Banca Generali S.p.a. · MIL:BGN
Banca Generali — H1 2017 Earnings Presentation
21 slides from Banca Generali's earnings presentation, Jul 27, 2017
Slide 1: 1H 2017 Results
1H 2017 RESULTS 27 JULY 2017 SY BANCA dios. GENERALI
Slide 2: Agenda
AGENDA Preliminary remarks 1H results Net Inflows, assets and recruiting 2
Slide 3: Executive Summary
EXECUTIVE SUMMARY Strong and high-quality results, while laying foundation for future 1H 2017 growth NET PROFIT Strong revenues growth Cost discipline and operating leverage €108.1m (+61%) Solid capital ratios in line with sector best practice Superior business expansion based on a well-balanc
Slide 4: 1H 2017 Results: Key Takeaways
1H 2017 RESULTS: KEY TAKEAWAYS (€ m) 1H16* 1H17 % Chg STRONG TOTAL BANKING Net Interest Income 29.6 31.6 6.9% INCOME (+34%) Net income (loss) from trading activities and Dividends 19.6 9.4 -52.0% Healthy business trend reflected in sharply Net Financial Income 49.1 41.0 -16.6% Gross fees 284.5 382.8
Slide 5: 1H 2017 Business Trend: Key Takeaways
1H 2017 BUSINESS TREND: KEY TAKEAWAYS TOTAL ASSETS NET INFLOWS 41.6 47.5 52.1 5.7 36.6 43.6 4.0 4.6 3.8 76% 77% 4.0 2.9 76% 76% (BN/€) (BN/€) 75% 4.1 4.2 1.7 3.4 25% 24% 24% 24% 23% 2014 2015 2016 1H16 1H17 2014 2015 2016 1H16 1H17 AuA AuM AuA AuM TOTAL NO. OF FAs NEW RECRUITS 161 1,841 1,897 126 1,
Slide 6: Agenda
AGENDA Preliminary remarks 1H results in details Net Inflows, assets and recruiting 6
Slide 7: Revenues: Net Financial Income
REVENUES: NET FINANCIAL INCOME NET INTEREST INCOME + TRADING INCOME 49.1 41.0 MIXED TREND 9.4 NII + 7% yoy, Trading -52% yoy 19.6 (M/€) 29.6 31.6 1H16 1H17 BANKING BOOK AT €6.0BN (+25% NII Trading income YoY) with a defensive profile: 99% in INTEREST-BEARING ASSETS1 bonds o/w 92% government, 56% flo
Slide 8: Revenues: Net Fee Income
REVENUES: NET FEE INCOME GROWING RECURRING FEES FEE INCOME BREAKDOWN 280.0 237.1 74.0 21.7 28.9 25.7 (€ m) -131.7 -153.6 Management fees Entry & banking fees Performance fees Fee expenses HIGHER MANAGEMENT FEES (+18%) driven by volumes and product mix SPIKE OF ENTRY AND BANKING FEES (+33%) driven by
Slide 9: Revenues: Management Fees & Margin
REVENUES: MANAGEMENT FEES & MARGIN QUARTERLY TREND MANAGEMENT (M/€) 116.9 125.2 130.0 135.3 144.7 107.6 116.1 118.6 116.7 120.4 FEES 86.2 93.9 97.4 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 TOTAL AVG. MANAGED 51.2 (M/€) 38.3 39.8 40.8 41.7 43.2 44.8 46.2 49.0 30.9 32.3 35.1 39
Slide 10: Revenues: Other Fees
REVENUES: OTHER FEES QUARTERLY TREND FRONT 11.7 9.6 9.5 10.5 10.3 (M/€) 7.6 FEES 3.6 3.9 4.4 3.6 4.6 5.2 4.4 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 BANKING 9.8 10.1 (M/€) 8.8 8.5 9.5 6.8 9.2 9.1 FEES 6.8 7.5 6.2 7.1 6.1 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Slide 11: Operating Costs Breakdown
OPERATING COSTS BREAKDOWN COSTS IN LINE WITH GUIDANCE 42.0 43.7 34.8 33.6 8.6 10.3 (M/€) 2.0 1.8 2.3 3.8 Non-sales personnel Sales personnel costs BRRD & FITD funds Depreciation General expenses costs 1H16 1H17 TOTAL COSTS +2.2% (EXCL. SALES PERSONNEL) NON-SALES PERSONNEL COSTS DOWN 3.4% on lower va
Slide 12: Cost Ratios at Best Practice Levels
COST RATIOS AT BEST PRACTICE LEVELS OPERATING LEVERAGE IMPACT OPERATING COSTS/TOTAL ASSETS COST-INCOME RATIO 57.0% 0.54% 0.51% 50.5% 49.2% 50.1% 0.45% 0.40% 48.1% 44.9% 0.37% 0.35% 2012 2013 2014 2015* 2016* 1H 2017* 2012* 2013* 2014* 2015* 2016* 1H17* Cost/Income ratio (ex-performance fees) EFFICIE
Slide 13: Solid Capital Position
SOLID CAPITAL POSITION CAPITAL RATIOS FURTHER IMPROVING CET1 RATIO TOTAL CAPITAL RATIO 0.3% 17.0% 0.3% 18.7% 16.7% 18.4% 10.4% 6.4% 2016 1H17 2017 SREP 2016 1H17 2017 SREP requirements requirements EXCESS CAPITAL LEVERAGE RATIO 12 274 5.0% (0.1%) 262 4.9% (€ m) 2016 1H17 2016 1H17 SREP requirements:
Slide 14: Agenda
AGENDA Preliminary remarks 1H results Net Inflows, assets and recruiting 14
Slide 15: Total Assets by Product Category
TOTAL ASSETS BY PRODUCT CATEGORY RECORD GROWTH OF MANAGED SOLUTIONS TOTAL ASSETS FOCUS ON MANAGED SOLUTIONS 25.4 21.5 19.0 5.6 47.5 52.1 43.6 5.7 5.7 6.8 25.4 5.5 21.5 19.0 4.7 6.3 4.7 3.8 14.0 14.5 14.7 5.6 6.7 4.8 10.6 11.5 12.0 1H16 2016 1H17 (BN/€) 1H16 2016 1H 2017 FoFs Funds/SICAVs Banking pro
Slide 16: Total Inflows by Product Category
TOTAL INFLOWS BY PRODUCT CATEGORY ONGOING REBALANCING OF PRODUCT MIX TOTAL NET INFLOWS FOCUS ON MANAGED SOLUTIONS BY QUARTER, ROLLING NET INFLOWS. BY QUARTER 1,387 1,170 1,590 1,839 1,981 484 35% 13% 833 962 1,527 1,861 61% 48% 28% 28% 36% 36% 71% 83% 39% 27% 94% 43% 42% 44% 63% 13% 37% 44% 29% 26%
Slide 17: Total Assets & Inflows: Wrappers
TOTAL ASSETS & INFLOWS: WRAPPERS WRAPPERS GROWING FASTEST WRAPPERS WRAPPERS AUM SINCE INCEPTION NET INFLOW BY QUARTER 10.6 1,376 1,430 7.0 3.9 909 928 941 1.4 670 739 4.3 488 365 433 2.2 5.6 6.7 (BN/€) (M/€) 4.3 421 448 489 2.2 305 306 2014 2015 2016 1H17 2Q16 3Q16 4Q16 1Q17 2Q17 BG NEXT WRAPPERS so
Slide 18: BG Fund Management
BG FUND MANAGEMENT GROWTH DRIVEN BY THE INSTITUTIONAL COMPONENT LUX-BASED ASSETS SHARE OF INSTITUTIONAL FUND CLASSES 54.1% 51.0% 14.0 44.6% 11.8 12.5 35.5% 8.8 10.7 9.9 BG 18.5% 21.9% 9.3 SELECTION 7.3 BG SICAV 2.5 2.6 3.2 1.5 (BN/€) 0.1 BG ALTERNATIVE 2012 2013 2014 2015 2016 1H17 2014 2015 2016 1H
Slide 19: FA Network & Recruiting Activity
FA NETWORK & RECRUITING ACTIVITY GROWING SIZE & QUALITY NO. of FINANCIAL ADVISORS No. OF NEW RECRUITS 1,841 1,897 161 1,715 1,645 126 1,453 1,475 102 122 94 81 2012 2013 2014 2015 2016 1H17 92.0 76 57.0 AVG. ASSETS per FA 75.0 53 50 27.5 62.0 25.8 35 24.3 22.2 31 34 39 37 19.7 18 27 14 18.0 2012 201
Slide 20: Disclaimer
DISCLAIMER The manager responsible for preparing the company’s financial reports (Tommaso Di Russo) 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 21: 2017 Upcoming Events; Investor Relations Contacts
2017 UPCOMING EVENTS NOVEMBER Investor Relations Su Mo Tu We Th Fr Sa Contacts 1 2 3 4 Approval of 9M 2017 results 5 6 7 8 9 10 11 Investor Conference call Giuliana Pagliari Investor Relations Manager 12 13 14 15 16 17 18 Phone +39 02 6076 5548 Mobile +39 331 65 30 620 19 20 21 22 23 24 25 26 27 28