Banca Generali S.p.a. · MIL:BGN
Banca Generali — H1 2010 Earnings Presentation
28 slides from Banca Generali's earnings presentation, Jul 30, 2010
Slide 1: Review of 1H10 results and business outlook update
Banca Generali Review of 1H10 results and business outlook update Giorgio Girelli, CEO Milan, July 30, 2010
Slide 2: Today's Agenda
Today’s Agenda ¾ 1H10 Results ¾ Net Inflows, AUM and recruiting ¾ Business Update ¾ Closing Remarks 2 Banca Generali 2010 First Half Results
Slide 3: The strong start of 2010 is more than confirmed with 2Q results
1H 2010 Results The strong start of 2010 is more than confirmed with 2Q results in… Reported Net Profit … financial results (LfL2)… (€ m) Net profit at nearly €43.7mln vs. €23.9 mln,+83% yoy, notwithstanding a very +83% two times good first half in 2009 43.7 Revenues continue Net banking income
Slide 4: Consolidated 1H 2010 Profit and Loss Account
1H 2010 Results Consolidated 1H 2010 Profit and Loss Account (1) (€ mln) 1H 09 1H 10 % Chg 1H 10 % Chg (reported) (reported) (LfL) Net Interest Income 28.6 22.4 -21.8% 22.4 -21.8% 2 Commission income 139.2 183.1 31.6% 170.4 22.5% 2 2 ¾ Interest ¾ Interest margin margin isis Commission expense -51.3
Slide 5: Total revenues further expanding on top of a record 1H09
1H 2010 Results Total revenues further expanding on top of a record 1H09 numbers Breakdown of Net Banking Income (LfL) (€ m) +7% 139.3 129.8 22.4 -22% (16%) 28.6 (22%) ¾ Net ¾ Net banking banking income income increased increased by by 7% 7% to to €139.3 €139.3 million, million, driven driven by by
Slide 6: Share of recurring fees sharply increasing, reducing revenue volatility
1H 2010 Results Share of recurring fees sharply increasing, thus reducing revenues volatility Breakdown of Gross Commissions (LfL) The long-term strategy of Banca Generali works: ; growth of recurring fees (€ m) ; decline in revenue volatility +22% 170.4 139.2 22.3 (13%) The recurring fees are gro
Slide 7: Pay-out to sales networks remains stable with 1H09 levels
1H 2010 Results Pay-out to sales networks remains stable with 1H09 levels, driving to double-digit growth in net commissions 1H10 Pay-out* (LfL) 1H 10 Net Commissions (LfL) 50% €103.6 45.1% 18% 44.5% €87.9 1H09 FY09 1H10 1H09 1H10 * Excluding performance fees (€ m) Total Total pay-out pay-out remain
Slide 8: Interest margin improving in the quarter
1H 2010 Results Interest margin improving in the quarter and set to benefit from the increase in market rates Interest Margin decreasing yoy… …but further improving qoq Interest Margin (yoy) Interest Margin (qoq) -22% 10.9 +5% 11.4 28.6 10.6 +3% 22.4 1H09 1H10 4Q09 1Q10 2Q10 (€ m) (€ m) 3M Euribor
Slide 9: Operating costs falling in absolute value
1H 2010 Results Operating costs falling in absolute value, as cost cutting actions start to bear fruits 1H Operating Costs (LfL) 2Q Operating Costs (LfL) Change (€ m) abs. % (€ m) -4.9% 42.5 79.3 -2% 77.8 Total - 1.5 -2% 40.4 41% (32.7) 42% Staff 2Q09 2Q10 (32.7) +0.0 0% 55% G&A Expenses -0.8 -2% 56
Slide 10: Profitability ratios improving, reflecting quality of growth
1H 2010 Results Profitability ratios improving, reflecting the quality of current growth AUM Profitability (LfL) 1.76% 1.69% 0.22% 0.18% 1.47% 1.47% 1.34% ¾ The ¾ The share share of of AUM AUM 1.76% 1.72% 1.31% profitability from profitability from 0.20% recurring 0.29% recurring commissions commiss
Slide 11: Solid capital position, constantly enhanced even after paying dividends
1H 2010 Results Solid capital position, constantly enhanced even after paying generous dividends Shareholders’ equity Excess Capital Tier 1 Capital Total Capital Ratio and dividends paid Div. Paid €49.9m Pay-out 80% Div. Paid €6.6m Pay-out 84% Div. Paid 19.9m 99.6 Pay-out 130% 268.5 252.3 14.4% +43%
Slide 12: Today's Agenda
Today’s Agenda ¾ 1H10 Results ¾ Net Inflows, AUM and recruiting ¾ Business Update ¾ Closing Remarks 12 Banca Generali 2010 First Half Results
Slide 13: 1H 2010 Net Inflows – Excellent achievements in volumes and product mix
Net inflows, AUM and recruiting 1H 2010 Net Inflows – Excellent achievements in terms of both volumes and product mix Total net inflows Strong increase in organic growth 686 646 612 (*) (*) Excluding Tax Shield In just 6 months, BG gathered the same net inflows of the last 2 years FY08 FY09 1H10 (
Slide 14: All managed asset product lines are strongly increasing
Net Inflows, AUM and recruiting All managed asset product lines are strongly increasing Net inflows in Managed Assets out of which BG Selection benefits (€ m) Mutual Funds and Sicavs from a switch out from single mutual funds 217 901 +119% 99 +467% +242% 1,253 159 1H09 1H10 217 Individual Portfolio
Slide 15: Cost of net inflows is close to zero
Net Inflows, AUM and recruiting Cost of net inflows is close to zero, as generated almost entirely by organic growth and asset transformation Net inflows in Managed Assets – 1H2010 1,253 Costs to acquire new inflows in managed assets for Banca Generali1 Switch from 0.15%2 607 administered assets Bet
Slide 16: 1H10 recruiting policy remains very selective
Net Inflows, AUM and recruiting 1H10 recruiting policy remains very selective, strictly focussed only on top FAs 1H10 Recruiting Results 1H10 AUM/FA ¾ Banca ¾ Banca Generali Generali hired hired 23 23 €m N. FAs AUM (€m) professionals professionals in in 1H10, 1H10, amongst amongst +13% them them 11
Slide 17: Banca Generali delivered a positive performance to its clients
Net Inflows, AUM and recruiting In a contest of unfavourable and highly volatile markets and low interest rates, Banca Generali delivered a positive performance to its clients Challenging markets for … that Banca Generali positively managed all asset classes.. Avg perf. for In-House Total In-House M
Slide 18: A well diversified product offer to meet all clients' financial needs
Net Inflows, AUM and recruiting A well diversified product offer to meet all clients’ financial needs AA unique unique offer offer on on the the competitive competitive scenario scenario able able to satisfy all the possible to satisfy all the possible needs needs of of high high demanding demanding
Slide 19: Level of managed assets sharply increased to 70% of total assets
Net Inflows, AUM and recruiting Level of managed assets sharply increased to 70% of total assets (from 66% at 2009 year-end) Banca Generali AUM Lux-based Assets Target of €5bn in (€ bn) Lux-based assets achieved six (€ m) +16.4% months early +2.2% +46% 22.7 22.2 5,008 +19% 19.5 5.8 (26%) 6.1 (27%) 7
Slide 20: Today's Agenda
Today’s Agenda ¾ 1H10 Results ¾ Net Inflows, AUM and recruiting ¾ Business Update ¾ Closing Remarks 20 Banca Generali 2010 First Half Results
Slide 21: BG Selection Sicav is a growing success
Business update BG Selection Sicav is a growing success, due to its very innovative concept BG Selection key strengths BG Selection AUM within Total AUM and Total Managed Assets For Clients An exclusive “umbrella product”, able to deliver to the clients: Best asset managers Best asset managers on
Slide 22: BG Selection Sicav – A wider and wider diversified product range
Business update BG Selection Sicav – A wider and wider diversified product range All underlying assets are Multi-manager Funds of Funds Single-manager Funds of Funds made of third-party funds Italy Pacific Pictet Eurizon Selection Regional Global Europe North America Europe Megatrend Equity Alpha Ge
Slide 23: BG Selection - A good mix of investments with reasonable volatility
Business update BG Selection - A good mix of investments, able to deliver excellent results with reasonable volatility Performance 1H2010 Emerging Markets 9.3% 799 mln Developed Return Markets Global and Thematic 226 mln 2.1% Equity 618 mln Total Return 3.0% and Flexible Equity 2,491 mln 1.2% Money
Slide 24: Life Insurance: growth will continue
Business update Growth will continue in the successful and well consolidated way Sources of growth Key products Existing clients New inflows Recruiting Asset diversification New Clients Good performance combined with controlled volatility Single mutual funds and Sicav Life Insurance Asset transf
Slide 25: Today's Agenda
Today’s Agenda ¾ 1H10 Results ¾ Net Inflows, AUM and recruiting ¾ Business Update ¾ Closing Remarks 25 Banca Generali 2010 First Half Results
Slide 26: Excellent results, so nothing changed in the strategy
Closing remarks Excellent results, so nothing changed in the strategy Banca Banca Generali Generali development development strategy strategy is is simple simple and and realistic, realistic, and and it’s it’s going going on on at at aa sure sure pace pace Fro m Our the Our strengths strengths Our O
Slide 27: The outlook remains very positive
Closing remarks The outlook remains very positive Banca Generali is demonstrating that: It is possible to grow in any context (bear, bull or volatile markets) It is possible, under any market condition, to deliver good returns to the clients, along with low volatility and safety of their investm
Slide 28: 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