Banca Generali (BGN) Q2 2025 earnings summary

Executive summary

• Recurring net profit reached a record €176.3m (+3% YoY), while total net profit declined 16% to €200.2m due to lower variable fees and non-recurring items.

• Client assets hit a new high at €106.5bn (+8% YoY), with net inflows of €3.0bn, and over €71bn in assets under investment.

• Strategic partnership with Generali and new insurebanking agreements, including with Alleanza, were launched to drive future growth.

• Intermonte acquisition completed and integrated, expanding trading, derivatives, and investment banking capabilities.

• Robust capital and liquidity positions maintained, with CET1 at 17.7%, TCR at 19.7%, LCR at 329%, and NSFR at 234%.

Financial highlights

• Net banking/financial income rose to €177m (+6% YoY), but net banking income for H1 was €472.7m, down 4.4% YoY due to a 54.8% drop in variable fees.

• Gross recurring fees for H1 were €550m (+7% YoY), now 93% of total fees, while variable fees dropped 55% YoY.

• Operating costs rose 20.4% YoY to €164.4m, mainly due to Intermonte integration and IT investments.

• Cost/income ratio increased to 34.8% (from 27.6%), with adjusted ratio at 36.8–37.5%.

• Net interest income for H1 was €161.7m (+2.7% YoY), supported by higher retail deposit volumes.

Outlook and guidance

• 2025 targets confirmed: net inflows of €6.0bn (of which >€3.5bn in AUI), average NIM yield of 200bps, and management fee margin of 140–142bps in 2H 2025.

• Strategic plan 2026–2028 focuses on Generali partnership, digital transformation, and long-term value creation.

• Confident in delivering all targets despite short-term uncertainties from the pending public offer.

• Expecting to onboard at least 2,000 Allianz professionals by end of next year.

• Focus on integrating Intermonte and expanding insurebanking/bancassurance with Generali.