Banca Generali S.p.a. · MIL:BGN
Banca Generali — Investor Presentation (April 2019)
29 slides from Banca Generali's investor presentation, Apr 8, 2019
Slide 1: Investor Presentation
INVESTOR PRESENTATION 8 APRIL 2019
Slide 2: Agenda
AGENDA 1 BANCA GENERALI AT A GLANCE 2 BG KEY FINANCIALS 3 BG STRATEGIC AMBITION 4 CLOSING REMARKS 2
Slide 3: Banca Generali: A Success Story
BANCA GENERALI: A SUCCESS STORY ONE OF THE FASTEST GROWING COMPANIES IN THE ASSET GATHERING BUSINESS PHASE 1 PHASE 2 New management team Multi-year strategic network repositioning New service model: implementation of WM approach and listing on the Italian and new digital mindset Stock Exchange 55.7
Slide 4: Best FAs Quality in the Industry
BEST FAS QUALITY IN THE INDUSTRY CONSTANT GROWTH IN FAS PORTFOLIO Average FAs portfolio (Asset per Financial Advisor) m/€ Best Player ex BG Assoreti (ex BG, ISPB) Banca Generali 28.8 29.0 25.8 24.3 22.2 24.3 23.2 19.7 22.0 18.0 20.7 16.6 15.8 18.3 18.5 18.7 15.6 15.9 16.1 15.9 16.8 14.5 16.0 16.4 15
Slide 5: BG: The Fastest Growing Company Among Top Players
BG: THE FASTEST GROWING COMPANY AMONG TOP PLAYERS GROWING MARKET SHARE Assoreti – Financial networks in Italy bn/€ 5Y growth 1 106.4 +27% Assoreti sector is a highly 67.5 +43% concentrated industry: top 6 players in market share 59.9 +65% with over 90% 57.5 +98% Market share of Assoreti In Itali
Slide 6: Extensive Product Offer
EXTENSIVE PRODUCT OFFER GREATER DIVERSIFICATION OF ASSET MIX Asset mix 2018 Total Assets 57.5 bn/€ Fully open architecture (Over 5,400 Traditional Life Insurance different retail funds and 50 asset managers offering Clients a wide array of choice) 1 In-House Funds 25% 12% Retail funds distributi
Slide 7: Fully Integrated Wealth Management Approach
FULLY INTEGRATED WEALTH MANAGEMENT APPROACH EXPANSION OF ADVISORY PERIMETER TO FINANCIAL AND NON FINANCIAL WEALTH Advanced Advisory Model (financial + non financial) Focus on Real estate Advisory: • Strategic analysis of real estate wealth Real Financial • Valuations estate assets • … Agency • D
Slide 8: Best in Class Proprietary Digital Tools for the FA Network
BEST IN CLASS PROPRIETARY DIGITAL TOOLS FOR THE FA NETWORK OPEN BANKING APPROACH BG Store Wealth Advisory Portal Digital Collaboration Simplicity and completeness of the Deep-dive analysis Paperless Approach tool for FAs’ needs The advisor digital desk with a multi-device approach A wide range o
Slide 9: Growing Recognition in the Private Banking Space
GROWING RECOGNITION IN THE PRIVATE BANKING SPACE KEY AWARDS CONFIRMING QUALITY AND PERSISTENCY First for FAs’ Satisfaction1 Second private bank in Italy by brand equity, according to PB Monitor2 "Best Financial Advisory network in Italy five years in a row" 2013 2014 2015 2016 2017 2018 1st in the r
Slide 10: Agenda
AGENDA 1 BANCA GENERALI AT A GLANCE 2 BG KEY FINANCIALS 3 BG STRATEGIC AMBITION 4 CLOSING REMARKS 10
Slide 11: Net Financial Income
NET FINANCIAL INCOME NET FINANCIAL INCOME HALVED SINCE LAST PEAK Net financial income m/€ Net Interest Income LTRO Trading gains 161.9 Material headwinds to 140.8 earnings growth from net 123.9 financial margin over the 19.0 54.9 past few years 12.4 37.4 95.1 93.4 40.1 79.5 84.1 Net interest inc
Slide 12: Recurring Management Fees and Banking and Entry Fees
RECURRING MANAGEMENT FEES AND BANKING AND ENTRY FEES HEALTHY GROWTH AND RESILIENT MARGINS Management Fees m/€ 634 Management fees up by 2.5x in 587 2012-18, broadly in line with 492 growth in managed assets 459 359 Slight margin erosion in 2018 296 251 linked to tough market conditions Going f
Slide 13: Recurring Fee Expenses
RECURRING FEE EXPENSES DISCIPLINE ON REMUNERATION OF FAS Recurring passive fees to FAs m/€ as % of gross recurring fees1 Passive fees to FAs - ordinary pay-out 37.1% 35.8% 35.8% 36.2% 35.7% 35.0% 35.0% The bulk of Banca Generali FAs costs is variable in nature and linked to AUM profitability 251 2
Slide 14: Operating Costs
OPERATING COSTS DISCIPLINED GROWTH IN OPERATING COSTS Operating costs m/€ Core Operating Costs1 Sales Personnel Expenses Cost/Income ratio 46.5% 42.5% 41.7% 40.3% 41.0% 39.9% 38.1% 197 Growth in core-operating 182 188 costs under control despite 176 14 166 17 the significant commercial 14 15 expan
Slide 15: Quality of Earnings
QUALITY OF EARNINGS RECURRING NET INCOME AND ROE ON THE RISE Net income m/€ 1 Non-recurring Recurring 204 204 180 Growth in recurring net 161 156 income well into double 130 141 52 137 118 digit territory 79 112 84 81 128 62 66 71 86 49 49 2012 2013 2014 2015 2016 2017 2018 Dividend € 1.25 1.25
Slide 16: Agenda
AGENDA 1 BANCA GENERALI AT A GLANCE 2 BG KEY FINANCIALS 3 BG STRATEGIC AMBITION 4 CLOSING REMARKS 16
Slide 17: BG Ambitions
BG AMBITIONS FROM 2019-21 BUSINESS PLAN 1 To consolidate our leading position in empowering the best Financial Advisors Empowering FAs (FAs) in the Italian market To be the Clients’ first choice for quality of 2 professionals, protection and value of service as well as state-of-the-art digital Clien
Slide 18: 1st Ambition: Empowering FAs (1/4)
1STAMBITION: EMPOWERING FAS (1/4) KEY PROJECTS DISCONTINUITY… …in the CONTINUITY Implementing Advisory Fee Approach Excellence in the Banking Platform Robot for Advisory solutions WM Approach Continuing innovation in AM solutions Vehicle for illiquid assets LUX IM Multi Discretionary Manda
Slide 19: 1st Ambition: Empowering FAs (2/4)
1STAMBITION: EMPOWERING FAS (2/4) ASSET UNDER MANAGEMENT 1 New Solid growth amid financial markets Lux-based volatility 7.9 Sicav bn/€ 6.6 6.0 Mifid II-friendly pricing schemes 5.1 • Cap on OCG 4.1 • New performance fee mechanism Innovative investment strategies with a new 1Q18 2Q18 3Q18 4Q18
Slide 20: 1st Ambition: Empowering FAs (3/4)
1STAMBITION: EMPOWERING FAS (3/4) ASSETS UNDER ADVISORY Advisory Services % AuA Volumes trend bn/€ 0.3 0.7 1.3 1.6 2.2 2.3 2.3 3.0 A multifaceted approach, with a 3% 3% 3% 3% focus on illiquid investments 13% 13% 16% 17% 31% 31% 30% 28% 22% 22% Starting from 2019, pure financial 22% advisory wil
Slide 21: 1st Ambition: Empowering FAs (4/4)
1STAMBITION: EMPOWERING FAS (4/4) ASSET UNDER CUSTODY Assets under Custody bn/€ New organization and new teams to strengthen the quality of the service for both FAs and Clients BG Saxo partnership – the expertise of a multi-asset trading 14.8 and investment specialist with the 12.8 aim of 11.5 9
Slide 22: 2nd Ambition: Clients' First Choice (1/2)
2NDAMBITION: CLIENTS’ FIRST CHOICE (1/2) DIGITAL FOOTPRINT Being disruptive in relation to the Clients BG Saxo – multi-level platform to offer an easy, standard or top trading experience Onboarding process 100% digital, account opened in 15-20 minutes Mobile banking App with an innovative cust
Slide 23: 2nd Ambition: Clients' First Choice (2/2)
2NDAMBITION: CLIENTS’ FIRST CHOICE (2/2) SUSTAINABILITY AS AN ALTERNATIVE APPROACH TO CLIENTS New proposition for Clients UN sustainable development goals (SDGs) New commercial approach starting from Clients’ need ESG Fund Selection Wide and growing offer: 161 ESG funds with 25 AMs Wide rang
Slide 24: 3rd Ambition: International Aspiration
3RDAMBITION: INTERNATIONAL ASPIRATION NEW GROWTH ENGINE The project aims at building a new long term growth engine, that will achieve profitability in the short term. CLIENTS MANAGED FROM ITALY Advice offered by the Italian network • BG Clients seeking for diversification of booking centers INITIATI
Slide 25: Agenda
AGENDA 1 BANCA GENERALI AT A GLANCE 2 BG KEY FINANCIALS 3 BG STRATEGIC AMBITION 4 CLOSING REMARKS 25
Slide 26: 2021 Main Targets
2021 MAIN TARGETS READY TO ACHIEVE SUSTAINABLE AND PROFITABLE GROWTH 2021 FINANCIAL TARGETS Core Net Banking Income1: ≥63 bps Core Operating Costs: 3%-5% CAGR2 Dividend: 70%-80% pay-out ratio; 2017 DPS (1.25€) set as a floor; committed to preserve strong capital ratios 2021 COMMERCIAL TARGETS Cumula
Slide 27: Strong Start to 2019
STRONG START TO 2019 1Q 2019 NET INFLOWS Total net inflows, Net new assets Total net inflows by Recruiting trend (# of new product mix m/€ under advisory bn/€ acquisition channel m/€ recruits) 100% 100% 1.6 1.4 0.7 45% 29% 45 1.0 0.6 0.3 22 75% 64% 0.8 0.6 1Q 2018 1Q 2019 1Q 2018 1Q 2019 -9% -4% 1Q
Slide 28: Disclaimer
DISCLAIMER Certain of the statements contained herein are statements of future expectations and other forward-looking statements. These expectations are based on management's current views and assumptions and involve known and unknown risks and uncertainties. The user of such information should reco
Slide 29: Upcoming Events and Investor Relations
UPCOMING EVENTS Investor Relations APRIL Su Mo Tu We Th Fr Sa Giuliana Pagliari 1 2 3 4 5 6 Investor Relations Manager Phone +39 02 408 26548 7 8 9 10 11 12 13 Annual General Meeting Mobile +39 331 65 30 620 14 15 16 17 18 19 20 1st Call E-mail: giuliana.pagliari@bancagenerali.it 21 22 23 24 25 26 2