Slide 1: Banca Generali: a successful business model
Banca Generali: a successful business model 9M 2016 results and business overview 8 November 2016
Slide 2: Agenda
Agenda 9M 2016 results Net inflows and recruiting Assets, clients, FAs Closing remarks Investor presentation – 9M2016 results and business overview 2
Slide 3: 9M results at a glance
9M results at a glance NNM AND ASSETS AT ALL TIME HIGH LEVELS €1,170m • Strong 3Q net inflows, 94% of which in managed products with (Vs. €780m, +50% yoy) a growing share represented by ‘wrapper’ solutions • Best-ever 9M net inflows (+36% yoy). Growth well above €4,087m sector average thanks to the
Slide 4: 9M & 3Q 2016 results
9M & 3Q 2016 results * (€ m) 9M 15 9M 16 % Chg 3Q 15 3Q 16 % Chg Preliminary remarks Net Interest Income 51.3 44.3 -13.7% 15.4 14.7 -4.5% Gross fees 491.3 446.4 -9.1% 128.2 161.9 26.3% Total 9M revenues came out Fee expenses -202.0 -198.7 -1.6% -72.9 -67.1 -8.0% at €323m (-12%) yet they are Net Fees
Slide 5: Total revenue breakdown
Total revenue breakdown 9M revenue breakdown (€322.6m) 340.5 362.3 100.3 51.3 44.3 26.3 30.6 50.5 31.4 52.7 9M15 (left column) – 9M16 (right column) -202.0 -198.7 (€ m) Net Interest Income Trading & dividend Management fees Other fees and Performance fees Fee expenses trading commissions Management
Slide 6: Stable Core NII in absolute value
Stable Core NII in absolute value Net Interest Income Quarterly trend 3.1 0.5 • Stable core NII on a quarterly basis 17.1 benefiting from higher banking assets 15.7 15.4 14.9 15.1 14.4 14.2 (€6.9bn, +31%) almost entirely (€ m) offsetting lower investment return 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 • F
Slide 7: Management fees further accelerating
Management fees further accelerating 125.2 116.9 118.6 116.7 120.4 116.1 107.6 93.9 97.4 86.2 Management 75.5 78.9 81.8 +€8.3m (+7.1%) fees reflect assets growth and stable margins (€ m) 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 40.8 41.7 43.2 44.8 38.3 39.8 39.8 Total average
Slide 8: Other fees and trading commissions
Other fees and trading commissions Entry fees reflect poor financial 11.6 9.5 9.5 10.5 10.3 markets and the 7.4 7.6 lack of placement 6.0 5.7 3.6 3.9 4.4 3.6 of structured (€ m) products 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Banking fees 9.8 9.5 8.4 8.9 8.5 8.0 7.5 proving
Slide 9: One-off items driving costs temporarily higher
One-off items driving costs temporarily higher Operating costs breakdown 66.2 (€138.6m) 59.6 1.6 49.3 51.7 9M15 (left column) 1.5 9M16 (right column) 10.5 13.0 2.0 4.2 3.4 3.5 (€ m) 0 4.2 Non-sales Sales personnel BRRD and FITD G&A (+11%, +8.4% Depreciation personnel costs costs (+24%, +4.8% funds (
Slide 10: Capital solidity further enhanced
Capital solidity further enhanced CET1 ratio Total Capital ratio (transitional) (transitional) 16.9% 1.0% 1.0% 15.9% 14.3% 15.3% SREP 10.6% SREP 7% 2015 9M 2016 2015 9M 2016 Excess Capital Leverage (transitional) (transitional) 33 246 213 6.3% (0.7%) 5.6% ECB 3% (€ m) 2015 9M 2016 2015 9M 2016 Inves
Slide 11: Net inflows and recruiting
9M 2016 results Net inflows and recruiting Assets, clients, FAs Business update & closing remarks Investor presentation – 9M2016 results and business overview 11
Slide 12: Net inflows at record high levels
Net inflows at record high levels Net Inflows Trend 4,087 3,016 38% 2,437 39% 1,846 40% 1,362 50% 754 34% 62% 61% 31% 60% 66% 50% (€ m) 69% 9M11 9M12 9M13 9M14 9M15 9M16 Exiting FA network Recruiting Banca Generali’s share of Assoreti total net inflows (1) 20.4% 13.4% 13.6% 14.6% 15.5% 11.8% 2011 20
Slide 13: Net Inflows: Banca Generali vs. sector
Net Inflows: Banca Generali vs. sector 4.1 3.0 Banca 1.1 1.5 1.1 1.4 1.2 Generali 0.8 +36% (€ bn) +36% +27% +50% 1Q 2Q 3Q 9M 20.6 20.0 Assoreti 7.5 7.7 7.7 6.6 5.4 5.7 -3% +3% -14% (€ bn) (ex-ISPB) +6% 1Q 2Q 3Q 9M 15.1 14.7 Top 5 5.5 5.6 5.5 4.8 -3% 4.1 4.2 (ex-BG) +3% -13% +2% (€ bn) 1Q 2Q 3Q 9M 20
Slide 14: Banca Generali top ranking by volumes
Banca Generali top ranking by volumes Total Net Inflows (€ m) 5,412 (9M 2016) ISPB 4,087 3,928 2,685 3,125 2,541 2,358 2,727 632 416 403 (139) Bca Fideuram Bca Generali B.ca Finecobank Allianz bank Azimut F&F Credem IW Bank Others & ISPB Mediolanum Net Inflows in managed and insurance products (€ m)
Slide 15: Banca Generali ranking No. 1 by productivity
Banca Generali ranking No. 1 by productivity Net Inflows/Financial Advisor (€ ‘000) 2,275 1,439 1,190 1,104 930 899 890 758 498 444 BANCA Azimut Finecobank Allianz Bank B.ca Fideuram B.ca AVERAGE (ex- Credem IW Bank F&F GENERALI Mediolanum BG) Net Inflows in managed and insurance products/ (€ ‘000)
Slide 16: Well-balanced product mix
Well-balanced product mix Net inflows: Net inflows: Product mix by quarter Wrappers growing fastest 739 1,530 1,387 1,170 670 15% 35% 433 365 40% 71% 311 27% 58 306 45% 253 305 38% 23% 6% 1Q16 2Q16 3Q16 1Q16 2Q16 3Q16 Banking products Traditional life policies BG Stile Libero BG Solution Managed pro
Slide 17: Successfully attracting top professionals
Successfully attracting top professionals No. of new recruits New recruits Avg. assets transferred per new recruits per year From retail & private banks 1st yr 2nd yr 3rd yr 4th yr From other FA networks 126 25.5 26.2 112 102 22.0 81 134 92 14.5 236 53 75 88 50 358 35 470 31 27 34 18 24 (€ m) 2012 2
Slide 18: October 2016 net inflows
October 2016 net inflows Net Inflows YTD Product mix 4,487 4,487 400 400 3,431 40% 415 67% 4,087 31% 3,016 25% 29% (€ m) (€ m) 8% 10m 2015 10m 2016 10m 2016 Oct.16 9m October Banking products Traditional insurance Managed products Net Inflows mix YTD Wrappers 2,000 280 3,431 4,487 1,005 149 3,174 2,
Slide 19: Assets, clients, FAs
9M 2016 results Net inflows and recruiting Assets, clients, FAs Business update & closing remarks Investor presentation – 9M2016 results and business overview 19
Slide 20: Assets overview (1/2)
Assets overview (1/2) Wrapper solutions Total Assets Wrappers/Managed assets Managed vs. non-managed 30.0 34.6 45.3 28.4 26.1 39.3 (87%) (82%) (€ bn) 3.9 (13%) 6.2 (18%) 34.6 9M15 9M16 30.0 (76%) (76%) Wrappers Other managed assets Lux-based assets Lux-based assets/Managed assets (€ bn) 9.3 (24%) 10
Slide 21: Assets overview (2/2)
Assets overview (2/2) Funds à la carte Total assets 10.5 10.8 (Product Mix) 4.2 4.7 (40%) (44%) +15.3% 45.3 6.3 6.1 (€ bn) (60%) (56%) 39.3 10.8 (24%) 9M15 9M16 10.5 (26%) 4.2 (9%) In-house funds Third-party funds 3.6 (9%) 5.2 (11%) 4.3 (11%) 14.3 (32%) 11.6 (30%) (€ bn) Assets u. administration 9.3
Slide 22: Financial Advisor overview (1/2)
Financial Advisor overview (1/2) FAs by avg. portfolio size FAs with assets >€15m and related assets 83% 81% 1,797 45.3 1,037 77% 943 816 36.1 71% 35.7 58% 621 83% 34.3 20% 33.4 23% 10% 7% No. of FAs (heads) Total Assets (€bn) 2013 2014 2015 9M16 Avg. Assets/FA (€m) % on total assets 4mln - 10 mln 1
Slide 23: Financial Advisor overview (2/2)
Financial Advisor overview (2/2) Core FA Retention at 99% Asset concentration by Financial Advisors’ portfolio 99.2% 98.7% 97.9% 98.0% 53% 45% 2012 2013 2014 2015 36% Based on the number of FAs leaving to competition (OUT core) 24% Headline FA Retention at 97% 15% 95.9% 96.5% 96.6% 95.2% 5% top 10 t
Slide 24: Customer overview (1/2)
Customer overview (1/2) No. of customers (>€10K) No. of Private Clients with and related assets Assets >€500K 61% 197.3 45.1 60% 9% 17,739 58% 16,073 30% 54% 13,939 61% 1.6 1.6 10,746 1.5 61% 28% 1.5 (€ bn) 11% No. of clients >€10K assets Total related assets 2013 2014 2015 9M16 No. of clients with
Slide 25: Customer overview (2/2)
Customer overview (2/2) Asset concentration by customer 38.4% TOT. CUSTOMER AVG. TENURE 1 26.4% 1113years years 10 months 10 months 19.5% 14.2% TOT. CUSTOMER CHURN-RATE 5% 6.1% 2.7% top 25 top 100 top 500 top 1,000 top 2,000 top 5,000 clients clients clients clients clients clients 1 Total customer
Slide 26: Closing remarks
9M 2016 results Net inflows and recruiting Assets, clients, FAs Closing remarks Investor presentation – 9M2016 results and business overview 26
Slide 27: Banca Generali: fit, sustainable and growing over time
Closing remarks Banca Generali: fit, sustainable and … Ongoing strong business trend driven by customers’ search for advisory to adress their family and investment protection needs High-quality and growing network of experienced professionals with outstanding loyalty levels Well-diversified client a
Slide 28: Contacts
Contacts Investor Relations Contacts Banca Generali Investor App Giuliana Pagliari Investor Relations Officer Phone +39 02 6076 5548 Mobile +39 331 65 30 620 E-mail: giuliana.pagliari@bancagenerali.it E-mail: investor.relations@bancagenerali.it Corporate Website www.bancagenerali.com Investor presen
Slide 29: Disclaimer
Disclaimer The manager responsible for preparing the company’s financial reports (Paolo Tamagnini) 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