Earnings Release • Feb 8, 2016
Earnings Release
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| Informazione Regolamentata n. 1615-8-2016 |
Data/Ora Ricezione 08 Febbraio 2016 12:44:17 |
MTA | |
|---|---|---|---|
| Societa' | : | FINECOBANK | |
| Identificativo Informazione Regolamentata |
: | 69147 | |
| Nome utilizzatore | : | FINECOBANKN01 - Spolini | |
| Tipologia | : | IRAG 01 | |
| Data/Ora Ricezione | : | 08 Febbraio 2016 12:44:17 | |
| Data/Ora Inizio Diffusione presunta |
: | 08 Febbraio 2016 12:59:18 | |
| Oggetto | : | FINECOBANK PR FY15 | |
| Testo del comunicato |
Vedi allegato.
1 Non-recurring items: -€2.3 million gross, relating to provisions to the Solidarity Fund established in relation to the losses incurred by subordinated debt holders of the four Italian banks in resolution and - €1.2 million gross relating to estimated integration costs for the UniCredit Group Strategic Plan.
The Board of Directors of FinecoBank S.p.A. has approved the results at December 31, 2015.
"2015 was an extraordinary year under all aspects for Fineco, with financial and commercial results that set new records thanks to the strong growth of all areas of the Bank. The year confirmed the soundness of our balanced and well diversified business model, that successfully faced such difficult market phases. 2016 has begun with very strong figures both in net sales and brokerage. We are also very satisfied with the increase in the number of new customers, a confirmation of strong customer experience. These results let us be optimistic in our outlook for 2016."
Total financial assets stood at €55.3 billion at December 31, 2015, an increase of 12.1% compared to the end of 2014, thanks to net sales in 2015 of €5,490 million in 2015 (+37% compared to 2014). 2015 net sales are the best annual result in the history of Fineco, confirming the strength of a business model able to take full advantage from the main structural trends currently under way in Italy, such as rising demand for advanced advisory services and digitization of society.
In 2015, assets under management totalled €26.3 billion, up 11.2% on the €23.6 billion at December 31, 2014, with sales driven by mutual funds and, in particular, by guided open architecture products. Of particular note was the increase in "Guided Products & Services" as a percentage of assets under management, up from 36% at December 31, 2014 to 45% at December 31, 2015.
Direct deposits totalled €15.6 billion, up 13.6% compared to €13.8 billion at December 31, 2014, thanks to the steady growth in new customers and in "transactional deposits", reflecting the high and increasing degree of customer loyalty.
Assets under administration stood at €13.4 billion, up 12.3% on €12 billion at December 31, 2014.
The number of Personal Financial Advisors of the Fineco network at December 31, 2015, rose to 2,622, an increase of 3.5% compared to the end of December 2014.
More than 112 thousand new customers were acquired in 2015, up 9.1% compared to 2014. As of December 31, 2015, Fineco had 1,048,000 customers.
Net interest margin came to €245.2 million, up 7.4% on 2014 despite the scenario characterized by continuously falling interest rates. This result was possible thanks to the increase in volumes of deposits and the decreasing cost of funding, which more than offset the reduction in interest income linked to the fall in market rates.
Net fee and commission income amounted to €248.2 million, a rise of 26.8% compared to 2014. The increase is attributable to all business areas and in particular the fee and commission income from asset management products, due to the increase in assets under management and the penetration of "Guided products & services", whose share of assets under management grew from 36% to 45% during the year. There was also an improvement in distribution commissions from insurance products and securities trading and order collection commissions, caused by the increased number of executed orders (27.9 million, +14.5% on 2014) due to greater market volatility and customer appreciation of Fineco's platform.
Operating income rose to €544.3 million, an increase of 20.6% on the €451.1 million posted in the first half of 2014. Revenues were well distributed across all the Bank's business areas: investing contributed €156.5 million (+33%), brokerage €149.7 million (+31.5% compared to 2014 core revenues, excluding the net interest margin), and banking €239.7 million (+11%).
Total operating costs came to €232.5 million compared to €212.1 million at December 31, 2014, with the cost/income ratio dropping to 43% from 47% at December 31, 2014. The costs included the impact of the stock granting plans for top management, key talents of the bank and personal financial advisors (totalling €13.6 million), which only affected six months of the previous year. Staff expenses came to €75 million and other administrative costs amounted to €148.5 million, including development costs for the network and higher Tobin Tax than for 2014 (in coherence with the increase in brokerage business). Running costs relating to general operations increased by just €3.3 million, reflecting the Bank's effective operating leverage.
Operating profit came to €311.7 million, up 30.4% on 2014.
Profit before tax came to €288.1 million, up 25.4% on 2014.
Net profit for the period amounted to €191.1 million, an increase of 27.4% compared to the €149.9 million at December 31, 2014, thanks mainly to an increase in net fee and commission income and net trading, hedging and fair value income, which more than offset the increase in costs.
Net profit adjusted to take into account the provision to the Solidarity Fund established in relation to the losses incurred by subordinated debt holders of of the four Italian banks in resolution and estimated Integration costs for the UniCredit Group Strategic Plan stood at €193.4 million, up 28.2% compared to 2014 profit (adjusted for the National Interbank Deposit Guarantee Fund – FITD), even including the contribution to the Deposit Guarantee Scheme.
During 2015, Fineco maintained its solid capital position with a CET1 ratio (transitional) of 21.39% at December 31, 2015.
In the same period, shareholders' equity amounted to €632.8 million, up 14.6% compared to €552.3 million at December 31, 2014.
Net interest margin for the fourth quarter came to €63.2 million, stable compared to the third quarter of 2015 despite the continuous fall in interest rates and 13.2% up on the fourth quarter of 2014, driven by rising volumes and a lower cost of funding.
Net fee and commission income for the fourth quarter amounted to €62.5 million, a rise of 2.8% compared to the third quarter of 2015 and by 18.2% compared to the third quarter of 2014, mainly due to the increase in recurring net fee and commission income from asset under management.
Operating income rose to €136.8 million, an increase of 16.2% on the €117.8 million posted in the fourth quarter of 2014, with positive contributions from all product areas. The slight fall compared to the third quarter of 2015 (-2.1%) is mainly attributable to net other expenses/income due to insurance reimbursement during the third quarter.
Total operating costs in the fourth quarter came to €58.9 million compared to €54.1 million in the third quarter of 2015 and €53.8 million in the fourth quarter of 2014, returning to its natural level for 2015 after the slowdown in marketing spending during the summer.
Operating profit for the quarter was €77.9 million, down 9.1% on the third quarter of 2015 and up 21.7% compared to the fourth quarter of 2014.
Profit before tax came to €63.6 million, up 5.5% on the fourth quarter of 2014 and down 23.3% compared to the third quarter of 2015, mainly due to non-recurring items and the contribution to the Deposit Guarantee Scheme.
Net profit for the fourth quarter stood at €42.2 million, down 23.4% on the third quarter of 2015 and up 3.9% on the €40.6 million posted in the fourth quarter of 2014.
The strong growth trend also continued into 2016: net sales for January amounted to €501 million, an increase of 28% on January 2015. The sales mix is in line with the high market volatility: assets under administration stood at €414 million due to the increase in customers' brokerage activity, while direct deposits came to €259 million and assets under management totalled €-171 million.
Sales through the network of personal financial advisors stood at €429 million, up 20% compared to January 2015.
Customers' acquisition continued to accelerate: in January 2016 around 10,500 new customers were acquired, +29% compared to January 2015, bringing the total number of customers at January 31, 2016 to around 1,057,000, up 9% compared to around 970,000 at January 31, 2015.
In addition, January 2016 was one of the best months ever for brokerage activities, confirming the solidity of Fineco's business model.
Tables showing the figures for January 2016 are provided below.
| TOTAL NET SALES | January | January 2015 |
|
|---|---|---|---|
| 2016 | |||
| Assets under management | $-171.366$ | 165.960 | |
| Assets under custody | 414.035 | $-241.375$ | |
| Direct deposits | 258.524 | 467.675 | |
| TOTAL NET SALES | 501.192 | 392.260 |
| PFA NETWORK NET SALES | January | January 2015 |
|
|---|---|---|---|
| 2016 | |||
| Assets under management | $-160.043$ | 155.036 | |
| Assets under custody | 300.038 | $-184.655$ | |
| Direct deposits | 288,880 | 386.115 | |
| NET SALES PFA NETWORK | 428.876 | 356.496 |
FinecoBank is the direct, multi-channel bank of the UniCredit Group, with one of the largest advisory networks in Italy. It is the leading bank in Italy for equity trades in terms of volume of orders and number one online broker in Europe for number of orders executed. FinecoBank offers an integrated business model combining direct banking and financial advice, with a single free-of-charge account including a full range of banking, credit, trading and investment services, which are also available through applications for smartphone and tablet. With its fully integrated platform, FinecoBank is the benchmark for modern investors.
The Board of Directors has approved on February, 8th 2016 the draft financial statements for the year ended 31 December 2015 and has authorized their issue pursuant to IAS 10.
Please note that the auditing firm is completing the auditor review of the financial statements, as well as the activities for the issue of the statement to be used in the context of the preventive authorization pursuant to art. 26 (2) of Regulation EU n. 575/2013 and with ECB Decision n. 2015/656.
The Financial Reporting Officer, Lorena Pelliciari, declares, pursuant to Article 154.2 bis of the Consolidated Finance Act, that the accounting information contained in this press release corresponds to the documentary records, ledgers and accounting data.
Attached are the Balance Sheet, Income Statement and the quarterly changes in the Income Statement and Balance Sheet.
Tel.: +39 02 2887 2256 Tel. +39 02 8862 3820 [email protected] [email protected]
Barabino & Partners Tel. +39 02 72023535 Emma Ascani [email protected] +39 335 390 334 Tommaso Filippi [email protected] +39 366 644 4093
Fineco - Media Relations Fineco - Investor Relations
| 31 Dec 15 | 31 Dec 14 | Ch. % Y/Y | |
|---|---|---|---|
| Net interest | 245,184 | 228,247 | 7.4% |
| Net fee and commissions income | 248,188 | 195,744 | 26.8% |
| Net trading, hedging and fair value income | 53,867 | 29,742 | 81.1% |
| Net other expenses/income | $-2,974$ | $-2,590$ | 14.8% |
| OPERATING INCOME | 544,265 | 451,143 | 20.6% |
| Staff expenses | $-75,049$ | $-69,151$ | 8.5% |
| Other administrative expenses | -232,870 | $-211,318$ | 10.2% |
| Recovery of expenses | 84,347 | 77,170 | 9.3% |
| Impairment/write-backs on intangible and tangible assets |
$-8,951$ | $-8,809$ | 1.6% |
| Operating costs | -232,523 | $-212,108$ | 9.6% |
| OPERATING PROFIT (LOSS) | 311,742 | 239,035 | 30.4% |
| Net write-downs of loans and provisions for guarantees and commitments |
$-6,706$ | $-3,180$ | 110.9% |
| NET OPERATING PROFIT (LOSS) | 305,036 | 235,855 | 29.3% |
| Provisions for risks and charges | $-15,714$ | $-6,121$ | 156.7% |
| Integration costs | $-1,246$ | 0 | n.c. |
| Net income from investments | -1 | -4 | $-75.0%$ |
| NET PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS |
288,075 | 229,730 | 25.4% |
| Income tax for the period | $-97,022$ | -79,823 | 21.5% |
| NET PROFIT (LOSS) AFTER TAX FROM CONTINUING OPERATIONS |
191,053 | 149,907 | 27.4% |
| NET PROFIT (LOSS) FOR THE PERIOD | 191,053 | 149,907 | 27.4% |
Starting from January 1, 2015 the condensed accounts used in the report on operations were modified. Specifically, "Adjustments of leasehold improvements" were allocated to the item "Other administrative expenses" (whilst previously they were attributed to the item "Net other expenses/income"), and "Impairment losses on other assets" pertaining to "ex-post" contributions to the National Interbank Deposit Guarantee Fund were allocated to the item "Provisions for risks and charges" (previously, they were allocated to the item "Net write-downs of loans and provisions for guarantees and commitments").
| 4015 | 3015 | 2015 | 1015 | 4014 | 3014 | 2014 | 1014 | |
|---|---|---|---|---|---|---|---|---|
| Net interest | 63,224 | 63,856 | 60,518 | 57,586 | 55,875 | 56,432 | 57,607 | 58,333 |
| Net fee and commissions income | 62,509 | 61,050 | 62,948 | 61,681 | 52,884 | 45,831 | 49,311 | 47,718 |
| Net trading, hedging and fair value income | 12,587 | 13,207 | 11.014 | 17,059 | 10,331 | 6,522 | 5,810 | 7.079 |
| Net other expenses/income | (1,486) | 1,601 | (3,447) | 358 | (1,289) | (1,302) | 42 | (41) |
| OPERATING INCOME | 136,834 | 139,714 | 131,033 | 136,684 | 117,800 | 107,483 | 112,770 | 113,089 |
| Staff expenses | (18.883) | (18, 984) | (18.797) | (18, 385) | (19, 283) | (18,033) | (16,065) | (15, 770) |
| Other administrative expenses | (59.238) | (53.097) | (60, 134) | (60, 401) | (52.311) | (50, 443) | (55.829) | (52.735) |
| Recovery of expenses | 21,728 | 20,231 | 21,376 | 21,012 | 20,420 | 19,208 | 18,735 | 18,807 |
| Impairment/write-backs on intangible and tangible assets |
(2,550) | (2,211) | (2,163) | (2,027) | (2,634) | (2,233) | (2,037) | (1, 905) |
| Operating costs | (58, 943) | (54,061) | (59, 718) | (59, 801) | (53, 808) | (51, 501) | (55, 196) | (51,603) |
| OPERATING PROFIT (LOSS) | 77,891 | 85,653 | 71,315 | 76,883 | 63,993 | 55,982 | 57,574 | 61,486 |
| Net write-downs of loans and provisions for guarantees and commitments. |
(2,576) | (1,436) | (1,111) | (1,583) | (1, 204) | (685) | (826) | (465) |
| NET OPERATING PROFIT (LOSS) | 75,315 | 84,217 | 70,204 | 75,300 | 62,789 | 55,297 | 56,748 | 61,021 |
| Provisions for risks and charges | (10.474) | (1,311) | (814) | (3,115) | (2,493) | (677) | 422 | (3,373) |
| Integration costs | (1,246) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net income from investments | (1) | 0 | $\circ$ | 0 | 0 | (4) | 0 | 0 |
| NET PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS |
63,594 | 82,906 | 69,390 | 72.185 | 60,296 | 54,616 | 57.170 | 57.648 |
| Income tax for the period | (21, 373) | (27.778) | (23, 468) | (24, 403) | (19,653) | (19, 214) | (20, 234) | (20, 722) |
| NET PROFIT (LOSS) AFTER TAX FROM CONTINUING OPERATIONS |
42,221 | 55,128 | 45,922 | 47,782 | 40,643 | 35,402 | 36,936 | 36,926 |
| NET PROFIT (LOSS) FOR THE PERIOD | 42,221 | 55.128 | 45,922 | 47.782 | 40,643 | 35,402 | 36,936 | 36,926 |
Starting from January 1, 2015 the condensed accounts used in the report on operations were modified. Specifically, "Adjustments of leasehold improvements" were allocated to the item "Other administrative expenses" (whilst previously they were attributed to the item "Net other expenses/income"), and "Impairment losses on other assets" pertaining to "ex-post" contributions to the National Interbank Deposit Guarantee Fund were allocated to the item "Provisions for risks and charges" (previously, they were allocated to the item "Net write-downs of loans and provisions for guarantees and commitments").
| ASSETS | FY15 | FY14 | Ch. % |
|---|---|---|---|
| Cash and cash balances | |||
| Financial assets held for tradiing | 3,983 | 3,054 | 30.4% |
| Loans and receivables with banks | 14,648,904 | 13,892,197 | 5.4% |
| Loans and receivables with customers | 922,774 | 695,594 | 32.7% |
| Financial investments | 2,245,982 | 1,695,555 | 32.5% |
| Hedging instruments | 10,573 | 24,274 | $-56.4%$ |
| Property, plant and equipment | 12,419 | 10,892 | 14.0% |
| Goodwill | 89,602 | 89,602 | 0.0% |
| Other intangible assets | 8,212 | 8,142 | 0.9% |
| Tax assets | 15,424 | 18,550 | $-16.9%$ |
| Other assets | 370,070 | 326,756 | 13.3% |
| Total assets | 18,327,949 16,764,621 | 9.3% | |
| (Amounts in I thousand) | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | FY15 | FY14 | $\frac{Ch.~\%}{-0.4\%}$ |
| Deposits from banks | 1,423,459 | 1.428.568 | |
| Deposits from customers | 15,822,459 | 13,914,712 | 13.7% |
| Debt securities in issue | 0 | 424,710 | $-100.0%$ |
| Financial liabilities held for trading | 4,100 | 3,135 | 30.8% |
| Hedging instruments | 31,319 | 46,220 | $-32.2%$ |
| Provisions for risk and charges | 120,534 | 118,031 | 2.1% |
| Tax liabilities | 37,445 | 33,358 | 12.3% |
| Other liabilities | 255,835 | 243,633 | 5.0% |
| Shareholders' equity | 632,798 | 552,254 | 14.6% |
| - capital and reserves | 430,119 | 400,085 | 7.5% |
| - revaluation reserves for available-for-sale financial assets | |||
| and for actuarial gains (losses) from defined | |||
| benefit plans | 11,626 | 2,262 | 414.0% |
| - net profit (loss) | 191,053 | 149,907 | 27.4% |
| Total liabilities and shareholders' equity | 18,327,949 16,764,621 | 9.3% | |
| (Amounts in I thousand) |
| ASSETS | FY15 | 3Q15 | 1H15 | 1Q15 | FY14 |
|---|---|---|---|---|---|
| Cash and cash balances | 10 | ||||
| Financial assets held for tradiing | 3,983 | 8,613 | 5,463 | 5,609 | 3,054 |
| Loans and receivables with banks | 14,648,904 | 13,966,287 | 14,582,941 | 14,070,077 | 13,892,197 |
| Loans and receivables with customers | 922,774 | 884,508 | 835,823 | 796,879 | 695,594 |
| Financial investments | 2,245,982 | 2,232,479 | 2,238,746 | 2,264,284 | 1,695,555 |
| Hedging instruments | 10,573 | 6,541 | 39,579 | 24,508 | 24,274 |
| Property, plant and equipment | 12,419 | 11,043 | 11,163 | 11,161 | 10,892 |
| Goodwill | 89,602 | 89,602 | 89,602 | 89,602 | 89,602 |
| Other intangible assets | 8,212 | 7,862 | 8,030 | 7,989 | 8,142 |
| Tax assets | 15,424 | 11,569 | 14,629 | 13,414 | 18,550 |
| Other assets | 370,070 | 232,297 | 225,475 | 215,368 | 326,756 |
| Total assets | 18,327,949 17,450,808 18,051,457 17,498,901 16,764,621 | ||||
| (Amounts in I thousand) | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | FY15 | 3015 | 1H15 | 1Q15 | FY14 |
| Deposits from banks | 1,423,459 | 1,396,068 | 1,436,173 | 1,466,357 | 1,428,568 |
| Deposits from customers | 15,822,459 | 15,043,178 | 15,256,498 | 14,603,456 | 13,914,712 |
| Debt securities in issue | 0 | 0 | 400,000 | 427,884 | 424,710 |
| Financial liabilities held for trading | 4,100 | 6,254 | 5,386 | 4,557 | 3,135 |
| Hedging instruments | 31,319 | 26,810 | 59,668 | 46,933 | 46,220 |
| Provisions for risk and charges | 120,534 | 104,800 | 104,947 | 114,680 | 118,031 |
| Tax liabilities | 37,445 | 57,803 | 30,288 | 55,688 | 33,358 |
| Other liabilities | 255,835 | 233,407 | 227,285 | 169,052 | 243,633 |
| Shareholders' equity | 632,798 | 582,488 | 531,212 | 610,294 | 552,254 |
| - capital and reserves | 430,119 | 427,673 | 437,198 | 554,027 | 400,085 |
| - revaluation reserves for available-for-sale financial assets | |||||
| and for actuarial gains (losses) from defined | |||||
| benefit plans | 11,626 | 5,983 | 310 | 8,485 | 2,262 |
| - net profit (loss) | 191,053 | 148,832 | 93,704 | 47,782 | 149,907 |
| Total liabilities and shareholders' equity | 18,327,949 17,450,808 18,051,457 17,498,901 16,764,621 |
(Amounts in I thousand)
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