Banca Generali S.p.a. · MIL:BGN
Banca Generali — FY2015 Earnings Presentation
34 slides from Banca Generali's earnings presentation, Feb 10, 2016
Slide 1: FY 2015 Results and Business Outlook
FY 2015 Results and Business Outlook 10 February 2016
Slide 2: Best results ever
Best results ever BOOMING BUSINESS VOLUMES Best net profit ever • Record net inflows at €4.6bn (+37% on a LfL basis) • Highest assets ever at €41.6bn (+14% yoy) 203.6 • Size of the network at 1,715 (+4% yoy, +18% 3yrs) 160.9 RECORD FINANCIAL RESULTS 141.3 129.8 +27% • Solid revenue growth at €465.9m
Slide 3: 2015 results: key takeaways
2015 results: key takeaways (€ m) 12M14 * 12M15 % Chg Total Banking income up by 11% driven by: Net Interest Income 107.0 66.2 -38.1% • Solid trend in management fees (€459.1m, +28%) * reflecting higher asset base and the improvement Gross fees 484.6 652.0 34.5% in product mix occurred in the period
Slide 4: Today's Agenda
Today’s Agenda 2015 financial results Dividend and capital position Net inflows, assets, recruitment 2016: more to come Banca Generali – FY 2015 Results and Business Outlook 4
Slide 5: Solid revenue growth
Solid revenue growth Recurring fees sharply up 524.8 465.9 427.7 419.2 +23% +11% 127.2 107.0 56.9 66.2 55.0 28.9 -227.4 (€ m) -281.2 Recurring Performance Fee expenses Net interest Trading & Total fees fees margin dividend revenues 2014 (lhs) – 2015 (rhs) • Strong fee-income trend reflecting the sig
Slide 6: Growing recurring fees …
Growing recurring fees … Recurring fees (management, entry, banking) Total recurring fees up by 23% yoy in +72% +23% 524.8 2015 driven by: 32.0 427.7 • Management fees (88% of total) 359.1 36.3 increased by 28% driven by higher 305.3 29.1 assets and better product mix 27.1 459.1 • Banking fees (6% o
Slide 7: … driven by management fees
… driven by management fees Quarterly management fees 116.1 116.9 118.6 (€m) 107.6 97.4 93.9 86.2 78.9 81.8 +22% 75.5 72.8 68.8 65.8 62.8 58.2 61.2 61.5 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Avg. managed 22.8 24.1 24.5 25.1 25.8 26.6 27.4 27.8 28.7 29.7
Slide 8: Lean and sound NII
Lean and sound NII Reported NII 107.0 2015 NII trend in line with guidance 52.6 66.2 Sound and growing lending activity: 19.9 39.9 • Total revenues at €23.2million (+17%); 34.5 23.2 • Secured loans at €1.8bn with collateral assets (€ m) 3.1 worth €3.1bn and an outstanding asset quality 2014 2015 wit
Slide 9: Cost discipline at its best
Cost discipline at its best Operating expenses1 Staff costs (Staff costs, G&A ex-stamp duty, depreciation) 74.2 80.9 165.8 166.9 +9.0% (€ m) 2014 2015 +0.7% • Increase driven by the strengthening of relationship managers and support staff to FAs G&A costs ex-stamp duty (€ m) 87.2 80.7 2014 2015 -7.5
Slide 10: Excellent profitability ratios
Excellent profitability ratios Cost/Income Fee-based margin 55.8% 1.63 1.46 1.50 1.43 41.5% 39.1% 38.5% 34.7% 0.18 0.32 0.20 0.16 0.12 0.10 0.08 0.11 0.11 0.11 0.08 2011 2012 2013 2014 2015 0.11 Recurring 1.15 profitability Operating costs/Total assets 1.01 1.07 1.11 (%) 0.59% 0.54% 0.51% 2012 2013
Slide 11: Today's Agenda
Today’s Agenda 2015 financial results Dividend and capital position Net inflows, assets, recruitment 2016: more to come Banca Generali – FY 2015 Results and Business Outlook 11
Slide 12: Dividend return well above risk-free rate
Dividend return well above risk-free rate Dividend per Share (DPS) 1.20 5.8% 0.98 4.0% +22% 1.8% 1.7% 2014 2015 BoD's proposal 2014 2015 to AGM 1 Dividend yield Risk-free rate (10Y IT Govt) 2006-2015 Div. Yield 1.0% 2.6% 2.2% 5.3% 6.1% 7.6% 7.0% 4.2% 4.0% 5.8% 2 (1) AGM scheduled for 21/22 April 201
Slide 13: Solid and sharply growing capital ratios
Solid and sharply growing capital ratios CET1 Total Capital ratio 1.7% 15.9% 2.1% 14.3% 14.2% 12.2% 2014 2015 2014 2015 Excess Capital Leverage ratio 213 1.3% 55 6.3% 158 5.0% (€ m) 2014 2015 2014 2015 Capital ratios compliant with B3 requirements (transitional) Banca Generali – FY 2015 Results and
Slide 14: Capital Ratios well above SREP requirements
Capital Ratios well above SREP requirements CET1 1 ratio Total Capital ratio 14.2% 14.8% 15.9% 14.3% 14.2% 12.2% 13.0% 11.8% 10.6% 7.0% 2012 2013 2014 2015 SREP 2012 2013 2014 2015 SREP requirements requirements as of 31 Dec. as of 31 Dec. 2015 (1) 2015 (1) (1) Minimum capital requirements specified
Slide 15: Today's Agenda
Today’s Agenda 2015 financial results Dividend and capital position Net inflows, assets, recruitment 2016: more to come Banca Generali – FY 2015 Results and Business Outlook 15
Slide 16: 2015 Net inflows at record level
2015 Net inflows at record level Total Net Inflows Accelerating net inflows 687 € 9.8bn € 4.6bn 522 530 437 435 4,640 406 415 +30% 1,900 354 341 299 305 217 222 2,260 1,602 4,024 (€m) 2012 2013 2014 2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Organic net inflows Acquisitions 2015 2016 B
Slide 17: Well-balanced and pro-active mix
Well-balanced and pro-active mix Total Net Inflows mix Net Inflows mix by quarter 4,640 +37% 3,376 701 127 78 343 Managing customer 2,210 124 2,185 337 expectation while anticipating higher 113 930 749 market volatility 686 432 1,378 1,184 57 120 224 €m (265) 545 77 42 164 115 2014 2015 1Q 2Q 3Q 4Q
Slide 18: Assets: growing market share
Assets: growing market share Total assets Market Share Banca Generali’s market share on total + €15.4bn in 3 years Assoreti’s assets 41.6 12.1% 36.6 11.6% 29.1 26.2 31.8 27.5 (76%) (75%) 17.6 20.4 (69%) (72%) 10.4% 10.2% 7.9 7.8 9.1 9.8 (€ bn) (31%) (28%) (25%) (24%) 2012 2013 2014 2015 2012 2013 20
Slide 19: Favourable asset mix for grasping investment opportunities
Favourable asset mix for grasping investment opportunities Product Mix Asset Mix + €5bn 41.6 36.6 Equity; 10.9 Managed 22.0% Life 10.0 45% segregated 3.6 funds; 30.0% 3.8 +96% 4.3 2.2 Traditional Insurance Alternatives/ 12.9 others; 7.0% 11.5 31% Cash, 2.7 3.6 monetary Administered funds & (€ bn) 6.
Slide 20: Growing and well-diversified Lux-based assets
Growing and well-diversified Lux-based assets Lux-based SICAVs BG Selection: assets split by investment strategy +79% 11.8 4% 12% +34% 15% 2% 8.8 6.6 9.3 16% 7.3 51% 5.8 2.5 Equity EM Bond & liquidity ( €bn ) 0.8 1.5 Multi-asset funds Equity Global & Thematic Equity DM Real assets 2013 2014 2015 Dat
Slide 21: High-quality and growing network
High-quality and growing network No. of Financial Advisors (FAs) FAs split by portfolio 2006 1862 9% 1793 20% 11% +18% 1715 54% 1635 1645 40% 75% 1564 1499 1471 14531475 80% 21% 40% 20% 25% 5% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005 2015 No. Financial Advisors <4mln 4mln - 10 mln
Slide 22: Banca Generali, a top-performing network
Banca Generali, a top-performing network Sector Ranking by No. of FA Sector Ranking by Portfolio size Sector Ranking by Productivity (Assets/FA) (Net Inflows/FA) B.ca Fideuram + ISPB 5,760 Bca Fideuram +ISPB 32.0 Azimut 2,718 Mediolanum 4,387 BANCA GENERALI 24.3 BANCA GENERALI 2,705 Finecobank 2,622
Slide 23: Banca Generali, growing market share
Banca Generali, growing market share Sector Ranking by No. FA Sector Ranking by Assets Sector Ranking by Net Inflows (FY 2015, mkt share) (FY2015, mkt share) (FY2015, mkt share) B.ca Fideuram +ISPB 25.4% Bca Fideuram +ISPB 42.4% Bca Fideuram +ISPB 23.3% Bca Mediolanum 19.3% Bca Mediolanum 13.4% Fine
Slide 24: Recruiting expertise bears fruits
Recruiting expertise bears fruits No. of new recruits Banca Generali vs. Top 5 Assoreti Total Assets/No. FAs From retail banks 126 From other FA networks 102 24.3 81 20.0 +22% 92 52 53 75 50 31 35 31 27 34 (€m ) 21 18 2011 2012 2013 2014 2015 Average Top5 Banca Generali Assoreti players (ex- BG) Ban
Slide 25: 2015: an exceptional year acknowledged by the market…
2015: an exceptional year acknowledged by the market… Milano Finanza: “Atlante delle Banche Professional Wealth Management Osservatorio Finanziario Leader” Financial Times “Best home “No. 1 Bank in terms banking of profitability, solidity “Highly Recommended” service” and returns over the past two y
Slide 26: … More to come in 2016
… More to come in 2016 2016 target of Net inflows 2016 target of new recruits 3.0-3.5 80-90 3.0 82 (€ bn ) Total Net inflows Total Net inflows in Recruiting target 2016 Avg. 5Y recruiting managed products Banca Generali – FY 2015 Results and Business Outlook 26
Slide 27: Today's Agenda
Today’s Agenda 2015 financial results Dividend and capital position Net inflows, assets, recruitment 2016: more to come Banca Generali – FY 2015 Results and Business Outlook 27
Slide 28: 2016 business guidelines
2016 business guidelines OUR GOAL Private banking service… …with an high-standard C digital support BG vs. BUSINESS LANDSCAPE ULTRA-LOW YIELDS, DIGITAL REVOLUTION, VOLATILE FINANCIAL MARKETS FASTER TIME TO MARKET DIGITAL FA’S TOOLKIT ONGOING PRODUCT LAUNCH DIGITAL OPERATIONS Banca Generali – FY 2015
Slide 29: Ongoing product innovation
Ongoing product innovation FIRSTFIRST HALF 2016 HALF 2016PRODUCTS PIPELINE PRODUCT PIPELINE MULTIBRAND CERTIFICATES PLATFORM New subfunds STILE LIBERO PRIVATE INSURANCE I° Rilascio PRIVATE INSURANCE NEW PRODUCTS NEW PORTFOLIO MANAGEMENT • Enhancing portfolio BG Real estate management efficiency and
Slide 30: App framework for FA
App framework for FA DIGITAL FA’S TOOLKIT Risk Analysis Financial BG Personal Store & Advisory Products Market/ Tools News • Investment analysis - Tools allowing portfolio and risk analysis, exploring investment options, checking market trend and Payout Sales Management Monitoring • Supporting tools
Slide 31: APP framework for customers
APP framework for customers DIGITAL OPERATIONS BG STORE • DIGITAL COLLABORATION – APP allowing to check portfolio position, receiving investment proposals, confirming investment operations • FA-CENTRIC - Advisors proving central for any investment decision, so their details are always front-line all
Slide 32: Full commitment to digital presence
Full commitment to digital presence Mobile Banking & Mobile payment Portfolio monitoring Overview of accounts, transaction details Information on investment portfolio Contactless Debit cards Securities trading Contactless Credit Card E-commerce Debit Cards E-wallet MasterPass (with Mastercard) Send
Slide 33: A distinctive business model
Closing remarks A distinctive business model Able to achieve Able to attract top Professionals, SUSTAINABLE RESULTS PEOPLE OF VALUE A clear mission: UNIQUE BY BUSINESS MODEL, PRIVATE BANKING SERVICE SOLIDITY, QUALITY, VALUE with an HIGH-STANDING PROPOSITION, INNOVATION DIGITAL SUPPORT Banca Generali
Slide 34: 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