Banca Generali (BGN) Q1 2025 earnings summary

Executive summary

• Recurring net profit rose 6.1% year-over-year to €87.0 million, while reported net profit was €110.3 million, reflecting lower variable fees and higher tax rate.

• Total assets grew to €104.3 billion, with net inflows of €1.5 billion in Q1 2025 and €0.6 billion in April, despite market volatility.

• Integration of Intermonte completed, contributing positively to income, cost lines, and expanding trading and advisory capabilities.

• Mediobanca launched a voluntary public exchange offer for 100% of shares, with the Board appointing advisors and analyzing the industrial rationale.

• Operational efficiency remained strong, with industry-leading cost ratios and a stable payout policy.

Financial highlights

• Net interest income was stable at €79.3 million, with net financial income up 4.8% to €88.0 million, supported by trading gains and Intermonte's contribution.

• Gross recurring fees accelerated 8.5% year-over-year to €280 million, while total gross fees reached €313 million, with variable fees down due to market conditions.

• Operating costs rose 21% year-over-year to €82.6 million, mainly due to higher staff costs, M&A, and Intermonte integration; core costs up 8.5%.

• Cost/income ratio increased to 33.0% (from 26.6%), but remained best-in-class at 36.8% in 1Q 2025.

• Total deposits increased to €14.5 billion (+11% YoY), with cost of funding down to 0.93%.

Outlook and guidance

• Guidance confirmed: targeting at least €6 billion total net inflows and €3.5 billion from assets under investment for 2025.

• Management expects growth in capital ratios linked to net income generation and ongoing focus on recruiting new talent and expanding the advisory network.

• Performance fees expected to recover in the latter part of the year, depending on market conditions.

• Dividend policy expected to remain unchanged, with high capital ratios absorbing Intermonte's impact.

• Focus remains on profitable growth, Intermonte integration, international expansion, and digital transformation.