Banca Generali S.p.a. · MIL:BGN
Banca Generali — Q1 2017 Earnings Presentation
28 slides from Banca Generali's earnings presentation, May 2017
Slide 1: Banca Generali: a successful business model
Banca Generali: a successful business model Investor presentation May 2017
Slide 2: Key highlights
Key highlights 1Q 2017 results Net inflows, assets and recruiting Business update Closing remarks Investor presentation – May 2017 2
Slide 3: 1Q17 results at a glance
1Q17 results at a glance 1Q 2017: STRONG START TO THE YEAR GROWTH DELIVERY AHEAD OF PLAN 1Q17 Net Inflows Net inflows at €1.8bn (+20%), already at 40% of year-end target (€4.0-4.5bn) BG outperforming sector trend (20% share of total sector net inflows in 1Q17) €1.8bn Wrapper solutions further
Slide 4: 1Q 2017 results: key takeaways
1Q 2017 results: key takeaways * (€ m) 1Q 2016 1Q 2017 % Chg * 1. Strong increase in Net Banking Income (Δ +€39.8m) driven by a strong increase in both recurring revenues Net Interest Income 15.1 15.7 3.9% (management and other fees at €149.6m +18%) and non Net income (loss) from trading activities
Slide 5: Key highlights
Key highlights 1Q 2017 results Net inflows, assets and recruiting Business update Closing remarks Investor presentation – May 2017 5
Slide 6: Buoyant net banking income
Buoyant net banking income Net Banking Income (€134.7m, +41.9% yoy) 135.3 116.7 +15.9% 42.8 15.1 15.7 14.5 10.1 14.3 3.4 0.9 (€ m) -62.5 -76.8 Net Interest Income Trading & dividend Management fees Entry & banking fees Performance fees Fee expenses NII posted a 4% YoY increase (+9% These posted
Slide 7: Net Interest Income trending higher
Net Interest Income trending higher Net Interest Income Higher volumes, stable margins 15.7 15.1 14.4 0.4 0.4 15.1 15.3 • Net Interest income increased by 4% YoY and by (€ m) 14.0 9% compared to 4Q16 marking a clear positive reversal from previous quarters. The results 1Q16 4Q16 1Q17 reflect the str
Slide 8: Sustained growth in recurring fees
Sustained growth in recurring fees Recurring fees Quarterly management fees 135.3 130.0 (management, entry, banking fees) 118.6 116.7 120.4 125.2 116.1 116.9 107.6 93.9 97.4 (€m) +15.9% +18.0% 86.2 149.6 81.8 5.2 126.8 3.9 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 135.3 Quarte
Slide 9: Solid growth in other fees
Solid growth in other fees Entry Fees: 3Y trend Entry fees rebounded nicely, 11.6 10.5 10.3 9.5 9.5 7.6 yet without any 5.7 5.2 3.6 3.9 4.4 3.6 4.6 contribution from (€ m) the placement of certificates 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Banking Fees: 3Y trend 8.9 9.8 9.
Slide 10: Divergent trend on costs, guidance reaffirmed
Divergent trend on costs, guidance reaffirmed Operating costs breakdown (€46.9m, +8.3% yoy) 20.7 22.5 Operating costs +4.6% (excl. sales personnel and BRRD 17.0 16.5 fund) +8.7% -3.0% 3.5 4.3 2.0 1.2 1.7 0.9 (€ m) Non-sales personnel costs Sales personnel costs General expenses BRRD and FITD funds1
Slide 11: 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% 41.8% 0.51% 0.45% 34.9% 0.40% 32.2% 0.37% 0.36% 2012* 2013* 2014* 2015* 2016* 1Q17* 2012 2013 2014 2015* 2016* 1Q17* * Adjusted for the extraordinary components (LTRO, BRRD payments) * Adjusted for t
Slide 12: Solid capital ratios well above regulatory requirements
Solid capital ratios well above regulatory requirements CET1 ratio Total Capital ratio 2.4% 16.5% 2.4% 18.1% 14.1% 15.7% 7.0% 10.4% 1Q16 1Q17 2017 SREP 1Q16 1Q17 2017 SREP requirements requirements Excess Capital Leverage ratio 6.3% (1.3%) 54 266 214 5.0% (€ m) 1Q16 1Q17 1Q16 1Q17 SREP requirements:
Slide 13: Key highlights
Key highlights 1Q 2017 results Net inflows, assets and recruiting Business update Closing remarks Investor presentation – May 2017 13
Slide 14: Assets and inflows driven by managed solutions
Assets and inflows driven by managed solutions Total Assets by product Net inflows by product CAGR 50.1 +11% 47.5 1,839 41.6 1,530 1,590 36.6 23.6 +14% 1,387 21.5 224 18.9 1,170 484 962 16.0 1,527 614 14.6 14.6 +8% 380 833 11.5 12.9 199 692 32 11.4 11.9 (€ m) 523 (€ bn) 9.1 9.8 +9% 271 429 280 66 20
Slide 15: Ongoing product mix rebalancing
Ongoing product mix rebalancing Managed solutions Managed solutions Assets by product category Net inflows by product category CAGR 23.6 +14% 1,527 21.5 5.8 18.9 +2% 5.7 547 16.0 962 6.1 6.1 +11% 833 5.4 5.5 267 4.9 484 235 648 5.5 65 376 4.5 4.7 +13% 224 358 230 3.6 56 3.8 421 448 (€ bn) 5.6 6.2 (€
Slide 16: Wrappers growing fastest
Wrappers growing fastest Wrappers Wrappers Assets since inceptions Net inflows by quarter CAGR 1,376 8.8 +59% 7.0 2.6 n.a. 909 1.4 928 739 4.3 670 BG NEXT 488 365 433 2.2 5.6 6.2 +41% 311 4.3 58 421 448 2.2 305 306 (€ bn) 253 (€ m) 2014 2015 2016 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 Wrapper solutions acc
Slide 17: A further large step ahead in sustainability
A further large step ahead in sustainability Total Assets Lux-based assets Lux-based assets/Total assets Retail vs. Institutional classes 50.1 13.4 42.5 11.5 6.4 36.7 (48%) 6.4 31.0 (73%) (56%) (73%) 7.0 5.1 (52%) 11.5 13.4 (44%) (€ bn) (27%) (27%) (€ bn) 1Q 2016 1Q 2017 1Q 2016 1Q 2017 Lux-based as
Slide 18: April 2017 net inflows
April 2017 net inflows Net Inflows YTD Net Inflows YTD Product mix Wrappers 1,959 2,531 692 504 1,820 444 380 173 1,265 337 737 559 2,086 BG NEXT 331 842 29 555 107 (€ m) 416 136 (€ m) (3) 4M 16 4M17 April 4M 16 4M17 April Banking products Traditional insurance Managed solutions Investor presentatio
Slide 19: Growing network size
Growing network size No. of Financial Advisors (FAs) No. of new recruits 2,006 From retail banks 161 1,878 From other FA networks 1,862 1,841 126 1,793 +27% 102 1,715 122 1,635 1,645 81 92 1,564 53 59 75 1,499 1,475 50 1,4711,453 31 35 31 34 39 27 28 18 2005 2006 2007 2008 2009 2010 2011 2012 2013 2
Slide 20: Key highlights
Key highlights 1Q 2017 results Net inflows, assets and recruiting Business update Closing remarks Investor presentation – May 2017 20
Slide 21: Focus on Investment Advisory
Focus on Investment Advisory A la carte Financial ‘Wrappers’ Insurance ‘Wrappers’ Current Accounts Equity/Bond securities Traditional Insurance Products Third-party funds BG NEXT In-house funds FoF Excellence in traditional offer Tax and operational optimization Insurance coverage Open archi
Slide 22: A la carte (traditional) offer
A la carte (traditional) offer A la carte Product range Features 3 main current BG Deluxe BG Privilege Competitive offer, Current Accounts accounts BG Top Premier All banking services quality of service Advisory and Equity/Bond securities/ETF All main markets trading desk 8 main policies
Slide 23: Financial 'Wrappers'
Financial ‘Wrappers’ Financial Product range Benefits for the ‘Wrappers’ customer 28 core and satellite investment lines >1,500 single funds and FoF >2,500 securities Optimisation tool (tax, 200 ETF operational, risk) Personalisation (tailor-made investments by products, asset BG Solut
Slide 24: Insurance 'Wrappers'
Insurance ‘Wrappers’ Insurance Product range Benefits for the ‘Wrappers’ customer About same framework of financial wrappers €/$ life segregated accounts (up to 30% of total Traditional and innovative assets) insurance benefits >1,000 instruments (single funds, FoFs, ETF) beneficiaries may d
Slide 25: Key highlights
Key highlights 1Q 2017 results Net inflows, assets and recruiting Business update Closing remarks Investor presentation – May 2017 25
Slide 26: Closing remarks
Closing remarks MIFID DAY Lon d on , July 2 0 1 7 Wrapper solutions up to 18% of total assets (vs. 15% at 2016 YE) Wealth Management: strong increase in the number and value of oustanding requests for advisory Real-estate (by cumulated value since inception): €3.9bn (+22% YTD) Corporate fina
Slide 27: 2017 upcoming corporate events
2017 upcoming corporate events JULY Su Mo Tu We Th Fr Sa Investor Relations Contacts 1 2 3 4 5 6 7 8 Approval of 1H 2017 results 9 10 11 12 13 14 15 Investor Conference call Giuliana Pagliari 16 17 18 19 20 21 22 Investor Relations Manager Phone +39 02 6076 5548 23 24 25 26 27 28 29 Mobile +39 331 6
Slide 28: Disclaimer
Disclaimer The manager responsible for preparing the company’s financial reports (Tommaso Di Russo) 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