Banca Generali's share price declined 7.5% on Wednesday despite the asset manager reporting quarterly and annual results that outperformed analyst expectations.
For the fourth quarter the private bank, owned by Italy's top insurer Generali (MI:GASI), recorded a net profit of €131.2 million, well above the bank-provided consensus estimate of €99.8 million. Total banking income for the quarter came in at €277.7 million, surpassing the consensus figure of €255.6 million.
On a full-year basis Banca Generali posted a net profit rise of 3% to €445.8 million, topping market expectations of €414.4 million. The firm also reported record total assets of €113.5 billion.
Management proposed a cash dividend of €2.90 per share and disclosed a Common Equity Tier 1 (CET1) ratio of 17.1% at the end of December, underlining a robust capital position. January net inflows were reported at €451 million, indicating continued client activity into 2024.
Looking further ahead, Banca Generali reiterated its 2026 guidance: the group confirmed expectations for cumulative net inflows above €6.5 billion and forecast net interest income in a range of €330-340 million by 2026. The company also reaffirmed an outlook for "core" operating costs to rise in the 6%-8% band through 2026.
Management outlined contributions from strategic initiatives. The planned integration of Intermonte is expected to deliver additional revenues of €10-15 million by 2026, while an insurbanking partnership with Alleanza is projected to add €40-50 million in net revenues by 2030.
Despite stronger-than-expected earnings, the market reaction was negative in the immediate term, with the share price sliding 7.5% on the session following the results release.
Contextual note - The figures above reflect the company's reported results and guidance. The stock move indicates a divergence between reported fundamentals and investor sentiment on the day.