Presentation to the financial community Key economic figures as of September 30, Business Plan

Transcription

1 Presentation to the financial community Key economic figures as of September 30, Business Plan Rome, Italy Palazzo Altieri November 30, 2011

2 Agenda. Business dynamics Revenues and AUM Arturo Nattino, CEO Key economic figures as of September 30, 2011 Gian Franco Traverso Guicciardi, Head of Investor Relations Business Plan Andrea Crovetto, General Manager 2.

3 Agenda. Business dynamics Revenues and AUM Key economic figures as of September 30, Business Plan 3.

4 Classification of revenues ( 000). 7.8% Dividends 9.5% Trading activities on own account 15.3% Interest margin and other income 67.4% Net commissions 9M2010 9M2011 VAR % Interest margin and other income % Net commission Dividends % Trading activities on own account % 4.

5 Total AUM ( 000) ,980,360 9,096,083 8,536,655 9,394,209 9,504,631 8,662, CAGR= -0.7% Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Sept

6 Total AUM breakdown ( 000) % AUM (13.4%) 26.2% Real Estate (23.6%) 53.15% Securities and trust investments (51.8%) 8.7% SICAV (11.2%) AUM breakdown 9M2010 9M2011 VAR % Administered and trust accounts 4,929,644 4,604, % *Discretionary managed portfolios 1,281,600 1,034, % Sicav 1,067, , % Real Estate funds 2,245,489 2,272, % * Including AUM mandates from third parties 6.

7 Discretionary management accounts growth trend* ( 000) ,234,493 1,356,098 1,062,299 1,390,653 1,300,244 1,034,496 CAGR= -3.5% Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Sept 2011 * Including AUM mandates from third parties 7.

8 Sicav growth trend ( 000) CAGR= 17.6% 1,082, , , , , ,980 0 Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Sept

9 Administered accounts growth trend* ( 000) ,332,051 5,243,458 4,856,799 5,058,263 4,818,234 4,604,817 CAGR= -2.9% Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Sept 2011 * Including trust services 9.

10 Real estate funds growth trend ( 000) ,080,683 2,164,547 2,062,432 2,102,283 2,303,810 2,272, CAGR= 1.8% Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Sept

11 Agenda. Business dynamics Revenues and AUM Key economic figures as of September 30, Business Plan. 11.

12 Reclassified consolidated income statement ( 000) Var. % Net interest margin 4,172 4, Dividends 2,203 2, Net commissions 21,364 21,582 1 Profit (loss) on financial transactions 1,772 3, Earnings margin 29,511 32, Administrative costs -24,301-23, Value adjustments (amortization and depreciation) Other income (expenses) Operating expenses -24,047-23,581-2 Profit (loss) on equity investments Gross operating profit 5,161 7, Adjustments to value of financial assets and credits Net operating profit 4,280 7, Income tax on current operations -1,968-3, Minorities Net profit for the year 1,512 3,

13 Summary of group performance Net commissions/earnings margin 61.5% 72.4% 67.4% Cost/income ratio 77.4% 81.5% 73.65% GOP/earnings margin 22.7% 17.5% 25% Net operating profit/gop 92.4% 82.9% 90.2% Net profit /GOP 48.6% 29.3% 38.1% 13.

14 Agenda. Business dynamics Revenues and AUM Key economic figures as of September 30, Business Plan 14.

15 Scenario analysis and opportunities. The present Italian scenario is favourable to Banca Finnat s potential to become a top player in the near future. Our goal is to pursue our balanced growth based on a traditionally cautious attitude, independence, focus on customers requirements and confidentiality. We aim at concentrating more and more on activities where we excel and rival with international competitors; we will thus continue offering our customers a unique range of distinguishing services. A large segment of HNWI often has entrepreneurial activities, owns real estate and is interested in Family Office services. This often latent demand is not matched by a corresponding offer meaning an integrated offer from operators combining a swift banking structure with a special financial know-how. The Finnat Group intends to further pursue a strategy foreseeing the preservation of its Tier 1 capital ratio now exceeding 20% -, prudent lending limited to the bank s customers and based on real estate guarantees, and choices to pre-empt market risks. 15.

16 Guidelines: Private Banking initiatives. Further strengthening of customer relations. New investment proposals. Increase of market share. New CRM platform. Risk monitoring. Wider range of banking services. 16

17 Guidelines: Retail and Small Business. 1. Direct fund collection. Even though our starting point is lower than the Italian banking system s average, in 2016 repayable-on-demand funding will account for approx. 9% of the total; medium-to-long term funding will contribute to a balanced development of loans to customers. In order to promote medium-term funding, which is necessary to increase our loan activity, starting 4Q2011 Banca Finnat will issue certificates of deposit. Consistently with the bank s perceived soundness, interests paid will be lower than our more aggressive competitors. 2. AUM. Focus on funds (mainly own, partially from third parties). Wider range of available AM options, strengthening of AM department and new products such as unit-linked products. Wider offer of third parties funds. 17

18 Guidelines: Retail and Small Business. 3. Mortgage loans and financing. Product range development and special focus on existing clients with reference to: - Short-term financing; - Mortgage loans. 4. Banking services. Improvement of a number of services: HNWI credit and debit cards, ATM services, tailor-made current accounts for target clients; cooperation with Imprebanca with reference to POS and retail card services. 18

19 Guidelines: Institutional Clients. 1. Promotion and placement of investment products and RE instruments. 2. Promotion and placement of third-party funds through agreements with highly specialized international players. 3. Taylor-made investment proposals for institutional clients. 4. Setting up of new products and wealth management instruments. 5. Trading activity with special focus on bonds. 6. Trading activity on narrow markets. 7. Additional mandates to further develop our activity as Specialists. 19.

20 Guidelines: Real Estate. 1. Strengthening our leadership in RE management. 2. Development of additional funds aimed at widening our experience on new products and markets; innovation of our financial solution range of offer, in favour of clients intending to invest cash into core/long term and distressed products. 3. Five additional funds, total value Euro 800M. 4. Focus on welfare and insurance products. 5. Constant monitoring of public-sponsored initiatives, in order to benefit from existing high-level relations and experience in connection with Fondo Immobili Pubblici (FIP). 20.

21 Guidelines: Corporate Finance. 1. Improving revenues from this field of activity. 2. Further developing our medium-size-operation track record through both the bank s strong personal and institutional relations and the adoption of more and more effective solutions. 3. Focus on the group s target clients by further strengthening existing relations and supplying our customers with the best available assistance along with an integrated range of products. 4. Strengthening existing domestic and international relations with medium-sized financial institutions, professionals and institutional investors. 5. Development of new tailor-made products to further expand our range of services. 21.

22 Guidelines: Financial Planning. 1. Repricing of existing services and new services offer. 2. Consistent adoption of a world class consultancy service level. 3. Additional marketing activities, client events as well as executive education to our sales force in favour of financial planning activities. 4. Streamlining of trust activities and improved coordination of sales and marketing activities. 22.

23 Business Plan targets. Rise in revenues, which are expected to exceed euro 50M in % Cost/Income ratio. Net profit due to exceed euro 6.5M (approx. 13% cagr). 4% ROE. Tier 1 Capital Ratio constantly above 20%. 23.

24 Contacts. INVESTOR RELATIONS MANAGER Gian Franco Traverso Guicciardi Tel PR OFFICE SEC Marco Fraquelli Tel