Slide 1: Fineco: 2Q14 Results
Fineco: 2Q14 Results Alessandro Foti, CEO Milan, 1 August 2014
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,
Slide 3: Executive Summary
Executive Summary 2Q14 Net profit at 37mln (+26% y/y); 40mln (+37.1% y/y, +7.4% q/q) excluding IPO-related costs 1H14 Net profit at 74mln (+31% y/y); 77mln (+37.6% y/y) excluding IPO-related costs. Adjusted RoE at 38% Strong and sustainable improvement compared to 2Q13: Revenues up 19% thank
Slide 4: Agenda
Agenda Fineco Results Focus on products Future strategy 4
Slide 5: Results: Solid Net Profit growth with high quality earnings
Results Solid Net Profit growth with high quality earnings and strong operating excellence Revenues, mln non recurring items(2) +16.1% +19.0% -0.3% 224 193 Net Profit, mln 99 94 93 112 112 86 non recurring items(1) -2 +37.6% 91 +37.1% +7.4% 77 3.5 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 1H13 1H14 56 37 40 27
Slide 6: Revenues by P&L Items
Revenues by P&L Items Sound revenue growth mainly driven by Net Interest and Fees and Commission Net interest, mln Fees and Commissions, mln +20.9% +18.6% +21.2% +21.3% 115.9 97.0 -1.2% 95.9 +3.3% 81.8 58.3 57.6 45.4 47.7 49.3 48.4 47.5 41.3 43.1 41.2 40.6 39.6 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 1H13 1H1
Slide 7: Net interest
Net interest High quality of our banking platform continues to draw transactional liquidity. Upside coming from the investment policy already reflected in the first quarter Sight Deposits (mln) and net margins (bps) Securities lending (mln) and net margins (bps) +16.5% -10.7% +3.4% -8.7% 1,815 10,95
Slide 8: Costs
Costs Cost discipline and operating excellence providing for increasing efficiency. C/I down at 44% in 2Q14 net of IPO-related costs Staff Expenses, mln FTE, # +2.7% +9 +27 +2.6% 31.0 31.8 934 935 944 944 +1.9% 917 921 917 905 15.3 15.7 15.9 16.5 15.8 16.1 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 1H13 1H14 1Q1
Slide 9: Capital Ratios
Capital Ratios Strong capital position with CET1 transitional at 19.5% RWA, mln CET1 Ratio, % +9.7 +3.4 Credit Operational Market Floor 19.50% 16.07% 12.25% -33.6% 9.31% 9.76% 10.14% 2,698 2,615 2,581 2,517 -11.7% 902 821 Mar. 13 June 13 Sept. 13 Dec. 13 Mar. 14 June 14 725 805 1,968 51 15 17 31 1,7
Slide 10: TFA: Strong TFA growth with healthy net sales expansion
TFA Strong TFA growth with healthy net sales expansion TFA evolution (Dec.10-June14), bn Cumulated performance, bn 47.2 1.6 Net Sales +9.6 bn 43.6 2.0 Market Effect +2.4 bn 1.3 39.8 2.5 2.5 35.2 2.8 -3.0 35.0 2.3 TFA Net sales Market TFA Net sales Market TFA Net sales Market TFA Net sales Market TFA
Slide 11: TFA: Rebalancing towards higher value products
TFA Rebalancing towards higher value products Breakdown of TFA net sales, bn Breakdown of total TFA, % 2.8 2.3 2.5 2.0 40% 42% 45% 46% 1.6 11% 23% 2.2 1.5 1.4 28% 30% 2.4 30% 27% 1.5 26% 25% 1.4 1.2 0.8 0.4 0.2 -0.1 -0.2 30% 30% 29% 29% -0.3 -0.6 -0.7 Dec. 11 Dec. 12 Dec. 13 June 13 June 14 Dec. 11
Slide 12: Personal Financial Advisers (PFA) network – TFA Net sales
Personal Financial Advisers (PFA) network – TFA Net sales PFA network confirmed its strength showing a sustainable growth of net sales. Positive trend of new recruitment confirmed as well PFA Network - TFA net sales, mln Net sales, mln - Organic/New Recruit of the year Net Sales (Organic) AuM AuC De
Slide 13: Agenda
Agenda Fineco Results Focus on products Future strategy 13
Slide 14: Revenues by Product Area
Revenues by Product Area Well diversified profitability thanks to our integrated business model Banking, mln 48% +51.9% +52.4% 107.0 +1.3% 70.4 53.2 53.8 35.1 35.3 36.9 39.6 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 1H13 1H14 Brokerage, mln 27% Investing, mln 25% -18.2% +14.8% -17.9% 73.1 +19.4% 55.5 59.8 +11.8
Slide 15: Banking
Banking Extremely strong performance y/y driven by good deposits growth, new investment policy and solid clients acquisition Revenues, mln Direct deposits eop (mln) Net interest Net trading Net fees Other +3.6% +11.8% +51.9% 13,731 13,731 107.0 13,251 12,482 12,518 12,325 12,286 12,286 +52.4% 70.4 1
Slide 16: Brokerage
Brokerage Core Revenues up y/y excluding NI (mainly security lending). Low volatility in the market in 2Q14. Fineco #1 online broker in Europe by executed orders Revenues, mln Margins (fees on customer orders(1)), euro Net interest Net trading +0.5 Net fees Other -0.3 +0.4 5.6 5.6 6.0 6.0 5.7 5.8 +8
Slide 17: Investing
Investing Strong revenue growth supported by further increase in AuM both q/q and y/y. Increased share of wallet of more profitable Guided products Revenues, mln AuM eop (bn) +6.3% +19.4% Net fees Other +14.8% 21.6 21.6 19.5 20.3 18.0 18.1 18.8 18.1 55.5 48.3 +19.4% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 1H1
Slide 18: Agenda
Agenda Fineco Results Focus on products Future strategy 18
Slide 19: A Five Pillar Strategy
A Five Pillar Strategy In continuity with our track record, minimising execution risk 1 Further develop, expand and train our PFA NETWORK 2 Continue to REPOSITION TFA towards higher value added products and services 3 Widen our brokerage PRODUCT OFFER and strengthen the OPERATING PLATFORMS 4 Continu
Slide 20: Annex
Annex THE NEW BANK 20
Slide 21: P&L
P&L mln 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 1H13 1H14 Net interest income 48.4 47.5 41.3 43.1 58.3 57.6 95.9 115.9 Net commissions 41.2 40.6 39.6 45.4 47.7 49.3 81.8 97.0 Trading profit 9.0 6.8 6.1 6.4 7.1 5.8 15.8 12.9 Other 0.6 -0.9 -0.6 -4.0 -0.8 -0.8 -0.4 -1.6 Total revenues 99.1 94.1 86.3 90.9 112.3
Slide 22: Details on Net Interest Income
Details on Net Interest Income Volumes Volumes Volumes Volumes Volumes Volumes mln 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 & Margins & Margins & Margins & Margins & Margins & Margins Sight Deposits 34.0 9,634 34.3 9,717 34.2 10,208 36.9 10,527 51.8 10,950 52.1 11,319 Net Margin 1.43% 1.42% 1.33% 1.39% 1.92% 1
Slide 23: Details on Net Commissions
Details on Net Commissions mln 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Brokerage 17.0 15.5 13.5 16.6 21.0 18.7 o/w Equity 15.0 12.7 11.0 13.4 18.1 15.0 Bond 2.3 2.6 1.3 2.4 2.2 2.8 Derivatives 2.3 2.3 2.0 2.0 2.3 1.9 Other commissions* -2.5 -2.1 -0.8 -1.2 -1.7 -1.0 Investing 24.0 24.7 25.2 27.8 26.4 29.5 o/w
Slide 24: Revenue breakdown by Product Area
Revenue breakdown by Product Area Var. Var. Var. mln 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 1H13 1H14 2Q14/2Q13 2Q14/1Q14 1H14/1H13 Net interest income 34.6 34.3 35.6 37.8 52.1 52.1 68.9 104.2 52% 0% 51% Net commissions 0.2 0.6 1.1 1.3 0.6 1.3 0.8 1.9 122% 134% 129% Trading profit 0.6 0.6 0.6 0.7 0.8 0.7 1.2
Slide 25: Breakdown TFA
Breakdown TFA mln March 13 June 13 Sept. 13 Dec. 13 March 14 June 14 AUM 18,044 18,053 18,772 19,538 20,281 21,563 o/w Funds and Sicav 16,171 16,243 16,945 17,691 18,413 19,579 o/w Insurance 1,725 1,688 1,737 1,805 1,854 1,968 o/w GPM 148 122 90 42 15 15 AUC 10,496 10,616 10,890 11,550 12,074 11,903
Slide 26: Balance Sheet
Balance Sheet mln March 13 June 13 Sept. 13 Dec. 13 March 14 June 14 Due from Banks 17,230 17,008 16,305 16,331 17,085 13,476 Customer Loans 551 561 550 641 669 696 Financial Assets 108 108 98 98 102 1,726 Tangible and Intangible Assets 106 106 107 108 108 109 Derivatives 96 158 160 179 131 36 Other
Slide 27: Main Financial Ratios
Main Financial Ratios March 13 June 13 Sept. 13 Dec. 13 March 14 June 14 PFA TFA/ PFA (mln) 14.3 14.1 14.4 14.8 15.3 15.7 AuM / TFA 44% 44% 45% 45% 44% 46% CT1 / CET 1 Ratio 9.3% 9.8% 10.1% 12.2% 16.1% 19.5% Leverage Ratio 1.6% 1.97% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Revenues per TFA (bps) 98.2 92.0 83.