Finecobank Spa · MIL:FBK
Finecobank Spa — Q3 2015 Earnings Presentation
27 slides from Finecobank Spa's earnings presentation, Nov 10, 2015
Slide 1: Fineco: 3Q15 Results
Fineco: 3Q15 Results Alessandro Foti, CEO and General Manager Milan – November 10th 2015
Slide 2: Disclaimer
Disclaimer This Presentation may contain written and oral “forward-looking statements”, which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, p
Slide 3: Executive Summary
Executive Summary 3Q15 Net profit at 55.1mln (+55.7% y/y, +20.0% q/q), the best result ever achieved in Fineco’s history 9M15 Net profit at 148.8 mln (+36.2% y/y) with an annualized RoE at 45% 9M15 Revenues grow double digit (+22.2% y/y) supported by an effective business diversification even in a p
Slide 4: Agenda: Fineco Results
Agenda Fineco Results Focus on products 4
Slide 5: Results
Results Record high 9M15 net profit with 149 mln (+36.2% y/y). Double digit growth in revenues leading to a cost/income reduction Revenues, mln +22.2% Net Profit, mln +30.0% 407.4 +6.6% 333.3 107.5 131.0 139.7 +36.2% +55.7% 148.8 +20.0% 3Q14 2Q15 3Q15 9M14 9M15 109.3 55.1 Operating Costs, mln 35.4 4
Slide 6: Revenues by P&L items
Revenues by P&L items Business diversification leads to a solid revenue contribution from all P&L lines. Booming trading income (+112.7% y/y) Net interest, mln Fees and Commissions, mln +13.2% +5.6% +33.2% +30.0% +5.5% 172.4 182.0 -3.0% 185.7 142.9 56.4 60.5 63.9 45.8 62.9 61.0 3Q14 2Q15 3Q15 9M14 9
Slide 7: Net interest
Net interest Net interest income well sustained by continuous growth in sight deposits (+20.7% y/y) coupled with a pronounced reduction in cost of deposits Sight Deposits (mln) and net margins (bps) Securities lending (mln) and net margins (bps) +20.7% +4.2% +21.2% -1.7% 12,729 13,522 14,084 11,319
Slide 8: Net interest: focus on UniCredit bonds portfolio
Net interest: focus on UniCredit bonds portfolio Sustainable NII across all UC bonds maturities: just 5.48% CAGR in sight deposits growth needed by 2022 (historical growth realized: +13.4%) Run-off UniCredit bonds portfolio (mln) and spread (bps) 1,725 1,725 1,805 1,575 1,575 1,480 450 2016 2017 201
Slide 9: Costs
Costs 9M15 development costs up to sustain business growth. Reduction in running costs thanks to operating leverage Staff expenses, mln and FTE, # Stock granting post IPO(1) (July 2nd 2014) 953 992 1013 Staff expenses, related to top managers and key employees +12.6% Other administrative expenses, r
Slide 10: Capital Ratios
Capital Ratios Strong CET1 ratio transitional above 20% with a confirmed low risk balance sheet RWA, mln CET1 Ratio transitional, % Credit Market Operational +0.7p.p. -0.4p.p. +4.2% 19.76% 19.08% 19.38% 20.79% 20.43% -1.2% 1,850 1,836 1,826 1,804 1,731 Sept.14 Dec.14 Mar.15 Jun.15 Sept.15 1,052 1,03
Slide 11: TFA
TFA TFA continue to grow thanks to a healthy expansion in net sales despite the market turmoil affecting the markets over the summer period TFA evolution (Dec.10-Sep.15), bn Cumulated performance, bn -0.5 52.5 Net Sales +15.3 bn 49.3 3.7 Market Effect +2 bn 1.7 43.6 4.0 1.3 39.8 2.5 2.5 35.2 2.8 -3.
Slide 12: TFA and Net sales - breakdown
TFA and Net sales - breakdown Relentless growth in net sales, confirming the 360 degrees usage of Fineco services by clients during uncertain and volatile market periods Breakdown of total net sales, bn Breakdown of total TFA, bn +33.4% Guided products as % of AuM y/y +34.1% 4.1 +9.0% -2.4% 3.7 53.7
Slide 13: Personal Financial Advisors (PFA) network – Total Net sales
Personal Financial Advisors (PFA) network – Total Net sales Over 90% of total net sales generated by PFA network. Healthy expansion with ca.89% organic growth through a network of 2,610 PFAs PFA Network – total net sales, bn Net sales, bn - Organic/New Recruit of the year AuM AuC Deposits Net Sales
Slide 14: Agenda: Focus on products
Agenda Fineco Results Focus on products 14
Slide 15: Revenues by Product Area
Revenues by Product Area Effective business diversification leads to record high revenues well distributed across all product area Banking, mln 44% +10.3% +17.0% +5.9% 160.6 177.1 53.2 58.8 62.2 3Q14 2Q15 3Q15 9M14 9M15 Brokerage, mln 28% Investing, mln 28% Core revenues (NI excluded) +34.8% +42.0%
Slide 16: Banking
Banking Outstanding customers satisfaction along with smart and easy-to-use platform support a strong banking revenues generation Revenues, mln Direct deposits eop (mln) Net interest Net trading Sight Deposits Term Deposits Net fees Other +9.2% +10.3% 15,016 14,828 13,584 13,584 15,016 14,828 177.1
Slide 17: Brokerage
Brokerage Outstanding results confirming Fineco as best in class in Brokerage activity. Executed orders up to 21.3 mln with all-time best daily performance on August 24th Revenues, mln Volatility Index - Ftse Mib 30 Net interest Net fees Net trading 25 VltyCC Core revenues (NI excluded) 20 VltyCC +3
Slide 18: Investing
Investing Revenues up supported by a sound fee dynamic. AuM impacted by summer market turmoil but Guided products penetration remains strong Revenues, mln AuM eop (bn) +10.0% Net fees -5.1% +34.8% 26.1 26.2 24.8 22.6 23.6 115.6 85.7 Sep.14 Dec.14 Mar.15 Jun.15 Sep.15 +29.6% Guided products on total
Slide 19: Annex
Annex GES) 19 THE NEW BANK
Slide 20: P&L
P&L mln 1Q14 2Q14 3Q14 9M14 1Q15 2Q15 3Q15 9M15 Net interest income 58.3 57.6 56.4 172.4 57.6 60.5 63.9 182.0 Net commissions 47.7 49.3 45.8 142.9 61.7 62.9 61.0 185.7 Trading profit 7.1 5.8 6.5 19.4 17.1 11.0 13.2 41.3 Other expenses/income 0.0 0.0 -1.3 -1.3 0.4 -3.4 1.6 -1.5 Total revenues 113.1 1
Slide 21: Details on Net Interest Income
Details on Net Interest Income Volumes Volumes Volumes Volumes Volumes Volumes Volumes Volumes mln 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 9M14 9M15 & Margins & Margins & Margins & Margins & Margins & Margins & Margins & Margins Sight Deposits 51.8 10,950 52.1 11,319 51.7 11,668 51.6 12,729 52.2 13,522 54.5 1
Slide 22: UniCredit bonds underwritten
UniCredit bonds underwritten Before 2014 ISIN Currency Amount (€ m) Maturity Indexation Spread 1 IT0004307861 Amortizing Euro 150.0 30.09.2016 Euribor 1m 0.51% IT0004307861 Amortizing Euro 150.0 02.10.2017 Euribor 1m 0.51% IT0004307861 Amortizing Euro 150.0 02.01.2018 Euribor 1m 0.51% April 2014 2 I
Slide 23: Details on Net Commissions
Details on Net Commissions mln 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 9M14 9M15 Brokerage 21.0 18.7 15.2 24.1 19.8 19.5 54.8 63.4 o/w Equity 18.1 15.0 11.8 19.9 17.3 16.4 44.9 53.6 Bond 2.2 2.8 1.6 2.5 1.2 1.1 6.6 4.7 Derivatives 2.3 1.9 2.4 2.5 2.3 2.6 6.5 7.5 (1) Other commissions -1.7 -1.0 -0.7 -0.8 -1.0
Slide 24: Revenue breakdown by Product Area
Revenue breakdown by Product Area mln 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 9M14 9M15 Net interest income 52.1 52.1 51.3 52.8 54.8 58.0 155.5 165.6 Net commissions 0.6 1.3 1.1 1.5 2.8 3.2 3.0 7.5 Trading profit 0.8 0.7 0.8 1.9 1.3 1.1 2.3 4.2 Other -0.1 0.0 -0.1 -0.1 -0.1 -0.1 -0.2 -0.3 Total Banking 53.4 5
Slide 25: Breakdown TFA
Breakdown TFA mln Sept. 14 Dec. 14 March 15 June 15 Sept. 15 AUM 22,563 23,636 26,121 26,169 24,825 o/w Funds and Sicav 20,414 21,177 23,313 23,221 21,949 o/w Insurance 2,134 2,444 2,793 2,933 2,862 o/w GPM 15 15 15 15 14 AUC 12,034 11,952 13,219 12,613 12,868 o/w Equity 5,705 5,745 6,826 6,513 6,61
Slide 26: Balance Sheet
Balance Sheet mln Sept. 14 Dec. 14 March 15 June 15 Sept. 15 Due from Banks 13,613 13,892 14,070 14,583 13,966 Customer Loans 700 696 797 836 885 Financial Assets 1,722 1,699 2,270 2,244 2,241 Tangible and Intangible Assets 109 109 109 109 109 Derivatives 23 24 25 40 7 Other Assets 244 345 229 240 2
Slide 27: Main Financial Ratios
Main Financial Ratios Sept. 14 Dec. 14 March 15 June 15 Sept. 15 PFA TFA/ PFA (mln) 16.0 16.4 17.6 17.6 17.0 AuM / TFA 47% 48% 49% 49% 47% Revenues per TFA (bps) 96.8 97.1 106.1 103.8 106.7 Adjusted Cost / income Ratio 45.9% 45.8% 43.8% 44.6% 42.6% CET 1 Ratio 19.8% 19.1% 19.4% 20.8% 20.4% Adjusted