Banca Generali posts record first-half profit of €279m

Investing.com -- Banca Generali SpA reported net profit of €279m for the first half of 2026, up 39% YoY, driven by operating normalization and supportive financial markets, though shares fell 1.4% following the results.

The Italian private bank's recurring net profit reached €202.1m, up 14.6% YoY, reflecting asset expansion and strong commercial momentum. However, results included a €20m additional tax charge at the bank's Luxembourg subsidiary BG FML, following the current unavailability of tax benefits. The bank said it remains confident this tax headwind can normalize over time and gradually move to a 27-28% range by 2028.

Total assets under management reached €121bn, up 14% YoY, fueled by record net inflows of €4.4bn, up 47% YoY. The bank raised its full-year 2026 net inflows target to approximately €7.5bn from a previous €6.5bn.

"Best first half results ever," the bank stated, highlighting net profit growth driven by operating normalization and supportive financial markets.

Total gross fees climbed 25% YoY to €742m, with variable fees tripling to €126m due to favorable market conditions. Gross recurring fees rose 12% to €616m, supported by asset growth and diversified revenue streams. Net financial income increased 7% to €189m, benefiting from higher trading gains.

Operating costs rose 11% to €182m, reflecting continued investments in IT, data and artificial intelligence infrastructure. The cost-to-income ratio improved to 36.7% from 39.0% in the first half of 2025.

The bank's CET1 ratio stood at 17.2% and total capital ratio at 19.0%, both well above regulatory requirements, after assuming an 85% dividend payout. The advisor network expanded to 2,473 financial advisors, up 3% year-to-date, including 64 new senior professionals.

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