Finecobank Spa · MIL:FBK

Finecobank Spa — Kepler Cheuvreux Italian Financials Conference 2019

15 slides from Finecobank Spa's conference presentation, Nov 18, 2019

1. Slide 1: 9M19 Results

   9M19 Results Venice, November 18th 2019 Kepler Italian Financials Conference

2. Slide 2: FinecoBank Key messages

   FinecoBank Key messages 2

3. Slide 3: Key messages

   Key messages Healthy and sustainable growth with no shortcuts  Investment and lending No increase policies unchanged Organic growth in risk profile  Safe, robust and diversified as main engine Balance Sheet  Not joining aggressive market approach on recruiting Fairness  Recurring fees 98% on tot

4. Slide 4: FinecoBank 9M19 Results

   FinecoBank 9M19 Results 4

5. Slide 5: Results

   Results Net profit(1): Best 9M ever, +11% y/y in a more complex environment Net Profit (1) Cost / Income(1) 38% -1.4p.p. y/y +10.8% y/y 198.1 mln RoE(1) 27% 9M19 excluding non recurring items (1) (1) Figures adjusted net of non recurring items. 9M19 non recurring items: Voluntary Scheme: -4.4mln gro

6. Slide 6: Costs

   Costs Cost efficiency and operating leverage in our DNA Operating Costs (1) Operating Leverage y/y growth +1.3% +6.4% +10.9% y/y clients -1.4 185.2 mln TFA (bn) p.p. Cost / Income 9M19 excluding non recurring items (1) 2014 2015 2016 2017 2018 9M19 Cost/Income (2) (%) 47 43 42 40 39 38 2020 Guidance

7. Slide 7: A resilient, low risk Net interest Income

   A resilient, low risk Net interest Income NII so far NII going forward mln 211.6  Run-off smooth and gentle, with no cliffs  Positive effects from volumes and lending +1.9% 178.6 y/y  Benefit from tiering 32.4 8.2  No increase in the risk profile of the Bank -7.6 Gross 9M19 margins 1.23% Financi

8. Slide 8: Revamped Brokerage

   Revamped Brokerage 3Q19 best quarter over the last year mln  New options allowing customers to -3.4% exploit volatility also when it is low +27.7% y/y  Enlargement of our multicurrency y/y basket up to 13 currencies 96.7  Optimization of our systematic internalizer with new products +10.5% 10.6 q

9. Slide 9: Accelerating Investing…

   Accelerating Investing… Boosting conversion rate of customers' deposits towards AuM 1 Revenues New Upfront fees Management fees Other (1) GENERATION OF mln PRODUCTS 170.1 Upfront fees only 2% of  Decumulation products (FAM Target) 3.6 Investing  Insurance capital guarantee products  Multi-themati

10. Slide 10: …with Fineco Asset Management

    …with Fineco Asset Management gaining commercial momentum FAM contribution to FAM growth potential Fineco AuM Net Sales bn bn AuM Stock (31st Oct.2019) 38.9 2.4 1.9 13.0 1.4 50% 0.7 5.3 45% 24% 4% 7.7 20% 3M19 1H19 9M19 Oct.19 YTD AuM FAM AuM Fineco Fineco AuM Net Sales Institutional Classes Retail

11. Slide 11: A solid capital position

    A solid capital position Total Capital RWA (1), mln CET1 Ratio Leverage Ratio Ratio CET1 capital, mln 3,287 32.58% 1,972 17.37% 3.85% 42 1,273 Sept.19 Sept.19 Sept.19 Sept.19 Credit Market 571 Operational Guidance  CET1 Ratio expected above 17%  Leverage Ratio at 3.5% by 2021 (1) Following the exi

12. Slide 12: What's next: FinecoBank Developing opportunities

    What’s next: FinecoBank Developing opportunities 12

13. Slide 13: Industrial initiative: a smart repricing

    Industrial initiative: a smart repricing Preserving our best price/quality ratio CUSTOMER 97% SATISFACTION (1) Improving a best-in-class Customer Experience n.1 IN TERMS OF Bank REPUTATION (2) Average cost of current accounts (3) € 121 avg Fineco € 25 online costs € 148 avg branch costs PILLARS FOR

14. Slide 14: Further opportunities

    Further opportunities Fineco UK PATENT BOX Clients: geographical split Almost 6,000 clients New clients acquired  We applied in 2015 for intellectual properties (our platforms internally created 11% and developed) and trademark 15% UK 13%  We expect to close the agreement with Italian Fiscal Autho

15. Slide 15: Thank you

    Thank you 15

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