Slide 1: 9M 2017 Results
9M 2017 RESULTS 8 NOVEMBER 2017
Slide 2: Agenda
AGENDA Preliminary remarks 9M 2017 results Net Inflows, assets and recruiting Business update 2
Slide 3: Executive Summary
EXECUTIVE SUMMARY High-quality results, also including extraordinary one-off charges REPORTED NET Growing recurring revenues (+20%) boosted by business expansions PROFIT New stream of revenues (advisory, trading) delivering on expectations (+38%) Flat operating costs providing evidence of oper
Slide 4: 9M 2017 Results: Key Takeaways
9M 2017 RESULTS: KEY TAKEAWAYS (€ m) 9M * 16 9M 17 % Chg Net Interest Income 44.3 47.1 6.4% STRONG TOTAL BANKING Net income (loss) from trading activities and Dividends 30.6 14.1 -54.1% INCOME (+19%) Net Financial Income 74.9 61.2 -18.3% Gross fees 446.4 554.2 24.2% Healthy business trend reflected
Slide 5: Agenda
AGENDA Preliminary remarks 9M 2017 results Net Inflows, assets and recruiting Business update 5
Slide 6: Revenues: Net Financial Income
REVENUES: NET FINANCIAL INCOME NET INTEREST INCOME + TRADING INCOME 74.9 DIVERGING TREND 61.2 30.6 Net Interest Income + 6% yoy 14.1 (M/€) Proprietary trading -54% yoy 44.3 47.1 9M16 9M17 BANKING BOOK at €5.8bn (+18%) NII Trading income 93% government, 56% floating rate, 1.7 yrs INTEREST-BEARING ASS
Slide 7: Revenues: Net Fee Income (1/2)
REVENUES: NET FEE INCOME (1/2) GROWING RECURRING FEES FEE INCOME BREAKDOWN 430.6 362.3 +30% +57% +19% 52.7 82.8 31.4 40.8 (€ m) +16% -198.7 -231.1 Management fees Entry & banking fees Performance fees Fee expenses PAY-OUT RATIO STABLE AT 49.0% (vs. 50.5% in 9M16) 7
Slide 8: Revenues: Management Fees & Margin
REVENUES: MANAGEMENT FEES & MARGIN QUARTERLY TREND MANAGEMENT (M/€) 118.6 130.0 135.3 144.7 150.6 107.6 116.1 116.9 116.7 120.4 125.2 FEES 93.9 97.4 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 TOTAL AVG. MANAGED 51.2 52.9 (M/€) 38.3 39.8 39.8 40.8 41.7 43.2 44.8 46.2 49.0 32.3 3
Slide 9: Revenues: Other Fees
REVENUES: OTHER FEES QUARTERLY TREND FRONT 9.6 9.5 10.5 10.3 (M/€) 7.6 FEES 3.6 3.9 4.4 3.6 4.6 5.2 5.0 3.7 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 BANKING 9.8 9.9 (M/€) 8.5 9.5 7.5 9.2 8.8 8.2 FEES 6.8 6.8 6.2 7.1 6.1 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2
Slide 10: Revenues: Banking Fees
REVENUES: BANKING FEES QUARTERLY TREND TRANSACTIONAL 2.3 2.4 2.3 2.1 2.1 2.1 (M/€) 2.0 1.9 2.0 1.9 2.0 1.9 1.8 BANKING FEES 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 ADVISORY (M/€) 2.2 FEES 1.0 2.0 1.1 1.2 1.0 1.2 1.0 1.5 1.4 1.9 0.1 0.5 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
Slide 11: Breakdown of Annualised Fee-Margin
BREAKDOWN OF ANNUALISED FEE-MARGIN GROSS MARGINS MANAGEMENT FEE ENTRY FEES 1.16 1.11 1.12 1.12 1.07 0.11 0.11 0.11 1.01 0.08 0.04 0.04 (%) (%) 2012 2013 2014 2015 2016 9M17 2012 2013 2014 2015 2016 9M17 BANKING FEE AND TRADING PERFORMANCE FEES 0.32 0.11 0.12 0.10 0.22 0.08 0.20 0.18 0.07 0.07 0.16 0
Slide 12: Operating Costs Breakdown
OPERATING COSTS BREAKDOWN FLAT COSTS PROVING MUCH BETTER THAN GUIDANCE 66.2 65.5 51.7 50.0 -1.1% (M/€) +2.2% -3.1% 13.0 13.3 +10% +66% 4.2 4.6 3.5 5.8 Non-sales personnel Sales personnel costs BRRD & FITD funds Depreciation General expenses (net costs of stamp duties) 9M16 9M17 TOTAL OPERATING COSTS
Slide 13: Cost Ratios
COST RATIOS OPERATING LEVERAGE OPERATING COSTS/TOTAL ASSETS COST-INCOME RATIO 57.0% (excl. performance fees) 0.54% 0.51% 50.5% 49.2% 50.1% 0.45% 0.40% 46.2% 0.37% 48.1% 0.33% 2012 2013 2014 2015* 2016* 9M17* 2012* 2013* 2014* 2015* 2016* 9M17* pro- forma1 * Adjusted for the extraordinary components
Slide 14: Provisions
PROVISIONS DIFFERENT RECRUITING PATTERNS PROVISIONS 64.0 INCREASE IN PROVISIONS 5.2 LINKED TO A SPIKE IN 8.7 RECRUITING ACTIVITY 40.3 45.6 40.4 3.2 34.7 1.5 RECRUITING ACTIVITY 11.2 2.3 4.5 25.0 EXPECTED TO REVERT TO 11.5 15.0 8.7 MEAN OVER NEXT FEW 8.8 24.7 QUARTERS 14.8 8.8 25.1 10.8 10.6 14.9 MOS
Slide 15: Solid Capital Position
SOLID CAPITAL POSITION CAPITAL RATIOS FURTHER IMPROVING CET1 RATIO TOTAL CAPITAL RATIO 17.8% 1.2% 19.6% 1.1% 18.4% 16.7% 7.0% 10.4% 2016 9M17 2017 SREP 2016 9M17 2017 SREP requirements requirements EXCESS CAPITAL LEVERAGE RATIO 28 290 5.0% 0.4% 5.4% 262 (€ m) 2016 9M17 2016 9M17 SREP requirements: M
Slide 16: Agenda
AGENDA Preliminary remarks 9M 2017 results Net Inflows, assets and recruiting Business update 16
Slide 17: Commercial Results (1/3)
COMMERCIAL RESULTS (1/3) NET INFLOWS AT 10.8% OF STARTING ASSETS Total Net Inflows 5.2 4.1 3.0 10.8% 2.4 9.8% 1.8 8.2% 1.4 8.4% 10.6% (bn/€) 7.1% 5.9% 9M12 9M13 9M14 9M15 9M16 9M17 Banca Generali’s share of Assoreti net inflows 20.4% 21.5% 13.4% 13.6% 14.6% 15.5% 2012 2013 2014 2015* 2016* 9M17* * e
Slide 18: Commercial Results (2/3)
COMMERCIAL RESULTS (2/3) UPGRADE IN YEAR-END NET INFLOWS TARGET NEW TARGET FOR 2017 NET INFLOWS 6.5 5.7 Range 5.0-5.5 (bn/€) 5.2 0.56 Jan-Sept. Jan-Oct. 2017 YE 2017 YE 2017 2017 OLD target NEW target 18
Slide 19: Commercial Results (3/3)
COMMERCIAL RESULTS (3/3) MANAGED SOLUTIONS TRIPLED YOY TOTAL NET INFLOWS NET INFLOWS IN MANAGED SOLUTIONS 5.7 4.8 4.5 1.9 1.8 4.8 1.8 1.4 0.3 2.0 0.8 (bn/€) (bn/€) 1.3 0.2 0.7 1.0 1.3 -0.3 -0.4 10M 2016 10M 2017 10M 2016 10M 2017 Banking products Traditional life policies Managed solutions Insurance
Slide 20: Wrapper Solutions
WRAPPER SOLUTIONS FASTER TOWARDS TARGETS WRAPPERS WRAPPERS + DM NET INFLOWS TOTAL ASSETS 13.7 3.8 10.3 2.4 7.9 3.3 4.3 2.0 2.5 6.0 3.6 1.4 0.7 0.7 1.0 3.8 7.0 (BN/€) (BN/€) 4.3 5.6 0.4 0.4 1.0 1.3 2.2 0.3 0.3 3Q16 3Q17 10M16 10M17 2014 2015 2016 9M17 Insurance wrappers Financial wrappers Discretiona
Slide 21: Total Assets by Product Category
TOTAL ASSETS BY PRODUCT CATEGORY RECORD GROWTH OF MANAGED SOLUTIONS TOTAL ASSETS BREAKDOWN OF MANAGED SOLUTIONS 53.8 26.5 45.3 20.2 5.6 26.5 20.2 5.7 7.3 5.1 6.7 14.3 14.8 4.2 (BN/€) 5.2 7.0 10.8 12.5 9M16 9M 2017 9M16 9M17 Banking products Traditional life policies Managed solutions Insurance wrapp
Slide 22: BG Fund Management
BG FUND MANAGEMENT GROWTH DRIVEN BY THE INSTITUTIONAL COMPONENT LUX-BASED ASSETS SHARE OF INSTITUTIONAL FUND CLASSES 56.5% 14.5 51.0% 12.5 44.6% 11.8 35.5% 8.8 10.9 9.3 9.9 BG 18.5% 21.9% SELECTION 7.3 (BN/€) 3.5 BG SICAV 1.5 2.5 2.6 0.1 BG ALTERNATIVE 2012 2013 2014 2015 2016 9M17 2014 2015 2016 9M
Slide 23: Recruiting Activity
RECRUITING ACTIVITY SLOWDOWN IN SIGHT No. OF NEW RECRUITS No. OF NEW RECRUITS BY QUARTER 161 126 59 126 112 49 102 42 81 122 34 35 36 69 32 53 92.0 75.0 88 50 35 57 31 27 34 39 24 18 2012 2013 2014 2015 2016 9M16 9M17 1Q 2Q 3Q 4Q From other FA networks From retail and private banks 2016 2017 Cost of
Slide 24: Agenda
AGENDA Preliminary remarks 9M 2017 results Net Inflows, assets and recruiting Business update 24
Slide 25: Business Model: Strategic Pillars
BUSINESS MODEL STRATEGIC PILLARS AVG. FA’s AUM PER CAPITA BG Assoreti QUALITY – Profile moving private Quality of PRODUCTIVITY – Holistic approach FA network 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1-17 TARGET– Clear private banking upswing WEALTH MANAGEMENT – New offering Wealth taking g
Slide 26: Quality of the Network - Profile Moving Private
QUALITY OF THE NETWORK - PROFILE MOVING PRIVATE FAS GROWING BY QUALITY 5% 8% 9% 10% 12% 36% 42% No. of FAs 46% 48% 51% by clusters 59% 50% 45% 42% 37% 2013 2014 2015 2016 9M17 <15 mln 15-50 mln >50 mln 24% 30% 32% 35% 38% ASSETS by cluster of 49% 50% 51% 50% FAs 50% 27% 20% 17% 15% 12% 2013 2014 201
Slide 27: Quality of the Network - Profile Moving Private
QUALITY OF THE NETWORK - PROFILE MOVING PRIVATE CUSTOMER BASE FOLLOWING No. of clients (>€10K) and related assets No. of clients with assets >€500K 63% 62% 21,258 211.7 53.6 60% 18,633 10% 58% 16,073 54% 13,939 31% 1.6 1.6 1.6 64% 10,746 1.5 1.5 59% 27% (€ bn) 10% Total related assets 2013 2014 2015
Slide 28: WM Approach – Products – Ongoing Innovation
WM APPROACH – PRODUCTS - ONGOING INNOVATION DISTINCTIVE PRODUCT OFFER FOR HNW CLIENTS DEDICATED INVESTMENT VEHICLES FOR INSTITUTIONAL/PROFESSIONAL CLIENTS NEW LUX-BASED SICAV BG NEXT RATIONALE RATIONALE (AUM €255m) PRODUCT OFFER REVIEW - new macro themes/client needs ASSET CLASSES Private debt - Loa
Slide 29: Partnership with Saxo (1/3)
PARTNERSHIP WITH SAXO (1/3) THE REASON WHY A. PRESENCE IN 180 COUNTRIES, USD12.0BN DAILY TRADED VOLUMES B. STATE OF THE ART MULTI-ASSET TRADING PLATFORM WITH ONGOING INVESTMENTS IN IT INFRASTRUCTURE C. WELL-KNOWN BRAND WORLDWIDE BOTH IN THE B2C AND B2B2C (WHITE LABEL BUSINESS) 29
Slide 30: Partnership with Saxo (2/3)
PARTNERSHIP WITH SAXO (2/3) NEW PARTNERSHIP SAXO-BANCA GENERALI 19.9% 80.1% SET-UP OF A NEW BROKERAGE FIRM A. EXCLUSIVE AGREEMENT FOR THE ITALIAN MARKET - Banca Generali as reference bank B. SET-UP OF NEW BROKERAGE FIRM – 80.1% controlled by Saxo and 19.9% by Banca Generali C. SHARED GOVERNANCE - ve
Slide 31: Partnership with Saxo (3/3)
PARTNERSHIP WITH SAXO (3/3) LONG-TERM TARGET AS IS 4Y TARGET BG customers (B2B) with a security Est. customers of the Newco account • 25K (10% of total customer base) • 40K (+15K in four years) • Total security rotation: 90% (vs. peers 142% to • Launch of hedging strategies for 572%) SMEs • Online r
Slide 32: Business Recognition
BUSINESS RECOGNITION QUALITY REWARDED PF Monitor - GfK Eurisko Banca Generali was also ranked No. 2 by brand equity in private banking (vs. No. 4 in 2016 and No. 5 in 2015) - in the ‘Private Banker Monitor’ of GfK Eurisko in association with AIPB 32
Slide 33: Disclaimer
DISCLAIMER The manager responsible for preparing the company’s financial reports (Tommaso Di Russo) declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law of Finance, that the accounting information contained in this presentation corresponds to the document results, books and a
Slide 34: Contacts
CONTACTS Investor Relations Investor App Giuliana Pagliari Investor Relations Manager Phone +39 02 6076 5548 Mobile +39 331 65 30 620 E-mail: giuliana.pagliari@bancagenerali.it E-mail: investor.relations@bancagenerali.it Corporate Website www.bancagenerali.com 34