Banca Generali (BGN) Q2 2025 earnings summary

Executive summary

• Recurring net profit reached a record €176.3M (+3% YoY), while reported net profit was €200.2M (-16% YoY) due to lower variable components and performance fees.

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

• Strategic partnership with Generali and new mutual banking business launched, including new insurebanking agreements and FPA model acceleration.

• Intermonte integration completed, 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 profit for Q2 was nearly €90M, with H1 net profit at €176M; variable net profit contributed €23.9M.

• Net interest income for H1 was €161.7M (+2.7% YoY), supported by asset expansion and higher retail deposits.

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

• Operating costs rose 20% YoY to €164M, mainly due to Intermonte integration and IT investments.

• Cost/income ratio (adjusted) at 37.5%, up from 35.6% at year-end 2024.

Outlook and guidance

• 2025 targets confirmed: net inflows of €6B (with >€3.5B in assets under investment), NIM yield of 200 bps, and management fee margin of 140–142 bps in H2.

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

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

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