Slide 1: 1Q 2016 Results and Business Outlook
1Q 2016 Results and Business Outlook Milan, 11 May 2016
Slide 2: Today's Agenda
Today’s Agenda 1Q 2016 Results Net inflows and recruiting Business Update & Closing Remarks Banca Generali 1Q 2016 Results and Business Outlook 2
Slide 3: Solid long-term business trend
Solid long-term business trend … Strong commercial results despite complicated financial markets Morgan Stanley World Index MSWI -5.8% MSWI +14.6% MSWI - 4.1% MSWI -9.1% MSWI +8.6% Prices in euro Apr-15 May-15 Mar-15 Dec-15 Aug-15 Oct-15 Mar-16 Jan-15 Jun-15 Nov-15 Jan-16 Feb-15 Jul-15 Sep-15 Feb-16
Slide 4: … some short-term headwinds
… some short-term headwinds Performance fees Trading income 24.6 72.0 -99% -41% 14.5 0.9 €m €m 1Q15 1Q16 1Q15 1Q16 Net Profit Adj. Net Profit 93.1 +50% -68% 18.6 12.4 29.4 €m €m 1Q15 1Q16 1Q15 1Q16 Banca Generali 1Q 2016 Results and Business Outlook 4
Slide 5: 1Q 2016 results: key takeaways
1Q 2016 results: key takeaways * (€ m) 3 M 15 3 M 16 % Chg * Resilient core revenues in a backdrop of Net Interest Income 18.8 15.1 -19.5% challenging financial markets: Gross fees 199.9 127.8 -36.1% • NII broadly stable excl. LTRO Fee expenses -62.9 -62.5 -0.5% • Net fees stable excluding one-off d
Slide 6: Solid core net revenues
Solid core net revenues Revenue breakdown Core net revenues (*) 80.7 79.5 127.9 126.9 72.0 18.8 15.1 24.6 14.5 0.9 (€ m) 1Q15 1Q16 (€ m) -62.9 -62.5 (*) Core revenues= recurring fees+ fee expenses + NII Net Interest Recurring Performance Fee expenses Trading & income excl. LTRO Income fees fees divi
Slide 7: Highly resilient management fees
Highly resilient management fees Recurring fees Quarterly management fees 118.6 (management, entry, banking) 116.1 116.9 116.7 107.6 (€m) 127.9 126.9 93.9 97.4 +8.5% 10.5 3.9 86.2 81.8 78.9 75.5 72.8 107.6 116.7 68.8 65.8 61.5 62.8 61.2 58.2 (€m) 9.8 6.3 1Q15 1Q16 Banking Fees Management Fees Entry
Slide 8: Solid NII, in line with guidance
Solid NII, in line with guidance Net Interest Income Strong growth in deposit and customer loans proved supportive for NII, partially 18.8 offsetting negative interest rates 3.1 14.9 15.1 15.7 14.9 15.1 • Sharp increase in volumes (6.5bn (€ m) +28% yoy) driven primarily by the 1Q15 4Q15 1Q16 intense
Slide 9: Tight cost management
Tight cost management Operating expenses +4% Operating costs +2.2% excl. the pro- 43.3 rata contribution to resolution (BRRD) 41.5 and deposit protection (FITD) funds 19.6 +5% 20.5 • Staff expenses (+5%) to strengthen commercial network and support staff 20.8 • G&A expenses were flat excl. bank +4%
Slide 10: Strong capital ratios retained
Strong capital ratios retained Excess Capital CET1/Tier1 Ratio Total Capital Ratio (€ m) 213.0 214.0 14.3% 14.1% 15.9% 15.7% 14.2% 12.2% 158.0 2014 2015 1Q16 2014 2015 1Q16 2014 2015 1Q16 Excess capital to €214m • Capital ratios well above SREP requirement of 10.6% for Total Capital Ratio • Leverage
Slide 11: Today's Agenda
Today’s Agenda 1Q 2015 Results Net Inflows and Recruiting Business update & Closing Remarks Banca Generali 1Q 2016 Results and Business Outlook 11
Slide 12: Record year-start for net inflows
Record year-start for net inflows Net inflows Net Inflows as % of assets 4.7% 1,959 5Y CAGR 1,447 4.0% +36% 3.5% Sharp 1,020 3.3% growth 861 acceleration 686 2.9% 428 €m 4M 11 4M 12 4M 13 4M 14 4M 15 4M 16 4M 12 4M 13 4M 14 4M 15 4M 16 Banca Generali 1Q 2016 Results and Business Outlook 12
Slide 13: Net Inflows driven by new private customers
Net Inflows driven by new private customers Net Inflows from new customers Net Inflows split by customer (Jan-Apr. 2016) (Jan-April 2016) 10,170 1.418 29% 16% 89% 28% 72% 55% 6% €m 5% No. Customers 1 Net inflows from new customers 2 existing customers new customers Portfolio >500K Portolio 250K-500K
Slide 14: Net inflows mix gradually normalizing
Net inflows mix gradually normalizing High cash pile gradually shifting into 2016 YTD Net Inflows mix managed products 530 584 416 429 Managed products: back in demand as cash 86 122 pile starts to be shifted towards managed 147 156 solutions (BG Solutions and BG Libero, most of all) 367 125 123 417
Slide 15: Top of group peers by FA's productivity
Top of group peers by FA’s productivity 882 Over 2X industry average 622 Avg. 1Q16 463 393 380 329 326 309 FA’s overall 201 128 productivity BANCA Azimut Fineco B.ca Average Allianz Bank Bca F&F Credem IW Bank GENERALI Mediolanum Fideuram + ISPB (€ ‘000) Source: Assoreti, data as of 31 March, 2016 5
Slide 16: Total customers' assets
Total customers’ assets Total Assets Assets base up by 40% in the last two years +40% despite challenging equity markets in the 42.5 last 12 months 39.5 30.3 • 1Q16 assets supported by a defensive 32.2 investment profile (equity exposure at 30.0 (76%) 22.1 (76%) 20% of total) in a context of highly
Slide 17: Resilient assets thanks to a defensive mix
Resilient assets thanks to a defensive mix Total Asset breakdown €bn 1Q 2014 1Q 2015 1Q 2016 Asset Mix (+) Funds/SICAVs 8.7 11.1 10.5 (+) Portfolio management 3.2 4.1 3.6 Equity; Life 20.0% segregated (+) BG Stile Libero, multiline 0.8 3.8 4.5 funds; (A) Managed products 12.7 19.0 18.6 31.0% Alterna
Slide 18: Well-diversified Lux-based assets
Well-diversified Lux-based assets Lux-based SICAVs In-house SICAVs: Asset split 3% 2% +67% 11.5 13% 10% 10.5 13% 14% 6.9 45% 9.1 8.6 Equity EM Bond 6.0 Multi-asset funds Equity Global & Thematic Equity DM Real assets (€ bn) 1.9 2.4 Liquidity 0.9 70% of bond funds in: EM debt, income- 1Q14 1Q15 1Q16
Slide 19: Successfully attracting top professionals
Successfully attracting top professionals No. of new recruits Avg. Portfolio/new Recruiting +26% 20.8 +85% 50 16.5 16.8 36 27 (€m) 4M 2014 4M 2015 4M 2016 4M 2014 4M 2015 4M 2016 Banca Generali 1Q 2016 Results and Business Outlook 19
Slide 20: Outstanding network profile
Outstanding network profile No. of Financial Advisors (FAs) Banca Generali vs. “Top” Assoreti 2,006 Total Assets/No. FAs 1,862 1,793 24.3 +19% 1,7151738 +22% 1,635 1,645 20.0 1,564 +68% 1,499 1,475 1,4711,453 14.5 (€ mln ) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q16 Avg. Top 10 Avg.
Slide 21: Today's Agenda
Today’s Agenda 1Q 2015 Results Net Inflows and Recruiting Business Update & Closing Remarks Banca Generali 1Q 2016 Results and Business Outlook 21
Slide 22: The No. 1 Bank
Current Agenda Value proposition The No. 1 Bank by value proposition Products and services and innovation Operations and commercial supports Banca Generali 1Q 2016 Results and Business Outlook 22
Slide 23: Value proposition: focus on real-estate (1/2)
Value proposition: focus on real-estate (1/2) Time to reconsider real-estate INVESTMENT investments PLANNING Total Real Estate Assets Value of transactions FAMILY owned by Italian Household (Italian residential) PROPERTY & PROTECTION, REAL ESTATE (€ tn) (€ bn) LEGAL ADVICE MANAGEMENT CLIENT 5.85 5.8
Slide 24: Value proposition: focus on real-estate (2/2)
Value proposition: focus on real-estate (2/2) BUSINESS OPPORTUNITY BANCA GENERALI’S TOOLS €14.6bn (avg. €2.8m) €3.2bn • 1,100 financial advisors already trained (63% (avg. 600K) of total) from the start of 2016 5,132 • 500 advisory requests already open • High-standing partnership with sector No. of
Slide 25: Proven commitment to product innovation
Proven commitment to product innovation INSURANCE PORTFOLIO MANAGEMENT AFFLUENT to UPPER AFFLUENT CUSTOMERS Launch date: March 2014 Launch date: March 2016 €4.6bn €99m PRIVATE CUSTOMERS Launch date: March 2016 Launch date: March 2016 €100m €74m Net inflows €4.7bn Net inflows €173m in 2.2 years in 1
Slide 26: Efficiency and innovation
Efficiency and innovation CALL CENTER E BACK OFFICE DIGITAL COLLABORATION • Focus on increasing efficiency and providing • Focus on enhancing FA’s productivity as well bespoke assistance as service to customers • Enhancing assistance by sector specialists • APP for checking portfolio positions, rece
Slide 27: A distinctive business model
Closing remarks A distinctive business model Able to achieve Able to attract top Professionals, SUSTAINABLE RESULTS PEOPLE OF VALUE A clear mission: UNIQUE BY BUSINESS MODEL, PRIVATE BANKING SERVICE SOLIDITY, QUALITY, VALUE with an HIGH-STANDING PROPOSITION, INNOVATION DIGITAL SUPPORT Banca Generali
Slide 28: Disclaimer
Disclaimer The manager responsible for preparing the company’s financial reports (Stefano Grassi) 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 a