ANNAUAL
INTEGRATED
REPORT
2019
Financial Highlights
Letter to Stakeholders
Dear Stakeholders,
2019 was an exciting year for the Bank, in terms of the numerous initiatives launched, as well as the
growth and the results achieved. During the year, the first steps were taken under the 2019-2021
Strategic Plan, with faster progress in many key areas and confirmation of the main objectives.
Despite a very positive overall performance, the market scenario was not entirely linear throughout the year: in fact, in early January and February 2019, it was extremely volatile, in continuity with the end of the previous year.

Giancarlo Fancel
CHAIRMAN
Performances
The Group closed 2019 with consolidated net profit of 272.1 million euros (+51.1%, the best result in the Bank’s history) and total assets reaching a new all-time high at 69.0 billion euros, thanks to the contribution of robust net inflows (5.1 billion euros), the positive effect of market performance (+4.2 billion euros) and the assets under management (2.2 billion euros) resulting from the acquisition of the Nextam Partners Group and the Swiss company BG Valeur S.A.
Among managed products, in particular, mention should be made of the excellent results achieved by the new sub-funds of the Luxembourg-based Sicav Lux IM, launched in April 2018, which reached an AUM volume of 10.7 billion euros (including data referring to institutional investors), marking an increase of nearly 67% on the end of the 2018.
With reference to capital, Banca Generali confirmed the soundness of its regulatory aggregates. CET1 ratio stood at 14.7% and Total Capital ratio was 16.1%.
(MILLION €) | 31.12.2019 | 31.12.2018 | CHANGE % |
---|---|---|---|
Net interest income | 74,0 | 60,0 | 23,4 |
Net income (loss) from trading activities and dividends | 14,2 | 24,1 | -41,2 |
Net fees (c) | 489,8 | 365,3 | 34,1 |
Net banking income | |||
Staff expenses | -97,2 | -84,2 | 15,4 |
Other net general and administrative expenses | -162,7 | -162,5 | 0,1 |
Amortisation and depreciation | -30,0 | -9,3 | 222,1 |
Other operating income and expenses | 68,7 | 59,4 | 15,6 |
Net operating expenses | |||
Operating result | |||
Provisions | -24,3 | -25,4 | -4,2 |
Adjustments | -5,4 | -7,3 | -26,1 |
Profit before taxation | 325,3 | 219,8 | 48,0 |
Net profit |
Net interest | Net income | Net banking income | |
---|---|---|---|
TOTALS | 74,015 | 489,810 | 577,998 |
CORPORATE CENTER | 58,577 | 78,525 | 151,295 |
CGU PRIVATE BANKING | 10,247 | 287,395 | 297,642 |
CGU WEALTH MANAGEMENT | 5,192 | 123,890 | 129,061 |
9,982,548 (thousand €) | |
116,218 (thousand €) |
BG GROUP | Y/Y CHANGES VS 31.12.2018 | |||
---|---|---|---|---|
(€ MILLION) | AMOUNT | |||
BG Group Funds and Sicavs | 1,059 | -130 | 1,189 | +915% |
Funds and Sicavs | 583 | 916 | -333 | -36% |
Financial wrappers | -322 | -78 | -244 | -313% |
Insurance wrappers | 544 | 1,040 | -496 | -48% |
Total assets under management | 1,864 | 1,748 | 116 | +7% |
Total traditional life insurance policy | 935 | 480 | 455 | +95% |
Total assets under administration and custody | 2,331 | 2,792 | -461 | -17% |
Total assets placed by the network | 5,130 | 5,020 | 110 | +2% |
Financial statements
(€ THOUSAND) | 31.12.2019 | 31.12.2018 |
---|---|---|
10. Cash and deposits | 525,400 | 1,012,891 |
20. Financial assets at fair value through profit or loss: | 64,998 | 90,640 |
a) HFT financial assets | 18,298 | 33,887 |
c) other financial assets mandatorily measured at fair value | 46,700 | 56,753 |
30. Financial assets at fair value through other comprehensive income | 2,778,836 | 1,987,315 |
40. Financial assets at amortised cost: | 7,703,082 | 6,174,298 |
a) loans to banks | 627,247 | 442,659 |
b) loans to customers | 7,075,835 | 5,731,639 |
50. Hedging derivatives | 4,727 | - |
70. Equity investments | 2,061 | 1,661 |
90. Property and equipment | 164,219 | 6,724 |
100. Intangible assets | 134,135 | 95,110 |
of which: | ||
- goodwill | 86,919 | 66,065 |
110. Tax receivables: | 51,168 | 52,799 |
a) current | 3,673 | 81 |
b) prepaid | 47,495 | 52,718 |
130. Other assets | 336,950 | 314,456 |
Total assets |
(€ THOUSAND) | 31.12.2019 | 31.12.2018 |
---|---|---|
10. Financial liabilities at amortised cost: | 10,503,986 | 8,675,596 |
a) due to banks | 94,807 | 128,725 |
b) due to customers | 10,409,179 | 8,546,871 |
20. HFT financial liabilities | 1,204 | 384 |
40. Hedging derivatives | 7,481 | - |
60. Tax liabilities: | 13,618 | 18,018 |
a) current | 1,690 | 11,734 |
b) deferred | 11,928 | 6,284 |
80. Other liabilities | 147,097 | 142,176 |
90. Employee termination indemnities | 5,153 | 4,831 |
100. Provisions for liabilities and contingencies: | 169,369 | 160,014 |
a) commitments and guarantees issued | 108 | 86 |
b) pensions and similar obligations | 3,854 | - |
c) other provisions | 165.407 | 159.928 |
120. Valuation reserves | 3,813 | -11,636 |
140. Equity instruments | 50,000 | - |
150. Reserves | 454,465 | 414,368 |
160. Share premium reserve | 57,729 | 57,889 |
170. Share capital | 116,852 | 116,852 |
180. Treasury shares (-) | -37,356 | -22,724 |
190. Net equity attributable to minority interests (+/-) | 26 | - |
200. Net profit (loss) for the year (+/-) | 272,139 | 180,126 |
Total net equity and liabilities |
(€ THOUSAND) | 2019 | 2018 |
---|---|---|
10. Interest income and similar revenues | 82,861 | 66,419 |
20. Interest expense and similar charges | -8,846 | -6,447 |
30. Net interest income | 74,015 | 59,972 |
40. Fee income | 881,014 | 741,666 |
50. Fee expense | -377,875 | -353,616 |
60. Net fees | 503,139 | 388,050 |
70. Dividends and similar income | 2,891 | 2,308 |
80. Net income (loss) from trading activities | 5,606 | 5,291 |
90. Net income (loss) from hedging | 18 | - |
100. Gain (loss) on disposal or repurchase of: | 5,839 | 16,042 |
a) financial assets at amortised cost | 315 | 2,606 |
b) financial assets at fair value through other comprehensive income | 5,524 | 13,436 |
110. Net income (loss) from financial assets and liabilities at fair value through profit and loss: | -181 | 478 |
b) other financial assets mandatorily measured at fair value | -181 | 478 |
120. Net banking income | 591,327 | 472,141 |
130. Net adjustments/reversals due to credit risk relating to: | -5,387 | -7,286 |
a) financial assets at amortised cost | -5,591 | -5,001 |
b) financial assets at fair value through other comprehensive income | 204 | -2,285 |
150. Net income (loss) from trading activities | 585,940 | 464,855 |
190. General and administrative expenses: | -259,900 | -246,721 |
a) staff expenses | -97,219 | -84,227 |
b) other general and administrative expense | -162,681 | -162,494 |
200. Net provisions for liabilities and contingencies: | -37,610 | -48,079 |
a) commitments and guarantees issued | -22 | 118 |
b) other net provisions | -37,588 | -48,197 |
210. Net adjustments/reversals of property and equipment | -20,145 | -1,559 |
220. Net adjustments/reversals of intangible assets | -9,810 | -7,742 |
230. Other operating expenses/income | 68,706 | 59,437 |
240. Operating expenses | -258,759 | -244,664 |
250. Gains (losses) from equity investments | -1,605 | -149 |
280. Gains (losses) on disposal of investments | -262 | -282 |
290. Profit from operating activities before income taxes | 325,314 | 219,760 |
300. Income taxes for the year on operating activities | -53,192 | -39,634 |
310. Net profit from operating activities after income taxes | 272,122 | 180,126 |
330. Net profit for the year | 272,122 | 180,126 |
340. Net profit (loss) for the year attributable to minority interests | -17 | - |
350. Net profit (loss) for the year attributable to the Parent Company | 272.139 | 180.126 |
(€ THOUSAND) | 2019 | 2018 |
10. Net profit for the year | 272,122 | 180,126 |
Other income net of income taxes, without transfer to Profit and Loss Account | ||
20. Equity securities at fair value through other comprehensive income | -300 | - |
70. Defined benefit plans | 82 | -52 |
Other income net of income taxes, with transfer to Profit and Loss Account | ||
110. Exchange differences | 3 | -18 |
140. Financial assets (other than equity securities) at fair value through other comprehensive income | 15,826 | -25,617 |
170. Total other income net of income taxes | 15,611 | -25,687 |
180. Comprehensive income | 287,733 | 154,439 |
190. Consolidated comprehensive income attributable to minority interests | -8 | - |
200. Consolidated comprehensive income attributable to the Parent Company | 287,741 | 154,439 |
SHARE CAPITAL | RESERVES | ||||||||||||
MINORITY INTERESTS |
|||||||||||||
Net equity at 31.12.2018 | 116,852 | - | 57,889 | 395,222 | 19,146 | -11,636 | - | - | -22,724 | 180,126 | 734,875 | 734,875 | - |
Change in opening balances | - | - | - | -9 | - | - | - | - | - | - | -9 | -9 | - |
Amount at 01.01.2019 | 116,852 | - | 57,889 | 395,213 | 19,146 | -11,636 | - | - | -22,724 | 180,126 | 734,875 | 734,875 | - |
Allocation of net profit for the previous year: | - | - | - | 35,226 | - | - | - | - | - | -180,216 | -144,900 | -144,900 | - |
- Reserves | - | - | - | 35,226 | - | - | - | - | - | -35,226 | - | - | - |
- Dividends and other allocations | - | - | - | - | - | - | - | - | - | -144,900 | -144,900 | -144,900 | - |
Change in reserves | 27 | - | - | 20 | 653 | -153 | - | - | 1 | - | 548 | 514 | 34 |
Transactions on net equity: | - | - | -160 | - | 4,214 | - | 50,000 | - | -14,633 | - | 39,421 | 39,421 | - |
- Issue of new shares | - | - | -160 | - | -2,993 | - | - | - | 3,153 | - | - | - | |
- Purchase of treasury shares | - | - | - | - | - | - | - | - | -17,786 | - | -17,786 | -17,786 | - |
- Interim dividends | - | - | - | - | - | - | - | - | - | - | - | - | - |
- Extraordinary dividends | - | - | - | - | - | - | - | - | - | - | - | - | - |
- Change in equity instruments | - | - | - | - | - | - | 50,000 | - | - | - | 50,000 | 50,000 | - |
- Derivatives on treasury shares | - | - | - | - | - | - | - | - | - | - | - | - | - |
- Stock options | - | - | - | - | 7,207 | - | - | - | - | - | 7,207 | 7,207 | - |
- Change in ownership interests | - | - | - | - | - | - | - | - | - | - | - | - | - |
- Comprehensive income | - | - | - | - | - | 15,611 | - | - | - | 272,122 | 287,733 | 287,741 | -8 |
Net equity at 31.12.2019 | 116,879 | - | 57,729 | 430,459 | 24,013 | 3,822 | 50,000 | - | -37,356 | 272,122 | 917,668 | 917,642 | 26 |
Group net equity | 116,852 | - | 57,729 | 430,452 | 24,013 | 3,813 | 50,000 | - | -37,356 | 272,139 | 917,642 | - | - |
Net equity attributable to minority interests | 27 | - | - | 7 | - | 9 | - | - | - | -17 | 26 | - | - |
(€ THOUSAND) | 2019 | 2018 |
---|---|---|
A. OPERATING ACTIVITIES | ||
Operations | 234,634 | 157,258 |
Net profit (loss) for the year | 272,122 | 180,126 |
Gain/loss on HFT financial assets and other assets and liabilities at fair value through profit or loss | 402 | -1,300 |
Gain/loss on hedging assets | -18 | - |
Net adjustments/reversals due to credit risk | 5,387 | 7,286 |
Net adjustments/reversals of property, equipment and intangible assets | 29,955 | 9,301 |
Net provisions for liabilities and contingencies and other costs/revenues | 5,539 | 9,568 |
Taxes, duties and tax credits not paid | -12,997 | -10,026 |
Adjustments/Reversals of discontinued operations | - | - |
Other adjustments | -65,756 | -37,697 |
2. Liquidity generated by/used for financial assets (+/-) | ||
HFT financial assets | 17,686 | 5,790 |
Financial assets at fair value | - | - |
Other financial assets mandatorily measured at fair value | 8,774 | 23,986 |
Financial assets at fair value through other comprehensive income | -756,231 | 947,451 |
Financial assets at amortised cost: | -1,480,277 | -1,327,680 |
Loans to banks | -181,070 | -65,877 |
Loans to customers | -1,299,208 | -1,261,803 |
Other assets | 10,063 | 54,661 |
3. Liquidity generated by/used for financial liabilities (+/-) | ||
Financial liabilities at amortised cost: | 1,651,567 | 808,485 |
Due to banks | -34,278 | -551,413 |
Due to customers | 1,685,845 | 1,359,898 |
Securities issued | - | - |
HFT financial liabilities | -384 | -206 |
Financial liabilities at fair value | - | - |
Other liabilities | 5,662 | -49,001 |
Net liquidity generated by/used for operating activities | -328,632 | 620,745 |
B. INVESTING ACTIVITIES | ||
- | - | |
Disposal of equity investments | - | - |
Dividends received | - | - |
Disposal of property and equipment | - | - |
Disposal of intangible assets | - | - |
Disposal of business units | - | - |
Purchase of equity investments | -2,002 | - |
Purchase of property and equipment | -3,175 | -1,995 |
Purchase of intangible assets | -14,290 | -11,041 |
Purchase of business units and equity investments in subsidiaries | -26,707 | - |
Net liquidity generated by/used for investing activities | -46,174 | -13,036 |
C. FUNDING ACTIVITIES | ||
Issue/purchase of treasury shares | -17,785 | -12,841 |
Issue/purchase of equity instruments | 50,000 | - |
Distribution of dividends and other | -144,900 | -145,474 |
Net liquidity generated by/used for funding activities | ||
NET LIQUIDITY GENERATED/USED IN THE YEAR | ||
Reconciliation | ||
Cash and cash equivalents at year-start | ||
Total liquidity generated/used in the year | -487,491 | 449,394 |
Cash and cash equivalents – effects of exchange rate fluctuations | - | - |
Cash and cash equivalents at year-end | 525,400 | 1,012,891 |
Sustainability
For the eleventh consecutive year, Banca Generali has decided to report its performances relating to topics of a strictly non-financial nature, in further confirmation of the fact that, for Banca Generali, sustainability is an important strategic lever capable of creating value over time.
The Bank believes that adopting this reporting approach will allow it to further consolidate the process of creating internal awareness of sustainability topics and communicating its strategy for creating value in the short, medium and long term, for the benefit of the Bank’s internal and external shareholders, in an increasingly effective and transparent manner.
Banca Generali and the environmental issues

Direct (scope 1) 276 tCO2eq
Indirct (scope 2 e 3) 1.127 tCO2eq

100% eletctricity
from renewable sources

90% white paper
green and certified

+4% unsorted waste collected
vs 2018 (in weight)
Banca Generali and its People

49% women | 51% men
950 employees

48.021 total
training hours

4.715 days
of smart working

Average
employee age
Banca Generali Banca Generali and its suppliers

1.767
suppliers

32 suppliers
vs 2018

102 million euros
in purchases

93% of the procurement value towards Italian suppliers
Banca Generali and its customers

299.090
customers

€ 66,8
billion euros

20% of customers
with at least 4 products

Over 500
events organized
Banca Generali and the Distribution Network

2.040 financial advisors
18% women | 82% men

32,8 million euros
managed on average by each Financial Advisor

122.696 total
training hours

2,5 millions euro
per-capita net inflows
2020 TARGET

-25%
PER CAPITA ELECTRICAL POWERconsumption

-25%
NATURAL GAS AND DIESEL OIL
consumption

-15%
PAPER consumption
(95% of ecological paper )

-15%
WATER
consumption
2018-2019 GHG EMISSON BREAKDOWN (%)