Banca Generali S.p.a. · MIL:BGN
Banca Generali — FY2014 Earnings Presentation
34 slides from Banca Generali's earnings presentation, Mar 11, 2015
Slide 1: 2014 results and business outlook
2014 results and business outlook 11 March 2015
Slide 2: Today's Agenda
Today’s Agenda FY 2014 results Net Inflows, AUM, recruiting Business Update Closing remarks Banca Generali – FY 2014 results and business outlook 2
Slide 3: 2014 net profit at record high
2014 net profit at record high, while also … Net profit Total Assets CAGR +30% 36.6 161 141 29.1 130 26.2 23.3 73 138 116 CAGR +16% 103 72 (€ m) 27 25 23 (€ bn) 1 2011 2012 2013 2014 2011 2012 2013 2014 LTRO Net profit ex-LTRO A Lion year • Strong increase in reported profit to €161m more than doubl
Slide 4: Laying foundations for future growth
… laying foundations for future growth and… 2014 key actions Record net • €4.0bn, of which €1.8bn from existing network inflows • +20,847 new customers with €150,000 assets each Record • +102 new professionals, with €17.8m portfolio each recruiting • +69 recruits from former Simgenia • +€1.9bn asset
Slide 5: Maintaining a generous dividend policy
… maintaining a generous dividend policy Estimated Cash Dividend per Share (DPS) 78% 70% 79% Dividend pay-out 75% 84% 80% 0.90 0.95 0.98 1 130% 0.55 0.55 80% 84% 0.45 0.10 0.18 0.06 2006 2007 2008 2009 2010 2011 2012 2013 2014 (1) Estimate of the Board of Directors’ proposal to AGM scheduled for 23/
Slide 6: 2014 results: key takeaways
2014 results: key takeaways (€ m) 12M13 * 12M14 % Chg * Total banking income up by 14% with a key Net Interest Income 121.8 107.0 -12.2% contribution from gross fees (+20%) as a result of Gross fees 404.7 484.6 19.8% higher asset size Fee expenses -178.3 -227.4 27.5% Net Fees 226.4 257.3 13.6% Net i
Slide 7: Sustained revenue growth
Sustained revenue growth Breakdown of total revenues 427.7 419.2 359.0 367.2 +19% +14% 121.8 107.0 45.6 56.9 19 55 -178.3 (€ m) -227.4 recurring fees performance fee expenses net interest trading & Total revenues fees margin dividend 2013 (lhs) – 2014 (rhs) • Strong growth in total revenues, with a
Slide 8: Fee-based revenues delivering a robust increase
Fee-based revenues delivering a robust increase … Breakdown of total gross fees Overall excellent fee trend • Front fees benefitted from the sharp increase in total inflows and higher bond placement 484.6 • Banking fees slightly retreated reflecting lower +20% trading volumes from captive business 4
Slide 9: Relentless growth in management fees
… with a relentless growth in management fees Quarterly management fees 97.4 +67% 93.9 86.2 78.9 81.8 75.5 +23% 68.8 72.8 61.5 65.8 58.2 61.2 62.8 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 (€ m) (€ bn) Trend in assets Growth fed by asset acceleration +3.0 36.6 and margin expan
Slide 10: Smoothing the NII trend
Smoothing the NII trend Net Interest Income A new rate environment • 2014 lower interest rates were partly offset by 121.8 higher volumes and by lower funding costs 111.5 • Contribution from lombard loans also sharply 107.0 increased (€19.9m, +34%) • €300m LTRO assets early returned to ECB in 69.5 2
Slide 11: Lombard loan book further up
(€ m) Lombard loan book further up Customer Loan Book 2,991 Customer spread 2,438 1,930 1,726 1.37% (€ m) 1,517 1,373 1.25% 1,081 1.15% 785 1.03% 2011 2012 2013 2014 2011 2012 2013 2014 Customer Loans Collateral NPL/total loans to customers Growing secured lending activity 7.4% 7.7% • Total loans in
Slide 12: Costs reflect one-off items and IT projects
Costs reflects one-off items and the speed-up in IT projects Operating expenses Staff costs +12% 165.8 Changes are primarily due to: 148.6 • staff hiring in order to support the larger distribution network and to strengthen the compliance/risk 74.2 control functions 69.5 • higher variable compensati
Slide 13: Profitability ratio at best class level
Profitability ratio at best class level AUM profitability Operating costs/total assets 0.66% 1.87 1.90 1.83 0.58% 0.59% 0.16 0.54% 0.20 0.18 0.51% 0.14 0.16 0.11 0.45% 0.30 0.22 0.29 1.32 2009 2010 2011 2012 2013 2014 1.30 1.22 +10 bps Cost/Income ratio 56.5% 53.3% 55.8% 2012 2013 2014 41.5% 39.1% 3
Slide 14: Solid capital ratios confirmed post acquisition
Solid capital ratios confirmed post acquisition Excess Capital Tier 1 Capital Ratio1, 2 Total Capital Ratio1,2 157.6 144.3 14.8% 14.2% 14.2% 13.0% 105.8 11.8% 12.2% 2012 2013 2014 2012 2013 2014 (€ m) 2012 2013 2014 Excess capital further increased to €158m • Capital ratio overall at solid levels ev
Slide 15: Today's Agenda
Today’s Agenda FY 2014 results Net Inflows, AUM, recruiting Business Update Closing remarks Banca Generali – FY 2014 results and business outlook 15
Slide 16: 2014 Net new money: triple digit-growth
2014 Net new money: triple digit-growth Total net new money (NNM) Split of organic net inflows … 5,924 Managed 4,189 products External 2,768 1,900 growth +162% €m -508 Banking -165 products 2,260 Organic … of which managed products 4,024 Net inflows 2,260 555 71 1,378 2013 2014 2,185 €m • 2014 net n
Slide 17: Strong acquisition of new customers
Strong acquisition of new customers Net inflows drivers1 No. of new customers1 20,847 Existing network 15,490 38% 45% 14,381 Jumbo 11,174 recruitment (Simgenia) 4,316 6,466 17% Organic recruitment 2013 2014 Reactivated customers Brand new customers • All new customers acquired through the FA network
Slide 18: 2015 net inflows: starting on the right foot
2015 net inflows: starting on the right foot January net inflows trend Jan. 2015 vs. 2014 monthly avg 406 406 335 245 207 226 106 +80% +21% €m Jan 2011 Jan 2012 Jan 2013 Jan 2014 Jan 2015 2014 monthly avg. Jan 2015 • Strong start into 2015 (€406m, +80% yoy), beating also the record monthly average a
Slide 19: Major jump in total assets (+26%)
Major jump in total assets (+26%) Total assets Managed vs. Banking products 36.6 +26% 27.5 29.1 10.0 21.3 (75%) (73%) +29% 8.4 3.8 9.1 (€ bn) 7.8 3.0 (27%) (25%) 3.2 2013 2014 0.7 10.7 banking products managed products 9.0 2.0 2.7 (€ bn) Managed assets at 75% of total 5.8 6.4 • Total assets at €36.6
Slide 20: Double-digit increase for SICAVs
Double-digit increase for SICAVs Lux-based SICAVs Asset split Lux-based Assets 8.8 6.8 +21% +33% 2% 1% 5.6 6.6 11% 15% 3% 16% 6.0 7.3 5.2 51% 5.8 0.4 0.8 Equity EM Flexible EM (€ m) 1Q13 1Q14 Flexible funds Equity Global & Thematic Equity DM Real assets ( €bn ) 1.5 0.8 Liquidity 2013 2014 Banca Gene
Slide 21: No. of advisors strongly on the rise in 2014
No. of advisors strongly on the rise in 2014 No. of FAs increasing for the second Total No. of Advisors year in a row (+12%) • Banca Generali’s advisors rank at the top of the industry by productivity and portfolio +170 FAs size • Experienced, yet relatively young advisors 1,645 (49 years on average
Slide 22: Network quality key to gaining market shares (1/2)
Network quality key to gaining market shares (1/2) Sector Ranking by Productivity (€ ‘000) (Net Inflows/Financial Advisor) 2,446 2,372 1,421 1,327 1,258 1,104 1,087 944 918 806 BANCA Azimut Fineco Allianz Bank Finanza & Credem Mediolanum UBI Banca Bca Pop SECTOR GENERALI Futuro Vicenza AVERAGE Sourc
Slide 23: Network quality key to gaining market shares (2/2)
Network quality key to gaining market shares (2/2) Sector Ranking by Portfolio Size (€ m) 22.2 (Assets/Financial Advisor) 18.3 17.9 16.4 14.5 14.9 12.0 9.9 8.9 8.4 BANCA Bca Fideuram Azimut Finecobank Allianz Bank Mediolanum Bca MPS UBI Banca Credem AVERAGE GENERALI Source: Assoreti, figures at 31 D
Slide 24: A strong year for recruitment
A strong year for recruitment No. of recruits per year Assets/recruits Recruiting sources (€ m) +122% +28% 91% 102 17.8 17.4 81 14.2 53 13.9 14.4 9% 46 52 FA networks 2010 2011 2012 2013 2014 Private and retail banks 2010 2011 2012 2013 2014 • Organic new recruits of 102 professionals (22 private ba
Slide 25: Today's Agenda
Today’s Agenda FY 2014 results Net Inflows, AUM, recruiting Business Update Closing remarks Banca Generali – FY 2014 results and business outlook 25
Slide 26: Ongoing focus on product innovation
Ongoing focus on product innovation PRODUCT INNOVATION • New investment themes and investment tools launched with the support of sector specialists • Alternative strategies • Real Assets investments and other satellite strategies • Illiquid alternative asset classes (NPL portfolio, mezzanine debt) •
Slide 27: New investment themes (1/2)
New investment themes (1/2) Long/Short Equity Long/Short Bond Alternative Long/Short Currencies Long/Short Commodities Global Thematic bond Supranational Multi-assets, Real Asset procyclical Multi-assets, Income high yield, high dividend, reits Banca Generali – FY 2014 results and business outlook 2
Slide 28: New investment themes (2/2)
New investment themes (2/2) • Launch of portfolio lines focused on financing instruments to the real-estate market GPM Real • NPL portfolios secured by real estate assets in Italy • Subordinated debt secured by commercial real estate in Europe Estate • Other bond, liquidity and real assets funds Por
Slide 29: Roll-out of Wealth Advisory model
Roll-out of Wealth Advisory model • Proprietary wealth management platform close to the official launch (from 2Q15 ) • Unique range of tailor-made wealth management solutions to meet any customers’ need • Investment planning • Property advisory WEALTH ADVISORY • Inheritance planning, tax and legal a
Slide 30: Further upgrading of the IT platform
Further upgrading of the IT platform • New digital tools to enhance FA productivity... • Digital signature • Personal branding • Web collaboration IT INVESTMENTS • ... and improve customer service • Home and mobile banking • App Investment planning • App Real estate • App Inheritance planning Banca
Slide 31: Today's Agenda
Today’s Agenda FY 2014 results Net Inflows, AUM, recruiting Business Update Closing remarks Banca Generali – FY 2014 results and business outlook 31
Slide 32: Closing remarks
Closing remarks Top-rated network Return to Customised shareholders advisory • Favorable business environment expected to continue • Historically low interest rates, high level of household wealth, low penetration of managed products by Italian households Sustainability Long-term • Strong committed
Slide 33: 2015 upcoming corporate events
2015 upcoming corporate events MARCH Su Mo Tu We Th Fr Sa Investor Relations Contacts 1 2 3 4 5 6 7 Approval of 2014 draft financial 8 9 10 11 12 13 14 statements Giuliana Pagliari 15 16 17 18 19 20 21 Investor Relations Officer Phone +39 02 6076 5548 22 23 24 25 26 27 28 Mobile +39 331 65 30 620 29
Slide 34: Disclaimer
Disclaimer The manager responsible for preparing the company’s financial reports (Stefano Grassi) declares, pursuant to paragraph 2 of Article 154- bis of the Consolidated Law of Finance, that the accounting information contained in this press release corresponds to the document results, books and a