Slide 1: 9M 2018 Results
9M 2018 RESULTS 6 NOVEMBER 2018
Slide 2: Agenda
AGENDA Preliminary remarks 9M 2018 results Net Inflows, assets and recruiting Business update 2
Slide 3: Executive Summary: Growth path confirmed
EXECUTIVE SUMMARY Growth path confirmed NET INFLOWS Solid commercial trend: net inflows at €4.1bn, despite market headwinds with a strong €4.1bn contribution from existing FAs (-20% yoy) Steady asset expansion and sticky mix: total assets at €58.5bn (+9%) o/w 76% in managed and insurance product
Slide 4: 9M 2018 Results: Key Takeaways
9M 2018 RESULTS: KEY TAKEAWAYS (€ m) 9M 17 * 9M 18 % Chg TOTAL BANKING INCOME Net Interest Income 47.1 44.2 -6.1% (reported -1%, adjusted +15%) Net income (loss) from trading activities and Dividends 14.1 22.1 56.8% Net Financial Income 61.2 66.3 8.4% Revenues in line with previous year despite Gros
Slide 5: Net Profit
NET PROFIT SIGNIFICANT INCREASE IN RECURRING PROFITS NET PROFIT DEVELOPMENT 147.4 (38.3) 38.7 (4.2) (0.8) (4.1) 135.8 2.4 (6.5) (2.9) Ongoing cost No relevant 48.2 discipline partially write-off position offset by higher 84.1 payments to bank Higher tax-rate Unfavourable rescue funds financial marke
Slide 6: Agenda
AGENDA Preliminary remarks 9M 2018 results Net Inflows, assets and recruiting Business update 6
Slide 7: Revenues: Net Financial Income
REVENUES: NET FINANCIAL INCOME NII GROWTH ACCELERATING NET FINANCIAL INCOME NET INTEREST INCOME (NII) Best NII on quarterly basis since 2Q 2015. Ongoing recovery led by the increase 66.3 +22% in volumes and the rise in investment yields 61.2 started in 2Q18 14.1 22.1 Interest-bearing assets at €
Slide 8: Revenues: Net Fee Income
REVENUES: NET FEE INCOME HIGHER NET RECURRING FEES (+20%) GROSS FEES Recurring fees +11% (management, entry & NET FEE INCOME banking) up by 12% +26% -56% 430.6 478.7 gross, +20% net 273.0 265.5 40.8 51.4 82.8 36.6 Solid management 36.6 fees (+11%) driven by 82.8 Management fees Entry & banking f
Slide 9: Pay-out Ratio
PAY-OUT RATIO MOVING SHARPLY LOWER PAY-OUT TO FAs PAY-OUT TO THIRD-PARTIES Lower pay-out ratio to FAs (-2.2 p.p.) primarily 52.9% 53.1% 50.9% thanks to a lower cost of growth (less recruitment, more defensive product 16.4 17.8 15.3 6.3% 6.5% mix) 5.9% 2.1 2.3 2.5 Lower pay-out to third- parties
Slide 10: Revenues: Management Fees & Margin
REVENUES: MANAGEMENT FEES & MARGIN QUARTERLY TREND (M/€) MANAGEMENT 144.7 150.6 156.5 158.1 159.8 160.8 116.9 118.6 116.7 120.4 125.2 130.0 135.3 FEES 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 TOTAL AVG. (bn/€) MANAGED 49.0 51.2 52.9 54.8 56.3 56.9 58.4 39.8 40.8 41.7 43.2 44.
Slide 11: Revenues: Other Fees
REVENUES: OTHER FEES QUARTERLY TREND 7.6 (M/€) 5.5 5.8 6.5 FRONT 3.6 3.9 4.4 3.6 4.6 4.7 3.7 5.0 3.6 FEES 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 BANKING 13.0 (M/€) 9.9 11.6 11.6 11.6 7.5 6.2 7.1 9.2 8.8 8.2 FEES 6.8 6.1 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
Slide 12: Breakdown of Annualised Gross Fee-Margin
BREAKDOWN OF ANNUALISED GROSS FEE-MARGIN MARGIN REBALANCING UNDERWAY MANAGEMENT FEES ENTRY FEES Total recurring margin at 1.23% 1.16 (-1bps YTD) with 1.11 1.12 1.13 1.11 1.07 0.11 0.11 new revenue stream 0.08 (+1bps) offsetting 0.04 0.04 0.04 lower management (%) (%) fees (-2bps) 2013 2014 2015 20
Slide 13: Operating Costs Breakdown
OPERATING COSTS BREAKDOWN COST DISCIPLINE CONFIRMED Operating costs up OPERATING COSTS COST BREAKDOWN +3% mostly on higher payments (+57%) to 65.5 67.0 bank rescue funds 139.2 143.3 (BRRD and FITD funds) 50.0 52.6 Lower total personnel +2% costs (-1%) on lower RMs recruiting packages +3.0% +5% o
Slide 14: Cost Ratios
COST RATIOS OPERATING LEVERAGE OPERATING COSTS/TOTAL COST/INCOME RATIO ASSETS 59.0% Operating 0.54% 52.6% costs/Total assets 0.51% 53.9% 53.4% 52.3% (-1bps YTD) 51.1% confirms operating 0.45% efficiency 0.42% 46.5% 44.0% 0.38% 42.5% Cost/Income ratio 40.3% 41.0%38.1% at best practice 0.34% level
Slide 15: Capital Position
CAPITAL POSITION SOLID CAPITAL AND HIGH LIQUIDITY POSITION REAFFIRMED CET1 RATIO TOTAL CAPITAL RATIO EXCESS CAPITAL Solid capital ratios 20.2% (0.6%) 19.6% 18.5% (0.5%) 18.0% 2 316 both on a YTD and 314 QoQ basis despite market volatility 10.2% 6.5% (m/€) CET1 at 18.0% about 3X min. SREP 2017 re
Slide 16: Agenda
AGENDA Preliminary remarks 9M 2018 results Net Inflows, assets and recruiting Business update 16
Slide 17: Total Assets
TOTAL ASSETS ASSET MIX AFFECTED BY MARKET VOLATILITY TOTAL ASSETS BREAKDOWN OF MANAGED SOLUTIONS 55.7 58.5 28.0 28.9 53.8 26.5 5.6 5.1 5.6 28.0 28.9 26.5 8.0 9.0 7.3 15.3 6.7 7.1 6.9 14.8 14.9 13.7 14.8 14.4 (BN/€) 7.0 7.3 7.9 12.5 12.8 14.3 9M17 2017 9M18 9M17 2017 9M18 Banking products Traditional
Slide 18: Net Inflows
NET INFLOWS PRODUCT MIX DRIVEN BY HIGHER RISK AVERSION TOTAL NET INFLOWS NET INFLOWS IN MANAGED SOLUTIONS 5.2 4.4 4.1 1.6 1.7 4.4 1.7 0.3 1.9 (bn/€) 1.1 (bn/€) 2.1 0.1 0.2 1.2 0.9 0.6 -0.3 -0.4 9M17 9M18 9M17 9M18 Banking products Traditional life policies Managed solutions Insurance wrappers Financ
Slide 19: Advisory Network
ADVISORY NETWORK STEADY QUALITY GROWTH TOTAL No. OF FAS AVG. ASSETS per FA 29.5 1,922 1,985 1,206 1,309 28.4 716 676 9M17 9M18 9M17 9M18 FA< €15m FA> €15m 19 EXISTING1 FAs (EFAs) No. OF NEW RECRUITS 1,635 1,748 57% 126 49% 84 72.0 59 54 25 No. of EFAs EFAs net inflows/Total 9M17 9M18 9M17 (left-hand
Slide 20: Agenda
AGENDA Preliminary remarks 9M 2018 results Net Inflows, assets and recruiting Business update 20
Slide 21: Nextam Partners (1/2)
NEXTAM PARTNERS (1/2) ACQUISITION OF AN ADVISORY BOUTIQUE IN ITALY Strategic rationale Target I. I Accelerating pace of growth in the private banking • Independent advisory boutique with 2,500+ space by gaining access to a large base of private clients, 99% of which are private individuals (top clie
Slide 22: Nextam Partners (2/2)
NEXTAM PARTNERS (2/2) ACQUISITION OF AN ADVISORY BOUTIQUE IN ITALY Terms of the deal P&L impact and synergies • Acquisition of 100% of Nextam Partners group • Total max purchase price €25.5m, • Merger and integration of Nextam Holding and • o/w €6.5m subject to earn-out and clawback clauses SGR with
Slide 23: Investor Day: 2019-2021 Strategic Drive
INVESTOR DAY 2019-2021 STRATEGIC DRIVE 2019-21 Strategic outlook and business initiatives Introducing new strategic partners The FA profession in the new environment P&L sustainability 24
Slide 24: 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 25: 2018 Upcoming Events; Investor Relations Contacts
2018 UPCOMING EVENTS DECEMBER Investor Relations Su Mo Tu We Th Fr Sa Contacts 1 2 3 4 5 6 7 8 Giuliana Pagliari 9 10 11 12 13 14 15 INVESTOR DAY Investor Relations Manager Phone +39 02 408 26548 16 17 18 19 20 21 22 3 December 2018 Mobile +39 331 65 30 620 London 23 24 25 26 27 28 29 E-mail: giulia