Banca Generali reported a robust financial performance for the first quarter of 2025, with a recurring net profit of €87 million and a reported net profit of €110 million. Total assets reached nearly €104 billion, and the company achieved total net inflows of €1.5 billion. The stock price rose by 1.42% following the announcement, reflecting positive investor sentiment. According to InvestingPro data, the company maintains a strong financial position with a market capitalization of $7.3 billion and impressive revenue growth of 24.45% over the last twelve months.
Key Takeaways
- Recurring net profit of €87 million demonstrates strong financial health.
- Total assets reached nearly €104 billion, indicating significant growth.
- Stock price increased by 1.42% post-earnings, signaling positive market reaction.
- Integration of Intermonte acquisition and AI implementation are ongoing strategic initiatives.
Company Performance
Banca Generali’s performance in Q1 2025 highlights its strong position in the wealth management sector. The company’s recurring net profit of €87 million underscores its ability to generate consistent earnings, while the reported net profit of €110 million marks a significant achievement. The bank continues to expand its total assets, which are now nearly €104 billion, reflecting its strategic growth initiatives.
Financial Highlights
- Recurring net profit: €87 million
- Reported net profit: €110 million
- Total assets: Nearly €104 billion
- Total net inflows: €1.5 billion
- Net interest income margin: 32.2%
- Total gross fees: €280 million
- Variable fees: €34.4 million
Market Reaction
Following the earnings announcement, Banca Generali’s stock price increased by 1.42%, closing at €56.2. This movement reflects investor confidence in the company’s financial health and strategic direction. InvestingPro analysis reveals impressive returns of 52.35% over the past year and 35.46% in the last six months. The stock trades near its 52-week high, supported by a GREAT Financial Health Score of 3.03, though current valuations suggest the stock may be trading above its Fair Value. For deeper insights into Banca Generali’s valuation and 11 additional ProTips, consider exploring InvestingPro’s comprehensive analysis tools.
Outlook & Guidance
Banca Generali has set ambitious targets for the coming quarters. The company aims to achieve net interest income above €300 million and net inflows exceeding €6 billion. Additionally, asset under investment inflows are projected to surpass €3.5 billion. The announcement of a new strategic plan is on hold pending the resolution of the Mediobanca offer.
Executive Commentary
CEO Gianmario Mosta emphasized the bank’s unique position in the wealth management sector, stating, "We consider the bank the most important pure player in wealth management." He also highlighted the importance of protecting shareholder value and client investments, remarking, "Our focus is just to protect and value the shareholder and investment of our clients."
Risks and Challenges
- Volatile financial market conditions may impact future performance.
- Basel IV implementation could affect the total capital ratio.
- Integration of Intermonte and AI initiatives present execution risks.
- The unresolved Mediobanca offer introduces strategic uncertainty.
Q&A
During the earnings call, analysts inquired about the potential synergies with the Intermonte acquisition and the impact of market conditions on performance fees. The company also provided updates on the BG Swiss Private Bank project, emphasizing its commitment to expanding its international presence.
Full transcript - Banca Generali (BGN) Q1 2025:
Operator: operator. Welcome, and thank you for joining the Banco Generali First Quarter twenty twenty five Results Conference Call. As a reminder, all participants are in listen only mode. After the presentation, there will be an opportunity to ask questions.
At this time, I would like to turn the conference over to Mr. Gianmariamosta, CEO and General Manager of Banco Generali. Please go ahead, sir.
Gianmario Mosta, CEO and General Manager, Banco Generali: Good afternoon, and thank you for attending our first conference call on quarterly results. Let’s say that as usual, we will start with a comment on the results of the first quarter, and then we will give you a first update on the voluntary exchange offer we have received from Mediobanca. So slide three, as usual, you can see an executive summary with the most important events over the first quarter. We closed the first quarter with very solid profit. Recurring net profit closed at €87,000,000, and also the reported the overall net profit was pretty strong at just 110,000,000, thanks to a contribution of also the more volatile component of our p and l.
From a commercial perspective, we closed the first quarter with almost €104,000,000,000. So a strong increase of the total assets, and the overall net inflows were solid with 1,500,000,000.0 of total net inflows with an improving mix and quality. Concerning the voluntary exchange offer, we have just appointed our leading international advisers. Our internal risk and control committee is on the way to appoint dedicated and independent advisers. And I have just received mandate from the board of directors to explore the investor rationale and the implication of the offer.
That’s the strategy. In the business update section, we will have time to deep dive on these topics. First part of the presentation is about numbers. So slide four. As you can see, the recurring costs were pretty solid, €87,000,000 or 6.1 higher year on year.
And this is thanks to stable net interest margin and stable steady growth in the recurring fee business. Variable net profit, 23,200,000.0, thanks to performance fee. Consider that from this quarter results, we will include also interim results. So you will find comments every time that the item is impacted by interim. And in the slide with the sum sum up of the p and l, you will see the contribution line by line by the acquisition of from the acquisition of Intermonte.
So let’s start from the two major components of recurring net profit. First of all, page five, net financial income. As I said, pretty strong results with the net interest income pretty stable over time. Thanks to an expansion of the deposit and just a slight reduction of margins, of net interest income. Overall, net interest income margin closed at thirty two two point one.
And as you can see, also, the trading gains and others contribute positively at 8.6. And we are there is also a a positive contribution from the integration of Intermont for the global market component. Overall contribution was 4.7. Next page, total gross fees. Here, you can see how solid the gross recurring fees are and in acceleration of in acceleration of 8.5%.
The overall result is close to 280,000,000. And here, you will see positive contribution from the asset under investments and also the other fees contributing in line with our guidance. Variable fees at 34,400,000.0. This is, as I said, a good quarter for performance fees, thanks to the good start of the year. And the overall result for the quarter is at €313,000,000.
Focusing on the growth recurring fees, you see at page seven an acceleration of investment fees. We closed the quarter at 238,000,000 or 8.5% higher year on year, and this is basically driven by the average investment after expansion with a double digit growth increase. The margins are pretty stable considering a more, let’s say, defensive posture of our portfolio manager and the volatility of the financial market, especially in the last part of the first quarter. Page eight, other fees. Starting from the entry fees, you see a normalization of the contribution in line with our guidance, 12,500,000, an acceleration of brokerage commission at €19,000,000, thanks to asset expansion and Intermonte contribution for 3,700,000.0.
And banking fees higher, basically, thanks to 3,500,000.0 of contributions coming from Intermonte. The overall result amount to 4,600,000.0 with an increase of eight by 5%. Next page, page nine, payout ratio. We say that the payout ratio is within our guidance. So no news.
Good news. If you look at the the the total fee expense in the part related to the net net interest income, you see a slowdown of this contribution. So as I mentioned, with the reduction of the of the interest rate, we will see reduction of the cost of these components to compensate. The overall total payout ratio is mentioned in line with our guidance at 53.1%. And excluding some seasonality, can say, all numbers are in line with our guidance.
Next page, page 10, operating cost. You see in the overall total operating cost, there is a new item that is in term loan. So here you can see the evidence of the total cost of the legal entity in Perlmulte, eight point five million euro. In the core operating cost, like for like, so without including Intermonte, but including for the first time in the different items, which you see. The overall results closed at 67.1.
And, basically, the the the the acceleration is due to higher FTE and higher FTE and the the saving the last phase of the phasing of the national banking contract. Page 11, we have the ratios. So, you know, we have a great operating leverage. So operating cost and total assets, like for like, confirmed at 0.28. Cost to income ratio, once including term loan, confirms excellent level.
Page 12, as mentioned, you have the sum up with the p and l, the overall reported, and the contribution line by line by Intermont. As you can see, the total banking income amount to 11.5. Total cost, 8.5. Operating profit excluding the the operating profit of 3,000,000. Taxes and then overall net profit at 1,900,000.0.
Commenting the overall results for the 87 point the 87,000,000 in of recurring net profit and 110 of net profit. Comparing the same period as last over the last year, you see a marginal increase of the tax rate at 25.3. That is in line with our guidance of 25, 20 six for the full year. Now a quick comment on the balance sheet and capital ratio. Also in this session, we will see no specific news, but so far so good.
The overall balance sheet size continue to to grow at 17,000,000,000. So we’re supported by client deposits, 13,000,000,000. The cost of funds start decreasing in line with the reduction of the interest rate at 0.93. Next page, so page 15, you see the total assets and the interest bearing assets. You see that the expansion of the balance sheet has been invested mainly in the financial assets, so in the banking book.
And now the banking book accounts for 11,800,000,000.0. The overall yield on the interest bearing assets amount to 3%. So the difference between this 3.02 and the cost of funding of 0.92923 equals to 2.1 as net interest margin the overall net interest margin. Page 16, you see the capital ratio. Here, you see for the first time the full implementation and the full impact of Basel IV introduction, minus 3.8 percentage points of total capital ratio, and the overall impact of an integration of internal at 2.2%.
Despite this inclusion, the total capital ratio is confirmed very solid at 19.2%. Leverage ratio in line with the previous year at 5.7. And then, as usual, it’s a very solid and liquid and so it’s it’s a great liquidity of the bank and liquidity coverage and liquidity coverage ratio above 300% and net stable funding ratio at 230%. Next section, net inflows, assets, and recruiting. Let’s say, strong results in terms of total assets, almost €104,000,000,000.
You see that the assets under management and the the overall cost assets under investment were slightly impacted negatively impacted by financial market conditions. But overall, the mix is improving. You can see at page 19 where on one side, it’s important to highlight the constant recovery of the traditional life policies, €15,000,000,000, and then the marginal reduction of the overall managed solution. But within the managed solutions, you see an increasing rate of our buffers bottom left. Now buffers account for 60.8% of overall managed solutions.
And also, the overall rate of the announced funds continue to grow. This is basically driven by inflows. If you move to move on to page 20, you see the total net inflows for the quarter, which is in line with the previous two year. In terms of mix, half billion of asset under investment. So, again, stable compared year on year.
Page two one, you see the contribution in terms of the inflows in terms of of products with managed solution at €400,000,000. It is higher than the same period over the last two years. This is driven basically by the constant growth of our financial buffers. We are performing well and preferred choices of our clients, possibly during more volatile times. Bottom right, you see the on ongoing rebalancing among third party funds and in house funds with positive inflows also in the first quarter for in house funds at 200,000,000.0.
Page two two, with the breakdown in terms of acquisition channel. Again, also, we have numbers put in line with last year. These are very solid numbers, also because, you know, we have a rush at the end of this year because of the completion of our three year business plan. So thinking of ongoing contribution of the business as well in line with last year since the the confirmation of very solid and healthy network. In terms of recruitment, you see that it’s more or less the line in last year.
It’s like deceleration from the retail and top banks. The perception is that the traditional banks are on the, let’s say, wait and see move. That’s due to the overall organization of the banking system. Page two, three, you see the results achieving net four. Overall, €600,000,000, of which €200,000,000 in asset under investment.
Year to date, we are slightly lower compared last year. In terms of product mix, we are slightly higher compared to last year in terms of inflows in asset management products for the two reasons mentioned before, the recovery of the operational life insurance and solid inflows in the financial graph. Okay. So let me close the part on the financial and commercial results saying that we are very happy with these results. The the financial value network are are in good shape, and we are waiting for the communication of the pillar of the new strategy that we should have announced in June.
Course, we have suspended the announcement of the next three year strategic plan, but we are we are continuing working on very important and transformational projects for the bank. I mentioned just three of them, Intermonte, all the, let’s say, integration group are working very well. The second is about the Generali partnership, and I will go through the new, say, the new agreement, strategic agreement with the Generali. And the third one, we are integrating artificial intelligence in all the commercial approach and all the phases of the relationship with clients and bankers. So we are confident to find the way to provide better support to all the financial working capital, increasing productivity.
So having said that, we received these voluntary exchange offer from Medibanco. As you know, the major contents of these offer are about the aim at creating, say, the leader in the wealth management in Italy. The the offer, say, recognizes the duration for each shareholder of Bank of General and tender to to 1.7 ordinary shares of Generali, as said, Generali. And there are two main conditions. The first one is about the floor, the medium size of shares.
It’s about 50% plus one. And the second is that there is a a condition regarding a negotiation and the the conclusion of the main terms of the strategic partnership agreement, including actual banking and asset management. And then Mediobanca communicated also the timeline of the offer. Now page 56, you see the reaction of the board of directors. We call a board of director the same day the when we receive, basically, the the offer where we formally acknowledge this offer and where we specify that this offer was neither solicited nor agreed upon, and this is important to say.
So it was a surprise for us. And, of course, we confirm that the board will do his duty, his job, expressing the opinion on the offer within the terms and according to the procedures stated by the law. This morning, we had the second board of directors where we communicated the appointment of our advisers, legal and financial advisers. And in the same meeting, the internal risk and control committee confirmed to the willingness to appoint dedicated and independent legal and financial advisers. And and third, as mentioned in the beginning, I received a mandate to explore the investor rationale and the implication of this offer.
As we said, at the core of this offer, there is a strategic agreement between Generali and Mediobanca in the offer we have mentioned for this agreement. So probably it’s useful for all of us to remind the current agreement. The current agreement is based on two different pieces. So the first one, so the the say, the overall framework agreement with the General Group was signed in March 2018. And then, you know, we signed an amendment a few weeks ago.
Let’s start from page two seven where we there is a description of the overall framework. The framework in this agreement has two major legs, So two major points. The first one is about the brand license agreement. So now we have we received the freely the use of Banca Generali brand. And the use of brand is in conjunction with the insurance distribution agreement.
This license agreement for the use of the brand may be terminated. And there are two clauses. The first one is change of control clauses clause. And the second and the second is about the termination of the insurance distribution agreement. The second part of the framework is about the IDA, so the insurance distribution agreement, duration ten year, renewable for an additional ten year.
There is an exclusivity right, so we distribute only for the insurance business, general products. There is a restricted distribution network, So in exchange of business visibility, Generali cannot sign contracts with a selection of potential competitors of the bank. And there is also, in this case, termination clause, in particular, in case of termination by general of the brand license agreement, the exclusivity will be lifted and maybe terminated by Banca General. And, of course, on the other side, the same can be said before the, let’s say, the restricted distribution network. So from that moment, Generali could, let’s say, decide to work with the competitors that we listed in the agreement.
So it’s it’s important to understand that there are these two assets that are strictly linked, the brand, the distribution agreement, and two major closings, termination closes that has changed the control of termination of this insurance distribution agreement. Then in the last in the last month, we said that we have been working hard for several months. We finally agreed to sign a new, let’s say, a new amendment with two major contents. One is an amendment of the insurance distribution agreement, and the other one is a new framework of a strategic partnership between Banca Generali and Generali to distribute our products through the general distribution channels and send a way to, let’s say, to reach also general clients. I do consider these contracts well balanced.
We work hard. And as I mentioned, the insurance banking part would have been a pillar of our communication with you for your strategic plan in June. It doesn’t mean that we stop this favor. It means only that we will not communicate numbers until the end of the offer from Medibank. Page two nine, you have a deep dive of the the issue banking agreement.
There are three different ways to reach clients, general clients. The first one is well known as we publish publish updated numbers in the earnings of this presentation. So they are the financial planning region. And here, the aim is to accelerate the numbers of financial planning agent. The second way is to provide general agents with a selected number of banking products and services, and we’ve only support remote support, remote banking support from the bank.
And the third way, normally for the high end clients, is to explore cross and upselling synergies through teams between agents and financial advisers. And we have we have we have launching a small pilot to test also this channel that is it’s used by other competitors. So just to say that for us, the part of the business of Generali as distributors of the product is is important, and there are specific flows in the contract. And on the other side, we already started working within Generali to cross and upsell with the financial planner agents, but there is also another way to achieve the same result. The last slide, the slide three zero, about the final remarks.
And I think that it’s really important to understand what I personally consider the priorities of the bank. And these priorities are, let’s say, the starting point for any transaction that involves the bank directly or indirectly. The the the first one is is pretty clear. We I I consider the bank the most important pure player in wealth management. Because at the end of the day, our focus is just to protect and value the shareholder and investment of our clients.
This is what we know how to do. We do this one, and we strongly believe that this is our mission. And I think that we are an exceptional player because we are 100% dedicated to protect and value the savings of our clients. And the second point, there is none of the the our vision. Our vision is that is that we’re be the first part of bank, and not in terms of assets, probably, but for sure in terms of quota service, innovation, sustainability.
This is, for us, foremost important because we brought our vision and our mission in the most difficult moment of this day. It was in the 2016 when, unfortunately, our friend and our previous CEO passed away. So it was a very difficult time for the bank. It was a moment in which we agreed with the financial adviser. The fact we have a clear vision, it was about the scope, so to provide private banking services in a different way.
And we also brought our mission. And the mission is pretty clear in the third point that is where I’m strongly convinced that our extraordinary results that we achieved in these twelve years since I had the role to join this bank are driven by the long lasting relationship between clients and financial advisers. The financial advisers are our trusted professionals and are the most important assets of this bank. We are very united. We are in the strong sense of belonging.
We are a great team and great respect for the day to day business of this professional with our clients. The fourth one, the disclosed to the first the first three, is that, as you well know, this is a people business. And we said that the success of any transaction depends mostly depends on the respect of all the people who contribute the most to the success of this bank. Last but not least, because for me, it’s a foremost important, we represent the interest of all our shareholders because the shareholders have placed the trust in the bank and the trust in the management team over the the years. So we have great respect of our clients, great respect of our financial advisers, great respect of the people working with this bank, and not not not least, great respect of all the shareholders and, in particular, of the minority shareholders.
Thank you. And now I I hand over to the q and a.
Operator: Thank you. This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press and 1 on the telephone telephone. To remove yourself from the question queue, please press and 2.
Please pick up the receiver when asking questions. Anyone who has a question may press First question is from Luigi Gabelli, Equita Sim.
Gianmario Mosta, CEO and General Manager, Banco Generali: The first one is on the CET1 evolution. Could you elaborate on your expectation for the CET1 over the coming quarter? And what key factors should we consider in assessing this trajectory, including inter month? The second question is on the new framework agreement. Can you give us more color on the potential upside related to the insured banking model?
And the third question on the offer of Mediobanca. Without referring specifically to any ongoing consideration, could you discuss what strategic advantages Banker General sees in potential consolidation or partnership within the wealth management sector and how the management view the role of increasing scale and synergies in improving competitive position in the sector? Thank you. Thank you. I will start with the second and the third, and then I will hand over to Mazo, who is so for the CET1 evolution question.
The question of framework the new framework and so the potentiality of mutual banking agreement, I think that you should start by considering that Generali is a very strong brand, is a very wide customer base, and with the penetration needed to the insurance product. So if you know the penetration of the insurance product on the total household wealth, you can work out easily the potentiality of the total assets of the clients reached by Generali distribution channel. So say that the potential is huge. On the offer, let’s say that in in different situation, I have commented on a potential offer from the bank. I know there was noise on this for the last five years.
And I have always said that, basically, from an investor perspective, the combination could make good sense As our impression is that the the two businesses could be complementary. Of course, this is an outstanding analysis just because, you know, I consider banker generally the best player in the wealth management. Now there is great capabilities for the corporate investment banking in in in in Medibanco. So we bought in the month because we believe that you can create synergies, you know, bringing sheet and the state corporate investment banking was managing closer. So this is clear.
And then our business is an economy of scale business. I didn’t say that from a business perspective, this is really crucial process fundamental aspects like the government, business and trading models, all the commercial offer, the distribution assets. And then last but not least, we have the financial perspective because, you know, it should be necessary to understand the underlying assumption of any synergies. So it’s too early to express any opinion on the synergies and on the rationale let’s say, of the the final result of of of the of the offer. As I mentioned, this is a people business.
So mostly depends on how we see to bring to culture closer and how we define the future purpose of the of the potential combination of the two entities. So it’s it’s a long journey, a very long journey. And so from today, since I just received a mandate by the board of directors, we will try to better understand the rationale and the implication and that implication of this offer. So the third one, I will hand over to Tomaso. Thank you, Gianmario.
Let’s say that our total capital ratio is very is still very high because if you compare with the direct requirements, we have at end of the first quarter ’19 point ’2 percent of total capital ratio, which is compared with the direct of 81.5115% for the total capital ratio. So we are back basically to the level of seven twenty three. The reduction, which is in the February was anticipated to the market because operating risk, while the impact of impairment is in the range of 2.3 percentage points. And also in this case, the impact was anticipated. So I think that there is I mean, those factors that the market was expecting.
I have to I can say that also, it’s marked that this is not going to change to have any impact on our dividend policy because it is unchanged. So this is a confirmation that going forward, we expect that we’ll be a growth in the next quarter, which will be basically linked to the net income that we will have quarter by quarter. The last point is that the the 90.2% has implied dividend of the 84% of total net income of dividend payout, which are more or less in the range of 80¢ and or net income per share. Thank you.
Operator: As a reminder, if you wish to ask a question, please press and one on your telephone. Next question is from Marco Nicolas, Jefferies. Please go ahead.
Gianmario Mosta, CEO and General Manager, Banco Generali: Hello. Thanks for taking my question. I’ve got so one on the acquisition of Intermonte. Given that now you consolidated the business, I was wondering if you had another thought about the synergies you can create from from this combination. And so what are what is what’s your expectation in terms of contribution in general or in term on the over the next quarters?
And and then another question on the business plan. If I understood correctly, you decided not to update the market with a new business plan. Is this just are you just postponing until you have more clarity of what happens to your bank in the future, or or you just won’t publish it at all? Thank you. Thank you.
Let’s say that the more we know each other, the more I convince that this is a good deal for us and a good deal for them. There is a stand alone day business plan on Intermountain, and things in my opinion are going better than expected. The first quarter, for example, was higher than my expectation, honestly speaking. So I do expect that for this year, a result that is could be higher than what the consensus implied last year for Intermont. There are plenty of synergies.
It takes time. We see some synergies in the short term, some in the medium term, and some in the long term. I always say that this deal is disruptive will be disruptive to the bank because we are doing something unique. So we are, as I said, I consider the bank the best wealth management, at least pure, less wealth management in Italy, and we are providing all our banks with with these important capabilities. And then in the brokerage and in the trading, we see other risk synergies without considering what we’ve seen that is is an excellent platform.
So we were working these synergies, and we we have communicated numbers at the end of the June. Now I love to be transparent with the market. So I think that we must provide live guidance for the long term. So we will communicate our three year strategic plan in the future once we fully understand, let’s say, the development of the offer. So it’s not just so we will postpone, but we continue to work on it.
Thank you.
Operator: Next question is from Elena Perini in terms of Sao Paulo. Please go ahead.
Elena Perini, Analyst, Sao Paulo: Yes. Good good afternoon, and and thank you for for taking my my my questions. Actually, I’ve got two two questions. The first one is about your performance fees. They were still quite strong in the first quarter.
So I would like to know if you can provide us with some some information about the the distance versus I I watermark. Why why we can imagine that April was a a poor month in terms of con contribution. And then regarding in in term of if you can just let us know the main areas of con contributions, like, imagine in terms of, well, of of top line, the the trading line and the the commission line, and then we will have, I I suppose, the staff expenses and g mail and then d and a as regards the the cost. But just for a quick confirmation for updating our our model. Thank you.
Gianmario Mosta, CEO and General Manager, Banco Generali: Thank you. On the performance fees, of course, you are right. April was two months. We are launching a new strategy. And the two general managers are meeting with the network in this day with the roadshow, important roadshow where we communicate all the new products.
So we do expect important news for the in business strategies, and they should provide performance fee for the last part of this year. On the stock, we have some to change around of $23,000,000,000 that are very close to the high watermark. So depending on the financial market, we could see performance fee again from the next weeks, based on the market, of course. In this moment, I would basically confirm the target for the full year in the range of 78. And then let’s see the market.
For intermittent, let’s say that as I said, that we we have been working through the business plan for the last few months, and we haven’t completed yet the the analysis. But, basically, we confirm what we announced during the previous conference call. We see synergies in brokerage fee space. We see synergies in the in the, let’s say, certificate, structure products and derivatives. And we do see synergies in the combined model, let’s say, wealth management slash investment banking.
So the advantage is about probably m and a fees, but even more important, inflows. But we will provide details in the, you know, in the coming months, as I said, after more clarity on on the offer. Thank you.
Elena Perini, Analyst, Sao Paulo: Thank you. And if if I may, I’ve got another another question about your man management fees, the the pure management fees. Actually, they were basically flattish versus the fourth quarter. We can expect, like, maybe some pressure due to lower average assets under under management for the for the second quarter. And then what we we can expect according to market trends recovery in the in the second half of this of this year just to have an overview of the of the trend of this very important line of your p and l.
Thank you.
Gianmario Mosta, CEO and General Manager, Banco Generali: I’ll just say that on the stock, the management fee were impacted negatively by the the volatility of the market with recovery in this date. So depending on, let’s say, the next week, it could be that with the recovery, we recover also the management fees. Then there is some provinces, some I don’t know if there’s a the active manager. So the the financial buffers and other solution are positioned with a more prudent profile. So this is tactical.
And non general can focus on the on the inflows. Let’s say that our perception, we gave numbers for April in the May. The reaction of the financial value network is positive, but most most depends on the next weeks in terms of markets. But I don’t see, in this moment, negative particular negative impact on the overall management fee, neither margin or commission.
Operator: Okay. Thank you very much. Next question is a follow-up from Luigi De Bellis, Evita Singh. Please go ahead.
Gianmario Mosta, CEO and General Manager, Banco Generali: Hi. Thank you. Two follow ups, if I may. The first one, could you quick update on the BG Swiss Private Bank project? And second question on the one of your competitors highlighted the strong client activity including to ETFs.
Are you observing a similar trend within your client base? And how do you plan to capitalize on this growing interest? Thank you. On the DGCs, we are in line with our expectation. We are close to close the important recruitment.
As I said, that the the, let’s say, onshore business, it mostly depends on the equipment or acquisition of smaller external asset managers. I don’t think that the current condition of current offer will impact will impact negatively on on the the the negotiation process. For the, let’s say, the development from the Italian perspective, this business, we have implemented almost all the products yet to launch and we’re starting positive numbers. So we said that overall, I’m confident there is a regulation change, a government change, and we are starting the verification, And we have to see opportunities to open a branch in Italy. This could accelerate or impact negatively our targets depending on some conversation with regulatory.
As of today, it will be positive for us. In terms of EPS, you know, we are so we have a significant amount of EPS. Now we have volumes of around $2,530,000,000,000 per year of EPS. And in the three year strategic plan, one of the projects was about how to internalize and part of, let’s say, the margins generated by these volumes. I used the past, but let’s say that we I’ve been working.
We continue to work on it despite that they say the senior year strategic plan. We see some synergies with the Monte on this specific topic, and we have some strategic force. Thank you.
Operator: Next question is a follow-up from Marco Nikolay, Jefferies. Please go ahead.
Gianmario Mosta, CEO and General Manager, Banco Generali: Hello. Quick follow-up. Can you please remind us your guidance in terms of NII costs and also net inflows? Apologies if you if you have already said the last one. Yeah.
Just a quick reminder on on the guidance. The current guidance, and we say that we would update we would have to update this guidance during our strategic plan, but we say the current guidance that we communicated in the previous conference call is our net interest income above €300,000,000 of a growth of survey of the course base of the operating cost and so the core operating cost in the range of 8% 8%. And the the the third one was let me see. The net inflows, we said that total net inflows above 6,000,000,000. Total net inflows in Ashtogandan investment above 3,500,000,000.0 and are all confirmed.
Thank you. Welcome.
Operator: For any further questions, please press and one on your telephone. Mister Mosta, there are no more questions registered at this time.
Gianmario Mosta, CEO and General Manager, Banco Generali: Fine. So thank you for attending our conference call, and have a good weekend.
Operator: Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.
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