
6
16.6
79.4
0
20
40
60
80
100
2007 2008
... which adds to the strong increase in adjustments to loans
Banking system: adjustments to loans (Δ% y/y)
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Italian banks remain more committed to lending to enterprises compared to all main European peers
2009 ABI Report on Banking systemLoans to customers*/assets (December 2008)
(*) Loans to individual customers and enterprises (excluding corporate bonds, if any)Source: ABI’s European Banking Report on companies financial statements – Sample of 29 European banking groups (partially estimated figures)
In attesa di tabella da fogola
40%
33%
19%
16%
13%
12%
8%
14%
21%
23%
17%
18%
9%
10%
2%
4%
2%
3%
4%
2%
3%
7%
4%
2%
1%
1%
1%
1%
0% 10% 20% 30% 40% 50% 60% 70%
Italy
Spain
Netherlands
EU Average (excluding I.)
UK
France
Germany
Loans to enterprises Mortgages Consumer Credit Other loans
22%
25%
36%
38%
45%
62%
63%
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Cost of funding for Italian enterprises is in the Euro area average
Up to 1 year duration and facility amount > 1 million
Rate on loans to non-financial companiesUp to 1 year duration and facility amount <= 1 million
2.0
3.0
4.0
5.0
6.0
7.0
Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09
2.02.53.03.54.04.55.05.56.0
Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09
Germany Spain France Italy EA
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Data as at 31.5.2009
Facilities granted
%on total
Individual customers 85 18%
Small enterprises 70 15%
Small - medium enterprises 115 25%
Medium enterprises 45 10%
Large enterprises 80 17%
P.A. and Financial Institutions(*) 75 16%
TOTAL 470 100%
ISP lends almost 500bn to the Italian system (approx. 1/3 of GDP)of which 67% to enterprises, above all small and medium-sized
(*) Including Public Administrations, Financial Institutions, Banca IMI, Product company direct distribution and other BdT clients.
50%67%
€bn (rounding figure: 5)
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Used Margin MLT Disbursements
May2009
May2008
12 months Flow (1)
2009 First 6 months
Small enterprises 45.7 45.5 5.6 2.4
Small - medium enterprises 79.0 79.4 9.4 4.0
Medium enterprises 27.4 26.9 2.9 1.3
Total 152.1 151.8 17.9 7.8
ISP has succeeded in not reducing its lending to Italian enterprises even during the last 12 months, despite the sharp fall in loan demand and the significant rise in credit risk. Almost €18bn of new medium-long term credit disbursements
(1) MLT disbursement flow from 31.5.2008 to 31.5.2009.
€bn
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Intesa Sanpaolo confirms credit availability for Italian enterprises
€61bn as current unused margin of facilities already granted
€30bn as new facilities to be granted on request
Expectations of new medium/long term credit disbursements of €50/60bn over the next 36 months (the figure for the last 6 six months was some €8bn)
€18bn Small enterprises
€30bn Small-medium enterprises
€13bn Medium enterprises
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Serving Small and Medium-sized enterprises
A solid wide-ranging and flexible offering: 2 types of offering, 6 product areas and several product lines to identifysolutions tailored to customer demand
Recurring
One off
Short-term loans and payment systemsManagement of corporate risksInnovation and developmentInternationalisation
Strengthening and developmentCapital base and flexible loansConcrete supportLiquidity to the system
TYPES OF OFFERING PRODUCT AREAS PRODUCT LINES
9 lines2 lines10 lines6 lines
8 lines
4 lines
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Our further commitments to facilitate credit access
Constant renewal of our offering by sector
Transparency of contractual conditions
“Bridging” with all other entities that can facilitate credit
Capital investment, not only lending
Do not ask us to make bad loans, however
Proximity typical of a local bank: the Banca dei Territori model
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Progetto Progetto Edilizia Edilizia
A dedicated offering constantly renewed for each sector
Professionals and self-employed people
Small Manufacturing
TourismHandicraft
Commerce
Other
Constructions
Enterprises
CondominiumsOther
--
Agriculture
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The Banca dei Territori model
Competitive edges of a Bank, which is national, international as well as local
8 Regional Governance Centres
20 Local Banks
6,200 Branches
55,000 professionals
11 million customers
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Specialised banks Product companies
International subsidiary banks
The whole group at the service of Banca dei Territori
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Increasing transparency and simplification of contractualconditions
Rates.........
Commissions...
...
...
...
Expenses.........
Reimbursements............
Facility commission
Used margin rate
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“Bridging” with all other entities that can facilitate credit access
350 Confidi (nearly €7bn “plafond” available)
Fondo Centrale di Garanzia
SACE
Cassa Depositi e Prestiti
BEI
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Capital investment, not only lending
Mezzanine funds
Private equity investments
Development participations
Institutional participations
Venture capital participations/funds (Atlante Ventures)
“Special Situation”participations/funds
Regional funds (Nord Impresa, Centro Impresa, Mezzogiorno)
Merchant banking dedicated to investments in enterprise equity
Since 2003 more than 120 deals in capital investment (both direct and indirect) have been closed.
About 75% of the deals finalised refer to Small and Medium-sized enterprises
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We share the same worries of all the enterpreneurs
How the recession will evolve
Growing weight of payments (public and private) past due
Basel 2 effectMechanism procyclicality“Automatic” deterioration of enterprises on the basis of their balance sheetsBankability of initiatives to finance
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There are features of solidity in the Italian system that couldplay a crucial role
Many enterprises/sectors/districts are holding up
Resilience of the banking system
Total indebtedness is lower than elsewhere
Our economy is more diversified and flexible than others
Our society still has important elements of cohesion
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Together we can meet the present challenges and preparefor the new growth phase