Finecobank Spa · MIL:FBK
Finecobank Spa — Q3 2021 Earnings Presentation
18 slides from Finecobank Spa's earnings presentation, Nov 18, 2021
Slide 1: 3Q21 Results
3Q21 Results Alessandro Foti CEO and General Manager Milan, November 18th 2021 FINECO. SIMPLIFYING BANKING.
Slide 2: Agenda
Agenda Key messages Results Next steps Fineco UK 2
Slide 3: Key messages
Key messages Becoming more a Platform than a Bank Entered in a FinTech DNA powering a top quality one-stop-solution new dimension of growth Offering solutions at 360° to fulfill all clients’ financial needs Current situation has accelerated the Capital light business model structural trends
Slide 4: Consistently growing in our target market
Consistently growing in our target market Improving the quality of our client base Outperforming the system in Private Banking growth (1) € bn, TFA € bn, TFA Italian Private 103.5 FinecoBank Banking Association (2) +106.4% 69.3 91.7 +101.2% since 2016 +27.7% 44% 42% 45.9 991 37% 36% 22.2 44.8 776 39
Slide 5: Agenda: Fineco Results
Agenda Key messages Fineco Results Next steps Fineco UK 5
Slide 6: Facing a “new normal world”: record high 9M Net Profit
Facing a “new normal world”: record high 9M Net Profit vs previous record high in 9M20 Net Profit (1) Revenues Systemic charges: (3) -37.7mln (gross) in 9M21 -28.9mln (gross) in 9M20 +4.1% 596.9 mln +4.4% y/y y/y 257.2 mln 9M21 9M21 Cost / Income (1) 31% RoE (1) 22% Diversified revenues mix leading
Slide 7: Stable Net Financial Income and increasing Banking fees
Stable Net Financial Income and increasing Banking fees Net Financial Income NII Profits from Treasury Management 217.1 mln Banking fees +0.7% 186.1 35.6 mln y/y 31.0 +14.8% 9M21 y/y 9M21 NII Gross(1) 0.81% (2) 0.93% Total yield Margins Guidance Net Financial Income: we expect it to stabilize in F
Slide 8: Brokerage revenues: a structurally higher floor
Brokerage revenues: a structurally higher floor Structural growth in brokerage revenues: the floor has gone up in a clear way regardless of volatility Volatility (1) Avg volatility 2017-2019 3Q21 Brokerage Revenues: 186.1 Avg monthly revenues 2017-2019 161.0 mln Average ‘17-19 45.9 mln +36% y/y 12.0
Slide 9: Our priority: accelerating on Investing
Our priority: accelerating on Investing Improving our margins Investing revenues Upfront fees Management fees PFA incentives Increasing operating efficiency after-tax 46bps 47bps Other PFA costs Other income by Fineco Asset management Other commissions Slow but steady increase in 2Q21 3Q21 clien
Slide 10: Costs
Costs Operating costs The yearly increase is mainly linked to the strict lockdown in place in Italy Guidance in 9M20 and to costs related to the growth of the business, mainly related to: 2021: expected to grow around 5% y/y. We expect about 5 mln of • FAM as it is preparing to further increase th
Slide 11: A best in class capital position
A best in class capital position RWA CET1 Ratio Total Capital Ratio Leverage Ratio CET1 capital, mln 4,580 29.29% 3,309 18.37% 4.04% 76 1,195 Sept.21 Sept.21 Sept.21 Sept.21 Credit Operational 3.80% w/o temporarily excluding exposures Market 841 towards Central Banks from the total LR exposures (acc
Slide 12: Leverage Ratio Sensitivity
Leverage Ratio Sensitivity Focus on deleveraging our Balance Sheet to keep under control the growth of deposits and improve our quality revenues mix. Thanks to our new initiatives, which are not yet at full speed, at the same time we can: 1) sustain our growth OUR PRIORITY 2) distribute a growing di
Slide 13: Agenda: Next steps
Agenda Key messages Results Next steps Fineco UK 13
Slide 14: Focus on deleveraging
Focus on deleveraging Initiatives to keep under control our Balance Sheet and improve our revenues mix STRONG COMMERCIAL FOCUS ON AUM: WIDER PRODUCT RANGE TO FULLY CATCH THE WHOLE 1 3 SPECTRUM OF CLIENTS’ NEEDS ALSO THANKS TO FAM targeting only AUM net sales and solutions with a strong RISK MANAGE
Slide 15: Banking: Further combining Treasury and Business to boost growth
Banking: Further combining Treasury and Business to boost growth Industrial actions to manage liquidity MORE DYNAMIC TREASURY MANAGEMENT: yield enhancement strategies (unsecured lending, collateral switch) NEW PLATFORM TO DISTRIBUTE THIRD PARTIES full ADVANTAGE OF ECB’s TIERING AND TLTRO SAVINGS
Slide 16: Discontinuity on our Investing business
Discontinuity on our Investing business Strong volume effect FAM operational efficiency INCREASING PFAs PRODUCTIVITY thanks to our cyborg-advisory approach and to our technology The internalization of the value chain will allow FAM to progressively and structurally lower the costs of third parti
Slide 17: Agenda: Fineco UK
Agenda Key messages Results Next steps Fineco UK 17
Slide 18: Fineco UK: our quality one-stop-solution proves to work
Fineco UK: our quality one-stop-solution proves to work # Current accounts keeps accelerating Total current accounts Strategy 17.5k 18k 6k 10k Thanks to our FinTech DNA we can leverage 100% on our local infrastructure and deliver UK clients the same Dec.19 Dec.20 Sept.21 Oct.21 superior customer e