Banca Generali S.p.a. · MIL:BGN
Banca Generali — H1 2015 Earnings Presentation
30 slides from Banca Generali's earnings presentation, Jul 28, 2015
Slide 1: 1H 2015 Results and Business Update
1H 2015 Results and Business Update Milan, 28 July 2015
Slide 2: Today's Agenda
Today’s Agenda 1H 2015 Results Net inflows, AUM and Recruiting Business update Closing Remarks Banca Generali 1H 2015 Results and Business Update 2
Slide 3: Outstanding net profit growth: +58%
Outstanding net profit growth: +58% Strong asset expansion Reported Net Profit 39.8 32.3 +58% 140.1 +23% (€ bn) 1H14 1H15 88.4 Strong organic net inflows 2,236 1,667 (€ m) +34% (€ m) 1H14 1H15 1H14 1H15 Strong business trend, robust operating performance, solid capital position • Net profit growth d
Slide 4: Growing customers' assets: +23%
Growing customers’ assets: +23% Trend in total Customers’ Assets 39.8 32.3 27.4 +7.5bn 24.6 € bn 1H 12 1H 13 1H 14 1H 15 % of Managed 69% 72% 76% 74% Products Better asset mix • Total assets at €39.8bn (+23% YoY, +9% YTD on a reported basis) • Managed products at 76% of total assets (+2 pts YoY, +7
Slide 5: Growing net new money: +34%
Growing net new money: +34% Net Inflows split by source 2015 Net Inflows trend 3,000-3,500 43% (€m) 2,236 57% 1,667 1 1,412 1,044 organic growth 579 +34% recruiting last 12M Net Inflows split by customer 1H11 1H12 1H13 1H14 1H15 2015 YE target (1) - net of €648 million related to the jumbo recruitme
Slide 6: 1H 2015 results: key takeaways
1H 2015 results: key takeaways * (€ m) 1H14 1H15 % Chg Total* Banking income up by 29% driven by: Net Interest Income 55.3 35.9 -35.1% • Strong management fees (€224m, +33%) Gross fees 222.8 363.1 63.0% reflecting the sharp growth in managed assets Fee expenses -94.5 -129.1 36.6% • Positive contribu
Slide 7: Double digit revenue growth: +29%
Double digit revenue growth: +29% Total revenues split 296.2 263.8 229.3 202.1 99.3 +29% 55.3 35.9 45.8 26.3 20.7 -94.5 -129.1 net interest recurring fees perf. fees fee expenses trading & Total margin dividend Revenues (€ m) 1H14 (lhs) – 1H15 (rhs) • Positive contribution from performance fees refl
Slide 8: Booming management fees: +35%
Booming management fees: +35% Trend in management fees 116.1 107.6 ≈100% 97.4 +7.9% 93.9 86.2 81.8 78.9 +35% (€ m) 75.5 68.8 72.8 65.8 58.2 61.2 61.5 62.8 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Split of 1H15 recurring fees Sharp acceleration of management fees • Q
Slide 9: NII ex-LTRO in line with guidance
NII ex-LTRO in line with guidance Net Interest Income Solid ‘core’ NII trend even 55.3 with record low interest rates 28.5 35.9 • NII representing 12% of total revenues (vs. 24% in 1H14) reflecting primarily the expiry of LTRO 21.3 9.5 • Solid ‘core’ NII supported by: 17.3 11.5 1. Growing contributi
Slide 10: Operating costs well under control: +4%
Operating costs well under control: +4% Operating expenses Cost discipline bears fruits • Limited increase, well below the increase in +4.4% 81.9 revenues (+29%) 78.4 • G&A costs incorporate further IT investments to develop the digital platform 37.4 +4% 38.9 • Tight cost management to be maintained
Slide 11: Steady growth in recurring profitability
Steady growth in recurring profitability Fee Margin 1.87 Solid trend in recurring 1.46 1.50 1.43 0.51 * profitability 0.16 0.18 0.20 0.12 0.10 0.10 • Recurring fee margin at 136 bps (+4 0.11 0.11 0.11 0.11 0.11 bps YTD entirely at management fee level) Recurring • Contribution from performance 1.07
Slide 12: Solid capital position confirmed
Solid capital position confirmed Excess Capital CET1/Tier1 Ratio Total Capital Ratio (phased-in ) 1,2 (phased-in) 1,2 177.4 157.9 14.2% 14.8% 12.9% 14.6% 144.3 14.2% 12.2% 2013 2014 1H15 2013 2014 1H15 2013 2014 1H15 (€ m) Excess capital at €177.4m • Capital ratio on a B3 fully-loaded basis3: CET1/T
Slide 13: Today's Agenda
Today’s Agenda 1H 2015 Results Net Inflows, AUM and Recruiting Business Update Closing Remarks Banca Generali 1H 2015 Results and Business Update 13
Slide 14: Net inflows: product trend (1/4)
Net inflows: product trend (1/4) Net Inflows mix Net inflows focussed on 2,236 managed products 461 1,412 1,667 • BG Stile Libero (the new insurance wrapper of managed 127 products) generated 64% of 1,044 total net inflows 696 • Mutual funds and portfolio 64 1,098 1,435 management more than tripled
Slide 15: Net inflows: product trend (2/4)
Net inflows: product trend (2/4) BG Stile Libero: trend in assets BG Stile Libero, a catalyst of net inflows that boosts margins 3,765 • BG Stile Libero is a tailor-made ‘wrapper’ of €m 2,163 managed products • BG Stile Libero has established itself as the most efficient investment planning tool, in
Slide 16: Net inflows: product trend (3/4)
Net inflows: product trend (3/4) Net inflows in traditional life Total segregated account: yearly policies investment return 1,378 1,266 4.5% 4.5% 4.6% 4.6% 1,115 4.2% 4.0% 4.2% 3.9%-3.8% 3.8%-3.7% 134 €m 2009 2010 2011 2012 2013 2014 2015E 2016E 2012 2013 2014 1H15 2009-14 yearly average Slowdown i
Slide 17: Net inflows: product trend (4/4)
Net inflows: product trend (4/4) Net Inflows: Banca Generali vs. sector trend 52% 48% • Actively managing fixed-income 35% exposure in a ultra-low rate 28% environment 15% • Bulk of net inflows focused on total 9% 9% return strategies, as already in previous 3% 1% 0% years Equity Balanced Bond Other
Slide 18: Total asset split by product line
Total asset split by product line Breakdown of total Assets 39.8 Well-balanced product mix +23% 32.3 11.1 • BG Stile Libero and other unit- linked assets have tripled in the 9.2 3.7 last 12 months and now account for €4.5bn (11% of total assets) 3.5 +221% 4.5 • Traditional life policies (bond 1.4 pr
Slide 19: Truly open architecture
Truly open architecture Total funds/SICAVs (1H15) Trend in % of third-party funds 10% 90% 86% 88% 82% 78% 90% 2011 2012 2013 2014 1H15 In-house Third-party/mandates Current offer of third-party asset managers * Banca Generali 1H 2015 Results and Business Update 19
Slide 20: Focus on Lux-based SICAVs
Focus on Lux-based SICAVs Total Assets Asset split by investment strategy 3% 11.2 12% 13% +70% 16% 15% +27% 8.8 41% 6.6 9.1 Data as of June 2015 7.3 Equity EM Bond & liquidity Multi-asset funds Equity Global & Thematic 5.8 Equity DM Real assets 1.5 2.1 ( €bn ) 0.8 In-house vs. third-party 2013 2014
Slide 21: Recruiting activity delivers above expectations
Recruiting activity delivers above expectations No. of new recruits Results of the recruiting activity 90-100 of the last 12 months 70 46 58 - Average Portfolio per new recruit - 34 22.4 (€m ) 2012 2013 2014 2015 2015 +44% YTD YTD YTD YTD new target 15.6 Recruiting source Other FA networks Sector av
Slide 22: Banca Generali FA's profile significantly above sector average
Banca Generali FA’s profile significantly above sector average Sector Ranking by Sector Ranking by Productivity 1H2015 Portfolio Size (Net Inflows/Financial Advisor) (Assets/Financial Advisor) Banking & managed products Managed products 23.8 1.331 1.209 +53% +92% +93% 15.6 694 628 (€ m) Sector Avera
Slide 23: Today's Agenda
Today’s Agenda 1H 2015 Results Net Inflows, AUM and Recruiting Business Update Closing Remarks Banca Generali 1H 2015 Results and Business Update 23
Slide 24: Ready for the new trend: Digitalisation
Ready for the new trend Digitalisation Investment Advisory Banca Generali is ready for the future Banca Generali 1H 2015 Results and Business Update 24
Slide 25: Digital offer for customers in line with best peers
Digital offer for customers in line with best peers Full range of digital services available for customers Paying Bills (Income tax, car tax, fines, Account Services E-payment MAV/RAV/POSTAL (pre-printed Bank Transfer payment slip) Home Banking Cheques Contactless Debit cards Budgeting and Advice Al
Slide 26: Digital tools for supporting FA's activity
Digital tools for supporting FA’s activity New tools for FA to stay ahead of competions • Personal branding Personal Web Page • Interactive communication • APP dedicated to the recruiting Recruiting APP activity • Market and portfolio analysis tools Investment Advisory • Products in APP version • Pr
Slide 27: Today's Agenda
1H 2015 Results Net Inflows, AUM and Recruiting Business update Closing Remarks Banca Generali 1H 2015 Results and Business Update 27
Slide 28: Closing remarks
Closing remarks Results sustainability High- standing Digitalisation partnerships 360° Wealth Advisory Top-rated network We aim to be the first choice for: Clients, Financial Advisors and Investors Banca Generali 1H 2015 Results and Business Update 28
Slide 29: 2015 upcoming corporate events
2015 upcoming corporate events OCTOBER Su Mo Tu We Th Fr Sa Approval of 9M 2015 results Investor Relations Contacts 1 2 3 Investor Conference call 4 5 6 7 8 9 10 Giuliana Pagliari 11 12 13 14 15 16 17 Investor Relations Officer 18 19 20 21 22 23 24 Phone +39 02 6076 5548 Mobile +39 331 65 30 620 25
Slide 30: 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