Finecobank Banca Fine Spa

Good afternoon, this is the Chorus Call Conference Operator. Welcome and thank you for joining the Fineco Bank third quarter 2022 results conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Alessandro Foti, CEO of Fineco Bank. Please go ahead, sir.

Good afternoon, everyone, and thank you for joining our third quarter results conference call. Before going into the details of our presentation, let me please remind you that the big change in the structure of the market over the recent months is further enlarging our growth opportunities as a platform. As you know, our new dimension of growth is underpinned by the recent acceleration of the structural trends that are reshaping the society. This has been further strengthened by the increase in the interest rate scenario since the beginning of the year. The main outcome is that FinEQ is becoming more and more a fast-growing and capital-light business model with a structurally higher profitability and a structurally higher room to dispose of it. This will allow us to distribute a higher level of dividends and at the same time to meet the position to invest more for our growth. Let's now move to slide five. Going into the details of our results, adjusted net profit in the first nine months of the year was equal to $303 million, up by 17.7% year-on-year, thanks to our diversified business model, able to deliver strong results in every market condition. Adjusted revenues at $684 million, increasing by 14.6% year-on-year, and mainly supported by investing, thanks to the volume effect and the higher control of the value chain by FinEco asset management and by the net financial income, which is underpinned by our clients, very sticky and valuable transactional liquidity. Operating costs were well under control at 204 million, increasing by 4.1% year on year by excluding costs related to the growth of the business and confirming operating leverage as a key strength of the bank. Adjusted cost-income ratio was equal to 29.8%. On cost, let me please remind you that the strategic decision to manage 100% internally our IT is protecting us from the inflation on IT cost. Our capital position confirmed to be stronger and safer with a common equity tier one ratio at 20.39%. Our commercial activity confirms to be extremely solid, also in October, with the net sales at around 700 million and a strong mix with around 100 million in asset under management and around 300 million in asset under custody. Estimated brokerage revenues in October at around 14 million, around 20% higher compared to the average October revenues in the period 2016-2019. This result was achieved despite market volumes extremely low in the month and close to the historical loss. This confirming once again that the floor of the business is now definitely higher.

Let's now move to slide six. As announced, we reached very strong results also in the first nine months of the year.