Banca Generali S.p.a. · MIL:BGN
Banca Generali — Q1 2019 Earnings Presentation
30 slides from Banca Generali's earnings presentation, May 8, 2019
Slide 1: 1Q 2019 Results
1Q 2019 RESULTS 8 MAY 2019 SY BANCA dios. GENERALI
Slide 2: Agenda
AGENDA Preliminary remarks 1Q 2019 results Net Inflows, assets and recruiting Business Update Appendix 2
Slide 3: Executive Summary
EXECUTIVE SUMMARY Strong business expansion Sound asset growth (€61.1bn, +€4.7bn YoY) with managed assets at 74% of total. Pro-forma TOTAL ASSETS assets - including Valeur, Nextam - well above €63bn. Sharp acceleration in assets under advisory to €61.1bn €3bn (+76% YoY, +31% YTD). (vs. €56.4bn)
Slide 4: Preliminary Remarks: New Accounting Principle IFRS 16
PRELIMINARY REMARKS NEW ACCOUNTING PRINCIPLE: IFRS 16 NEW ACCOUNTING PRINCIPLE IFRS 16 IFRS 16 is the new accounting standard for lease contracts1. It has become effective from January 1, 2019. The new accounting principle has a limited negative impact on P&L (€0.4m net of tax) with re-classific
Slide 5: 1Q 2019 Results at a Glance
FY 2018 RESULTS AT A GLANCE KEY TAKEAWAYS * Comments (€ mln) 1Q 18 1Q 19 % Chg 1Q 19 % Chg Solid increase in Total Banking Income (17%) IFRS 16 Net Financial Income supported by a growing contribution from Net Interest Income 13.2 16.7 26.3% 15.9 19.9% NII (+20%) even after the negative impact fro
Slide 6: Net Profit
NET PROFIT SOLID PROFIT RECOVERY Net Profit build-up m/€ 3.5 (2.5) (3.9) 1.7 16.4 (0.1) 66.6 Recurring profits (0.5) 2.5 (3.4) 1.1 (-1.2) were stable, fast Ongoing Write-ups IFRS 15 and recovering the IFRS 16 49.0 reinvestment Temporary One-off costs on IFRS 9 Lower unfavourable 4Q18 of liquidity dr
Slide 7: Agenda
AGENDA Preliminary remarks 1Q 2019 results Net Inflows, assets and recruiting Business update Appendix 7
Slide 8: Net Financial Income (1/2)
NET FINANCIAL INCOME (1/2) GROWING NII DESPITE HEADWINDS FROM NEW IFRS 16 Net financial income m/€ 28.5 19.9 Solid increase in NII partly offset by 15.2 17.8 IFRS16 first time adoption (€0.85m Trading gains 4.0 charge). 2.1 Net interest income NII increase linked to higher return of 15.7 16.7 15.9 b
Slide 9: Net Financial Income (2/2)
NET FINANCIAL INCOME (2/2) SHARP YIELD IMPROVEMENT FROM REINVESTMENTS Total assets and interest-bearing assets1, bn/€ Maturity (Bond) Duration (Bond) 9.7 10.0 8.8 Other assets 0.9 3.5 3.4 1.1 1.5 2.0 1.8 Loans to banks & 1.8 1.8 1.8 1.2 other liquidity 1.7 1.0 1.4 Loans to Clients Financial assets 5
Slide 10: Gross Fees (1/3): Management Fees
GROSS FEES (1/3): MANAGEMENT FEES FULL RECOVERY COMPLETED IN MARCH Management Fees m/€ Management fees Monthly trend 52.8 52.3 Management fees and 51.6 158.1 155.5 margins steadily 155.0 50.6 recovering from 4Q 2019 lows due to financial markets’ downturn Dec.18 Jan.19 Feb.19 Mar.19 Average AuM Mont
Slide 11: Gross Fees (2/3): Other Fees
GROSS FEES (2/3): OTHER FEES GROWING CONTRIBUTION, GROWING DIVERSIFICATION Banking and Entry Fees m/€ 17.8 17.5 Entry fees from certificates were steady in the 16.6 quarter while posting a sharp acceleration in April 5.8 4.6 with €40m new issues out of total €96m in 4M19. 5.0 Other entry fees suffer
Slide 12: Gross Fees (3/3): Performance Fees
GROSS FEES (3/3): PERFORMANCE FEES POSITIVE FINANCIAL PERFORMANCE HARVESTING Performance Fees m/€ Performance 35.2 Performance fee in the Fees quarter at 8 bps on m/€ managed assets (32 bps on an annualised basis) 7.6 2.0 1Q18 4Q18 1Q19 New performance fees On calculation mechanism 0.07% 0.02% 0.32%
Slide 13: Fee Expenses
FEE EXPENSES MOVING TOTAL PAY-OUT LOWER Total Fee Expenses m/€ Pay-out to the network % 49.2% 49.0% Ordinary pay-out higher on a one-off item (50bps) related to the 96.7 36.7 37.1 indemnity mechanism 94.3 11 9 0.5 for FAs’ retirement and 12.5 11.4 on seasonality (higher 22 20 weight of social-securi
Slide 14: Operating Costs (1/2)
OPERATING COSTS (1/2) INCREASE LINKED TO ACCELERATION OF KEY PROJECTS Total operating costs m/€ Breakdown of core operating costs m/€ 53.3 IFRS 16 Accounting 50.0 49.7 Restatement 46.5 3.6 46.9 46.5 3.5 43.1 3.0 0.3 2.4 3.4 2.0 6.8 Higher depreciation 2.8 2.7 (+ €4.4m) 17.9 2.8 Sales Personnel 18.3
Slide 15: Operating Costs (2/2)
OPERATING COSTS (2/2) HIGH EFFICIENCY LEVELS CONFIRMED Operating costs/total assets Cost/Income ratio 53.4% 0.51% 53.9% 52.6% 52.3% 51.1% 46.5% 0.45% 0.42% 39.9% 42.3% 40.3% 41.0% 40.2% 0.38% 38.1% 41.7% 0.34% 0.34% 0.33% 32.4% 2013 2014 2015 2016 2017 2018 1Q19 2013 2014 2015 2016 2017 2018 1Q19 1
Slide 16: Capital Position
CAPITAL POSITION SOLID CAPITAL REAFFIRMED AFTER IFRS16 ONE-OFF CHARGE CET1 ratio TCR ratio (0.9%) 19.0% (1.0%) 18.0% 17.5% 16.6% CET1 ratio and TCR ratio incorporated a one-off charge of 80bps and 87bps, respectively linked to the first time application of the IFRS 16 Accounting principle 2018 1Q19
Slide 17: Agenda
AGENDA Preliminary remarks FY 2018 results Net Inflows, assets and recruiting Business update Appendix 17
Slide 18: 1Q 2019 Total Assets
1Q 2019 TOTAL ASSETS VOLUMES AND PRODUCT MIX Total Assets bn/€ Managed Solutions bn/€ 61.1 57.5 28.2 27.3 29.0 56.4 5.9 5.5 6.0 7.7 7.7 8.4 29.0 27.3 7.1 6.4 6.5 28.2 7.4 7.7 8.1 Managed solutions 1Q18 2018 1Q19 Traditional life policies 16.0 Insurance wrappers Financial wrappers 15.4 Banking produc
Slide 19: 1Q 2019 Net Inflows
1Q 2019 NET INFLOWS VOLUMES AND PRODUCT MIX Total net inflows by New Assets under Net inflows bn/€ acquisition channel m/€ advisory bn/€ 3.0 45% 29% 2.3 1.6 1.4 32% 1.7 0.1 0.8 0.9 0.5 75% 0.2 64% 58% 0.2 0.7 0.8 0.6 -9% -10% -4% 1Q18 4Q18 1Q19 1Q18 2018 1Q19 1Q18 4Q18 1Q19 Managed solutions New rec
Slide 20: FAs Network
FAS NETWORK STEADY QUALITY GROWTH FA Network Recruitment trend (# of Recruits) (# of Recruits) 1,985 2,001 161 1,936 153 1,841 1,715 126 1,645 1,475 102 105 94 122 81 92 20 73 75 50 59 19 31 34 39 32 9 27 10 2013 2014 2015 2016 2017 2018 1Q19 2013 2014 2015 2016 2017 2018 1Q19 73.5% 79.5% 83.0% 85.3
Slide 21: April 2019 Net Inflows
APRIL 2019 NET INFLOWS STRONG COMMERCIAL DATA Total net inflows, monthly trend m/€ Recruiting, monthly trend (# of new recruits) 1,956 195 26 621 545 1140 7 125 81 339 4M19 April 19 4M19 new recruits April 2019 Banking products Traditional life policies Managed solutions 21
Slide 22: Agenda
AGENDA Preliminary remarks FY 2018 results Net Inflows, assets and recruiting Business update Appendix 22
Slide 23: Lux-Based Assets
LUX-BASED ASSETS ASSETS AT ALL-TIME HIGHS BG FML - LUX-based assets bn/€ 15.5 15.3 15.1 Strong BGFML performance in 15.2 14.8 1Q19 (+7.2%) further accelerating in April (+9.4% YTD) 14.1 Total BGFML1 Assets New Sicavs (LUX IM & BG 1Q18 1H18 9M18 FY8 1Q19 4M19 Alternative) growing fast and already rep
Slide 24: New SICAV: LUX IM
NEW SICAV: LUX IM PRODUCT STRATEGIES AND PRICING LUX IM Asset Breakdown Pricing by Asset Class LUX IM vs. Peers1 Lux IM currently offers 51 different investment strategies, many of them MAX 3.1% 25% developed on an exclusive basis for 32% 2.2% Banca Generali. New launches in 4Q19 2.0% 8% The 15 best
Slide 25: Digital Touchpoints
DIGITAL TOUCHPOINTS DELIVERY IN PROGRESS Being disruptive in relation to the Clients 100% digital onboarding process LIVE - account opened in 15-20 minutes Mobile Banking App LIVE - innovative customer experience and new features, amongst others: vocal interaction, Apple pay and Samsung pay inte
Slide 26: Strategic Projects
STRATEGIC PROJECTS DELIVERY IN PROGRESS Closing expected by June-July 2019 High interest and positive feedbacks from local financial business community Closing expected by June-July 2019 Roadshow scheduled in May in order to present to the FAs network the new portfolio management lines devel
Slide 27: Agenda
AGENDA Preliminary remarks FY 2018 results Net Inflows, assets and recruiting Business update Appendix 27
Slide 28: New Accounting Principles IFRS15 & IFRS 16
NEW ACCOUNTING PRINCIPLES IFRS15 & IFRS 16 DETAILS ON RECONCILIATION * Comments Delta vs. Delta vs. (€ mln) 1Q 18 1Q 19 1Q 19 1Q 19 IFRS 15 & LfL IFRS 16 First Time Adoption of IFRS 16 IFRS15 Accounting Standard (IASB) LfL IFRS15 IFRS16 Net Interest Income 13.2 16.7 16.7 15.9 -0.85 Net income (loss)
Slide 29: Disclaimer
DISCLAIMER The manager responsible for preparing the company’s financial reports (Tommaso Di Russo) declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law of Finance, that the accounting information contained in this presentation corresponds to the document results, books and a
Slide 30: Upcoming Events
UPCOMING EVENTS JULY Investor Relations Su Mo Tu We Th Fr Sa Giuliana Pagliari 1 2 3 4 5 6 Investor Relations Manager 7 8 9 10 11 12 13 Phone +39 02 408 26548 1H 2019 results Mobile +39 331 65 30 620 14 15 16 17 18 19 20 & Investor Conference Call 21 22 23 24 25 26 27 E-mail: giuliana.pagliari@banca