MILAN (Reuters) – Italy’s Banca Generali does not expect to take part in big merger deals although smaller ones could be a possibility, its chief executive said on Monday as the asset manager pledged to grow net profits by up to 15% each year to 2024.
In a press briefing to present a new three-year strategy, Chief Executive Gian Maria Mossa said large tie-ups with other players would be complicated by the company – the wealth management arm of Italy’s top insurer Generali – having, for example, different distribution models to its peers.
“At this stage, I do not see room for transformational deals,” he said.
Financial services group Mediobanca in late 2020 considered swapping its 13% stake in Generali with Banca Generali but put the deal on hold due to COVID-driven market volatility, a source familiar with the matter said at the time.
Nonetheless, analysts consider consolidation in the wealth management industry as inevitable.
During the briefing, Mossa said he was “happy” he could count on the strength of Generali’s brand.
Banca Generali said it planned to pay out between 7.5 and 8.5 euros per share in total dividends over the three years to 2024 as it aims to attract new clients with personalised products, and boost digitisation and sustainability.
The asset manager, which mainly offers personal finance services, expects total net inflows of between 18 billion and 22 billion euros through 2024, as well as 10-15% growth in net profit each year.
It also committed to reach net zero emissions by 2040.
Banca Generali last week posted a record full-year net profit and said it would distribute a dividend of 1.95 euros per share on 2021 results.
($1 = 0.8847 euros)
(Reporting by Federico Maccioni and Gianluca Semeraro; Editing by Kirsten Donovan)
