Annual Integrated Report 2021

“Business expansion, development of sustainable profitability and confirmation of generous shareholder remuneration were the strategic guidelines of reference. All our goals have not only been achieved, but far exceeded.”

Antonio Cangeri, Banca Generali President

Financial Highlights

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 INFLOWS

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NET PROFIT

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AUM

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FINANCIAL CONSULTANTS

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NET EQUITY

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OPERATING RESULT

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TIER 1

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EMPLOYEES
(of which 49% women)

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SMART WORKING

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CO2 EMISSIONS

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GROSS GLOBAL ADDED VALUE DISTRIBUTED

Letter to stakeholder

Dear stakeholder,

Dear Stakeholders, Banca Generali achieved important results in 2021 despite the continuing pandemic. Social and economic life in Italy and the world resumed thanks to the fundamental contribution of science through the discovery of vaccines.

The Italian economy ended 2021 with a 6.5% increase in GDP, buoyed by improvement in the job market and consumer spending. This growth is the most robust of European countries, where it averages 5.2%.

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Presidente Antonio Cangeri

Performances

Performances

Financial year 2021 closed with a consolidated net profit posi of 323.1 million euros, up 18% compared to the previous year. This result marks a new all-time high in the Bank’s growth path, testifying to the successful achievement of the 2019-2021 Plan targets, focused on business expansion, revenue diversification and sustainability.

Net profit improved constantly: the recurring component totalled 176.6 million euros, up 15% compared to the previous year, thanks to the sharp increase in total assets and their improved mix, which drove robust revenue growth. Cost discipline and the business model scalability further supported recurring operating growth.

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Net interest income Net fees Net banking income
Total 83.334 667.309 698.687
Corporate Center 59.984 118.616 126.645
CGU Wealth Management 8.363 167.345 175.708
CGU Private Banking 14.987 381.347 396.334
(€ THOUSANDS) 31.12.2021 31.12.2020 AMOUNT %
1. Current accounts and sight deposits 13.231.340 10.440.898 2.790.442 26,70%
2. Term deposits - - - n.a.
3. Financing 7.441 144.937 -137.496 -94,90%
Repurchase agreements - 144.937 -144.937 -100,00%
Other (collateral margins) 7.441 - 7.441 n.a.
4. Other debts 354.839 322.632 32.207 10,00%
IFRS 16 - related lease liabilities 156.363 148.952 7.411 5,00%
Operating debts to sales network 157.980 122.752 35.228 28,70%
Other debts (money orders, amounts at the disposals of customers) 40.496 50.928 -10.432 -20,50%
Total due to customers 13.593.620 10.908.467 2.685.153 24,60%
(€ THOUSANDS) 31.12.2021 31.12.2020 AMOUNT %
Inflows from Parent Company 38.848 25.235 13.613 53,90%
Inflows from other subsidiaries of the Generali Group 455.997 236.703 219.294 92,60%
IFRS 16-related lease financial liabilities 77.778 71.191 6.587 9,30%
Total inflows from Generali Group 572.623 333.129 239.494 71,90%
Inflows from other parties 13.020.997 10.575.338 2.445.659 23,10%
of which: current accounts 12.737.092 10.179.540 2.557.552 25,10%
Total inflows from customers 13.593.620 10.908.467 2.685.153 24,60%
GRUPPO BG Y/Y CHANGES VS 31.12.2021
(€ MILLION) 31.12.2021 31.12.2020 AMOUNT %
BG Group funds and Sicavs 1.267 1.344 -77 -5.7%
Third-party funds and Sicavs 1.655 825 830 100,60%
Financial wrappers 938 119 819 688,20%
Insurance wrappers 1.443 894 549 61,40%
Total assets under management 5.303 3.182 2.121 66,70%
Total traditional life insurance policies -487 203 -690 -339,90%
Total AUC 2.869 2.481 388 15,60%
Total net inflows from products placed by the network 7.685 5.866 1.819 31,00%
(€ THOUSANDS) 31.12.2021 31.12.2020 %
Net interest income 84.031 90.080 -6,7%
Net income (loss) from trading activities 27.710 17.695 56,6%
Dividends 334.634 240.645 39,1%
of which: dividends from equity investments 333.550 238.320 40,0%
Net financial income 446.375 348.420 28,1%
Fee income 740.506 620.305 19,4%
Fee expense -459.853 -385.806 19,2%
Net fees 280.653 234.499 19,7%
Net banking income 727.028 582.919 24,7%
Staff expenses -94.509 -90.066 4,9%
Other general and administrative expenses -99.555 -90.584 9,9%
Net adjustments of property, equipment and intagible assets -33.840 -31.502 7,4%
Other operating expenses/income 6.144 4.283 43,5%
Net operating expenses -221.760 -207.869 6,7%
Operating result 505.268 375.050 34,7%
Net adjustments to non-performing loans -1.959 -264 n.a.
Net provisions -45.381 -30.820 47,2%
Other one-off charges -80.628 - n.a.
Contributions and charges related to the banking system -15.475 -11.282 37,2%
Gains (losses) from the disposal of equity investments -20 -1.363 -98,5%
Operating profit before taxation 361.805 331.321 9,2%
Income taxes for the year of operating activities -19.558 -42.114 -53,6%
Net profit 342.247 289.207 18,3%

Financial statements

323.103

Net Profit for the year 2021)

274.919

Net Profit for the year 2020

+17,5% (y/y)

2021 vs. 2020

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(€ THOUSANDS) 2021 2020
Interest income and similar revenues 92,218 95,857
Interest expense and similar charges -8,884 -6,213
Net interest income 83,334 89,644
Fee income 1,163,203 924,117
Fee expense -474,447 -401,306
Net fees 688,756 522,811
Dividends and similar income 1,084 2,328
Net income (loss) from trading activities -73,426 6,045
Net income (loss) from hedging 2,088 -906
Gain (loss) on disposal or repurchase of: 18,154 15,293
a) financial assets measured at amortised cost 15,674 17,45
b) financial assets measured at fair value through other comprehensive income 2,48 -2,157
Net income (loss) from financial assets and liabilities measured 145 -2,821
at fair value through profit and loss:
b) other financial assets mandatorily measured at fair value 145 -2,821
Net banking income 720,135 632,394
Net adjustments/reversals due to credit risk relating to: -2,524 -662
a) financial assets measured at amortised cost -2,266 -779
b) financial assets measured at fair value through other comprehensive income -258 117
Net income (loss) from trading activities 717,611 631,732
General and administrative expenses: -311,634 -280,509
a) staff expenses -107,844 -104,272
b) other general and administrative expense -203,79 -176,237
Net provisions for liabilities and contingencies: -66,83 -45,609
a) commitments and guarantees issued 82 -17
b) other net provisions -66,912 -45,592
Net adjustments/reversals of property and equipment -21,949 -21,511
Net adjustments/reversals of intangible assets -13,705 -11,447
Other operating expenses/income 89,542 74,965
Operating expenses -324,576 -284,111
Gains (losses) from equity investments -266 -341
Gains (losses) on disposal of investments -23 10
Net profit before income taxes 392,746 347,29
Income taxes for the year on operating activities -69,639 -72,396
Net profit after income taxes 323,107 274,894
Net profit for the year 323,107 274,894
Net profit (loss) for the year attributable to minority interests 4 -25
Net profit (loss) for the year attributable to the Parent Company 323,103 274,919
(THOUSAND EURO) 2021 2020
Net profit for the year 323,107 274,894
Other income net of income taxes, without transfer to Profit and Loss Account
Equity securities designated at fair value through other comprehensive income -327 -210
Defined benefit plans 630 -318
Other income net of income taxes, with transfer to Profit and Loss Account
Exchange differences 494 -2
Financial assets (other than equity securities) measured at fair value through other comprehensive income -4,336 862
Total other income net of income taxes -3,539 332
Comprehensive income 319,568 275,226
Consolidated comprehensive income attributable to minority interests 67 -21
Consolidated comprehensive income attributable to the Parent Company 319,501 275,247
(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 - 57,062 700,809 25,644 4,153 50 - -45,185 274,894 1,184,504 1,184,258 246
Change in opening balances - - - - 14 -14 - - - - - - -
Amount at 01.01.2021 117,127 - 57,062 700,809 25,658 4,139 50 - -45,185 274,894 1,184,504 1,184,258 246
Allocation of net profit for the previous year: - - - -1,656 - - - - - -274,894 -276,55 -276,55 -
- Reserves  - - - -25 - - - - - 25 - - -
- Dividends and other allocations - - - -1,631 - - - - - -274,919 -276,55 -276,55 -
Change in reserves - - - -14 176 -1 - - - - 161 161 -
Transactions on net equity: - - -1,196 -104,631 3,648 - - - -19,637 - -121,816 -121,816 -
- Issue of new shares - - -1,196 - -5,151 - - - 6,347 - - - -
- Purchase of treasury shares - - - - - - - - -25,984 - -25,984 -25,984 -
- Interim dividends - - - - - - - - - - - - -
- Extraordinary dividends - - - -104,631 - - - - - - -104,631 -104,631 -
- Change in equity instruments - - - - - - - - - - - - -
- Derivatives on treasury shares - - - - - - - - - - - - -
- Stock options - - - - 8,799 - - - - - 8,799 8,799 -
- Change in ownership interests - - - - - - - - - - - - -
Comprehensive income - - - - - -3,539 - - - 323,107 319,568 319,501 67
Net equity at 31.12.2021  117,127 - 55,866 594,508 29,482 599 50 - -64,822 323,107 1,105,867 1,105,554 313
Group net equity 116,852 - 55,866 594,551 29,482 522 50 - -64,822 323,103 1,105,554
Net equity attributable to minority interests 275 - - -43 - 77 - - - 4 313
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 116,879 - 57,729 430,459 24,013 3,822 50 - -37,356 272,122 917,668 917,642 26
Change in opening balances - - - - - - - - - - - - -
Amount at 01.01.2020 116,879 - 57,729 430,459 24,013 3,822 50 - -37,356 272,122 917,668 917,642 26
Allocation of net profit for the previous year: - - - 270,49 - - - - - -272,122 -1,632 -1,632 -
- Reserves  - - - 272,122 - - - - - -272,122 - - -
- Dividends and other allocations - - - -1,632 - - - - - - -1,632 -1,632 -
Change in reserves - - - -140 192 -1 - - - - 51 58 -7
Transactions on net equity: 248 - -667 - 1,439 - - - -7,829 - -6,809 -7,057 248
- Issue of new shares 248 - -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 - - - - - 5,631 5,631 -
- Change in ownership interests - - - - - - - - - - - - -
Comprehensive income - - - - - 332 - - - 274,894 275,226 275,247 -21
Net equity at 31.12.2020 117,127 - 57,062 700,809 25,644 4,153 50 - -45,185 274,894 1,184,504 1,184,258 246
Group net equity 116,852 - 57,062 700,827 25,644 4,139 50 - -45,185 274,919 1,184,258
Net equity attributable to minority interests 275 - - -18 - 14 - - - -25 246
Indirect method (thousands of Euro) 2021 2020
A. OPERATING ACTIVITIES Restated
1. Operations 355,816 341,748
Net profit (loss) for the year 323,107 274,894
Gain/loss on HFT financial assets and other assets and liabilities measured -3,284 4,09
at fair value through profit or loss
Gain/loss on hedging assets -415 144
Net adjustments/reversals due to credit risk 2,524 662
Net adjustments/reversals of property, equipment and intangible assets 35,654 32,958
Net provisions for liabilities and contingencies and other costs/revenues 39,78 18,014
Taxes, duties and tax credits not paid -35,153 30,617
Adjustments/Reversals of discontinued operations - -
Other adjustments -6,397 -19,631
2. Liquidity generated by/used for financial assets (+/-) -1,917,951 -1,309,689
HFT financial assets 1,584 15,743
Financial assets designated at fair value - -
Other financial assets mandatorily measured at fair value -360,847 -852
Financial assets measured at fair value through other comprehensive income 174,788 50,435
Financial assets measured at amortised cost: -1,756,116 -1,341,903
Loans to banks -617,683 -61,684
Loans to customers -1,138,433 -1,280,219
Other assets 22,64 -33,111
3. Liquidity generated by/used for financial liabilities (+/-) 2,734,543 1,043,081
Financial liabilities measured at amortised cost: 2,739,980 982,856
Due to banks 225,774 505,968
Due to customers 2,514,206 476,888
Securities issued - -
HFT financial liabilities -1,551 -1,204
Financial liabilities designated at fair value - -
Other liabilities -3,886 61,429
Net liquidity generated by/used for operating activities 1,172,408 75,14
A. 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 93,363 -15,275
Purchase of equity investments -597 -
Purchase of property and equipment -1,996 -1,194
Purchase of intangible assets -12,968 -14,081
Purchase of subsidiaries and business units 108,924 -
Net liquidity generated by/used for investing activities 93,363 -15,569
C. FUNDING ACTIVITIES
Issue/purchase of treasury shares -25,984 -12,44
Issue/purchase of equity instruments - -
Distribution of dividends and other -285,396 -2,251
Disposal/Purchase of controlling interests - -
Net liquidity generated by/used for funding activities -311,38 -14,691
NET LIQUIDITY GENERATED/USED IN THE YEAR 954,392 44,88
Reconciliation
Cash and cash equivalents at year-start 665,942 621,062
Total liquidity generated/used in the year 954,392 44,88
Cash and cash equivalents – effects of exchange rate fluctuations - -
Cash and cash equivalents at year-end 1,620,334 665,942
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.

433 tCO2eq

Direct (scope 1) 

823 tCO2eq

Indirect (scope 2 e 3)

100%

electricity from
renewable sources

97%
white paper

green and certified

>95%

Recycling index

49% women | 51% men

986 employees

55.145 h

training hours

over 824 employees
enabled to work

 remotely

Average

employee age

1.494

suppliers

38 new relevant

qualified suppliers

117.528

thousand euros in purchases

91,4%

of the procurement value
towards Italian suppliers

331.646 customers

(+6,3% vs 2020 )

€ 84,6 billion euros

(AUM perimeter Assoreti)

21,7% of customers

with at least 4 products

95,9%

Customer retention rate

2.162

consultants

€ 39,2 million euros

managed on average by each Financial Advisor

131.867 h

training hours

€ 3,6 million euros

per-capita net inflows

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

2020 – 2021 GHG EMISSIONS

Electrical Power

46% (2021) vs. 46% (2020)

All the electrical power consumed is derived from renewable sources

Natural Gas

21% (2021) vs. 20% (2020)

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

Heat

14% (2021) vs. 27% (2020)

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

Waste

78,6 quintali (2021) vs 246,4 quintali (2020)

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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