Results at June 30th, 2020 approved
OUTSTANDING INDUSTRIAL RESULTS IN THE FIRST HALF OF THE YEAR
THE STRENGTH OF OUR BUSINESS MODEL IS CONFIRMED
OUR FINTECH DNA ALLOWS US TO CATCH THE FURTHER ACCELERATION OF
STRUCTURAL TRENDS IN PLACE
- Strong growth in net profit1 thanks to the diversified business
model: €181.0 million (+30.1% y/y)- Gross operating profits1: €274.8 million (+40.2% a/a)
- Revenues1: €407.0 million (+25.8% y/y)
- Operating costs: 132.2 million (+3.7% y/y)
- Cost/income ratio1 declining to 32.5% (-6.9 p.p. y/y)
- Solid capital position: CET1 at 24.12% (pro-forma2 at 18.36%)
- Dividend: Fineco aligning to ECB and Bank of Italy recommendation
Milano, July 31st, 2020
The Board of Directors of FinecoBank S.p.A. has approved the results as of June 30th, 2020. Alessandro Foti, CEO and General Manager of FinecoBank, stated:
"The excellent results recorded in the first half of 2020 confirm Fineco's ability to grow in every market phase. In a complex context, all business areas have achieved positive results taking advantage of digitalization boost. Thanks to technological support our personal advisors have been able to keep the relationship with customers even in difficult times, and the net sales results confirm their ability to meet the need of a more professional management of their savings. At the same time, the boost of brokerage reflects the value and the efficiency of our platform which allows the access to a wider base of customers, focused on the medium- long term horizon. Fineco's business model and the constant commitment in sustainability, especially as for
-
Figures net of non-recurring items recorded in the first half of 2020: -€1.2 million gross (-€0.8 million net) valuation related to the Voluntary Scheme fair value.
Non-recurring items recorded in the first half of 2019: -€4.3 million gross (-€2.9 million net) valuation related to the Voluntary Scheme fair value in the second quarter of 2019; -€0.4 million gross (-€0.3 million net) valuation related to the Voluntary Scheme fair value in the first quarter of 2019. Patent Box: -€0.9 million in the first quarter of 2019; -€0.9 million in the second quarter of 2019. - Pro-formaCET1 includes the amount related to 2019 dividend payment of 32.0 €/cents per share suspended by the Board of Directors on April 6th, 2020
1
transparency and fairness towards customers represent the pillars of a continuous growth of the bank in the coming future".
1H20 HIGHLIGHTS
UPDATE INIZIATIVE
FINECOBANK
- Revenues1 at €407.0 million, +25.8% y/y led by Brokerage area (+107.0% y/y), thanks to the combined effect of the reshape of our product offer, the enlargement of the clients base, the increase of Fineco market share and the higher market volatility, and by Investing area (+5.4% a/a), thanks to the contribution of Fineco Asset Management and to the higher impact of Guided Products and Services. The Banking area performed positively (+4.4% a/a), supported by an increase in transactional liquidity and lending activity.
- Operating costs at €132.2 milioni, +3.7% y/y. Cost/Income ratio1 at 32.5%, down by 6.9 percentage points y/y confirming the Bank's operational efficiency.
- Net profit1 at €181.0 million, +30.1% y/y
- Fineco is continuously developing its UK offer. The success of the first marketing campaign confirms how the one-stop-solutionoffered by the Bank is very well welcomed. In the following months we will continue to further widen our investing offer.
- The process of reshape of the brokerage offer is continuing with the launch of new products and services (Asian markets, CFD, new release of the platform PowerDesk)
- Activities continued to develop Fineco Asset Management which, also thanks to the recent launch of FAM Target Boost decumulation funds and the FAM Global Defence fund, has confirmed its increasing capacity to promptly and effectively respond to customer needs
TOTAL FINANCIAL ASSETS AND NET SALES
Total Financial Assets (TFA) at June 30th, 2020 amounted to €82.6 billion, up 8.9% compared to June 2019. Stock of Assets under Management was €40.1 billion, up 8.9% y/y, assets under custody amounted to €16.5 billion (+8.3% y/y), while the stock of direct deposits amounted to €26.1 billion (+9.4% y/y) thanks to the continuous growth in new customers and "transactional" deposits.
In particular, the TFA related to Private Banking customers, i.e. with assets above €500,000, totalled €33.0 billion, up by 10.2% y/y.
In the first half of 2020, inflows totalled €4.7 billion (+42.4% y/y), again proving to be solid, of high quality and gathered without short-term commercial incentives. The asset mix shifted positively towards asset under management, standing at €1.6 billion in the period (+13.1% y/y), highlighting a more cautious approach by clients who are favouring more conservative products. Inflows in asset under custody stood at €2.6 billion in the period, confirming clients' increased interest towards financial markets through Fineco brokerage platform, while direct deposits flows totalled €569 million.
2
Since the start of the year, inflows into "Guided products & services" reached €1.7 billion, confirming customer appreciation.
The ratio of Guided Products compared to total AuM rose to 72% compared to 69% in June2019.
On June 30th, 2020 the network was composed of 2,569 personal financial advisors operating across the country through 399 Fineco Centers. Inflows in the first six months of the year through the PFA network were €4.1 billion.
As at June 30th, 2020, Fineco Asset Management managed €14.2 billion of assets, of which €8.9 billion were retail class (+32.3% y/y) and around €5.3 billion institutional class (+3.9% y/y).
In the first half of 2020, about 45,600 new customers were acquired. Confirming the strong focus on the quality of clients, total financial assets related to new current account are on average 42% higher compared to the ones acquired in the first 11 months of 2019, before the announcement of the smart repricing on banking services. The total number of customers as at June 30th, 2020 was approximately 1,359,260 (+3.1% y/y).
MAIN INCOME STATEMENT RESULTS AT 30.06.2020
Figures and variations in this section are shown net of non-recurring items1
mln | 1Q19 | 2Q19 | 1H19 | 1Q20 | 2Q20 | 1H20 | 1H20/ | 2Q20/ | 2Q20/ | ||||
Adj. (1) | Adj. (2) | Adj. | Adj. (1) | Adj. (2) | Adj. | 1H19 | 2Q19 | 1Q20 | |||||
Net interest income | 70.4 | 71.4 | 141.8 | 68.2 | 70.1 | 138.2 | -2.5% | -1.9% | 2.8% | ||||
Net commissions | 77.4 | 81.3 | 158.6 | 105.0 | 104.8 | 209.7 | 32.2% | 28.9% | -0.2% | ||||
Trading profit | 10.3 | 12.3 | 22.6 | 27.6 | 30.1 | 57.7 | 155.2% | 143.8% | 9.1% | ||||
Other expenses/income | 0.2 | 0.3 | 0.5 | 0.6 | 0.8 | 1.4 | n.s. | 140.1% | 44.1% | ||||
Total revenues | 158.2 | 165.4 | 323.5 | 201.3 | 205.8 | 407.0 | 25.8% | 24.4% | 2.2% | ||||
Staff expenses | -21.7 | -22.4 | -44.1 | -24.0 | -24.9 | -48.9 | 10.9% | 10.9% | 3.7% | ||||
Other admin.expenses | -38.5 | -34.4 | -72.9 | -36.5 | -34.6 | -71.1 | -2.5% | 0.5% | -5.0% | ||||
Impairment/write-backs on intangible | -5.1 | -5.4 | -10.5 | -6.1 | -6.2 | -12.3 | 16.7% | 15.7% | 2.5% | ||||
and tangible assets | |||||||||||||
Operating expenses | -65.3 | -62.3 | -127.5 | -66.5 | -65.7 | -132.2 | 3.7% | 5.6% | -1.2% | ||||
Gross operating profit | 92.9 | 103.1 | 196.0 | 134.8 | 140.0 | 274.8 | 40.2% | 35.8% | 3.9% | ||||
Other charges and provisions | -1.0 | -2.9 | -3.8 | -1.1 | -6.5 | -7.6 | 99.0% | 127.9% | n.s. | ||||
LLP | -1.3 | 1.1 | -0.1 | -1.0 | -2.7 | -3.7 | n.s. | n.s. | 181.0% | ||||
Profit from investments | -0.7 | 6.5 | 5.8 | -0.1 | -3.7 | -3.8 | -165.8% | -157.7% | n.s. | ||||
Profit before taxes | 90.0 | 107.8 | 197.8 | 132.6 | 127.1 | 259.7 | 31.3% | 17.8% | -4.1% | ||||
Income taxes | -26.5 | -32.2 | -58.8 | -40.4 | -38.3 | -78.7 | 33.9% | 19.0% | -5.0% | ||||
Net profit adjusted | 63.5 | 75.6 | 139.1 | 92.2 | 88.7 | 181.0 | 30.1% | 17.4% | -3.8% | ||||
Revenues for the first half of 2020 totalled €407.0 million, up 25.8% compared to €323.5 million in the same period of the previous year, mainly thanks to the positive contribution of net commission and trading profit.
Net interest income stood at €138.2 million, down 2.5% from €141.8 million at June 30th, 2019, mainly due to the fall in market interest rates, with the positive contribution from volume effect, higher lending activity and a more dynamic Treasury management (revenues generated by Other Treasury activities have been recasted in the line). The average gross margin on interest-earning assets in the first half of 2020 was 1.06% compared to 1.26% in the same period of 2019.
3
Net commissions at June 30th, 2020 stood at €209.7 million, up 32.2% from €158.6 million at June 30th 2020. This increase is mainly due to the rise in net commissions in the Brokerage area (+100.2% y/y) thanks to the combined effect of the reshape of our product offer, the enlargement of the clients base, the increase of Fineco market share (Assosim market share on equity traded volumes at 28.0% as of June 30th, 2020, +1.4
- y/y) and the higher market volatility in the period. Investing area grew by 5.4% y/y thanks to Fineco Asset Management contribution and the higher impact of Guided Products and Services, while banking fees grew by 90.3% y/y.
Trading profit amounted to €57.7 million in the first half of 2020 (+155.2% y/y), mainly thanks to the contribution from the Brokerage area (€49.2 million, +172.4% y/y). Trading profit also includes the income components from financial instruments accounted under "Other financial instruments measured at fair value" which include the Visa INC class "C" preferred shares, whose fair-value measurements led to a positive result of €0.1 million in the first half of 2020 (+€1.2 million in 2Q20 and €-1.1 million in 1Q20; in the first half of 2019 the item was equal to +€1.9 million). It also includes profits coming from the sale of government bonds held in "Financial assets designated at fair value through other comprehensive income" and in "Financial assets at amortized cost" for a total value of €8.8 million (€5.0 million in 2Q20 and €3.8 million in 1Q20; in the first half of 2019 the item was equal to €2.8 million).
Operating costs in the first half of 2020 were well under control at €132.2 million, up 3.7% y/y mainly due to higher staff expenses. The cost/income ratio was equal to 32.5%, down by 6.9 percentage points y/y.
Staff expenses totalled €48.9 million (+10.9% y/y) mainly due to the increase in the number of employees, which rose to 1,244 as of June 30th, 2020 from 1,176 as of June 30th, 2019 also due to the gradual internalisation of some services following the exit from the UniCredit Group.
Gross operating profit came to €274.8 million, up by 40.2% y/y.
Other charges and provisions in the first half of 2020 totalled €-7.6 million, increasing by €-4.0 million due to higher provisions following the decision to refund to a cluster of clients the fees related to the smart repricing charged between February and June 2020, following the communication received by the Guarantor for Competition and the Market Authority (A.G.C.M.). Therefore, based on the discussions had with the Authority, the Bank, although fully confirming the correctness of its decisions, has considered appropriate to refund the cluster of customers related to the commercial practice in question.
Loan loss provisions amounted to €-3.7 million, increasing compared to the €-0.1 million recorded in the first half of 2019. After the health emergency caused by the spread of COVID-19 virus, in the second quarter the Banks has updated the macroeconomic scenario as required under IFRS9, leading to €-1.1 million of higher provisions, of which €-0.25 million related to commercial loans: a limited amount also thanks to the quality of the loan book of the Bank. The cost of risk is flat at 14 basis points.
Please note that in the first half of 2019 the Bank recorded an increase in write-backs partly due to the reduction in exposures with UniCredit and partly to their collateralization as per the Pledge Agreement agreed between FinecoBank and the UniCredit Group.
Profit on Investments amounted to €-3.8 million, after the aforementioned update of the macroeconomic scenario under IFRS9, which led to higher provisions towards the Bank's government and institutional exposures for an amount of €-3.6 million.
Please note that the €5.8 million recorded in the first half of 2019 benefitted from a write-back of approximately €6.5 million thanks to the collateralization of the exposure towards the UniCredit bonds due to the Pledge Agreement agreed between FinecoBank and the UniCredit Group.
4
Profit before taxes amounted to €259.7 million, up by 31.3% compared to €197.8 million in the first half of 2019.
Net profit for the period was equal to €181.0 million, up by 30.1% y/y.
MAIN INCOME STATEMENT RESULTS FOR THE SECOND QUARTER 2020
Revenues are equal to €205.8 million, up by 2.2% compared to the previous quarter and by 24.4% compared to the second quarter of 2019.
Net Interest Income in the second quarter is equal to €70.1 million, growing by 2.8% compared to the previous quarter thanks to the contribution of a more dynamic Treasury management and to the lower cost of funding due to the decrease of the Libor. Net interest income is down 1.9% compared to the second quarter of 2019 due to the fall in market interest rates.
The average gross margin on interest-earning assets in the second quarter of 2020 was 1.04% compared to 1.08% in the first quarter of 2020 and 1.25% in the second quarter of 2019.
Net commissions stood at €104.8 million, flat compared to the previous quarter and increasing by 28.9% y/y thanks to the contribution of all the business areas.
Trading profit is equal to €30.1 million, up by €2.5 million compared to the previous quarter and by €17.7 million y/y.
Operating costs in the second quarter of 2020 totalled €65.7 million, down by 1.2% compared to the previous quarter, affected by the seasonal nature of this item, mainly due to contributions paid for activities carried out by PFAs (Firr and Enasarco). Operating costs are up by 5.6% compared to the same quarter of the previous year, mainly due to higher staff expenses.
Operating profit was equal to €140.0 million, up by 3.9% q/q and 35.8% y/y.
Other charges and provisions in the second quarter of 2020 totalled €-6.5 million. Please note that in the quarter have been recorded €-4.0 million of higher provisions following the communication received by the Guarantor for Competition and the Market Authority (A.G.C.M.).
Loan loss provisions amounted to €-2.7 million, while the figure was equal to €-1.0 million in the first quarter of 2020 and €+1.1 million in the second quarter of 2019. Please note that in the first half of 2019 the Bank recorded an increase in write-backs partly due to the reduction in exposures with UniCredit and partly to their collateralization as per the Pledge Agreement agreed between FinecoBank and the UniCredit Group.
Profit on Investments amounted to €-3.7 million, compared to €-0.1 million in the first quarter of 2020 and €6.5 million in the second quarter of 2019, which benefitted from a write-back thanks to the collateralization of the exposure towards the UniCredit bonds due to the Pledge Agreement agreed between FinecoBank and the UniCredit Group.
Profit before taxes amounted to €127.1 million, decreasing by 4.1% compared to the previous quarter and increasing by 17.8% y/y.
5
Net profit in the period amounted to €88.7 million, decreasing compared to the €92.2 million of the previous quarter and increasing by 17.4% y/y.
LOANS TO CUSTOMERS
Loans to customers at June 30th, 2020 totalled €4,204 million, up by 12.4% compared to March 31st, 2020 and by 14.3% compared to December 31st, 2019.
The amount of non-performing loans (loans with insolvent borrowers, unlikely to pay and non-performing loans/past due) net of impairment totalled €4.7 million (€3.6 million at March 31st, 2020 and December 31st, 2019), with an 82.8% coverage ratio. The ratio between the amount of non-performing loans and total loans to ordinary customers came to 0.12% (0.11% at March 31st, 2020 and December 31st, 2019).
SHAREHOLDERS' EQUITY AND CAPITAL RATIOS
Consolidated shareholders' equity came to €1,558 million and includes the profit for 2019 which was €288.4 million; it was up €81 million mainly due to the net profit of the second quarter of 2020.
Consolidated shareholders' equity is up by €78.6 million compared to March 31st, 2020 and by €173.2 million compared to December 31st, 2019, mainly due to the profit respectively in the second quarter 2020 and first half 2020, net of the coupon payment of Fineco AT1 instruments in the second quarter 2020 (€-9.9 million, net of tax).
The Bank confirms its solid capital position with a CET1 ratio of 24.12% as of June 30th, 2020 (including the amount of the 2019 dividend suspended by the Board of Directors on April 6th, 2020), compared to 24.19% as of 31 December 2019 pro-forma. The pro-forma figure as of June 30th, 2020 is 18.36% (calculated excluding the amount of the aforementioned 2019 dividend from CET1 Capital) compared to 18.12% reported in the 2019 Financial Statements approved by the Board of Directors on February 11th, 2020.
The Tier 1 ratio and the Total Capital Ratio were equal to 38.88% as of June 30th, 2020 (33,12% of June 30th, 2020 pro-forma) compared to 39.73% as of December 31st, 2019 pro-forma (33,67 % reported in the 2019 Financial Statements approved by the Board of Directors on February 11th, 2020).
The leverage ratio was 4.41% in June 2020 compared to 4.54% pro-forma in December 2019. The pro-forma figure was 3.76% in June 2020 compared to 3.85% reported in the 2019 Financial Statements approved by the Board of Directors on February 11th, 2020.
BANK OF ITALY RECOMMENDATION ON DIVIDEND
In accordance with the reference regulations, guidance from the regulators and established best practice, the Board of Directors decided on April 6th, 2020 to suspend the proposal regarding the distribution to shareholders of a dividend equal to 0.32 euro per share, totaling 195,052,000 euro, on the agenda of the Ordinary Shareholders' Meeting convened for April 28th, 2020, and resolved to propose the allocation to reserves of net profit for the financial year 2019 to the same Shareholders' Meeting. The Shareholders' Meeting convened on April 28th, 2020 has approved the proposal.
On July 28th, 2020 the European Central Bank and Bank of Italy (referring to less significant banks) have renewed until January 1st, 2021 the recommendation to not pay the dividends for the financial years 2019 and 2020 (including the distribution of reserves), to not undertake any irrevocable commitment to pay dividends for the same periods and to refrain from share buy-backs aimed at remunerating shareholders. FinecoBank confirms it will comply with the abovementioned recommendation, refraining from proposing the dividend distribution and from convening the relative Shareholders' Meeting, and therefore will not
6
undertake any irrevocable commitment to pay the dividends for the financial years 2019 and 2020 until January 1st, 2021.
SIGNIFICANT EVENTS IN Q2 2020 AND SUBSEQUENT EVENTS
No other significant events occurred after June 30th, 2020.
NEW INITIATIVES MONITORING
Fineco is continuously developing its UK offer. In the second quarter the Bank started its first marketing campaign, with its one-stop-solution offer very well welcomed. In the following months we will continue to futher widen our investing offer.
The reshape of the brokerage offering is continuing, after the recent launch of CFD and the enlargement of its multicurrency offering.
Lastly, activities continued to develop Fineco Asset Management which, also thanks to the recent launch of FAM Target Boost decumulation funds and the FAM Global Defence fund, has confirmed its increasing capacity to promptly and effectively respond to customer needs.
7
CONSOLIDATED BALANCE SHEET
(Amounts in €thousand)
Amounts as at | Changes | |||||
ASSETS | June 30, 2020 December 31, 2019 | Amounts | % | |||
Cash and cash balances | 909,802 | 754,386 | 155,416 | 56.1% | ||
Financial assets held for trading | 14,591 | 7,933 | 6,658 | 62.5% | ||
Loans and receivables with banks | 723,189 | 566,033 | 157,156 | 10.5% | ||
Loans and receivables with customers | 4,204,291 | 3,679,829 | 524,462 | 1.7% | ||
Financial investments | 22,946,524 | 22,304,892 | 641,632 | 4.9% | ||
Hedging instruments | 75,577 | 64,939 | 10,638 | 17.7% | ||
Property, plant and equipment | 153,685 | 152,048 | 1,637 | 0.6% | ||
Goodwill | 89,602 | 89,602 | - | - | ||
Other intangible assets | 36,592 | 37,492 | (900) | -1.2% | ||
Tax assets | 4,186 | 23,444 | (19,258) | -85.9% | ||
Other assets | 254,169 | 342,309 | (88,140) | -40.9% | ||
Total assets | 29,412,208 | 28,022,907 | 1,389,301 | 5.3% | ||
(Amounts in €thousand) | ||||||
Amounts as at | Changes | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | June 30, 2020 December 31, 2019 | Amounts | % | |||
Deposits from banks | 113,137 | 154,653 | (41,516) | -26.8% | ||
Deposits from customers | 27,021,199 | 25,919,858 | 1,101,341 | 4.2% | ||
Financial liabilities held for trading | 8,209 | 3,777 | 4,432 | 117.3% | ||
Hedging instruments | 207,116 | 94,950 | 112,166 | 118.1% | ||
Tax liabilities | 62,928 | 11,437 | 51,491 | 450.2% | ||
Other liabilities | 443,965 | 455,748 | (11,783) | -2.6% | ||
Shareholders' equity | 1,555,654 | 1,382,484 | 173,170 | 12.5% | ||
- capital and reserves | 1,373,995 | 1,093,117 | 280,878 | 25.7% | ||
- revaluation reserves | 1,485 | 1,002 | 483 | 48.2% | ||
- net profit | 180,174 | 288,365 | (108,191) | -37.5% | ||
Total liabilities and Shareholders' equity | 29,412,208 | 28,022,907 | 1,389,301 | 5.0% |
8
CONDENSED BALANCE SHEET- QUARTERLY FIGURES
(Amounts in €thousand)
June 30, 2019 | September 30, 2019 | December 31, 2019 | March 31, 2020 | June 30, 2020 | |
ASSETS | |||||
Cash and cash balances | 1,230,599 | 1,208,686 | 754,386 | 1,177,380 | 909,802 |
Financial assets held for trading | 7,475 | 10,592 | 7,933 | 12,888 | 14,591 |
Loans and receivables with banks | 710,347 | 824,635 | 566,033 | 625,247 | 723,189 |
Loans and receivables with customers | 3,408,661 | 3,567,804 | 3,679,829 | 3,741,000 | 4,204,291 |
Financial investments | 19,912,177 | 21,521,272 | 22,304,892 | 23,400,694 | 22,946,524 |
Hedging instruments | 49,365 | 71,941 | 64,939 | 76,454 | 75,577 |
Property, plant and equipment | 143,801 | 148,644 | 152,048 | 152,973 | 153,685 |
Goodwill | 89,602 | 89,602 | 89,602 | 89,602 | 89,602 |
Other intangible assets | 8,760 | 8,760 | 37,492 | 37,053 | 36,592 |
Tax assets | 3,498 | 7,688 | 23,444 | 3,300 | 4,186 |
Other assets | 270,368 | 300,341 | 342,309 | 202,426 | 254,169 |
Total assets | 25,834,653 | 27,759,965 | 28,022,907 | 29,519,017 | 29,412,208 |
(Amounts in €thousand) | |||||
June 30, 2019 | September 30, 2019 | December 31, 2019 | March 31, 2020 | June 30, 2020 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Deposits from banks | 206,643 | 188,171 | 154,653 | 330,927 | 113,137 |
Deposits from customers | 24,139,699 | 25,428,742 | 25,919,858 | 27,202,155 | 27,021,199 |
Financial liabilities held for trading | 2,413 | 4,734 | 3,777 | 11,039 | 8,209 |
Hedging instruments | 84,086 | 156,435 | 94,950 | 143,500 | 207,116 |
Tax liabilities | 64,779 | 50,929 | 11,437 | 32,254 | 62,928 |
Other liabilities | 409,355 | 642,227 | 455,748 | 322,068 | 443,965 |
Shareholders' equity | 927,678 | 1,288,727 | 1,382,484 | 1,477,074 | 1,555,654 |
- capital and reserves | 800,766 | 1,100,134 | 1,093,117 | 1,382,491 | 1,373,995 |
- revaluation reserves | (7,202) | (6,566) | 1,002 | 3,152 | 1,485 |
- net profit | 134,114 | 195,159 | 288,365 | 91,431 | 180,174 |
Total liabilities and Shareholders' equity | 25,834,653 | 27,759,965 | 28,022,907 | 29,519,017 | 29,412,208 |
9
CONSOLIDATED INCOME STATEMENT
(Amounts in €thousand)
2Q 20 | 2Q 19 | Changes | ||
Am ounts | % | |||
Net interest | 138,229 | 141,767 | (3,538) | -2.5% |
Net fee and commission income | 209,739 | 158,643 | 51,096 | 32.2% |
Net trading, hedging and fair value income | 56,482 | 17,837 | 38,645 | 216.7% |
Net other expenses/income | 1,392 | 537 | 855 | 159.2% |
OPERATING INCOME | 405,842 | 318,784 | 87,058 | 27.3% |
Staff expenses | (48,893) | (44,097) | (4,796) | 10.9% |
Other administrative expenses | (123,338) | (123,742) | 404 | -0.3% |
Recovery of expenses | 52,263 | 50,817 | 1,446 | 2.8% |
Impairment/write-backs on intangible and tangible assets | (12,268) | (10,510) | (1,758) | 16.7% |
Operating costs | (132,236) | (127,532) | (4,704) | 3.7% |
OPERATING PROFIT (LOSS) | 273,606 | 191,252 | 82,354 | 43.1% |
commitments | (3,670) | (146) | (3,524) | 2413.7% |
NET OPERATING PROFIT (LOSS) | 269,936 | 191,106 | 78,830 | 41.2% |
Other charges and provisions | (7,636) | (3,836) | (3,800) | 99.1% |
Net income from investments | (3,818) | 5,805 | (9,623) | -165.8% |
PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS | 258,482 | 193,075 | 65,407 | 33.9% |
Income tax for the year | (78,308) | (58,961) | (19,347) | 32.8% |
OPERATIONS | 180,174 | 134,114 | 46,060 | 34.3% |
PROFIT (LOSS) FOR THE PERIOD | 180,174 | 134,114 | 46,060 | 34.3% |
10
CONSOLIDATED INCOME STATEMENT - QUARTERLY FIGURES
(Amounts in €thousand)
Year | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | ||
2019 | 2019 | 2019 | 2019 | 2019 | 2020 | 2020 | ||
Net interest | 281,277 | 70,366 | 71,401 | 69,806 | 69,704 | 68,164 | 70,065 | |
Net fee and commission income | 325,171 | 77,361 | 81,282 | 84,253 | 82,275 | 104,954 | 104,785 | |
Net trading, hedging and fair value income | 44,761 | 9,811 | 8,026 | 11,601 | 15,323 | 26,394 | 30,088 | |
Net other expenses/income | 3,608 | 196 | 341 | 147 | 2,924 | 570 | 822 | |
OPERATING INCOME | 654,817 | 157,734 | 161,050 | 165,807 | 170,226 | 200,082 | 205,760 | |
Staff expenses | (90,152) | (21,653) | (22,444) | (22,497) | (23,558) | (24,007) | (24,886) | |
Other administrative expenses | (240,638) | (65,073) | (58,669) | (56,019) | (60,877) | (60,257) | (63,081) | |
Recovery of expenses | 104,068 | 26,590 | 24,227 | 26,669 | 26,582 | 23,807 | 28,456 | |
Impairment/write-backs on intangible and tangible assets | (22,864) | (5,144) | (5,366) | (5,783) | (6,571) | (6,058) | (6,210) | |
Operating costs | (249,586) | (65,280) | (62,252) | (57,630) | (64,424) | (66,515) | (65,721) | |
OPERATING PROFIT (LOSS) | 405,231 | 92,454 | 98,798 | 108,177 | 105,802 | 133,567 | 140,039 | |
commitments | (1,970) | (1,270) | 1,124 | (1,227) | (597) | (963) | (2,707) | |
NET OPERATING PROFIT (LOSS) | 403,261 | 91,184 | 99,922 | 106,950 | 105,205 | 132,604 | 137,332 | |
Other charges and provisions | (27,152) | (980) | (2,856) | (19,780) | (3,536) | (1,124) | (6,512) | |
Integration costs | - | (2) | 2 | - | - | - | - | |
Net income from investments | 7,377 | (658) | 6,463 | 450 | 1,122 | (89) | (3,729) | |
PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS | 383,486 | 89,544 | 103,531 | 87,620 | 102,791 | 131,391 | 127,091 | |
Income tax for the year | (95,121) | (27,272) | (31,689) | (26,575) | (9,585) | (39,960) | (38,348) | |
OPERATIONS | 288,365 | 62,272 | 71,842 | 61,045 | 93,206 | 91,431 | 88,743 | |
PROFIT (LOSS) FOR THE PERIOD | 288,365 | 62,272 | 71,842 | 61,045 | 93,206 | 91,431 | 88,743 |
Starting from June 30th, 2020, revenues resulting from the Other Treasury activities are now accounted within the line "Net Interest" of the reclassified income statement. The activity, which started in 2020, generated €74,000 of revenues in the first quarter, which have been reclassified.
11
DISCLAIMER
This Press Release 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, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of FinecoBank S.p.A. (the "Company"). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward- looking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Press Release are provided as at the present date and are subject to change without notice. Neither this Press Release nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision.
The information, statements and opinions contained in this Press Release are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the "Other Countries"), and there will be no public offer of any such securities in the United States. This Press Release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries.
Declaration of Financial Reporting Officer
The undersigned Lorena Pelliciari, as Nominated Official in charge of drawing up Company Accounts of FinecoBank S.p.A.,
DECLARES
as prescribed by Article 154(a), second paragraph of the "Testo Unico della Finanza" (the "Single Financial Services Act") that the information disclosed in this document corresponds to the documentary records, ledgers and accounting data.
Milan, 31 July 2020
The Nominated Official in charge of drawing up
the Company's Accounts
12
FinecoBank
FinecoBank is one of the most important FinTech banks in Europe. Listed on the FTSE MIB, Fineco offers a business model that is unique in Europe, combining the best platforms with a large network of financial advisors. It offers a single account with banking, trading and investment services, on transactional and advisory platforms developed with proprietary technologies. Fineco is a leading bank in brokerage in Europe, and one of the most important players in Private Banking in Italy, offering advanced and tailor-made advisory services. Since 2017, FinecoBank has also been in the UK with an offer focused on brokerage, banking and investment services. Fineco Asset Management was founded in Dublin in 2018, with a mission to develop investment solutions in partnership with top international asset managers
Contact info: | |
Fineco - Media Relations | Fineco - Investor Relations |
Tel.: +39 02 2887 2256 | Tel. +39 02 2887 3736/2358 |
mediarelations@finecobank.com | investors@finecobank.com |
Barabino & Partners | |
Tel. +39 02 72023535 | |
Emma Ascani | |
e.ascani@barabino.it | |
+39 335 390 334 |
13
Attachments
- Original document
- Permalink
Disclaimer
Finecobank S.p.A. published this content on 31 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2020 11:16:04 UTC