Banca Generali S.p.a. · MIL:BGN
Banca Generali — H1 2011 Earnings Presentation
30 slides from Banca Generali's earnings presentation, Jul 29, 2011
Slide 1: 1H 2011 Results and business update
Banca Generali 1H 2011 Results and business update Milan, 29 July 2011
Slide 2: Agenda
¾ 1H 2011 Results ¾ Net Inflows, AUM and recruiting ¾ Business Update ¾ Closing Remarks 2 Banca Generali 2011 First Half Results
Slide 3: 1H11 results proved very solid despite market volatility
1H 2011 Results 1H11 results proved very solid when considering the sharp increase in the volatility of financial markets (€ m) A safe harbour in a stormy weather Net profit Gross of one-off Proven ability to deliver growth: Net inflows tax gains topped €579 m in 1H11 (close to the 1H10 level), even
Slide 4: Total income impacted by markets, offset by growth in recurring business
1H 2011 Results Total income impacted by the unfavourable trend in financial markets offset by the strong growth in the recurring business Analysis of variation in net profit (€ m) The instability of the Strong contribution financial markets is from recurring affecting market business related items
Slide 5: Consolidated 1H 2011 Profit and Loss Account
1H 2011 Results Consolidated 1H 2011 Profit and Loss Account (€ mln) 1H10 1H11 % Chg 1H10 1H11 % Chg (reported) (reported) (excl. GIL) (excl. GIL) Net Interest Income 22.4 21.5 -3.8% 22.4 21.5 -3.9% ¾ Interest margin lower on a Commission income 183.1 181.3 -1.0% 170.4 166.5 -2.3% reported basis, as
Slide 6: Revenues more solid as share of recurring income increased
1H 2011 Results Revenues look more and more solid as the share of recurring income increased by 9% yoy and now represents 91% of total income Recurring income1 Breakdown of Net Banking Income (LfL) (€ m) (€ m) -11% 112.9 139.3 +9% 123.9 103.6 22.3 (16%) -4% 21.5 (17%) 1H10 1H11 (1) management, front
Slide 7: Recurring commissions make up for 97% of total gross fees
1H 2011 Results Recurring commissions make up for 97% of total gross fees Quarterly management fees (LfL) Breakdown of Gross Commissions (LfL) (€ m) +16% (€ m) -2% 66.4 65.3 170.4 63.4 166.5 60.1 22.3 57.2 (13%) 5.1 (3%) 52.1 13.4 (8%) 18.6 (11%) 1Q 2Q 3Q 4Q 1Q 2Q 131.7 (79%) 2010 2011 109.3 +20% (6
Slide 8: Healthy increase in net commissions, with a stable pay-out ratio
1H 2011 Results Healthy increase in net commissions, with a stable pay-out ratio Net Commissions* (LfL) Pay-out* (LfL) 91.5 +13% 45.1% 81.3 43.3% 1H10 1H11 1H10 1H11 * Excluding performance fees * Excluding performance fees (€ m) Total Total net net commission commission decreased decreased by by 6.
Slide 9: Satisfactory result coupled with a very defensive investment strategy
1H 2011 Results Overall a satisfactory result coupled with a very defensive investment strategy Interest Margin (LfL) … reflecting decreasing assets parked slightly down yoy… in current accounts -11% 1.8 1.7 22.4 1.6 21.5 -7% -7% -3.9% 1H10 1H11 1H10 FY10 1H11 (€ m) (€ bn) The The investment inve
Slide 10: Excellent cost management continues in 2011
1H 2011 Results Excellent cost management continues in 2011, with a decrease of 3% in operating expenses Operating Costs Breakdown (LfL) Staff costs Increase due to Operating Costs/AUM the renewal of the 33.3 national contract. 32.8 77.8 The headcount is 0.34% -3% 75.8 stable 0.32% +2% -2 bps 42% 44
Slide 11: Recurring profitability further improving
1H 2011 Results Recurring Profitability further improving compared to the same period of last year AUM Profitability (LfL) Management fees contribution to AUM profitability 1.72% 1.59% +15 bps 0.20% 0.04% 1.12% 1.02% 1.47% 1.37% 1.32% 0.97% 1.55% 1.52% +5 bps 0.20% 0.27% 1H10 FY10 1H11 0.18% 1H10 1H
Slide 12: Banca Generali has further strengthened its solid capital base
1H 2011 Results Banca Generali has further strengthened its already solid capital base Shareholders’ equity Excess Capital Tier 1 Capital Total Capital Ratio and dividends paid €61.3m 14.6% €49.9m €6.6m 108.9 13.3% 281.2 +22% 12.2% 265.3 12.1% 268.5 89.6 +29% 11.0% -6% 9.8% 69.5 +4.7% 2009 2010 1H11
Slide 13: Agenda
¾ 1H 2011 Results ¾ Net Inflows, AUM and recruiting ¾ Business Update ¾ Closing Remarks 13 Banca Generali 2011 First Half Results
Slide 14: Positive start in 2011, with net new money at €579 million
Net Inflows, AUM and recruiting Positive start in 2011, with net new money at €579 million in the first half of 2011 Total Monthly Net Inflows in 2011... 145 €579 million in total net inflows, 106 108 broadly matching 82 69 69 the strong result of last year 24 (€646mln) Jan2011 Feb2011 Mar2011 Apr20
Slide 15: Ranked N°1 in net inflows in managed assets in 1H11
Net Inflows, AUM and recruiting Banca Generali ranked N°1 in terms of net inflows in Managed Assets in 1H11 and its distribution networks are at the top in terms of productivity 603.6 Jan-June 2011 Net Inflows in Managed Assets 532.8 454.0 392.0 359.4 235.4 186.6 157.3 104.4 101.5 45.1 19.7 mln K UM
Slide 16: Total assets up by 4% yoy, driven by managed assets
Net Inflows, AUM and recruiting Total assets up by 4% yoy, driven by managed assets Banca Generali Asset Breakdown Lux-based Assets +4% +15% (€ m) 5,738 5,759 23.7 714 562 22.7 5,008 5,176 6.5 (28%) +3% +7% 759 5,045 6.1 (27%) 4,249 3.2 (13%) 3.3 (14%) -3% 1H10 FY10 1H11 BG Sicav BG Selection Sicav
Slide 17: 1H11 recruiting policy remains selective
Net Inflows, AUM and recruiting 1H11 recruiting policy remains selective 1H11 Recruiting Results 1H11 AUM/FA ¾ Banca ¾ Banca Generali Generali hired hired 21 21 people people N. FAs AUM (€m) +3.2% in in 1H11 1H11 with with an an average average portfolio portfolio of of > > €13 €13 million million e
Slide 18: Agenda
¾ 1H 2011 Results ¾ Net Inflows, AUM and recruiting ¾ Business Update ¾ Closing Remarks 18 Banca Generali 2011 First Half Results
Slide 19: High volatility is affecting financial markets worldwide
Business Update High volatility is affecting financial markets worldwide, driving investors to look for safe havens for their investments 40 Volatility trend in the last 6 months Vstoxx* 35 30 Volatility persists 25 in financial markets 20 worldwide 15 10 *Vstoxx index: measure of the volatility of
Slide 20: The product offer ranges from liquidity-type to innovative asset management products
Business Update The product offer ranges from liquidity-type products to the most innovative and customizable asset management products… Current Securities Insurance Single funds Portfolio FoF accounts deposits products and Sicav Management Third-party Products funds ~40 >1,200 39 FoF 16 policies li
Slide 21: New exclusive products for private clients: GPM Lifestyle Solutions
Business Update … recently enriched by innovative and exclusive new products for Banca Generali private clients: GPM Lifestyle Solutions … New Product Target Clients High-profile clients (min. investment: € 175K) GPM who enjoy investing in their passions and that Life Style Solutions are looking for
Slide 22: BG for CityLife: mortgages and mortgage insurance
Business Update … and Banca Generali for CityLife, an exclusive offer of mortgages and mortgage insurance policies for BG clients New Products Target Clients High-profile clients of Banca Generali looking for BG for CityLife prestigious property solutions (€8,000 per m2) in the heart of Milan 1 Mort
Slide 23: Growth opportunities exploiting volatility in the bond markets
Business Update Interesting growth opportunities to attract new assets by exploiting on-going volatility in the bond markets Even government bonds are becoming volatile investments Strong interest from Italian investors that Banca Generali A powerful tool for: 96 94 can address with its: 92 90 Bond
Slide 24: Highly skilled networks assisting clients in volatile times
Business Update Our highly skilled networks are assisting clients in volatile times while keeping them focussed on long-term investment goals A strict selection operated since 2005 ... The high quality of Banca Generali networks is one of the main reasons for (n°) IN the steady asset growth (€m) 519
Slide 25: Agenda
¾ 1H 2011 Results ¾ Net Inflows, AUM and recruiting ¾ Business Update ¾ Closing Remarks 25 Banca Generali 2011 First Half Results
Slide 26: Two key priorities: safeguard of clients' investments and controlled equity exposure
Closing Remarks Since 2007 Banca Generali is successfully achieving its two key priorities, i.e. safeguard of clients’ investments paired with a controlled equity exposure AUM % on total Exposure to market volatility €23.7 bln AUM Mutual funds/Sicav/ Flexible and total return sub- €6.5 bln 28% funds
Slide 27: Ranking of Banca Generali in the Eurisko survey
Closing Remarks Again in 2011, Banca Generali ranked 1° in networks fidelization, confirming the excellent results of 2010 Ranking of Banca Generali in the Eurisko survey Survey “PF Monitor 2011” 2009 2010 2011 Overall satisfaction level 5° 3° A great step 2° ahead in just few years! Fidelization le
Slide 28: Well positioned to weather volatile economic times
Closing Remarks Banca Generali is well positioned to weather these volatile economic times to come out even stronger Times are tough and very unpredictable… …nevertheless, Banca Generali is very confident on its ability to sail even in stormy weather This is why: Banca Generali’s business model is
Slide 29: 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 30: 2011 Upcoming Corporate Events and Investor Relations Contacts
2011 Upcoming Corporate Events NOVEMBER Investor Relations Contacts Su Mo Tu We Th Fr Sa 1 2 3 4 5 6 7 8 9 10 11 12 9M 2011 results Giuliana Pagliari 13 14 15 16 17 18 19 Head of Investor Relations Tel +39 02 6076 5548 20 21 22 23 24 25 26 E-mail:giuliana.pagliari@bancagenerali.it 27 28 29 30 Stefan