(Alliance News) - Banca Generali Spa reported Thursday that it reported a 53 percent increase in net profit for 2023, to EUR326.1 million from EUR213.0 million a year earlier.

The figure is a record for the company and higher than the growth forecast in the three-year plan of between 10 percent and 15 percent.

Earnings growth was accompanied by further expansion in size-with total assets reaching EUR92.8 billion, up 12 percent, the highest value ever-and a further strengthening of the company's capital strength and liquidity profile, already well above regulatory requirements.

Net interest and other banking income rose 23% to EUR788.2 million from EUR639.8 million while net interest income more than doubled to EUR304.4 million from EUR145.0 million.

The Lion Bank's operating income rose to EUR511.5 million from EUR383.3 million while the pre-tax figure improved to EUR443.8 million from EUR330.2 million. Ebitda rose to EUR551.2 million from EUR420.0 million and the cost/income ratio improved to 35.1 percent from 40.1 percent at the end of 2022.

Banca Generali's board proposed a dividend of EUR2.15 versus EUR1.65 paid last year.

Total net inflows for 2023 amounted to EUR5.9 billion, up 3% from the previous year. The bank points out that 85 percent of inflows came from Banca Generali's existing advisor structure, "confirming its quality and proactivity in supporting the investment choices of both existing clients and acquiring new ones," the bank said.

As for January 2024, on the other hand, inflows amounted to EUR323 million highlighting an increase in assets under investment, the highest value-added component of the offering. This component reached EUR99 million, a marked improvement over the EUR7 million outflows realized in the previous year. The figure is in continuity with the dynamics of recent months, which saw a strong increase in demand for professional advice and a return of interest in diversifying investments into managed solutions.

Inflows in assets under investment benefited mainly from increased demand for financial containers of EUR57 million in the month and evolved advisory services on assets under administration of EUR105 million in the month. Inflows in traditional policies also remained positive at EUR26 million versus outflows of EUR142 million in the corresponding month last year.

Inflows in administered accounts in the month were down from last year's peaks, at EUR206 million account the EUR307 million in the previous year.

Going forward, the bank estimates a funding stream for the three-year period 2022-2024 of EUR18.0-22.0 billion, with recurring earnings CAGR of 10-15% and expected dividends of 70-80% on the recurring earnings portion and 50-100% on the variable earnings portion.

Banca Generali's stock is down 0.7% at EUR35.54 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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