Banca Generali S.p.a. · MIL:BGN
Banca Generali — Q1 2013 Earnings Presentation
28 slides from Banca Generali's earnings presentation, May 7, 2013
Slide 1: 1Q 2013 Results and Business Outlook
1Q 2013 Results and Business Outlook Milan, 7 May 2013
Slide 2: Today's Agenda
Today’s Agenda 1Q 2013 Results Net Inflows, AUM and Recruiting Business Outlook Closing Remarks Banca Generali 1Q 2013 Results and Business Outlook 2
Slide 3: Solid net profit thanks to growing recurring income
Solid net profit thanks to growing recurring income… Reported Net Profit Solid set of 1Q13 results • Solid net profit at €35.5m (-9%), even after a 57% decrease in market-related items (trading and performance fees) 39.2 -9% 35.5 • Remarkable increase in recurring revenues to €79.5m (+27%) driven by
Slide 4: Driven by the heavy growth in net inflows and total assets
… driven by the heavy growth in net inflows and total assets 2013 monthly net inflows… … leading to a record start 210 241 861 207 203 +26% 686 133 (€ m) (€ m) 2012 January February March April Jan-April 2012 Jan-April 2013 monthly 2013 2013 2013 2013 average Total assets An excellent business start
Slide 5: Group 1Q13 results: main takeaways
Group 1Q13 results: main takeaways Strong increase in net (€ m) 3M12 3M13 % Chg 3M12 3M13 % Chg Interest Income driven by (reported) (reported) (excl . GIL) (excl . GIL) ordinary business (+20% Net Interest Income 23.1 33.5 44.7% 23.1 33.5 44.7% QoQ; +50% YoY) Commi s s i on i ncome 110.6 108.5 -1.9
Slide 6: Major improvement in revenue mix reflecting strong asset boost in the period
Major improvement in revenue mix reflecting strong asset boost in the period Total Revenues Total Revenues ex-trading income & performance fees 99.6 +20% 95.6 23.1 79.8 +27% (€ m) 33.5 79.5 69.2 31.2 62.5 (€ m) 68.8 +15% 60.8 45.3 7.7 3.3 1.3 1Q12 4Q12 1Q13 1Q12 4Q12 1Q13 Net Interest income Net Com
Slide 7: Steady increase in net interest contribution driven by the ordinary business
Steady increase in net interest contribution driven by the ordinary business Quarterly Net Interest Income Split of Net Interest Income +45% 33.5 33.5 31.2 31.2 10.5 LTRO/Repos/ Time deposits 23.1 23.1 12.1 +7% 7.8 Ordinary (€ m) 19.1 23.0 business (€ m) 15.3 1Q12 4Q12 1Q13 1Q12 4Q12 1Q13 • Yield on
Slide 8: Gross commissions highlighting an excellent mix
Gross commissions highlighting an excellent mix Breakdown of Gross Commissions Recurring commissions 1 (€ m) +16% 103.7 86.0 100.8 81.2 29.4 88.5 14.8 74.3 7.3 7.4 8.2 +6% 6.0 1Q12 4Q12 1Q13 68.8 1 Recurring commissions = management fees, banking fees, front fees 65.8 +5% 61.2 (€ m) • Robust growth
Slide 9: Stable pay-out policy to the network
Stable pay-out policy to the network Net Commissions Pay-out ratio excl. performance fees 68.8 60.8 45.3 53.2% 47.0% 46.5% 1Q12 4Q12 1Q13 (€ m) Net Commissions excl.-performance fees +17% 46.0 1Q12 4Q12 1Q13 39.4 38.0 +21% • Pay-out policy to financial advisors remained broadly stable, with quarterl
Slide 10: Operating costs up by 1.3%, less than the inflation rate in Italy
Operating costs up by 1.3%, less than the inflation rate in Italy Operating expenses Staff costs net of stamp duty1 17.5 17.7 +1.3% 38.5 38.0 +0.7% 1Q12 1Q13 (€ m) • Staff costs over the period reflected stable FTE (€ m) G&A costs ex-stamp duty 18.8 19.7 +4.3% 1Q12 1Q13 1Q12 1Q13 1 Stamp duty is ful
Slide 11: Profitability ratios provide evidence of company's positive business trend
Profitability ratios provide evidence of company’s positive business trend AUM profitability Cost/Income ratio 2.11% 2.05% 1.87% 0.23% 0.49% 0.20% 41.7% 39.1% 1.67% 1.82% 37,0% 1.62% 1Q12 2012 1Q13 1Q12 2012 1Q13 Performance Fees Recurring commissions & interest margin Figures do not incorporate the
Slide 12: Solid Capital Ratios
Solid Capital Ratios Excess Capital Tier 1 Capital Ratio Total Capital Ratio 13.8% 13.0% 122.3 12.6% 12.8% 11.8% 11.1% 106.0 89.1 2011 2012 1Q13 2011 2012 1Q13 2011 2012 1Q13 (€ m) Figures do not incorporate the contribution of Generali Investment Luxembourg (“GIL”) Banca Generali 1Q 2013 Results an
Slide 13: Today's Agenda
Today’s Agenda 1Q 2013 Results Net Inflows, AUM and Recruiting Business Outlook Closing Remarks Banca Generali 1Q 2013 Results and Business Outlook 13
Slide 14: Best four month period of the last five years
Best four month period of the last five years Net Inflows Net Inflows target for Jan– April 2009-2013 2013 1,600 1,200 861 686 443 428 156 Old Target New Target Jan-Apr 2009 Jan-Apr 2010 Jan-Apr 2011 Jan-Apr 2012 Jan-Apr 2013 (€ m) (€ m) • Jan-April 2013 net inflows represent the strongest start in
Slide 15: Over 70% of total net inflows flowed into funds and SICAVs
Over 70% of total net inflows flowed into funds and SICAVs FoF/Sicav/Portfolio Management 620 • Best quarter since 2009 in terms of net inflows in FoF, Sicav and Portfolio Management • Portfolio rebalancing set to continue in order to increase 23 current diversification within customers’ portfolios
Slide 16: Banca Generali is significantly outpacing market growth (1/2)
Banca Generali is significantly outpacing market growth (1/2) Ranking by total net inflows 19.9% 17.4% 16.3% … Market share 15.4% 14.8% 12.3% 831 730 682 5.6% 645 620 513 1.9% 0.1% 234 80 2 0.6 (€ m) Source: Assoreti, figures at 31 March, 2013 Ranking by No. of Financial Advisors 23.6% 20.4% … Marke
Slide 17: Banca Generali's networks ranking N°2 by productivity (2/2)
Banca Generali’s networks ranking N°2 by productivity (2/2) Ranking by FA productivity (Net Inflows/Financial Advisors) +116% 481 425 353 230 197 169 168 152 129 9 (€ ‘000) Source: Assoreti, figures at 31 March, 2013 Banca Generali 1Q 2013 Results and Business Outlook 17
Slide 18: Speed-up in recruiting pace thanks to favourable market conditions
Speed-up in recruiting pace thanks to favourable market conditions Jan-Apr 2012 Recruits Jan-Apr 2013 Recruits FAs AUM FAs AUM 450 173 7 10 205 159 13 16 655 332 20 26 (€ m) (€ m) • 26 people recruited YTD with a significantly higher profile (average portfolio of €25 million vs. €16.6 million for th
Slide 19: Total assets increased to €27 bn (+10%)
Total assets increased to €27 bn (+10%) Asset Breakdown Fund/Sicav (€ m) 27.0 (€ bn) +10% +19% 24.6 7.4 6.8 +9% 7.4 6.2 1.8 OTHER FUNDS (27%) 1.0 1.6 6.2 Funds/SICAVs (25%) 3.1 4.8 4.9 5.2 Portfolio 3.0 (12%) (12%) Management 0.4 0.3 0.4 1Q12 4Q12 1Q13 7.8 8.7 Life Insurance (32%) (32%) • Total asse
Slide 20: Net weighted performance of managed assets at 1.8% vs. Italian mutual fund industry at 0.9%
Net weighted performance of managed assets at 1.8% vs. Italian mutual fund industry at 0.9% Asset Breakdown Weighted Net Avg. Performance (Avg. 1.8%) € 4.5 bn FoF +3.4% Portfolio +1.0% € 3.1 bn Management Other +1.2% € 2.9 bn Other funds/SICAVs +5.3% € 8.7 bn Insurance +1.2% Current Accounts € 7.8 b
Slide 21: Today's Agenda
Today’s Agenda 1Q 2013 Results Net Inflows, AUM and Recruiting Business Outlook Closing Remarks Banca Generali 1Q 2013 Results and Business Outlook 21
Slide 22: Ongoing rebalancing in asset mix 1Q2013
Ongoing rebalancing in asset mix 2012 1Q2013 Funds/SICAV/ Funds/SICAV/ Portfolio Portfolio management management 38% 39% Insurance • Banca Generali is successfully rebalancing 32% Insurance asset mix from banking products towards funds/Sicav/portfolio management 32% • The weight of managed products
Slide 23: Rebalancing asset mix will remain a priority also in the next few months
Rebalancing asset mix will remain a priority also in the next few months Banca Generali Peers Fund, SICAVs and portfolio 37% 38% 39% Management 1 49% Insurance 32% 32% 32% 23% Assets under 31% 30% 29% 28% custody 9M12 FY12 1Q13 FY12 • Banca Generali’s exposure to managed products1 can be significant
Slide 24: Wide range of new investment solutions to be launched in the next few months
Wide range of new investment solutions to be launched in the next few months • launch of a new sub-fund • review of selected non performing sub-funds • Launch of 2 new mandates in addition to the 2 already launched (net inflows of €42m) • Banca Generali aims at constantly reviewing and widening its
Slide 25: Today's Agenda
Today’s Agenda 1Q 2013 Results Net Inflows, AUM and Recruiting Business Outlook Closing Remarks Banca Generali 1Q 2013 Results and Business Outlook 25
Slide 26: Closing remarks
Closing remarks Excellent start into 2013, strengthening our confidence for the outlook of the year: • Strong net inflows, supported by favourable recruiting conditions • Asset mix rebalancing gathering pace, favoured by falling interest rates • Operating leverage fully working, as cost base remain
Slide 27: 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 28: 2013 Upcoming corporate events
2013 Upcoming corporate events JULY Su Mo Tu We Th Fr Sa Investor Relations Contact 1 2 3 4 5 6 Approval of 1H 2013 7 8 9 10 11 12 13 Giuliana Pagliari results Investor Relations Officer 14 15 16 17 18 19 20 Tel +39 02 6076 5548 21 22 23 24 25 26 27 E-mail: giuliana.pagliari@bancagenerali.it 28 29 3