Banca Generali S.p.a. · MIL:BGN
Banca Generali — Q1 2014 Earnings Presentation
26 slides from Banca Generali's earnings presentation, May 8, 2014
Slide 1: 1Q 2014 Results and Business Outlook
1Q 2014 Results and Business Outlook Milan, 8 May 2014
Slide 2: Today's Agenda
Today’s Agenda 1Q 2014 Results Net Inflows, AUM and Recruiting Business Update & Closing Remarks Banca Generali 1Q 2014 Results and Business Outlook 2
Slide 3: An excellent start into 2014
An excellent start into 2014 Net profit at €38.9m (+10%) Reported Net Profit 38.9 • Best quarter since 3Q12 +10% • Strong growth in management fees at €81.8m (+19%) driven by the 35.5 strong business performance • Cost/Income ratios at a new record (€ m) low of 36.6%, as operating costs posted a neg
Slide 4: Constantly beating our own net inflows results
Constantly beating our own net inflows results Net Inflows Jan-April 2009-14YTD 1,020 2009-14 YTD Average 861 686 €599m 443 428 period 156 150 monthly Jan-April 2009 Jan-April 2010 Jan-April 2011 Jan-April 2012 Jan-April 2013 Jan-April 2014 (€ m) • Pace of growth significantly higher (+70%) than the
Slide 5: Group 1Q 2014 results: key takeaways
Group 1Q 2014 results: key takeaways (€ m) 3M13 * 3M14 % Chg 3M13 * 3M14 % Chg (reported) (reported) (excl. GIL) (excl. GIL) Total banking income up by 9% driven by higher Net Interest Income 33.5 28.7 -14.4% 33.5 28.7 -14.4% recurring income and Fee income 108.5 112.9 4.1% 100.8 103.0 2.2% favorabl
Slide 6: Continuous management fee expansions
Continuous management fee expansions Management fees Management fees on total assets 1.12 +19% 1.09 81.8 1.08 78.9 1.07 1.03 1.05 1.02 68.8 +4% 1.01 1.0 1.01 1Q13 4Q13 1Q14 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 (€ m) Relentless growth trend +41% 81.8 75.5 78.9 68.8 72.8 62.8 65.8 +4% 58.
Slide 7: Gross fees immune from performance fees trend
Gross fees immune from performance fees trend Breakdown of Gross Fees Performance fees-free • Recurring gross fees up 11% to €95.4m driven by management fees 103.0 100.8 +2% • Banking fees and entry fees broadly in 14.8 7.6 line with 4Q13. Unfavorable comparison 5.7 with 1Q13 which benefitted from 8
Slide 8: Core net interest income broadly stable
Core net interest income broadly stable Quarterly Net Interest Income Solid contribution from core NII • Core NII slightly increased QoQ supported by higher volumes and a satisfactory return of 2.2% on bond portfolio • The overall banking book amounted to €5.2bn (+4%) and had an average bond 24.2 20
Slide 9: Solid total revenues driven by core business
Solid total revenues driven by core business Total Revenues breakdown 104.6 95.4 95.6 86.0 33.5 28.7 +11.0% +9.4% 14.8 18.3 7.6 1.4 -40 -45.4 net interest gross perf. fees fee expenses trading & Total margin commissions dividend Revenues ex-perf. fees (€ m) 1Q13 (left column) – 1Q14 (right column) •
Slide 10: Costs well under control
Costs well under control Operating expenses Staff costs net of stamp duty1 17.7 18.1 +2.0% 39.3 38.5 +2.4% 1Q13 1Q14 (€ m) • Staff costs growing moderately (€ m) G&A costs ex-stamp duty 19.7 20.2 +2.3% 1Q13 1Q14 1Q13 1Q14 1 Stamp duty is fully recovered from clients. The increase is • G&A expenditur
Slide 11: Profitability ratios at best practice level
Profitability ratios at best practice level AUM profitability Cost/Income ratio 1.87% 1.90% 1.80% 55.8% 41.5% 1.59% 0.20% 0.16% 0.10% 39.1% 0.04% 36.6% 1.67% 1.74% 1.70% 1.55% 2011 2012 2013 1Q14 2011 2012 2013 1Q14 Performance Fees Recurring commissions & interest margin Figures do not incorporate
Slide 12: Capital strength further increased
Capital strength further increased Net Equity Excess Capital Tier 1 Capital Total Capital Ratio (%) Ratio (%) 528 154 14.8 15.0 144 14.2 14.4 469 13.0 11.8 395 106 2012 2013 1Q14 2012 2013 1Q14 2012 2013 1Q14 2012 2013 1Q14 (€ m) (€ m) Figures do not incorporate the contribution of Generali Investme
Slide 13: Today's Agenda
Today’s Agenda 1Q 2014 Results Net Inflows, AUM and Recruiting Business update & Closing Remarks Banca Generali 1Q 2014 Results and Business Outlook 13
Slide 14: Net Inflows YTD almost 50% of FY2013
Net Inflows YTD almost 50% of FY2013 Net Inflows YTD Net Inflows target for 2014 2,768 2,000 2,260 1,600 1,020 +25% (€ m) 923 2013 Jan-April 2014 Old New (€ m) Net Inflows in managed products Total net inflows • Net inflows entirely from retail clients, no direct channel (Web platform) • Steadily ga
Slide 15: An even stronger productivity level for managed products
An even stronger productivity level for managed products Ranking by FA productivity (Tot. Net Inflows/FAs) 793 +116% 544 382 318 265 252 206 198 189 164 (€ ‘000) Source: Assoreti, figures at 31 March, 2014 Banca Generali 1Q 2014 Results and Business Outlook 15
Slide 16: Banca Generali's FA productivity more than twice the industry average
Banca Generali’s FA productivity more than twice the industry average Ranking by FA productivity (Net Inflows in managed products/FAs) 833 +150% 457 271 250 224 183 134 129 126 107 (€ ‘000) Source: Assoreti, figures at 31 March, 2014 Banca Generali 1Q 2014 Results and Business Outlook 16
Slide 17: Banca Generali ranks No.1 by portfolio size
Banca Generali ranks No.1 by portfolio size Ranking by FA’s portfolio size (€ m) (Assets/FAs) +51% 20.4 16.8 15.5 14.8 13.4 13.1 10.7 9.6 8.3 7.3 7.1 6.9 Data at 31 March 2014 Source: Assoreti, figures at 31 December 2013 Banca Generali 1Q 2014 Results and Business Outlook 17
Slide 18: Total assets at €30.3bn driven by managed products
Total assets at €30.3bn driven by managed products Total Assets Managed vs. Banking products 30.3 +12% 27.0 8.7 (29%) Funds/SICAVs 7.4 (27%) 22.1 3.2 19.2 (10%) (73%) Portfolio 3.1 (71%) Management (12%) 10.2 Life Insurance 8.7 (34%) 7.8 8.2 (32%) (29%) (27%) Current Accounts 2.2 (8%) 2.3 (8%) 1Q13
Slide 19: BG Stile Libero, a 'wrapper' of managed products
BG Stile Libero, a ‘wrapper’ of managed products Jan-April 2014 Net Inflows split by product BG Stile Libero Split of underlying assets 97 10% Segregated accounts 582 341 20% Third-party funds/Sicavs (€m) 70% In-house funds/SICAVs BG Stile Libero Other managed products Banking Products • BG Stile Li
Slide 20: In-house SICAVs gaining ground
In-house SICAVs gaining ground In-house SICAVs Lux-based Assets Asset split +21% 6.8 1% 6.8 5.6 +21% 11% 17% 2% 5.6 16% 6.0 6.0 53% 5.25.2 (€ m) 0.4 0.8 Equity EM Flexible EM 0.4 0.8 Flexible funds Equity Global & Thematic 1Q13 1Q14 Equity DM Liquidity 1Q13 1Q14 (Total Assets at March 31, 2014 - €bn
Slide 21: Recruiting on track with record level of 2013
Recruiting on track with record level of 2013 Recruiting source No. of new recruits Other FA 81 Foreign networks private banks Italian 26 30 retail & private banks 2013 YTD 2013 2014 YTD 2013 YTD Recruits 2014 YTD Recruits FAs AUM FAs AUM 450 177 10 6 205 317 16 24 655 494 26 (€ m) 30 (€ m) Banca Ge
Slide 22: Today's Agenda
Today’s Agenda 1Q 2014 Results Net Inflows, AUM and Recruiting Business Update & Closing Remarks Banca Generali 1Q 2014 Results and Business Outlook 22
Slide 23: Shaping the new digital platform to support FA's activity
Shaping the new digital platform to support FA’s activity Digitalization is a priority for the bank to support FA’s activity and improve customer service: • “Financial & Insurance Desk’, a new APP to support FA’s activity with a wide range of special features (portfolios, diversification index, mark
Slide 24: Asset rebalancing confirmed as a priority for 2014
Asset rebalancing confirmed as a priority for 2014 Ongoing increase in demand for managed products backed by falling interest rates: Current Security accounts • Supporting environment for managed deposits products Net new money • Customers interested in better exploiting international investment opp
Slide 25: Closing remarks
Closing remarks Seizing growth opportunities • Exploiting favorable market conditions to amass assets • Recruiting high profile financial advisors • Evaluating M&A opportunities in Italy Sustainability of results • Focusing on recurring revenues • Maintaining full commitment on cost discipline • Kee
Slide 26: 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