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Edited Transcript of UBI.MI earnings conference call or presentation 8-Nov-19 2:30pm GMT

Q3 2019 Unione di Banche Italiane SpA Earnings Call

Bergamo Nov 27, 2019 (Thomson StreetEvents) -- Edited Transcript of Unione di Banche Italiane SpA earnings conference call or presentation Friday, November 8, 2019 at 2:30:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Victor Massiah

Unione di Banche Italiane S.p.A. - CEO, GM & Director

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Conference Call Participants

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* Andrea Vercellone

Exane BNP Paribas, Research Division - European Banks Analyst

* Antonio Reale

Morgan Stanley, Research Division - Equity Analyst

* Azzurra Guelfi

Citigroup Inc, Research Division - VP

* Giovanni Razzoli

Equita SIM S.p.A., Research Division - Financial Analyst

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Presentation

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Operator [1]

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Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the UBI Banca Group consolidated results as of September 30, 2019. (Operator Instructions) At this time, I would like to turn the conference over to Mr. Victor Massiah, Chief Executive Officer of UBI Banca Group. Thank you. Sir, please go ahead.

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Victor Massiah, Unione di Banche Italiane S.p.A. - CEO, GM & Director [2]

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Thank you, madam. Good afternoon to everybody. I'm going first over obviously to Page 3 as a starting point, executive summary. First 3 quarters, net operating income up by 9.6% or 11.2% net of systemic charges. This is an important growth, my opinion, very relevant.

It's due firstly to the resilience of the core revenues. In terms of net interest income, we are defending the net -- this component. If I read well, the market results are better than almost anybody else. And not only, but this is coming with an important performance of the fee-based part of the story, which is matter of fact is almost compensating the decrease in the net interest income.

Continuous decrease in operating cost, this is a very regular story quarter-after-quarter, minus 3.7% versus previous year, net of systemic charges. Net stated profit of EUR 191 million versus EUR 210 million or EUR 243 million versus EUR [260] million net of nonrecurring items, which is actually quite interesting in my opinion again because we have been charging this year an additional cost of EUR 70 million net of higher cost of risk linked to the sales [in] factoring and leasing bad loans disposal. And actually, you will see there is some component also that will be part of an initial disposal by the end of the year.

The lowest-ever gross NPE inflows, EUR 0.7 billion in these 3 quarters, including new definition of default, minus 80% compared to the peak of 2009. I would like to stress the point that we are applying already -- and if I understand well, we are the only one at the moment to -- the new definition of default is already in our figures.

Gross NPE is down by EUR 2.2 billion, a very important decrease. And what I would like to stress also in here is that we believe that not, let's say, change the idea in terms of what was supposed to be an internal management. There have been some sales. But as you may appreciate, most of the component was an internal workout. Why EUR 2.2 billion does not make EUR 1 billion plus EUR 1.5 billion? Because there are [EUR 200 million] of additional components of the leasing sales that have failed to be implemented during the fourth quarter.

Decrease in NPEs, gross ratio from -- is now 9.34% formally versus 11.14% of the previous year, achieved in presence of a growing capital, CET1 ratio 12.09% versus 11.42% in September 2018. I remember that there were many questions during the previous years regarding the possibility of the bank to dispose of this asset without [recurring to] any capital. Actually not only we did not [recur] to any capital, not only we did not recur to any particular special sale, but actually the capital, the CET1 indicator has been increasing. And I think this differentiates a long-term bank. And I hope it would be appreciated after an appropriate reading of the results.

Confirmed focus on indirect funding, which exceeds EUR 100 billion, it's many years since we have not exceeded this component, showing growth in all components in 2019 and a strong driver for commission income. Ambitious funding plan carried out with success on the institutional markets. Direct funding grows to EUR 96 billion. The bank is already compliant with expected MREL requirements. I repeat, the bank is already compliant with expected MREL.

Now let's go in the details. First of all, net operating income grows to EUR 900 million. It's almost 10% versus previous year, thanks to the resilient core revenues and ongoing cost control. Core revenues are substantially flat in a very difficult environment. And I think this is quite an interesting performance. Operating expenses are down. And you have the 2 versions, including or excluding the systemic charges.

On Page 5, you have a detail of the NII. First of all, how has been the business with customers gone? Mostly flat compared to the previous quarter, the second versus third. If you look at the table on Page 5 on the top left, we have a business with customers component, which is EUR 366 million versus EUR 369 million. We have a EUR 10 million negative component of IFRS 9, which substantially is linked mostly to the NPE stock decrease.

Financial activities have been slightly positive. And interbank is negative. Altogether, this justifies. So the delta is not a delta coming from the commercial activity. That is very important to say. But it's coming from accounting component. Let me stress, this was achieved with a reference in the market with Euribor at 1 month that went from 38 to 42, so a very, very heavy headwind. Business with customers, as we said before, went from EUR 1.225 billion to EUR 1.195 billion, so minus [2.5%] on the cumulative of 9 months versus the previous year, while other components went down 4.7%, altogether, 2.7%.

How did the commercial part of the story -- how was it able to be so resilient? We have on Page 6 some additional details. As you may appreciate, on the stock, the mark-up on lending was substantially going even up. EUR 243 million was in the second quarter, EUR 244 million is -- just the last quarter. Markdown on funding went from EUR 66 million to EUR 71 million. So actually, the component that was a negative one was due obviously to the correction in the market rates. And of course, there was some additional component of additional institutional funding. But actually, mostly is 4 out of 5 is obviously the reference to the market rates.

In the new origination, as you may appreciate on the bottom of the exhibit, we are not only sticking to our policy of price discipline, but we are going from 236, that was the second quarter, of commercial spread to 254. Reimbursements are going -- have actually commercial spreads of 196. And so a delta among the new one and the old one of 36 bps has become now 58 bps. Of course, there are components in terms of volumes that are less positive by definition. The total reimbursements are higher than the new trends. But as you may see, we're sticking to the discipline.

So pricing policy, very rigorous. Obviously, some volume is down but apparently, not particular loss of market shares in this last quarter and being able in a way to be resilient on the commercial [pattern]. So a specific situation due to the sale in the IFRS 9 is the real delta in the NII.

Page 7, diversification of financial assets. The only comment I have is that, as you may see, the Italian govies are now going continuously towards the 50% target that we had in terms of component of the total financial assets. They were 75% in '16, 60% in '18, 54% in June and now they are 53%. Of course, we have increased as a diversification other components. One of the components, as you may see in the detail, are corporate bonds that increased by EUR 400 million. This is also an explanation of why we had an increase in the risk-weighted asset component that obviously influences the CET1. But it's part of the diversification and obviously is part of a contribution to the NII.

On Page 8, we have a detail of the execution of the ambitious funding plan. As we always gave the message that we were not worried about the MREL, now you have -- but we have not been very much transparent on that. Now it's time to be transparent and we are transparent and not by giving you bad news but by giving you good news. And the good news is that we are already complying, anticipating by 9 months the target that was binding by 30th of June 2020. In detail, as you can see, we have been going up on all the components, both with ordinary customers and institutional customers, both direct funding and indirect funding.

There is a lower retail bond contribution and higher long-term institutional funding. And in a way, thanks to the market, that has been [pressing] us in any time when it was a little bit easier during summertime. But let me remember that we were able to issue a lower Tier 2 in February when the times were not so good as in summertime. It was winter from May for many reasons, not only for this [season] per se.

Page 9, net fees and commission income show healthy growth with lower upfront and performance fees. I think that this is very, very, very good performance. Why? If you go in detail, you may appreciate that the upfront and performance fee component on the bottom -- on the top left of the exhibit went from EUR 175 million to EUR 169 million, so down, while the regular one, the [metering plan], went up from EUR 482 million to EUR 513 million tied mostly to the indirect funding growth. And last but not least, the banking-related commission, so the traditional one if you want, [grow] from EUR 552 million to EUR 542 million with an increase of 1.9%.

Now the 1.9% is obviously lower than the 6.4%, but in my opinion is -- in a way was even more difficult. And I think it's a very good demonstration of strength of such an increase. You have also the details quarter-by-quarter in the right part of the exhibit. And there is a growth third quarter '19 to third quarter '18, don't forget the seasonality. And so it was better to compare same season, summer season. We had an increase of 5.8% in the fees, so quite a good one.

Operating costs, down. It's a decrease of minus 2.3%. Actually, if you exclude the systemic charges regarding again the special funds for, let's say, other banks that were in some province, we have a decrease or actual decrease of minus 3.7%. Even on a seasonal one, again this is obviously -- could be also some statistical accident, but there is a minus 1.7% and a 2.6% excluding the systemic charges.

On the NPEs, here is another very important part of our communication today. We have a strong NPE reduction, as you have seen and hopefully appreciated, in the third quarter, minus 7.7% gross and minus 6.4% net, drop of the Texas ratio to 66%, altogether was a very impressive decrease in terms of total amount, 2.1% in gross level. And again, let me stress that 2/3 of this amount or 60%, 65% of this amount were made internally, not by special sales. And this is one of the good reasons why we could -- we don't have even a very important reduction to us, to anybody helping [to some cash] or sell any of our assets. We were doing it by ourselves. And I think this should be very much appreciated. And the level and the quality of the performing portfolio on the bottom right is even improving. It's possible now the high -- let's say, the high risks are at 3% and the low risks are 81.1%. And anyway, within the high risk of 3%, 87% of the high risk positions are collateralized.

Okay. The stock is decreasing. What about the inflow? The inflow was a very good news because we had the lowest-ever level of gross inflows from performing, down to EUR 689 million, including the new definition of default. And I say again, including the new definition of default, so new record while we were becoming even more strict in terms of definition. And this minus 80%, this is the peak of the 2009, which have seen the highest ever, as you can see in the chart, at that time, there were EUR 3.4 billion. Today, we have less than EUR 700 million. The default rate in the bottom part went down altogether to 1.1%, including the new definition of default of 0.96%, excluding, let's say, computing in the traditional way.

This rise on Page 13 to about 9% in pro forma, including the wholesale of the leasing, talking about what has already been implemented, 9.34%, which compares not only to a picture of 15%, but just going to September last year, it was almost 200 basis points higher, 11.14%. I would like also to announce that a further boost is expected for the remaining leasing sale to the competitor and potential GACS of approximately EUR 800 million by year-end. If executed, this will bring to an estimate of about 8% of gross NPE by the end of the year. If we will achieve this again with no particular impact on our CET1, this will drive us to be 200 points ahead of the target of the original industrial plan that was foreseeing to bypass the 10% by year 2020. We're doing it by year 2019 and with a much, much lower target.

I was stressing a lot the internal management. On the right part of the exhibit, you may have, let's say, a note of detail, additional detail. There has been EUR 1.5 billion that have been worked during, let's say, decrease in the total position. You have a detail in the bottom right. In terms of recovery rate, we had 6.1% in the bottom, the orange one, of recurring rate of bad loans, 7.6% or 8.1% excluding definition of default in the total NPEs. But on top of that, we had very important increase [in the back of] performing that went from 3% in this quarter, from 3% to 4.7%.

Page 14, we have (inaudible) of the capital ratio fully loaded. It went up to 12.09%. Somebody is asking, "Why not a little bit up more than 12.09%?" The reason why that we have some components, I mentioned one, the corporate bond diversification, something -- small pieces related to the selling of the NPEs, something, let's say, in other component relevant to the hedging. But as a matter of fact, this is, in my opinion, perfectly planned and is consistent with the guideline that we gave from this moment to be above 12%, also including the absorption of future component of the TRIM. Then when the TRIM is coming, I don't know, like we say, immediately answering a potential question. But our guideline on the 12% or doing everything to be above the 12%, [absorbing] additional components remain the same. The total capital obviously had an important increase. This is due also to the issuance of the Tier 2 debt I was mentioning before.

Page 15, the business outlook. The commercial strategy, which enabled the bank, thanks to the discipline in pricing, to minimize the impact of net interest income resulting from negative market interest rates and to largely offset it with an important growth in fees and commission income, is again confirmed for the last part of the year. So we are sticking to our pricing discipline. We have seen that our NII performance in relative terms compared to the others has been -- as one, if not the best one, in the top banks. And so we stick to that, obviously helped from the outstanding performance of the fee-based part of the story. The positive trend to contain operating expenses will continue.

Finally, the group will continue with its aggressive reduction of nonperforming exposures by means of internal management and the conclusion of the disposal of the last tranche of UBI Leasing's bad loan positions. In addition to that -- to this, as I was saying before, an operation to dispose of residential mortgage bad loan positions amounting to approximately EUR 800 million with securitization is under examination and to be completed possibly by the end of 2019.

Thank you for your attention. I'm ready to take questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) The first question comes from Ms. Azzurra Guelfi of Citigroup.

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Azzurra Guelfi, Citigroup Inc, Research Division - VP [2]

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Two questions. One is on the NPL disposal and the other one is on the tiering. As per the tiering, which is easier, can you give us some color now that the detail have been disclosed? Or what could be an impact for you? And what is your policy about the ECB liquidity position? The second one is on the NPL disposal. And here, I would like to be a bit of a devil's advocate. I perfectly know your stance on your bank coverage level and everything. But these losses that you have booked related to this NPL disposal could not maybe interpreted also as some need of coverage adequacy? And if you can give color on this.

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Victor Massiah, Unione di Banche Italiane S.p.A. - CEO, GM & Director [3]

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Yes. Regarding this last question, Azzurra, we do have some very rough element that we can share together. We have, at the end of the day, [dropped] something like EUR 2.2 billion year-on-year, EUR 2.1 billion, EUR 2.2 billion year-on-year with an additional cost. If you add the different components still year-on-year, an additional cost in the area of EUR [160] million. This means that if you make, let's say, a percentage of that is below 8%. If you consider that some component of this were sales, in other words, [internal] recovery, I think that this is quite an interesting number because it says to you that actually if you give up the profit of the buyer for the component that we sold and you add together some normal expenses that are taking place during this type of things, I think that the figure is actually saying the opposite of that. Substantially, we are doing pretty well. Because when you [save some,] so you go definitely double digit above 10% for sure. This means that when we recover ourself, it's almost no impact. And so it's rough. Obviously, it's very rough. But at the end of the day, I [thought] the market to keep exactly the opposite. So we have been doing a significant sale without any particular impact on the CET1, which I think is very valuable that should be taken account of and which is also from an economical point of view, not such a significant cost.

On the tiering one, obviously we are still building up our industrial plan. And substantially, we are not obviously still ready to publish that. And I will say we will be quite opportunistic on that when we see also the behavior of the others. As per today, we have removed the component of the TLTRO2. And at the same time, I can share with you that, and I'm saying unfortunately, I'm not proud of this, there had been some evenings where our accounting vis-à-vis was above EUR 10 billion. So we are in a mood to optimize, more or less. And if you want to see where we are, in Page 25, we have some data regarding the excess liquidity on this, which should be accounted. It's EUR 11.8 billion that has been the peak. So it's a question of being opportunistic. And this will come together with the plan in terms of declaration to the market.

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Operator [4]

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Our next question, sir, is from Antonio Reale of Morgan Stanley.

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Antonio Reale, Morgan Stanley, Research Division - Equity Analyst [5]

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I have two questions for me, please. One, on the NII, which I think where pricing on lending rates clearly has allowed you to be resilient when it comes to commercial margins. But this has come at the expense of loan growth, which have now dropped for about 7 consecutive quarters. So my question is for how much longer do you think you can afford leaving some market shares on the table to defend margins? And also, what do you expect the headwinds to be in light of the NPL pattern you've announced today? Second question, on the stock of NPE, I mean you've done a very good job here. You reduced the stock sharply. You're now almost [at] 9% on a pro forma basis, of which 4% of this is unlikely to pay. So I was wondering what your strategy here is in margin, the stock of UTP also in light of the regulatory environment we're in.

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Victor Massiah, Unione di Banche Italiane S.p.A. - CEO, GM & Director [6]

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Sure. Thanks for your comments, by the way. Regarding the NII, we have -- of course, it's an arbitrage, it's a tradeoff with loan growth. The first, very draft data that we have on market share, because we have some data, but still we don't have the official Bank of Italy data for this quarter, appear to tell us that we are not losing market share anymore. But unfortunately, there is also a weakness in the demand. It's not only just [ourselves]. So it's going to be a very interesting couple of quarters in front of us to understand if there is or not an important -- a continuous lack -- miss on market share, a decrease in market share. So actually, if the unofficial data is going to be confirmed, our strategy seems actually to be reinforced in a way by the last dynamics. I have also to stress maybe it's inelegant that the second [one] performance on a yearly basis on the NII among the top banks is, if I'm not wrong, 3 percentage point lower. So at the end of the day, why not? Also because there is not a desperate call from our corporate clients. I mean the corporate clients are full of liquidity. And we must not ignore that the market is swimming in liquidity. So we must also be [cautious] of the fundamentals of the environment.

But let me assure you that we ask ourselves since we have, in a way, a contrarian strategy, we ask ourselves every single day and we monitor. And let me assure you that if we have [surmised] that it's not paying anymore, we will obviously not be fundamentalists. We look at the fundamentals of the market, but we are not fundamentalists. And if we realize that this is not paying anymore, we will change. However, honestly, my hope is reverse. My hope is that looking again at the NII dynamics, maybe we will see some different behaviors in the market in the opposite way because let's not forget there's nobody in the market that is defending the current pricing from a logical point of view. The current pricing is not, as a matter of fact, completely paying the cost of capital and the cost of risk. And this is a matter of fact. This is undoubtable, I think, to anybody. Sorry, I was so long on my question that I forgot the second one. Could you please...

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Antonio Reale, Morgan Stanley, Research Division - Equity Analyst [7]

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On your UTP strategy.

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Victor Massiah, Unione di Banche Italiane S.p.A. - CEO, GM & Director [8]

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Excuse me, thank you. So UTP strategy at the moment is still and mostly on internal management. We have more or less the same approach as we are having on the disposal of the NPEs -- of the SME piece of the (inaudible). What I was saying more or less, we have our pattern. And our pattern is paying very well and the [amounts] are paying very well. If somebody comes with a price that we think is reasonable, obviously again we are not fundamentalists. This has happened, for example, with this mortgages GACS transaction. We received an interesting pricing. We have analyzed that and then we decided to go. And I'm quite optimistic if I was not I would not have -- made this communication that we can finalize by the end of the year and reach the 8%.

And so same for UTPs. But we must -- obviously, the UTP is more difficult from our point of view to say, not because there is no demand. But actually, because in that case, we are giving up [our UTP] somebody that could still bounce back. And it's a customer, our customer and we stick to our customer. So it must be very special situation, very special price to give up to this connection and to this relationship with the customer. I hope I answered your question if I understood.

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Operator [9]

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Our next question is from Andrea Vercellone of Exane.

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Andrea Vercellone, Exane BNP Paribas, Research Division - European Banks Analyst [10]

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Three questions from me. The first one is on risk-weighted assets. Can you give us some color as to why they have increased so much in the quarter despite loans being down quarter-on-quarter? You stated some more purchases of corporate bonds. But that can't explain it in full because it's not the same amount. So there's something there that moved it. Linked to this, on the corporate bonds, I think the answer is obvious, but I'd like you to confirm it. The yield you get from the corporate bonds, I suppose it's higher than what you would get on a sovereign bond in the same country. But I'd like to confirm. And the third one is just if you have anything to flag in terms of a possible regulatory drag on capital for Q4 2019, whether it's a PD and LGD updates or something else?

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Victor Massiah, Unione di Banche Italiane S.p.A. - CEO, GM & Director [11]

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Yes. I give you more color on that. First of all, yes, the corporate bonds do have a much higher weight. And again, you are right, Andrea. This is not explaining everything. There is a component that we made in terms of a lending to the, let's say, let's call it guarantee fund. This is made by a few banks in the system. And of course, on some banks much bigger than us, since we made more or less the same amounts, for some banks much bigger than us, the relative increase of the weight is marginal. And we are much smaller (inaudible). And obviously, this is weighs more. But there has been an important line to fund [or to] the guarantee fund that has been a component. Third is, as I was saying before, some components regarding the hedge -- hedging activities that do have increased their weight due to the market dynamics. These are the 3 components. None of them, as you perfectly said, is justifying the amount. But altogether, they do justify the amount. So again, they can go up, they can go down. I mean, if needed, we can sell corporate bonds in 1 day. So let me say that we have, with the exception of the lending to the guarantee fund, we've [settled] that we can, in a way, be flexible in the future.

Regarding your question on the future dynamics in terms of regulatory, we are taking in consideration this dynamics when we say that we stick to the guideline of having not absorbing all of these in the [near] future without giving up the 12% component and obviously hoping [there] will be much more profitability in the fourth quarter of not having all the special things. And so being able also to, let's say, to defend from a stronger position this 12%, which again is our new ceiling. Then in the industrial plan, when we will present it, we will show how we can go higher than that. But previously also put it in relative terms, we were coming from 11.30% and now today, for just a few basis points that go up or down for some not-so-relevant situation, we are making some discussion. I think that in relative terms, our direction is pretty obvious. We are doing -- we are going in the right direction. Don't get too much [in love] with a few points.

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Andrea Vercellone, Exane BNP Paribas, Research Division - European Banks Analyst [12]

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And on my curiosity on the yield on the corporate bonds, it's safe to assume it is higher than what you will get on the sovereign bond, right?

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Victor Massiah, Unione di Banche Italiane S.p.A. - CEO, GM & Director [13]

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No, no, no, Andrea, it's obvious, actually. We obviously -- and that's why I'm talking about also flexibility. It's a type of tool that obviously if the market is reasonably stable, it's a type of tool that allow us to arbitrage on the situation on the market. And so if the situation of the market is such that there is a lower demand and there's some competition, some competitive situation go, if I may, crazy, then let's go, let's say, in a more international market and go for that. Obviously, if you put together the yield, the consumption of capital, there are some situation where the tradeoff goes for the corporates and situation where it goes for the lending. But let's say, the convenience of this tool is that you can get and drop [in] a reasonably short term.

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Operator [14]

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The next question is from Giovanni Razzoli of Equita.

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Giovanni Razzoli, Equita SIM S.p.A., Research Division - Financial Analyst [15]

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Three questions. The first one, sorry, is probably I didn't get the exactly the messages from the call. But in the trading income, you mentioned in the press release, there are EUR 90 million of losses that are related to NPL disposals. I was wondering whether this reflects past disposals, new disposal or what kind of portfolio are you talking about. And related to this, in the press release, you mentioned you had EUR 11 million of losses on trading activity. So you can give us an idea of what is the driver of this performance.

And then last question, you said that you are about to activate the GACS on EUR 800 million of NPLs by year-end. Is it fair to assume that you will suffer another EUR 8 million to EUR 9 million of higher negative IFRS impact in the Q4? These are mortgages, if I'm not mistaken, the previous transactions you have made were unsecured loans, so the impact should be lower in terms of IFRS 9. But if you can share with us your thoughts.

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Victor Massiah, Unione di Banche Italiane S.p.A. - CEO, GM & Director [16]

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Thank you, Giovanni. First of all, I'll answer to the last question. No, there could be some marginal component of IFRS 9 on these sales, but it will be not comparable with what we have done on the leasing company on the previous disposal. Second, regarding -- if you ask me if there were some component of the future sale in this quarter, let's put it this way. When we announced it, we make also, from the accounting point of view, a statement of probability. Compare the (inaudible) I can give you, given the probability, we have, let's say, posted some component of that. So in a way, it's not a very [long] one. And so be aware that, as I was saying before, the reason why I was saying that we expect a higher profitability on the last quarter is because also an important component of the future loss -- of the future sale has been already posted, [given] the probability. Happy again -- excuse me, Laura, there was the trading income. What was the question? What we did in terms of...

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Giovanni Razzoli, Equita SIM S.p.A., Research Division - Financial Analyst [17]

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I have seen in the press release, you mentioned EUR 11 million of losses from attività di negoziazione. So if you can clarify what is...

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Victor Massiah, Unione di Banche Italiane S.p.A. - CEO, GM & Director [18]

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Now here, I'm sorry to probably bore most of the audience. But be aware that we have also the gold business. Now the gold business has some components in this voice of the negotiation and other components -- and other fee components. Actually, it's something that we had to get used to. And depending on the floating, you may have loss in the negotiation. That is perfectly compensated in another component in the balance sheet in attività di negoziazione. So the 2 things go together. So don't get in love with that. It has nothing to do with the traditional portfolio management that is due to the activity of gold that we have inherited by Banca Etruria. Sorry, I forgot to say that. And I hope I speak clear. Then Laura will give you all the details.

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Giovanni Razzoli, Equita SIM S.p.A., Research Division - Financial Analyst [19]

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But any -- yes, that's clear. But the headline statement is quite difficult to interpret. You see EUR 11 million of losses. You don't link it to the gold business, I mean, with the calculations. So I suggest a classification and so on or something like that.

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Victor Massiah, Unione di Banche Italiane S.p.A. - CEO, GM & Director [20]

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Yes, yes, yes. And apologies for that if it was not enough clear. We're going to get used to include also this part of the business. We are [learning] ourselves on this one that was inherited. So you are perfectly right. Did I miss any question you asked me?

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Giovanni Razzoli, Equita SIM S.p.A., Research Division - Financial Analyst [21]

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No, no, no, that's all.

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Operator [22]

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(Operator Instructions) Mr. Massiah, there are no questions registered at this time, sir.

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Victor Massiah, Unione di Banche Italiane S.p.A. - CEO, GM & Director [23]

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So let me thank everybody to have been participated to the conference, and I wish you a beautiful weekend. Thanks, everybody.

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Operator [24]

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Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.