Slide 1: Autonomous Conference - November 25th 2015
Autonomous Conference - November 25th 2015
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: Agenda
Agenda Fineco highlights 3Q15 Results 3
Slide 4: Introducing Fineco
Introducing Fineco Leading multichannel direct bank in Italy, pioneer in anticipating sector trends since 1999 52.5bn 4.0bn TFA Sep'15 Net Sales One single account with multiple service access (+9% y/y) as of Oct '15 Online traditional banking services 407 +22% mn Euro Trading platform of choice in
Slide 5: Growth and Innovation History
Growth and Innovation History The bank for the future … dating back to 1999 Part of Pioneer in Capitalia online Business Group, Merger of Fineco trading innovation FinecoGroup and Xelion Banca Birth of 1 bank st S.p.A. listed Capitalia Most relevant Banca combining PFA on Borsa merged into merger in
Slide 6: Fineco Highlights
Fineco Highlights Unique business model, leading position in core segments, recurring profitability and attractive growth In the "sweet spot" to capture healthy long term sector dynamics Attractive market Leading position in core markets, difficult to replicate Unique, fully integrated business mode
Slide 7: Integrated Business Model
Integrated Business Model Fully integrated offer of banking, investing and brokerage services via a truly direct multi-channel approach, already at the forefront of banking distribution evolution Online banking 99% of total number of executed ASSET orders initiated online1 ASSET GATHERING GATHERERS
Slide 8: Focus on trading platforms
Focus on trading platforms Key figures as of Sept 2015 Well diversified platform By product2 Multichannel integrated 21.3 m Executed orders up to 3Q 15 platform with ease of access Bond 3% CFD 7% Market share in equity Forex 6% 19,91%1 trading in Italy Funds 9% Fully integrated services, with Equity
Slide 9: PFA network distribution – as of September 2015
PFA network distribution – as of September 2015 Capillary network, well spread across Italian regions, with lean structure €44.5bn Distribution network PFA network structure Total Financial Assets related to PFAs 2,610 PFAs Centre North-west 26% 33% Area managers North-east South and Islands 15% 32
Slide 10: Limited TFA concentration per Personal Financial Advisor
Limited TFA concentration per Personal Financial Advisor PFA network with limited TFA concentration, hence minimizing "key man" risk Breakdown of PFAs by per capita TFA1 Average seniority TFA (€m) # of PFAs % on total PFA % total TFA at Fineco Almost 780 PFAs with TFA 0-5 438 16.8% 2.3% 3.1 in exces
Slide 11: Latest Awards
Latest Awards Capital Finance The most International 2015 recommended bank - Best European Financial - Fineco is the most Advisory Team Award recommended bank in the world by word of mouth from customers, non-customers and former customers, according to a survey by the Boston Consulting Group Global
Slide 12: Agenda
Agenda Fineco highlights 3Q15 Results 12
Slide 13: Executive Summary
Executive Summary 3Q15 Net profit at 55.1mln (+55.7% y/y, +20.0% q/q), the best result ever achieved in Fineco’s history 9M15 Net profit at 148.8 mln (+36.2% y/y) with an annualized RoE at 45% 9M15 Revenues grow double digit (+22.2% y/y) supported by an effective business diversification even
Slide 14: Agenda
Agenda Fineco Results Focus on products 14
Slide 15: Results
Results Record high 9M15 net profit with 149 mln (+36.2% y/y). Double digit growth in revenues leading to a cost/income reduction Revenues, mln +22.2% Net Profit, mln +30.0% 407.4 +6.6% 333.3 107.5 131.0 139.7 +36.2% +55.7% 148.8 +20.0% 3Q14 2Q15 3Q15 9M14 9M15 109.3 55.1 Operating Costs, mln 35.4 4
Slide 16: Revenues by P&L items
Revenues by P&L items Business diversification leads to a solid revenue contribution from all P&L lines. Booming trading income (+112.7% y/y) Net interest, mln Fees and Commissions, mln +13.2% +5.6% +33.2% +30.0% +5.5% 172.4 182.0 -3.0% 185.7 142.9 56.4 60.5 63.9 45.8 62.9 61.0 3Q14 2Q15 3Q15 9M14 9
Slide 17: Net interest
Net interest Net interest income well sustained by continuous growth in sight deposits (+20.7% y/y) coupled with a pronounced reduction in cost of deposits Sight Deposits (mln) and net margins (bps) Securities lending (mln) and net margins (bps) +20.7% +4.2% +21.2% -1.7% 12,729 13,522 14,084 11,319
Slide 18: Net interest: focus on UniCredit bonds portfolio
Net interest: focus on UniCredit bonds portfolio Sustainable NII across all UC bonds maturities: just 5.48% CAGR in sight deposits growth needed by 2022 (historical growth realized: +13.4%) Run-off UniCredit bonds portfolio (mln) and spread (bps) 1,725 1,725 1,805 1,575 1,575 1,480 450 2016 2017 201
Slide 19: Costs
Costs 9M15 development costs up to sustain business growth. Reduction in running costs thanks to operating leverage Staff expenses, mln and FTE, # Stock granting post IPO(1) (July 2nd 2014) 953 992 1013 Staff expenses, related to top managers and key employees +12.6% Other administrative expenses, r
Slide 20: Capital Ratios
Capital Ratios Strong CET1 ratio transitional above 20% with a confirmed low risk balance sheet RWA, mln CET1 Ratio transitional, % Credit Market Operational +0.7p.p. -0.4p.p. +4.2% 19.76% 19.08% 19.38% 20.79% 20.43% -1.2% 1,850 1,836 1,826 1,804 1,731 Sept.14 Dec.14 Mar.15 Jun.15 Sept.15 1,052 1,03
Slide 21: TFA
TFA TFA continue to grow thanks to a healthy expansion in net sales despite the market turmoil affecting the markets over the summer period TFA evolution (Dec.10-Sep.15), bn Cumulated performance, bn -0.5 52.5 Net Sales +15.3 bn 49.3 3.7 Market Effect +2 bn 1.7 43.6 4.0 1.3 39.8 2.5 2.5 35.2 2.8 -3.
Slide 22: TFA and Net sales - breakdown
TFA and Net sales - breakdown Relentless growth in net sales, confirming the 360 degrees usage of Fineco services by clients during uncertain and volatile market periods Breakdown of total net sales, bn Breakdown of total TFA, bn +33.4% Guided products as % of AuM y/y +34.1% 4.1 +9.0% -2.4% 3.7 53.7
Slide 23: Personal Financial Advisors (PFA) network – Total Net sales
Personal Financial Advisors (PFA) network – Total Net sales Over 90% of total net sales generated by PFA network. Healthy expansion with ca.89% organic growth through a network of 2,610 PFAs PFA Network – total net sales, bn Net sales, bn - Organic/New Recruit of the year AuM AuC Deposits Net Sales
Slide 24: Agenda
Agenda Fineco Results Focus on products 24
Slide 25: Revenues by Product Area
Revenues by Product Area Effective business diversification leads to record high revenues well distributed across all product area Banking, mln 44% +10.3% +17.0% +5.9% 160.6 177.1 53.2 58.8 62.2 3Q14 2Q15 3Q15 9M14 9M15 Brokerage, mln 28% Investing, mln 28% Core revenues (NI excluded) +34.8% +42.0%
Slide 26: Banking
Banking Outstanding customers satisfaction along with smart and easy-to-use platform support a strong banking revenues generation Revenues, mln Direct deposits eop (mln) Net interest Net trading Sight Deposits Term Deposits Net fees Other +9.2% +10.3% 15,016 14,828 13,584 13,584 15,016 14,828 177.1
Slide 27: Brokerage
Brokerage Outstanding results confirming Fineco as best in class in Brokerage activity. Executed orders up to 21.3 mln with all-time best daily performance on August 24th Revenues, mln Volatility Index - Ftse Mib 30 Net interest Net fees Net trading 25 VltyCC Core revenues (NI excluded) 20 VltyCC +3
Slide 28: Investing
Investing Revenues up supported by a sound fee dynamic. AuM impacted by summer market turmoil but Guided products penetration remains strong Revenues, mln AuM eop (bn) +10.0% Net fees -5.1% +34.8% 26.1 26.2 24.8 22.6 23.6 115.6 85.7 Sep.14 Dec.14 Mar.15 Jun.15 Sep.15 +29.6% Guided products on total
Slide 29: Annex
Annex THE NEW BANK 29
Slide 30: P&L
P&L mln 1Q14 2Q14 3Q14 9M14 1Q15 2Q15 3Q15 9M15 Net interest income 58.3 57.6 56.4 172.4 57.6 60.5 63.9 182.0 Net commissions 47.7 49.3 45.8 142.9 61.7 62.9 61.0 185.7 Trading profit 7.1 5.8 6.5 19.4 17.1 11.0 13.2 41.3 Other expenses/income 0.0 0.0 -1.3 -1.3 0.4 -3.4 1.6 -1.5 Total revenues 113.1 1
Slide 31: Details on Net Interest Income
Details on Net Interest Income Volumes Volumes Volumes Volumes Volumes Volumes Volumes Volumes mln 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 9M14 9M15 & Margins & Margins & Margins & Margins & Margins & Margins & Margins & Margins Sight Deposits 51.8 10,950 52.1 11,319 51.7 11,668 51.6 12,729 52.2 13,522 54.5 1
Slide 32: UniCredit bonds underwritten
UniCredit bonds underwritten Before 2014 ISIN Currency Amount (€ m) Maturity Indexation Spread 1 IT0004307861 Amortizing Euro 150.0 30.09.2016 Euribor 1m 0.51% IT0004307861 Amortizing Euro 150.0 02.10.2017 Euribor 1m 0.51% IT0004307861 Amortizing Euro 150.0 02.01.2018 Euribor 1m 0.51% April 2014 2 I
Slide 33: Details on Net Commissions
Details on Net Commissions mln 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 9M14 9M15 Brokerage 21.0 18.7 15.2 24.1 19.8 19.5 54.8 63.4 o/w Equity 18.1 15.0 11.8 19.9 17.3 16.4 44.9 53.6 Bond 2.2 2.8 1.6 2.5 1.2 1.1 6.6 4.7 Derivatives 2.3 1.9 2.4 2.5 2.3 2.6 6.5 7.5 (1) Other commissions -1.7 -1.0 -0.7 -0.8 -1.0
Slide 34: Revenue breakdown by Product Area
Revenue breakdown by Product Area mln 1Q14 2Q14 3Q14 1Q15 2Q15 3Q15 9M14 9M15 Net interest income 52.1 52.1 51.3 52.8 54.8 58.0 155.5 165.6 Net commissions 0.6 1.3 1.1 1.5 2.8 3.2 3.0 7.5 Trading profit 0.8 0.7 0.8 1.9 1.3 1.1 2.3 4.2 Other -0.1 0.0 -0.1 -0.1 -0.1 -0.1 -0.2 -0.3 Total Banking 53.4 5
Slide 35: Breakdown TFA
Breakdown TFA mln Sept. 14 Dec. 14 March 15 June 15 Sept. 15 AUM 22,563 23,636 26,121 26,169 24,825 o/w Funds and Sicav 20,414 21,177 23,313 23,221 21,949 o/w Insurance 2,134 2,444 2,793 2,933 2,862 o/w GPM 15 15 15 15 14 AUC 12,034 11,952 13,219 12,613 12,868 o/w Equity 5,705 5,745 6,826 6,513 6,61
Slide 36: Balance Sheet
Balance Sheet mln Sept. 14 Dec. 14 March 15 June 15 Sept. 15 Due from Banks 13,613 13,892 14,070 14,583 13,966 Customer Loans 700 696 797 836 885 Financial Assets 1,722 1,699 2,270 2,244 2,241 Tangible and Intangible Assets 109 109 109 109 109 Derivatives 23 24 25 40 7 Other Assets 244 345 229 240 2
Slide 37: Main Financial Ratios
Main Financial Ratios Sept. 14 Dec. 14 March 15 June 15 Sept. 15 PFA TFA/ PFA (mln) 16.0 16.4 17.6 17.6 17.0 AuM / TFA 47% 48% 49% 49% 47% Revenues per TFA (bps) 96.8 97.1 106.1 103.8 106.7 Adjusted Cost / income Ratio 45.9% 45.8% 43.8% 44.6% 42.6% CET 1 Ratio 19.8% 19.1% 19.4% 20.8% 20.4% Adjusted