Slide 1: Banca Generali 1Q 2011 Results and business update
Banca Generali 1Q 2011 Results and business update Milan, 10 May 2011
Slide 2: Agenda
¾ 1Q 2011 Results ¾ Net Inflows and recruiting ¾ Business Update ¾ Closing Remarks 2 Banca Generali 1Q11 Results
Slide 3: One of the best quarters for Banca Generali
1Q 2011 Results One of the best quarters for Banca Generali: profits are nicely up while volatility of revenues sharply decreased Net profit up +6% yoy 1. Jump in the sustainability of the results: 90% of revenues are actually recurring, thus their quality is strongly enhanced 2. Assets are growing
Slide 4: Strong enhancement of the recurring profits is occurring
1Q 2011 Results Strong enhancement of the recurring profits is occurring Contribution of market-related 1Q 2010 1Q 2011 YoY Change Markets in 1Q2011 were items to total revenues very volatile… (+) Performance Fees 10.2 4.1 -60% … so revenues linked to (+) Trading Income 9.4 2.5 -74% financial market
Slide 5: Consolidated 1Q 2011 Profit and Loss Account
1Q 2011 Results Consolidated 1Q 2011 Profit and Loss Account (€ mln) 1Q10 1Q11 % Chg 1Q10 1Q11 Var.% 1 1 (reported) (reported) (excl. GIL) (excl. GIL) Net Interest Income 10.9 11.1 1.4% 10.9 11.1 1.4% ¾ Interest margin starts to reap the Commission income 88.5 91.8 3.6% 83.1 84.1 1.2% benefits of th
Slide 6: Recurring income over 90% of total revenues
1Q 2011 Results Recurring income made up for over 90% of total revenues, thus dramatically enhancing their sustainability level Breakdown of Net Banking Income (LfL) Analysis of variations (€ m) -10% 5.7 (6.1) 70.2 70.2 63.0 63.0 (7.0) 10.9 0.2 (16%) +2% 11.1 (18%) (- €13.1) million of market-relate
Slide 7: Gross commissions proved solid thanks to strong management fees
1Q 2011 Results Gross commissions proved solid thanks to strong management fees, making the overall trend in revenues increasingly independent from financial markets’ conditions Breakdown of Gross Commissions (LfL) Quarterly management fees (LfL) (€ m) +25% (€ m) +1% 65.3 63.4 84.1 83.1 60.1 57.2 4.
Slide 8: Net Recurring Commissions grew by 14% yoy
1Q 2011 Results Net Recurring Commissions grew by 14% yoy, as focus on organic growth bears fruits Total net commissions (LfL) are stable ... … but growing nicely on a recurring basis (€ m) (ex performance fees)… -1% 49.9 49.5 +14% 45.3 39.6 1Q10 1Q11 1Q10 1Q11 … as focus on organic growth allows to
Slide 9: Interest income starts to benefit from the ongoing increase in interest rates
1Q 2011 Results Interest income starts to benefit from the ongoing increase in interest rates The ongoing increase in the Euribor rate.. ...is driving interest income up on a qoq… 1.5 (€ m) 1.4 3M Euribor 1.385 1.3 1Q2010-1Q2011 1.419 (6 May 2011) +5% 11.1 1.2 1.239 10.5 1.1 1.045 1.094 1 1.074 0.89
Slide 10: Further progress on cost management achieved in 1Q11
1Q 2011 Results Further progress on cost management achieved in 1Q11 Operating Costs (LfL) Staff costs (LfL) 16.3 16.5 37.4 -5% 35.5 +1% Operating Costs/AUM 44% 46% 0.16% 0.15% 1Q10 1Q11 54% 51% G&A Expenses (LfL) 20.2 1Q10 1Q11 18.1 2% 3% - 11% 1Q 10 1Q 11 Depreciation 1Q10 Staff G&A Expenses 1Q11
Slide 11: Recurring Profitability further improving compared to last year
1Q 2011 Results Recurring Profitability further improving compared to last year Recurring AUM profitability (LfL) ..driven by an increasingly higher contribution is improving.. from management fees +18 bps 1.69% 1.63% 0.18% 0.07% 1.12% 1.02% 0.97% 1.00% 1.37% 0.94% 1.31% 1.56% 1.51% +6 bps 1Q10 1H10
Slide 12: Total assets up by 4% yoy, managed assets 71% of total
1Q 2011 Results Total assets up by 4% yoy, driven by managed assets now representing 71% of the total Banca Generali Asset Breakdown Lux-based Assets +4% +28% (€ m) 5,908 +3% 5,759 23.8 714 660 22.9 4,612 5,248 6.6 (28%) +4% +10% 925 5,045 6.0 (26%) 3,687 3.2 (13%) 3.3 (14%) -3% 1Q10 FY10 1Q11 BG Si
Slide 13: Agenda
¾ 1Q 2011 Results ¾ Net Inflows and recruiting ¾ Business Update ¾ Closing Remarks 13 Banca Generali 1Q11 Results
Slide 14: Net inflows maintain a strong pace in volumes and product quality
Net Inflows and recruiting Net inflows maintain a strong pace in terms of both volumes and product quality Quarterly total Net Inflows Volumes 1Q 11 net inflows Quarterly Average 361 359 above the average At €316m of the last quarters 361 285 379 359 24 245 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 Net Inflows
Slide 15: Already €476 million of net inflows in managed assets in Jan-Apr 2011
Net Inflows and recruiting Already €476 million of net inflows in managed assets in Jan-Apr 2011 Total Net Inflows Net Inflows in Managed Assets Net Inflows in BG Selection 2010 figures include transformation of assets repatriated with the Tax Shield 922 into managed assets 518 476 443 428 376 398 6
Slide 16: Leading position in financial advisors' productivity in 1Q11
Net Inflows and recruiting Banca Generali confirms its leading position in financial advisors’ productivity in 1Q11 (€ m) 396.4 1Q2011 Market Net Managed Inflows* €1,366 mln 223.0 220.9 185.5 138.3 133.6 123.7 98.9 44.3 16.7 13.4 8.9 1.6 I a nk r ia i I a nk ro m ut rs PS em UB al SA nc nc he a tu i
Slide 17: 1Q11 recruiting policy remains selective
Net Inflows and recruiting 1Q11 recruiting policy remains selective 1Q11 Recruiting Results 1Q11 AUM/FA ¾ Banca ¾ Banca Generali Generali recruited recruited 99 N. FAs AUM (€m) +3% people people in in 1Q11 1Q11 with with an an average average portfolio portfolio of of > > €15 €15 million million eac
Slide 18: Assoreti: Ranking by Portfolio Size – 2010YE
Net Inflows and recruiting Assoreti: Ranking by Portfolio Size (i.e. AUM/Financial Advisor) – 2010YE 35 AUM/FA on December 31, 2010 32.2 30 25 20 16.6 15.7 15 12.5 12.5 11.4 10.2 10.5 9.2 9.1 10 7.8 7.4 7.4 7.1 7.0 6.3 6.2 5.3 5.1 5 1.7 0 I em te e a i ti co ro va am PS a i m I rk nk ria B al al IB
Slide 19: Agenda
¾ 1Q 2011 Results ¾ Net Inflows and recruiting ¾ Business Update ¾ Closing Remarks 19 Banca Generali 1Q11 Results
Slide 20: The growth strategy is skewed towards organic growth
Business update The growth strategy of Banca Generali is skewed towards organic growth Source of BG Growth Drivers for the The choice of net inflows Asset Gathering industry Reasons (actual and Banca Generali expected) If you have an excellent √ distribution network.. Organic growth Banca Generali
Slide 21: BG Selection: a true high consultancy product
Business Update The success of BG Selection stands in its capacity to offer a true “high consultancy” product Total AUM at April, 2011 € 5.3 bln 9 sub-funds Emerging 4 sub-funds Markets 22% 6 sub-funds Developed Markets Expected Return 7% Global Eastern Europe Global Diversified Equities Italy A
Slide 22: BG Selection launches 4 new sub-funds
Business Update BG Selections reinforces its products offer with the launch of 4 new sub-funds Innovative anti-inflation product Dynamic investing in selected sectors (commodities, mining, real estate, emerging markets) providing protection against New sub-funds rising inflation Anti-Inflation by
Slide 23: Individual Management Account: three new investment lines
Business Update Individual Management Account: three new investment lines with capital protection Dynamic NEW 2 new lines Approach with a dynamic approach: €900 m assets in 1Q11 The fund manager actively manages the underlying equity assets, chosen among BG Selection sub-funds, with the goal of redu
Slide 24: Life insurance remains a core pillar of Banca Generali offer
Business update Life insurance remains a core pillar of Banca Generali offer Life Assets up 9% in the first quarter Customers continue to appreciate +9% Banca Generali’s Life products for their: 7.1 6.5 9 capital guarantee Old products 9attractive investment return, amongst 75% New-style products 71
Slide 25: Agenda
¾ 1Q 2011 Results ¾ Net Inflows and recruiting ¾ Business Update ¾ Closing Remarks 25 Banca Generali 1Q11 Results
Slide 26: The long-term strategy is fully working and confirmed by 1Q2011
Closing remarks The long-term strategy of Banca Generali is fully working and is confirmed by 1Q2011 results: A couple of years back, Banca Generali recognized an enormous growth potential in the Italian Financial Services market represented by an increasing number of unsatisfied clients of tradit
Slide 27: 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
Slide 28: 2011 Upcoming Corporate Events and Investor Relations Contacts
2011 Upcoming Corporate Events Investor Relations Contacts JULY Su Mo Tu We Th Fr Sa Giuliana Pagliari 1 2 Head of Investor Relations 3 4 5 6 7 8 9 Tel +39 02 6076 5548 10 11 12 13 14 15 16 E-mail:giuliana.pagliari@bancagenerali.it 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1H 2011 results Stefania G