Banca Generali (BGN) H1 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached €239.6 million, up 37% year-over-year, driven by strong recurring profits, robust commercial activity, and favorable market conditions.

• Recurring net profit was €170.4 million (+3% YoY), while variable net profit surged to €69.1 million from €9.0 million in H1 2023, supported by performance fees.

• Total client assets rose to €99.0 billion (+6.7% vs. year-end 2023), with net inflows of €3.6 billion (+11% YoY), and 70% of assets from private clients.

• Entering the final phase of the 2022–2024 business plan, with upgrades to 2024 guidance and increased confidence in exceeding inflow and profitability goals.

• Recruitment accelerated with 94 new hires in H1, focusing on financial advisors and young talent.

Financial highlights

• Net banking income rose to €494.3 million (+26% YoY), with net interest income at €157.5 million (+4% YoY) and net financial income at €166.7 million (+3.3% YoY).

• Gross recurring fees increased 7.5% YoY to €514.5 million, with variable fees at €94 million and steady growth in management and advisory fees.

• Operating costs were €136.6 million (+7.3% YoY), including €3.1 million in one-off charges; core costs up 6.4% YoY, mainly due to BG Suisse setup and contract renewals.

• Cost/income ratio improved to 27.6% (from 32.5%), with operating costs on total assets at 0.28%.

• EBITDA for H1 2024 was €377.7 million (+33% YoY); ROE at 39.5% (from 32.9%).

Outlook and guidance

• 2024 net inflows target raised to over €6.5 billion, with 40–60% from Assets under Investment.

• Net interest income guidance for FY 2024 raised to €300 million, with management fee margin expected at ≥1.42%.

• Cumulative dividend target for 2022–2025 increased to €8.0–€8.5 per share.

• Strategic Plan targets reaffirmed: net inflows of €18–22 billion, recurring profit CAGR of 10–15%, and cumulative dividends of €7.5–€8.5 per share by 2025.

• Projected reduction in net interest income by 5%-10% in 2025 if Euribor drops by 100 basis points.