AT A GLANCE
6 A n n u a l R e p o r t 2 0 1 0
2010 2009 2008 2007 2006
CUSTOMER FINANCIAL ASSETS
Net inflows into managed assets (€m) 4,234 2,928 (3,850) (892) 681 Total net inflows (€m) 1,901 2,804 345 1,617 1,818 Client Assets (€m) 71,591 67,801 60,507 68,574 67,591
Personal Financial Advisers (no.) 4,349 4,292 4,209 4,280 4,216
Employees 1,475 1,485 1,467 1,461 1,304
Personal Financial Advisers' offices (no.) (*) 325 352 352 351 350
Branches (no.) 97 97 97 97 94
CONSOLIDATED FINANCIAL RESULTS
Consolidated net profit (€m) 211.6 178.4 176.1 255.5 224.4 Consolidated shareholders' equity (€m) 749.2 764.3 513.0 850.3 760.3 Basic consolidated net earnings per share (€) 0.216 0.182 0.180 0.231 0.232
Dividend (€) 0.120 0.104 0.098 0.210 0.209
R.O.E. (%) 28.0 27.9 25.8 31.7 30.9
Cost / Income Ratio (%) 47.5 53.5 52.6 47.3 49.5
Personnel expenses / Operating income before net impairment (%) 18.6 20.5 19.7 15.4 17.6 Net profit / Average Client Assets (%) 0.30 0.28 0.27 0.37 0.34
E.V.A. (€m) 177.8 144.8 128.9 202.0 182.2
Rating (Standard & Poor’s) Long term: A Short term: A-1 Outlook: Stable
Managed savings environment
Assets (source Bank of Italy)
2009 2008 2007 2006 2005
Household financial assets in Italy (HFA) 3,594 3,518 3,635 3,588 3,464
Managed assets (MA) 902 841 1,024 1,106 1,110
- Mutual funds 248 245 349 391 417
- Discretionary accounts 447 414 523 548 513
- Life insurance technical reserves (*) 381 339 362 371 355
- Pension funds (*) 49 41 39 37 35
- Adjustments (223) (198) (249) (241) (210)
MA as % of HFA 25% 24% 28% 31% 32%
Flows (source Bank of Italy)(€bn)
Household financial assets in Italy (HFA) 69 80 97 110 157
Managed assets (MA) 18 (150) (137) (9) 68
- Mutual funds (7) (80) (51) (39) (4)
- Discretionary accounts 7 (94) (24) 27 35
- Life insurance technical reserves (*) 42 (23) (9) 16 42
- Pension funds (*) 8 1 4 3 4
- Adjustments (32) 46 (57) (16) (9)
MA as % of HFA 26% n.s. n.s. n.s. 43%
n.s.: not significant
8 A n n u a l R e p o r t 2 0 1 0
Board of Auditors
of the Company
Salvatore Maccarone Chairman
Angelo Caloia Deputy Chairman
Matteo Colafrancesco Managing Director Alessandro Barberis Director
Caterina Bima Director
Franca Cirri Fignagnani Director Oscar Giannoni Director
Cesare Imbriani Director
Piero Luongo Director
Giampietro Nattino Director Giuseppe Russo Director
Danilo Intreccialagli Secretary of the Board of Directors
Vincenzo Mezzacapo Chairman Carlo Angelini Statutory Auditor Lorenzo Ginisio Statutory Auditor Alessandro Cotto Acting Auditor Ruggero Ragazzoni Acting Auditor Cesare Imbriani Chairman Franca Cirri Fignagnani Member
Giuseppe Russo Member
Matteo Colafrancesco General Manager
100% Fideuram Fiduciaria
50% Fideuram Investimenti SGR
100% Sanpaolo Invest SIM
100% Fideuram Asset Management (Ireland)
100% Sanpaolo Invest (Ireland)
99% Fideuram Bank (Luxembourg)
99% Fideuram Bank (Suisse)
94% Fideuram Gestions
THE TIME OF VALUE
2010 marked the end of an extremely complex three-year period for the global economic system.
Since the second half of 2008 the world has been in the grip of the most serious financial crisis the modern era has seen. At times it seemed as if the entire financial and economic system of the developed countries was about to collapse under the weight of a crisis born of excesses and laissez-faire policies that had been practiced and tolerated for years. We were all very concerned, but also confident that the system would get back on its feet, partly thanks to the substantial supporting actions taken by national governments and supranational bodies. At the same time, greater regulatory rigour put the brakes on the at times unconventional practices - pursued in the unbridled pursuit of profit - that were undermining the foundations of the financial sector with strong repercussions for the real economy.
In 2010, there were, as we expected, major signs of recovery. Global GDP returned to substantial growth, which was undeniably stronger in the emerging economies, but still significant in the developed countries, reaching pre-crisis levels. There are positive signs, then, although growth continues to be dampened by still-weak demand and unemployment that has in many countries risen to its highest levels in a decade. The effects of the crisis can still be felt, above all in those countries with high public debt, such as Greece, Portugal and Ireland. We are in a scenario of light and shadows, requiring close attention by all.
2010 saw us engaged in actions to support our mission: to offer financial and insurance advisory services to families, acting with total transparency and complete respect for the rules.
We advanced our basic advisory services model, aligning it with ongoing changes in the regulatory framework while extending and innovating our range of products and services.
In the managed assets area, we strengthened our guided open architecture model, centred on Group products, attracting professionals with leading experience and skills for our core products, especially in niche areas and using sub investment management agreements for a number of especially in niche areas, and using sub-investment management agreements for a number of
In the non-managed assets area, we continued the placement of bonds issued by our parent company Intesa Sanpaolo and launched our new Fideuram Plus current accounts, which combine our usual particularly
competitive cost structure with particularly attractive interest rates on customer deposits. The results were outstanding, with approximately 6,500 new accounts opened, bringing in over €530m net inflows, €240m of which went into managed-asset products.
All this helped us roll out an initiative to revise our customers’ portfolios with the aim of helping them gain the maximum benefits offered by managed asset products and a balanced mix in line with the assets’ prospects, market scenarios and their own individual risk profile.
We also continued to develop our SEI advanced advisory model, introducing further innovations.
This enabled us to increase the number of customers subscribed to the service to a total of approximately
21,000 at year end, with client assets of close to €9bn - a result that shows the full maturity
of the customers attracted to this uniquely innovative paying service, which combines
the provision of compete information with clarity and simplicity of presentation.
SEI advanced advisory
customers with assets
of almost €9bn.
The Banca Fideuram Group has thus grown:
• the Banca Fideuram and Sanpaolo Invest Networks brought in €1.9bn net inflows, with net inflows into managed-asset products totalling €4.2bn
• Client Assets rose to €71.6bn with managed assets accounting for 74% of this total (€53.5bn) • Private Banking customers increased both in number (over 23,000 customers at the end of 2010)
and total Client Assets (€31.2bn) • Net profit was €211.6m
• ROE was 28% and our consolidated Core Tier 1 Ratio approximately 14.2%.
Our Investments Continue
2010 saw us launch a raft of strategic initiatives. We completed the process of setting up the new life insurance company Fideuram Vita, dedicated exclusively to our Personal Financial Advisers. Fideuram Vita has already embarked on a new product and service development plan that has seen it launch a Class I product which will be followed by a flexible and innovative new Class III product in the first half of 2011.
Our Network development initiatives included the launch - in conjunction with the daily business newspaper Il Sole 24 Ore and the University of Rome Tor Vergata - of the first Italian Master’s in financial advisory services “Essere Fideuram, Essere Consulente” (“Being Fideuram, Being a Financial Adviser”). We committed to this investment in our human capital and the development of financial culture out of an awareness of the social role played by Personal Financial Advisers and the need to support an influx of brilliant young people into the profession.
We launched the project “Fideuram Mobile Solution”, which aims to revolutionise the way our Personal Financial Advisers work by deploying the most advanced computer tools and technologies.
Because we want to bring even greater value to time, dedicating more time to our relationships with our customers.
The tools we provide our Personal Financial Adviser Networks today will be both rationalised and extended across diverse integrated platforms, from the proposal stage to the execution of instructions, offering customers the option of electronic as well as holographic signatures.
FROM THE VALUE OF TIME... TO THE TIME OF VALUEBanca Fideuram is a benchmark on the market, both as a provider of financial advisory services for families, and as a corporate melting pot capable of synergistically bringing together not just individual professionals in the sector but entire companies as well.
We are committed to growth
At the end of December 2010 we signed a proposal to acquire Banca Sara.
We have increasingly become a major force in Italian banking, ranking alongside the leaders in the country. We are a regarded as a standard-bearer by the world’s leading investment companies, who see us as a leader offering important and often exclusive partnership opportunities on the Italian market.
We believe in our values, our service model and the human capital value of our Personal Financial Advisers, management and staff. We are committed to bringing value to our customers and shareholders.