Slide 1: 9M18 Results
9M18 Results Firenze, November 20th 2018 Kepler Italian Financials Conference
Slide 2: FinecoBank Key messages
FinecoBank Key messages 2
Slide 3: 9M18 key messages
9M18 key messages Delivery Healthy growth of consistent results in every market condition and sustainability at the heart of Fineco’s business model Clients Growing revenues aquisition Organic Diversified business model Sound growth Brokerage High Huge quality Sustainable Operating lending investing
Slide 4: FinecoBank 9M18 Results
FinecoBank 9M18 Results 4
Slide 5: Results
Results 9M18 adjusted net profit +14% y/y in a more complex environment Adj. Net Profit Adj. Cost / Income(1) 39% -1.2p.p. y/y +13.9% y/y 178.8 mln Adj. RoE(1) 35% 9M18 Adj. Net Profit (1) excluding non recurring items(1) (1) 9M18 non recurring items: severance (staff expenses): -1.6mln gross (-1.1m
Slide 6: Revenues and operating Costs
Revenues and operating Costs Operating leverage constantly delivered thanks to a relentless revenue growth and operating costs well under control Revenues Operating Costs Operating Leverage y/y growth +7.8% +6.5% y/y 464.8 mln +4.6% +8.4% y/y clients -1.2 182.8 mln TFA (bn) p.p. Cost / Income 9M18 9
Slide 7: Net interest Income
Net interest Income A progressive increase in a more diversified asset side continues Focus on Govies Avg, bn 7.0 +63.5% 100% fixed rate Residual maturity 4.3 3.7 3.9 yrs 2.7 2.8 o/w UC Bonds 2.7 yrs 1.5 0.1 0.5 o/w Govies 5.4 yrs 9M17 9M18 Italy Spain Other (1) 18.1 44.4 NII (mln) Interest Rate Sen
Slide 8: Boost in high quality lending volume
Boost in high quality lending volume Mortgages Personal loans Lombard loans Eop, mln Eop, mln Eop, mln 910 795 415 679 +222.6% +27.2% +98.2% y/y y/y y/y 231 Sep.18 Sep.18 Sep.18 186 446 127 Yield bps Yield bps Yield bps Other Lombard Credit Lombard 8
Slide 9: Brokerage
Brokerage Brokerage performance coherent with low markets’ volatility in the period Revenues mln 95.6 -1.3% y/y Revenues vs Volatility 9.8 Core Revenues (NII excluded) 56.6 29.3 9M18 Net Interest Fees and commissions Trading profit 9
Slide 10: TFA breakdown
TFA breakdown Successful shift towards high added value products Breakdown of total TFA Focus on AUM Eop, bn +11.0 bn AUM since the end of 2014, o/w: 70.9 Guided Products & Services +14.3bn 49.3 AuM à la carte -3.3 bn Eop, bn 49% 48% 34.9 +11.0 36% 66% bn 22.9 24% 20% 23.9 8.5 28% 30% 15.4 12.1 Dec.
Slide 11: Net sales breakdown
Net sales breakdown Solid 2018 net sales growth on the wave of structural trends in place despite a complex environment Breakdown of total Net Sales PFA Network – total Net Sales bn bn 0.4 5.2 +11.3% 0.4 4.6 +7.8% y/y 4.8 y/y 1.9 4.3 1.9 1.9 1.9 1.6 1.1 1.3 0.9 1.6 1.7 1.5 1.6 9M18 Oct.18 Oct.18 9M1
Slide 12: Organic growth
Organic growth Net sales organically generated confirmed as key in our strategy of growth Net Sales – Organic / Recruit (%) bn 6.0 4.8 Recruitment costs (to be amortized) 14% 13% stock 25.9mln 86% as of Sept.’18 84% 2017 9M18 Total recruits (1) Organic (1) Total recruits include net inflows related
Slide 13: Dealing with pressure on margins in a proactive way
Dealing with FinecoBank pressure on margins in a proactive way 13
Slide 14: Dealing proactively with pressure on margins
Dealing proactively with pressure on margins Our strategy has always focused on 3 main concepts 1 Continuous innovation leveraging on Improve best-in-class internal IT culture and Big QUALITY OF Data analytics to be recognized by clients as a premium brand SERVICES 2 3 Increase Increase OPERATIONAL
Slide 15: Continuous innovation
Continuous innovation 1 on usability and front-end efficiency to deliver distinctive products and services INVESTING BANKING Advanced reporting to improve Instant payments through web and usability (X-Net evolution, full mobile access to Advice and Plus also from BROKERAGE mobile with customizable w
Slide 16: Continuous PFAs quality and productivity improvement
Countinuous PFAs quality 2 and productivity improvement Average PFAs’ portfolio TFA concentration per PFA Eop, mln 23.4 +9.4% 2,622 PFAs 61.3bnTFA y/y 18% 43% 14% 13.1 +10% 44% 12% 73% y/y 19% 13.1 32% 4.1 +12% 12% 6.2 y/y +5% 21% Sep.18 y/y 24% +20% 6% 8.7 Sep.18 Sep.18 y/y AuM AuC Deposits Guided
Slide 17: Cross selling and clients' profile
Cross selling and clients’ profile 2 Net sales: new vs existing clients TFA per client mln 4.8 Total TFA: 70.9bn 3.6 58% 12% >500k 11% 39% Total clients: 100-500k 76% +132% 50-100k Avg age: 42% in the last 38% 24% 2 yrs <50k 48 years old 9M16 9M18 Net sales from existing clients Net sales from new c
Slide 18: Core Series, sub-advised funds and FAM evolution
in a nutshell 3 Innovative and modern approach to build portfolios, thus improving the relationship with CORE SERIES clients. Maximum level of diversification and efficiency - global oriented - daily monitoring of strategies and constant dialogue with portfolio manager First 31 strategies by year-en
Slide 19: Further opportunities
Further opportunities Fineco UK PATENT BOX Clients: geographical split Over 2,700 clients New clients acquired We applied in 2015 for intellectual 14% 18% properties (our platforms internally created UK and developed) and trademark 39% 39% Italian We are currently in talks with Italian Fiscal Au
Slide 20: Thank you
Thank you 20