Slide 1: Fineco: 2014 preliminary Results
Fineco: 2014 preliminary Results Alessandro Foti, CEO Milan - February 9th 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: Executive Summary
Executive Summary 2014 Net profit at 149.9mln (+75.9% y/y); 154.6mln (+49.5% y/y) excluding non recurring items: IPO costs (in 2014), additional IRES (in 2013) and Deposit Guarantee Fund (both years). Adjusted RoE at 38% 4Q14 Net profit at 40.6mln (+14.8% q/q, 6x higher vs 4Q13); 40.8mln (+12.1%
Slide 4: Agenda: Fineco Results
Agenda Fineco Results Focus on products 4
Slide 5: Results
Results Solid and sustainable results with a double digit growth both on a quarterly and on a yearly basis Revenues, mln excluding non recurring item (Deposit Guarantee Fund) Net Profit, mln 20.3% 448.0 +49.5% +26.1% 372.3 excluding non recurring items(1) 154.6 +9.7% 448.0 370.3 92.8 90.9 106.7 117.
Slide 6: Revenues by P&L Items
Revenues by P&L Items Robust revenue growth sustained by accelerating commercial performance Net interest, mln Fees and Commissions, mln +26.6% +17.4% 228.2 +16.6% 195.7 29.6% 180.3 166.7 +15.4% -1.0% 56.4 55.9 45.4 45.8 52.9 43.1 4Q13 3Q14 4Q14 FY13 FY14 4Q13 3Q14 4Q14 FY13 FY14 Trading income, mln
Slide 7: Net interest
Net interest Impact of the decreasing 1M Euribor partially offset by the high quality banking platform continuing to attract very sticky sight deposits Sight Deposits (mln) and net margins (bps) Securities lending (mln) and net margins (bps) +12.1% +1.1% -31.0% 11,798 -1.5% 10,950 11,319 11,668 1,54
Slide 8: Costs
Costs Running costs down thanks to a strong operating leverage. Development costs up to sustain the business growth Staff Expenses, mln and FTE, # New stock granting post IPO 934 953 974 934 974 Staff expenses OAE Impacts on: +9.2% staff expenses, 6.9 related to top +17.1% 63.3 69.2 managers and 2
Slide 9: Capital Ratios
Capital Ratios Sound capital base and 20 cents dividend distribution RWA, mln CET1 Ratio transitional(1), % +6.8p.p. Credit Operational -0.7p.p. Market Floor 19.50% 19.76% 19.08% 16.07% 12.25% -28.3% 2,581 805 +6.9% Dec. 13 Mar. 14 June 14 Sept. 14 Dec. 14 1,968 1,850 1,738 1,731 31 CET1 Capital(1),
Slide 10: TFA
TFA Positive track record in net sales (+11.6bn since 2010) contributes to a strong TFA growth TFA evolution (Dec.10-Dec.14), bn Cumulated performance, bn 49.3 1.7 Net Sales +11.6 bn Market Effect +2.5 bn 4.0 43.6 1.3 39.8 2.5 2.5 35.2 2.8 -3.0 35.0 2.3 TFA Net sales Market TFA Net sales Market TFA
Slide 11: TFA
TFA 2014 Net sales at a record level. Guided products acceleration deeply contributes to AuM increase Breakdown of total net sales, bn Breakdown of total TFA, % 39.8bn 43.6bn 47.2bn 48.2bn 49.3bn +61.1% +44.5% 4.0 42% 45% 46% 47% 48% 2.8 23% 28% 30% 32% 36% 2.3 2.5 2.0 3.0 1.6 2.2 27% 1.4 26% 25% 25
Slide 12: Personal Financial Advisers (PFA) network – Total Net sales
Personal Financial Advisers (PFA) network – Total Net sales PFA network overperformed. Organic growth confirmed as a key driver in generating wealthy and sustainable net sales PFA Network – total net sales, mln Net sales, mln - Organic/New Recruit of the year Net Sales (Organic) AuM AuC Deposits Net
Slide 13: Agenda: Focus on products
Agenda Fineco Results Focus on products 13
Slide 14: Revenues by Product Area
Revenues by Product Area Excellent performance across all product areas Banking, mln 48% +46.5% 215.1 +39.5% 146.9 +4.3% 52.9 55.2 39.6 4Q13 3Q14 4Q14 2013 2014 Brokerage, mln 26% Investing, mln 26% Core revenues (NI excluded) +15.6% +13.7% +26.5% -7.2% 116.6 +16.8% +14.9% 100.8 124.6 115.7 +29.3% +
Slide 15: Banking
Banking Positive banking performance supported by volume growth, investment policy and continuous new clients acquisition Revenues, mln Direct deposits eop (mln) Net interest Net trading Net fees Other +46.5% +1.3% +9.9% 215.1 13,584 13,754 13,754 12,518 12,518 146.9 4Q13 3Q14 4Q14 2013 2014 207.7 C
Slide 16: Brokerage
Brokerage 24.3mln executed orders in 2014. Double digit growth in core revenues Fineco #1 online broker in Europe by executed orders(1) Revenues, mln Volatility Index - Ftse Mib October 2014: 30 best month Net interest Net trading of the last 3 yrs 25 Net fees Other for Brokerage +13.7% 20 124.6 Vlt
Slide 17: Investing
Investing Investing area took the lion share in revenue growth supported by an increasing demand of advanced advisory services Revenues, mln AuM eop (bn) Net fees +21.0% Other +15.6% +4.8% 22.6 23.6 116.6 20.3 21.6 18.0 19.5 100.8 Mar.13 Dec.13 Mar.14 June14 Sep.14 Dec.14 Guided products on total Au
Slide 18: Annex
Annex THE NEW BANK 18
Slide 19: P&L
P&L mln 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14 Net interest income 48.4 47.5 41.3 43.1 58.3 57.6 56.4 55.9 180.3 228.2 Net commissions 41.2 40.6 39.6 45.4 47.7 49.3 45.8 52.9 166.7 195.7 Trading profit 9.0 6.8 6.1 6.4 7.1 5.8 6.5 10.3 28.3 29.7 Other 0.6 -0.9 -0.6 -4.0 -0.8 -0.8 -2.1 -2.1
Slide 20: Details on Net Interest Income
Details on Net Interest Income Volumes Volumes Volumes Volumes Volumes Volumes Volumes mln 4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14 & Margins & Margins & Margins & Margins & Margins & Margins & Margins Sight Deposits 36.9 10,527 51.8 10,950 52.1 11,319 51.7 11,668 52.1 11,798 139.4 10,022 207.7 11,434 Net
Slide 21: UniCredit bonds underwritten
UniCredit bonds underwritten Before 2014 ISIN Currency Amount (€ m) Maturity Indexation Spread 1 IT0004307861 Euro 600.0 29.12.2017 Euribor 1m 0.51% April 2014 2 IT0005010233 Euro 382.5 30.01.2017 Euribor 1m 1.78% 3 IT0005010241 Euro 382.5 28.04.2017 Euribor 1m 1.87% 4 IT0005010258 Euro 382.5 27.07.
Slide 22: Details on Net Commissions
Details on Net Commissions mln 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14 Brokerage 17.0 15.5 13.5 16.6 21.0 18.7 15.2 19.0 62.6 73.8 o/w Equity 15.0 12.7 11.0 13.4 18.1 15.0 11.8 15.5 52.1 60.4 Bond 2.3 2.6 1.3 2.4 2.2 2.8 1.6 1.7 8.5 8.3 Derivatives 2.3 2.3 2.0 2.0 2.3 1.9 2.4 2.7 8.6 9.2 (
Slide 23: Revenue breakdown by Product Area
Revenue breakdown by Product Area mln 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 FY13 FY14 Net interest income 34.6 34.3 35.6 37.8 52.1 52.1 51.3 52.2 142.3 207.7 Net commissions 0.2 0.6 1.1 1.3 0.6 1.3 1.1 2.2 3.2 5.1 Trading profit 0.6 0.6 0.6 0.7 0.8 0.7 0.8 1.1 2.5 3.4 Other -0.3 -0.2 -0.4 -0.3 -0.
Slide 24: Breakdown TFA
Breakdown TFA mln March 13 June 13 Sept. 13 Dec. 13 March 14 June 14 Sept. 14 Dec. 14 AUM 18,044 18,053 18,772 19,538 20,281 21,563 22,563 23,636 o/w Funds and Sicav 16,171 16,243 16,945 17,691 18,413 19,579 20,414 21,177 o/w Insurance 1,725 1,688 1,737 1,805 1,854 1,968 2,134 2,444 o/w GPM 148 122
Slide 25: Balance Sheet
Balance Sheet mln March 13 June 13 Sept. 13 Dec. 13 March 14 June 14 Sept. 14 Dec. 14 Due from Banks 17,230 17,008 16,305 16,331 17,085 13,476 13,613 13,892 Customer Loans 551 561 550 641 669 696 700 696 Financial Assets 108 108 98 98 102 1,726 1,722 1,699 Tangible and Intangible Assets 106 106 107
Slide 26: Main Financial Ratios
Main Financial Ratios March 13 June 13 Sept. 13 Dec. 13 March 14 June 14 Sept. 14 Dec. 14 PFA TFA/ PFA (mln) 14.3 14.1 14.4 14.8 15.3 15.7 16.0 16.4 AuM / TFA 44% 44% 45% 45% 44% 46% 47% 48% Revenues per TFA (bps) 98.2 95.7 90.9 88.8 100.7 98.8 96.2 96.4 Adjusted Cost / income Ratio 51.7% 51.3% 51.0