Banca Generali S.p.a. · MIL:BGN
Banca Generali — Q1 2012 Earnings Presentation
25 slides from Banca Generali's earnings presentation, May 8, 2012
Slide 1: Banca Generali 1Q12 Results and business update
Banca Generali 1Q12 Results and business update Milan, 8 May 2012
Slide 2: Today's Agenda
Today’s Agenda ¾ 1Q 2012 Results ¾ Net Inflows, AUM and recruiting ¾ 2012 Business Update ¾ Closing Remarks 2 Banca Generali 1Q 2012 Results and business update
Slide 3: A record quarter for Banca Generali
1Q 2012 Results The best quarter ever for Banca Generali, combining organic growth and market performance A record quarter for Banca Generali Net Profit (yoy) Record net profit: profit level doubled yoy driven by top lines growth, even including a 39.2 conservative stance on costs and provisioning +
Slide 4: Consolidated 1Q 2012 Profit and Loss Account: main takeaways
1Q 2012 Results Consolidated 1Q 2012 Profit and Loss Account: main takeaways (€ m) 3M11 3M12 % Chg 3M11 3M12 % Chg (reported) (reported) (excl. GIL) (excl. GIL) Net Interest Income 11,1 23,1 109,1% 11,1 23,1 109,1% Commission income 90,6 110,6 22,1% 83,0 103,7 25,0% ¾ Interest ¾ Interest income inco
Slide 5: Strong growth in total revenues (+60% yoy), with all business lines delivering
1Q 2012 Results Strong growth in total revenues (+60% yoy), with all business lines delivering a buoyant contribution Net Banking Income (LfL) (€ m) 99.6 Interest income doubled in the period (+109% yoy) +60% 23.1 (23%) driven by LTRO, higher investment yield and higher deposits 62.1 11.1 (18%) Net
Slide 6: Interest income doubled in the period thanks to a higher investment return and higher volumes
1Q 2012 Results Interest income doubled in the period thanks to a higher investment return and higher volumes Quarterly Net Interest Income (LfL) Net Interest Income split (QoQ) (€ m) (€ m) +109.1% 23.1 23.1 +47% LTRO*/ 8 Time deposits 15.7 15.7 11.1 4 15 Ordinary component 12 1Q11 4Q11 1Q12 4Q11 1Q
Slide 7: Gross commission posted a nice pick up (+25% yoy)
1Q 2012 Results Gross commission posted a nice pick up (+25% yoy), bearing fruits of an excellent fund performance and buoyant net inflows Management Fees (LfL, QoQ) Breakdown of Gross Commissions (LfL, YoY) (€ m) (€ m) +5% 103.7 61.2 29.4 58.2 +25.0% (28%) 4Q11 1Q12 6.0 83.0 (6%) Management fees ar
Slide 8: Net commissions sharply up, as higher performance fees drove reported pay-out down
1Q 2012 Results Net commissions sharply up, as higher performance fees drove reported pay-out down Net Commissions (LfL) Pay-out (LfL) (€ m) 41.5% 68.8 33.6% +41.8% 48.6 1Q11 1Q12 Pay-out trend excl. Perf. Fees (LfL) 47.0% 1Q11 1Q12 43.7% Net commissions are 42% higher yoy, even after accounting for
Slide 9: The spike in costs linked to one-off items and set to be reabsorbed by year-end
1Q 2012 Results The spike in costs linked to one-off items and set to be reabsorbed by year-end Operating costs (LfL) Staff costs (LfL) 17.5 +18% 16.2 0.8 Staff costs increase reflects a conservative 41.6 stance on variable 35.3 +3% costs 46% 42% (16.2) +8% (17.5) 1Q11 1Q12 One-off items (€ m) 52% 5
Slide 10: AUM profitability climbs to 2.11%, the record level for the group so far
1Q 2012 Results AUM profitability climbs to 2.11%, the record level for the group so far Interest Margin contribution to AUM profitability AUM Profitability (LfL) 0.39% 2.11% 0.19% 0.49% 1.61% 0.07% 1.47% 1.62% 1Q11 1Q12 1.54% +8 bps (€ m) Average underlying AUM 0.27% 1Q11 24,133 1Q12 23,674 Perform
Slide 11: Banca Generali has further strengthened its already solid capital base
1Q 2012 Results Banca Generali has further strengthened its already solid capital base Shareholders’ equity Excess Capital Tier 1 Capital Ratio Total Capital Ratio and dividends paid €61.4m 13.4% 333.6 €49.9m 13.3% €61.3m 100.8 11.7% 12.8% 281.2 262.4 89.6 11.1% 89.1 11.0% 2010 2011 1Q12 2010 2011 1
Slide 12: Today's Agenda
Today’s Agenda ¾ 1Q 2012 Results ¾ Net Inflows, AUM and recruiting ¾Business Update ¾ Closing Remarks 12 Banca Generali 1Q 2012 Results and business update
Slide 13: In 2012 net inflows confirm the positive track record of recent few months
Net Inflows, AUM and recruiting In 2012 net inflows confirm the positive track record of recent few months Total inflows in managed (€ m) Total net inflows and insurance assets 488 +3% 686 476 +60% Managed products 428 465 Insurance 376 Jan-April Jan-April 2011 2012 Jan-April Jan-April 2011 2012 Tot
Slide 14: Total assets increased by €1.4 billion in 1Q12 to €24.6 bn (+6% YTD)
Net Inflows, AUM and recruiting Total assets increased by €1.4 billion in 1Q12 to €24.6 bn (+6% YTD) Asset Breakdown Lux-based Assets (€ bn) 24.6 +6% 5,173 23.3 5,007 389 6.2 (25%) 441 5.9 (25%) 4,784 4,566 +3% 3.0 (12%) 2011 1Q12 2.8 (12%) BG Sicav BG Selection Sicav 7.8 (32%) 7.3 (31%) 1.9 (8%) (%
Slide 15: Brilliant 1Q12 performance at 4.5% (weighted)
Net Inflows, AUM and recruiting Brilliant 1Q12 performance at 4.5% (weighted) Asset Breakdown Average 1Q12 performance of key managed products (€ bn) 24.6 Port. Mgmt w. capital +12.9% 6.2 (25%) Protection (Target) BG Selection Sicav +6.0% Port. Mgmt w/o capital 3.0 (12%) protection +5.9% BG Sicav +5
Slide 16: The recruiting policy remained focussed on high standing professionals
Net Inflows, AUM and recruiting The recruiting policy remained focussed on high standing professionals 1Q12 Recruiting Results AUM/FA €m N. FAs AUM (€m) -1.0% 32.5 +6% 32.1 85 30.2 ¾ Banca ¾ Banca Generali Generali hired hired 13 13 professionals professionals in in 1Q 1Q 2012, 2012, with with 4 an
Slide 17: Today's Agenda
Today’s Agenda ¾ 1Q 2012 Results ¾ Net Inflows, AUM and recruiting ¾ Business Update ¾ Closing Remarks 17 Banca Generali 1Q 2012 Results and business update
Slide 18: 2Q12 business actions set to exploit current large growth opportunities in the market
2012 Business Update 2Q12 business actions set to exploit current large growth opportunities in the market Business actions set for 2Q12 Revising and continuing Exploiting the offer of Enhancing diversification the successful product capital protection products within clients portfolios campaign lau
Slide 19: Two tools to face market volatility and keep on gathering new assets
2012 Business Update Two tools to face market volatility and keep on gathering new assets Persisting volatile financial markets… … that Banca Generali faces with… 553 Spread BTP-Bund … a wide and diversified product offer… 550 500 388 450 +353% Deposit accounts/repos 400 350 -50% Bond and Curren
Slide 20: Low-risk products and high-profile advisory key to gather new assets (1/2)
2012 Business Update Low-risk products and high-profile advisory key to gather new assets in present market conditions (1/2) Bond and Currency Advisory A dedicated team of experts with a proven A powerful track record tool for: Personalized portfolio analysis for prospect clients Daily and Wee
Slide 21: The offer of portfolio management with capital protection represents a key step
2012 Business Update The offer of portfolio management with capital protection represents a key step for moving clients towards managed solutions Two new global lines and six new lines on emerging markets launched with expiry at 2017 Equity component focused on emerging markets, exploiting different
Slide 22: Today's Agenda
Today’s Agenda ¾ 1Q 2012 Results ¾ Net Inflows, AUM and recruiting ¾ Business Update ¾ Closing Remarks 22 Banca Generali 1Q 2012 Results and business update
Slide 23: Key objective: Growth
Closing remarks Banca Generali’s key principles to deliver future growth and value creation Network Quality Exploiting positive word of mouth to attract new clients Key objective: Selected recruiting, with focus only on top professionals Growth Fast time to market More Clients, More Assets, Co
Slide 24: 2012 Upcoming Corporate Events and Investor Relations Contacts
2012 Upcoming Corporate Events JULY Investor Relations Contacts Su Mo Tu We Th Fr Sa Giuliana Pagliari 1 2 3 4 5 6 7 Head of Investor Relations Tel +39 02 6076 5548 8 9 10 11 12 13 14 Approval of 1H 2012 results E-mail:giuliana.pagliari@bancagenerali.it 15 16 17 18 19 20 21 22 23 24 25 26 27 28 E-ma
Slide 25: Disclaimer
Disclaimer The manager responsible for preparing the company’s financial reports (Giancarlo Fancel) 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