The Board of Directors of Fideuram – Intesa Sanpaolo Private Banking (Intesa Sanpaolo Group), chaired by Matteo Colafrancesco, approved the Interim Report as at 30 September 2017. At the end of the first nine months of 2017, the assets managed by the Fideuram – Intesa Sanpaolo Private Group Banking amounted to €211,7 billion, up by €13,7 billion (+7%) compared to 31 December 2016 and by almost €20 billion (+10%) compared to 30 September 2016.
The growth in assets compared to the end of 2016 is attributable both to the excellent performance of net inflows (+€10,3 billion) and to the good performance of the asset market (+€3,4 billion). The analysis by aggregates shows that the asset management component, amounting to €147,5 billion, represents 70% of assets under management. As at 30 September 2017, assets under paid advisory services amounted to €37,6 billion (€34,1 billion at the end of 2016, +10%), equal to approximately 18% of total assets.
In the first nine months of 2017, commercial activity recorded net inflows of €10,3 billion, up sharply (+74%) compared to the same period of 2016. The first nine months of the year also showed a mix inflows decidedly more favorable than in the same period of 2016, with the asset management component showing an excellent performance (€ 8,7 billion) against net inflows into assets under administration of € 1,5 billion. In particular, net inflows into mutual funds, amounting to €5,5 billion, recorded a sharp increase (+€7,1 billion) compared to the negative flow in the first nine months of 2016 (-€1,6 billion).
The inflow of approximately €0,7 billion from individual savings plans (PIR) also contributed to this result. Solid performance also in the insurance and asset management sectors which recorded, respectively, €2,2 billion and €0,9 billion in net inflows. As at 30 September 2017, the total number of private bankers in the Networks stood at 5.915 (+67 units compared to 31 December 2016), with an average portfolio per capita of approximately €36 million.
An analysis of the main aggregates of the Income Statement shows that in the first nine months of the year net fee and commission income reached €1,25 billion, up 10% compared to the balance of €1,14 billion recorded in the first nine months of 2016 Net recurring commissions, the predominant component (about 93%) of the commission margin, amounted to € 1,16 billion, up 12% compared to the same period of 2016. This trend mainly reflects the growth in assets assets under management (+10%).
In the first nine months of 2017, as well as in the first nine months of 2016, the commission margin did not benefit from any significant contribution from performance fees. Operating expenses, amounting to €399 million, showed a modest increase (+€10 million) compared to the corresponding period of last year (€389 million). The detailed analysis shows that against an increase in personnel expenses (+6%) linked largely to the quantitative and qualitative strengthening of the workforce, mainly in the commercial area (+58 resources), other administrative expenses resulted in a slight decrease (-1%).
The Cost/Income Ratio was 28%, an improvement of two percentage points compared to the 30% recorded in the first nine months of 2016. Consolidated net profit amounted to €662 million, up by €77 million (+ 13%) compared to the first nine months of 2016. The consolidated capital ratios of Fideuram – Intesa Sanpaolo Private Banking, calculated on the basis of Basel 3 rules, are confirmed to be well above the minimum levels required by the regulations. In particular, as at 30 September 2017 the Common Equity Tier 1 ratio was 15,5%.
Paolo Molesini, Chief Executive Officer and General Manager of the company, declared: “The strength of our results lies in their continuity, consistency with the level of service and sustainability. Continuity as, quarter after quarter, our growth continues, in terms of new customers, inflows and generation of profit, setting new records every time. Consistency with the service model because our margins are entirely attributable to our consultancy activity, which finds its most complete expression in asset management. Sustainability due to the great balance between revenue growth, fueled by new customers and private bankers, and careful monitoring of costs. The union of these elements represents the ideal premise for our future results”.
