BANCA GENERALI S.P.A. Investor Presentation
1H23 RESULTS
27 July 2023
To be the No. 1 private bank, unique by
value of service, innovation and sustainability
1H 2023 Financial Results
Balance Sheet & Capital Ratios
Net Inflows, Assets and Recruiting
Business Update and Closing Remarks
Annex
1H 2023 RESULTS: EXECUTIVE SUMMARY
1H 2023 results delivered record achievements for key business targets:
- Record high level for client assets: €88.2bn (+9% YoY)
- Record productivity for existing network: €2.9bn (+16% YoY)
- Best interim results ever for recurring net profit: €166.1m (+54% YoY)
Even in a challenging environment, quality of net inflows remains high:
- Sound net inflows in fee-generating assets: €1.6bn (+33% YoY)
- Growing success of in-house funds and financial wrappers (+€0.7bn, +46% YoY)
- Tactical growth in AUC with the key contribution from short-term bonds (€3.2bn, +€2.7bn YoY)
At the midpoint of 2022-2024 strategic plan, results are in line with or above targets:
- Consistent growth - cumulated net inflows: €9.0bn (vs. mid-term target range €9-11bn)
- Profitable growth - recurring net profit: 47% above upper-end of 2022-2024 CAGR target
- Remunerative growth - cumulative DPS1: €4.2 p.s. approved (plus €1.2 accrued YTD)
3 NOTE: 1) Cumulative DPS 2022-2024 (Cash view)
NET PROFIT
RECORD GROWTH DRIVEN BY RECURRING COMPONENT
Net Profit | 131.3 | 175.1 | 68.3 | 63.0 | 83.1 | 92.0 |
€m | ||||||
High quality 1H 2023 net
profit growth at €175.1 million (+33% YoY)
Recurring Net Profit1 | |||
+54% | |||
€m | 166.1 | ||
107.9 |
+63%
+16%
77.0 89.1
53.2 54.7
Strong 1H 2023 recurring component at €166.1m (+54% YoY) thanks to a buoyant NII contribution, well diversified recurring fees and effective
1H22 | 1H23 | 1Q22 | 2Q22 | 1Q23 | 2Q23 |
Variable Net Profit
operating leverage amid inflationary environment
Soft 1H 2023 variable
net profit at €9.0m (-62%
€m | 23.4 |
9.0
15.1
8.3 6.1 2.9
YoY) amid unfavorable YoY comparison and challenging financial markets
1H22 | 1H23 | 1Q22 | 2Q22 | 1Q23 | 2Q23 |
4 NOTE: 1) Recurring net profit computed net of variable fees, trading gains and one-offs
NET FINANCIAL INCOME
NII PUSHED TO NEW HIGHS ON ONGOING ASSET REPRICING
Net Financial Income (NFI) €m
161.3 | +114% | |||||||||||||||||||||||||||||
+139% | ||||||||||||||||||||||||||||||
9.8 | ||||||||||||||||||||||||||||||
+15% | ||||||||||||||||||||||||||||||
67.5 | 74.9 | 86.4 | ||||||||||||||||||||||||||||
151.5 | 5.9 | |||||||||||||||||||||||||||||
+192% | 27.2 | 4.0 | ||||||||||||||||||||||||||||
15.7 | 40.3 | 80.5 | ||||||||||||||||||||||||||||
71.0 | ||||||||||||||||||||||||||||||
11.0 | ||||||||||||||||||||||||||||||
51.8 | 4.6 | |||||||||||||||||||||||||||||
22.5 | 29.3 | |||||||||||||||||||||||||||||
1H22 | 1H23 | 1Q22 | 2Q22 | 1Q23 | 2Q23 | |||||||||||||||||||||||||
Net Interest Income (NII) | Trading gains | |||||||||||||||||||||||||||||
Total NFI Yield1 | 0.88% | 2.10% | 0.72% | 1.04% | 1.93% | 2.29% | ||||||||||||||||||||||||
1H 2023 NFI up to €161.3m
(+139% YoY) fully exploiting tailwinds from higher interest rates
1H 2023 NII (+192% YoY)
for the sharp increase in NIM (1.98%, +130bps YoY) amid steady asset repricing coupled with limited change in cost of funding
1H 2023 trading gains
(-37% YoY) with solid contribution in absolute value despite unfavorable YoY comparison
Total NIM1 | 0.68% | 1.98% | 0.60% | 0.75% | 1.82% | 2.13% |
5 NOTE: 1) Net NII yield calculated on average Interest-bearing Assets/Liabilities
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Disclaimer
Banca Generali S.p.A. published this content on 27 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2023 11:02:18 UTC.
