Earnings Release • Feb 9, 2022
Earnings Release
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| Informazione Regolamentata n. 1615-5-2022 |
Data/Ora Ricezione 09 Febbraio 2022 12:56:44 |
Euronext Milan | |
|---|---|---|---|
| Societa' | : | FINECOBANK | |
| Identificativo Informazione Regolamentata |
: | 157242 | |
| Nome utilizzatore | : | FINECOBANKN02 - Spolini | |
| Tipologia | : | 1.1 | |
| Data/Ora Ricezione | : | 09 Febbraio 2022 12:56:44 | |
| Data/Ora Inizio Diffusione presunta |
: | 09 Febbraio 2022 12:56:45 | |
| Oggetto | : | PR FINECOBANK_FY21 Results | |
| Testo del comunicato |
Vedi allegato.
FURTHER CHANGE OF PACE IN THE GROWTH PATH WITH RECORD NET PROFIT AND REVENUES IN 2021 EFFECTIVE AND SUSTAINABLE BUSINESS MODEL STRONG BOOST IN ASSET UNDER MANAGEMENT
The Board of Directors of FinecoBank S.p.A. has approved the results as of December 31st , 2021. Alessandro Foti, CEO and General Manager of FinecoBank, stated:
"Fineco recorded a very strong growth in 2021, with record net profit and revenues. These results confirm a further change of pace in our growth path, strengthened by the effectiveness and solidity of our business
1 2021 net profit, equal to €380.7 million, is represented net of non-recurring items recorded in the period: +32.0 million net related to the fiscal realignment of the intangible asset recorded in Financial Statement as of December 31st, 2019, under the art. 110 of the Legislative Decree 104/2020; €-0.7 million gross (€-0.5 million net) valuation related to the Voluntary Scheme fair value in the fourth quarter.
Figures net of non-recurring items recorded in the 2020: €-1.4 million gross (€-1.0 million net) valuation related to the Voluntary Scheme fair value, of which €-1.2 million gross (€-0.8 million net) in the first quarter of 2020 and €-0.2 million gross (€-0.2 million net) in the third quarter of 2020.
model able to successfully face all market phases. A path based on quality of offer, operating effectiveness, but especially on an approach focused on transparency and great respect of customers. Together with our financial advisors, we've developed some initiatives to stimulate customers with investment strategies aimed to invest liquidity. In addition, Fineco Asset Management's strong growth and acceleration in the expansion of its offer of investment solutions has allowed the Group to be in the sweet spot to catch all the opportunities arising in the coming year. January net inflows results confirm the strong boost of asset under management even in a high volatility context, and on the other side, the growing interest towards market interaction through our platform, which has been confirmed leader in Italy in retail segment. All this makes up look forward with great optimism".
| FINECOBANK | |
|---|---|
| Revenues1 at €804.5 million, +7.4% y/y led by the Investing area (+29.8% y/y), thanks to the growing contribution of Fineco Asset Management, to the increase of Asset under Management, and to the increase in Investing net margins |
|
| 2021 HIGHLIGHTS |
Operating costs at €258.9 million, +6.5% y/y (+4.4% y/y2 ). Cost/Income ratio1 at 32.2%, confirming the Bank's operational efficiency |
| Net profit1 reached a new record-high at €349.2 million, up +7.6% y/y compared to 2020 (which was the best result ever), despite higher contribution to systemic charges (€-40.0 million compared to €-26.8 million in 2020) |
|
| TFA at €107.9 billion, +17.7% y/y thanks to the contribution of high quality net sales, equal to €10.7 billion (+14.7% y/y). Net sales in Asset Under Management stood at €7.3 billion compared with €4.3 billion in the same period of 2020, up by +69.8% y/y |
|
| Fineco Asset Management reaches €24.8 billion of TFA, of which €15.1 billion in retail classes (+43.6% y/y), and €9.7 billion in institutional classes (+67.3% y/y). FAM is proceeding with the activities related to its strategic discontinuity, which will allow it to take more control of the value chain |
|
| 112,091 new customers acquired, +19.1% y/y |
|
| UPDATE ON INITIATIVES |
Activities continued to develop Fineco Asset Management, which is experiencing a strong acceleration in the expansion of its offer of investment solutions. After the strong interest by clients for its FAM Target China, ESG Target Global Coupon and for Global Inflation Response, the Asset Management company is launching around 15 new strategies to answer even better and more effectively to customers' needs. Furthermore, Fineco Asset Management will widen its offer with new equity and sustainable solutions |
| The process of reshape of the brokerage offer is continuing after the launch of the leveraged certificates, which allows the Bank to become issuer, market maker and distributor through its platform, vertically integrating the business |
|
| Fineco keeps on developing its presence in UK, improving the awareness on the |
|
2 Net of costs strictly related to the growth of the business, mainly: FAM (-4.2 mln y/y) and marketing expenses related to UK (-1.1 mln y/y).
Total Financial Assets as of December 31st , 2021 amounted to €107.9 billion, up 17.7% compared to December 2020. Stock of Assets under Management was €55.5 billion, up by 22.2% y/y, assets under custody amounted to €23.0 billion (+25.4% y/y), while the stock of direct deposits amounted to €29.5 billion (+5.3% y/y).
In particular, the TFA related to Private Banking customers, i.e. with assets above €500,000, totalled €48.8 billion, up 26.3% y/y.
In 2021, total net sales amounted to €10.7 billion (+14.7% y/y), again proving to be solid, of high quality, and no need of short-term commercial policies. The asset mix shifted positively towards asset under management, standing at €7.3 billion (+69.8% y/y). Assets under custody amounted to €1.9 billion (-24.4% y/y), while direct deposits were equalled to €1.5 billion (-40.9% y/y).
Since the start of the year, inflows into "Guided products & services" reached €6.8 billion, confirming customer appreciation. The ratio of Guided Products on total AuM rose to 76% compared to 74% in December 2020.
As of December 31st , 2021, the network was composed of 2,790 Personal Financial Advisors operating through 424 Fineco Centers. Inflows through the PFA network were equal to €9.9 billion in 2021.
As of December 31st , 2021, Fineco Asset Management managed €24.8 billion of assets, of which €15.1 billion were retail class (+43.6% y/y) and around €9.7 billion institutional class (+67.3% y/y).
A total of 112,091 new customers were acquired in 2021 (+19.1% y/y). The total number of customers as of December 31st , 2021 was 1,428,170.
Figures and variations in this paragraph and in the next one on quarterly results are shown net of nonrecurring items1 .
| 1Q20 | 2Q20 | 3Q20 | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | FY20 | FY21 | FY21/ | 4Q21/ | 4Q21/ | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| mln | Adj. (1) | Adj. (1) | Adj. (1) | Adj. (1) | Adj. (1) | Adj. (1) | Adj. (1) | Adj. (1) | Adj. (1) | Adj. (1) | FY20 | 4Q20 | 3Q21 |
| Net financial income | 72.0 | 75.1 | 68.6 | 64.1 | 75.1 | 72.8 | 69.2 | 62.9 | 279.7 280.0 | 0.1% | -1.9% | -9.2% | |
| o/w Net interest income | 68.2 | 70.1 | 68.6 | 63.9 | 61.8 | 62.5 | 61.8 | 61.8 | 270.7 247.9 | -8.4% | -3.3% | -0.1% | |
| o/w Profit from treasury | 3.8 | 5.0 | -0.1 | 0.3 | 13.2 | 10.3 | 7.4 | 1.1 | 9.0 | 32.1 | n.s. | n.s. | n.s. |
| Net commissions | 95.9 | 98.6 | 92.3 | 92.6 | 108.1 106.3 110.1 126.4 | 379.4 450.8 | 18.8% | 36.5% 14.8% | |||||
| Trading profit | 23.8 | 25.1 | 20.5 | 18.8 | 23.9 | 16.7 | 15.6 | 18.9 | 88.2 | 75.0 | -14.9% | 0.1% 20.7% | |
| Other expenses/income | 0.6 | 0.8 | 0.2 | 0.4 | 0.5 | 0.1 | -1.5 | -0.5 | 1.9 | -1.3 | n.s. | n.s. | -65.8% |
| Total revenues | 192.2 199.6 181.5 175.9 | 207.6 195.9 193.5 207.6 | 749.2 804.5 | 7.4% | 18.0% | 7.3% | |||||||
| Staff expenses | -24.0 | -24.9 | -24.6 | -26.0 | -26.2 | -26.7 | -27.4 | -29.3 | -99.5 -109.6 | 10.1% | 12.8% | 7.2% | |
| Other admin.expenses | -27.4 | -28.5 | -27.8 | -34.3 | -30.6 | -29.9 | -27.6 | -34.9 | -118.0 -123.1 | 4.3% | 1.7% 26.1% | ||
| D&A | -6.1 | -6.2 | -6.4 | -6.8 | -6.3 | -6.4 | -6.4 | -7.1 | -25.4 | -26.2 | 3.1% | 4.7% 10.6% | |
| Operating expenses | -57.5 | -59.6 | -58.8 | -67.2 | -63.1 | -63.0 | -61.5 | -71.3 | -243.0 -258.9 | 6.5% | 6.2% 16.1% | ||
| Gross operating profit | 134.8 140.0 122.7 108.7 | 144.5 132.9 132.0 136.3 | 506.2 545.7 | 7.8% | 25.3% | 3.2% | |||||||
| Provisions | -1.1 | -6.5 | -32.0 | 5.5 | -8.2 | -5.8 | -31.1 | -4.9 | -34.1 | -49.9 | 46.6% | n.s. | -84.4% |
| LLP | -1.0 | -2.7 | 0.1 | 0.2 | -0.5 | -1.2 | -0.4 | 0.4 | -3.3 | -1.7 | -50.5% | n.s. | n.s. |
| Profit from investments | -0.1 | -3.7 | -0.2 | -2.3 | -0.6 | 1.8 | 0.3 | -0.4 | -6.3 | 1.1 | n.s. | -80.6% | n.s. |
| Profit before taxes | 132.6 127.1 | 90.7 112.2 | 135.2 127.7 100.9 131.4 | 462.5 495.1 | 7.1% | 17.1% 30.2% | |||||||
| Income taxes | -40.4 | -38.3 | -25.3 | -34.0 | -40.4 | -37.8 | -28.3 | -39.4 | -138.0 -146.0 | 5.8% | 16.1% 39.3% | ||
| Net profit adjusted (1) | 92.2 | 88.7 | 65.3 | 78.2 | 94.7 | 89.9 | 72.6 | 91.9 | 324.5 349.2 | 7.6% | 17.5% 26.7% |
Revenues totalled €804.5 million in 2021, increasing by 7.4% compared to €749.2 million of the previous year.
Net Financial Income stood at €280.0 million, in line compared to the €279.7 million recorded in 2020, thanks to profits from Treasury Management, which offset the decrease in Net Interest Income due to the fall in market interest rates.
Net commissions amounted to €450.8 million, increasing by 18.8% compared to €379.4 million in 2020. This increase is mainly due to the higher net commissions related to the Investing area (+29.9% y/y) thanks to the volume effect and the higher contribution of Fineco Asset Management. Banking fees grew at €49.2 million (+43.9% y/y), while Brokerage net commissions stood at € 126.2 million, down (-5.4% y/y) mainly due to the lower volatility in 2021 compared to the peaks recorded in 2020.
Trading profit amounted to €75.0 million in 2021, down (-14.9% y/y) compared to 2020 due to the aforementioned reduced volatility compared to the peak recorded in 2020.
Operating costs in 2021 were well under control at €258.9 million, up 6.5% y/y mainly due for expenses strictly connected to the growth of the business2 , net of which the increase in operating costs is equal to 4.4% y/y.
Staff expenses totalled €109.6 million, increasing by €10.1 million mainly due to the increase in the number of employees, which rose from 1,262 as of December 31st , 2020 to 1,305 as of December 31st, 2021 also due to the gradual internalisation of some services following the exit from the UniCredit Group and to the Irish subsidiary Fineco Asset Management, which is preparing to further improve the efficiency of the value chain in the Investing area.
The cost/income ratio net of non-recurring items1 was 32.2%.
Gross operating profit amounted to €545.7 million as of December 31st , 2021, up by 7.8% y/y.
Other charges and provisions totaled €-49.9 million, increasing compared to €-34.1 million in 2020 mainly due to ordinary annual contribution to the Deposit Guarantee Schemes (DGS), equal to €-32.3 million (compared to €-25.9 million in 2020), and to the contribution to the Single Resolution Fund (€-7.7 million in 2021 and -0.9 million in 2020).
Loan loss provisions amounted to €-1.7 million, also favored by write-backs after the improvement of the update macroeconomic scenario as requested under IFRS9. The cost of risk is equal to 4 basis points.
Profit on Investments amounted to €1.1 million, as a result of the improvement of the updated macroeconomic scenario as required under IFRS9, which led to write-backs in the period, mainly on the Bank's sovereign exposures.
Profit before taxes stood at €495.1 million, up by 7.1% y/y compared to €462.5 million in 2020.
Net profit for the period was equal to €349.2 million, increasing by 7.6% y/y.
Revenues in the fourth quarter totalled €207.6 million, up by 7.3% q/q and by 18.0% y/y.
Net Financial Income stood at €62.9 million, down by 9.2% q/q and by 1.9% y/y.
Net commissions amounted to €126.4 million, increasing by 14.8% compared to the previous quarter and increasing by 36.5% compared to the fourth quarter of 2020, mainly due mainly due to higher Investing commissions (€ 82.3 million, +15.3% q/q and +42.4% y/y).
Trading profit equalled to €18.9 million, up compared to €15.6 million of third quarter of 2021 and compared to €18.8 million in the fourth quarter of 2020.
Total operating costs came to €71.3 million, increasing by 16.1% q/q and by 6.2% y/y, mainly due to the aforementioned higher expenses related to business growth.
Gross operating profit was equal to €136.3 million, increasing by 3.2% q/q and by 25.3% y/y.
Other charges and provisions amounted to €-4.9 million.
Loan loss provisions amounted to €0.4 million.
Profits from investments stood at €-0.4 million.
Profit before taxes in the quarter was equal to €131.4 million, up by 30.2% q/q and by 17.1% y/y.
Net profit in the quarter was equal to €91.9 million, up by 26.7% q/q and by 17.5% y/y.
Consolidated Shareholders' equity stood at €1,726.8 million, increasing by €39.7 million compared to December 31st, 2020, mainly due to the profits achieved in the year 2021, net of the amount of the 2019- 2020 dividends payment (€323.2 million) and of the AT1 coupon paid in 2021, which resulted in a decrease in shareholders' equity of €19.8 million.
The Group confirms its solid capital position with a CET1 ratio of 18.80% as of December 31st, 2021, compared to 18.37% as of September 30th , 2021 and to 28.56%3 as of December 31st , 2020.
The Tier 1 ratio and the Total Capital Ratio were equal to 29.63% as of December 31st, 2021 compared to 29.29% as of September 30 th, 2021 and to 41.68%3 as of December 31st , 2020.
Leverage ratio stood at 4.02% as of December 31st , 2021 compared to 4.04% in September 30th , 2021 and to 4.85%3 as of December 31st , 2020. Please note that the financial leverage indicator as of December 31st , 2021 has been calculated by excluding exposures to Central Banks, as allowed under art-429 bis of CRR: net of this exclusion, the Leverage Ratio is equal to 3.84%.
The Board of Directors approved the proposal of a dividend distribution equal to €0.39 per share. The proposal will be submitted to the Shareholders' Meeting that will be convened on April 28th, 2022.
Any dividend authorized by the Shareholders' Meeting will be paid on May 25th, 2022 with coupon date of May 23rd, 2022, in accordance with the applicable laws and regulations. In accordance with Article 83 terdecies of the Legislative Decree no. 58/1998 ("Consolidated Law on Finance", also "TUF"), those with accredited shareholder status as per the accounting records on May 24th, 2022 will be entitled to receive the dividend.
Loans to customers stood at €6,002 million as of December 31 st , 2021, increasing by 6.7% compared to September 30 th , 2021 and by 32.5% compared to December 31 st, 2020.
The amount of non-performing loans (loans with insolvent borrowers, unlikely to pay and non-performing loans/past due) net of impairment totaled €4.4 million (€4.4 million as of September 30th, 2021 and €3.5 million as of December 31st, 2020), with an 82.2% coverage ratio. The ratio between the amount of nonperforming loans and total loans to ordinary customers equaled to 0.08% (0.09% at September 30th, 2021 and 0.09% December 31st, 2020).
With reference to the main events that took place in the fourth quarter of 2021, please refer to the press releases published on the FinecoBank website.
No significant events occurred after December 31 st, 2021 that would make it necessary to change any of the information given in this report.
3 The figure as at December 31st , 2020 is calculated before the deduction of the dividend on the 2019/2020 net profit, approved by the Ordinary Shareholders' Meeting on October 21st , 2021 and paid out on November 24th , 2021
The development of Fineco Asset Management is continuing, which is experiencing a strong acceleration in the expansion of its offer of investment solutions. After the strong interest shown by customers in the recent FAM Target China, ESG Target Global Coupon and Global Inflation Response, Fineco Asset Management is launching around 15 new strategies to answer even better and more effectively to customers' needs. Furthermore, Fineco Asset Management will widen its offer also with new equity and sustainable solutions.
The process of reshape of the brokerage offer is continuing after the launch of leveraged certificates, which allows the Bank to become an issuer, market maker and distributor through its own platform, vertically integrating the business.
Fineco keeps on developing its presence in UK, improving the awareness on the market of its offer, which is now complete.
Fineco was born and has developed as a company always oriented towards long-term sustainable growth, with lasting returns and satisfied stakeholders. To achieve this goal, the Bank has chosen to follow the path of transparency and fair pricing for the services offered, in line with its corporate purpose: to offer clients excellent services and products through a multi-channel system in the three integrated areas of banking, investing and brokerage, at fair pricing and leveraging on the three strategic pillars: transparency, efficiency and innovation.
In parallel with this approach, Fineco integrated ESG objectives in the Multi-Year Plan, for the realization of which several activities continued during 2021. In detail, Fineco published the "Policy on the integration of sustainability risks within advisory services" in line with EU Regulation 2088/2019 (Sustainable Finance Disclosure Regulation – SFDR), while Fineco Asset Management published its "Responsible Investment Policy", which describes the policies of funds' screening and responsible selection, and of monitoring of ESG rating in the portfolio. In addition, Fineco Asset Management classified its funds according to the SFDR categorisation and, at the end of December 2021, around 30% of its Asset Under Management was related to funds that promote, among other characteristics, environmental or social characteristics (or a combination thereof), or funds with a sustainable investment objective.
As a Responsible Bank, Fineco has continued to develop market-friendly corporate governance and expand its ESG product offering, strengthening the management of ESG aspects in credit and investment products, and maintaining a constant focus on Cyber-Security.
Fineco is also recognized as a sustainable bank by the major international rating agencies. Standard Ethics confirmed its "EE+" rating, a very high investment grade rating given to sustainable companies with low reputational risk and strong long-term growth prospects; Sustainalytics has further improved its ESG risk rating on Fineco to 16.0 "Low risk" (compared to the banking industry average of 28.9), while S&P's Corporate Sustainability Assessment saw an increase in the score from 54 to 65 points out of 100, leading Fineco to receive the recognition of "Sustainability Yearbook Member 2022" by S&P as a company included in the 71 best banks in the world for existing sustainability practices. Finally, the result obtained in
the Vigeo Eiris ESG rating update, equal to 54 points out of 100 (robust performance), in December allowed Fineco to be included in Euronext's MIB ESG Index.
In recent months Fineco has also received different awards, in details: "MF Banking Awards 2021 – Best ESG Rating" and "MF ESG Awards 2021", as Fineco has obtained the best rating by Standard Ethics among Italian banks; Statista / Forbes / Il Sole 24 Ore have awarded Fineco as "Leader in 2021 Sustainability", by including the Bank among 150 companies in Italy that distinguish themselves for their sustainability efforts; the European Women on Boards awarded Fineco the title of "Best Practice Leader" in the Gender Diversity Index Report 2021, which ranks European companies on the basis of women's representation on boards, committees and in corporate leadership.
Finally, in in the first semester of the year, Ignites Europe4 has stated, based on Morningstar data, that Fineco Asset Management is the asset manager that has launched on the market the highest number of products (11) classified under art.8 of SFDR Regulation, among 83 asset managers analyzed.
4 Ignites Europe is a service provided by the Financial Times covering European asset managers.
The reclassified consolidated balance sheet and the reclassified income statement approved by the Board of Directors are here attached. The draft financial statements and consolidated financial statements as of 31 December 2021 will be submitted for approval to the Board of Directors scheduled for 15 March 2022.
| (Amounts in € thousand) | |||||
|---|---|---|---|---|---|
| Amounts as at | Changes | ||||
| ASSETS | December 31, 2021 | December 31, 2020 | Amounts | % | |
| Cash and cash balances | 1,464,182 | 2,014,399 | (550,217) | -27.3% | |
| Financial assets held for trading | 20,240 | 16,997 | 3,243 | 19.1% | |
| Loans and receivables with banks | 379,862 | 526,422 | (146,560) | -27.8% | |
| Loans and receivables with customers | 6,001,596 | 4,527,837 | 1,473,759 | 32.5% | |
| Financial investments | 24,560,350 | 23,939,899 | 620,451 | 2.6% | |
| Hedging instruments | 125,913 | 74,451 | 51,462 | 69.1% | |
| Property, plant and equipment | 150,347 | 151,872 | (1,525) | -1.0% | |
| Goodwill | 89,602 | 89,602 | - | - | |
| Other intangible assets | 39,084 | 39,597 | (513) | -1.3% | |
| Tax assets | 42,974 | 13,314 | 29,660 | 222.8% | |
| Tax credit acquired | 508,764 | - | 508,764 | - | |
| Other assets | 484,261 | 360,627 | 123,634 | 34.3% | |
| Total assets | 33,867,175 | 31,755,017 | 2,112,158 | 6.7% |
(Amounts in € thousand)
| Amounts as at | Changes | ||||
|---|---|---|---|---|---|
| LIABILITIES AND SHAREHOLDERS' EQUITY | December 31, 2021 | December 31, 2020 | Amounts | % | |
| Deposits from banks | 1,225,213 | 1,064,859 | 160,354 | 15.1% | |
| Deposits from customers | 29,847,722 | 28,359,739 | 1,487,983 | 5.2% | |
| Debt securities in issue | 497,266 | - | 497,266 | - | |
| Financial liabilities held for trading | 4,417 | 5,889 | (1,472) | -25.0% | |
| Hedging instruments | 65,263 | 232,102 | (166,839) | -71.9% | |
| Tax liabilities | 35,864 | 13,954 | 21,910 | 157.0% | |
| Other liabilities | 464,633 | 391,349 | 73,284 | 18.7% | |
| Shareholders' equity | 1,726,797 | 1,687,125 | 39,672 | 2.4% | |
| - capital and reserves | 1,351,963 | 1,366,387 | (14,424) | -1.1% | |
| - revaluation reserves | (5,877) | (2,833) | (3,044) | 107.4% | |
| - net profit | 380,711 | 323,571 | 57,140 | 17.7% | |
| Total liabilities and Shareholders' equity | 33,867,175 | 31,755,017 | 2,112,158 | 6.7% |
Figures of Reclassified consolidated balance sheet relating to 2020 have been restated in order to reflect the Bank of Italy Circular 262 dated 22 December 2005 (7th update of 29 October 2021) through the reclassification of current accounts and demand deposits with Banks from item "Loans and receivables with banks" to item "Cash and cash balances".
(Amounts in € thousand)
| (Amounts in € thousand) | |||||
|---|---|---|---|---|---|
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | |
| ASSETS | |||||
| Cash and cash balances | 1,464,182 | 2,031,291 | 1,861,776 | 1,468,672 | 2,014,399 |
| Financial assets held for trading | 20,240 | 23,589 | 21,393 | 26,233 | 16,997 |
| Loans and receivables with banks | 379,862 | 397,493 | 392,272 | 433,692 | 526,422 |
| Loans and receivables with customers | 6,001,596 | 5,624,283 | 5,269,368 | 4,638,732 | 4,527,837 |
| Financial investments | 24,560,350 | 24,421,922 | 24,626,581 | 25,372,229 | 23,939,899 |
| Hedging instruments | 125,913 | 91,929 | 85,051 | 84,464 | 74,451 |
| Property, plant and equipment | 150,347 | 151,866 | 153,030 | 148,041 | 151,872 |
| Goodwill | 89,602 | 89,602 | 89,602 | 89,602 | 89,602 |
| Other intangible assets | 39,084 | 37,270 | 38,189 | 39,048 | 39,597 |
| Tax assets | 42,974 | 49,405 | 38,323 | 7,595 | 13,314 |
| Tax credit acquired | 508,764 | 393,970 | 75,065 | 8,789 | - |
| Other assets | 484,261 | 221,546 | 254,110 | 270,943 | 360,627 |
| Total assets | 33,867,175 | 33,534,166 | 32,904,760 | 32,588,040 | 31,755,017 |
Figures of Reclassified consolidated balance sheet relating to 2020 and the first three quarters of 2021 have been restated in order to reflect the Bank of Italy Circular 262 dated 22 December 2005 (7th update of 29 October 2021) through the reclassification of current accounts and demand deposits with Banks from item "Loans and receivables with banks" to item "Cash and cash balances".
| Changes | ||||
|---|---|---|---|---|
| FY 21 | FY 20 | Amounts | % | |
| Financial margin | 280,030 | 279,733 | 297 | 0.1% |
| of which Net interest | 247,889 | 270,728 | (22,839) | -8.4% |
| of which Profits from Treasury | 32,141 | 9,005 | 23,136 | 256.9% |
| Dividends and other income from equity investments | (26) | - | (26) | - |
| Net fee and commission income | 450,808 | 379,351 | 71,457 | 18.8% |
| Net trading, hedging and fair value income | 74,308 | 86,769 | (12,461) | -14.4% |
| Net other expenses/income | (1,310) | 1,933 | (3,243) | -167.8% |
| REVENUES | 803,810 | 747,786 | 56,024 | 7.5% |
| Staff expenses | (109,600) | (99,546) | (10,054) | 10.1% |
| Other administrative expenses | (262,546) | (228,536) | (34,010) | 14.9% |
| Recovery of expenses | 139,471 | 110,512 | 28,959 | 26.2% |
| Impairment/write-backs on intangible and tangible assets | (26,218) | (25,440) | (778) | 3.1% |
| Operating costs | (258,893) | (243,010) | (15,883) | 6.5% |
| OPERATING PROFIT (LOSS) | 544,917 | 504,776 | 40,141 | 8.0% |
| Net impairment losses on loans and provisions for guarantees and commitments | (1,655) | (3,344) | 1,689 | -50.5% |
| NET OPERATING PROFIT (LOSS) | 543,262 | 501,432 | 41,830 | 8.3% |
| Other charges and provisions | (49,938) | (34,076) | (15,862) | 46.5% |
| Net income from investments | 1,079 | (6,262) | 7,341 | 117.2% |
| PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS | 494,403 | 461,094 | 33,309 | 7.2% |
| Income tax for the year | (113,692) | (137,523) | 23,831 | -17.3% |
| NET PROFIT (LOSS) AFTER TAX FROM CONTINUING OPERATIONS | 380,711 | 323,571 | 57,140 | 17.7% |
| PROFIT (LOSS) FOR THE YEAR | 380,711 | 323,571 | 57,140 | 17.7% |
(Amounts in € thousand)
It should be noted that in the financial year 2021 certain costs related to the activities of personal financial advisors and related to services that are part of normal banking activities (in particular distribution and management of financial products) were reclassified under the item "Net fee and commission income" from the item "Other administrative expenses". For consistency of comparison, comparative figures presented in the reclassified financial statements for the year 2020 have been restated.
| (Amounts in € thousand) | ||||||||
|---|---|---|---|---|---|---|---|---|
| 1st Quarter 2nd Quarter | 3rd Quarter | 4th Quarter | 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter | |||||
| 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | |
| Financial margin | 71,983 | 75,067 | 68,559 | 64,124 | 75,071 | 72,826 | 69,239 | 62,894 |
| of w hich Net interest |
68,164 | 70,065 | 68,645 | 63,854 | 61,823 | 62,515 | 61,798 | 61,753 |
| of w hich Profits from Treasury |
3,819 | 5,002 | (86) | 270 | 13,248 | 10,311 | 7,441 | 1,141 |
| Div idends and other income from equity inv estments |
- | - | - | - | - | - | - | (26) |
| Net fee and commission income | 95,900 | 98,639 | 92,253 | 92,559 | 108,080 | 106,266 | 110,083 | 126,379 |
| Net trading, hedging and fair v alue income |
22,575 | 25,086 | 20,274 | 18,834 | 23,888 | 16,683 | 15,614 | 18,123 |
| Net other ex penses/income |
570 | 822 | 169 | 372 | 512 | 132 | (1,457) | (497) |
| REVENUES | 191,028 | 199,614 | 181,255 | 175,889 | 207,551 | 195,907 | 193,479 | 206,873 |
| Staff ex penses |
(24,007) | (24,886) | (24,647) | (26,006) | (26,217) | (26,667) | (27,369) | (29,347) |
| Other administrativ e ex penses |
(51,203) | (56,935) | (56,240) | (64,158) | (62,979) | (65,049) | (63,396) | (71,122) |
| Recov ery of ex penses |
23,807 | 28,456 | 28,438 | 29,811 | 32,367 | 35,103 | 35,751 | 36,250 |
| Impairment/w rite-backs on intangible and tangible assets |
(6,058) | (6,210) | (6,373) | (6,799) | (6,275) | (6,387) | (6,437) | (7,119) |
| Operating costs | (57,461) | (59,575) | (58,822) | (67,152) | (63,104) | (63,000) | (61,451) | (71,338) |
| OPERATING PROFIT (LOSS) | 133,567 | 140,039 | 122,433 | 108,737 | 144,447 | 132,907 | 132,028 | 135,535 |
| Net impairment losses on loans and prov isions for guarantees and commitments |
(963) | (2,707) | 148 | 178 | (477) | (1,211) | (360) | 393 |
| NET OPERATING PROFIT (LOSS) | 132,604 | 137,332 | 122,581 | 108,915 | 143,970 | 131,696 | 131,668 | 135,928 |
| Other charges and prov isions |
(1,124) | (6,512) | (31,970) | 5,530 | (8,236) | (5,787) | (31,058) | (4,857) |
| Net income from inv estments |
(89) | (3,729) | (181) | (2,263) | (583) | 1,822 | 280 | (440) |
| PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS | 131,391 | 127,091 | 90,430 | 112,182 | 135,151 | 127,731 | 100,890 | 130,631 |
| Income tax for the period |
(39,960) | (38,348) | (25,256) | (33,959) | (40,407) | (5,805) | (28,302) | (39,178) |
| PROFIT (LOSS) FOR THE PERIOD | 91,431 | 88,743 | 65,174 | 78,223 | 94,744 | 121,926 | 72,588 | 91,453 |
| NET PROFIT (LOSS) ATTRIBUTABLE TO THE GROUP | 91,431 | 88,743 | 65,174 | 78,223 | 94,744 | 121,926 | 72,588 | 91,453 |
It should be noted that in the financial year 2021 certain costs related to the activities of personal financial advisors and related to services that are part of normal banking activities (in particular distribution and management of financial products) were reclassified under the item "Net fee and commission income" from the item "Other administrative expenses". For consistency of comparison, comparative figures presented in the reclassified financial statements for the year 2020 have been restated.
| Long term debt | Short term debt | Outlook | |
|---|---|---|---|
| S&P GLOBAL RATING | BBB | A-2 | Positive |
| Area | Total Net Sales FY21 |
Total Net Sales FY20 |
AuM Net Sales FY21 |
AuM Net Sales FY20 |
|---|---|---|---|---|
| Lombardia | 3,400,260 | 2,691,898 | 2,335,586 | 1,136,601 |
| Lazio | 1,057,452 | 1,080,176 | 770,850 | 499,610 |
| Veneto | 834,047 | 766,531 | 594,542 | 433,531 |
| Emilia Romagna | 756,555 | 773,721 | 488,202 | 330,086 |
| Piemonte | 750,974 | 694,799 | 543,442 | 370,901 |
| Toscana | 749,786 | 530,743 | 569,198 | 257,413 |
| Campania | 674,754 | 579,859 | 413,549 | 270,958 |
| Liguria | 382,572 | 239,054 | 249,954 | 106,210 |
| Sicilia | 353,073 | 373,249 | 258,799 | 155,824 |
| Puglia | 287,976 | 356,046 | 201,452 | 191,769 |
| Other | 1,403,623 | 1,197,113 | 868,276 | 542,938 |
| Total | 10,651,072 | 9,283,190 | 7,293,851 | 4,295,841 |
This Press Release may contain written and oral "forward-looking statements", which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of FinecoBank S.p.A. (the "Company"). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Press Release are provided as at the present date and are subject to change without notice. Neither this Press Release nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision.
The information, statements and opinions contained in this Press Release are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with
respect to such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the "Other Countries"), and there will be no public offer of any such securities in the United States. This Press Release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries.
The undersigned Lorena Pelliciari, as Nominated Official in charge of drawing up Company Accounts of FinecoBank S.p.A.,
in compliance with the provisions of the second paragraph of Article 154-bis of the "Consolidated Finance Act", that the accounting information contained in this press release corresponds to results in the Company accounts, books and records.
Milan, 09 February 2022
The Nominated Official in charge of drawing up company accounts
In January net sales amounted to € 673 million, with an extremely low level of deposits despite the high market volatility and confirming the new dimension of the growth path undertaken by Fineco. The asset mix sees the Asset under Management at € 329 million (equal to about the half of the total), Asset under Custody at € 340 million, while direct deposits amounted to € 4 million. FAM institutional sales at € 0.5 billion, highlights the ongoing acceleration of the company's growth process, allowing a more complete internalization of the value chain.
Estimated brokerage revenues equalled to around € 19 million in January, in line with January 2021 which was characterized by a strong volatility on the US market, confirming the structural growth thanks to the review of the offer and the expansion of the customer base active on the platform. The comparison with average revenues for 2017-2019 shows growth of around 70%.
| figures in € million | ||
|---|---|---|
| TOTAL NET SALES | JAN 2022 |
JAN 2021 |
| Assets under management | 328.9 | 470.2 |
| Assets under custody | 339.8 | 369.3 |
| Directs deposit | 4.0 | 51.4 |
| TOTAL NET SALES | 672.7 | 890.8 |
| TOTAL FINANCIAL ASSETS | JAN 2022 |
JAN 2021 |
| Assets under management | 53,932.5 | 46,125.6 |
| Assets under custody | 22,422.1 | 18,838.0 |
| Directs deposit | 29,499.3 | 28,065.3 |
| TOTAL FINANCIAL ASSETS | 105,853.9 | 93,029.0 |
Fineco Asset Management retail net sales in January amounted to € 251 million, with a particular interest of customers in the family of funds under delegation Fam Series. As of January 31st, 2022, FAM managed € 24.9 billion: € 15.0 billion retail class (+39% y/y) and € 9.9 billion institutional component (+73% y/y).
Total Financial Assets were equal to € 105.8 billion (+14% y/y). In particular, TFA related to Private Banking were at € 46.9 billion, increasing by 19% compared to € 39.3 billion in January 2021.
Net sales in Guided Products & Services stood at € 265.5 million in January, compared to € 323 million in the same period of 2021. The penetration rate of Guided Products reached 76% on total Asset under Management compared to 73% in January 2021.
In January, 9,171 new clients were acquired, confirming the improvement of the client base, which is more interested in investing, and the increase in average Total Financial Assets of new current accounts. Total number of clients reached 1,433,872 as of January 31st, 2022.
| figures in € million | ||
|---|---|---|
| PFA NETWORK NET SALES | JAN 2022 |
JAN 2021 |
| Assets under management | 328.6 | 463.7 |
| Assets under custody | 224.9 | 258.5 |
| Directs deposit | 84.4 | 104.0 |
| TOTAL NET SALES | 638.0 | 826.2 |
| PFA NETWORK TFA | JAN 2022 |
JAN 2021 |
| Assets under management | 53,406.4 | 45,627.7 |
| Assets under custody | 16,647.9 | 14,013.6 |
| Directs deposit | 22,773.7 | 21,231.2 |
| TOTAL FINANCIAL ASSETS | 92,828.0 | 80,872.5 |
FinecoBank is one of the most important FinTech banks in Europe. Listed on the FTSE MIB, Fineco offers a business model that is unique in Europe, combining the best platforms with a large network of financial advisors. It offers a single account with banking, trading and investment services, on transactional and advisory platforms developed with proprietary technologies. Fineco is a leading bank in brokerage in Europe, and one of the most important players in Private Banking in Italy, offering advanced and tailormade advisory services. Since 2017, FinecoBank has also been in the UK with an offer focused on brokerage, banking and investment services. Fineco Asset Management was founded in Dublin in 2018, with a mission to develop investment solutions in partnership with top international asset managers
Fineco - Media Relations Fineco - Investor Relations Tel.: +39 02 2887 2256 Tel. +39 02 2887 3736/2358 [email protected]om [email protected]
Barabino & Partners Tel. +39 02 72023535 Emma Ascani [email protected] +39 335 390 334
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