Banca Generali S.p.a. · MIL:BGN
Banca Generali — 9M 2015 Earnings Presentation
31 slides from Banca Generali's earnings presentation, Oct 29, 2015
Slide 1: 9M 2015 Results and Business Update
9M 2015 Results and Business Update 29 October 2015
Slide 2: 9M 2015 results: key remarks
9M 2015 results: key remarks 3Q 2015 results: key remarks Ongoing projects Back-up information Banca Generali 9M 2015 Results and Business Outlook 2
Slide 3: Best results for ALL KPIs
Best results for ALL KPIs ... … leading to best net profit ever (even higher than 2014 full year) TOTAL ASSETS €39.3bn (+17% yoy) Net profit 166.1 ASSET MIX Managed products at 76% of tot. 132.4 105.1 +26% NET INFLOWS €3.0bn (organic growth) 97.5 RECRUITING 86 new professionals 51.2 MANAGEMENT FEES
Slide 4: 9M 2015 results: key takeaways
9M 2015 results: key takeaways (€ m) 9M14 * 9M15 % Chg Total Banking income up by 11% driven by: Net Interest Income 82.3 51.3 -37.7% • Solid * trend in management fees (€341m, +30%) Gross fees 353.6 491.3 39.0% driven by asset expansion and better product mix Fee expenses -157.3 -202.0 28.4% • NII
Slide 5: KPIs: assets and product mix
KPIs: assets and product mix Growing market share and improving mix + €14bn in 3 years Banca Generali’s share of Italian 39.3 household financial wealth 33.6 >1.00% 28.2 25.5 0.93% 30.0 25.1 (76%) (75%) 0.76% 17.6 20.4 (69%) (72%) 0.69% 7.9 7.8 8.5 9.3 (€ bn) (24%) (31%) (28%) (25%) 9M12 9M13 9M14 9
Slide 6: KPIs: net inflows
KPIs: net inflows Strong 2015 trend on top of 2012-14 record NNM € 9.8bn € 3.0bn • Strong 2015 YTD net inflows (8.2% of starting assets in 9 months) 1,900 • c.90% of 2015 YTD net inflows generated by managed products 3,014 • 100% of net inflows from Italian retail 2,260 customers 1,602 4,024 • 100%
Slide 7: KPIs: recruiting
KPIs: recruiting Recruiting capacity … exclusively targeting more than doubled … high-profile professionals 22.4 No. of recruits per year Portfolio per recruit 86 vs. sector average 76 +44% 57 15.6 40 +115% (€m ) 9M12 9M13 9M14 9M15 Sector avg. portfolio Avg. portfolio of new size recruits Banca Gen
Slide 8: KPIs: management fees
KPIs: management fees Management fees driven by higher assets and better mix 1.52% 1.51% • Management fees are up by 30% YoY and they almost 1.48% doubled in the last three +30% years (+83%) 1.45% 340.5 • Management Fee margin at 261.9 1.52% (+7 bps in the last 217.1 three years) on fee-bearing 185.
Slide 9: KPIs: cost control
KPIs: cost control Operating costs/Total assets Cost/Income 58.6% 0.59% 0.54% 0.51% 42.0% 0.45% 40.3% 0.42% 35.4% 32.5% 2011 2012 2013 2014 9M15 9M11 9M12 9M13 9M14 9M15 • Effective operating leverage: costs well under control regardless of the sharp increase in size • 2014/15 costs also included €1
Slide 10: KPIs: capital ratios
KPIs: capital ratios Excess Capital CET1/Tier1 Ratio Total Capital Ratio (phased-in ) 1,2 (phased-in) 1,2 187.1 14.2% 14.8% 15.1% 13.4% 14.2% 157.9 12.2% 144.3 2013 2014 9M15 2013 2014 9M15 2013 2014 9M15 (€ m) Excess capital at €187.1m • Capital ratio on a B3 fully-loaded basis3: CET1/T1 ratio at 1
Slide 11: 9M 2015 results: key remarks
9M 2015 results: key remarks 3Q 2015 results: key remarks Ongoing projects Back-up information Banca Generali 9M 2015 Results and Business Update 11
Slide 12: 3Q 2015: challenging financial markets, but…
3Q 2015: challenging financial markets, but… 3Q15 - EQUITY INDEX PERFORMANCE Stoxx 600 -8.8% DAX -11.7% FTSE 100 -10.8% S&P -7.2% BOVESPA -15.3% MSCI World -9.1% -8.8% Banca Generali 9M 2015 Results and Business Update 12
Slide 13: … Banca Generali continues its history of growth…
… Banca Generali continues its history of growth… Q3 Net inflows (split by product) 780 • Higher volumes: 3Q15 net inflows 770 proved higher than last year despite 115 much less favorable financial (84) markets • Excellent mix: 3Q15 net inflows mix 505 432 remain excellent with 90% invested in manag
Slide 14: … increasingly appealing for professionals…
… increasingly appealing for professionals… 3Q net additions • Acceleration in the n° of new recruits +250% 28 even during summer months, proving 25 Banca Generali’s solid appeal in the sector 20 • Fast approaching the 100 new recruits target by year-end 8 • Banca Generali voted No.1 in the sector f
Slide 15: … focusing on revenue sustainability…
… focusing on revenue sustainability… Recurring fees (management, entry, banking) • Total recurring fees increased by 391.1 15% in Q3 with management fees +25% representing 92% of total (vs. 85% in 24.4 312.4 9M14) 26.9 • Entry fees discounting a lower +15% placement of bonds in Q3 127.3 340.5 • Ban
Slide 16: … even with volatile financial markets…
… even with volatile financial markets… Quarterly management fees 116.1 116.9 (€m) 107.6 97.4 93.9 86.2 78.9 81.8 +25% 75.5 72.8 68.8 65.8 62.8 58.2 61.2 61.5 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Avg. managed 22.8 24.1 24.5 25.1 25.8 26.6 27.4 27.8 28.7 29.
Slide 17: … with a tight cost discipline
… with a tight cost discipline Operating costs +2.0% • 3Q G&A: -16%: the sharp decrease 120.3 122.7 reflects cost optimisation actions: • renegotiation of outsourcing contracts 55.7 59.7 • higher IT efficiency -2.6% • corporate reorganisation 41.9 40.8 • Staff costs: twofolds drivers: on one hand, h
Slide 18: … further improving capital ratios
… further improving capital ratios Total Capital ratio 0.5% 15.1% • Higher capital ratios reflecting the 14.6% increase in regulatory capital • Excess capital on a fully-loaded basis at €201.4m 1H 2015 3Q 2015 9M 2015 CET1 Excess Capital 9.7 187.1 0.5% 13.4% 177.4 12.9% (€ m) 1H 2015 3Q 2015 9M 2015
Slide 19: Ongoing projects
9M 2015 results: key remarks 3Q 2015 results: key remarks Ongoing projects Back-up information Banca Generali 9M 2015 Results and Business Update 19
Slide 20: Ongoing business initiatives: investing for the future
Ongoing business initiatives: investing for the future Product innovation Banca Generali’s current business actions to further reinforce its strategic 360° wealth management positioning and its business proposition Business efficiency Banca Generali 9M 2015 Results and Business Update 20
Slide 21: Product Innovation (1/2): GP Solutions
Product Innovation (1/2) GP Solutions: a revolution for discretionary accounts Wide range of core/protection • Tailor-made investment tool, with ‘CORE’ Allocation investment lines 60% customers free to choose: • weighting of 18 different ‘SATELLITE’ Wide range of satellite/growth investment lines (s
Slide 22: Product Innovation (2/2)
Product Innovation (2/2) Further expanding offer in the Alternative space… • 2014: access to liquid alternative strategies distributed in Italy through BG STILE LIBERO • 2015: further extending offer of liquid alternatives with mandates within BG SICAV • 2016 (I): launch of two new sub- funds within
Slide 23: BG Advisory: a major business model upgrade
360° wealth management BG Advisory: a major business model upgrade • Expanded scope of advisory - not just investments but also the entire customers wealth • Enhanced role of the Financial Advisors – strengthening ties with the customers • Differentiating service from traditional retail banks – FA u
Slide 24: Focus on exploiting digital world opportunities
Business efficiency Focus on exploiting digital world opportunities • Digital tools according to Banca Generali • ‘FA-centric’, i.e. reducing low- value added activities, thus improving the quality of time spent with customer • Tailor-made, i.e. fitting to customers habits and needs • Mobile first,
Slide 25: Conclusions
Conclusions Product innovation Banca Generali aims to be the No.1 choice for 360° wealth management Customers Financial Advisors Business efficiency Investors Banca Generali 9M 2015 Results and Business Update 25
Slide 26: Back-up information
9M 2015 results: key remarks 3Q 2015 results: key remarks Ongoing projects Back-up information Banca Generali 9M 2015 Results and Business Update 26
Slide 27: NII trend in line with guidance
NII trend in line with guidance Net Interest Income (NII) Management of banking business aimed at carefully avoiding risks 82.3 51.3 56.0 • NII represents 14% of total revenues vs. 25% in Core 9M 2014, with the change linked primarily to the 48.2 business LTRO expiry (€ m) 26.3 • Growing contributio
Slide 28: Steady growth in recurring profitability
Steady growth in recurring profitability Solid trend in recurring profitability 1.67 1.43 1.46 1.50 • Recurring fee margin at 133 bps (+3 bps YTD entirely driven by 0.34 0.16 0.18 management fees) 0.20 0.10 0.09 0.12 0.08 0.11 0.11 0.11 0.11 • Contribution from performance fees is deflating after 1H
Slide 29: Solid asset expansion
Solid asset expansion Well-diversified product mix • Total assets at €39.3bn, +17% yoy driven by managed products (€30bn, +17% 39.3 +20%) 33.6 • Share of managed assets at 76% of 10.5 total assets (vs. 69% in 9M12) 9.5 3.6 +288% • o/w 35.8% pure managed products 3.6 4.7 1.2 • o/w 40.5% in insurance
Slide 30: Lux-based SICAVs
Lux-based SICAVs Asset split by investment strategy Total Assets 4% 12% 3% 13% 16% 10.8 52% +64% 8.8 +22% Equity EM Bond & liquidity 6.6 Multi-asset funds Equity Global & Thematic Equity DM Real assets 8.7 Data as of September, 30 2015 7.3 In-house vs. third-party 5.8 18% ( €bn ) 1.5 2.1 0.8 82% 201
Slide 31: Disclaimer
Disclaimer Investor Relations Contacts Banca Generali Investor App Giuliana Pagliari Investor Relations Officer Phone +39 02 6076 5548 E-mail: giuliana.pagliari@bancagenerali.it E-mail: investor.relations@bancagenerali.it Corporate Website : www.bancagenerali.com The manager responsible for preparin