“We are in a more positive moment, but I think we shouldn't be too self-satisfied, the real problem continues to be the euro and I still see a scenario of turbulence”. Giorgio Girelli, CEO of Banca Generali, he is moderately optimistic about the coming months and invites us not to lower our guard against a crisis that has its center in the euro, with all its contradictions.
But to the test of accounts, in an emergency General Bank however, it seems to have never entered. You bet on BTPs and you were right. She has continued to attract masses and new customers. And now it is making shareholders happy with the distribution of a dividend in line with last year's at 0,55 euro per share, at a time when most financial institutions are forced to put hay on the farm to strengthen their solidity indexes.
After presentation of accounts (net profit of 22,2 million euro, in line with the same period of 2010), the stock returned to positive and is traveling up by 0,83%. “We are very satisfied with having given the dividend - comments Girelli - it is a great show of strength, it is a sign of both the solidity of the bank and the creation of profit, with a dividend yield that is 5,7%, the top in the sector global finance". All this against a tier 1 capital ratio of 11,1% and a total capital ratio of 12,8% and results based on operating performance despite a difficult year for the financial markets.
THE NUMBERS OF 2011 THE ECB MONEY? ALL IN THE BTP
In 2011 Banca Generali filed a consolidated net profit of 73,4 million, down 11% on the 82,2 million of 2010 which, however, had benefited from an extraordinary tax item of 6 million euros linked to the release of goodwill and intangible assets. Excluding this component, earnings are down 4%. The improvement in the quality of the composition of profits should be noted, "the result of the significant growth in recurring revenue items (management fees and interest margin) and the careful cost containment policy which offset the decline in revenue items heavily dependent on by the performance of the financial markets”, such as performance fees (from 40,5 million euros to 9,8 million euros in 2011, -76% year on year) and trading revenues (from 13,2 million euros to 6,7 million in 2011, -49,2% year on year).
The interest margin amounted to 49,1 million euro, up by 13,4% on 2010. But in the fourth quarter there was a strong acceleration, + 33% over the third quarter thanks to the increase in deposit volumes and the significant return on the securities portfolio, driven by participation in the ECB's Lrto loans. Banca Generali participated in both ECB auctions (in December 2011 and January 2012) raising 1,5 billion euros. All reinvested in Btp. “We believed in government bonds and the facts continue to prove us right”, commented Girelli. At the end of 2011, Banca Generali's investment portfolio was confirmed to be characterized by the utmost prudence, with a very short duration (approximately 1), a maturity of 2,5 and the exclusive presence of senior bonds.
MANAGEMENT FEES GROW
OPERATING COSTS STABLE
Gross commissions amounted to 355,1 million euros, against 373,4 million euros in the previous year (-5,6%). Management fees increased: +8,4% to 281,6 million, despite the reduction in assets due to the market crisis, which compensated for the significant decrease in performance fees from 40,5 million euros to 9,8, 75,8 million (-3,3% year on year) penalized by the unfavorable performance of the financial markets in the period. Net commissions decreased by 191,5% to XNUMX million due to the contraction in performance commissions. The brokerage margin is down by 2,8% due to performance fees and trading while operating costs are substantially stable at +0,8% on 2010.
STARTING GROWTH IN 2012 FOR THE COLLECTION
In 2012 Banca Generali generated 1.260 million net collection, thanks above all to the arrival of new customers and in line with the 2010 result. Inflows were concentrated on asset management products in the first part of the year, while in the second part the worsening of tensions linked to the European sovereign debt crisis led to a greater concentration on more defensive products, in particular on administered savings products.
Un positive trend which is continuing in the first months of 2012: in the first two months of the year, net inflows amounted to 405 million, with an acceleration in assets under management even if concentrated on products of a defensive nature. “ I don't think we have already returned to the "pink world", we are very cautious with customers and do not push too much on aggressive products". Which could be good from the point of view of the bank's profitability but which, in the event of a shock, could mean disappointing and losing the customer.
At the end of 2011 assets under management and administration amounted to 23,3 billion, down by 1,4% compared to the previous year. On the other hand, assets under management as at 29 February 2012 grew compared to December 2011: + 4,5% to €24,3 billion, with an increase of €1 billion attributable to the €405 million in net inflows already mentioned and €600 million to the trend in markets in the first two months of the year.
