Annual Integrated
Report 2022

“We emerge even stronger from the worst year ever in market history. Our total assets proved highly resilient compared to the industry thanks to excellent management competencies and the quality of our products and services. With a double-digit growth in recurring items and solid capital ratios, P&L and balance sheet reflect the Bank’s excellence and sustainability, driven by the increasing revenue diversification and the assets’ value”

Gian Maria Mossa

Chief Executive Officer at Banca Generali

Highlights Finanziari

Banca Generali stands apart within the Italian finance sector for the central role played by the financial advisory and wealth planning services it offers to the Private and Affluent Client segments through a network of Financial Advisors ranked at the top of the industry by competency and professionalism. The bond of trust between Financial Advisor and client is key and is complemented by the range of products, services and support models made available by the Bank.

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NET AUM AND INSURANCE INFLOWS

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NET EQUITY

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OPERATING RESULT

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TIER 1

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EMPLOYEES

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GROSS GLOBAL ADDED VALUE DISTRIBUTED

Letter to stakeholder

Dear stakeholder,

The year 2022 was marked by historic events, both on the geopolitical and financial fronts. The outbreak of war in Ukraine on 24 February and the growing tensions between the United States and the People’s Republic of China further undermined the process of globalisation of the world economy — already weakened during the pandemic. The effects of these events, combined with the economic recovery already underway, led to a double-digit rise in the price spiral, which central banks countered with highly restrictive monetary policies: the US Federal Reserve started the fastest rate hike cycle since 1980 and the ECB rapidly reversed direction after years of negative reference rates, while the Bank of Japan maintained its ultra-expansionary policy of negative rates, although changing the yield curve control target for the first time since the 1980s.

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Performances

The Banca Generali Group closed the financial year 2022 with a consolidated net profit of 213.0 million euros, compared to 323.1 million euros for the previous year (-34.1%).

The comparison is adversely influenced by variable components more closely linked to financial market dynamics. The year 2022 was in fact was marked by a particularly negative context for investments due to the concurrent decline in all asset classes that was triggered by the geopolitical tensions and the paradigm shift in interest rates as a result of inflationary pressures.

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Net interest income Net fees Net banking income
Total 144.979 471.532 639.841
Corporate Center 75.121 57.868 156.318
CGU Wealth Management 22.229 132.527 154.756
CGU Private Banking 47.629 281.138 328.767
(€ THOUSANDS) 31.12.2022 31.12.2021 AMOUNT %
1. Current accounts and demand deposits 12.972.643 13.231.340 -258.697 -2,0%
2. Financing 1.652.307 7.441 1.644.866 n.a.
    - Repurchase agreements with CG&G (MTS Repo)  1.320.571 0 1.320.571 n.a.
    - Repurchase agreements with customers 51.522 0 51.522 n.a.
    - Other (collateral margins) 280.214 7.441 272.773 n.a.
3. Other Debts 334.498 354.839 -20.341 -5,7%
    - IFRS 16-related lease liabilities 153.656 156.363 -2.707 -1,7%
    - Operating debts to sales network 131.040 157.980 -26.940 -17,1%
    - Other debts (money orders, amounts at the disposal of customers) 49.802 40.496 9.306 23,0%
Totale due to customers 14.959.448 13.593.620 1.365.828 10,0%
(€ THOUSANDS) 31.12.2022 31.12.2021 AMOUNT %
Inflows from Parent Company   74.677  38.848 35.829 92,2%
Inflows from other subsidaries of the General Group   228.038  455.997 -227.959 -50,0%
IFRS 16-related lease financial liabiilities   73.615  77.778 -4.163 -5,4%
Total inflows from Generali Group 376.330 572.623 -196.293 -34,3%
Inflows from other parties 14.583.118 13.020.997 1.562.121 12,0%
of which: current accounts 12.670.183 12.737.092 -66.909 -0,5%
Total inflows from customers 14.959.448 13.593.620 1.365.828 10,0%
BG GROUP Y/Y CHANGES VS 31.12.2022
(€ MILLION) 31.12.2022 31.12.2021 importo %
BG Group funds and Sicavs 203 1.267 -1.064 -84,00%
Third-party funds and Sicavs 490 1.655 -1.165 -70,40%
Financial wrappers 1.000 938 62 6,60%
Insurance wrappers 279 1.443 -1.164 -80,70%
Total assets under management 1.972 5.303 -3.331 -62,80%
Total traditional life insurance policies -814 -487 -327 67,10%
Total AUC 4.549 2.869 1.680 58,60%
Total net inflows from products placed by the network 5.707 7.685 -1.978 -25,70%
(€ THOUSANDS) 2022 2021 VAR %
Net interest income 145,131 84,031 72,70%
Net income (loss) from trading activities 22,217 27.710 -19,80%
Dividends 168,928 334,634 -49,50%
of which: dividends from equity investments 167,783 333,55 -49,70%
Net financial income 336,276 446,375 -24,70%
Fee income 723,286 740,506 -2,30%
Fee expense -451,559 -459,853 -1,80%
Net fees 271,727 280,653 -3,20%
Net banking income 608,003 727,028 -16,40%
Staff expenses -97,175 -94,509 2,80%
Other general and administrative expenses -109,955 -99,555 10,40%
Net adjustments of property, equipment and intagible assets -34,73 -33,84 2,60%
Other operating expenses/income 11,439 6,144 86,20%
Net operating expenses -230,423 -221,76 3,90%
Operating result 377.580 505,268 -25,30%
Net adjustments to non-performing loans -8.327 -1,959 n.a.
Net provisions -27.101 -45,381 -40,30%
Other one-off charges - -80,628 -100%
Contributions and charges related to the banking system -17.595 -15,475 13,70%
Gains (losses) from the disposal of equity investments -4.044 -20 n.a.
Operating profit before taxation 320.513 361,805 -11,40%
Income taxes for the year of operating activities -58.995 -28,185 n.a.
Net profit 226,188 342,247 -33,90%

Financial statements

ASSETS (€ THOUSAND) 31.12.2022 31.12.2021
Cash and deposits 774.239 1.620.334
Financial assets measured at fair value through profit or loss: 507.346 415.558
a)  HFT financial assets 1.991 6.578
c)  other financial assets mandatorily measured at fair value 505.355 408.980
Financial assets measured at fair value through other comprehensive income 1.120.101 2.543.065
Financial assets measured at amortised cost: 13.731.153 10.853.611
  a ) Loans to banks 2.536.670 1.218.138
   b) Loans to customers 11.194.483 9.635.473
Hedging derivatives 286.776 11.357
Equity investments 3.091 2.048
Property and equipment 154.865 159.012
Intangible assets 140.414 136.172
           - of which: goodwill 88.073 88.073
Tax receivables: 72.266 72.627
           a) current 1.498 9.623
           b) prepaid 70.768 63.004
Non-current assets available for sale and disposal groups 0 2.694
Other assets 476.598 375.132
Total Assets 17.266.849 16.191.610
ASSETS (€ THOUSAND) 31.12.2022 31.12.2021
Financial liabilities measured at amortised cost: 15.503.979 14.412.354
   a)  due to banks 544.531 818.734
   b)  due to customers 14.959.448 13.593.620
HFT financial liabilities 0 4.551
Hedging derivatives 123.604 167.320
Tax liabilities: 44.577 28.320
         a) current 38.871 22.233
         b) prepaid 5.706 6.087
Liabilities associated with disposal groups 0 318
Other liabilities 281.248 242.037
Employee termination indemnities 3.705 4.335
Provisions for liabilities and contingencies: 241.216 226.508
         a) commitments and guarantees issued 52 43
         b) pensions and similar obligations 1.365 2.974
         c) other provisions 239.799 223.491
Valuation reserves -9.972 522
Equity instruments 50.000 50.000
Reserves 724.536 624.033
Share premium reserve 53.767 55.866
Share capital 116.852 116.852
Treasury shares -80.139 -64.822
Net equity attributable to minority interests (+/-) 442 313
Net profit (loss) for the year (+/-) 213.034 323.103
Total net equity and liabilities 17.266.849 16.191.610
(€ THOUSANDS) 2022 2021
Interest income and similar revenues 159.405 92.218
Interest expense and similar charges -22.237 -8.884
Net interest income 137.168 83.334
Fee income 960.005 1.163.203
Fee expense -469.639 -474.447
Net fees 490.366 688.756
Dividends and similar income 1.145 1.084
Net income (loss) from trading activities 3.559 -73.426
Net income (loss) from hedging 1.884 2.088
Gain (loss) on disposal or repurchase of: 28.308 18.154
a) financial assets measured at amortised cost 42.426 15.674
b) financial assets measured at fair value through other comprehensive income -14.118 2.480
Net income (loss) from financial assets and liabilities measured at fair value through profit and loss: -11.566 145
b) other financial assets mandatorily measured at fair value -11.566 145
Net banking income 650.864 720.135
Net adjustments/reversals due to credit risk relating to: -8.334 -2.524
a) financial assets measured at amortised cost -7.918 -2.266
b) financial assets measured at fair value through other comprehensive income -416 -258
Net income (loss) from trading activities 642.530 717.611
General and administrative expenses: -332.259 -311.634
a) staff expenses -114.789 -107.844
b) other general and administrative expense -217.470 -203.790
Net provisions for liabilities and contingencies: -45.935 -66.830
a) commitments and guarantees issued -9 82
b) other net provisions -45.926 -66.912
Net adjustments/reversals of property and equipment -22.448 -21.949
Net adjustments/reversals of intangible assets -14.220 -13.705
Other operating expenses/income 94.787 89.542
Operating expenses -320.075 -324.576
Gains (losses) from equity investments -103 -266
Gains (losses) on disposal of investments -4 -23
Net profit before income taxes 322.348 392.746
Income taxes for the year on operating activities -109.375 -69.639
Net profit after income taxes 212.973 323.107
Net profit for the year 212.973 323.107
Net profit (loss) for the year attributable to minority interests -61 4
Net profit (loss) for the year attributable to the Parent Company 213.034 323.103
(THOUSAND EURO) 31.12.2022 31.12.2021
Net profit for the year 212.973 323.107
Other income net of income taxes, without transfer to Profit and Loss Account
Equity securities designated at fair value through other comprehensive income 125 -327
Defined benefit plans 1.743 630
Other income net of income taxes, with transfer to Profit and Loss Account
Exchange differences 384 494
Financial assets (other than equity securities) measured at fair value through other comprehensive income -12.562 -4.336
Total other income net of income taxes -10.310 -3.539
Comprehensive income 202.663 319.568
Consolidated comprehensive income attributable to minority interests 123 67
Consolidated comprehensive income attributable to the Parent Company 202.539 319.501
(thousands of euros) Share capital Share premium reserve Reserves Valuation reserves Equity instruments Interim dividends Reserve shares Net profit (loss) for the year Net equity  Group net equity  Net equity attributable to minority interests 
 A) Ordinary shares  B) Other  A) Retained earnings  B) Other
Net equity at 31.12.2020    117.127      -   0   55.866      594.508      29.482      599      50.000      -   0 - 64.822      323.107      1.105.867      1.105.554      313   
Change in opening balances   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0
Amount at 01.01.2021   117.127      -   0   55.866      594.508      29.482      599      50.000      -   0 - 64.822      323.107      1.105.867      1.105.554      313   
Allocation of net profit for the previous year:   -   0   -   0   93.615      -   0   -   0   -   0   -   0   -   0 - 323.107    - 229.492    - 229.492      -   0
- Reserves    -   0   -   0   -   0   95.246      -   0   -   0   -   0   -   0   -   0 - 95.246      -   0   -   0   -   0
- Dividends and other allocations   -   0   -   0   -   0 - 1.631      -   0   -   0   -   0   -   0   -   0 - 227.861    - 229.492    - 229.492      -   0
Change in reserves   -   0   -   0   -   0   -   0 - 1.000      1      -   0   -   0   -   0   -   0 - 999    - 1.005      6   
Transactions on net equity:   -   0   -   0 - 2.099      3.537      4.360      -   0   -   0   -   0 - 15.317      -   0 - 9.519    - 9.519      -   0
- Issue of new shares   -   0   -   0 - 2.099      -   0 - 6.880      -   0   -   0   -   0   8.979      -   0   -   0   -   0   -   0
- Purchase of treasury shares   -   0   -   0   -   0   -   0 - 89      -   0   -   0   -   0 - 24.296      -   0 - 24.385    - 24.385      -   0
- Interim dividends   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0
- Extraordinary dividends   -   0   -   0   -   0   3.537      -   0   -   0   -   0   -   0   -   0   -   0   3.537      3.537      -   0
- Change in equity instruments   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0
- Derivatives on treasury shares   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0
- Stock options   -   0   -   0   -   0   -   0   11.329      -   0   -   0   -   0   -   0   -   0   11.329      11.329      -   0
- Change in ownership interests   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0
Comprehensive income   -   0   -   0   -   0   -   0   -   0 - 10.310      -   0   -   0   -   0   212.973      202.663      202.540      123   
Net equity at 31.12.2021    117.127      -   0   53.767      691.660      32.842    - 9.710      50.000      -   0 - 80.139      212.973      1.068.520      1.068.078      442   
Group net equity   116.852      -   0   53.767      691.694      32.842    - 9.972      50.000      -   0 - 80.139      213.034      1.068.078      -   0   -   0
Net equity attributable to minority interests   275      -   0   -   0 - 34      -   0   262      -   0   -   0   -   0 - 61      442      -   0   -   0
Share capital Share premium reserve Reserves Valuation reserves Equity instruments Interim dividends Reserve shares Net profit (loss) for the year Net equity  Group net equity  Net equity attributable to minority interests 
 A) Ordinary shares  B) Other  A) Retained earnings  B) Other
Net equity at 31.12.2019   117.127    - 0   57.062    700.809    25.644    4.153    50.000    - 0 - 45.185    274.894    1.184.504    1.184.258    246 
Change in opening balances   - 0   - 0   - 0   - 0   14  - 14    - 0   - 0   - 0   - 0   - 0   - 0   - 0
Amount at 01.01.2020   117.127    - 0   57.062    700.809    25.658    4.139    50.000    - 0 - 45.185    274.894    1.184.504    1.184.258    246 
Allocation of net profit for the previous year:   -   0   -   0 - 1.656      -   0   -   0   -   0   -   0   -   0 - 274.894    - 276.550  - 276.550    - 0
- Reserves    -   0   -   0   -   0 - 25      -   0   -   0   -   0   -   0   -   0   25      - 0   - 0   - 0
- Dividends and other allocations   -   0   -   0   -   0 - 1.631      -   0   -   0   -   0   -   0   -   0 - 274.919    - 276.550  - 276.550    - 0
Change in reserves   -   0   -   0   -   0 - 14      176    - 1      -   0   -   0   -   0   -   0   161    161    - 0
Transactions on net equity:   -   0   -   0 - 1.196    - 104.631      3.648      -   0   -   0   -   0 - 19.637      -   0 - 121.816  - 121.816    - 0
- Issue of new shares   -   0   -   0 - 1.196      -   0 - 5.151      -   0   -   0   -   0   6.347      -   0   - 0   - 0   - 0
- Purchase of treasury shares   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0 - 25.984      -   0 - 25.984  - 25.984    - 0
- Interim dividends   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   - 0   - 0   - 0
- Extraordinary dividends   -   0   -   0   -   0 - 104.631      -   0   -   0   -   0   -   0   -   0   -   0 - 104.631  - 104.631    - 0
- Change in equity instruments   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   - 0   - 0   - 0
- Derivatives on treasury shares   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   - 0   - 0   - 0
- Stock options   -   0   -   0   -   0   -   0   8.799      -   0   -   0   -   0   -   0   -   0   8.799    8.799    - 0
- Change in ownership interests   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   -   0   - 0   - 0   - 0
Comprehensive income   - 0   - 0   - 0   - 0   - 0 - 3.539    - 0   - 0   - 0   323.107    319.568    319.501    67 
Net equity at 31.12.2020   117.127    - 0   55.866    594.508    29.482    599    50.000    - 0 - 64.822    323.107    1.105.867    1.105.554    313 
Group net equity   116.852    - 0   55.866    594.551    29.482    522    50.000    - 0 - 64.822    323.103    1.105.554    - 0
Net equity attributable to minority interests   275      -   0   -   0 - 43      -   0   77      -   0   -   0   -   0   4      313    - 0   - 0
Indirect method (thousands of Euro) 31.12.2022 31.12.2021
A. OPERATING ACTIVITIES
1. Operations 245.990 355.816
Net profit (loss) for the year 212.973 323.107
Gain/loss on HFT financial assets and other assets and liabilities measured
at fair value through profit or loss 11.263 -3.284
Gain/loss on hedging assets -1.561 -415
Net adjustments/reversals due to credit risk 8.334 2.524
Net adjustments/reversals of property, equipment and intangible assets 36.668 35.654
Net provisions for liabilities and contingencies and other costs/revenues 24.242 39.780
Taxes, duties and tax credits not paid 15.269 -35.153
Adjustments/Reversals of discontinued operations -158 0
Other adjustments -61.040 -6.397
2. Liquidity generated by/used for financial assets (+/-) -1.983.209 -1.917.951
HFT financial assets 4.560 1.584
Financial assets designated at fair value 0 0
Other financial assets mandatorily measured at fair value -107.611 -360.847
Financial assets measured at fair value through other comprehensive income 1.406.025 174.788
Financial assets measured at amortised cost: -3.216.662 -1.756.116
Loans to banks -1.396.723 -617.683
Loans to customers -1.819.939 -1.138.433
Other assets -69.522 22.640
3. Liquidity generated by/used for financial liabilities (+/-) 1.145.086 2.734.543
Financial liabilities measured at amortised cost: 1.091.169 2.739.980
Due to banks -283.747 225.774
Due to customers 1.374.916 2.514.206
Securities issued 0 0
HFT financial liabilities -4.551 -1.551
Financial liabilities designated at fair value 0 0
Other liabilities 58.468 -3.886
Net liquidity generated by/used for operating activities -592.133 1.172.408
A. INVESTING ACTIVITIES
1. Liquidity generated by 133 0
Disposal of equity investments 0 0
Dividends received 0 0
Disposal of property and equipment 0 0
Disposal of intangible assets 0 0
Disposal of subsidiaries and business units 133 0
2. Liquidity used for -20.634 93.363
Purchase of equity investments -796 -597
Purchase of property and equipment -1.376 -1.996
Purchase of intangible assets -18.462 -12.968
Purchase of subsidiaries and business units 0 108.924
Net liquidity generated by/used for investing activities -20.501 93.363
C. FUNDING ACTIVITIES
Issue/purchase of treasury shares -24.385 -25.984
Issue/purchase of equity instruments 0 0
Distribution of dividends and other -209.076 -285.396
Disposal/Purchase of controlling interests 0 0
Net liquidity generated by/used for funding activities -233.461 -311.380
NET LIQUIDITY GENERATED/USED IN THE YEAR -846.095 954.392
Reconciliation
Cash and cash equivalents at year-start 1.620.334 665.942
Total liquidity generated/used in the year -846.095 954.392
Cash and cash equivalents – effects of exchange rate fluctuations 0 0
Cash and cash equivalents at year-end 774.239 1.620.334
Legend
+ liquidity generated
(-) liquidity used

Sustainability

In line with its vision statement and purpose, Banca Generali continues to reiterate its commitment towards sustainability issues, also referred to in the documents guiding and reflecting Banca Generali ‘s sustainable approach, such as the Sustainability Commitment Charter and the Sustainability Policy. In line with this path, the Bank constantly considers the interests of its stakeholders and the economic, environmental and social impacts of its activities when formulating its company strategy and designing its policies.

1.499

PROVIDERS

33 new suppliers

RELEVANT QUALIFIED

135.825

EUROS OF PURCHASES

84,16%

OF PURCHASES FROM ITALIAN SUPPLIERS

-10% / -15%

DIRETTE (SCOPE 1, 3 E 2)

100%

ELECTRICITY FROM RENEWABLE SOURCES

51%

ECOLOGY AND CERTIFIED WHITE PAPER

> 95%

RECYCLING INDEX

-43%

CARBON FOOTPRINT OF INVESTMENTS VS 2019 BASELINE

2.204

CONSULTANTS

37,3 mln

MANAGED BY EACH CONSULTANT

133.072 h

OF TRAINING (61 AVERAGE HOURS PER CONSULTANT)

2,6 milioni

net inflow per capita

23%

OF THE NETWORK WITH ADVANCED ESG TRAINING

341.732 customers

(+3% vs 2021 )

€ 82,2 mrd

(assoreti perimeter)

22,5% of customers

with at least 4 products

1.022

EMPLOYEES
(49% WOMEN – 51% MEN)

60.153 h

OF TRAINING

100%

employees enabled to work remotely

45 anni

AVERAGE AGE OF EMPLOYEES

Target
2022 – 2024

We are now preparing for a new phase of sharp growth for our Bank, leveraging our strengths: the quality of our professionals, an innovation-oriented culture and a commitment to sustainability. The strategy aimed at achieving ambitious targets is based on three pillars: the first one aims at bringing the Bank closer to our professionals and our Clients, thanks to the evolution of our offering and service model and a growing support to the network. The second one is based on the creation of a data-driven, digital and open Bank. The third pillar aims at strengthening the Bank’s positioning in sustainability, becoming the point of reference on ESG themes for all our stakeholders. This plan is centred on our people, the core of our company and a differentiating element in the market. Banca Generali’s extraordinary success story has been written by all its people: the same people who, with renewed enthusiasm, passion and motivation, will participate in these new challenges oriented towards sustainable growth.”

Gian Maria Mossa, Chief Executive Officer and General Manager

Value of Service

Attracting and introducing new Client segments to the world of advisory and to the Company’s range of solutions with increasingly personalised offerings and service models that may be scaled by its Financial Advisors

Innovation

Leveraging our ‘Open Banking’ model to expand the ecosystem of platform and digital tools to create e range of solutions even more tailored to the needs of our Financial Advisors and our Clients

Sustainability

Starting from transparency, efficiency and service quality, the aim is to increase the sustainable approach by setting new, ambitious targets, respecting the environment and the individuals and pursuing the objective of creating value for all our stakeholders

EMISSIONS GHG 2021 – 2022

Electrical power 20% (2022) vs. 46% (2021)

All the electrical power consumed is derived from renewable sources

Heat 23% (2022) vs. 14% (2021)

The Milan office is connected to a district heating network that supplies hot water for space heating and sanitary applications

Natural Gas 24% (2022) vs. 21% (2021)

At the site in Trieste, natural gas is used both for heating and for air-conditioning in the summer season

Waste 174,8 quintals (2022) vs 78,6 (2021)

We conducted a number of campaigns to raise awareness amongst its employees of the issue of proper waste management and sorting

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