Banco BPM SpA Q3 2021 Earnings and Strategic Plan 2021-2024 Presentation Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Delphine Lee - JPMorgan Chase & Co, Research Division - Analyst : Yes. So I just have maybe 3 quick questions. First of all, on NII. Thanks for providing the impact of rates and the securities portfolio. Could we also get the contribution of TLTRO? So how much is declining over the plan? My second question is on provisions. You used to have in your old plan up to 60 basis points of impact from calendar provisioning, and I mean I know this was Pillar 2 related item, but is that something which is embedded in your guidance on cost of risk? And is it why this is a little bit higher than the level you're running at, at the moment? And the last question is on AT1. I haven't seen anything in your business plan around this. Do you plan any issuances of AT1 or Tier 2 in your plan?

Question: Domenico Santoro - HSBC, Research Division - Analyst : First of all, just to recap on the NII. The EUR 280 million that you will lose on the TLTRO and on the sovereign bond portfolio, can you give us an idea? You gave already some numbers, but can you give us an idea how you intend to recover those at end 2024? Let's say, if this number is 100, 20% by volume growth, 20% with the interest rate hike, lower cost of funding, I assume. And there might be also a little bit from the NPE as well. Just to have an NII waterfall from here to 2024, that will be very useful. The second question is on the contribution of the bank levies in '24. I wonder whether you have excluding the resolution fund from your numbers? And then just a suggestion, it will be very useful to get the answer to the question before on the loan loss provision for next year, 2022, given that you doubled your default rate on the -- on your portfolio, even if not a precise guidance, at least to understand what's the direction compared to 2021 pre or post disposal that you might like.

Question: Noemi Peruch - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : I have some follow ups. The first one is on NII. So is the EUR 130 million, I think you mentioned related to Euribor related to 2023 or 2024? And then on the addendum, it's not very clear to me your strategy. Does your cost of risk target include some of the coverage increases? And on the of base that, did I understand correctly that the addendum would increase MDA only by a few basis points if applied throughout the plan? And then on JVs, you mentioned indeed EUR 90 million additional net profit in 2024, and what part of it is driven by synergies? And finally, just 1 question on equity stakes, if you're planning to sell some of them ahead of Basel IV?

Question: Noemi Peruch - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : Sure. If you are planning to sell some of them ahead of quarter 4?

Question: Hugo Moniz Marques Da Cruz - Keefe, Bruyette & Woods Limited, Research Division - Analyst : So I wanted to go a bit more on the Bancassurance option. A few questions. So you can already exercise the Covea option. So are you already planning to do it? Are you already with discussions with them? Because it seems to me, if it's profitable to internalize these businesses, you would want to do it as soon as possible. Second, on the Danish Compromise, the difference between you and the other banks is that you have not owned these businesses for a long time. So do you have comfort from your discussions with the regulators that they will let you use the Danish Compromise? And third, I just wanted to understand a little bit more the contribution from the internalization and split that from the other businesses. So it'd be great if you could tell me how much is the expected contribution from Agos and Anima in 2024? And also, specifically on the Bancassurance, is there any assumption of renegotiating the distribution fee that you're booking fee income. So is there any contribution on the fee income side? And I expect extra costs from internalizing the business. Are those extra costs reflected in your associates' estimate? Or is it reflected in your OpEx estimate? And if you could tell me how much of those extra costs are you expecting?

Question: Hugo Moniz Marques Da Cruz - Keefe, Bruyette & Woods Limited, Research Division - Analyst : Yes. I was just wondering, there is a part of the profits get booked in the associates or the insurance business and parts will get booked in the branch and you go through associate -- sorry, through fee income. So I was just wondering if you assume any different economics for the branch network from internalizing?

Question: Luigi Pedone - Equita SIM S.p.A., Research Division - Analyst : Two question from my side regarding the JV. The first one is regarding the risk. So which are, in our view -- in your view, sorry, the main risk coming from the internalization of the JV, the insurance JV, which are the main action to close the gap with peers in Bancassurance. And the second one is regarding the impact. So we have assumed the renewal of the Danish Compromise. But if which will be the impact of the internalization of the JV starting from 2024 if we assume the final expiration of the Danish Compromise and the impact of the IFRS 17.