"We expect growth to remain robust in terms of total assets, assets under management and revenue, a continuation of our progressive, steady and non-volatile improvement in commercial activities and results." spiega Foti. "We expects the bank to generate most of its net inflows organically, through existing financial planners or directly, and also plan to hire about 100 advisers this year to boost the private banking network". Infine sul progetto UK: "Initial response in the U.K. has been above expectations. We're offering U.K. residents transactional banking, brokerage and, in the next few months, investing".

1. Fineco CEO Expects ‘Robust’ Growth in Inflow, Revenue, Assets
2017-06-08 14:03:52.906 GMT
By Sonia Sirletti
(Bloomberg) -- FinecoBank SpA, the online bank controlled by Italy’s biggest lender UniCredit SpA,
expects robust growth this year as it focuses on organic expansion and diversifying its business
mix.
“We expect growth to remain robust in terms of total assets, assets under management and
revenue,” Chief Executive Officer Alessandro Foti said in an interview at the company’s
headquarters in Milan. The bank is targeting “a continuation of our progressive, steady and non-
volatile improvement in commercial activities and results.”
Fineco also wants to diversify a business mix to focus more on lending and asset management in a
bid to reduce concentration risk and add more lucrative products. While the CEO said he expects
the bank to generate most of its net inflows organically, through existing financial planners or
directly, he also plans to hire about 100 advisers this year to boost the private banking network.
“We’re interested in recruiting, not going into ‘war mode,’ ” said Foti, 56, who often cycles 40
kilometers to work from his home in the city of Pavia outside Milan. “Recruiting is great for
improving the quality of the network, but it has to be treated in a careful way because it’s extremely
expensive.” The company also plans to increase the weight of lending activity on total revenue,
with the focus on personal loans, residential mortgages and Lombard credit. Foti reiterated a target
of 700 million euros ($786 million) of mortgage loans forthis year. Corporate Bonds Fineco’s net
sales rose 9 percent in May to 464 million euros, bringing year-to-date sales to 2.4 billion euros,
the firm said in a statement Thursday. Last month the bank said first-quarter profit rose 0.9 percent
to 51.7 million euros, as higher income from banking and investing more than offset non-repeated
gains from government bond sales a year earlier. More than half of the company’s assets are
invested in UniCredit corporate bonds and some analysts, including Elena Perini at Banca IMI
SpA, have cited that positioning as a potential risk. The holding totaled 12 billion euros at the end
of March.
”Concerns about the bank’s concentration of UniCredit bonds are totally misplaced,” Foti said,
adding that risk on UniCredit senior bonds is aligned with Italian government bonds. “UniCredit
completed an incredibly successful capital increase making the group one of the most solid
systemic banks in Europe, so there’s nothing to be concerned about on these holdings.” Fineco’s
banking and financial services in Italy run through a digital platform and a network of about 2,600
financial advisers. The company, which has more than 63 billion euros of total financial assets, has
been the best performer among Italian banks and asset gatherers this year. Fineco shares are up
33 percent this year, compared with an 11 percent gain for the FTSE Italia All-Share Banks Index.
Foti ruled out acquisitions because the bank is seeking to grow organically abroad. Last year the
company began expansion in the U.K. based on its Italian infrastructure.
Given the digital model, expansion abroad is a “free option” in terms of costs, Foti said, adding that
initial response in the U.K. has been above expectations. “We’re offering U.K. residents
transactional banking, brokerage and, in the next few months, investing,” Foti said, noting that the
expansion model from the U.K. can be used in other countries in the future.
--With assistance from Dan Liefgreen and Vidya Root.