2Q23 Results

Alessandro Foti

CEO and General Manager

Milan, August 1st 2023



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Fineco Financial Results

  • Fineco Commercial Results
  • Next steps
  • Fineco international business
  • Key messages


Executive Summary

Successful growth story: becoming more a Platform than a Bank. Our diversified business model allows us to deliver strong results in every market condition

Strong net profit and operating leverage

  • 1H23 adj. Net Profit at 308.9mln, +38.8% y/y(1) (+63% y/y excluding 1H22 Profits from Treasury management)
  • 1H23 adj. Revenues at 600.7mln, +29.4% y/y(1) mainly supported by Net Financial Income (+86.1% y/y, o/w NII +158.5%) and Investing (+4.8% y/y). Brokerage confirmed a structurally higher floor vs pre-pandemic levels
  • Operating Costs well under control at -144.5mln, +6.2% y/y (+5.0% y/y excluding costs related to the acceleration of the growth of the business(2)). Strong operating leverage confirmed a key strength of the Bank. Adj. C/I ratio at 24.1%

Outstanding commercial dynamics driven by organic growth

Strong acceleration in new clients' acquisition (+25.2% y/y in 1H23), with no

change in our marketing strategy nor short term aggressive commercial offer

Net sales in 1H23 at 5.2 bn, o/w AUM at 1.9 bn. TFA at 115.9 bn with AuM at 55.8

bn. July estimate: Strong net sales at 0.5 bn, o/w Deposits at ~200 mln despite

higher taxes y/y (~+260 mln y/y), AUM at ~40 mln due to insurance outflows (~-

160mln), AUC at ~250 mln. Brokerage revenues estimated at ~14 mln (>35% vs

average July revenues in 2017-2019 y/y)

Leading PFA productivity vs peers thanks to organic growth



2022 non recurring items: 1Q22 -0.3 mln gross (-0.2 mln net) due to Voluntary Scheme


Excluding costs strictly related to the growth of the business, mainly FAM (-0.6 mln y/y) and marketing (-0.9 mln y/y)


Avg 12 months


Assumptions based on forward rate curve as of July 28th, 2023

Solid capital and liquidity position

  • CET1 ratio at 23.20%,TCR at 34.04%, Leverage ratio at 4.68%
  • LCR at 785%(3), NSFR at 384%

Guidance: strong growth confirmed

  • Expected Net Financial Income for FY23 confirmed at around +70% vs FY22(4)
  • Expected Investing revenues in FY23 confirmed to increase high single digit vs FY22 with higher after-taxmargins. ManFee margins after tax confirmed at ~55bps in FY24 (pre- tax ~73bps)
  • Brokerage guidance confirmed: revenues expected strong with a floor higher vs pre-Covid period
  • Operating costs expected in FY23 at +6% vs FY22, not including additional costs for: FAM strategic discontinuity (~2 mln) and additional marketing expenses (at least ~3 mln)
  • Cost of Risk: in a range 5/9 bps in 2023
  • Growing CET1 ratio and Leverage ratio

Delivering strong Net Profit in every market condition

Adj. Net Profit at 308.9mln, +38.8% y/y boosted by strong acceleration of Investing, confirming the effectiveness of our initiatives, and Net Financial Income. Strong operating leverage confirmed






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  • Strong growth in Net Financial Income (+86.1% y/y, with NII at +158.5% y/y) mainly thanks to our capital light NII (>70% ex. lending) driven by our clients' valuable transactional liquidity and not by lending (not affected by additional costs and provisions due to NPL)
  • Net commissions growing by +4.1% y/y driven by Investing (+4.8% y/y) and Banking (+14.5% y/y)
  • Trading profit excluding the effects from ineffectiveness of the hedging derivatives(3): -18.9% y/y mainly due to lower brokerage activity


The yearly increase is mainly linked to costs related to the growth of the business, related to:

  • FAM as it is increasing the efficiency of the value chain
  • Marketing expenses

Net of these items, 1H23(4): +5.0% y/y

Net profit

+63.0% y/y excluding 1H22 Profits from Treasury management


2022 non recurring items: 1H22 -0.3 mln gross (-0.2 mln net) due to Voluntary Scheme


Adj. Cost/Income and Adj. RoE calculated net of non recurring items. ROE is calculated as annualised adj.net profit divided by average book equity for the period (excl. valuation reserves)


The ineffectiveness of the hedging derivatives was equal to +11.7 mln in 1H22 and -5.1 mln in 1H23. The value depends on the application of accounting standards IFRS9, and is influenced both by the spread between the ESTR and the Euribor and by the


amount of the fair value of the derivatives


Excluding costs strictly related to the growth of the business, mainly FAM (-0.6 mln y/y) and marketing (-0.9 mln y/y)


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FinecoBank Banca Fineco S.p.A. published this content on 01 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2023 11:12:32 UTC.