Banca Generali S.p.a. · MIL:BGN

Banca Generali — Investor Presentation (February 2017)

31 slides from Banca Generali's investor presentation, February 2017

  1. Slide 1: Banca Generali: a successful business model

    Banca Generali: a successful business model Investor presentation February 2017

  2. Slide 2: Key highlights

    Key highlights FY 2016 results Capital ratios & dividend Net inflows, assets and recruiting Business update & closing remarks Investor presentation – February 2017 2

  3. Slide 3: 2016 results at a glance

    2016 results at a glance 2016: ANOTHER YEAR OF STRONG BUSINESS EXPANSION • ROLL-OUT OF NEW VALUE PROPOSITION WELL ON TRACK  Wrapper solutions already established as product of choice both for customers and FAs  Promising results from the ongoing deployment of the wealth management platform Net Inf

  4. Slide 4: FY 2016 results at a glance

    FY 2016 results at a glance * (€ m) 12M 15 12M 16 % Chg 1. Net Financial Income (NII + Trading income) proved broadly stable supported by clients’ higher assets Net Interest Income 66.2 58.7 -11.4% (+35%) and favorable trading conditions Net income (loss) from trading activities and Dividends 28.9 3

  5. Slide 5: Key highlights

    Key highlights FY 2016 results Capital ratios & dividend Net inflows, assets and recruiting Business update & closing remarks Investor presentation – February 2017 5

  6. Slide 6: Solid net banking income

    Solid net banking income Net Banking Income (€402.8m, -13.5% yoy) 459.1 492.3 +7% 127.2 66.2 58.7 35.1 65.7 45.2 67.2 28.9 (€ m) -281.2 -295.7 Net Interest Income Trading & dividend Management fees Entry & banking fees Performance fees Fee expenses  Strong increase in deposits  strong growth in 

  7. Slide 7: Net interest income levelling off

    Net interest income levelling off Net Interest Income NII supported by strong volumes 121.8 111.6 107.0 37.4 66.2 40.1 34.5 58.7 • Net Interest income was buoyed by the 3.1 0.9 strong increase in total interest-bearing (€ m) 71.5 84.4 72.5 63.1 57.8 assets (€7.0bn, +35%) offsetting lower interest ra

  8. Slide 8: Gross fees: recurring vs. variable fees

    Gross fees: recurring vs. variable fees Recurring fees Variable fees (management and other fees) (performance fees) 20 % +76% 537.5 524.8 16.5 32.0 427.7 14 % 127.2 359.1 36.3 11 % 12 % 305.3 29.1 27.1 11 % 459.1 492.3 67.1 296.0 359.3 50.2 56.9 45.6 251.2 (€m) 27.0 34.0 (€m) 32.1 33.7 28.7 2012 201

  9. Slide 9: Breakdown of annualised fee-margin

    Breakdown of annualised fee-margin Entry fee margin Management fee margin linked to financial markets 1.16 1.11 1.12 1.07 1.01 0.11 0.11 0.11 0.08 0.04 (%) (%) 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Banking fee & Performance fee margin trading commission margin 0.32 0.11 0.12 0.10 0.20 0.

  10. Slide 10: Consistent growth in management fees

    Consistent growth in management fees Values, assets, margins: 3Y trend 130.0 120.4 125.2 116.1 116.9 118.6 116.7 107.6 93.9 97.4 Management fees 78.9 81.8 86.2 +€11.4m (+9.5%) increase on assets growth and stable margins (€ m) 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 43.2 44.

  11. Slide 11: Entry and banking fees trending higher in 4Q

    Entry and banking fees trending higher in 4Q Entry Fees: 3Y trend Pick-up in 4Q entry fees thanks to more 11.6 9.5 9.5 10.5 10.3 6.0 5.7 7.6 favorable financial 3.6 3.9 4.4 3.6 4.6 markets (€ m) 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Banking Fees: 3Y trend 8.9 9.8 9.5 9.2 B

  12. Slide 12: Operating costs discipline

    Operating costs discipline Operating costs breakdown 87.4 80.6 (€182.3m, +3.8% yoy) 65.9 66.4 +8% +1% 15.1 14.3 8.7 8.2 5.3 5.9 (€ m) Non-sales personnel costs Sales personnel costs BRRD and FITD funds Depreciation General expenses  Effective cost  Reshuffle in RMs  Ordinary payment  Increased i

  13. Slide 13: Cost ratios at best practice levels

    Cost ratios at best practice levels Cost/Income Operating costs/Total assets 47.2% 0.54% 43.5% 41.9% 41.7% 0.51% 5Y Average 41.8% 0.45% 34.9% 0.40% 0.37% 2012* 2013* 2014* 2015* 2016* 2012 2013 2014 2015* 2016* * Adjusted for the extraordinary components (LTRO, BRRD payments) * Adjusted for the extr

  14. Slide 14: Key highlights

    Key highlights FY 2016 results Capital ratios & dividend Net inflows, assets and recruiting Business update & closing remarks Investor presentation – February 2017 14

  15. Slide 15: High dividend pay-out supported by capital strength

    High dividend pay-out supported by capital strength Dividend per Share (DPS) Dividend pay-out ratio 1.20 79.0% 1.07 78.0% Pay-out range 80.0% 0.98 80% 0.90 0.95 70% 70.0% 68.0% 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 (1) AGM scheduled for 20 April 2017  2017 pay-out ratio set at 80%, on t

  16. Slide 16: Solid capital ratios well above regulatory requirements

    Solid capital ratios well above regulatory requirements CET1 ratio Total Capital ratio 2.4% 16.7% 2.5% 18.4% 14.3% 15.9% 7.0% 10.4% 2015 2016 2017 SREP 2015 2016 2017 SREP requirements requirements Excess Capital Leverage ratio 6.3% (1.3%) 49 262 213 5.0% (€ m) 2015 2016 2015 2016 SREP requirements:

  17. Slide 17: Key highlights

    Key highlights FY 2016 results Capital ratios & dividend Net inflows, assets and recruiting Business update & closing remarks Investor presentation – February 2017 17

  18. Slide 18: Net inflows at record high levels

    Net inflows at record high levels Net Inflows Trend 5,677 4,640 4,024 42% 41% 2,260 54% 1,602 1,260 53% 58% 34% 59% 41% 44% (€ m) 66% 47% 59% 2011 2012 2013 2014 2015 2016 Existing FA network Recruiting Banca Generali’s share of Assoreti total net inflows 19.7% (1) 13.4% 13.6% 14.6% 15.5% 11.8% 2011

  19. Slide 19: Significant outperformance vs. sector trend

    Significant outperformance vs. sector trend Assets Assets per FA Net Inflows (€bn) (€m) (€bn) 28.8 27.3 290 316 SECTOR 14.4 15.7 ex-BG +9% -5% (ASSORETI) +1.3m 9M15 - 9M16 9M15 - 9M16 2015 - 2016 281 25.5 24.3 257 17.7 TOP 5 16.2 ex-BG -5% +9% +1.5m 9M15 - 9M16 9M15 - 9M16 2015 - 2016 45.3 25.2 5.7

  20. Slide 20: Product mix growing in favour of managed solutions

    Product mix growing in favour of managed solutions Net inflows: Net inflows: Product mix YoY Product mix by quarter 1,530 1,387 1,170 1,590 4,640 5,677 15% 35% 44% 61% 63% 40% 71% 27% 26% 13% 26% 45% 38% 23% 30% (€ m) 26% (€ m) 12% 6% 2015 2016 1Q16 2Q16 3Q16 4Q16 Banking products Traditional life p

  21. Slide 21: Wrappers growing fastest

    Wrappers growing fastest Wrappers: Wrappers: 2016 net inflows by quarter Assets since inceptions 909 7.0 739 1.4 670 488 4.3 433 365 311 2.2 5.6 58 4.3 306 421 253 305 2.2 (€ m) (€ bn) 1Q16 2Q16 3Q16 4Q16 2014 2015 2016  Wrapper solutions represented 65% of total net inflows from managed products i

  22. Slide 22: Assets breakdown by products

    Assets breakdown by products Total assets Managed solutions Product Mix Product mix +14.2% 47.5 21.5 18.9 41.6 21.5 18.9 (45%) 10.9 +3% 11.2 (45%) (58%) (52%) 14.5 12.9 (31%) +31% 4.7 (22%) (€ bn) (31%) (€ bn) 3.6 (19%) 6.2 (15%) 6.2 (13%) +28% 4.3 (23%) 5.5 (26%) 3.6 (9%) 5.3 (11%) 2015 2016 2015 2

  23. Slide 23: Mix focussed on sustainability

    Mix focussed on sustainability Total Assets Lux-based assets Lux-based assets/Total assets Retail vs. Institutional classes 47.5 11.8 12.5 41.6 6.3 6.8 35.0 (51%) 29.8 (58%) (74%) (72%) 6.2 5.0 11.8 12.5 (49%) (42%) (€ bn) (28%) (26%) (€ bn) 2015 2016 2015 2016 Retail classes Lux-based assets Other

  24. Slide 24: Growing network size

    Growing network size No. of Financial Advisors (FAs) No. of new recruits 2,006 161 From retail banks 1,862 1,841 From other FA networks 126 1,793 +27% 102 1,715 1,645 81 122 1,635 1,564 92 53 75 1,499 1,475 50 1,4711,453 35 31 34 39 18 27 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2

  25. Slide 25: Key highlights

    Key highlights FY 2016 results Capital ratios & dividend Net inflows, assets and recruiting Business update & closing remarks Investor presentation – February 2017 25

  26. Slide 26: 2017: Strategy Execution

    2017: Strategy Execution 2017: Execution, Execution, Execution Final phase of implementation of the 3Y strategic repositioning to deliver sustainable growth in the new MIFID 2 environment Roll-out of the new ADVISORY CONTRACT one year ahead of MIFID 2 introduction Further increasing the penetration

  27. Slide 27: Advisory model: ready for the future

    Advisory model: ready for the future Roll-out of the new advisory contract already completed BASE CONTRACT: SMART, COMPREHENSIVE (INVESTMENT + NON-INVESTMENT ADVISORY), MIFID II COMPLIANT Transparency Protection Services Pricing NEW ‘FEE-ON-TOP/FEE ONLY’ CONTRACT: ROLL-OUT ALREADY STARTED, FLEXIBLE

  28. Slide 28: Wrapper solutions: value & potential

    Wrapper solutions: value & potential In force FAs’ network New recruits (2015/2016) Avg. wrapper AUM: 14% Avg wrapper AUM: 28% 30% 40% 60% 70% FAs with Wrapper AUM < 20% of tot. assets FAs with Wrapper AUM > 20% of tot. assets • EFFECTIVE TOOL FOR RECRUITMENT • RELEVANT POTENTIAL TO LEVERAGE: up to

  29. Slide 29: Wealth Management, a booster of inflows

    Wealth Management, a booster of inflows FAs with Avg. Net Inflows net inflows >€1m per FA TOP €2.3m Full BGPA platform + 17% 63% external partnerships o/w €1.8m in wrappers BEST RUNNERS-UP €1.6m BGPA Investments + at least one non- 30% 50% o/w €1.0m in investment module wrappers BEGINNERS 53% €1.4m

  30. Slide 30: Closing remarks

    Closing remarks BANCA GENERALI’S VISION We want to be the first Private Bank in Italy in terms of quality of products, services and innovations. BANCA GENERALI’S MISSION We have the clear mission of being trustable people taking the Client through time, building and caring about his/her life project

  31. Slide 31: 2017 upcoming corporate events

    2017 upcoming corporate events APRIL Su Mo Tu We Th Fr Sa 1 Investor Relations Contacts 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Giuliana Pagliari 16 17 18 19 20 21 22 Annual General Meeting Investor Relations Officer 23 24 25 26 27 28 29 (1st call) Phone +39 02 6076 5548 Mobile +39 331 65 30 620 30 E-mail

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