Banca Generali SpA (BGN), the financial- services company controlled by Italy’s biggest insurer, expects to post “good” results this year with net inflows matching those of 2011.
“Net inflows so far have been good,” Chief Executive Officer Giorgio Girelli said today in a phone interview. “We expect them to be close to 2011 levels at the end of the year.”
Banca Generali reported net inflows of 405 million euros ($530 million) in the first two months of the year with performance fees of 19 million euros. The Milan-based bank attracted net new money of 1.26 billion euros last year.
The financial-services arm of Assicurazioni Generali SpA (G) borrowed 1.5 billion euros from the European Central Bank, with two-thirds of the total at the last three-year auction on Feb. 29. Those ECB funds “boosted” profitability, said Girelli, who is diversifying the bank’s products and cutting costs in a bid to boost earnings. The bank “keeps on growing,” he said.
Banca Generali plans to hire between 50 and 60 sales consultants by the end of the year as it focuses on enlarging its customer base, Girelli said. He ruled out acquisitions, saying the bank will grow organically.
Net income was 22.2 million euros in the fourth quarter, the bank said today, beating the 19.3 million-euro average estimate of five analysts surveyed by Bloomberg. Banca Generali proposed an unchanged dividend of 55 cents a share.
Fourth-quarter net commissions rose 2.1 percent to 48 million euros, while total revenue increased 8.6 percent to 65.1 million euros, the bank said.
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