Banca Generali S.p.a. · MIL:BGN
Banca Generali — Q1 2010 Earnings Presentation
28 slides from Banca Generali's earnings presentation, May 11, 2010
Slide 1: Banca Generali 1Q 2010 Results
Banca Generali 1Q 2010 Results Milan, 11 May 2010
Slide 2: Agenda
¾ 1Q 2010 Results ¾ Net Inflows and AUM ¾Business Update ¾ Closing Remarks 2 Banca Generali 1Q10 Results
Slide 3: The strong momentum is going on and accelerating
1Q 2010 Results The strong momentum is going on and accelerating in… Reported Net Profit … financial results (LfL1)… Net Profit at nearly 1Q10 Net profit at €18.8 mln, +276% yoy (€ m) 18.8 four times +276% Revenues driven • 1Q10 Net Banking Income €70.2 mln, +26% yoy by buoyant recurring • 1Q10 Gros
Slide 4: Consolidated 1Q 2010 Profit and Loss Account
1Q 2010 Results Consolidated 1Q 2010 Profit and Loss Account (1) (€ mln) 1Q 09 1Q 10 % Chg 1Q 10 % Chg (reported) (reported) (LfL) Net Interest Income 16.3 10.9 -32.9% 10.9 -32.9% Commission income 58.3 88.5 52.0% 83.1 42.7% Commission expense -24.5 -37.4 52.7% -33.3 35.8% Net Commission 33.7 51.1 5
Slide 5: Strong net commission income driving total revenues increase
1Q 2010 Results Strong net commission income driving total revenues increase Breakdown of Net Banking Income (LfL) (€ m) 70.2 +26% 10.9 (16%) ¾ Net Banking Income reaching €70.2 million, +26% yoy, even with a decline of interest margin 55.5 due to interest rates trend 16.3 (29%) ¾ Revenues growth le
Slide 6: Management fees continue to increase sharply
1Q 2010 Results Management fees continue to increase sharply, reflecting growth in net inflows and improving AUM mix Breakdown of Gross Commissions (LfL) Management fees (LfL, yoy) (€ m) (€ m) Excellent result in performance +40% 52.1 83.1 fees, due to the high over- performance of the assets 10.2 +
Slide 7: Net commissions growing faster than gross commissions
1Q 2010 Results Net commissions growing faster than gross commissions, thanks to pay-out confirmed at good levels Commission Income Commission Expense 1Q10 Net Commissions (LfL) (LfL) (LfL) (€ m) +43% (€ m) 83.1 (€ m) +48% 49.9 +36% 58.3 33.3 24.5 33.7 1Q09 1Q10 1Q09 1Q10 1Q10 Pay-out (LfL) 50% 45.7
Slide 8: Resilient results for interest margin
1Q 2010 Results Resilient results for interest margin Interest Margin decreasing yoy, yet holding well… … and increasing qoq Interest income -56% Interest Margin (qoq) 30.1 Interest Margin (yoy) 13.4 -33% 10.6 +3% 10.9 16.3 1Q09 1Q10 10.9 Interest expense -82% (13.8) (2.5) 1Q09 1Q10 4Q09 1Q10 1Q09 1
Slide 9: Very disciplined cost management
1Q 2010 Results As promised, very disciplined cost management, with cost base already positioned for further growth Operating Costs (LfL) almost unchanged.. ..compared with a sharp .. leading to a falling increase in AUM.. Operating Costs/AUM +1.9% +22% 37.4 22.9 36.7 Increasing evidence of Banca Ge
Slide 10: Profitability ratios improving
1Q 2010 Results Profitability ratios improving, reflecting volumes increase and improving asset mix AUM Profitability (LfL) +9 bps ¾ AUM ¾ AUM profitability profitability increased increased to to 1.69% 1.69% (+9(+9 bps bps yoy), yoy), even even after after accounting accounting for for the the fall
Slide 11: Agenda
¾ 1Q2010 Results ¾ Net Inflows and AUM ¾Business Update ¾ Closing Remarks 11 Banca Generali 1Q10 Results
Slide 12: Growth continues in April with €82 mln in net inflows
Net Inflows and AUM The growth of Banca Generali continues in April with €82 mln in net inflows, €123 mln in managed assets (€ m) April Net Inflows Cumulated Net Inflows About 76% of Net Inflows come (€ m) from organic growth (excluding +90% 443 recruitment) 82 +184% New clients acquisition is only
Slide 13: Net inflows in managed core products over €1.6 billion YTD
Net Inflows and AUM Net inflows in managed core products totalling more than € 1.6 billion YTD BG Selection Sicav Our strategy to switch into more 518 profitable products is proving successful 206 164 82 66 +284% Jan10 Feb10 Mar10 Apr10 YTD2010 922 Portfolio management 240 253 -84 -479 86 86 30 51 (
Slide 14: Assets increased to €22.9 billion
Net Inflows and AUM Good net inflows figures and positive funds’ performance drove assets to €22.9 billion Banca Generali Asset Breakdown Lux-based Assets (€ m) End April, Lux-based +22% assets further increased to €4.8bn +49% +3.1% 22.9 9% 4,612 22.2 4,219 925 18.8 3,091 13% 5.8 (26%) 6.0 (26%) 964
Slide 15: Customers' assets performing well and well protected
Net Inflows and AUM Our customers’ assets are performing well and, at the same time, are well protected Banca Generali In-House Products Performance 1Q2010 Total AUM Performance 22.9 as of April 2010 3.6% GPM Target (€ bn) 3.6% Average Performance 4.0% 3.5% BG Selection Sicav 1Q2010 3.5% 3.1% 2.12%
Slide 16: Agenda
¾ 2009 Results ¾ Net Inflows and AUM ¾Business Update ¾ Closing Remarks 16 Banca Generali 1Q10 Results
Slide 17: Further expansion in the Lux-based FoF product offer
Business update Further expansion in the Lux-based FoF product offer 2008 1H 2009 2H 2009 April 2010 2H 2010 8 geographical lines +1 geographical lines +1 geographical lines +4 flexible/total return Investment 3 global equity +1 global equity +3 flexible/total return +1 balanced lines 2 flexible/tot
Slide 18: New investment lines within BG Selection Sicav
Business update New investment lines within BG Selection Sicav, launched in the 1Q2010 Asset Manager Name and Classification Fund details 3S Prudent management approach with mix between bond Total Return investments and use of leverage MultiHedge Fund investing in ETFs of Hedge Total Return Funds of
Slide 19: Asset transformation is a key pillar of business strategy
Business update Asset transformation is a key pillar of current business strategy Lux-based Funds of Funds (FoF) AUM Asset category 1.7 bn Third-Party Funds +70% €3.9 bn Life insurance policy close to 2.2 bn €3.3 bn expiry and Rialancio policies €2.3 bn April 2010 7.1 bn Administered Assets 1Q09 FY0
Slide 20: 1Q10 recruiting policy remains selective
Business update 1Q10 recruiting policy remains selective 1Q10 Recruiting Results 1Q10 AUM/FA ¾ Banca ¾ Banca Generali Generali hired hired 12 12 people people N. FAs AUM (€m) in +23% in 1Q10 1Q10 with with an an average average portfolio portfolio of of > > €13 €13 million million each each +2% 60 3
Slide 21: New clients acquisitions (1/4)
Business update New clients acquisitions (1/4): a new way to support the encouraging growth of new clients The image of Banca Generali and its brand awareness has been significantly improving in the latest months We aim to increase visibility and, mainly, to seize the opportunity to get in touch
Slide 22: New clients acquisition (2/4): Events and Marketing activities
Business update New clients acquisition (2/4): Events and Marketing activities Dedicated Dedicated sports sports events events for for young young people people When: May to October, 2010 Banca Banca Generali Generali Sport Sport Village Village Potential contacts: more than 20,000 attendees Educati
Slide 23: New clients acquisition (3/4): Events and Marketing activities
Business update New clients acquisition (3/4): Events and Marketing activities Main Main sponsor sponsor of of the the international international meeting meeting of of :: World World Ducati Ducati Week Week When: June, 2010 Event Event organized organized every every two two years years by by Ducat
Slide 24: New clients acquisition (4/4): Events and Marketing activities
Business update New clients acquisition (4/4): Events and Marketing activities The The partnership partnership with with football football player player Alessandro Alessandro Del Del Piero Piero Events When: April to December 2010 Events with with the the participation participation of of Alessandro
Slide 25: Agenda
¾ 2009 Results ¾ Net Inflows and AUM ¾Business Update ¾ Closing Remarks 25 Banca Generali 1Q10 Results
Slide 26: Closing remarks (1/2)
Closing remarks Closing remarks (1/2) Banca Banca Generali Generali development development strategy strategy is is simple simple and and realistic, realistic, and and it’s it’s going going on on at at aa sure sure pace pace Our Our strengths strengths Our Our opportunities opportunities Satisfied
Slide 27: Closing remarks (2/2): a very good outlook
Closing remarks Closing remarks (2/2) In In aa nutshell, nutshell, aa very very good good outlook outlook Assets are Allocation of Recurring and Huge growing at low clients’ assets AUM steady part of operating acquisition is safe and profitability is revenues is leverage is a efficient at the improv
Slide 28: 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