Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Anima Holding SpA (FRA:124, Financial) reported a significant increase in assets under management (AUM), reaching EUR203 billion, close to their historical high.
- The company experienced strong inflows, particularly in the retail segment, driven by partner banks.
- Performance fees have significantly increased, contributing to a 48% rise in total revenues year-on-year.
- The EBITDA margin remains stable above 70%, despite the dilutive effects of recent acquisitions.
- Anima Holding SpA continues to generate substantial cash flow, enabling shareholder returns through dividends and share buybacks.
Negative Points
- The institutional category saw a net outflow of EUR2.6 billion, primarily due to the wrapping component.
- The company's asset mix is slightly underperforming the Italian average due to a conservative approach.
- The cost-income ratio has worsened due to the consolidation of acquired companies with higher costs.
- The tax rate is expected to increase to 32% next year, up from the current 28%.
- Despite positive contributions from recent acquisitions, there is still significant work required to fully integrate and optimize these businesses.
Q & A Highlights
Q: What is the trend in inflows for October and expectations for Q4, both institutional and retail?
A: The trend in net inflows for October is very similar to what was observed earlier in the year, with retail remaining strong. This trend is expected to continue due to decreasing interest rates, which are encouraging clients to invest in Anima's solutions and motivating banks and distribution networks to focus more on commissions.
Q: What is the outlook for operating costs in Q4 and 2025?
A: The impact of the Castello acquisition is fully reflected in this year's numbers, while the impact of Kairos will be more pronounced next year as it was consolidated from May 2. This will result in a further increase in the cost-income ratio, as Kairos has a higher cost-income ratio than the group average.
Q: Can we expect performance fees in Q4 to help the top line?
A: Yes, performance fees are expected in the fourth quarter. Although the exact amount is uncertain, some fees have already been realized, and there is hope for additional fees by year-end.
Q: Can you provide an update on the contribution from Kairos and Castello in terms of net inflows?
A: Both Kairos and Castello have positively contributed to net inflows, with a combined contribution of over EUR600 million for the year. All private bankers from Kairos have remained, and efforts are underway to attract more to the project.
Q: Are you actively looking for M&A opportunities with your EUR600 million firepower?
A: Yes, Anima is actively screening the market in Italy and abroad for potential acquisitions. The focus is on opportunities that could strengthen distribution power, as well as on the alternative and private banking sides. While the primary focus is on Italy, there is also interest in small opportunities in Europe.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
