Slide 1: Fineco: 3Q14 Results
Fineco: 3Q14 Results Alessandro Foti, CEO Milan, 7 November 2014
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, p
Slide 3: Executive Summary
Executive Summary 3Q14 Net profit at 35.4mln (+52.9% y/y, -4.2% q/q); 36.4mln (+57.2% y/y, -9.2% q/q) excluding non recurring items: IPO-related costs and contribution to the Deposit Guarantee Fund Sep14 Net profit at 109.3mln (+37.6% y/y); 114mln (+43.3% y/y) excluding non recurring items. Adjusted
Slide 4: Agenda: Fineco Results
Agenda Fineco Results Focus on products 4
Slide 5: Results: Structural growth trend confirmed, overcoming 3Q seasonality
Results Structural growth trend confirmed, which overcomes the seasonality factor in 3Q Revenues, mln Net Profit, mln +18.4% +23.7% 331.0 non recurring items(1) +43.3% 279.5 -4.7% 113.8 112.0 106.7 4.5 86.3 +57.2% 79.4 -9.2% 3Q13 2Q14 3Q14 9M13 9M14 109.3 40.1 36.4 3.2 1.0 Operating Costs, mln 23.2
Slide 6: Revenues by P&L Items
Revenues by P&L Items Net interest and Fees and Commissions led solid and sustainable revenue growth. Quarterly performance affected by seasonality, but strongly higher than 3Q13 Net interest, mln Fees and Commissions, mln +25.7% +17.7% 172.4 142.9 36.8% +15.8% 137.2 121.4 -2.0% -7.1% 57.6 56.4 39.6
Slide 7: Net interest
Net interest 3Q NI affected by lower 1MEur and securities lending, partially compensated by higher volumes on sight deposits thanks to high quality banking platform Sight Deposits (mln) and net margins (bps) Securities lending (mln) and net margins (bps) +14.3% -24.2% +3.1% -24.7% 1,815 10,950 11,31
Slide 8: Costs
Costs New stock granting plans in place since 3Q14. Cost dynamics at a lower pace compared to revenues growth thanks to a strong operating leverage Staff Expenses, mln and FTE, # Stock granting plans 921 944 953 921 953 Staff expenses OAE +6.4% 3.3 Stock granting plans starting from +13.6% July 2014
Slide 9: Capital Ratios
Capital Ratios Low risk balance sheet coupled with a strong capital base: 19.76% CET1 transitional RWA, mln CET1 Ratio, % +9.6 +0.3 Credit Operational Market Floor 19.50% 19.76% 16.07% 12.25% 10.14% 2,581 -31.2% 2,517 725 805 Sept. 13 Dec. 13 Mar. 14 June 14 Sept. 14 1,968 -0.4% 1,738 1,731 17 31 CE
Slide 10: TFA
TFA Strong TFA growth with healthy net sales expansion TFA evolution (Dec.10-Oct.14), bn Cumulated performance, bn 48.1 1.4 Net Sales +10.6 bn 43.6 3.1 Market Effect +2.2 bn 1.3 39.8 2.5 2.5 35.2 2.8 -3.0 35.0 2.3 TFA Net sales Market TFA Net sales Market TFA Net sales Market TFA Net sales Market TF
Slide 11: TFA: High quality net sales and healthy AuM growth
TFA High quality net sales and healthy AuM growth focused on guided products and services Breakdown of TFA net sales, bn Breakdown of total TFA, % 39.8bn 43.6bn 48.2bn 48.1bn +23.5% +48.2% 2.8 3.1 42% 2.3 45% 47% 47% 2.5 23% 28% 1.9 32% 34% 1.6 2.2 2.3 2.4 27% 1.9 26% 25% 25% 1.4 1.0 0.8 0.4 0.4 -0.
Slide 12: Personal Financial Advisers (PFA) network – TFA Net sales
Personal Financial Advisers (PFA) network – TFA Net sales PFA network keeps on rising together with a sustainable growth of net sales. Positive trend of new recruitment confirmed as well PFA Network - TFA net sales, mln Net sales, mln - Organic/New Recruit of the year Net Sales (Organic) AuM AuC Dep
Slide 13: Agenda: Focus on products
Agenda Fineco Results Focus on products 13
Slide 14: Revenues by Product Area
Revenues by Product Area Despite quarterly seasonality banking and investing further confirmed the positive trend. Brokerage mainly affected by lower markets volatility Banking, mln 48.6% +49.1% 159.9 +43.6% 107.3 -1.6% 53.8 52.9 36.9 3Q13 2Q14 3Q14 9M13 9M14 Brokerage, mln 25.6% Investing, mln 25.8
Slide 15: Banking
Banking Excellent performance in 9M14 mainly driven by volume growth, investment policy and sustainable new clients acquisition Revenues, mln Direct deposits eop (mln) Net interest Net trading Net fees Other +49.1% -1.1% +8.8% 159.9 13,731 13,584 13,584 12,482 12,482 107.3 3Q13 2Q14 3Q14 Sep.13 Sep.
Slide 16: Brokerage
Brokerage Core Revenues continue to grow y/y excluding NI (mainly security lending). Fineco #1 online broker in Europe by executed orders Revenues, mln Volatility Index - Ftse Mib October 2014: best month of the last 3 yrs Net interest Net trading for Brokerage Net fees Other +9.2% 97.6 Core revenue
Slide 17: Investing
Investing Strong revenue growth led by further increase in AuM and accelerating trend in guided products and services with higher profitability Revenues, mln AuM eop (bn) Net fees +20.2% Other +4.6% +15.9% 21.6 22.6 84.9 18.8 19.5 20.3 18.0 18.1 73.3 Mar.13 June13 Sep.13 Dec.13 Mar.14 June14 Sep.14
Slide 18: Annex
Annex GES) 18 THE NEW BANK
Slide 19: P&L
P&L mln 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 9M13 9M14 Net interest income 48.4 47.5 41.3 43.1 58.3 57.6 56.4 137.2 172.4 Net commissions 41.2 40.6 39.6 45.4 47.7 49.3 45.8 121.4 142.9 Trading profit 9.0 6.8 6.1 6.4 7.1 5.8 6.5 21.9 19.4 Other 0.6 -0.9 -0.6 -4.0 -0.8 -0.8 -2.1 -0.9 -3.6 Total revenues
Slide 20: Details on Net Interest Income
Details on Net Interest Income Volumes Volumes Volumes Volumes Volumes Volumes Volumes Volumes Volumes mln 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 9M13 9M14 & Margins & Margins & Margins & Margins & Margins & Margins & Margins & Margins & Margins Sight Deposits 34.0 9,634 34.3 9,717 34.2 10,208 36.9 10,5
Slide 21: UniCredit bonds underwritten
UniCredit bonds underwritten Before 2014 Currency Amount (€ m) Maturity Indexation Spread 1 IT0004307861 Euro 600.0 29.12.2017 Euribor 1m 0.51% April 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 IT0005010258 Euro 382.5 27.07.2017
Slide 22: Details on Net Commissions
Details on Net Commissions mln 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 9M13 9M14 Brokerage 17.0 15.5 13.5 16.6 21.0 18.7 15.2 46.0 54.8 o/w Equity 15.0 12.7 11.0 13.4 18.1 15.0 11.8 38.6 44.9 Bond 2.3 2.6 1.3 2.4 2.2 2.8 1.6 6.2 6.6 Derivatives 2.3 2.3 2.0 2.0 2.3 1.9 2.4 6.6 6.5 Other commissions* -2.5
Slide 23: Focus on New Stock Granting Plans
Focus on New Stock Granting Plans Plans Beneficiaries Main triggers Payment 2014 P&L estimates Plans for Fineco "key people"1 CEO and other Business performance and linked to 50% cash Up to 4,220k c.€3-3.5m identified staff Company’s/Group long term sustainability in 2015-17 new shares to (Staff exp
Slide 24: Revenue breakdown by Product Area
Revenue breakdown by Product Area mln 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 9M13 9M14 Net interest income 34.6 34.3 35.6 37.8 52.1 52.1 51.3 104.4 155.5 Net commissions 0.2 0.6 1.1 1.3 0.6 1.3 1.1 1.9 3.0 Trading profit 0.6 0.6 0.6 0.7 0.8 0.7 0.8 1.8 2.3 Other -0.3 -0.2 -0.4 -0.3 -0.3 -0.2 -0.3 -0.9 -
Slide 25: Breakdown TFA
Breakdown TFA mln March 13 June 13 Sept. 13 Dec. 13 March 14 June 14 Sept. 14 Oct. 14 AUM 18,044 18,053 18,772 19,538 20,281 21,563 22,563 22,612 o/w Funds and Sicav 16,171 16,243 16,945 17,691 18,413 19,579 20,414 20,376 o/w Insurance 1,725 1,688 1,737 1,805 1,854 1,968 2,134 2,222 o/w GPM 148 122
Slide 26: Balance Sheet
Balance Sheet mln March 13 June 13 Sept. 13 Dec. 13 March 14 June 14 Sept. 14 Due from Banks 17,230 17,008 16,305 16,331 17,085 13,476 13,613 Customer Loans 551 561 550 641 669 696 700 Financial Assets 108 108 98 98 102 1,726 1,722 Tangible and Intangible Assets 106 106 107 108 108 109 109 Derivativ
Slide 27: Main Financial Ratios
Main Financial Ratios March 13 June 13 Sept. 13 Dec. 13 March 14 June 14 Sept. 14 PFA TFA/ PFA (mln) 14.3 14.1 14.4 14.8 15.3 15.7 16.0 AuM / TFA 44% 44% 45% 45% 44% 46% 47% Revenues per TFA (bps) 98.2 95.7 90.9 88.8 100.7 98.8 96.2 Adjusted Cost / income Ratio 51.7% 51.3% 51.0% 50.8% 44.7% 44.6% 45