Good afternoon. This is the CORSCO conference operator. Welcome, and thank you for joining the Banco Generali First Half twenty twenty five Results Conference Call. Questions. At this time, I would like to turn the conference over to Mr. Gianmaria Moza, CEO and and general manager of Banca Generali. Please go ahead, sir. Good afternoon, and thank you for attending our first answer results conference call. The overall results were pretty solid, driven by recurring business with recurring net profit at 176,300,000.0, reaching its best level ever. And this was driven also by asset expansion with client assets at a new record high at €106,500,000,000. The first half was also very important for us because we set up the issue of banking business. Thanks to the partnership with Generali, and we will deep dive in the last section of the presentation. But let's start as usual by numbers. Net profit, page four. The second quarter closed at almost €90,000,000, basically driven by recurring net profit. The overall result of the first half, as already mentioned, closed at 176, and the contribution of variable net profit closed at 23.9 with negligible contribution in the second half. The net profit and the the recurring component were very well supported by the net financial income. Page five, number very strong, basically driven by net interest income and also trading gains. The net interest income closed at 82.4, thanks to asset expansion. And then the trading gains and others closed at 6,600,000.0, including also inter mode. If we focus on the total net interest income yield, bottom of the page, you see it was pretty stable in the quarter, 2.08, and we are confident to stay at or higher for the remaining part of the year. So we have a target of 200 basis points and stable assets. Page six, other component of recurring fees is about gross recurring fees. The gross recurring fees closed at 271, slightly down. We will see that the the slight reduction was temporary and basically driven by market effect. The overall result first half compared to the first half of last year grew higher by 6.9%. As you can see, variable fees contributes marginally in the second quarter, €80,000,000, but the the the recent recovery with the financial markets allowed us to have 25, 30% of the overall assets in the G Fund measure in Luxembourg at or very close to the high watermark. And for July, the the performance fee are already in line with the result of the second quarter. And we were saying that the grocery currency suffered by the market market crash at the April. This is pretty clear at page seven where we have the deep dive on investment fees. You see management fees close at €220,000,000. This is basically driven by two major effects. The first one is driven by a lower average asset under management, and the second is driven by lower margin due to market crash and a more conservative asset allocation. We are confident to confirm for the second half of this year a range between $1.40 and $1.42, driven by new initiatives that we're gonna launch in September during our convention. Regarding advisory fees, you see the second quarter close in line with the first quarter at €13,500,000. Page eight, you see the other fees component. Overall, positive results with mix of trend. First of all, we see lower entry fees, and this is basically driven by a reduction of the structural products at the beginning of the quarter, strictly connected with the market turmoil, while we see higher banking fees and higher brokerage fees, and this is also thanks to the inclusion of the inter monthly numbers. In particular, brokerage commission closed at 19,500,000.0 and then to see that 8,300,000.0. Page nine. Let's move on to the cost part. Total payout ratio are in line with our projections. So the overall payout we face was at 47%, of which 35.9 on ordinary payout and 11.1 on the cost for growth. So this is pretty stable over time, and we are confident in maintaining this level. The second row, you can see how the fee expense on net interest income is declining and in line with the reduction of the yield in the market. And last, payout to third party closed at 6.2. This is a base effect due to the correction of the market, but in absolute terms, also in this case, we saw a reduction. Page 10, have the detail of the operating cost. The main core items are in line with the first quarter, while the core operating cost closed at 8.2 percent. This is basically driven by specific investments for the setup of the mutual banking business and for the implementation of a specific AI project. For this year, we do expect to stay in around this level while in the next in the next two, three years, we have a projection to normally to normalize this number in the range 7%. Page 11, the usual representation of of the operating leverage with operating cost on total assets at the lowest level of 0.28 and cost to income ratio just slightly higher. So page 12, to sum up, I'm confident on the income components for the second part of the year, to a stable margin on the net interest income and stable or just a little bit higher margin on assets under investment. The costs are well managed, so under control, but with specific investments to introduce a new distribution channel within short banking and to enhance productivity with AI projects. If we look at the let's say, below the 13 line, total loan operating charges in the year on year comparison was lower, benefiting from lower regulatory contribution to banking and insurance fund. Last but not least, the tax rate is in line with our projection between '26 and '27, close to 26.3%. Balance sheet, page one four. As we said, after the expansion, so overall total deposit was higher, 15,000,000,000 from fourteen point five, and the cost of funding is slightly down in line with the evolution of market rates. If we look at page 15, same trade same trend for the total assets. Interest bearing assets closed higher from 15.4 to 16. And, again, the yield on interest bearing assets is in line with cost of funding slightly down. And the result is pretty stable. Net interest margin yield is a confirmation of a target about 100 basis points for the second half of the year. Multiplying this margin for the current level of the interest bearing assets, you can work out a target for this year at around €310,000,000 or higher. Page 16, you see the capital and liquidity ratios. Total capital ratio, solid, close to 20%. Consider that the TCR include the impact from CRR three, include the first time integration of Intermonte, and even most important, it includes dividend provision in line with the current dividend policy or 82% of the overall results. So €164,000,000 already constitute a provision for the dividend policy. Leverage ratio and liquidity ratio well above above the risk requirement. Next section, net inflows, assets, and recruiting. We already said that total assets re achieved new record high, 6 €106,500,000,000 with more than 71,000,000,000 in assets under investment. Very promising trend underlying the assets under investment. If you move on to page 19, you see the managed products recovering. We are only at 45.8 to 49.1, and you see also recovery in the traditional life policy, positive contribution for future stability. First of all, an increasing weight of buffers on the total management solution, driven basically by financial buffers expansion. Financial wrappers was at €12,900,000,000 or 1,400,000,000.0 of increase year on year. And in the funding industry, we continue to see the ongoing rebalancing between third party funds and announced funds. Now announced funds account for 12,000,000,000 compared to 11.1 same period as last year. Page 20, we start looking at net inflows. You see the improving quality. So out of the €3,000,000,000 of overall total net inflows, 1.6 has been invested in assets under investment. And on the right, you see the the the details of this 1.6. Most of the these numbers have been invested in assets under management, €1,500,000,000 or 5050% of the total net inflows. With €1,500,000,000, and if you move page two one, you can see that it's been invested proportionally, 50% or more or less 50%, traditionalized policies and €800,000,000 in managed solutions with a particular focus in financial buffers, 600,000,000, and in our funds, 300,000,000. Last page regarding the inflows, page two two. You see the net interest by acquisition channel. The current uncertainty over the exchange public offer and create a stop in the recruitment activity. So there's some queues, some positive queues, but they said that it's clear that it we have a temporary slowdown. But I can say that it's impressive, the numbers of interviews that we are having and the feedback. So I'm pretty convinced that as soon as we will know that the the result of the exchange of the cost, and you will see an acceleration on the equipment numbers. July, in terms of the total net inflows is pretty strong, higher than last year. Now I think that the most important part of this presentation is the the business update part because I will explain why I'm so excited to the year to start with the mutual banking business, thanks to the partnership with Generali. And to understand the potential of this partnership, you have to go through numbers at page two four. What you can see in page two four, we start with a side of the Italian targetable financial household wealth. What we mean by targetable financial household wealth is the total financial household wealth less the less liquid assets, for example, not listed equity, and less the assets that we do not allocate to a specific distribution channel. If you look at it on the left, you see the breakdown of the Italian targeted targetable financial assets in two major cluster. The first 24.5%, is about insurance products. The remaining 75% is about current account deposits and asset management. It means that with this representation, the overall contribution of the insurance product accounts for €920,000,000,000. And it means that for each euro invested in insurance, you have other €3 invested in other products. At the center of the page, see the breakdown of these targetable financial household wealth in three major distribution channels. The first one refers to insurance agents. You know, insurance agents manage only a part of their client's asset and is fully invested in insurance product. So the €192,000,000,000 of the insurance agent refers to only insurance products. The main part of the insurance products are distributed by the other distribution channels. And you can see in the second column and the third column that the penetration of insurance products in the private banking and the penetration of insurance products here today is pretty constant, and it is at around 20% of the total assets. So now starting from the consideration to get the insurance agent managed only half. Okay? If we adapt adopt the same percentage, so 25% allocation to these assets, you would have a potential loss of 750 €950,000,000,000. So it means that the clients reached by a paid agent, each one has €1 in insurance policy with the paid agent and €34 with another player in another distribution channel. And the the good news in this case is that you if you talk with an insurance agent in the market, it's well known that the the the most performance and, let's say, qualified player is Generali. And the Generali agent account for more or less 50% of the entire business. So if you divide it by two, the range, you would have the potential of the clients reach through the generalizations, and we are talking about a multiple of Banca Generali. My target is to reach at least 15% of this target in a few in a ten year time. And if you work out the numbers, you will see that for us is a tremendous opportunity. For this reason, we signed an important contract with Generali, the April 17, page two five. We already presented this agreement in the previous conference call. Here, there are some details. The first three bullet points bullet points are about the different models to reach the clients of Generali. And the fourth valid point is about the capabilities of Banca Generali in managing issuer products for the financial assets, for the risky assets. So let's focus on the different way we can reach the general clients. So move on page two six. And here, basically, you see three different models. The first one is well known. We provide with numbers every quarter, and it's about financial planning of agency. So an agent of Generali received a mandate by Banker Generali to distribute banking and finance and finance products. So you have one professional with two mandates, one for the insurance products by Generali and one for banking finance products by Banca Generali. It is well established as a business and the the agreement here, the goal is to accelerate the the penetration of this model. The second one in the middle of the page, direct mutual banking is certainly the the newest one, and it's about providing banking products and services to general clients direct through the distribution channel of general with the support of remote banking and digital tools provided by Banca General, and we will deep dive later. The third one for us is, at the moment, just a pilot. We launched a couple of pilots just to test it because it is something that has been adopted by other competitors because the issue banking has been launched in all major competitors of Generali. So in Italy, Zurich, Allianz, and uniform. So and as I said, there is a mix of this model in case in in one case, the third one is the most important. For us, it's just a pilot. Page two seven, we start with the the SPA model, so the one you already know, and we show the numbers so far achieved. And you see that in 2022, there is an acceleration. 2022 was a sort of watershed and that was driven by the increase of interest rate. With an increase in interest rate, the outflows from insurance product accelerated, and the agents started asking for other products to regain part of this outflow. So the reason behind this acceleration is this continuous recap of this kind of mandate from agent of general. And now this business accounts for €2,300,000,000. Of course, you see a a slowdown in the last period, which is driven by the uncertainty of the exchange public cost. In terms of professional, you see that from 7074, we exceeded 100 in just a couple of years. And here, the scope is to accelerate this trend. Page 12 is a new agreement. On June 30, we signed a new contract, a new agreement with Allianz. Allianz is, to me, one of the best and performing distribution channel in Generali and Italy, well lived by the pastoral. And we agree that the time is ready to raise the bar and increase the penetration of base clients. Actually, the distribution channel of Allianz accounts on more than 10,000 professionals, and they provide insurance for almost 2,000,000 clients. And here, the strong conviction shared by my myself and and David is that sales to be very performing distribution channel, we will increase the cross selling and the the upselling by opening up the distribution of banking products and services through their channels. So the the priorities of this partnership is, first of all, to open up the distribution of banking products and banking services through Allianza. And the second priority is to enlarge the insurance portfolio providing hybrid solution similar to the ones we provide to our clients, specifically for the different target of clients, called the still, as you know, still Libro and a different version still as 2,000,000,000 still Unico. So we're gonna provide the same insurance wrappers to Allianz's client with Bank Generali with the responsibility to manage the underlying. So why we are so confident, the distribution channel is very performing, is diversified, and they know how to offer very complicated products like protection. Now we will start with cross selling by providing to the clients those with banking products and deposits, and then upselling by moving from standard insurance products to very sufficed sophisticated and personalized solutions, well known in banking generally. And this kind of product, as you know, represents probably the most successful platform we ever launched in Italy. And now we will expand the distribution from private banking to affluent market. So coming to the conclusion, page nine, as the board of director, on the July 26, we launched a new strategic plan twenty twenty six twenty twenty eight, and this strategic plan has been developed on a standalone basis. One of the most important pillar of this new strategy is based on the partnership with Generali, so the initial banking in particular, And we started. We started means that we already announced it to the professional alliance, the July 17. We have already organized a convention, a network kickoff convention for October 9. And the the the really good news and the the the national rollout will start as soon as November. And I'm very confident to start seeing numbers as soon as the first half of next year. So mutual banking is an engine of future growth for the bank. As you well understand, we are very committed in delivering our new strategic plan. We are several initiatives. Intermonte is going much better than expected. AI is a game changer for the current CEO of financial advisers and then insured banking. And more to come. We are we are organizing a convention for September in which we're gonna launch new products to increase profitability in the asset management business. So we are definitely not distracted by the pending voluntary exchange public offer. And despite these short term uncertainties, we are very confident to deliver all target, at least €6,000,000,000 of net inflows, at least 3,500,000,000.0 assets under investment. We confirm our profitability in the net interest income. We confirm a range between one hundred and forty and one hundred and forty two basis points in the asset management products, and we do expect to expand the assets. So we are confident to close very well this year and to start in a in a better shape, thanks to the initial banking also next year. And now I will hand over to the q and a session. Thank you. Thank you. This is the CONSCO conference operator. We will now begin the question and answer session. The first question is from Marco Nikolay of Jefferies. Please go ahead. Good afternoon. Three questions for me. Asset under investment flows improved considerably in May and June compared to April despite the volatility around the m and a scenarios. So what do you expect for the second half? I see you reiterated the annual guidance, but if you could give us some clarity on the trends you expect maybe in the various product lines, that would be very interesting. Another question on the brokerage fees. So it's been two quarters here at or above 19,000,000. Is this the new run rate within term loan? Another question on the cost of risk that increased this quarter. Can you give us some color on the drivers? And sorry, last question on the FBA agents. Now you're on 107 of these agents. So where do you expect to be in, say, one or two years' time, also thanks to the Alliance partnership? Thank you. Thank you. Let's start from the detail of asset under investment flows. For the second half of the year, I do expect that, let's say, a contribution, let's say, close to 50%, but the needs will change. I'm more optimistic on the asset management, so far, for the new offer we're gonna launch at the October, and we and we announced in at our convention September. And in the insurance space, we do expect, a release for a new release of the insurance wrapper. So overall, I do expect a better quality in terms of profitability, constant share of the overall total net inflows. Brokerage fees, short answer, yes, Comparing to stay at or above 90,000,000. We are expanding the offer, onboarding new clients, launching new strategies. So brokerage is working very well. So we said that this should be a flow. And FTA agents, let's say that you have to consider FTA and Allianza two different projects. Allianzia is about distributing products through their distribution channel, and I do expect to at least involve 2,000 of their professionals next year. It will take time, but I'm sure that at least 2,000 will be onboarded before the end of next year. So it means 2,000 professionals offering banking products, banking services, and then a new insurance solution. And not to a new client, but to the existing clients and the target is the affluent clients. So something absolutely new for us. SPA is a different story. SPA means a paid agent working in an agency asking for a mandate to be, let's say, able to provide banking and finance products as Banca Generali. So it it takes more time, and it's about different kind of clients with more upper half and then private clients. And we're gonna disclose the target on these specific projects when we will release our three year strategic program project as soon as we gonna know the, let's say, the results of the pending public offer. And for the cost of risk, I will ask Tomasz to ask. Thank you, Jean Maria. Let's say that the the quality of the credit portfolio is not changed. So the our our policy continues to be very safe from this point of view. We have just a spike, which is a contingent contingent moment in the in the first half, which is linked to basically also to some position, which is where we had a write off, which is moved more to the more than to the to the credit activity, to the lending activity for me to some specific guarantees due to some specific clients. So it's it's something that is not going to be, let's say, recovering recovering, let's say, right off that you will have in the in the future. So it's just a spike that we're in this quarter and that the quality of the portfolio is unchanged. Thank you. The next question is from Elena Perini of Intesa Sanpaolo. Please go ahead. Yes. Good afternoon, and thank you for for taking my my questions. Questions. I've got actually three three questions. First one is on the issue banking project. What makes you so so confident about the the possibility of involving at least the two two thousand professionals that generally Italian and Allianza And about the fact of being this project successful. Is it the fact that you have already experienced it in in a a different way through the FPAs or are there also other other elements that we have to take into consideration? The second question is on the absolute NII guidance. Have I understood correctly? Because I have I have some some some problems in connection that you that you mentioned, the 310,000,000 for for this year. Just a quick confirmation. And then I I would like to go in-depth the line of provisions, which is down compared to last year. But I would like to have a a breakdown of this of this of this item if if possible. Thank you. Thank you. So the for the project, I can answer in two different ways. The first one three different ways. The first one is the first time ever that we launched a strategic plan with Allianz for value distribution. Allianz is a very well performing network and is the natural evolution of a professional. So they have to fully understand the opportunity and to penetrate and increase cross selling, upselling to existing clients. They are 10,000, and my assumption is very conservative. It's that we're gonna do only 20 of the professional. So it's something absolutely new. We are very committed, and there is a great interest around this project. The second reason is because, you know, you know, it's a project already launched by other competitors, as I mentioned before. And the banking industry is entering the insurance business. So it's also not only move a to increase profitability, increase penetration, but it's also a defensive move. So to have a different proposition and holistic proposition for the clients. And third one, what happened in 2022 was very disruptive because for the first time, we start seeing significant outflows. And to avoid the, you know, the repetition of such a kind of extreme scenario, if I were a professional, I would like to have also some alternatives in order to at least to capture part of the of the outflows in case of raising interest rate. So for all these reasons, I'm very confident. And second, on the guidance, you are right. We do expect to stay at or above 200 basis points in terms of yield. If you multiply these 200 basis points for the current level of the interest bearing asset, 15.5, you have a level of a number around 310,000,000. For the provision, I will hand over to Nash. Thank you. Thank you. Let's say that the provision are quite stable in the in the in first half compared with the same period of last year. Then the the decrease that you see is mainly due to the provision to the resolution fund, the bank's resolution fund, which is down basically zero, but we are so this is why we have a benefit in this and that, which is mainly linked to this to to to this provision, let's say, classical provision are very stable. And in this provision, we have the seller for SA and the normal provision to, let's say, risk and charges that we have on a quarterly basis. So very stable and we look also forward, and we don't see a great, I mean, a change in these numbers. Like, we see that the provision for the resolution fund will be much lower than last year, starting from this year. The next question is from Luigi Debelli from Equita. Please go ahead. Hi. Good afternoon. I have some questions. The first one is on the recruitment. You mentioned it a more complex environment on the recruitment front. Could you elaborate on the main challenges you are facing today? To what extent is this complexity temporary and tied to the recent offer from Mediobanca? And if this challenge has impacted also the net interest strength? The second question is on performance fees. You mentioned it is €5,500,000,000 of assets under management close to high watermark. Could you quantify the potential upside to performance in second half if markets will remain supportive? The first question on the NII, $310,000,000 for this year. Considering the current interest rate curve and your expected commercial policy, can we assume at least stable NII for next year? And last question on the intermodal integration. So could you elaborate on the revenue synergies already materializing? You mentioned the growing interest from entrepreneurs, clients in exploring the opportunity. So can you elaborate on this? And from which banks or channels you are gaining interest on market share from, thanks to the Intermodal integration? Thank you. Thank you. Let's start from recruitment. Let's say that the partnership, the the, say, the m and a with Intermonte was a game changer for us. Great interest from several professionals who explore the potentiality of this deal. So I see on top of the traditional interest of Banca Generali as the top private bank in Italy, at least in the in our space or the financial advisers. Now there is also the possibility to provide corporate investment banking services starting from the long lasting relationship bank and client. And so this is it works very well also for recruitment. So we have plenty of of conversation and interview. But, of course, temporary, they are about the the the the result of the pending exchange of public office. So this is going to change. We have also some candidates who need to join despite the situation. Nothing is suggested. There's no number. So it's pretty understandable as behavior. And and we have some delays also with some clients, and in the same need to understand exactly, you know, the sort of the bankers in line. But despite these uncertainty, I'm pretty impressed by the number of financial advisers we are meeting them with top bankers. And I'm impressed by the interest around Intermonte. And and the business day why during the conference call they said the the integration is working even better. Why even better? Because we have, let's say, at least three activities in place. The first one is with entrepreneurs. The feedback from Intermont is absolutely positive. We have already organized almost 100 meetings. And and so meeting the client, the entrepreneur, with a financial adviser. Who knows this client for for for years is much easier. And we start seeing plenty of opportunities, and this will translate in new inflows as soon So it takes time, of course. It's it's it's like a child, six, nine months at least, and we're gonna see next year. And the second, of course, quality is a game changer in the use of derivatives to protect and to internalize margins. So we're gonna launch a new set of strategies both in the asset management and in the asset under Canvas for the with the pro the proposition of protection, and this is really powerful. Our internal team is supporting significant new innovative solutions, and we will present these at the next concert at the next convention with the financial advisers. The third one is internalization of margins, and we are working to internalize part of the margin structure of product and brokerage, and this will take place before the end of the year, at least the first part of these synergies, integration vertical integration of the really chain. And for net interest income, you know, it's it's probably, it is it's too early to give guidance for the next year. The idea is to to announce our view when we can meet for the senior strategic plan. I can tell you that I do not expect any reduction in the interest in in the interest bearing assets. So in a positive scenario of asset expansion, I think that the the yield will will reduce slightly, but I do not expect, let's say, negative impact on the overall contribution, net interest income. The next question is from Gianluca Ferrari of Mediobanca. Please go ahead. Yes. Hi. Good afternoon. A couple on the insured banking project. The first one is on the SPA agent collaboration. I was wondering if you can share with us some ideas on the referral fee or the fee sharing in case a sale is done jointly among the two professionals. And also linked to Allianz, seems to me that Allianz moved away from G and A savings products since they did now. So they are offering multi class wrapper. I think they're also selling the Valore, Sapuro, or Generali. So in case so what is the incentive for them to switch to the steel exclusive or so selling your multi class product vis a vis that provided by Generali? I think you are reaching Alliance via digital channels. So there is no efficient in probably with a financial adviser, but it is more with Banca generally as an institution. So here, my question is, is it going to be neutral for an Alliance professional to sell a general multi class insurance product product vis a vis your product, or there is something I'm missing in terms of how they will steer the decision on this on this point? Thank you. So let's say that we have at least a couple of examples in the market when you have the full control of both trade agent and financial adviser, you can sign a contract in which you decided to work on both the customer base with the speed of the the current fees. So one end, the the financial adviser works on the customer base of the paid agent across from that segment of the financial space. And the other side, the paid agent works on the customer base or the financial guidance for protection needs. So we are we launched a couple of pilots to to see if this kind of model can work even if there isn't a full control of general market. But we have a very good example in the Italian market working very well. On Allianz's side, you have to consider Allianz as a a very well diversified population both in terms of professionals and in terms of clients. And when I I mentioned the, let's say, the standardized, but in in a positive way, product with standard offer, it means that the specific offer for protection. As you know, still a liberal was a great success because it was able to capture the assets investment invested in the single funds. So fiscal optimization, operational optimization, much higher diversification, and so forth. So the target for this kind of product is likely different from target of standard solution in the saving space. And, you know, as I said, we are well diversified population. So I do expect in the portfolio of Allianz to offer in that platform client also with other assets in other with other distributors. So capturing the asset management component with these propositions, for me, is different than the traditional proposition of standardized unit linked. Even if the standardized unit linked offer protection, thanks to the the the ancillary insurance drivers. So different propositions, different target of clients, and much higher focus on the best professional just to have the possibility to provide in a a very high personalized solution to the finance clients. So I'm sure that this will increase the share of wallet also in the insurance space. Moreover, we'll allow the, let's say, the clients with more sophisticated more sophisticated needs to to see an answer to these revenues. And and the last but not least, that that these distribution network successfully moved from traditional unit rule to protection with excellent numbers. They know how to expand the offering and the proposition to clients. We will steer this network, and there is a strategic interest in broadening the offer. So I'm pretty confident that it would be a success. So very complementary with what they already have in the product range. Exactly. Thank you very much. Thank you, Zamore. Thank you. Any further questions, please press star and one on your telephone. Mister Mosa, there are no more questions registered at this time. Okay. So thank you for attending our conference call. We remain at your disposal for any further Q and A, and goodbye. Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones. Thank you.