Finecobank Spa · MIL:FBK
Finecobank Spa — J.P. Morgan Italian Conference 2015
32 slides from Finecobank Spa's conference presentation, Oct 2, 2015
Slide 1: J.P. Morgan Italian Conference - October 2nd, 2015
J.P. Morgan Italian Conference - October 2nd, 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 2Q15 Results 3
Slide 4: Introducing Fineco
Introducing Fineco Leading multichannel direct bank in Italy, pioneer in anticipating sector trends since 1999 53.8bn 2.8bn TFA June'15 1Half 2015 One single account with multiple service access (+14% y/y) Net Sales Online traditional banking services 268 +19% mn Euro Trading platform of choice in I
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 June 2015 Well diversified platform By product2 Multichannel integrated 14.7m Executed orders in 1H15 platform with ease of access Bond 3% CFD 6% Market share in equity Forex 7% 19,91%1 trading in Italy Funds 10% Fully integrated services, with Equity C.
Slide 9: Latest Awards
Latest Awards Capital Finance Global Brands International 2015 Magazine 2015 and 2014 - Best European Financial Advisory Team Award - Most Innovative Banking Brand Italy - Best Financial Brand Global Finance Award 2015 2014 best Web Site - Italy: Best Digital Bank - Italy: Best in Social Media - Bes
Slide 10: Agenda
Agenda Fineco highlights 2Q15 Results 10
Slide 11: Results
Results 1H15 Net profit at 93.7mln with healthy double digit growth (+26.9% y/y). New charges for Single Resolution Fund (3mln gross) booked in 2Q15 Revenues, mln +18.5% Net Profit, mln +16.2% -4.1% 267.7 225.9 136.7 131.0 112.8 +26.9% +24.3% -3.9% 93.7 2Q14 1Q15 2Q15 1H14 1H15 73.9 47.8 45.9 36.9 O
Slide 12: Revenues by P&L Items
Revenues by P&L Items Solid revenue growth boosted by Fees and commissions (management fees) Net interest, mln Fees and Commissions, mln +5.1% +1.9% +27.7% +28.4% +5.1% +2.1% 115.9 118.1 124.6 97.0 57.6 57.6 60.5 61.7 62.9 49.3 2Q14 1Q15 2Q15 1H14 1H15 2Q14 1Q15 2Q15 1H14 1H15 Trading income, mln Ot
Slide 13: Net interest
Net interest High-quality volume growth coupled with a reduction in cost of deposits more than offset lower gross margins in the current macro environment Sight Deposits (mln) and net margins (bps) Securities lending (mln) and net margins (bps) +19.5% +6.2% -7.2% +5.1% 12,729 13,522 10,950 11,319 11
Slide 14: Net interest: focus on UniCredit bonds portfolio
Net interest: focus on UniCredit bonds portfolio Sustainable NII across all UC bonds maturities with only 4.36% new sight deposits needed by 2022 (historical growth realized: +14.4%) Run-off UniCredit bonds portfolio (mln) and spread (bps) 1,720 1,720 1,803 1,570 1,570 1,480 450 150 2015 2016 2017 2
Slide 15: Costs
Costs Development costs, mainly related to marketing and PFAs network, up to sustain the business growth. Running costs flat thanks to a strong operating leverage Staff expenses, mln and FTE, # Stock granting post IPO 944 990 992 Staff expenses, related to top managers and key employees +16.8% Other
Slide 16: Capital Ratios
Capital Ratios CET1 ratio transitional above 20% with a low risk balance sheet RWA, mln CET1 Ratio transitional, % Credit Operational +1.3p.p. Market +1.4p.p. +5.1% 19.50% 19.76% 19.08% 19.38% 20.79% -0.5% 1,850 1,836 1,826 1,738 1,731 Jun.14 Sept.14 Dec.14 Mar.15 Jun.15 1,052 1,039 1,061 CET1 Capit
Slide 17: TFA
TFA TFA growth at all time high and healthy net sales expansion in all market conditions TFA evolution (Dec.10-June15), bn Cumulated performance, bn 53.8 1.6 49.3 2.8 Net Sales +14.4 bn 1.7 Market Effect +4.2 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 Market TFA Net Market TFA Net M
Slide 18: TFA and Net sales - breakdown
TFA and Net sales - breakdown High quality net sales boosted by strong AuM expansion. Relentless growth in Guided products penetration 29% Breakdown of total net sales, bn Breakdown of total TFA, bn +40.9% Guided products as % of AuM +14.0% 2.8 +9.0% 2.0 53.7 53.8 +27.6% 48.2 49.3 47.2 1.7 45.6 1.6
Slide 19: Personal Financial Advisors (PFA) network – Total Net sales
Personal Financial Advisors (PFA) network – Total Net sales More than 90% of total net sales generated by PFA network. Once again organic growth took the lion share of the inflows PFA Network – total net sales, mln Net sales, mln - Organic/New Recruit of the year +45.6% Net Sales (Organic) AuM AuC D
Slide 20: Revenues by Product Area
Revenues by Product Area Business diversification led sound revenue generation across all product areas Banking, mln 43% +8.7% +6.9% +4.7% 107.4 114.9 54.1 56.1 58.8 2Q14 1Q15 2Q15 1H14 1H15 Brokerage, mln 29% Investing, mln 29% Core revenues (NI excluded) +22.5% +28.1% 29.3% +37.6% +37.3% +37.6% -2
Slide 21: Banking
Banking Smart and easy-to-use platform attracts high-quality deposits Revenues, mln Direct deposits eop (mln) Net interest Net trading Net fees Other +9.4% +6.9% 15,016 14,371 114.9 13,731 107.4 +8.7% Jun.14 Mar.15 Jun.15 +4.7% Clients and new clients, thousands # 56.1 58.8 107.6 54.1 104.2 +8.4% +2
Slide 22: Brokerage
Brokerage 14.6mln executed orders boosted core revenues (+37.6% y/y) Revenues, mln Volatility Index - Ftse Mib 30 Net interest Net fees Net trading 25 Core revenues (NI excluded) 20 VltyCC 15 +37.6% +29.3% VltyCC 10 5 78.0 0 9.9 Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- D
Slide 23: Investing
Investing Revenues strongly grew thanks to AuM at all-time high and increasing penetration of guided products Revenues, mln AuM eop (bn) +21.4% Net fees +0.2% +37.6% 26.1 26.2 21.6 22.6 23.6 77.0 +37.3% 56.0 Jun.14 Sep.14 Dec.14 Mar.15 Jun.15 +11.3% Guided products on total AuM, % 40.6 36.5 +11.8 p.
Slide 24: Annex
Annex THE NEW BANK 24
Slide 25: P&L
P&L mln 1Q14 2Q14 1H14 3Q14 4Q14 FY14 1Q15 2Q15 1H15 Net interest income 58,3 57,6 115,9 56,4 55,9 228,2 57,6 60,5 118,1 Net commissions 47,7 49,3 97,0 45,8 52,9 195,7 61,7 62,9 124,6 Trading profit 7,1 5,8 12,9 6,5 10,3 29,7 17,1 11,0 28,1 Other expenses/income 0,0 0,0 0,0 -1,3 -1,3 -2,6 0,4 -3,4 -
Slide 26: Details on Net Interest Income
Details on Net Interest Income Volumes Volumes Volumes Volumes Volumes Volumes Volumes Volumes mln 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 1H14 1H15 & Margins & Margins & Margins & Margins & Margins & Margins & Margins & Margins Sight Deposits 51.8 10,950 52.1 11,319 51.7 11,668 52.1 11,798 51.6 12,729 52.2 1
Slide 27: UniCredit bonds underwritten
UniCredit bonds underwritten Before 2014 ISIN Currency Amount (€ m) Maturity Indexation Spread 1 IT00043078611 Euro 600.0 29.12.2017 Euribor 1m 0.51% Titoli Acquistati Aprile 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 IT00050102
Slide 28: Details on Net Commissions
Details on Net Commissions mln 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 1H14 1H15 Brokerage 21.0 18.7 15.2 19.0 24.1 19.8 39.6 43.9 o/w Equity 18.1 15.0 11.8 15.5 19.9 17.3 33.1 37.2 Bond 2.2 2.8 1.6 1.7 2.5 1.2 5.0 3.7 Derivatives 2.3 1.9 2.4 2.7 2.5 2.3 4.2 4.9 (1) Other commissions -1.7 -1.0 -0.7 -0.9 -0.8
Slide 29: Revenue breakdown by Product Area
Revenue breakdown by Product Area mln 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 1H14 1H15 Net interest income 52.1 52.1 51.3 52.2 52.8 54.8 104.2 107.6 Net commissions 0.6 1.3 1.1 2.2 1.5 2.8 1.9 4.3 Trading profit 0.8 0.7 0.8 1.1 1.9 1.3 1.5 3.2 Other -0.1 0.0 -0.1 -0.1 -0.1 -0.1 -0.1 -0.2 Total Banking 53.4 5
Slide 30: Breakdown TFA
Breakdown TFA mln June 14 Sept. 14 Dec. 14 March 15 June 15 AUM 21,563 22,563 23,636 26,121 26,169 o/w Funds and Sicav 19,579 20,414 21,177 23,313 23,221 o/w Insurance 1,968 2,134 2,444 2,793 2,933 o/w GPM 15 15 15 15 15 AUC 11,903 12,034 11,952 13,219 12,613 o/w Equity 5,396 5,705 5,745 6,826 6,513
Slide 31: Balance Sheet
Balance Sheet mln June 14 Sept. 14 Dec. 14 March 15 June 15 Due from Banks 13,476 13,613 13,892 14,070 14,583 Customer Loans 696 700 696 797 836 Financial Assets 1,726 1,722 1,699 2,270 2,244 Tangible and Intangible Assets 109 109 109 109 109 Derivatives 36 23 24 25 40 Other Assets 248 244 345 229 2
Slide 32: Main Financial Ratios
Main Financial Ratios June 14 Sept. 14 Dec. 14 March 15 June 15 PFA TFA/ PFA (mln) 15.7 16.0 16.4 17.6 17.6 AuM / TFA 46% 47% 48% 49% 49% Revenues per TFA (bps) 99.5 96.8 97.1 106.1 103.8 Adjusted Cost / income Ratio 45.0% 45.9% 45.8% 43.8% 44.6% CET 1 Ratio 19.5% 19.8% 19.1% 19.4% 20.8% Adjusted Ro