Banca Generali in the first three months scored a Net income of 68,3 million, a decrease of 50% from the 135,4 million euros of the same period last year. The explanation for the drop, explains a note from the asset management company, is to be found in thetrend volatile financial markets in the period, which led to an extraordinary contraction in variable commissions from the peak of 111 million euros in the first quarter of 2021 to 13,7 million euros in the first quarter of 2022.
Business Square however, the listing rewards both for the fact that the net profit is in any case higher than the analysts' estimates of around 59 million, and for the fact that the recurring net result, i.e. net of the same variable commissions, trading revenues recurring and other items of an extraordinary nature) has instead recorded a growth of 43% to 53,2 million "highlighting Banca Generali's ability to generate value even in a complex context for markets such as that of this 2022" says a note.
Mid-afternoon the stock is listed on the stock exchange 32,20 euros, an increase of 2,64%
Financial targets confirmed despite the fact that conditions have changed
During the call with the analysts, the CEO Gian Maria Mossa confirmed the Bank's financial targets although about two months after the launch of the plan the macroeconomic context and geopolitical balances have drastically changed due to the outbreak of the conflict in Ukraine. “The rise in interest rates underway represents an opportunity that had not been reflected in the projections of the plan and could therefore be an important component of profitability in the face of persistent market volatility” he adds.
Il intermediation margin it amounted to 160,8 million euros, which compares with the 239,9 million euros of the previous year. The result benefited from the increase in the financial margin (27,2 million euros, +10,0%) and from recurring net commissions (120 million euros, +15,2%). Total revenues amounted to 160,8 million (-33%) with net recurring commissions of 120,0 million (+15%).
“A solid start to the year that has seen growth in all the most important items in the recurring activities of our business, confirming the efficiency and quality of work, says Mossa. Assets continue to expand on an annual basis, as do funding flows, thanks to the great work of our bankers alongside families every day, accompanying them in the challenges of protecting and diversifying from risk variables such as inflation and strong market volatility".
Total assets grow by 8% to 84 billion
Le total masses amounted to 84 billion (+8%) with net inflows in the quarter of 1,5 billion and, from the beginning of the year to 30 April, of 1,9 billion.
Managed solutions (funds/SICAVs and financial and insurance containers) grew to 42,5 billion (+8,1% year on year, -4,1% from the beginning of the year). Assets under management amounted to 25,5 billion euros (+15,9% y/y, +1% since the beginning of the year). Net inflows in the first quarter of 2022 amounted to 1,5 billion euros (-12% compared to last year) and in April there was a further positive flow of 457 million euros, for a total that since the beginning of the year 1,9 billion euros.
Banca Generali confirms its capital solidity with a CET1 ratio of 16,2% and an implicit payout of 84%. “In a climate of uncertainty, geopolitical and economic complexities, management prudence ed operational efficiency were the guidelines that did not sacrifice strategic and commercial development”, continues Massa, pointing out that “the positive responses that we receive from the world of professionals and from the many new customers in this first part of the year make us confident in our ability to continue to grow above the reference market”.
