Annual results 2013 NET PROFIT: €141.3 MILLION (+9%)- Revenues rose to €367 million (+11%)
- Management commissions (€296 million, +18%)
- Cost/Income ratio decreased to 39.1%
- Total AUM at €29.1 billion (+11%)
PROPOSED DIVIDEND: €0.95 DPS (+6%) ENHANCED CAPITAL SOLIDITY:- Excess capital at €144 million (+36%)
- Tier ratio at 14.2% and total capital ratio at 14.8%
FEBRUARY NET INFLOWS: €301 MILLION; €527 MILLION (+28%) YTDMilan, 10 March 2014 - The Board of Directors of Banca Generali, chaired by Paolo Vagnone, approved the draft of the Parent and Consolidated Financial Statements for 2013. The Board of Directors also approved the Corporate Governance and Company Ownership Report, as part of the Report on Operations. The documents will be made available to the public in accordance with the terms established by law.
The CEO of Banca Generali, Piermario Motta, commented: "We are highly satisfied to be able to present, for the second consecutive year, constantly improving results across the line. The continuity and progress of our growth bear witness to the efficacy of our business model: the drive to innovation, the quality of services and the profile of our financial advisors are distinctive elements capable of catalysing talented resources and providing certainty to investors and shareholders. It is significant that recurring activities were the main driver of a growth that extends beyond profitability to include capital solidity indices as well. Turning to 2014, the year has gotten off to the best possible start with a marked acceleration of inflows, confirming our position amongst the most dynamic players in the asset management industry. It is in this context, and on this basis, that we look towards the challenges of the coming months with great confidence and renewed enthusiasm."
Banca Generali's Financial Statements at 31 December 2013 once again closed with a sharp growth of both results and indicators. Consolidated net profit grew by 9% to €141.3 million. This figure rose significantly, notwithstanding the impact of the €6.6 million extraordinary tax burden associated with the 8.5% IRES surtax introduced by the Legislative Decree No. 133/2013 at the end of November 2013. Net of the aforementioned fiscal effect, which impacted only the 2013 taxable profit, net profit was €147.9 million (+14%), thus further underlining the upward trend compared to the previous year, which had also risen by 77%.
The excellent performance was directly attributable to the outstanding result of net inflows, which achieved record levels in terms of both volumes and product mix, and the rise in AUMs, which exceeded €29 billion. These factors further boosted the revenues increase: net banking income improved by 11% to €375.1 million (€367.2 million, +11% excluding Generali Investment
Luxembourg "GIL" 2), in addition to the +39% result reported in 2012. The revenue increase was
mainly driven by all the Bank's business operations, and in particular recurring business
(management commissions and core interest margin).
Net interest income amounted to €121.8 million, marking a +9% increase driven by the decline in funding costs as a result of ECB's double reduction of rates during the reporting year and the growth in counter-guaranteed loans. The contribution linked to the participation of the Bank to the refinancing transactions promoted by the ECB in December 2011 and February 2012 (LTROs) decreased following the payment of a tranche amounting to €200 million in June.In 2013, the Bank's bond portfolio reported an average coupon profitability of 2.6% (3.3% in
2012), with maturity of 2.8 (1.8 at year-end 2012) and duration of 1.55 (1.3 at year-end 2012), and included senior bonds exclusively.Gross fees amounted to €438.9 million, up 14.1% compared to the previous year (€404.7 million,+13.8% ex-GIL). Recurring fees (management, underwriting and banking) accounted for 89% of the total (87% in 2012). In particular, management fees showed an extremely positive performance, amounting to €328.7 million for the year and with an annual increase of 17.4% (€296 million, +18% ex-GIL). Net fees rose by 9.5% to €234.3 million, (€226.4 million, +9.3% ex- GIL), with a slightly increased payout arising from the sharp growth of net inflows and the recruitment of new financial advisors throughout the year.
Operating expenses amounted to €151.2 million (€148.6 million, +4.9% ex-GIL). The increase continued to be moderate compared to the revenue performance and was, to a greater extent, attributable to the constant technological upgrade, investments on the realisation of the new advisory platform and the strengthening of the structure to support sales activities, in light of the marked growth of the past two years.
The operating result rose by 15.6% to €223.9 million (€218.6 million, +15.4% ex-GIL), showing a
60% growth in operating margin (+3pps). Net of non-recurring business, such as performance
1 Data at 31 December 2012 were restated in accordance with amendments to accounting standards (IAS 19- Employee Benefits) effective 6 June 2013.
2 GIL refers to the institutional business of Generali Fund Management.
fees and revenues from LTROs, operating margin was 48%, up by 6pps compared to 2012 (+7 pps ex-GIL), thus confirming the quality and sustainability of the results achieved.
Total assets of the Banca Generali Group at 31 December 2013 amounted to €6,603 million (-9.8% compared to the previous year). The decline was attributable to a reduction in the Parent Company's temporary treasury deposits.At the end of 2013, consolidated net equity amounted to €469.1 million (+18.8% compared to
€394.8 million at year-end 2012), Tier 1 Capital Ratio rose to 14.2% (11.8% at year-end 2012), and Total Capital Ratio to 14.8% (13.0% at year-end 2012). Excess capital at year-end 2013 was
€144 million, up 36% compared to the previous year.
Net Inflows and Assets under Management (AUM)
At the end of 2013, total AUM amounted to €29.1 billion, up 11% compared to €26.2 billion for
the previous year.
In detail, managed assets increased by 16% to €21.3 billion and accounted for 73% of total AUMs (70% for 2012). The increase was mainly attributable to the increase of funds and SICAVs, which rose 25% to €8.4 billion for the year, thanks to the strong demand of customers, who are increasingly interested in optimising their portfolios and exploiting diversification opportunities offered by international markets.

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