Banca Generali S.p.a. · MIL:BGN
Banca Generali — H1 2008 Earnings Presentation
30 slides from Banca Generali's earnings presentation, Jul 30, 2008
Slide 1: 2008 First Half Results
2008 First Half Results Giorgio Girelli, CEO Milan, July 30, 2008
Slide 2: Today's Agenda
Today’s Agenda Strong growth of 1H08 industrial results in spite of a very negative market scenario The deepening of Mutual Funds crisis is an opportunity for Banca Generali 2H08 – We have a clear and proven strategy to face a tough market environment In a nutshell: Banca Generali business model, bu
Slide 3: Strong growth of 1H08 industrial results in spite of a very negative market scenario
Strong growth of 1H08 industrial results in spite of a very negative market scenario Banca Generali is delivering growing industrial results Results: Results: Main Main Takeaways Takeaways ¾ Stable Net Industrial Revenues at €97m (interest margin increase Adjusted Profit broadly offsetting net commi
Slide 4: Consolidated Profit and Loss 1H08 Results: Key Comments
Strong growth of 1H08 industrial results in spite of a very negative market scenario Consolidated Profit and Loss 1H08 Results: Key Comments 1H07 1H 08 1H 08 (€ m) % Chg % Chg (reported) (reported) (adjusted) (1) Net Interest Margin benefited from the Net Interest Income 20,2 27,5 36,2% 27,5 (1) 36,
Slide 5: Results influenced by persisting poor financial markets performance
Strong growth of 1H08 industrial results in spite of a very negative market scenario Results influenced by persisting poor financial markets performance JP JP Morgan Morgan Credit Credit Spreads Spreads Investment Investment Grade Grade Unrealised Unrealised Capital Capital Losses Losses on on HFT H
Slide 6: Risk Profile in Investments is lower and lower
Strong growth of 1H08 industrial results in spite of a very negative market scenario Risk Profile in Investments is lower and lower € 4.0 bn Maturities >5Y 12% 30.06.08 <3Y 62% 23% (0.9) 3-5Y 26% 9% (0.3) 90% (3.6) Rating BBB+/BBB- 3.0% BB+/BB- 1.1% 41% (1.7) * A+/A- 18.7% Average Duration: 0.3174 A
Slide 7: Very solid revenue base thanks to our business model
Strong growth of 1H08 industrial results in spite of a very negative market scenario Very solid revenue base thanks to our business model; our P&L is not substantially influenced by performance fees Breakdown Breakdown of of Net Net Banking Banking Income Income Breakdown Breakdown of of Gross Gross
Slide 8: Cost management is proceeding effectively, in real terms costs fell by c.4%
Strong growth of 1H08 industrial results in spite of a very negative market scenario Cost management is proceeding effectively, in real terms (ex inflation) costs fell by c.4% Operating Operating Costs Costs Breakdown Breakdown (€ m) 66.4 66.4 +0% Despite the 5% increase in the National 41% Banking
Slide 9: Decreasing weight of provisions, as anticipated at the beginning of the year
Strong growth of 1H08 industrial results in spite of a very negative market scenario Decreasing weight of provisions, as anticipated at the beginning of the year Net Net Provisions Provisions for for Liabilities Liabilities and and Contingencies Contingencies (€ m, cumulated figures) 16.3 1H08 1H08
Slide 10: Delivering on targets (1/3) – Successfully Gathering New Assets
Strong growth of 1H08 industrial results in spite of a very negative market scenario Delivering on targets (1/3) – Successfully Gathering New Assets in the private banking and affluent segments 386 Banca 71 Generali €455 million net inflows (€ m) BSI Italia from the core business 101 with high margi
Slide 11: Excellent Net Inflows in 2Q08, a very good performance throughout 1H08
Strong growth of 1H08 industrial results in spite of a very negative market scenario Excellent Net Inflows in 2Q08, a very good performance throughout 1H08 1H 1H 08 08 “Promotori” “Promotori” Groups’ Groups’ Ranking Ranking by by Net Net Inflows Inflows (€ m) 34% 30% 1,182 1,032 11% 11% 386 383 7% 5
Slide 12: Delivery on targets (2/3) - Excellent Inflows into strategic products
Strong growth of 1H08 industrial results in spite of a very negative market scenario Delivery on targets (2/3) - Excellent Inflows into the products targeted as strategic at the beginning of the year 2Q08 BG Inflows In-House Products vs. Mutual Fund Industry (€ m) +775.3 +276.4 +346.5 +152.4 (€ m) 3
Slide 13: Delivery on Target (3/3) – Recruiting Target delivered on Private Bankers
Strong growth of 1H08 industrial results in spite of a very negative market scenario Delivery on Target (3/3) – Recruiting Target delivered on Private Bankers; our strategy to increase the quality of the networks is constantly proceeding BG PB BSI RM BSI Total 1H08 TOTAL RECRUITING 13 17 7 37 2008 R
Slide 14: Today's Agenda
Today’s Agenda Strong growth of 1H08 industrial results in spite of a very negative market scenario The deepening of Mutual Funds crisis is an opportunity for Banca Generali 2H08 – We have a clear and proven strategy to face a tough market environment In a nutshell: Banca Generali business model, bu
Slide 15: 1H08, the worst semester for the Italian Mutual Fund Industry
The deepening of Mutual Funds crisis is an opportunity for Banca Generali 1H08, the worst semester for the Italian Mutual Fund Industry, yet mostly driven by asset switch within commercial banks… Stock of Mutual Funds Assets - Assogestioni (€ bn) 2000-07 Italian Mutual Funds flows -6.4% Jan-Jun 08 I
Slide 16: A BIG OPPORTUNITY for Banca Generali to gain market shares
The deepening of Mutual Funds crisis is an opportunity for Banca Generali … turning this into an opportunity for Banca Generali to increase the market share of the Italian Household Assets 4 The need for investment consultancy arising from Banks’ focus on managed savings and mutual demanding custome
Slide 17: Today's Agenda
Today’s Agenda Strong growth of 1H08 industrial results in spite of a very negative market scenario The deepening of Mutual Funds crisis is an opportunity for Banca Generali 2H08 – We have a clear and proven strategy to face a tough market environment In a nutshell: Banca Generali business model, bu
Slide 18: Strategy in 2H08 will continue to focus on Asset Gathering and Asset Transformation
2H08 – We have a clear and proven strategy to face a tough market environment Strategy in 2H08 will continue to focus on Asset Gathering and Asset Transformation We We are are growing growing through through new new assets assets gathering, gathering, Net Inflows of the last 18 months (BG+BSI) lever
Slide 19: GATHERING NEW ASSETS (1) – Very competitive offer also in high visibility products
2H08 – We have a clear and proven strategy to face a tough market environment GATHERING NEW ASSETS (1) – Very competitive offer also in “high visibility” products, able to attract and retain assets Repo Rate 1 3 6 (net of taxes) month months months Iwpower Turbo 3.30% 3.70% 4.25% Repo Rate* 1 2 3 (f
Slide 20: GATHERING NEW ASSETS (2) - Recruiting set to speed up
2H08 – We have a clear and proven strategy to face a tough market environment GATHERING NEW ASSETS (2) - Recruiting set to speed up also for Banca Generali Network Networks Already achieved in 1H08 2H08 Targets N. FA AUM (€m) N.FA AUM (€m) 100 7 80-120 5-8 270 150-200 17 10-13 Private Banker 115 15-
Slide 21: ASSET TRANSFORMATION – Confirming key trend outlined at the beginning of 2007
2H08 – We have a clear and proven strategy to face a tough market environment ASSET TRANSFORMATION – Confirming key trend outlined at the beginning of 2007… Starting Starting portfolio portfolio as as at at December December 31, 31, 2007 2007 New New Products Products Net Net Inflows Inflows (referr
Slide 22: With a special focus on our new FOFs, BG Selection Sicav
2H08 – We have a clear and proven strategy to face a tough market environment … with a special focus on our new FOFs, BG Selection Sicav, given their proven results In In an an highly highly gloomy gloomy contest… contest… … … our our products products delivered delivered good good results results I
Slide 23: Banca del Gottardo's Integration is moving fast
2H08 – We have a clear and proven strategy to face a tough market environment Banca del Gottardo’s Integration is moving fast FULL EXPLOITATION OF BANCA GENERALI’S PROVEN SKILLS IN POST-MERGER INTEGRATION ALREADY STARTED ALREADY DEFINED IT Migration Central Commercial Organisational Plan Functions’
Slide 24: Today's Agenda
Today’s Agenda Strong growth of 1H08 industrial results in spite of a very negative market scenario The deepening of Mutual Funds crisis is an opportunity for Banca Generali 2H08 – We have a clear and proven strategy to face a tough market environment In a nutshell: Banca Generali business model, bu
Slide 25: Business Model set to deliver positive returns in any market conditions
In a nutshell: Banca Generali business model, built also for tough periods, is delivering results Business Model set to deliver positive returns in any market conditions… ¾ Interest Margin proved to be an excellent tool to consolidate the top line ¾ Controlled exposure to equities Solidity of revenu
Slide 26: Quarterly net profit growth in spite of negative market conditions
In a nutshell: Banca Generali business model, built also for tough periods, is delivering results …as demonstrated by net profit growth on a quarterly basis in spite of negative market conditions and unrealised losses 2006-1H08 2006-1H08 QUARTERLY QUARTERLY NET NET PROFIT PROFIT BREAKDOWN BREAKDOWN
Slide 27: VERY CONFIDENT TO DELIVER WELL
In a nutshell: Banca Generali business model, built also for tough periods, is delivering results Our Business Model is set to deliver positive returns in any market conditions We do not feel confident to forecast the timing of financial markets recovery anyway, Banca Generali is VERY CONFIDENT TO D
Slide 28: What's Next
What’s Next Tuesday Tuesday October October 28, 28, 2008: 2008: 10:00 10:00 AM AM CET CET Review Review of of 3Q08 3Q08 Accounts Accounts 3:00 3:00 PM PM CET CET Conference Conference Call Call 28 Banca Generali FY-07 Results & 2008-09 Outlook
Slide 29: Investor Relations Team
Investor Relations Team Giuliana Giuliana Pagliari Pagliari Investor Investor Relations Relations Officer Officer Tel Tel +39 +39 02 02 6076 6076 5548 5548 Federico Federico Mangiagalli Mangiagalli Tel Tel +39 +39 02 02 6076 6076 5545 5545 Fax Fax +39 +39 02 02 6682 6682 854 854 E-mail E-mail invest
Slide 30: Disclaimer
Disclaimer The manager responsible for preparing the company’s financial reports (Giancarlo Fancel) 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