Banca Generali S.p.a. · MIL:BGN
Banca Generali — Q1 2015 Earnings Presentation
28 slides from Banca Generali's earnings presentation, May 4, 2015
Slide 1: 1Q 2015 Results and Business Outlook
1Q 2015 Results and Business Outlook Milan, 4 May 2015
Slide 2: Today's Agenda
Today’s Agenda 1Q 2015 Results Net inflows and recruiting Business Update & Closing Remarks Banca Generali 1Q 2015 Results and Business Outlook 2
Slide 3: The best quarter ever
The best quarter ever Strong asset expansion 39.5 30.3 Reported Net Profit +30% (€ bn) 93.1 1Q14 1Q15 +140% Booming revenues 180.5 104.6 38.9 (€ m) +73% 1Q14 1Q15 (€ m) Cost discipline 1Q14 1Q15 Operating costs 39.3 41.5 +5.5% Strong business growth coupled (€ m) with favorable financial markets 1Q1
Slide 4: 1Q 2015 results: key takeaways
1Q 2015 results: key takeaways * (€ m) 3M14 3M15 % Chg Total* Banking income up by 73% driven by: • Sharp increase in recurring fees (€127.9 m, +34%), Net Interest Income 28.7 18.8 -34.4% driven by higher assets (€39.5bn, +30%) Gross fees 103.0 199.9 94.0% • Strong performance delivery (+8.6% on pur
Slide 5: Strong asset expansion (1/3)
Strong asset expansion (1/3) Growing exposure to managed Total Assets 39.5 assets • Strong growth in assets in the last 30.3 three years, (€39.5bn, +61%) driven 27.0 by managed products (€30bn +76%) 24.6 • Managed assets now representing 30.0 76% of total assets (+7 pts in 3 years) (76%) 22.1 • Size
Slide 6: Strong asset expansion (2/3)
Strong asset expansion (2/3) Total Assets split by key product lines Well-balanced product mix 39.5 +30% • Sustained increase in funds/SICAVs driven both by net inflows and 30.3 11.1 ( 28%) Funds/SICAVs positive fund performance Portfolio Management • BG Stile Libero, new flagship 8.7 ( 29%) 4.1( 10
Slide 7: Strong asset expansion (3/3)
Strong asset expansion (3/3) In-house SICAVs In-house SICAVs: Asset split 10.5 3% 1% +59% +19% 8.8 12% 13% 16% 14% 6.6 8.6 41% 7.3 Data as of March 2015 5.8 Equity EM Bond Multi-asset funds Equity Global & Thematic 1.9 Equity DM Real assets ( €bn ) 0.8 1.5 Liquidity 2013 2014 1Q15 70% of bond funds
Slide 8: Booming revenues (1/2)
Booming revenues (1/2) Revenue breakdown 180.5 127.9 95.4 104.6 72.0 +34.0% +73% 28.7 18.8 18.3 24.6 7.6 -45.4 -62.9 NII Recurring fees Performance Fee expenses Trading & Total fees dividend Revenues (€ m) 1Q14 (left column) – 1Q15 (right column) More revenues and more driven by managed assets • Con
Slide 9: Booming revenues (2/2)
Booming revenues (2/2) Total recurring fees Sharp acceleration in recurring fees in 1Q15 127.9 95.4 10.5 9.8 • Strong contribution from management fees 5.6 (€107.6m, +32% YoY, +10% QoQ), representing 84% 8.0 of total 107.6 81.8 • Significant increase in all recurring fees (€ m) (management, banking
Slide 10: NII trend in line with guidance
NII trend in line with guidance Net Interest Income Banking assets losing appeal as interest rates reach new lows 28.7 • Shrinking LTRO and Financial assets were partly counterbalanced by higher Lombard loans • Total banking book at €3.0m, with 2.9 yrs maturity and 1.8 yrs duration 15.8 18.8 • Overa
Slide 11: Operating leverage in place
Operating leverage in place Operating expenses +5.5% 41.5 Proven cost discipline 39.3 • New hiring to oversee the enlarged client base and distribution network as well as higher provisions for incentive schemes to existing employees drove a slight increase in staff costs 19.6 18.1 • Platform scalabi
Slide 12: Steady growth in asset profitability
Steady growth in asset profitability Fee margin Recurring profitability proving solid and 2.11 sustainable 1.46 1.50 • Management fee margin increased 1.43 0.76 by 2 bps YTD to 1.13%, while front and banking fees proved stable 0.16 0.18 0.20 0.11 0.12 0.10 • Contribution from performance fee 0.11 0.
Slide 13: Capital strength further increased
Capital strength further increased Excess Capital CET1/Tier1 Ratio Total Capital Ratio (phased-in ) 1,2 (phased-in) 1,2 176.1 157.9 14.2% 14.8% 14.7% 144.3 12.9% 14.2% 12.2% 2013 2014 1Q15 2013 2014 1Q15 2013 2014 1Q15 (€ m) Excess capital to €176m • Capital ratio at even more solid levels on a B3 f
Slide 14: Today's Agenda
Today’s Agenda 1Q 2015 Results Net Inflows and Recruiting Business update & Closing Remarks Banca Generali 1Q 2015 Results and Business Outlook 14
Slide 15: Strong growth on top of record results
Strong growth on top of record results Net New Money 2015 YTD Net inflows 5,924 1,447 1,900 1,020 861 686 +219% +42% 4,024 428 2,260 1,260 1,602 €m 2011 2012 2013 2014 Jan-Apr 2011 Jan-Apr 2012 Jan-Apr 2013 Jan-Apr 2014 Jan-Apr 2015 €m • Excellent results based on the strong contribution from the ex
Slide 16: Excellent net inflows mix
Excellent net inflows mix Net Inflows trend 1,447 Product mix fully driven by managed products 399 1,020 • BG Stile Libero (the new insurance 861 wrapper of managed products) 86 generated 65% of total net inflows 686 • Mutual funds and portfolio 341 management more than tripled 23 (€399m, +364% yoy)
Slide 17: Recruiting conditions remain favourable
Recruiting conditions remain favourable No. of new recruits by No. of new recruits recruiting sources (%) Est. Assets/recruit 10.0 11.0 35 90.0 30 89.0 16.5 16.8 Jan-Apr 2014 Jan-Apr 2015 Jan-Apr 2014 Jan-Apr 2015 Jan-Apr 2014 Jan-Apr 2015 Private and retail banks FA networks Sustained, yet selectiv
Slide 18: Steadily growing FA profile
Steadily growing FA profile No. of Financial Advisors (Fas) FA’s avg portfolio size 23.8 955 IN (1,303) OUT +201% 7.9 2,006 1,658 (€ m) 2005 1Q15 2005 1Q15 FAs by avg. portfolio size 2,006 1,658 9% 20% 11% 37% 42% 50% 54% 40% 73% 23% 22% 80% 20% 19% 40% 33% 30% 24% 22% 7% 6% 6% 5% 27% 2005 2012 2013
Slide 19: Network quality key to gaining market shares (1/2)
Network quality key to gaining market shares (1/2) Sector Ranking by Productivity 1Q 2015 (Net Inflows/Financial Advisor) (€ ‘000) 689 668 563 484 404 344 334 280 238 219 BANCA Azimut Fineco Bca Pop Allianz Bank Finanza & Credem Mediolanum Bca Fideuram SECTOR GENERALI Vicenza Futuro AVERAGE Source:
Slide 20: Network quality key to gaining market shares (2/2)
Network quality key to gaining market shares (2/2) Sector Ranking by Portfolio Size (€ m) 22.2 (Assets/Financial Advisor) 18.3 17.9 16.4 14.5 14.9 12.0 9.9 8.9 8.4 BANCA Bca Fideuram Azimut Finecobank Allianz Bank Mediolanum Bca MPS UBI Banca Credem AVERAGE GENERALI Source: Assoreti, figures at 31 D
Slide 21: Today's Agenda
Today’s Agenda 1Q 2015 Results Net Inflows and Recruiting Business Update & Closing Remarks Banca Generali 1Q 2015 Results and Business Outlook 21
Slide 22: BG Stile Libero: wider underlying fund offer
BG Stile Libero: wider underlying fund offer 6 New Asset Managers Underlying assets split Life segregated accounts 14% 86% Total underlying fund offer: 46 asset manager, 818 subfunds Funds/SICAVs • Widening current offer from April 2015 • 93 new sub-funds o/w 42 from 6 new asset managers and 51 from
Slide 23: New investment themes aligned with market scenario
New investment themes aligned with market scenario Equity L/S Strategies • NEW ALTERNATIVE family Multi-Assets L/S Strategies Alternative • In a “low yield • Volatility target: Low to scenario” affecting Mid level rates and bond market … Currencies L/S Strategies • … Banca Generali challenges it thr
Slide 24: Digital Evolution in BG
Digital Evolution in BG Traditional Approach Innovative Approach Online • Mobile site and App for tablets • Free Home Banking for all and smartphones current accounts • High security standards (Secure • All banking operations online Call, SMS Security) • Online trading (securities and • Online commu
Slide 25: Payment evolution in BG
Payment evolution in BG Traditional Payments Digital Payments • All traditional payment instruments • Proximity payments: • contactless credit cards (VISA, Mastercard) • contactless prepaid cards (VISA, Mastercard) • All payments online (e.g. bank transfers, tax payments, fine payments, mobile phone
Slide 26: Closing remarks
Closing remarks Top-rated network Return to Customised shareholders advisory Long-term Sustainability customer of results relationship We aim to be the first choice for: Clients, Financial Advisors and Investors Banca Generali 1Q 2015 Results and Business Outlook 26
Slide 27: 2015 upcoming corporate events
2015 upcoming corporate events JULY Su Mo Tu We Th Fr Sa Investor Relations Contacts 1 2 3 4 5 6 7 8 9 10 11 Approval of 1H 2015 results Giuliana Pagliari Investor Relations Officer 12 13 14 15 16 17 18 Investor Conference call Phone +39 02 6076 5548 19 20 21 22 23 24 25 Mobile +39 331 65 30 620 26
Slide 28: 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