Slide 1: Fineco: 2Q15 Results
Fineco: 2Q15 Results Alessandro Foti, CEO and General Manager Milan – July 30th 2015
Slide 2: Disclaimer
Disclaimer This Presentation may contain written and oral “forward-looking statements”, which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations,
Slide 3: Executive Summary
Executive Summary 2Q15 Net profit at 45.9mln (+24.3% y/y, -3.9% q/q) including new charges for Single Resolution Fund for -3mln (gross) 1H15 Net profit at 93.7mln (+26.9% y/y). Annualized RoE at 43% 1H15 Revenues strongly up (+18.5% y/y) well distributed across all the product areas: relentles
Slide 4: Agenda: Fineco Results
Agenda Fineco Results Focus on products 4
Slide 5: Results
Results 1H15 Net profit at 93.7mln with healthy double digit growth (+26.9% y/y). New charges for Single Resolution Fund (3mln gross) booked in 2Q15 Revenues, mln +18.5% Net Profit, mln +16.2% -4.1% 267.7 225.9 136.7 131.0 112.8 +26.9% +24.3% -3.9% 93.7 2Q14 1Q15 2Q15 1H14 1H15 73.9 47.8 45.9 36.9 O
Slide 6: Revenues by P&L Items
Revenues by P&L Items Solid revenue growth boosted by Fees and commissions (management fees) Net interest, mln Fees and Commissions, mln +5.1% +1.9% +27.7% +28.4% +5.1% +2.1% 115.9 118.1 124.6 97.0 57.6 57.6 60.5 61.7 62.9 49.3 2Q14 1Q15 2Q15 1H14 1H15 2Q14 1Q15 2Q15 1H14 1H15 Trading income, mln Ot
Slide 7: Net interest
Net interest High-quality volume growth coupled with a reduction in cost of deposits more than offset lower gross margins in the current macro environment Sight Deposits (mln) and net margins (bps) Securities lending (mln) and net margins (bps) +19.5% +6.2% -7.2% +5.1% 12,729 13,522 10,950 11,319 11
Slide 8: Costs
Costs Development costs, mainly related to marketing and PFAs network, up to sustain the business growth. Running costs flat thanks to a strong operating leverage Staff expenses, mln and FTE, # Stock granting post IPO 944 990 992 Staff expenses, related to top managers and key employees +16.8% Other
Slide 9: Capital Ratios
Capital Ratios CET1 ratio transitional above 20% with a low risk balance sheet RWA, mln CET1 Ratio transitional, % Credit Operational +1.3p.p. Market +1.4p.p. +5.1% 19.50% 19.76% 19.08% 19.38% 20.79% -0.5% 1,850 1,836 1,826 1,738 1,731 Jun.14 Sept.14 Dec.14 Mar.15 Jun.15 1,052 1,039 1,061 CET1 Capit
Slide 10: TFA
TFA TFA growth at all time high and healthy net sales expansion in all market conditions TFA evolution (Dec.10-June15), bn Cumulated performance, bn 53.8 1.6 49.3 2.8 Net Sales +14.4 bn 1.7 Market Effect +4.2 bn 4.0 43.6 1.3 39.8 2.5 2.5 35.2 2.8 -3.0 35.0 2.3 TFA Net Market TFA Net Market TFA Net M
Slide 11: TFA and Net sales - breakdown
TFA and Net sales - breakdown High quality net sales boosted by strong AuM expansion. Relentless growth in Guided products penetration 29% Breakdown of total net sales, bn Breakdown of total TFA, bn +40.9% Guided products as % of AuM +14.0% 2.8 +9.0% 2.0 53.7 53.8 +27.6% 48.2 49.3 47.2 1.7 45.6 1.6
Slide 12: Personal Financial Advisors (PFA) network – Total Net sales
Personal Financial Advisors (PFA) network – Total Net sales More than 90% of total net sales generated by PFA network. Once again organic growth took the lion share of the inflows PFA Network – total net sales, mln Net sales, mln - Organic/New Recruit of the year +45.6% Net Sales (Organic) AuM AuC D
Slide 13: Agenda: Focus on products
Agenda Fineco Results Focus on products 13
Slide 14: Revenues by Product Area
Revenues by Product Area Business diversification led sound revenue generation across all product areas Banking, mln 43% +8.7% +6.9% +4.7% 107.4 114.9 54.1 56.1 58.8 2Q14 1Q15 2Q15 1H14 1H15 Brokerage, mln 29% Investing, mln 29% Core revenues (NI excluded) +22.5% +28.1% 29.3% +37.6% +37.3% +37.6% -2
Slide 15: Banking
Banking Smart and easy-to-use platform attracts high-quality deposits Revenues, mln Direct deposits eop (mln) Net interest Net trading Net fees Other +9.4% +6.9% 15,016 14,371 114.9 13,731 107.4 +8.7% Jun.14 Mar.15 Jun.15 +4.7% Clients and new clients, thousands # 56.1 58.8 107.6 54.1 104.2 +8.4% +2
Slide 16: Brokerage
Brokerage 14.6mln executed orders boosted core revenues (+37.6% y/y) Revenues, mln Volatility Index - Ftse Mib 30 Net interest Net fees Net trading 25 Core revenues (NI excluded) 20 VltyCC 15 +37.6% +29.3% VltyCC 10 5 78.0 0 9.9 Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- D
Slide 17: Investing
Investing Revenues strongly grew thanks to AuM at all-time high and increasing penetration of guided products Revenues, mln AuM eop (bn) +21.4% Net fees +0.2% +37.6% 26.1 26.2 21.6 22.6 23.6 77.0 +37.3% 56.0 Jun.14 Sep.14 Dec.14 Mar.15 Jun.15 +11.3% Guided products on total AuM, % 40.6 36.5 +11.8 p.
Slide 18: Annex
Annex THE NEW BANK 18
Slide 19: P&L
P&L mln 1Q14 2Q14 1H14 3Q14 4Q14 FY14 1Q15 2Q15 1H15 Net interest income 58,3 57,6 115,9 56,4 55,9 228,2 57,6 60,5 118,1 Net commissions 47,7 49,3 97,0 45,8 52,9 195,7 61,7 62,9 124,6 Trading profit 7,1 5,8 12,9 6,5 10,3 29,7 17,1 11,0 28,1 Other expenses/income 0,0 0,0 0,0 -1,3 -1,3 -2,6 0,4 -3,4 -
Slide 20: Details on Net Interest Income
Details on Net Interest Income Volumes Volumes Volumes Volumes Volumes Volumes Volumes Volumes mln 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 1H14 1H15 & Margins & Margins & Margins & Margins & Margins & Margins & Margins & Margins Sight Deposits 51.8 10,950 52.1 11,319 51.7 11,668 52.1 11,798 51.6 12,729 52.2 1
Slide 21: UniCredit bonds underwritten
UniCredit bonds underwritten Before 2014 ISIN Currency Amount (€ m) Maturity Indexation Spread 1 IT0004307861 Euro 600.0 29.12.2017 Euribor 1m 0.51% Titoli Acquistati Aprile 2014 2 IT0005010233 Euro 382.5 30.01.2017 Euribor 1m 1.78% 3 IT0005010241 Euro 382.5 28.04.2017 Euribor 1m 1.87% 4 IT000501025
Slide 22: Details on Net Commissions
Details on Net Commissions mln 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 1H14 1H15 Brokerage 21.0 18.7 15.2 19.0 24.1 19.8 39.6 43.9 o/w Equity 18.1 15.0 11.8 15.5 19.9 17.3 33.1 37.2 Bond 2.2 2.8 1.6 1.7 2.5 1.2 5.0 3.7 Derivatives 2.3 1.9 2.4 2.7 2.5 2.3 4.2 4.9 (1) Other commissions -1.7 -1.0 -0.7 -0.9 -0.8
Slide 23: Revenue breakdown by Product Area
Revenue breakdown by Product Area mln 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 1H14 1H15 Net interest income 52.1 52.1 51.3 52.2 52.8 54.8 104.2 107.6 Net commissions 0.6 1.3 1.1 2.2 1.5 2.8 1.9 4.3 Trading profit 0.8 0.7 0.8 1.1 1.9 1.3 1.5 3.2 Other -0.1 0.0 -0.1 -0.1 -0.1 -0.1 -0.1 -0.2 Total Banking 53.4 5
Slide 24: Breakdown TFA
Breakdown TFA mln June 14 Sept. 14 Dec. 14 March 15 June 15 AUM 21,563 22,563 23,636 26,121 26,169 o/w Funds and Sicav 19,579 20,414 21,177 23,313 23,221 o/w Insurance 1,968 2,134 2,444 2,793 2,933 o/w GPM 15 15 15 15 15 AUC 11,903 12,034 11,952 13,219 12,613 o/w Equity 5,396 5,705 5,745 6,826 6,513
Slide 25: Balance Sheet
Balance Sheet mln June 14 Sept. 14 Dec. 14 March 15 June 15 Due from Banks 13,476 13,613 13,892 14,070 14,583 Customer Loans 696 700 696 797 836 Financial Assets 1,726 1,722 1,699 2,270 2,244 Tangible and Intangible Assets 109 109 109 109 109 Derivatives 36 23 24 25 40 Other Assets 248 244 345 229 2
Slide 26: Main Financial Ratios
Main Financial Ratios June 14 Sept. 14 Dec. 14 March 15 June 15 PFA TFA/ PFA (mln) 15.7 16.0 16.4 17.6 17.6 AuM / TFA 46% 47% 48% 49% 49% Revenues per TFA (bps) 99.5 96.8 97.1 106.1 103.8 Adjusted Cost / income Ratio 45.0% 45.9% 45.8% 43.8% 44.6% CET 1 Ratio 19.5% 19.8% 19.1% 19.4% 20.8% Adjusted Ro