Slide 1: 1H 2013 Results and Business Update
1H 2013 Results and Business Update Milan, 26 July 2013
Slide 2: Today's Agenda
Today’s Agenda 1H 2013 Results Net Inflows, AUM and Recruiting Business Update Closing Remarks Banca Generali 1H 2013 Results and Business Update 2
Slide 3: Another robust growth in net profit on top of +80% last year
Another robust growth in net profit on top of +80% last year… Interim Net Profit Best interim net profit ever +91% • Sound net profit increase at €71.6m (+6.3%), 67.4 71.6 beating the already strong result of last year on the back of continued growth in net inflows and better asset mix 37.4 +6.3% •
Slide 4: Driven by strong tailwinds for net inflows (particularly in managed products)
… driven by the strong tailwinds for net inflows (particularly in managed products) Total net inflows Net inflows in managed products 2012 vs. 1H13 2012 vs. 1H13 558 984 1,587 1,412 1,044 +35% +147% 643 2012 1H 2013 2012 1H 2013 (€ m) 1H 2H 1H 2H Total Assets Strong business momentum 27.4 • In 1H13,
Slide 5: Consolidated 1H13 results: main takeaways
Consolidated 1H13 results: main takeaways Net Interest Income (€ m) 6M12 * 6M13 % C hg 6M12 * 6M13 % C hg benefits from the expansion (reported) (reported) (excl. GIL) (excl. GIL) of ordinary business (+32%) Net Interest Income 51.3 63.6 24.1% 51.3 63.6 24.1% C ommission income 194.1 217.1 11.8% 180
Slide 6: The level of revenues is higher and more sustainable
The level of revenues is higher and more sustainable Total Revenues Recurring vs. Variable Revenues (€ m) 41.4 -26% 30.7 (16%) +8.7% 188.8 (24%) 173.7 158.1 63.6 51.3 (84%) (30%) (34%) 132.3 +19% (76%) 118.9 1H12 1H13 112.9 (63%) Recurring revenues Variable revenues (65%) • Robust growth in recurrin
Slide 7: Double-digit growth in fee income led by management fees
Double-digit growth in fee income led by management fees Quarterly management fees (€ m) Breakdown of total gross fees +18% 72.8 +12% 200.7 68.8 180.0 24.4 (12%) 65.8 61.5 62.8 +5.9% 31.9 (18%) 15.7 (8%) 12.5 (7%) 2Q12 3Q12 4Q12 1Q13 2Q13 141.6 +15% (71%) 122.7 • Higher volumes and better product mi
Slide 8: Interest spread broadly stable supported by lower funding costs
Interest spread broadly stable supported by lower funding costs Net Interest Income Strong contribution from ordinary business +24% • In a context of falling interest rates, Banca Generali successfully achieved a 2.73% 63.6 return on its banking book (broadly stable QoQ). 51.3 18.4 LTRO • Total bank
Slide 9: Strong increase in net commissions, with pay-out reflecting higher business volumes
Strong increase in net commissions, with pay-out reflecting higher business volumes Net Commissions (excl. performance fees) Pay-out ratio excl. perf. fees 45.3% 46.4% +17% 94.5 1H12 1H13 81.0 Net Inflows in managed products 1,587 643 1H12 1H13 (€ m) New Recruits by AUM potential 920 1H12 1H13 527 1
Slide 10: Cost/Income ratio at a record low level even after some 2Q one-off items
Cost/Income ratio at a record low level even after some 2Q one-off items Operating expenses Cost/Income ratio 85% +5.0% 75% 67.4% 65% 56.8% 55.4% 74.5 70.9 55% 45% 50.2% 39.5% 38.2% 34.4 35% 33.8 (46%) 1H08 1H09 1H10 1H11 1H12 1H13 (48%) 37.7 Costs in line with targets 34.9 (51%) • Staff costs prove
Slide 11: Profitability ratios provide evidence of company's positive business trend
Profitability ratios provide evidence of company’s positive business trend AUM profitability Management fees 1 1.97% 1.06% 1.91% 1.87% 1.01% 0.18% 0.26% 0.20% 0.14% 0.14% 0.16% 1.65% 1H12 1H13 1.51% 1.51% (1) Annualised management fees/Avg. total assets Avg. Total Assets 2 27.0 24.4 1H12 2012 1H13 P
Slide 12: Strong increase in all capital ratios
Strong increase in all capital ratios Excess Capital Tier 1 Capital Ratio Total Capital Ratio 13.8% 15.0% 141.3 13.0% 11.8% 12.8% 11.1% 105.8 89.1 2011 2012 1H13 2011 2012 1H13 2011 2012 1H13 (€ m) • Strong increase in excess capital (+34% YTD), already incorporating a dividend pay-out in line with
Slide 13: Today's Agenda
Today’s Agenda 1H 2013 Results Net Inflows, AUM and Recruiting Business Update Closing Remarks Banca Generali 1H 2013 Results and Business Update 13
Slide 14: Best interim result ever (ex tax-shields) both by volumes and by product mix
Best interim result ever (ex tax-shields) both by volumes and by product mix Total Net Inflows vs. Funds/SICAVs 1600 1,412 1400 1200 1,044 1,020 1000 800 646 579 600 AVG. 386 419 €579m 400 238 217 208 200 99 AVG. 52 €199m 0 1H08 1H09 1H10 1H11 1H12 1H13 Tot. Net Inflows Mutual Funds/SICAVs (€ m) • I
Slide 15: On-going shift from cash and banking products primarily into equity and bond funds
On-going shift from cash and banking products primarily into equity and bond funds Funds/SICAVs/Portfolio Insurance Banking products management 1,098 579 489 401 (175) 64 (€ m) 1H 2012 1H 2013 (€ m) 1H12 1H13 (€ m) 1H12 1H13 Funds/SICAVs Portfolio management current accouts security accounts • Best
Slide 16: Strong interim figure bodes well for year-end net inflows
Strong interim figure bodes well for year-end net inflows Net Inflows Trend in Jan– June 2009-2013 2013 net inflows 1,412 1,412 1,044 1,000 646 579 238 1H09 1H10 1H11 1H12 1H13 2000-12 avg. 1H 2013 2013 E (€ m) yearly net (€ m) inflows • 2013 interim net inflows already 40% • 1H 2013 net inflows is
Slide 17: Banca Generali is significantly outpacing market growth (1/2)
Banca Generali is significantly outpacing market growth (1/2) Ranking by total net inflows … Market share 17.6% 17.5% 16.6% 15.2% 14.9% 14.0% 1,306 1,296 1,236 1,127 1,107 4.6% 1,039 2.1% 0.8% 339 156 61 -13 (€ m) Source: Assoreti, figures at 31 May 2013 Ranking by No. of Financial Advisors … Market
Slide 18: Banca Generali's networks rank No. 2 by productivity (2/2)
Banca Generali’s networks rank No. 2 by productivity (2/2) Ranking by FA productivity (Net Inflows/Financial Advisors) +117% 908 757 544 502 349 326 246 239 219 117 (€ ‘000) Source: Assoreti, figures at 31 May 2013 Banca Generali 1H 2013 Results and Business Update 18
Slide 19: Banca Generali's distribution networks rank No. 1 by portfolio's size
Banca Generali’s distribution networks rank No. 1 by portfolio’s size Ranking by FA portfolio size (AUM/FA) +48% 18.4 16.2 14.4 14.3 12.7 12.5 10.1 8.7 8.7 8.2 6.9 6.8 (€ m) Source: Assoreti, figures at 31 March 2013 Banca Generali 1H 2013 Results and Business Update 19
Slide 20: Speed-up in recruiting pace thanks to favourable market conditions
Speed-up in recruiting pace thanks to favourable market conditions Jan-July 2012 Recruits Jan-July* 2013 Recruits FAs AUM FAs AUM 560 209 8 14 328 440 26 32 537 1,000 34 46 (€ m) (€ m) • 46 people recruited YTD with a significantly higher profile than those recruited in the past years (avg. portfoli
Slide 21: Strong asset increase, with a clear improvement in mix
Strong asset increase, with a clear improvement in mix Asset Breakdown Lux-based SICAV (GFM) 27.4 +12% +23% 24.6 6.0 7.7 4.9 (28%) Funds/SICAVs 6.1 (25%) 5.2 3.1 4.6 Portfolio 2.9 (11%) Management (12%) 0.3 0.8 (€ bn) 1H12 1H13 Life Insurance 7.9 8.9 (32%) (33%) • Total assets up by 12% YoY and 5% Y
Slide 22: Today's Agenda
Today’s Agenda 1H 2013 Results Net Inflows, AUM and Recruiting Business Update Closing Remarks Banca Generali 1H 2013 Results and Business Update 22
Slide 23: Business action in 2H 2013 will stick to asset mix and product review
Business action in 2H 2013 will stick to asset mix and product review Rebalancing of the asset mix • Excellent results so far: 2 pp increase already achieved in 1H13 (to 72% of total assets), out of the 3-4 pp target set for the year • Diversification of portfolios not concluded yet: still some 2-3
Slide 24: 2H 2013 new product launches to expand existing product offer
2H 2013 new product launches to expand existing product offer €27.4 bn €5.2bn FoF €8.9 bn Life Insurance Individual Portfolio €3.1 bn Management €2.5 bn Funds/SICAVs Conto Active Current Accounts & €7.7 bn Security deposits CONTO Security deposit transfer PRIVILEGE 1H 2013 Banca Generali 1H 2013 Res
Slide 25: BG Selection: expanding offer on selected investment themes
BG Selection: expanding offer on selected investment themes BG Selection: key objectives New sub-funds • Expanding existing offer with new Small/Mid Caps investment themes • Expanding offer on emerging markets Flexible EM leveraging on the expertise of leading international asset managers • Regional
Slide 26: New product additions to diversify current insurance offer
New product additions to diversify current insurance offer BG Cedola Più: key objectives Key product features Traditional spread life • Providing customers with a regular policy with capital income stream guarantee • Exploiting current tax-benefits for Yearly coupon paid equal to decumulation pl
Slide 27: Expanding in-house offer of flexible and global fixed-income funds
Expanding in-house offer of flexible and global fixed-income funds 2013 new mandates US/Global bond Global/EM bond key objectives • Diversifying offer of investment strategies on global bond/currency …. Flexible Euro • ….leveraging on the Global bank debt corporate bond expertise of leading internat
Slide 28: Today's Agenda
Today’s Agenda 1H 2013 Results Net Inflows, AUM and Recruiting Business Update Closing Remarks Banca Generali 1H 2013 Results and Business Update 28
Slide 29: A new organisation to better serve customers and distribution networks (1/2)
A new organisation to better serve customers and distribution networks (1/2) Chairman CEO and General Manager Governance & Risk Department Human Resources Risk Department Risk Management Internal Audit Anti Money Laundering Compliance External Communication Strategic Planning Financial Market and As
Slide 30: A new organisation to better serve customers and distribution networks (2/2)
A new organisation to better serve customers and distribution networks (2/2) • The new organisation has two joint-general managers reporting directly to the CEO: • Giancarlo Fancel - overseeing the finance and planning department, treasury and banking area. • Giancarlo will continue to oversee the c
Slide 31: A new organisation leading Banca Generali to a new and exciting growth phase
A new organisation leading Banca Generali to a new and exciting growth phase The new organization will allow a faster decision process in those areas that are deemed to be strategic to guarantee: 1. Ability to acquire market shares 2. Increase of long-term profitability 3. Preservation of the Bank’s
Slide 32: Leveraging on the existing strengths of Banca Generali to pursue further growth options
Leveraging on the existing strengths of Banca Generali to pursue further growth options Top • Focus on long-term growth and sustainability dividend yield • Shareholders’ value creation Top-rated network • Provision of the best investment solutions • Reference on the market for to suit each investors
Slide 33: 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
Slide 34: 2013 Upcoming corporate events
2013 Upcoming corporate events NOVEMBER Su Mo Tu We Th Fr Sa Investor Relations Contacts 1 2 Approval of 9M 2013 3 4 5 6 7 8 9 10 11 12 13 14 15 16 results Giuliana Pagliari Investor Relations Officer 17 18 19 20 21 22 23 Tel. +39 02 6076 5548 24 25 26 27 28 29 30 E-mail: giuliana.pagliari@bancagene