Banca Generali S.p.a. · MIL:BGN
Banca Generali — 9M 2014 Earnings Presentation
32 slides from Banca Generali's earnings presentation, Nov 4, 2014
Slide 1: 9M 2014 Results and Business Update
9M 2014 Results and Business Update 4 November 2014
Slide 2: Today's Agenda
Today’s Agenda 9M 2014 Results Net Inflows, AUM and Recruiting Business Update Closing Remarks Banca Generali 9M 2014 Results and Business Update 2
Slide 3: Yet another excellent quarter
Yet another excellent quarter Steady net profit growth: +26% Net Profit • Growth driven by a sustained business 132.4 expansion with both net inflows (€3.1bn, 105.1 +67%) and assets (€33.6bn, +19%) at all-time highs +26% Strong 3Q management fees: +24% (€ m) • Sharp acceleration in quarterly run-rat
Slide 4: Net inflows and assets at all-time highs
Net inflows and assets at all-time highs Total Assets Strong growth in total net inflows … 33.6 3,085 28.2 1,846 1,362 +67% 891 755 +19% 9M10 9M11 9M12 9M13 9M14 (€ m) (€ bn) 9M13 9M14 … driven by managed products 2,914 2,076 • Strong increase in assets driven 1,013 984 by managed products (+23%) +4
Slide 5: Group 9M14 results: key takeaways
Group 9M14 results: key takeaways * * (€ m) 9M13 9M14 % Chg Total banking income up by 23% Net Interest Income 92.3 82.3 -10.9% driven by higher net fees and Gross fees 295.2 353.6 19.8% favorable trading conditions Fee expenses -129.7 -157.3 21.3% Net Fees 165.5 196.2 18.6% Gross fees up 20% driven
Slide 6: Booming assets feed into revenue growth
Booming assets feed into revenue growth Breakdown of total revenues 312.4 330.6 265.8 269.1 +18% +23% 92.3 82.3 29.4 41.2 52.1 11.3 -129.7 -157.3 (€ m) net interest recurring fees performance fee expenses trading & Total Revenues margin fees dividend 9M13 (lhs) – 9M14 (rhs) • Strong growth in total
Slide 7: Positive trend across fee-income revenues
Positive trend across fee-income revenues Breakdown of total gross fees Gross fees driven by management fees 353.6 +20% 41.2 • Double digit growth driven by the continued 295.2 asset base expansion 26.8 29.4 • Recurring fees (ex-performance fees) at 23.1 €312m (+18%) - represent 88% of total fees 26
Slide 8: Sharp acceleration in management fees
Sharp acceleration in management fees 3Q Management Management fees fees Quarterly run-rate for management fees increased sharply QoQ +€18.4m • Quarterly run-rate for management fees in 93.9 86.2 3Q14 at €93.9m (+9% qoq, twice the level of the last two years) 75.5 +24% +€7.7m • The QoQ acceleration
Slide 9: A cautious profile across NII components
A cautious profile across NII components Net Interest Income Defensive profile for bond portfolio • Broadly stable NII on a QoQ basis, thanks to decreasing funding costs and to the increasing 19.6 18.0 17.8 contribution from lending activity • Defensive investment stance for the Bank’s (€ m) 9.1 8.6
Slide 10: Secured lending growing importance
(€ m) Secured lending growing importance Loan Book (yoy) NPL/total loans to customers 2,858 (€ m) 2,327 7.1% 7.2% 1,564 1,299 4.0% 4.0% 4.3% 3.8% +20% 0.05% 9M13 9M14 Peer 1 Peer 2 Peer 3 Peer 4 Banca Peer 5 Peer 6 Generali Customer Loans Collateral Peers data at 30 June 2014 Customer Loan Book 2,85
Slide 11: Increased scale is driving cost ratio lower
Increased scale is driving cost ratio lower Operating expenses Operating leverage in place • Cost increase (+7%) is well below the increase +7.3% 120.3 in revenues (+23%) and assets i(+19%) 112.2 • Cost/income ratio down to 35.4% ( 40.3% in 9M13) 55.7 51.3 Staff costs • Costs were driven by: 1) vari
Slide 12: Profitability ratios at best practice levels
Profitability ratios at best practice levels AUM profitability Cost/Income ratio 1.90 1.86 80.9% 0.14 0.18 0.13 0.11 67.2% 0.33 0.24 62.5% 52.9% 58.6% 56.2% 49.4% 54.3% 47.5% 1.30 1.33 42.0% 40.3% 35.4% 9M13 9M14 9M09 9M10 9M11 9M12 9M13 9M14 Recurring fees NII Cost/Income ratio LTRO Performance fee
Slide 13: Solid capital ratios
Solid capital ratios Excess Capital Tier 1 Capital Ratio Total Capital Ratio 151.5 144.3 14.2% 14.8% 14.3% 13.9% 13.0% 11.8% 105.8 2012 2013 9M14 2012 2013 9M14 2012 2013 9M14 (€ m) • The slight decrease in the capital ratios (T1 and TC) is due to the impact of Basel 3 coupled with the expansion in
Slide 14: Today's Agenda
Today’s Agenda 9M 2014 Results Net Inflows, AUM and Recruiting Business Update Closing Remarks Banca Generali 9M 2014 Results and Business Update 14
Slide 15: A record year for net inflows
A record year for net inflows 2014 YTD net inflows 10M 14 net inflows split by products SICAVs/Mutual funds 164 546 Portfolio management +66% 114 BG Stile Libero 3,328 1,045 Traditional insurance ( LOB 1) 2,006 Banking products 1,459 Jan-Oct. 2013 Jan-Oct. 2014 Managed products at 95% of (€ m) (€ m)
Slide 16: BG Stile Libero delivers above average results
BG Stile Libero delivers above average results Established as the key tool for investment planning • Date of inception: 28 February, 2014 3,328 • Net inflows since inception €1.5bn (≈ 44% of tot. net inflows) BG Stile Libero: underlying assets Life segregated accounts 9% Life segregated accounts 1,4
Slide 17: Continued increase in managed assets (+23%)
Continued increase in managed assets (+23%) Total assets Managed vs. Banking products 33.6 +19% 28.2 9.5 25.1 20.4 (72%) +23% (75%) 8.0 3.6 1.2 (€ bn) 7.8 8.5 3.2 (28%) (25%) 9M13 9M14 10.8 9.2 banking products managed products 2.2 2.5 (€ bn) 6.0 Managed assets at 75% of total (+3pps 5.6 yoy) 9M13 9
Slide 18: Double-digit increase for SICAVs
Double-digit increase for SICAVs Lux-based SICAVs Asset split Lux-based Assets 8.0 +27% 6.8 +21% 1% 1% 5.6 6.3 11% 15% 2% 15% 6.0 6.8 5.2 55% 5.5 (€ m) ( €bn ) 0.4 0.8 Equity EM Flexible EM 1Q13 1Q14 Flexible funds Equity Global & Thematic 0.8 1.2 Equity DM Real assets 9M13 9M14 (Assets at 30 Septem
Slide 19: Recruiting: already above 2013 year-end levels
Recruiting: already above 2013 year-end levels YTD No. recruits 84 Jan-Oct. Related assets € 1.5bn 2014 Avg. portfolio/recruits € 17.5m No. of recruits per year Assets/recruits Recruiting sources 84 91% 17.5 81 17.4 9% 51 14.5 Avg. 2009- 2013 Jan-Oct. Avg. 2013 Jan-Oct. 12 14 2009-12 14 FA networks
Slide 20: Today's Agenda
Today’s Agenda 9M 2014 Results Net Inflows, AUM and Recruiting Business Update Closing Remarks Banca Generali 9M 2014 Results and Business Update 20
Slide 21: CSI deal completed
CSI deal completed Credit Suisse’s Italian business acquired (“CSI”) • Transaction completed on 31 October, 2014 • Deal approved by the Bank of Italy • Asset migration already completed Economics of the deal • Private Bankers: 51 • Total assets: ≈€1.9bn • Total acquisition consideration: €45m • Deal
Slide 22: A perfect fit for the existing business
A perfect fit for the existing business CSI operations - Assets/FA Geographical distribution Lombardy Assets: 17% North-East 10 PB Assets: 36% 38.3 37.3 19 PB 21.1 North-West Assets: 24% 8 PB BG Avg. CSI Centre Assets: 23% Market positioning 14 PB • Strengthening market share in the private banking
Slide 23: Room for increasing CSI profitability
Room for increasing CSI profitability Average Portfolio mix (PB only) Gross margin 21% 31% Significant room for 18% 8% improving profitability 23% 18% 4% 17% 34% 26% CSI CSI actual 2015 2016 Banking assets Multi-line, Unit-linked LOB1 insurance Portfolio mgmt Funds Acquisition expected to be accreti
Slide 24: Total Assets heading towards €35bn
Total Assets heading towards €35bn Total est. assets (€ bn) ≈ 35.0 35.3 1.9 29.2 3.0 0.65 2013 Jumbo recruitment 2014 organic net CSI 2014 YTD est. from Simgenia inflows assets Banca Generali 9M 2014 Results and Business Update 24
Slide 25: Further widening of the service offer
Further widening of the service offer Corporate finance advisory service New pwc provided through an exclusive Advisory platform agreement with pwc, a leading player in the SMID sector in Italy and worldwide Financial Assets Inheritance Property ) Investment advice on real-estate assets Client based
Slide 26: Corporate Finance Advisory
Corporate Finance Advisory Agreement with , a global brand with a focus on mid-caps and a capillary presence on the Italian market What it is not What it is Corporate lending M&A A new business Trading on corporate securities Corporate restructuring opportunity Treasury management Optimisation of fi
Slide 27: Ongoing efforts to enhance product offer
Ongoing efforts to enhance product offer APP Home banking Wider fund offer and Portfolio advisory • 40 fund managers, 800 funds available • New functions available (bank form on QRcode, • Recommended portfolio provided by six bancomat payment/withdrawal main fund managers • Better usability • Enhanc
Slide 28: Speeding up digital move
Speeding up digital move • FA personal web page (+ press), Personal device independent branding • QR code on business card • App Financial desk (+ extended press) • Digital signature Business tools • Portfolio creation and analysis • App for recruitment Novembre Personal • BG Personal Advisory Advis
Slide 29: Today's Agenda
Today’s Agenda 9M 2014 Results Net Inflows, AUM and Recruiting Business Update Closing Remarks Banca Generali 9M 2014 Results and Business Update 29
Slide 30: Closing remarks
Closing remarks Top-rated network Return to Customised shareholders advisory Long-term Sustainability customer of results relationship We aim to be the first choice for: Clients, Financial Advisors and Investors Banca Generali 9M 2014 Results and Business Update 30
Slide 31: Contact details
Contact details Banca Generali Investor App Investor Relations Contacts Giuliana Pagliari Investor Relations Officer Phone +39 02 6076 5548 Mobile +39 331 65 30 620 E-mail: giuliana.pagliari@bancagenerali.it E-mail: investor.relations@bancagenerali.it The Banca Generali Investor App has been designe
Slide 32: Disclaimer
Disclaimer The manager responsible for preparing the company’s financial reports (Stefano Grassi) 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 a