Banca Generali S.p.a. · MIL:BGN
Banca Generali — FY2013 Earnings Presentation
33 slides from Banca Generali's earnings presentation, Mar 10, 2014
Slide 1: 2013 Results and Business Update
2013 Results and Business Update 10 March 2014
Slide 2: Today's Agenda
Today’s Agenda FY 2013 results Net Inflows, AUM, recruiting Business Update Closing remaks Banca Generali – FY 2013 Results and Business Update 2
Slide 3: 2013 delivered the best results since the IPO
2013 delivered the best results since the IPO Net Profit 2013 net profit at record high + 92% • 2013 net profit at €141m (+9%), after accounting for a €7m one-off tax-charge introduced by the Italian 6.6 government at the end of November • Excluding the one-off charge, net profit at €147.9m, 141.3 u
Slide 4: Dividend pay-out ratio confirmed at top levels
Dividend pay-out ratio confirmed at top levels Dividend per Share (DPS) 0.90 0.95 1 Appealing dividend yield 0.55 0.55 0.45 • DPS is set at €0.95, with 0.18 an implied yield of 4%, 0.10 0.06 one of the best levels amongst Italian financial 2006 2007 2008 2009 2010 2011 2012 2013 stocks (1) Board of
Slide 5: Consolidated 2013 results: key highlights
Consolidated 2013 results: key highlights * * Net Interest Income up by (€ m) 12M12 12M13 % C hg 12M12 12M13 % C hg 9% supported by solid (reported) (reported) (excl. GIL) (excl. GIL) investment return, lower Net Interest Income 111.6 121.8 9.2% 111.5 121.8 9.2% funding costs, higher Fee income 384.
Slide 6: High quality contribution from all business lines
High quality contribution from all business lines Total Revenues Total Revenues ex-LTRO and ex-performance fees 367.2 284.1 +11% 240.7 331.1 225.3 121.8 +18% 111.5 (33%) (34%) 2011 2012 2013 (€ m) 226.4 (62%) 207.2 (62%) Positive delivery from all business lines • Total revenues increased by 11% dri
Slide 7: Solid contribution from NII
Solid contribution from NII Net interest income Double-digit increase in core NII • NII benefitted by a steady decrease in funding costs during the year coupled with 121.8 steady investment return (2.6%) +9% 111.5 • The overall banking book stands at €4.7bn, with a 2.8 maturity (1.55 duration) 84.4
Slide 8: Enhanced fees sustainability as 90% are recurring
Enhanced fees sustainability as 90% are recurring Breakdown of total gross fees Recurring fees vs. Performance fees 404.7 46 +14% 41 10 50 355.6 45.6 57 359 313 305 29.1 50.2 242 306 +48% 27.1 296.0 2009 2010 2011 2012 2013 +18% 251.3 (70%) Recurring fees up by +18% • Strong result driven by managem
Slide 9: Relentless growth in management fees
Relentless growth in management fees Quarterly management fees (€ m) 78.9 +35% 75.5 72.8 68.8 65.8 61.2 61.5 62.8 +20% 58.2 +4% 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Ongoing steady growth in management fees (+20% yoy, +35% in 2 years) • Strong increase in management fees driven by the increas
Slide 10: Slight increase in pay-out driven by record business trend
Slight increase in pay-out driven by record business trend Net Fees (excl. performance fees) Pay-out ratio (excl. performance fees) 50.8% 48.6% 49.7% 45.2% 180.7 +15% 157.0 2010 2011 2012 2013 ordinary pay-out extraordinary pay-out • Ordinary pay-out terms are stable over (€ m) time 2012 2013 • Extr
Slide 11: Growth projects embedded in cost discipline
Growth projects embedded in cost discipline Operating expenses Costs/Income at record low • Costs trend remains subdued compared with +4.9% growth in revenues, highlighting benefits from operating leverage (80% of costs are 148.6 fixed) 141.7 • 2013 figures incorporate significant costs for IT upgra
Slide 12: Operating margin on recurring business up to 48% (+7 pps)
Operating margin on recurring business up to 48% (+7 pps) Operating margin Operating margin ex performance fees and ex- LTRO 367.2 331.1 284.1 240.7 141.7 148.6 141.7 148.6 60% 48% 57% 41% 2012 2013 2012 2013 Total Revenues Total operating costs Net recurring fees Total operating costs Operating mar
Slide 13: Increasing contribution from recurring business
Increasing contribution from recurring business Asset profitability Management fee on total assets 1.09 1.87% 1.90% 1.08 1.07 0.20% 0.16% 0.14% 0.16% 1.05 1.03 1.02 1.01 1.01 1.0 1.51% 1.60% 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Recurring asset profitability at 1.6% 2012 2013 • Recurring prof
Slide 14: Strong capital ratios supporting the bank's growth strategy
Strong capital ratios supporting the bank’s growth strategy Excess Capital Tier 1 Capital Ratio Total Capital Ratio 14.8% 144.3 14.2% 12.8% 13.0% 11.8% 105.8 11.1% 89.1 2011 2012 2013 2011 2012 2013 2011 2012 2013 (€ m) Banca Generali – FY 2013 Results and Business Update 14
Slide 15: Today's Agenda
Today’s Agenda FY 2013 results Net Inflows, AUM, recruiting Business Update Closing remaks Banca Generali – FY 2013 Results and Business Update 15
Slide 16: A sound and well-balanced growth
A sound and well-balanced growth EXISTING NETWORK 2013 Jan-Feb 2014 Total Net Inflows Avg. No. FAs 1,464 1,478 New customers YTD 12,567 3,559 Net inflows €1.2bn €421m 2,260 1,602 RECRUITING Jan-Feb.14 2013 527 New recruits 81 18 2012 2013 Jan- Feb 2014 New customers 2,923 335 (€ m) Net i
Slide 17: Best year ever for net inflows in managed products
Best year ever for net inflows in managed products FUNDS/SICAVS/FOF/PM 1 Total Net Inflows in managed products 1,502 512 157 2012 2013 Jan- Feb 2014 2,768 LIFE INSURANCE 1,627 418 1,266 2012 2013 Jan- Feb 2014 1,115 261 (€ m) 2012 2013 Jan- Feb 2014 1Legenda: PM=portfolio management Banca Generali –
Slide 18: Total assets close to €30bn at end February
Total assets close to €30bn at end February Total Assets +28% 29.1 29.8 26.2 23.3 8.4 8.7 Funds/SICAVs 6.8 5.9 3.2 3.1 Portfolio 3.1 Management 2.8 8.5 9.7 9.9 Life Insurance 7.3 Current Accounts 1.8 2.1 2.0 2.2 Security Accounts 5.5 5.7 5.8 5.9 (€ bn) 2011 2012 2013 Prel. Estimates - February 2014
Slide 19: A strong year for recruitment
A strong year for recruitment (€ m) No. of recruits per year Assets/recruits 81 +23% +53% 15.2 13.9 14.4 14.2 17.4 51 46 52 53 18 2009 2010 2011 2012 2013 Jan-Feb 2009 2010 2011 2012 2013 2014 E 2014 • Sharp increase in the number of new recruits in 2013: 81 people (+53%), o/w 21 private bankers and
Slide 20: Banca Generali ranks No.1 by portfolio size
Banca Generali ranks No.1 by portfolio size Ranking by FA’s portfolio size (€ m) (Assets/FA) +50% 19.7 16.8 15.5 14.8 13.4 13.1 10.7 9.6 8.3 7.3 7.1 6.9 Source: Assoreti, figures at 31 December 2013 Banca Generali – FY 2013 Results and Business Update 20
Slide 21: A strong start into 2014
A strong start into 2014 Sector ranking by total net inflows 36.7% (January: €1.3bn) … Market share 19.0% 301 + February 467 17.8% 11.7% 7.8% 242 226 3.6% 3.3% 3.2% 2.2% 149 100 46 42 40 29 -68 (€ m) Sector ranking by net inflows in managed and insurance products (January: €0.6bn) … Market share 78.
Slide 22: Today's Agenda
Today’s Agenda FY 2013 results Net Inflows, AUM, recruiting Business Update Closing remaks Banca Generali – FY 2013 Results and Business Update 22
Slide 23: 2014 business guidelines
2014 business guidelines Launch of a new advisory platform Asset growth with focus on managed products A wider service offer supported by primary business partners Acquiring new customers An enhanced role for FAs through existing FA networks Exploiting recruiting opportunities (target 60-65
Slide 24: A new advisory model to address all clients' needs
A new advisory model to address all clients’ needs FROM … … TO Financial Assets Financial Assets Inheritance Property Inheritance Property ) Client Client Lombard lending Lombard lending Family Family office office • Unique service spectrum for the customers Enhanced role for FAs • Reinforcing high-
Slide 25: A broad range of new products
A broad range of new products Launch of 4 new ‘Real Assets’ sub-funds New investment strategy where at least 30% of assets is invested in real return asset classes (real estate, commodities, energy, infrastructure, inflation-linked) Tot. 47 sub-funds Launch of 6 new flexible BOND funds (credit
Slide 26: An investment tool with unique features
An investment tool with unique features A more tailor-made and flexible investment planning Investment solutions Insurance benefits Other services A range of optional services Insurance coverage as a Diversified offering within to supplement the function of the age of the a single vehicle: segregate
Slide 27: BG Stile Libero set to attract both existing and new customers
BG Stile Libero set to attract both existing and new customers Stile Libero allows a more tailor-made and flexible investment planning based on the risk profile of each customer New money Third-party funds Banking AUM Banca Generali – FY 2013 Results and Business Update 27
Slide 28: Digital Agenda: a priority for the Bank
Digital Agenda: a priority for the Bank DIGITAL SIGNATURE Launch of the digital signature Faster order processing Increase in FA’s productivity Enhanced customers’ security Easier customer access WEB PAGE - for each FA Customised contents for each FA’s web page Banca Generali – FY 2013 R
Slide 29: Voluntary disclosure
Voluntary disclosure BUSINESS POTENTIAL Italian government pursuing the aim of recovering taxes on Italian assets held offshore by September 2015 Offshore Wealth held by Italian households is estimated at €200bn, o/w €180bn in Switzerland Two conferences with primary tax and legal experts alre
Slide 30: Today's Agenda
Today’s Agenda Fy 2013 results Net inflows, AUM, recruiting Business Update Closing remarks Banca Generali – FY 2013 Results and Business Update 30
Slide 31: Closing remarks
Closing remarks Our targets Our tools • Ongoing favourable conditions for recruiting Seizing growth opportunities high profile and talented professionals • Evaluating M&A opportunities in Italy • Launch of the new advisory platform Further enhancing the quality of our FA network • Strong investments
Slide 32: 2014 Upcoming Corporate events
2014 Upcoming Corporate events APRIL Su Mo Tu We Th Fr Sa Investor Relations Contacts AGM to approve 2013 results 1 2 3 4 5 6 7 8 9 10 11 12 (1st call) Giuliana Pagliari 13 14 15 16 17 18 19 Investor Relations Officer 20 21 22 23 24 25 26 Phone +39 02 6076 5548 27 28 29 30 Mobile +39 331 65 30 620 E
Slide 33: 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