ANNAUAL
INTEGRATED
REPORT
2020

Financial Highlights

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NET AUM AND INSURANCE INFLOWS
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NET INFLOWS
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NET PROFIT
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AUM
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NET COMMISSIONS
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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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SMART WORKING
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CO2 EMISSIONS
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GROSS GLOBAL ADDED VALUE DISTRIBUTED

Letter to Stakeholders

Dear Stakeholders,

In 2020, Italy and the rest of the world suffered a setback of a nature and severity no one could have ima- gined. Italy has paid, and continues to pay, a considerable price in human lives as a result of the pandemic.

Our first thought goes to the victims and their families, together with our gratitude for all those who are on the front lines in the fight against the virus — above all doctors and other health personnel.

Read more

Giancarlo Fancel
CHAIRMAN

Performances

In 2020, net profit amounted to 274.9 million euros (+1%), further improving the previous year’s excellent results, with growth across all the main items, fully in line with the thre- e-year plan targets, in terms of both business expansion and revenue diversification and sustainability.

Growth was mostly driven by the rise in total assets, which amounted to 74.5 billion euros with an 8% increase, attributable to a strong and high quality service model that — despite an unprecedented context due to the outbreak of the Covid-19 pandemic — effectively responded to the clients’ increased demand for financial and non-financial wealth advisory, particularly in the private banking segment.

Net inflows in 2020 were 5.9 billion euros, up 14.3% compared to the previous year, despite the lockdown and the social distancing measures adopted for most of the year. Net inflows were mainly concentrated on managed solutions (3.2 billion euros; +70.7%), including in parti- cular the Lux IM Sicavs, and on insurance and financial wrappers due to the high level of cu- stomisation they provide. Among managed products, in 2020 ESG managed solutions (funds and asset management) reported 1.1 billion euros net inflows, half of which in the last quarter of the year.

Assets under Advisory (BGPA) also grew by 27% to 6.0 billion euros (4.7 billion euros at the end of 2019), accounting for 8.1% of total assets.

With reference to capital, Banca Generali confirmed the soundness of its regulatory aggregates. CET 1 ratio reached 17.1% and Total Capital Ratio was 18.4%

Results by line of business

 

Net interest incomeNet feesNet banking income
TOTAL89.644508.030617.613
CORPORATE CENTER75.12179.992175.133
CGU WEALTH MANAGEMENT5.206125.970131.095
CGU PRIVATE BANKING9.317302.067311.384

Direct net inflows

 

(MIGLIAIA DI EURO)31.12.202031.12.2019AMOUNT%
1. Current accounts and sight deposits10.440.8989.982.548458.350+4,6%
2. Term deposits---n.a.
3. Financing144.937116.21828.719+24,7%
Repurchase agreements144.937116.21828.719+24,7%
4. Other debts322.632310.41312.219+3,9%
IFRS 16-related lease liabilities148.952158.064-9.112-5,8%
Operating debts to sales network122.752110.45512.297+11,1%
Other debts (money orders, amounts at the disposal of customers)50.92841.8949.034+21,6%
Total due to customers10.908.46710.409.179499.288+4,8%
(€ THOUSAND)31.12.202031.12.2019AMOUNT%
Inflows from Parent Company25.23527.499-2.264-8,2%
Inflows from other subsidiaries of the Generali Group236.703327.856-91.153-27,8%
IFRS 16-related lease financial liabilities71.19174.499-3.308-4,4%
Total inflows from Generali Group333.129429.854-96.725-22,5%
Inflows from other parties10.575.3389.979.325596.013+6,0%
of which: current accounts10.179.5409.627.779551.761+5,7%
Total inflows from customers10.908.46710.409.179499.288+4,8%

Indirect net inflows

 

BG GROUPY/Y CHANGES VS 31.12.2019
(€ MILLION)31.12.202031.12.2019AMOUNT%
BG Group funds and Sicavs1.3441.059+285+26,9%
Third-party funds and Sicavs825583+242+41,5%
Financial wrappers119-322+441+137,0%
Insurance wrappers894544+35064,3%
Total assets under management3.1821.864+1.318+70,7%
Total traditional life insurance policies 203935-732-78,3%
Total AUC2.4812.331150+6,4%
Total net inflows from products placed by the network5.8665.13073614,3%

Group economic and financial highlights

 

(MILLION €)31.12.202031.12.2019CHANGE %
Net interest income90.08074.278+21,3%
Net income (loss) from trading activities17.69511.302-
Dividends240.645215.504+11,7%
of which: dividends from equity investments238.320212.613+12,1%
Net financial income348.420301.084+15,7%
Fee income620.305581.992+6,6%
Fee expense-385.806-363.135+6,2%
Net fees234.499218.857+7,1%
Net banking income582.919519.941+12,1%
Staff expenses-90.066-86.485+4,1%
Other general and administrative expenses-90.584-88.238+2,7%
Net adjustments of property, equipment and intangible assets-31.502-28.833+9,3%
Other operating expenses/income4.2835.123-16,4%
Net operating expenses-207.869-198.433+4,8%
Operating result375.050321.508+16,7%
Net adjustments for non-performing loans-264-5.387-95,1%
Net provisions-30.820-24.274+27,0%
Contributions and charges related to the banking system-11.282-8.222+37,2%
Gains (losses) from the disposal of equity investments-1.363-2.321-41,3%
Operating profit before taxation331.321281.304+17,8%
Income taxes for the year of current operations-42.114-32.946+27,8%
Net profit289.207248.358+16,4%

Financial statements

Consolidated balance sheet

 

ASSETS (€ THOUSAND)31.12.202031.12.2019AMOUNT%
Financial assets at fair value through profit or loss48.45564.998-16.543-25,5%
Financial assets at fair value through other comprehensive income2.730.0982.778.836-48.738-1,8%
Financial assets at amortised cost9.657.3808.206.5251.450.855+17,7%
a) Loans to banks1.236.5561.130.690105.866+9,4%
b) Loans to customers8.420.8247.075.8351.344.989+19,0%
Equity investments1.7172.061-344-16,7%
Property, equipment and intangible assets288.598298.354-9.756-3,3%
Tax receivables49.84651.168-1.322-2,6%
Other assets400.895363.63437.261+10,2%
Total assets13.176.98911.765.5761.411.413+12,0%
LIABILITIES (€ THOUSAND)31.12.202031.12.2019AMOUNT%
Financial liabilities at amortised cost11.506.59610.503.9861.002.610+9,5%
a) Due to banks598.12994.807503.322n.a.
b) Due to customers10.908.46710.409.179499.288+4,8%
Financial liabilities held for trading and hedging69.4048.68560.719n.a.
Tax liabilities42.51613.61828.898+212,2%
Other liabilities181.697147.09734.600+23,5%
Special purpose provisions192.272174.52217.750+10,2%
Valuation reserves4.1393.813326+8,5%
Equity instruments50.00050.000--
Reserves726.471454.465272.006+59,9%
Share premium reserve57.06257.729-667-1,2%
Share capital116.852116.852--
Treasury shares (-)-45.185-37.356-7.829+21,0%
Net equity attributable to minority interests24626220n.a.
Net profit (loss) for the year (+/-)274.919272.1392.780+1,0%
Total net equity and liabilities13.176.98911.765.5761.411.413+12,0%

 

Consolidated profit and loss account

 

 

(€ THOUSAND)31.12.202031.12.2019
Interest income and similar revenues574.108525.400
Interest expense and similar charges48.45564.998
Net interest income3.61918.298
Fee income44.83646.700
Fee expense2.730.0982.778.836
Net fees9.108.4007.703.082
Dividends and similar income687.576627.247
Net income (loss) from trading activities8.420.8247.075.835
Net income (loss) from hedging2.4864.727
Gain (loss) on disposal or repurchase of:1.7172.061
a) financial assets at amortised cost152.676164.219
b) financial assets at fair value through other comprehensive income135.922134.135
Net income (loss) from financial assets and liabilities at fair value through profit and loss:86.97386.919
b) other financial assets mandatorily measured at fair value49.84651.168
Net banking income1.0803.673
Net adjustments/reversals due to credit risk relating to:48.76647.495
a) financial assets at amortised cost373.281336.950
b) financial assets at fair value through other comprehensive income13.176.98911.765.576
Net income (loss) from trading activities--
General and administrative expenses:31.12.202031.12.2019
a) staff expenses11.506.59610.503.986
b) other general and administrative expenses598.12994.807
Net provisions for liabilities and contingencies:10.908.46710.409.179
a) commitments and guarantees issued1.5511.204
b) other net provisions67.8537.481
Net adjustments/reversals of property and equipment42.51613.618
Net adjustments/reversals of intangible assets29.1741.690
Other operating expenses/income13.34211.928
Operating expenses181.697147.097
Gains (losses) from equity investments4.9365.153
Gains (losses) on disposal of investments187.336169.369
Net profit before income taxes124108
Income taxes for the year on operating activities3.7513.854
Net profit after income taxes183.461165.407
Net profit for the year4.1393.813
Net profit (loss) for the year attributable to minority interests50.00050.000
Net profit (loss) for the year attributable to the Parent Company726.471454.465
Share premium reserve57.06257.729
Capital116.852116.852
Own actions (-)-45.185-37.356
Equity attributable to non-controlling interests (+/-)24626
Profit (loss) for the year (+/-)274.919272.139
Total liabilities and shareholders' equity13.176.98911.765.576

Consolidates statement of comprehensive income

 

(€ THOUSAND)20202019
Net profit for the year274.894272.122
Other income net of income taxes, without transfer to Profit and Loss Account--
Equity securities at fair value through other comprehensive income 70. Defined benefit plans-210-300
Other income net of income taxes, with transfer to Profit and Loss Account-31882
Exchange differences--
Financial assets (other than equity securities) at fair value through other comprehensive income-23
Total other income net of income taxes86215.826
Comprehensive income33215.611
Consolidated comprehensive income attributable to minority interests 275.226287.733
Consolidated comprehensive income attributable to the Parent Company-21-8
Net profit for the year275.247287.741

Consolidated statement of chance in equity

 

SHARE CAPITALRESERVES
(€ THOUSAND)A) ORDINARY SHARESB) OTHERSHARE PREMIUM RESERVEA) RETAINED EARNINGSB) OTHERVALUATION RESERVESEQUITY INSTRU-MENTSINTERIM DIVIDENDSRESERVE SHARESNET PROFIT (LOSS) FOR THE YEARNET EQUITYGROUP NET EQUITYNET EQUITY ATTRIBU- TABLE TO MINORITY INTERESTS
Net equity at 31.12.2019116.879-57.729430.45924.0133.82250.000--37.356272.122917.668917.64226
Change in opening balances-------------
Amount at 01.01.2020116.879-57.729430.45924.0133.82250.000--37.356272.122917.668917.64226
Allocation of net profit for the previous year:--270.490------272.122-1.632-1.632-
- Reserves---272.122------272.122---
- Dividends and other allocations----1.632-------1.632-1.632-
Change in reserves----140192-1----5158-7
Transactions on net equity:248--667-1.439----7.829--6.809-7.057248
- Issue of new shares248--667--4.192---4.859-248-248
- Purchase of treasury shares---------12.688--12.688-12.688-
- Interim dividends-------------
- Extraordinary dividends-------------
- Change in equity instruments-------------
- Derivatives on treasury shares-------------
- Stock options----5.631-----5.6315.631-
- Change in ownership interests------------
Comprehensive income-----332---274.894275.226275.247-21
Net equity at 31.12.2020117.127-57.062700.80925.6444.15350.000--45.185274.8941.184.5041.184.258246
Group net equity116.852-57.062700.82725.6444.13950.000--45.185274.9191.184.258--
Net equity attributable to minority interests275---18-14----25246--

Consolidated cash flow statement

 

INDIRECT METHOD (€ THOUSAND)20202019
A. OPERATING ACTIVITIES
1. Operations341.748234.634
Net profit (loss) for the year274.894272.122
Gain/loss on HFT financial assets and other assets and liabilities at fair value through profit or loss4.090402
Gain/loss on hedging assets144-18
Net adjustments/reversals due to credit risk6625.387
Net adjustments/reversals of property, equipment and intangible assets32.95829.955
Net provisions for liabilities and contingencies and other costs/revenues 18.0145.539
Taxes, duties and tax credits not paid30.617-12.997
Adjustments/reversals of discontinued operations--
Other adjustments-19.631-65.756
2. Liquidity generated by/used for financial assets (+/-)-1.305.861-2.220.111
HFT financial assets15.74317.686
Financial assets at fair value--
Other financial assets mandatorily measured at fair value-8528.774
Financial assets at fair value through other comprehensive income50.435-756.231
Financial assets at amortised cost:-1.338.075-1.480.277
Loans to banks-57.856-181.070
Loans to customers-1.280.219-1.299.208
Other assets-33.111-10.063
3. Liquidità generata/assorbita dalle passività finanziarie (+/-)1.043.0811.656.845
Financial liabilities at amortised cost: 982.8561.651.567
Due to banks505.968-34.278
Due to customers476.8881.685.845
Securities issued--
HFT financial liabilities-1.204-384
Financial liabilities at fair value--
Other liabilities61.4295.662
Net liquidity generated by/used for operating activities78.968-328.632
B.INVESTING ACTIVITIES
1.Liquidity generated by-294-
Disposal of equity investments--
Dividends received--
Disposal of property and equipment --
Disposal of intangible assets--
Disposal of subsidiaries and business units-294-
2.Liquidity used for-15.275-46.174
Purchase of equity investments--2.002
Purchase of property and equipment -1.194-3.175
Purchase of intangible assets-14.081-14.290
Purchase of subsidiaries and business units--26.707
Net liquidity generated by/used for investing activities-15.569-46.174
C.FUNDING ACTIVITIES
Issue/purchase of treasury shares-12.440-17.785
Issue/purchase of equity instruments050.000
Distribution of dividends and other -2.251-144.900
Disposal/Purchase of controlling interests--
Net liquidity generated by/used for funding activities-14.691-112.685
NET LIQUIDITY GENERATED/USED IN THE YEAR48.708-487.491
Reconciliation
Cash and cash equivalents at year-start525.4001.012.891
Total liquidity generated/used in the year48.708-487.491
Cash and cash equivalents – effects of exchange rate fluctuations--
Cash and cash equivalents at year-end574.108525.400

Sustainability

People are one of the six pillars of the 2019-2021 Strategic Plan launched by Banca Generali and one of the key elements on which the Banking Group bases the pursuit of its strategic objectives.
Accordingly, in 2020 Banca Generali continued to devote close attention to investments in the development, growth and management of its individuals, by spreading a company culture founded on shared values, leveraging diversity and inclusion.
Covid-19 pandemic, which marked 2020, has placed the theme of Human Capital even more at the centre, identifying the protection of human resources and their development as the two main priorities for ensuring business continuity.

Banca Generali and the environmental issues

Direct (scope 1) 286 tCO2eq
Indirct (scope 2 e 3) 1.044 tCO2eq

100% eletctricity
from renewable sources

81% white paper
green and certified

96,8%
Recycling index

Banca Generali and its People

49% women | 51% men
962 employees

48.805 total
training hours

over 850 employees
enabled to work remotely

Average
employee age

Banca Generali Banca Generali and its suppliers

1.464
suppliers

12 new
relevant qualified suppliers

107.587 thousand euros
in purchases

91,64% of the procurement value towards Italian suppliers

Banca Generali and its customers

311.947 customers
(+4,3% ) vs 2019

€ 73,3
billion euros
(AUM perimeter Assoreti)

21,3% of customers
with at least 4 products

96,3%
Customer retention rate

Banca Generali and the Distribution Network

2.087 consultants

35,1 million euros
managed on average by each Financial Advisor

112.771 
training hours

2,8 millions euro
per-capita net inflows

2020 TARGET

-25%

PER CAPITA ELECTRICAL POWER
consumption

-25%

NATURAL GAS AND DIESEL OIL
consumption

-15%

PAPER consumption

(95% of ecological paper )

-15%

WATER
consumption

2019-2020 GHG EMISSON BREAKDOWN (%)

2020

2019

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