Banca Generali beats expectations, profit for the quarter at 83 million

MILAN – Quarterly report released by Banca Generali’s board of directors above expectations: consolidated net profit amounted to 83.1 million, an increase of 22% compared to the corresponding period last year. Despite “strong volatility on the markets and uncertainty on the macroeconomic and geopolitical front”, the institute, according to a note, has accelerated “towards the dimensional and income growth targets”. Analysts had expected 77 million in profits. Recurring net income rose 45% to $77 million, “reaching a new high in a single quarter.”

On the other hand, the intermediation margin grew to 193.2 million (from 160.8 million). Specifically, the interest margin (71 million, +214.9% year on year and +24.2% on the quarter) “benefited from the growth in returns on assets in line with the increase in market rates”. Recurring gross commissions amounted to 238.1 million (-2.7% compared to the corresponding period last year). Operating costs amounted to 63.7 million (+6.2%) with a cost-income ratio, adjusted for non-recurring components such as variable commissions, reduced to 33.2% (from 40.8% at the end of 2022 ). At the equity level, Banca Generali records a Cet1 ratio of 16.0%.

When it comes to assets under management, Banca Generali points out that they reach a “new all-time high”: 85.9 billion in total (+2%) with double-digit growth (+10%) for those in “advanced consultancy”.

“We are very satisfied with the result which once again highlights our ability to grow in every context. We are at an all-time high in customer portfolio, with over 70% of these generating recurring commissions. The demand for investment services with greater added value reaches new records with fee-based Asset Management and Advisory services which together exceed 17 billion. Also in terms of collection, the figure for the first quarter is on the increase, with a large contribution from consultants in the structure, confirming the quality of our professionals and the growing need for consultancy on the part of high standing customers”, the comment that the Gian Maria Mossa entrusted the note: “In a period characterized by persistent volatility and complexity of the interest rate scenario, we recorded the best quarterly profit in our history with our recurring business activities. Recurring fees held up quite well also thanks to value creation in the administered world which reached an all-time high in line with the monetary policy cycle. We are cautiously looking at the economic-financial challenges on the markets for the next few months but we are confident that we can continue to grow in line with the plan’s targets, strengthened by a unique positioning and a level of service that is increasingly recognized and appreciated by customers”.

As for the future, the institute confirms the objectives set for 2023 of net inflows in the range of 5.7-6.7 billion and growth in recurring profits of between 15%-20% for the current year .