BANCA GENERALI S.P.A. 
By
PRESS RELEASE
CONTACTS:
www.bancagenerali.com
Media Relations
Michele Seghizzi
Tel. +39 02 6076 5683 michele.seghizzi@bancagenerali.it
Investor Relations
Giuliana Pagliari
Tel: +39 02 6076 5548 giuliana.pagliari@bancagenerali.it
Quarterly results NET PROFIT AT €105.1 MILLION (+8%)- Increase in management fees: +17% to €217
million, thanks to the growth in AUM
- Increase in gross recurring profitability to 163 bps
(+14 bps compared to last year)
SHARP GROWTH IN AUM AND NET INFLOWS- Total net inflows YTD at €2.0 billion (€160 million
in October)
- Total net inflows in managed products YTD at
€2.27 billion (€194 million in October)
- Total AUM at €28.2 billion (+10%)
Milan, 5 November 2013 - The Board of Directors of Banca Generali, chaired by Paolo Vagnone, approved the consolidated results for the first nine months of 2013.
The CEO of Banca Generali, Piermario Motta, commented: "We are very satisfied with the ongoing growth of our Bank, which beside driving us towards new peak results also highlights our highly effective business model. In the third quarter, we grew not only in terms of profitability but also of capital solidity, as a result of constantly improving net inflows and a significant business development, driven by recurring business rather than extraordinary finance. In the reporting period, our team was also reinforced by the addition of expert professionals and highly skilled managers who will help us lead the Bank towards even more ambitious milestones. Against this background, though acknowledging the variables of market uncertainty and volatility, we look towards the final part of the year and the challenges of 2014 with enthusiasm and determination."
Consolidated P&L results at 30 September 2013
The financial statements at 30 September 2013 reported a consolidated net profit of €105.1 million (+7.8%), thus recording a further significant increase compared to +90% for the first nine months of the previous year. The result shows a significant rise in recurring income items, particularly management fees, which benefited from the effective optimization of the asset mix of customer portfolios launched in 2012. Particularly worthy of notice is the focus on containment
1 / 11
PRESS RELEASE
CONTACTS:
www.bancagenerali.com
Media Relations
Michele Seghizzi
Tel. +39 02 6076 5683 michele.seghizzi@bancagenerali.it
Investor Relations
Giuliana Pagliari
Tel: +39 02 6076 5548 giuliana.pagliari@bancagenerali.it
of the operating cost base, which grew only by 3% in the year against a sharp growth in business.
Net banking income was €274.9 million, up 7.1% on the level reached in the same period of the previous year (excluding institutional management activities of Generali Fund Management "ex- GIL"1, net banking income was €269.1 million). The revenue increase was driven by the excellent sales results, which exceeded expectations thus enabling the Bank to reach its yearly objectives
earlier than expected in terms of volumes, net inflows mix and total assets. This figure is even more significant when compared to the same item at the end of September 2012, which, as known, had benefited from a particularly high level of performance fees.
Net interest income greatly contributed to overall revenues, increasing by 15% to €92.3 million, driven by the acceleration of ordinary activities (€64.8 million, +27%). The result was influenced by the sound profitability of the Bank's securities portfolio (2.70%), the development of volumes and counter-guaranteed loans. The profile of the securities portfolio continues to be defensive and prudent, and is 99% composed by bonds with maturity of 2.2 and duration of 1.7.
The contribution linked to the company's participation in the financing operations (LTROs) promoted by the ECB decreased, following the maturity of the first tranche of €300 million in October, and the early repayment in early June of the €200 million tranche, which was to mature in December 2014.
Total gross commissions rose by 10.8% to €319.9 million (€295.2 million, +10.5% ex-GIL), thanks to the sharp growth in recurring items. The latter amounted to €265.8 million (+19% ex- GIL) and accounted for 90% of total gross commissions, thus contributing to further increase revenue sustainability. Among recurring items, a significant contribution came from management fees (€217.1 million, +17% ex-GIL), which benefitted from AUM growth and net inflows from managed asset products over the past 12 months.
The rise in recurring commissions largely offset the 31% decrease in performance fees to €29.4
million, compared to €42.9 million for the same period of the previous year.
Operating expenses increased slightly to €114.3 million (€112.2 million, +3.0% ex-GIL), in line with the expectations for the current year, confirming the traditional disciplined control of these items.
Consolidated net equity was €414.0 million (up compared to €345.1 million for the first nine months of 2012 and €394.8 million at the end of 2012). Capital ratios increased by over two percentage points YTD, both in terms of Tier 1 Capital Ratio (14.1% from 11.8% at year-end
2012) and Total Capital Ratio (15.1% from 13.0% at year-end 2012). Excess capital rose 36%
YTD to €144 million.
1 GIL refers to institutional business of Generali Fund Management.
2 / 11
PRESS RELEASE
CONTACTS:
www.bancagenerali.com
Media Relations
Michele Seghizzi
Tel. +39 02 6076 5683 michele.seghizzi@bancagenerali.it
Investor Relations
Giuliana Pagliari
Tel: +39 02 6076 5548 giuliana.pagliari@bancagenerali.it
Consolidated P&L Results for Q3 2013
Banca Generali's consolidated net profit for the third quarter increased by 11.1% to €33.5 million
compared to the same period of 2012.
Net banking income rose by 3.2% to €81.9 million (€80.3 million, +3.4% - ex-GIL), mainly thanks to the increase in management fees and trading results.
Operating expenses declined slightly in absolute value to €38.5 million, -0.5% (€37.7 million, -
0.7% ex-GIL), whereas operating result grew by 6.7% to €43.5 million (€42.6 million, +7.2% ex- GIL), and pre-tax result rose 10.8% to €45.7 million (€44.8 million, +11.4% - ex-GIL).
Net Inflows and Assets Under Management (AUM)
In October, Banca Generali reported net inflows of €160 million. Customers' demand for asset management products continued, bringing the amount of new inflows for such products to €194 million in October. Market trends are shifting customers' attention towards managed solutions (funds, SICAVs and insurance products), which offer greater diversification and a choice among financial instruments and asset range compared to administered products.
Banca Generali's net inflows YTD reached €2.0 billion, and the managed component amounted to
€2.27 billion. Net inflows of funds/SICAVs stood out among overall net inflows, recording the highest result ever at €1,289 million. Net inflows were mainly related to flexible in-house and third- party (bond and equity) products, as is traditional within our open architecture model.
Insurance products also continued to be in high demand, thereby confirming the high level of attention received in recent years.
Managed and administered assets grew by 7.7% YTD to €28.2 billion (+10% compared to
€25.5 billion for the previous year). This marked a new peak result in the Bank's history based on the current consolidation area (i.e. excluding institutional activities).
In detail: managed assets increased to €20.4 billion (+16% compared to the previous year) and accounted for 72% of total assets, compared to 69% for the same period of the previous year. The increase was driven by the excellent result of funds/SICAVs, with a 25% AUM growth to €8.0 billion over 12 months, accounting for 28% of total assets.
Administered assets slightly decreased to €7.8 billion (from €7.9 billion for the third quarter of
2012), given the growing customers' interest in the managed product solutions offered by the Bank and aimed at diversifying portfolios and grasping the investment opportunities offered by international markets.
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PRESS RELEASE
Business Outlook
The prospects for a recovery that are emerging at a global level and the policies of Central Banks are favourable to the Bank that can exploit its expertise on international financial markets and offer a wide range of investment solutions.
The quality of our financial advisors, who are at the top of the Assoreti rankings by average per capita portfolio and productivity, is a distinctive feature of Banca Generali, as is the breadth of our product range. This mix of factors is increasingly acting as a strong catalyst of both customer demand and the recruitment of highly experienced professionals, with a total of 67 new resources recruited since the beginning of the year, with further growth expected by year-end.
In the coming months, we will draw on the contribution provided by the recent addition of several highly skilled managers with excellent reputations in the industry who are working to accelerate the development of advanced advisory services and the launch of new products in order to strengthen the Company's competitive edge. The next few months thus appear highly promising for Banca Generali, which is striving to set an ever-higher standard for the Italian financial
industry.
* * *
Furthermore, the Board of Directors verified the compliance with the statutory requirements of the newly appointed director Philippe Donnet. The Board also found that the above-mentioned director does not meet the independence requirements pursuant to Article 148, paragraph 3, of Legislative Decree 58/1998 and Article 37, paragraph 1, letter d) of Consob Regulation No.
16191/97. Nonetheless, the majority (six out of ten) of the members of the Company's board of directors meet independence requirements.
Presentation to the Financial Community
A conference call for the financial community will be held today, at 2:00 pm (1:00 pm GMT) to analyse the results for the first nine months of 2013.
To attend the conference call please dial one of the following numbers:
from Italy: +39 02 805 88 11;
from the United Kingdom +44 121 281 8003;
from the USA +1 718 705 8794 / +1 855 2656959 (toll-free)
CONTACTS:
www.bancagenerali.com
Media Relations
Michele Seghizzi
Tel. +39 02 6076 5683 michele.seghizzi@bancagenerali.it
Investor Relations
Giuliana Pagliari
Tel: +39 02 6076 5548 giuliana.pagliari@bancagenerali.it
* * *
The Manager responsible for preparing the company's financial reports (Stefano Grassi) declares, pursuant to Paragraph 2 of Art. 154-bis of the Italian Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the documentary results, books and accounting records.
Stefano Grassi (CFO of Banca Generali)
* * *
Annexes:
1) Banca Generali - Consolidated Profit and Loss Statement at 30 September 2013
2) Banca Generali - Consolidated Profit and Loss Statement at 30 September 2013 (ex-GIL)
3) Banca Generali - Consolidated Profit and Loss Statement for Q3 2013
4) Banca Generali - Consolidated Profit and Loss Statement for Q3 2013 (ex-GIL)
5) Banca Generali - Reclassified Consolidated Balance Sheet at 30 September 2013
6) Total AUM at 30 September 2013
7) Net Inflows and Life New Business for October 2013
* * *
4 / 11
PRESS RELEASE
CONTACTS:
www.bancagenerali.com
Media Relations
Michele Seghizzi
Tel. +39 02 6076 5683 michele.seghizzi@bancagenerali.it
Investor Relations
Giuliana Pagliari
Tel: +39 02 6076 5548 giuliana.pagliari@bancagenerali.it
1) BANCA GENERALI - CONSOLIDATED PROFIT AND LOSS STATEMENT AT 30 SEPTEMBER 20135 / 11
PRESS RELEASE
CONTACTS:
www.bancagenerali.com
Media Relations
Michele Seghizzi
Tel. +39 02 6076 5683 michele.seghizzi@bancagenerali.it
Investor Relations
Giuliana Pagliari
Tel: +39 02 6076 5548 giuliana.pagliari@bancagenerali.it
2) BANCA GENERALI - CONSOLIDATED PROFIT AND LOSS STATEMENT AT 30 SEPTEMBER 2013 (EX-GIL) 2(€ mil.) | 9M12 (adjusted) | 9M13 (adjusted) | % Chg |
Net Interest Income C ommission income C ommission expense Net Commission Net income (loss) from trading activities Dividends Net income (loss) from trading activities and Dividends Net Banking Income | 80.4 267.1 -105.2 161.9 8.4 0.7 | 92.3 295.2 -129.7 165.5 10.4 0.9 | 14.9% 10.5% 23.3% 2.2% 24.2% 24.9% |
Net Interest Income C ommission income C ommission expense Net Commission Net income (loss) from trading activities Dividends Net income (loss) from trading activities and Dividends Net Banking Income | 9.1 251.3 | 11.3 269.1 | 24.2% 7.1% |
Staff expenses Other general and administrative expense Depreciation and amortisation Other net operating income (expense) Net Operating Expenses | -50.6 -68.3 | -51.3 -77.6 | 1.4% 13.7% |
Staff expenses Other general and administrative expense Depreciation and amortisation Other net operating income (expense) Net Operating Expenses | -118.8 -3.4 13.3 -108.9 | -128.9 -3.7 20.4 -112.2 | 8.5% 9.0% 53.2% 3.0% |
Operating Profit | 142.5 | 156.9 | 10.1% |
Net adjustments for impair.loans and other assets Net provisions for liabilities and contingencies Profit Before Taxation Direct income taxes Income/(losses) after tax on assets held for sales Minorities interest | -2.2 -15.3 124.9 -27.7 0.3 0.0 | -1.9 -18.8 136.3 -31.2 0.0 0.0 | -15.2% 22.4% 9.1% 12.4% -100.0% -100.0% |
Net Profit | 97.5 | 105.1 | 7.8% |
Cost /Income Ratio EBITDA Tax rate | 42.0% 145.8 22.2% | 40.3% 160.6 22.9% | -1.7 p.p. 10.1% 0.7 p.p. |
2 Data have been reclassified excluding GFM's institutional business.
6 / 11
PRESS RELEASE
CONTACTS:
www.bancagenerali.com
Media Relations
Michele Seghizzi
Tel. +39 02 6076 5683 michele.seghizzi@bancagenerali.it
Investor Relations
Giuliana Pagliari
Tel: +39 02 6076 5548 giuliana.pagliari@bancagenerali.it
3) BANCA GENERALI - CONSOLIDATED PROFIT AND LOSS STATEMENT FOR Q3 20137 / 11
PRESS RELEASE
CONTACTS:
www.bancagenerali.com
Media Relations
Michele Seghizzi
Tel. +39 02 6076 5683 michele.seghizzi@bancagenerali.it
Investor Relations
Giuliana Pagliari
Tel: +39 02 6076 5548 giuliana.pagliari@bancagenerali.it
4) BANCA GENERALI - CONSOLIDATED PROFIT AND LOSS STATEMENT FOR Q3 2013 (EX-GIL3)(€ mil.) | 3 Q 12 (adjusted) | 3 Q 13 (adjusted) | % Chg |
Net Interest Income C ommission income C ommission expense Net Commission Net income (loss) from trading activities Dividends Net income (loss) from trading activities and Dividends Net Banking Income | 29.1 87.1 -38.1 49.0 -0.4 0.0 | 28.7 94.5 -47.9 46.5 5.0 0.1 | -1.5% 8.5% 25.7% -4.9% -1240.6% 70.2% |
Net Interest Income C ommission income C ommission expense Net Commission Net income (loss) from trading activities Dividends Net income (loss) from trading activities and Dividends Net Banking Income | -0.4 77.7 | 5.0 80.3 | -1337.3% 3.4% |
Staff expenses Other general and administrative expense Depreciation and amortisation Other net operating income (expense) Net Operating Expenses | -16.8 -24.2 | -16.9 -25.6 | 0.7% 5.6% |
Staff expenses Other general and administrative expense Depreciation and amortisation Other net operating income (expense) Net Operating Expenses | -41.0 -1.1 4.2 -38.0 | -42.5 -1.3 6.1 -37.7 | 3.6% 11.9% 44.6% -0.7% |
Operating Profit | 39.7 | 42.6 | 7.2% |
Net adjustments for impair.loans and other assets Net provisions for liabilities and contingencies Profit Before Taxation Direct income taxes Minorities interest | 1.5 -1.0 40.2 -10.1 0.0 | -0.4 2.6 44.8 -11.3 0.0 | -129.1% -357.2% 11.4% 12.3% -100.0% |
Net Profit | 30.1 | 33.5 | 11.1% |
Cost /Income Ratio EBITDA Tax rate | 47.4% 40.8 25.0% | 45.4% 43.8 25.2% | -2 p.p. 7.3% 0.2 p.p. |
3 Data have been reclassified excluding GFM's institutional business.
8 / 11
PRESS RELEASE
CONTACTS:
www.bancagenerali.com
Media Relations
Michele Seghizzi
Tel. +39 02 6076 5683
5) BANCA GENERALI - RECLASSIFIED CONSOLIDATED BALANCE SHEET AT 30 SEPTEMBER 2013 (€M)(€ m illions )
As s e ts Se pt 30, 2013 De c 31, 2012 Change % Change
Financial assets held f or trading 30.3 222.5 -192.3 -86.4% Financial assets available f or sale 1,569.7 1,733.9 -164.2 -9.5% Financial assets held to maturity 2,516.4 3,000.3 -483.9 -16.1% Loans to banks 450.3 843.4 -393.1 -46.6% Loans to customers 1,427.9 1,308.6 119.3 9.1% Property equipment and intangible assets 48.8 51.8 -2.9 -5.7% Tax receivables 40.2 41.3 -1.1 -2.7% Other assets 102.7 115.6 -13.0 -11.2% Assets held f or sales 0.0 0.0 0.0
Total As s e ts 6,186.2 7,317.4 -1,131.1 -15.5%
Liabilitie s and Share holde rs ' Equity Se pt 30, 2013 De c 31, 2012 Change % Change
Due to banks 2,178.8 2,229.9 -51.1 -2.3% Direct inf low s 3,327.0 4,491.2 -1,164.1 -25.9% Financial liabilities held f or trading 0.4 1.4 -1.1 -72.9% Tax payables 25.4 36.6 -11.2 -30.6%
Liabilities linked to assets held f or sales 0.0 0.0 0.0
Other liabilities 167.8 95.0 72.8 76.6% Special purpose provisions 72.7 68.4 4.3 6.3% Valuation reserves -11.8 -11.5 -0.3 2.8% Reserves 164.2 139.8 24.3 17.4% Additional paid-in capital 34.9 16.6 18.3 110.4% Share capital 114.7 112.9 1.7 1.5% Treasury shares (-) 0.0 0.0 0.0 0.0% Shareholders' equity attributable to minority interest 7.1 7.2 -0.1 -1.5% Net income (loss) f or the period (+/-) 105.1 129.8 -24.7 -19.1%
Total Liabilitie s and Share holde rs ' Equity 6,186.2 7,317.4 -1,131.1 -15.5%
michele.seghizzi@bancagenerali.it
Investor Relations
Giuliana Pagliari
Tel: +39 02 6076 5548 giuliana.pagliari@bancagenerali.it
9 / 11
PRESS RELEASE
CONTACTS:
www.bancagenerali.com
Media Relations
Michele Seghizzi
Tel. +39 02 6076 5683 michele.seghizzi@bancagenerali.it
Investor Relations
Giuliana Pagliari
Tel: +39 02 6076 5548 giuliana.pagliari@bancagenerali.it
6) TOTAL AUM AT 30 SEPTEMBER 2013Billion of Euros Sep 2013 Jun 2013 Abs. Chg
Mutual Funds 8.03 7.70 0.33
Asset Management 3.15 3.12 0.03
of which: Securities 5.57 5.54 0.03
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PRESS RELEASE
Million of Euros Ott 2013 Sep 2013 Abs. Chg
Mutual Funds 67 2 65
Asset Management -2 -2 0
Mutual Funds and Managed Portfolio 65 0 65
Life Insurance 129 135 -6
Managed Assets 194 135 59
Non Managed Assets -34 -13 -21
of which: Securities 52 -119 171
Total 160 122 38
Jan-Ott 2013 Jan-Ott 2012 Abs. Chg
Mutual Funds 1,289 267 1,022
Asset Management 71 59 12
Mutual Funds and Managed Portfolio 1,360 326 1,034
Life Insurance 910 914 -4
Managed Assets 2,270 1,240 1,030
Non Managed Assets -264 223 -487
of which: Securities -323 -18 -305
Total 2,006 1,463 543
CONTACTS:
Life New Business
Ott 2013 Se p 2013 Abs. Chg
www.bancagenerali.com
Media Relations
Michele Seghizzi
Tel. +39 02 6076 5683 michele.seghizzi@bancagenerali.it
Investor Relations
Giuliana Pagliari
Tel: +39 02 6076 5548 giuliana.pagliari@bancagenerali.it
Life New Business 428 146 282
Ja n-Ott 2013 Ja n-Ott 2012 Abs. Chg Life New Business 1,414 1,217 197
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