Banca Generali S.p.a. · MIL:BGN
Banca Generali — H1 2009 Earnings Presentation
33 slides from Banca Generali's earnings presentation, Jul 29, 2009
Slide 1: Review of 1H09 results and business outlook update
Banca Generali Review of 1H09 results and business outlook update Giorgio Girelli, CEO Milan, July 29, 2009
Slide 2: Today's Agenda
Today’s Agenda ¾ 1H09 Results ¾ Net Inflows, AUM and business update ¾ New strategic opportunities ¾ Closing Remarks 2 Banca Generali 2009 First Half Results
Slide 3: 1H09, an excellent result in still challenging market conditions
1H09 Results 1H09, an excellent result in still challenging market conditions NET NET PROFIT PROFIT 1H09 Results: Key Messages (€ m) +€18.4m 23.9 Strong Strong net net profit profit driven driven by by good good industrial industrial results results 25.8 Banca Generali 5.5 ex Simgenia ¾ Steady ¾ Ste
Slide 4: Consolidated Profit and Loss 1H09 Results: main takeaways
1H09 Results Consolidated Profit and Loss 1H09 Results: main takeaways (€ mil.) 1H 08 1H 09 % Chg (reported) (reported) 1H09 Results: Selected Items Net Interest Income 27.5 28.6 4.0% Commission income 121.7 137.9 13.3% Commission expense -54.3 -51.3 -5.6% ¾ Strong banking income (+53% yoy) Net Comm
Slide 5: Excellent revenue growth in all business lines
1H09 Results Excellent revenue growth in all business lines Breakdown of Net Banking Income (€ m) +53% ¾ Interest ¾ Interest margin margin remains remains positive positive despite despite interest interest 128.5 rate rate decrease decrease thanks thanks to to the the contribution contribution 28.6
Slide 6: Solid 1H09 interest margin even with falling interest rates
1H09 Results Solid 1H09 interest margin even with falling interest rates 3M Euribor 1H09 vs. 1H08 Interest Margin % 6 5.4% (Oct 8,2008) 5 + 4% 4 28.6 2.9% (Dec 31,2008) 27.5 3 2 1.5% (Mar 31,2009) 1 1.1% (Jun 30,2009) 0 1H08 1H09 Nov-08 Dec-08 May-09 Jun-08 Jul-08 Aug-08 Oct-08 Jan-09 Jul-09 Feb-09
Slide 7: Gross Commissions keep growing compared to last year and to last quarters
1H09 Results Gross Commissions keep growing compared to last year and to last quarters… Breakdown of Gross Commissions (€ m) Management fees quarterly trend +13% (€ m) 40 +8% +9% 37 137.9 34 121.7 24.0 (17%) 2.9 (2%) 17.4 (14%) 24.9 (18%) 4Q08 1Q09 2Q09 86.6 (71%) 77.2 (56%) ¾ Strong yoy increase in
Slide 8: High resilience in recurring revenues within the worst 12 months for financial markets
1H09 Results … and confirming a high resilience in recurring revenues even within the worst 12 months for financial markets … Breakdown of Recurring Revenues (ex performance fees) (€ m) -2.7% 1H09 vs. 1H08 Equity Markets (MS World all countries - 146.4 - 23% 142.5 € based) 27.5 28.6 AUM (ex-insuranc
Slide 9: Strong in-house fund performance allowed for good variable fees
1H09 Results … while the strong in-house fund performance allowed for good variable fees Strong Banca Generali in-house funds… …outperforming in most fund categories… (€ m) AUM Performance 12.4% Banca Generali Fideuram Indexes Dec 08 Jun 09 1H09 2,560 10.3% 2,249 4.5% 4.3% 3.3% 3.4% 842 2.7% 731 +5.
Slide 10: Thanks to a stable pay-out, net commissions increased by 29% yoy
1H09 Results Thanks to a stable pay-out, net commissions increased by 29% yoy 1H09 Net Commissions (€ m) 1H09 Pay-out* +28.5% 54.1% 45.7% 45.0% 86.6 67.4 1H08 FY08 1H09 (*) excluding performance fees ¾ In 1H09 pay-out remained stable on yoy basis 1H08 1H09 ¾ 2009YE pay-out is expected to remain in l
Slide 11: Financial items affecting 1H09 results
1H09 Results Financial items affecting 1H09 results Realised Unrealised Write-off Investment and Trading gains on the losses on the on Income Result impacting investment investment investments on 1H09 results portfolio portfolio €15.0m €7.2m 1H09 1H09 1H09 1H09 -€1.7m -€6.1m ¾ Primarily ¾ Primarily
Slide 12: Cost management is very effective, planning reductions especially in 2010
1H09 Results Cost management is very effective, planning to bear reductions especially in 2010 Operating Cost Breakdown ¾ Labour costs are fully under control, even absorbing the increase in the national (€ m) banking contract +13% ¾ Administrative costs include all costs 79.2 linked to current rest
Slide 13: AUM profitability is steadily improving
1H09 Results AUM profitability is steadily improving AUM Profitability Cost/Income Ratio +43 b.p. -11 p.p. 1.75% 67.4% 1.51% 1.32% 56.4% 1.48% 1.50% 1.30% 1H08 1H08 1H09 1H08 1H09 reported pro-forma* AUM profitability excluding perform. fees Performance Fees * Excluding Simgenia and Corporate Assets
Slide 14: Today's Agenda
Today’s Agenda ¾ 1H09 Results ¾ Net Inflows, AUM and business update ¾ New strategic opportunities ¾ Closing Remarks 14 Banca Generali 2009 First Half Results
Slide 15: Quality of net inflows strongly improved compared to last year
Net Inflows, AUM and Business Update Quality of net inflows strongly improved compared to last year 1H09 Monthly Net Inflows ¾ Banca ¾ Banca Generali Generali is is keeping keeping aa (€ m) 238 solid solid pace pace of of growth… growth… Steady Steady and and constant constant growth growth 44 47 ¾…
Slide 16: Insurance, strong growth and enhancement in business quality
Net Inflows, AUM and Business Update Insurance, strong growth and enhancement in business quality Life New Business Volumes ¾ FY09 ¾ FY09 target target for for life life new new business business has has largely largely (€ m) been been reached reached already already 444 ¾ Strong ¾ Strong improvemen
Slide 17: Assets: Excellent fund performance coupled with an increase in managed savings
Net Inflows, AUM and Business Update Assets: Excellent fund performance coupled with an increase in managed savings Banca Generali Asset Breakdown (€ bn) 19.5 ¾ Total AUM increased by 3% YTD, driven primarily 18.9* by mutual funds (+8.5%) and insurance 4.7 (25%) 5.1 (26%) assets (+3.9%) 2.6 (14%) 66
Slide 18: 2H09 Commercial Strategy Key Pillars
Net Inflows, AUM and Business Update 2H09 Commercial Strategy Key Pillars ¾ Acquiring new assets from existing and new Organic clients through security deposits previously held in commercial banks Growth Confirming ¾ Prudential portfolio asset transformation key guidelines set for year Recruiting ¾
Slide 19: Organic growth - Strong increase in managed products and security deposit transfer
Net Inflows, AUM and Business Update Organic growth - Strong increase in managed products and good prospects for security deposit transfer Security Deposits by retail banks and ¾ First training phase completed involving more than 400 FAs new inflows Transfer of ¾ Enhanced supporting tools (Advisory
Slide 20: Recruiting - 1H09 figures better than forecast, year-end target revised upwards
Net Inflows, AUM and Business Update Recruiting - 1H09 figures better than forecast, year-end target revised upwards 1H09 Recruiting Results FY09 Recruiting Targets N. FAs AUM (€m) N. FAs AUM (€m) ¾ Good ¾ Good 1H09 1H09 recruiting recruiting 80 45 figures, figures, particularly particularly for for
Slide 21: New Products – Five new compartments within BG Selection Sicav
Net Inflows, AUM and Business Update New Products – Five new compartment within BG Selection Sicav, entirely managed by third party asset managers Global MAPS (Flexible) Momentum (Flexible) Asia Global Opportunities (Pacific Equity) Active Allocation (Flexible) Global Elite (International Equity) Ab
Slide 22: New Multibrand Funds of Funds reinforcing competitive advantage in open architecture
Net Inflows, AUM and Business Update The new Multibrand Funds of Funds are reinforcing Banca Generali competitive advantage in open architecture… 1 Retail RetailMultibrand Multibrand Over 1,000 third party funds FINANZIARIA INTERNAZIONALE Alternative Investment SGR 2003 2 Professional ProfessionalMu
Slide 23: Widening the current offer in asset management
Net Inflows, AUM and Business Update … and further widening the current offer in asset management ranging from traditional products to the most tailor made ones Retail Multibrand Portfolio Management Funds and Sicav Funds of Funds Protected Banca BG Generali Discretionary capital Personalised Genera
Slide 24: Today's Agenda
Today’s Agenda ¾ 1H09 Results ¾ Net Inflows, AUM and business update ¾ New strategic opportunities ¾ Closing Remarks 24 Banca Generali 2009 First Half Results
Slide 25: Generali Fund Management to be launched, anticipating UCITS IV
New strategic opportunities Generali Fund Management to be launched, anticipating UCITS IV ¾ Generali’s ¾ Generali’s Group Group Lux-based Lux-based asset asset management management companies companies to to be be integrated integrated into into aa single single company company ¾ The ¾ The new new
Slide 26: Generali Fund Management, ambitious targets
New strategic opportunities Generali Fund Management, ambitious targets Within 2H09 Phase 1 Merging the two Lux Management Companies START START UP UP 51% 49% €8.1 bn €3.3 bn €4.8 bn Lux Concentration of Generali Group’s Mark-to-Market Assets (about €20bn) Within Phase 2 1H10 into “Generali Fund Man
Slide 27: Generali Fund Management, a real strategic change for Banca Generali
New strategic opportunities Generali Fund Management, a real strategic change for Banca Generali ¾ A fully integrated platform (production and distribution) focused on the Italian market through its own distribution channels ¾ Competitive landscape: Italy ¾ Revenue growth ¾ Revenue stabilisation ¾ F
Slide 28: Tax shield on asset repatriation - a great opportunity for Banca Generali
New strategic opportunities Tax shield on asset repatriation - a great opportunity for Banca Generali 2001/02 Tax Shield - €60bn assets repatriated Banca Generali ready to exploit the new 2009/10 tax shield on asset repatriation 7% ¾ Very large private and affluent client base 64% 8% and skilled con
Slide 29: Today's Agenda
Today’s Agenda ¾ 1H09 Results ¾ Net Inflows, AUM and business update ¾ New strategic opportunities ¾ Closing Remarks 29 Banca Generali 2009 First Half Results
Slide 30: The best quarter in the history of Banca Generali
Closing Remarks The best quarter in the history of Banca Generali 2006-1H09 2006-1H09 QUARTERLY QUARTERLY NET NET PROFIT PROFIT BREAKDOWN BREAKDOWN (€ m) 18.9 2006 2006 Net Net Profit Profit 2007 2007 Net Net Profit Profit 2008 2008 Net Net Profit Profit €14.2m €15.3m €7.9m 1H06 1H06 NP NP 2H06 2H06
Slide 31: Banca Generali facing strategic growth opportunities
Closing Remarks Banca Generali facing strategic growth opportunities Satisfaction for 1H09 results … ¾ AUM is growing steadily thanks to both net inflows and to excellent fund performance ¾ Recurring revenues broadly stable even in volatile markets ¾ Cost management is still a priority, with signifi
Slide 32: Investor Relations Team
Investor Relations Team Giuliana Giuliana Pagliari Pagliari Investor Investor Relations Relations Officer Officer Tel Tel +39 +39 02 02 6076 6076 5548 5548 Federico Federico Mangiagalli Mangiagalli Tel Tel +39 +39 02 02 6076 6076 5545 5545 Fax Fax +39 +39 02 02 6682 6682 854 854 E-mail E-mail invest
Slide 33: 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