Banca Generali S.p.a. · MIL:BGN
Banca Generali — 9M 2013 Earnings Presentation
27 slides from Banca Generali's earnings presentation, Nov 5, 2013
Slide 1: 9M 2013 Results and Business Update
9M 2013 Results and Business Update Milan, 5 November 2013
Slide 2: Today's Agenda
Today’s Agenda 9M 2013 Results Net Inflows, AUM and Recruiting Business Update Closing Remarks Banca Generali 9M 2013 Results and Business Update 2
Slide 3: Strong results from growing business
Strong results from growing business Net Profit High-quality 9M13 results +105% • 9M13 net profit at €105m (+8%): best result 105.1 for the period, on top of the +90% increase 97.5 achieved last year in the period • Enhanced sustainability: recurring revenues 51.2 +8% +15% vs. operating costs +3% As
Slide 4: Significant increase in assets and in net inflows
Significant increase in assets and in net inflows Ongoing positive momentum Total Net Inflows 2,006 • Strong 9M net inflows with an average run-rate 1,846 of €205m/month, +54% from 2012 level 1,602 1,260 • New money into managed products totaled €2.1 bn, as the bank is successfully rebalancing custo
Slide 5: Consolidated 9M13 results: main takeaways
Consolidated 9M13 results: main takeaways (€ m) 9M12 * 9M13 % C hg 9M12 * 9M13 % C hg (reported) (reported) (excl. GIL) (excl. GIL) Net Interest Income up by 15% driven by the ordinary Net Interest Income 80.4 92.3 14.9% 80.4 92.3 14.9% business (+27%) C ommission income 288.6 319.9 10.8% 267.1 295.
Slide 6: Recurring components drove revenues higher
Recurring components drove revenues higher Total Revenues Total Revenues ex-performance fees +7% 269.1 269.1 251.3 251.3 29.4 (11%) 92.3 42.9 (17%) 80.4 (34%) (32%) 239.7 165.5 161.9 (62%) 208.4 +15% (89%) (64%) (83%) (€ m) (€ m) 9.1 (4%) 11.3 (4%) 9M12 9M13 9M12 9M13 Net Interest Income Net Fees Ne
Slide 7: Net interest income: strong boost from core business
Net interest income: strong boost from core business Net Interest Income +27% increase in core NII • Core income was driven by surging volumes and slightly lower funding costs 92.3 +15% • The overall return on the banking book (€4.3 80.4 bn) is proving stable and defensive with a maturity of 2.2 and
Slide 8: Gross fees: double-digit growth led by management fees
Gross fees: double-digit growth led by management fees Breakdown of total gross fees Quarterly management fees 295.2 (€ m) 267.1 (12%) +20% 75.5 29.4 72.8 (8%) 23.1 68.8 (16%) 42.9 65.7 +4% 19.7(7%) 62.8 217.1 (71%) 265.8 185.6 3Q12 4Q12 1Q13 2Q13 3Q13 224.2 (70%) Recurring gross fees up by 19% (7%)
Slide 9: Net fees: double digit growth with pay-out reflecting strong business trend
Net fees: double digit growth with pay-out reflecting strong business trend Pay-out ratio excl. perf. fees Net Fees (excl. performance fees) 46.9% 48.8% 9M12 9M13 Total Net Inflows +14% 136.1 1,846 119.0 (€ m) 1,362 9M12 9M13 Net Inflows in managed products 2,076 (€ m) 984 (€ m) 9M12 9M13 9M12 9M13
Slide 10: Enduring discipline in cost management
Enduring discipline in cost management Operating expenses Cost/Income ratio 65% +3.0% 56.2% 54.3% 58.6% 55% 112.2 42.0% 108.9 45% 40.3% 50.6 51.3 35% (46%) (46%) 9M09 9M10 9M11 9M12 9M13 57.2 Outstanding cost control 54.9 (51%) (51%) • Both staff costs (+1%) and overheads (+4%) posted a low single-d
Slide 11: Recurring profitability at 1.63% (ex-performance fees, ex-LTRO)
Recurring profitability at 1.63% (ex-performance fees, ex-LTRO) AUM profitability Strong growth in recurring 1.88% 1.90% profitability 0.23% 0.14% 0.13% already matched 0.16% LTRO contribution • This strong result reflects management focus on asset 1.49% 1.63% rebalancing in the last 12 months • Thi
Slide 12: Strong capital ratios supporting the bank's growth strategy
Strong capital ratios supporting the bank’s growth strategy Excess Capital Tier 1 Capital Ratio Total Capital Ratio 15.1% 144.4 14.1% 12.8% 13.0% 11.8% 105.8 11.1% 89.1 2011 2012 9M13 2011 2012 9M13 2011 2012 9M13 (€ m) Banca Generali 9M 2013 Results and Business Update 12
Slide 13: Today's Agenda
Today’s Agenda 9M 2013 Results Net Inflows, AUM and Recruiting Business Update Closing Remarks Banca Generali 9M 2013 Results and Business Update 13
Slide 14: Best results by volume and mix since 2008
Best results by volume and mix since 2008 2500 Net Inflows 2,270 2,076 2,006 2000 1,846 1,510 1500 1,362 984 1000 891 755 532 563 468 500 329 0 (€ m) -112 -500 9M08 9M09 9M10 9M11 9M12 9M13 Jan-Oct 2013 Net Inflows in managed products (funds, SICAV, PM, insurance) Total net inflows • October net inf
Slide 15: Best net inflows ever in Funds/SICAV in the period
Best net inflows ever in Funds/SICAV in the period Funds/SICAV/Portfolio management 1,360 1500 1,295 1000 620 • Inflows are equally split 500 212 238 0 -22 between in-house and -500 third party products -1000 -1500 -1,193 9M08 9M09 9M10 9M11 9M12 9M13 Jan-Oct (€ m) 2013 1,081 Insurance products 1.20
Slide 16: Strong asset increase driven by funds/SICAV and insurance
Strong asset increase driven by funds/SICAV and insurance Asset Breakdown Lux-based SICAV (GFM) 28.2 +10% +24% 6.3 25.5 5.1 8.0 (28%) 5.5 Funds/SICAVs 6.4 4.8 (25%) 3.2 0.3 0.8 Portfolio 3.1 (11%) 20.4 Management (12%) 9M12 9M13 (€ bn) 17.6 9.2 Sharp increase in managed products Life Insurance 8.1 (
Slide 17: Speed-up in recruiting pace thanks to favourable market conditions
Speed-up in recruiting pace thanks to favourable market conditions Jan-Sep 2012 Recruits Jan-Sep 2013 Recruits FAs AUM FAs AUM 560 209 8 14 550 388 32 43 597 1,110 40 57 (€ m) (€ m) • 57 people recruited YTD with a significantly higher profile than those recruited in the past years (average portfoli
Slide 18: Today's Agenda
Today’s Agenda 9M 2013 Results Net Inflows, AUM and Recruiting Business Update Closing Remarks Banca Generali 9M 2013 Results and Business Update 18
Slide 19: Key actions in place
Key actions in place Recruiting Lombard lending Rebalancing product mix Enhancing advisory model Banca Generali 9M 2013 Results and Business Update 19
Slide 20: Momentum in network expansion, thanks to favourable market conditions
Momentum in network expansion, thanks to favourable market conditions Banca Generali’s yearly recruits +30-40% • Target of 2013 new 70-75 recruits raised to 70-75 51 53 57 by year-end (est. +30%- 46 52 40% yoy) 2009 2010 2011 2012 9M 2013 2013 target (€ m) Avg. assets/New recruits +25-35% • Sharp in
Slide 21: Secured lending grew steadily, leading to strengthened ties with customers
Secured lending grew steadily, leading to strengthened ties with customers Customer Loan Book 2,327 1,930 1,517 Customer loans are 1,194 1,299 effective tools to 1,081 785 strengthen ties with 601 best customers… 2010 2011 2012 9M 2013 (€ m) Customer Loans Collateral … enhancing income diversificati
Slide 22: Rebalancing asset mix will remain a priority also in the next few months
Rebalancing asset mix will remain a priority also in the next few months Banca Generali Asset mix Fund, SICAVs and portfolio 37.2 37.8 39.7 Management 1 Insurance 31.9 32.4 32.7 Assets under 30.9 29.8 27.6 custody 9M12 FY12 9M13 • Banca Generali’s exposure to managed products1 can be significantly e
Slide 23: 2013 targets for managed products achieved faster than expected
2013 targets for managed products achieved faster than expected Net inflows in managed products Targets revised upwards for the year Forecast • Banca Generali’s exposure to 4Q 2013 managed products increased by +3.0 p.p. in the last 12 months (to 72% of total assets) • Growth in managed products 2,0
Slide 24: A new customer interface model to strengthen competitive position
A new customer interface model to strengthen competitive position From Investment advisory … … to Wealth Management From a plain advisory on ... to customized solutions aimed at investment and trading…. meeting any financial needs from banking to real estate, investments, inheritance and other relat
Slide 25: Today's Agenda
Today’s Agenda 9H 2013 Results Net Inflows, AUM and Recruiting Business Update Closing Remarks Banca Generali 9M 2013 Results and Business Update 25
Slide 26: Closing remarks
Closing remarks • Rebalancing of customer portfolios well ahead of Well placed to beat 2013 the plan business targets • Persisting favourable conditions for recruiting of high profile and talented professionals Well placed to 2013 record • Enhanced revenues and gross margin sustainability earnings •
Slide 27: 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