Finecobank Spa · MIL:FBK
Finecobank Spa — Q1 2025 Earnings Presentation
45 slides from Finecobank Spa's earnings presentation, May 2025
Slide 1: 1Q25 Results
1Q25 Results Lorena Pelliciari Paolo di Grazia CFO Deputy General Manager and Head of Global Business Milan, May 2025 FINECO. SIMPLIFYING BANKING.
Slide 2: Agenda
Agenda ✓Fineco overview ❑ Fineco 1Q25 Results ❑ Solvency, liquidity, MREL and risks ❑ Next steps ❑ Annex 2
Slide 3: Fineco, a leading FinTech Bank in Europe
Fineco, a leading FinTech Bank in Europe Integrated offer of Banking, Brokerage and Investing via multi-channel approach, for sustainable growth Corporate purpose: support clients in the responsible management of their savings in order to create the conditions for a more prosperous and fairer societ
Slide 4: Fineco, Megatrends the roots of future growth
Fineco, Megatrends the roots of future growth Current environment is intensifying the structural trends that are reshaping our society Structural trends deeply reshaping our society… DEMAND FOR RESTRUCTURING OF 1 2 DIGITALISATION 3 ADVANCED ADVISORY TRADITIONAL BANKS The growing participation of Ita
Slide 5: A unique positioning for a long-term growth story
A unique positioning for a long-term growth story Huge potential to gain additional market share of Italian households’ wealth Fineco, a long term growth journey just at the beginning Italian households TFA (Bankit, € bn) System FBK Breakdown of TFA GROWING STRUCTURAL TAILWINDS 5,902 5,692 3% IN OUR
Slide 6: Healthy and sustainable growth with a long term horizon
Healthy and sustainable growth with a long term horizon Highly scalable operating platform… 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 CAGR (2014-2024) 123 141 + 11% 92 108 107 69 81 1,656 + 6% 67 1,487 1,563 TFA (bn) 49 55 60 1,370 1,428 1,358 1,200 1,278 637 677 + 16% Clients (thd, #)
Slide 7: Safe Balance Sheet: simple, highly liquid
Safe Balance Sheet: simple, highly liquid Diversified investment portfolio 34.4 bn (1) Financial Assets Customer deposits ◼ Investment strategy based on a diversified blend of EU government bonds, Customer loans Other liabilities supranational and agencies Due from Banks (2) Equity 23.7 ◼ 99% not ex
Slide 8: Focus on Bond portfolio
Focus on Bond portfolio Bond Portfolio (nominal value) € bn, eop 24.0 bn Bond portfolio Nominal value: 24.0 bn: 0.7 5.8 Italy ▪ o/w 70% at fixed rate, avg yield: 150 bps 7.0 Spain Other Govies (1) ▪ o/w 30% at floating rate (swapped), avg spread: 23 bps on 3m Eur (2) 4.2 SSA Residual maturity total
Slide 9: Agenda
Agenda ❑ Fineco overview ✓Fineco 1Q25 Results ❑ Solvency, liquidity, MREL and risks ❑ Next steps ❑ Annex 9
Slide 10: Executive Summary: further acceleration in our expected growth
Executive Summary: further acceleration in our expected growth Successful growth story: our diversified business model allows us to deliver strong results in every market condition Strong net profit and operating leverage Solid capital and liquidity position ◼ 1Q25 Net Profit is 164.2 mln, +11.7% y/
Slide 11: Delivering strong Net Profit in every market condition
Delivering strong Net Profit in every market condition Net Profit at 164.2 mln. Results supported by sound acceleration of Investing and Brokerage, confirming the effectiveness of our initiatives, and offsetting the decline of interest rates. Strong operating leverage confirmed 1Q25 mln 1Q24 1Q25 Re
Slide 12: Our priority: accelerating on Investing
Our priority: accelerating on Investing Growing AUM thanks to our best-in-class market positioning, coupled with higher efficiency on the value chain through FAM Increasing Investing revenues thanks to FAM Investing Revenues, mln Investing fees q/q decline linked to usual seasonality in the first pa
Slide 13: Combining growth potential from FAM and emerging advisory trend
Combining growth potential from FAM and emerging advisory trend FAM key to sustain AUM margins thanks to more efficient value chain, Fineco best placed to catch clients demand for efficient and fair solutions FAM consistently contributing to FBK net sales, with strong room to grow as a % of our Inve
Slide 14: Brokerage: a new structural growth under way
Brokerage: a new structural growth under way A clear step-up in our active investors: Fineco clearly the platform of choice for strong clients’ appetite in govies and ETFs Active investors: a new structural growth thanks to our initiatives and incoming govies/ETF demand traders active investors A st
Slide 15: High quality lending
High quality lending Offered exclusively to the existing base of clients, leveraging on our internal Big Data analytics Commercial Loans Portfolio, eop mln Cost of Risk on commercial loans (2) Current accounts/Overdraft (1) Cards Personal loans Mortgages 5 bps 5 bps 5 bps -2.8% Mar.24 Dec.24 Mar.25
Slide 16: Stepping-up our growth trajectory thanks to strong clients' acquisition
Stepping-up our growth trajectory thanks to strong clients’ acquisition Solid improvement in the quality our new clients, coupled with an unprecedented opportunity for our Investing Constantly raising the bar of our healthy new clients’ acquisition… Thd, # CAGR New clients (monthly avg) 1Q25: 55k ne
Slide 17: Clients' profile and focus on Private Banking
Clients’ profile and focus on Private Banking Outperforming the system in Private Banking growth € bn, TFA (1) FinecoBank +209.0% Italian Private Banking Association since 2016 +207.6% 68.4 68.7 +62.0% 48.8 56.0 45.3 33.4 38.6 884 932 1,037 994 1,101 1,257 22.2 25.9 25.8 776 806 778 2016 2017 2018 2
Slide 18: TFA and Net Sales evolution
TFA and Net Sales evolution Successful shift towards high added value products thanks to strong productivity of the network Breakdown of total TFA, bn Breakdown of total Net Sales, bn +14.7% AUM since the end of 2014: +177.2% 140.8 142.3 10.7 8.8 10.3 10.1 122.6 9.3 2.7 38% 38% 107.9 106.6 34% 3.6 4
Slide 19: Net sales organically driven key in our strategy of growth
Net sales organically driven key in our strategy of growth The structure of recruiting is changing: more interest in the quality of the business model by PFAs Total Net Sales, bn – Organic / Recruit, % Total recruits Organic Total recruits Organic New PFAs recruited in the year PFAs recruited over t
Slide 20: Agenda
Agenda ❑ Fineco overview ❑ Fineco 1Q25 results ✓Solvency, liquidity, MREL and risks ❑ Next steps ❑ Annex 20
Slide 21: Solvency, liquidity ratios
Solvency, liquidity ratios Capital position well above requirements Current Mar.24 Dec.24 Mar.25 (€/bn) Mar.24 Dec.24 Mar.25 Requirements (1) CET1 Ratio 25.29% 25.91% 24.10% 8.47% CET1 Capital 1.19 1.31 1.34 SOLVENCY (1) Total Capital Ratio 35.94% 35.78% 33.08% 12.84% Tier1 Capital 1.69 1.81 1.84 (1
Slide 22: Solid risk management framework, embedded in Fineco's DNA
Solid risk management framework, embedded in Fineco's DNA Sustainability and prudent risk-taking remain at the heart of Fineco's model. The institution’s strategic approach is oriented towards a robust business model characterized by a low-risk appetite to create sustainable profits and returns on t
Slide 23: Funding
Funding Fixed Income Senior Preferred instruments ➢ €300 mln Senior Preferred (6NC5) issued on February 16th, 2023 in order to ➢ €500 mln Senior Preferred (6NC5) issued on October 14th, 2021 in order to be have an additional buffer above the Fully Loaded MREL Requirement on LRE. immediately complian
Slide 24: AT1 Coupon payments underpin by solid profitability
AT1 Coupon payments underpin by solid profitability New dimension of growth reinforcing our solid profitability € mln ➢ Discretionary coupon payments on AT1 capital are subject to sufficient 2024 distributable items 939.3 ➢ As of 31st December 2024, Fineco distributable reserves (ADI) amounted to €8
Slide 25: Excellent capitalization
Excellent capitalization Strong capital ratios, leading to a high distance to the loss absorption trigger and to CET1 Capital Requirements Distance from CET1 to AT1 trigger Distance to Capital Requirements (1) % % 33.1 33.1 24.1 24.10 Distance to trigger AT1 trigger 20.2 22.7 1,126 mln 15.6 1,266 ml
Slide 26: Rating
Rating BBB rating by S&P with Neutral outlook S&P Outlook Neutral Long-term Issuer Rating BBB+ Long-term Bank Local Issuer Rating BBB+ Short-term Foreign Issuer Rating A-2 Short-term Local Issuer Credit A-2 S&P Global Ratings, 18 April 2025 26
Slide 27: Agenda
Agenda ❑ Fineco overview ❑ Fineco 9M24 results ❑ Solvency, liquidity, MREL and risks ✓Next steps ❑ Annex 27
Slide 28: 2025 Guidance
2025 Guidance Our diversified business model key to successfully deal with the current volatile environment Costs and provisions Revenues ➢ OPERATING COSTS: expected growth of around 6% y/y in FY25, not including few millions of additional costs for growth initiatives in a range 5/10 mln (mainly: De
Slide 29: Innovation and Simplification Project
Innovation and Simplification Project Further simplifying clients’ user experience thank to easy-to-use new tools and a more efficient marketing engine BROKERAGE INVESTING BANKING ✓Further evolution of FinecoX ✓Fineco Asset Management building up COMING on its ETF strategy: after the launch of the ✓
Slide 30: Annex
Annex 30
Slide 31: P&L condensed
P&L condensed P&L condensed(1) mln 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 Net financial income 180.8 182.5 177.6 170.3 711.2 161.3 o/w Net Interest Income 179.0 182.5 178.5 170.4 710.5 161.2 o/w Profit from treasury management 1.8 0.0 -1.0 -0.1 0.7 0.1 Dividends 0.0 0.0 0.0 0.0 0.0 0.0 Net commissions 128.6
Slide 32: 1Q25 P&L FinecoBank and Fineco Asset Management
1Q25 P&L FinecoBank and Fineco Asset Management Fineco Asset FinecoBank FinecoBank mln Management Individual Consolidated Net financial income 0.2 161.2 161.3 Dividends 0.0 0.0 0.0 Net commissions 44.0 96.4 140.4 Trading profit 0.0 27.4 27.3 Other expenses/income -0.4 0.7 0.2 Total revenues 43.7 285
Slide 33: Details on Net Interest Income
Details on Net Interest Income Volumes & Volumes & Volumes & Volumes & Volumes & Volumes & mln 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 Margins Margins Margins Margins Margins Margins Financial Investments 109.6 24,695 113.9 25,177 113.0 25,281 112.0 26,102 448.4 25,314 106.7 26,768 Net Margin 1.78% 1.82% 1.78
Slide 34: Details on Net Commissions
Details on Net Commissions Net commissions by product area mln 4Q23 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 Banking 13.2 12.0 12.0 13.5 12.9 50.4 11.1 Brokerage 27.0 33.0 28.9 24.7 29.6 116.1 37.1 o/w Equity 17.3 23.2 20.8 19.0 24.2 87.1 28.5 Bond 5.6 6.2 4.4 1.9 2.4 14.9 5.8 Derivatives 2.5 2.8 2.8 2.7 2.9 1
Slide 35: Revenues breakdown by Product Area
Revenues breakdown by Product Area mln 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 Net financial income 171.5 172.2 167.6 160.2 671.5 151.9 o/w Net interest income 169.8 172.2 168.6 160.3 670.8 151.8 o/w Profit from Treasury Management 1.8 0.0 -1.0 -0.1 0.7 0.1 Net commissions 12.0 12.0 13.5 12.9 50.4 11.1 Tradin
Slide 36: Breakdown Total Financial Assets
Breakdown Total Financial Assets mln Mar.24 Jun.24 Sep.24 Dec.24 Mar.25 AUM 60,425 61,645 63,808 66,383 66,295 Funds and Sicav 40,708 41,557 43,557 45,645 45,596 Insurance 13,579 13,242 12,982 12,944 12,744 AUC under advisory 5,756 6,423 6,832 7,360 7,500 Other 383 422 437 433 455 AUC 40,082 42,053
Slide 37: Increasing quality and productivity of the Network
Increasing quality and productivity of the Network Total Assets per PFA TFA concentration per PFA Eop, mln AUM AUC Deposits PFAs with TFA >20mln are 67% and hold 92% of TFA +10.1% +69 +7.6% 111.5bn 100 122.7bn 100 2,969 3,039 3,038 40.6 40.4 37.5 > €35mln +7.3% €25-35mln 40% 43% 67% y/y 22.0 21.7 €2
Slide 38: Balance Sheet
Balance Sheet mln Mar.24 Jun.24 Sep.24 Dec.24 Mar.25 (1) Due from Banks 3,808 3,222 3,293 2,334 2,188 Customer Loans 6,098 6,116 6,051 6,236 6,132 Financial Assets 20,426 20,750 21,532 23,454 23,734 Tangible and Intangible Assets 266 266 265 271 269 Derivatives 705 738 563 527 510 Tax credit acquire
Slide 39: Leverage Ratio comfortably under control
Leverage Ratio comfortably under control Leverage Ratio Sensitivity: multi-year view Delta Retained earnings = Tier 1 Capital (mln) 0 150 300 400 450 500 550 600 650 -2,000 5.97% 6.39% 6.68% 6.82% 6.96% 7.10% 7.24% 7.37% OUR PRIORITIES -1,500 5.88% 6.30% 6.58% 6.71% 6.85% 6.99% 7.13% 7.27% Starting
Slide 40: Fineco Asset Management in a nutshell
Fineco Asset Management in a nutshell FAM is active on 7 business lines, providing not only the expertise of the best Asset Managers but also solutions managed internally by FAM to deepen further the range of strategies and the flexibility of FAM catalogue of products. 1 GLOBAL DEFENCE 2 PROFILE FUN
Slide 41: Preserving our best price/quality ratio
Preserving our best price/quality ratio Competitive landscape(1) € Online € 113 avg € 155 avg Branch online costs branch costs Ing (Conto Arancio Più) 0 Webank 24 Fineco 40 Illimity (Conto Illimity Classic) 46 Banca Sella (Conto Start) 62 161 HelloBank! (Hello! Money) 73 CreditAgricole (conto Credit
Slide 42: ESG ratings, Indices and highlights
ESG ratings, Indices and highlights Our ESG ratings and Indices RATING AGENCY EVALUATION SCALE AS TODAY ESG INDICES (From 0 to 100) 68 (From D- to A) B (upgraded from previous C)(1) (From 100 to 0) 12.1 Low risk (From 0 to 100) 59 Robust S&P Global 1200 ESG index S&P Global LargeMidCap ESG (From 0 t
Slide 43: Achievements and commitments towards Net-Zero emissions by 2050
Achievements and commitments towards Net-Zero emissions by 2050 RESPONSIBLE FINANCE - Scope 3 emissions from internal investment portfolio 2021 2024 2026 2030 2050 Exposure in countries, institutions and banks: > 70% of 2021 Total Consolidated Assets % exposure in debt securities of sovereign and ba
Slide 44: Long term sustainability at the heart of Fineco business model
Long term sustainability at the heart of Fineco business model We are a looking-forward organization playing for the long-run and able to generate a positive impact for all our stakeholders and the society as a whole Fineco corporate purpose: “to support customers in taking a responsible approach to
Slide 45: Fineco as a profitable FinTech Bank: ICT a key business driver
Fineco as a profitable FinTech Bank: ICT a key business driver Leveraging on a deep-rooted internal know-how to expand platform scalability and operating gearing HYPERAUTOMATION COST EFFICIENCY DATA DRIVEN OMNICHANNEL Our strong emphasis on Ensuring our vast data Through comprehensive Blending RPA,