FinecoBank

Earnings Release • May 11, 2015

Informazione Regolamentata n. 1615-32-2015		Data/Ora Ricezione 11 Maggio 2015 11:49:55	MTA
Societa'	:	FINECOBANK
Identificativo Informazione Regolamentata	:	57951
Nome utilizzatore	:	FINECOBANKN05 - Spolini
Tipologia	:	IRAG 03
Data/Ora Ricezione	:	11 Maggio 2015 11:49:55
Data/Ora Inizio Diffusione presunta	:	11 Maggio 2015 12:04:56
Oggetto	:		FinecoBank_PressRelease_Results1Q15
Testo del comunicato

Vedi allegato.

PRESS RELEASE

Results at March 31st, 2015 approved

NET PROFIT: €47.8 million (€36.9 million at March 31st , 2014, +29.4%)

• Operating income: €137 million (€113 million at March 31st , 2014, +20.9%)
• Cost/Income ratio down to 43.75%
• CET1 ratio at 19.38% (transitional)
• Total financial assets: €53,711 million (€49,341 million at December 31st, 2014, +8.9%)

FIGURES AT APRIL 30th, 2015

• Net sales April 2015: €494 million (+42% y/y)
• Net sales January-April 2015: €2,106 million (+50% y/y)
• 994 thousand customers (40 thousand new customers in the first four months of 2015, +9% y/y)

Milan, May 11th, 2015

The Board of Directors of FinecoBank S.p.A. has approved the results at March 31, 2015.

Alessandro Foti, CEO and General Manager of FinecoBank, stated:

"We have closed the first three months of 2015 with high-quality results that once again reflect our unique business model, which combines an efficient digital platform and a large network of financial advisors. These results are driven by the increasing digitalisation and a change in approach by Italian savers, who are increasingly asking for a qualified advisory and for diversification. We are convinced these results are supported by our customers who believe more and more in our commitment to provide them with efficient and innovative services and with a transparent approach."

TOTAL FINANCIAL ASSETS AND NET SALES

Financial assets reached a total of €53.7 billion at March 31st, 2015, an increase of 8.9% compared to the end of 2014, thanks to net sales of €1.6 billion in the first three months of 2015 (+53% on the same period of 2014). First quarter Net sales at all time high, achieved thanks to the increasing customer demand for leading advanced advisory services that answer to their need for investment planning.

In April 2015 Net sales were equal to €494 million, an increase of 42% on April 2014. Assets under management reached a total of €340 million, up 61% compared to April 2014.

At March 31st, 2015, the balance of assets under management totalled €26.1 billion, up 10.5% on the €23.6 billion at December 31st, 2014, with net sales contributing €1.2 billion, driven by mutual funds and, in particular, by guided open architecture products. It is worth mentioning the increase in "Guided Products & Services" as a percentage of assets under management, up from 36.10% at December 31st, 2014 to 39.24%.

Direct sales stood at €14.4 billion, up 4.5% compared to €13.8 billion at December 31st , 2014, as a result of steady growth in new customers and "transactional" deposits, reflecting the high and growing level of customer loyalty.

Assets under administration increased by €13.2 billion, up 10.6% on €12 billion at December 31st, 2014.

The number of customers at April 30th, 2015 exceeded 994 thousand, up 8% compared to around 920 thousand at April 30th, 2014. In the first four months of 2015, over 40 thousand new customers were acquired, up 9% compared to the same period of 2014.

The number of Personal Financial Advisors of the Fineco network at March 31st, 2015 rose to 2,571, an increase of 1.5% compared to the beginning of the year.

MAIN INCOME STATEMENT RESULTS FOR THE FIRST QUARTER 2015

Net interest margin came to €57.6 million, essentially unchanged on the first quarter 2014 (+3% on the fourth quarter 2014), mainly due to the increase in volumes and the decreasing cost of funding, which offset the fall in market rates.

Net fee and commission income amounted to €61.7 million, a rise of 29.3% compared to the same period of 2014 (+16.6% on the fourth quarter 2014), mainly due to the increase in recurring management fees and in trading commissions, resulting from the rise in the number of executed orders, equal to 7.7 million, driven by market volatility and customers' appreciation of the Fineco platform. March was the best month for Brokerage in the last four years.

Operating income increased to the quarterly record level of €136.7 million, up 20.9% on the €113.1 million posted in the first three months of 2014 and 16% on the fourth quarter 2014, and was evenly spread across all the business areas, confirming the strength of our model.

Total operating costs amounted to €59.8 million compared to €51.6 million for the corresponding period of 2014 and €53.8 million for the fourth quarter 2014, with the cost/income ratio falling to 43.75% from 45.6% for the first quarter 2014 and 47.02% at the end of 2014.

Unlike the first quarter 2014, costs included the impact related to the stock granting plans (totalling €3.9 million). Net of this discontinuity, costs were up €4.3 million when compared to the first quarter 2014 (+8.3%). Costs were also heavily affected by a seasonal factor compared to the last quarter 2014, due to the PFAs social security contribution (equal to €4 million). Comparable costs were up €2.6 million on the fourth quarter 2014 (+5%). Operating profit came to 76.9 million, up 25% on the first three months of 2014 and 20.1% on the fourth quarter 2014.

Profit before tax amounted to €72.2 million, up 25.2% on the first three months of 2014 (+19.7% on the fourth quarter 2014), thanks to €14 million rise in the net fees and commissions and €10 million increase in trading profit, primarily driven by the increase in executed orders.

Net profit for the period came to €47.8 million, up 29.4% on the €36.9 million posted in the first quarter 2014 (+17.6% on the fourth quarter 2014), mainly due to the increase in net fees and commissions and trading profit.

In the first three months of 2015, Fineco achieved a further strengthening of its capital ratios: the CET1 ratio (transitional) stood at 19.38% as of March 31st, 2015.

In the same period, shareholders' equity amounted to €610.3 million, up 10.5% on €552.3 million at December 31st, 2014.

FinecoBank

FinecoBank is UniCredit Group's direct multichannel bank. It has one of the largest advisory networks in Italy, with 2,571 Personal Financial Advisors, and is the number one broker in Italy for equity trades in terms of volume of orders, with over 988,000 customers, €1.6 billion of net sales at March 31, 2015 and €53.7 billion of total financial assets. 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 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.

Contact info: Tel.: +39 02 2887 2256 Tel. +39 02 8862 3820 ufficiostampa@fineco.it Investors@fineco.it

Fineco - Media Relations Fineco - Investor Relations

Barabino & Partners Tel. +39 02 72023535 Emma Ascani e.ascani@barabino.it +39 335 390 334 Tommaso Filippi t.filippi@barabino.it +39 366 644 4093

	1015	1014	Ch. % Y/Y
Net interest	57,586	58,333	$-1.3%$
Net fees and commissions	61,681	47,718	29.3%
Net trading, hedging and fair value income	17,059	7.079	141.0%
Net other expenses/income	358	$-41$	n.a.
OPERATING INCOME	136,684	113,089	20.9%
Payroll costs	$-18,385$	$-15,770$	16.6%
Other administrative expenses	$-60,401$	$-52,735$	14.5%
Recovery of expenses	21,012	18,807	11.7%
Amortisation, depreciation and impairment losses on intangible and tangible assets	$-2,027$	$-1,905$	6.4%
Operating costs	$-59,801$	$-51,603$	15.9%
OPERATING PROFIT (LOSS)	76,883	61,486	25.0%
Net impairment losses on loans and provisions for guarantees and commitments	$-1,583$	-465	240.4%
NET OPERATING PROFIT (LOSS)	75,300	61,021	23.4%
Provisions for risks and charges	$-3,115$	$-3,373$	$-7.6%$
Profit (loss) and net write downs on investments	0	0
PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS	72,185	57,648	25.2%
Income tax for the period	$-24,403$	$-20,722$	17.8%
PROFIT (LOSS) AFTER TAX FROM CONTINUING OPERATIONS	47,782	36,926	29.4%
NET PROFIT (LOSS) FOR THE PERIOD	47,782	36,926	29.4%

Starting from January 1, 2015 the condensed accounts used in the interim report on operations were modified; specifically, "Adjustments of leasehold improvements" were attributed 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 Interbank Fund for the Protection of Deposits were attributed to the item "Provision for risks and charges" (previously, they had been attributed to the item "Net adjustments to loans and provisions for guarantees and commitments").

	1015	4014	3014	2014	1014
Net interest	57,586	55,875	56,432	57,607	58,333
Net fees and commissions	61,681	52,884	45,831	49,311	47,718
Net trading, hedging and fair value income	17,059	10,331	6,522	5,810	7,079
Net other expenses/income	358	(1,289)	(1,302)	42	(41)
OPERATING INCOME	136,684	117,800	107,483	112,770	113,089
Payroll costs	(18, 385)	(19, 283)	(18,033)	(16,065)	(15,770)
Other administrative expenses	(60, 401)	(52,311)	(50, 443)	(55, 829)	(52, 735)
Recovery of expenses	21,012	20,420	19,208	18,735	18,807
Amortisation, depreciation and impairment losses on intangible and tangible assets	(2,027)	(2,634)	(2, 233)	(2,037)	(1,905)
Operating costs	(59, 801)	(53,808)	(51, 501)	(55, 196)	(51, 603)
OPERATING PROFIT (LOSS)	76,883	63,993	55,982	57,574	61,486
Net impairment losses on loans and provisions for quarantees and commitments	(1,583)	(1,204)	(685)	(826)	(465)
NET OPERATING PROFIT (LOSS)	75,300	62,789	55,297	56,748	61,021
Provisions for risks and charges	(3, 115)	(2, 493)	(677)	422	(3, 373)
Profit (loss) and net write downs on investments	$\mathbf 0$	0	(4)	0	0
PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS	72,185	60,296	54,616	57,170	57,648
Income tax for the period	(24, 403)	(19, 653)	(19,214)	(20, 234)	(20, 722)
PROFIT (LOSS) AFTER TAX FROM CONTINUING OPERATIONS	47,782	40,643	35,402	36,936	36,926
NET PROFIT (LOSS) FOR THE PERIOD	47,782	40,643	35,402	36,936	36,926
(Amounts in € thousand)

Starting from January 1, 2015 the condensed accounts used in the interim report on operations were modified; specifically, "Adjustments of leasehold improvements" were attributed 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 Interbank Fund for the Protection of Deposits were attributed to the item "Provision for risks and charges" (previously, they had been attributed to the item "Net adjustments to loans and provisions for guarantees and commitments").

BALANCE SHEET

ASSETS	1Q15	FY14	Ch. %
Cash and cash balances	10
Financial assets held for tradiing	5,609	3,054	83.7%
Loans and receivables with banks	14,070,077	13,892,197	1.3%
Loans and receivables with customers	796,879	695,594	14.6%
Financial investments	2,264,284	1,695,555	33.5%
Hedging instruments	24,508	24,274	1.0%
Property, plant and equipment	11,161	10,892	2.5%
Goodwill	89,602	89,602	0.0%
Other intangible assets	7,989	8,142	$-1.9%$
Tax assets	13,414	18,550	$-27.7%$
Other assets	215,368	326,756	-34.1%
Total assets		17,498,901 16,764,621	4.4%
(Amounts in I thousand)
LIABILITIES AND SHAREHOLDERS' EQUITY	1Q15	FY14	Ch. %
Deposits from banks	1,466,357	1,428,568	2.6%
Deposits from customers	14,603,456	13,914,712	4.9%
Debt securities in issue	427,884	424,710	0.7%
Financial liabilities held for trading	4,557	3,135	45.4%
Hedging instruments	46,933	46,220	1.5%
Provisions for risk and charges	114,680	118,031	$-2.8%$
Tax liabilities	55,688	33,358	66.9%
Other liabilities	169,052	243,633	$-30.6%$
Shareholders' equity	610,294	552,254	10.5%
- capital and reserves	554,027	400,085	38.5%
- revaluation reserves for available-for-sale financial assets
and for actuarial gains (losses) from defined
benefit plans	8,485	2,262	275.1%
- net profit	47,782	149,907	-68.1%
Total liabilities and shareholders' equity		17,498,901 16,764,621	4.4%
(Amounts in I thousand)

BALANCE SHEET - QUARTERLY DATA

10 Financial assets held for tradiing 5,609 4,708 10,407 3,054 8,405 Loans and receivables with banks 14,070,077 17,084,534 13,892,197 13,612,912 13,476,117 Loans and receivables with customers 796,879 695,594 700,208 696,142 669,141 Financial investments 2,264,284 1,695,555 1,716,878 1,715,320 93,934 Hedging instruments 24,508 24,274 23,494 35,637 130,687 Property, plant and equipment 11,161 10,892 10,901 11,391 10,718 Goodwill 89,602 89,602 89,602 89,602 89,602 Other intangible assets 7,989 8,142 8,100 7,915 8,055 Tax assets 18,550 20,072 26,992 13,414 17,164 Other assets 215,368 326,756 227,200 227,865 170,281 18,292,356 Total assets 17,498,901 16,764,621 16,411,176 16,290,482 (Amounts in I thousand) LIABILITIES AND SHAREHOLDERS' EQUITY 1Q15 FY14 3014 1H14 1Q14 Deposits from banks 1,466,357 1,428,568 1,282,386 1,026,852 1,590,439 Deposits from customers 13,914,712 14,603,456 13,741,345 13,911,224 13,473,654 Debt securities in issue 427,884 424,710 423,842 421,965 2,322,527 Financial liabilities held for trading 4,867 7,902 4,557 3,135 4,647 Hedging instruments 46,933 46,220 45,195 48,960 130,411 Provisions for risk and charges 114,680 118,031 104,876 106,574 105,412 Tax liabilities 47,999 17,342 55,688 33,358 30,156 Other liabilities 188,903 169,052 243,633 246,862 268,182 Shareholders' equity 610,294 552,254 514,024 471,702 455,766 - capital and reserves 554,027 400,085 396,179 392,928 414,934 - revaluation reserves for available-for-sale financial assets and for actuarial gains (losses) from defined benefit plans 8,485 8,581 4,912 3,906 2,262 - net profit 149,907 47,782 109,264 73,862 36,926 Total liabilities and shareholders' equity 17,498,901 16,764,621 16,411,176 16,290,482 18,292,356	ASSETS	1Q15	FY14	3Q14	1H14	1Q14
	Cash and cash balances		5	9	14

(Amounts in Ithousand)