Slide 1: Fineco: 1Q16 Results
Fineco: 1Q16 Results Alessandro Foti, CEO and General Manager Milan, May 9th 2016
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 1Q16 net profit at 51.2mln (+7.2% y/y, +14.9% q/q(1)) one of the best quarters ever, confirming the effectiveness of a unique business model able to generate strong performance in every market condition Growing revenues (+2.5% y/y, +2.4% q/q) despite the challenging environment
Slide 4: Agenda: Fineco Results
Agenda Fineco Results Focus on products 4
Slide 5: Results
Results Improved net profit (+7.2% y/y, +14.9% q/q) despite challenging environment, thanks to Fineco's unique business model Net Profit, mln Revenues, mln excluding non recurring items(1) +2.5% +2.4% +7.2% 136.7 136.8 140.1 +14.9% 51.2 47.8 44.6 1Q15 4Q15 1Q16 Operating Costs, mln +0.7% 1Q15 4Q15 1
Slide 6: Revenues by P&L Items
Revenues by P&L Items Well diversified stream of revenues able to deliver growth in any market condition Net interest, mln Fees and Commissions, mln +10.2% -7.4% Brokerage +0.2% Investing -8.5% Banking 56.5 62.1 62.2 63.6 Other 62.8 58.2 19.2 1Q15 4Q15 1Q16 25.0 1M Eur 0.00% -0.15% -0.26% 20.3 Tradi
Slide 7: Net interest
Net interest Sustainable and high quality volume dynamics more than offset lower margins and declining interest rates Sight Deposits (mln) and net margins (bps) Term Deposits (mln) and net margins (bps) +20.4% +5.4% -53.8% 14,084 14,537 15,328 1,628 11,798 12,729 13,522 1,358 -6.7% 1,014 793 673 628
Slide 8: Net interest: focus on UniCredit bonds portfolio
Net interest: focus on UniCredit bonds portfolio 7.2% sight deposits growth needed by 2023 compared to 14.2% realized (23% in 2015, 5.4% in 1Q16) to offset lower rates and bond portfolio run off Run-off UniCredit bonds portfolio (mln) and spread (bps) 2,224 1,804 1,924 1,724 1,724 1,574 700 350 2016
Slide 9: Costs
Costs High operating leverage constantly delivered on the back of Fineco's business model Staff expenses, mln and FTE, # Stock granting post IPO 990 1019 1021 Staff expenses, related to top managers and key employees Other administrative expenses, related to PFAs +1.8% -0.9% 3.9 0.9 2.7 2.7 18.4 18.
Slide 10: Capital Ratios
Capital Ratios Best in class capital position and low risk balance sheet RWA, mln CET1 Ratio transitional, % Credit Market Operational +1.9p.p. -0.1p.p. +1.2% 19.38% 20.79% 20.43% 21.39% 21.31% +1.7% 1,836 1,826 1,828 1,859 1,804 Mar.15 Jun.15 Sept.15 Dec.15 Mar.16 1,039 1,061 1,044 1,066 1,071 CET1
Slide 11: TFA
TFA 18.5 bn net sales since 2011 with higher penetration of guided products and services. Start of 2016 impacted by huge market volatility TFA evolution (Dec.10-Mar.16), bn Cumulated performance, bn 55.3 1.4 -1.8 55.0 Net Sales +18.5 bn 0.5 Market Effect +1.3 bn 5.5 49.3 1.7 43.6 4.0 1.3 39.8 2.5 2.
Slide 12: TFA and Net sales - breakdown
TFA and Net sales - breakdown Sustainable and high quality services as key features in our growth. Continuous acceleration in penetration rate of Guided products and services Breakdown of total net sales, bn Breakdown of total TFA, bn AuM AuC Deposits Guided products as % of AuM 5.5 55.3 55.0 55.8 4
Slide 13: Personal Financial Advisors (PFA) network – Total Net sales
Personal Financial Advisors (PFA) network – Total Net sales Organic expansion through a network of 2,634 PFAs. Strong focus on Guided products and services PFA Network – total net sales, bn Net sales, bn - Organic/New Recruit of the year AuM AuC Deposits Net Sales (Organic) Net Sales (New Recruit) 4
Slide 14: Agenda: Focus on products
Agenda Fineco Results Focus on products 14
Slide 15: Revenues by Product Area
Revenues by Product Area One-stop shop able to deliver solid results in any market environment Banking, mln 45% +8.3% -2.9% 56.1 62.6 60.8 1Q15 4Q15 1Q16 Brokerage, mln 27% Investing, mln 28% Core revenues (NI excluded) +3.3% -15.3% -8.0% +10.6% 40.9 43.1 36.5 37.7 35.1 36.6 1Q15 4Q15 1Q16 1Q15 4Q15
Slide 16: Banking
Banking Resilient performance q/q despite declining interest rates thanks to strong volume growth. Fees affected by new regulation on interchange fees(1) Revenues, mln Direct deposits eop (mln) Net interest +8.3% Sight Deposits Term Deposits Net fees -2.9% +15.0% Net trading Other 62.6 +5.7% 60.8 56
Slide 17: Brokerage
Brokerage One of the best quarters ever with almost 37mln revenues and 7.9mln executed orders Revenues, mln Volatility Index - Ftse Mib Net interest Net fees Net trading 30 25 Core revenues (NI excluded) 20 15 VltyCC 10 -15.3% 5 +4.44% +10.6% 0 43.1 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Oct-11 O
Slide 18: Investing
Investing Higher net commissions y/y due to acceleration in guided products. Market performance impacted AuM. March and April show positive trend Revenues (Net Commissions), mln AuM eop (bn) Upfront fees Management fees Others -2.1% -2.7% +3.3% 26.1 26.2 24.8 26.3 25.6 25.9 -8.0% 40.9 36.5 2.9 37.7
Slide 19: Annex
Annex 19
Slide 20: P&L
P&L mln 1Q15 2Q15 3Q15 4Q15 FY15 1Q16 Net interest income 56.5 59.3 62.9 62.1 240.8 62.2 Net commissions 62.8 64.2 62.0 63.6 252.6 58.2 Trading profit 17.1 11.0 13.2 12.6 53.9 19.6 Other expenses/income 0.4 -3.4 1.6 -1.5 -3.0 0.1 Total revenues 136.7 131.0 139.7 136.8 544.3 140.1 Staff expenses -18.
Slide 21: Details on Net Interest Income
Details on Net Interest Income Volumes & Volumes & Volumes & Volumes & Volumes & Volumes & mln 1Q15 2Q15 3Q15 4Q15 FY15 1Q16 Margins Margins Margins Margins Margins Margins Sight Deposits 51.6 12,729 52.2 13,522 54.5 14,084 54.4 14,537 212.7 13,718 55.4 15,328 Net Margin 1.65% 1.55% 1.53% 1.49% 1.55
Slide 22: UniCredit bonds underwritten
UniCredit bonds underwritten ISIN Currency Amount (€ m) Maturity Indexation Spread 1 IT0004307861 Amortizing Euro 150.0 30-Sep-16 Euribor 1m 0.51% IT0004307861 Amortizing Euro 150.0 2-Oct-17 Euribor 1m 0.51% IT0004307861 Amortizing Euro 150.0 2-Jan-18 Euribor 1m 0.51% 2 IT0005010233 Euro 382.5 30-Ja
Slide 23: Details on Net Commissions
Details on Net Commissions mln 1Q15 2Q15 3Q15 4Q15 FY15 1Q16 Brokerage 25.0 20.8 20.3 19.2 85.3 20.3 o/w Equity 19.9 17.3 16.4 15.1 68.7 16.5 Bond 2.5 1.2 1.1 1.3 6.0 1.1 Derivatives 2.5 2.3 2.6 2.4 9.8 3.2 (1) Other commissions 0.1 0.0 0.2 0.4 0.7 -0.5 Investing 36.5 40.6 38.5 40.9 156.5 37.7 o/w P
Slide 24: Revenue breakdown by Product Area
Revenue breakdown by Product Area mln 1Q15 2Q15 3Q15 4Q15 FY15 1Q16 Net interest income 52.8 54.8 58.0 58.1 223.7 59.8 Net commissions 1.5 2.8 3.2 3.3 10.9 0.1 Trading profit 1.9 1.3 1.1 1.2 5.4 0.9 Other -0.1 -0.1 -0.1 -0.1 -0.3 0.0 Total Banking 56.1 58.8 62.2 62.6 239.7 60.8 Net interest income 0
Slide 25: Breakdown TFA
Breakdown TFA mln March 15 June 15 Sept. 15 Dec. 15 March 16 AUM 26,121 26,169 24,825 26,277 25,565 o/w Funds and Sicav 23,313 23,221 21,949 23,100 22,332 o/w Insurance 2,793 2,933 2,862 3,163 3,219 o/w GPM 15 15 14 14 14 AUC 13,219 12,613 12,868 13,419 12,889 o/w Equity 6,826 6,513 6,619 7,085 6,71
Slide 26: Balance Sheet
Balance Sheet mln March 15 June 15 Sept. 15 Dec. 15 March 16 Due from Banks 14,070 14,583 13,966 14,649 15,404 Customer Loans 797 836 885 923 827 Financial Assets 2,270 2,244 2,241 2,250 2,629 Tangible and Intangible Assets 109 109 109 110 111 Derivatives 25 40 7 11 7 Other Assets 229 240 244 385 28
Slide 27: Main Financial Ratios
Main Financial Ratios March 15 June 15 Sept. 15 Dec. 15 March 16 PFA TFA/ PFA (mln) 17.6 17.6 17.0 17.9 17.8 Guided Products / TFA 19% 20% 20% 21% 22% Revenues per TFA (bps) 106.1 103.8 106.7 104.0 101.6 Cost / income Ratio 43.8% 44.6% 42.6% 42.7% 43.0% CET 1 Ratio 19.4% 20.8% 20.4% 21.4% 21.3% Adju