Banca Mediolanum S.p.A. (BMED) Earnings Call Transcript & Summary

Good day, and thank you for standing by. Welcome to Banco Mediolanum Full Year 2021 Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Alessandra Lanzone, Head of Investor Relations. Please go ahead.

Good afternoon, ladies and gentlemen, and welcome to this meeting today. The presentation of our full year results will be led by our CEO, Massimo Doris, and our CFO, Angelo Lietti, will also present also with us. Please make sure that you ask your questions in the language of the language line you connected to. All answers will be in Italian with an English translation. [Operator Instructions] And now I'll hand this over to Massimo. Thank you.

Thank you, Alessandra, and welcome, everybody, and thanks for joining us today. It's such a pleasure to be sharing the results of the year like this with you, the best year ever in our history on all fronts. Of course, there was also a very sad event, the loss of my father, our founder. And just a few words here. You all knew Ennio Doris as an illuminated innovator and a recognized groundbreaker in the financial world. And for us at Mediolanum, he was our North Star who guided all of us with his legendary vision and optimism you are so familiar with. We are now embarking on a new era without him. But his spirit lives on with every single person at our company. So we will continue the path that he set for us with the same enthusiasm and dedication. He would be so incredibly proud of the results we are presenting today, which he already envisioned so many years ago, indeed, 40 years ago, when he concretized his dream and funded our company. You should actually be aware that we celebrated our 40th anniversary, a significant milestone the last week, February 2 with a virtual convention that was a trip back in time, paying tribute to the protagonists, the events, the indelible images in our mind and the storytelling from those who lived the first amazing 40 years of explosive growth and success of the Mediolanum Group. And clearly, I, too, am awfully proud of our results for this past year. So let's move on to the key takeaways of 2021. First and foremost, the business result highlights, which underscore the rationale behind the healthy pace in the growth of our revenues. Net inflows hit an all-time high of EUR 9.2 billion, a marked increase of 19% over an already record year, mostly going into extremely high-quality miles assets to the tune of EUR 6.7 billion, up 62%. This was mainly thanks to the reliability of inflows coming from our trailblazing automatic investment services, namely Intelligent Investment Strategy, Double Chance and our installment plans. And thanks to our outstanding inflows, coupled with strong markets, our total assets reached a record level of EUR 108.4 billion, a steep change of 16% since the start of the year, bringing the 10-year CAGR to a solid 10.5%. Our credit book grew as well to almost EUR 14.4 billion, maintaining a very low NPL ratio of 0.76%. Consequently, the high quality of our credit book has been confirmed once again with a cost of risk of only 15 bps. Here, we can acknowledge the significant increase of 28% in loans granted to customers, which came in at EUR 3.9 billion, especially in our variable rate mortgages despite the tough competition from fixed rate mortgages. Of course, these have a notable impact in supporting our revenue stream. In 2021, we were also able to boost our high-margin general insurance business focused on protection policies, 23%, in line with the goal of providing customers coverage for events that put their income and personal savings at risk. These strong business results led to a superb economic performance last year, which saw an all-time record net income of EUR 713.1 million, surpassing 2020 by 64%. The significant jump of 29% in the operating margin, our guiding light, which totaled EUR 503 million, underscores the strength of our recurring business and of the increasingly reliable operating jaws. Indeed, we are generating revenues at the fastest clip than we are generating expenses, thereby supporting our profitability. In fact, our cost/income ratio, excluding market effects, dropped from 54.3% in 2020 to 50.6% in 2021, well ahead of the guidance of a drop of 2 percentage points we provided at the beginning of the year, also thanks to higher-than-expected average AUM. And our target of staying consistently below 50% by 2024 remains intact. In greater detail, our net commission income rose by a healthy 14% as a result of strong fee contribution from all areas of business, notably, management and investment management fees, up respectively, 19% and 21%; and of acquisition costs that are largely in line with gross commission income and with incentives paid on a record year of managed asset inflows. Please note that no change whatsoever has been made to the payout to Family Bankers. Speaking of recurring fees, note as well, that margins on an average managed asset remained largely stable at 205 basis points as a result of a combination of equity AUM growth on one hand and, on the other, some money market fund flows into the intelligent investment strategy service. Net interest income was on the rise as well, a solid increase of 9%, thanks to the growth in lending and good cost control in retail funding. Therefore, our contribution margin was sound at over EUR 1.2 billion, up 16%. On top of the impressive results we achieved with our operating margin, it goes without saying that market effects in 2021 had an exceptional impact on the P&L with EUR 348 million performance fees generated and almost EUR 45 million of mark-to-market revaluation of the stake in SIA now acquired by Nexi. And that's how we get to our all-time record net income. Definitely a special year, which merits a special recognition. And so Banco Mediolanum, loyal to its DNA, has decided to share this success with all the contributors through a concrete expression of thanks to our principal stakeholders. Namely, every single employee and Family Banker of the group will receive an extraordinary bonus of EUR 2,000 while a special dividend will be recognized to our shareholders on top of the already generous base dividend. In fact, the Board of Directors will propose a balanced dividend distribution of EUR 0.35 per share at the Annual Shareholder Meeting in April, which brings the dividend per share for 2021 to EUR 0.58, having already paid an interim dividend of EUR 0.23 per share last November. The dividend per share of EUR 0.58 consists of a base dividend of EUR 0.46, an increase of 5% over 2020, and a special dividend of EUR 0.12 based on the extraordinary performance of the company. So switching gears. From income statement to the balance sheet, we see a return on equity that consistently exceeds the average of the banking sector by far, reaching 25.4% for the year with a solid 10-year average of 21%. Our CET1 ratio of 20.9% after the dividend distribution of EUR 427 million clearly demonstrates our more than robust capital position. Also, our leverage ratio of 6% is well above Basel III requirements and already compliant with MREL policy targets for 2024, namely 5.33% of leverage ratio exposure. Now I would like to highlight a few factors that represent our principal growth and resilience drivers. First of all, our effort in customer acquisition resulted in a notable jump of 27% to the tune of 170,000 new customers acquired. And this led to a solid increase of 7% in our total bank customer to around 1,587,000 customers. This implies a net increase of 100,000 bank customers, also thanks to the success of the Selfy account with 16,000 net customers acquired. Even though these numbers are considerable, we managed to maintain a very strong 95% retention rate on bank customers. And now turning to the network numbers. After a decade or relatively like last year growth in total head count of Family Bankers, we finally saw a visible increase of 6% to 5,762 not only thanks to the jump in our Spanish network but also to the net number in Italy, which increased by nearly 4% to 4,258. This is thanks to the targeted recruitment of professionals from the other sectors as well as the success of the quality and productivity improvement programs resulting in a lower attrition, half of that of just 2 years ago. But I'd also like to focus on private bankers and wealth advisers whose numbers grew steadily, reaching EUR 787 million, a material increase of 42%. These advisers were particularly able to harness the propensity to save during the pandemic, doubling managed asset flows coming from the high net worth customers. And lastly, let me talk about our automatic investment services that are perhaps the most significant growth and resilience driver that differentiates us. These services serve as the main gateway to achieving maximum investment return for customers, fully exploiting our unique investment strategy of 360-degree diversification over the long term, making gradual and automatic investments and taking advantage of the market volatility. Just so you know, we now have EUR 5.4 billion sitting in money market funds of Intelligent Investment Strategy, plus EUR 1.5 billion in deposit accounts of Double Chance, a total of almost EUR 7 billion slated for equity funds over the next few years on a monthly basis. And on top of this, please note that, in 2021, flows into installment plans reached a total of an additional EUR 1.5 billion. These automatic services guarantee a substantial reservoir of assets destined to be invested in equity every month, supporting future flows and margins. And while we are on the subject of flows, let me reiterate that we believe 2022 can be a repeat of this past rewarding year. By now I think it's clear that our advisory model that we pioneered decades ago is a winning model and responds better than anything else to whatever the markets throw at you. In fact, let's look at Spain, which is a tangible example of the effectiveness of our model. Spain reached EUR 9 billion in assets with net inflows into managed assets growing 36% and the net income that is now contributing at a very appreciable level at EUR 45 million, an increase of 43%. We are far better positioned to continue to perform compared to the other players in the market. It's exactly our advisory model that allow us to stabilize a very high level of flows, thanks to an aggressive approach to equity, which is, at the same time, very methodic thanks to our proprietary automatic investment -- investing services. Just look, for example, at our January net inflows. In a month that is historically the weakest of the year marked by strong seasonality, we were able to generate EUR 411 million of inflows into managed assets, surpassing January last year by 34%. Given the prevalence of long-term investment solutions such as unit-linked policies with a high equity component, these inflows were of an outstanding quality. Administered asset inflows were strong as well, more than 5x those of a year ago, confirming the trust that our customers are willing to place in Banca Mediolanum. As a matter of fact, we continue to see growth in customer acquisition numbers as well as in the Family Banker head count, and we expect that these numbers will continue to pick up over the year. We come out of 2 impressive record years, 2 years of unpredictability, a very difficult 2020, the year of the pandemic; and a very complex 2021, when recovery was continuously interrupted by the various ways. The trying events that unfolded over these years gave us a unique opportunity to demonstrate our true strength, pivoting on our model that combines state-of-the-art technology with a tangible presence of a qualified adviser, our Family Banker, radically changing the relationship between bank and customer, making people the true driver of the choices we make. This mix gives us the weapon of great flexibility in consenting us to meet with our customers whenever, wherever, thanks to our technology, which is scalable, by the way; and in being able to provide all services even remotely through our Family Bankers who are not glued to be in just one place, as happened with traditional banks this past couple of years, who struggle very hard to overcome physical restrictions. And saying these words today, 2022, my father's IPO speech in 1996 comes to mind. I'd like to share his closing comments from that speech made 26 years ago, if you'll indulge me. I also believe -- this is my father speaking. I also believe that we are now in an excellent position. We have the opportunity for continued growth both for the company and for shareholders' value, and we have strong management in place to secure this growth. The future is difficult to predict, but I am certain about 2 things. there will be change, and there will be more competition. The companies which will succeed in this environment are those who are flexible and those who seriously innovate, 2 of the key principles on which Mediolanum was founded in 1982. Mediolanum is now much larger than when we started, let alone today, but we approach our market and our competition with the same enthusiasm and energy. I can assure you that our entrepreneurial spirit will continue. Change is our way of life. And we look forward to the challenges of the next decade. Our people are ready for these challenges and are committed to delivering sustained growth for the benefit of our new and existing shareholders. This is from the speech of 1996 and then -- so that is shared with the community. So I hope that the years ahead with us will be exciting, of course, as were our first 40 years and then 26 years as a listed company that we have spent together. Thank you, everyone. And now we can open the floor to questions.

[Interpreted] [Operator Instructions] The first question comes from the line of Domenico Santoro, HSBC.

[Interpreted] I have a couple of questions concerning NII. It's an item that is extremely important. It's a line item. The market focuses on a lot at present. You are doing well in managed assets. But I'd like to understand why NII has been growing quarter-on-quarter, as you showed on Page 33, while deposits are going up. I expected that the markdown would erode your interest income. And instead, you are doing very well. So I'd really like to know how your spread is made up. What kind of mix you have there? Also, the sensitivity you gave to a 100 basis point variation, does that have an impact on the margin. Some of the bonds you have, have been swapped. So shall we still refer to the 3 months Euribor, which you use once again as a basis for the -- for these swaps, for these changes? Shall we expect NII to go up next year as well because we have seen that government bonds are going up? Banking fees for structured products, do we expect -- do you expect some reduction there because interest rates are moving in the opposite direction? And also what's the outlook on insurance, on the insurance business?

[Interpreted] NII growth in the last quarter, I have to say it's true that deposits increased. But since we are paying 0, practically 0 interest rate on deposits, this, of course, did not push up our cost of funding. But on the other side, on the other front, instead our retail products, namely mortgages and loans, have grown significantly, which obviously pushed up and supported our NII. As far as sensitivity is concerned, I'd like to make a comment first, and then I'll hand it over to Mr. Lietti. So as far as mortgages are concerned, they are indexed to the Euribor. Please consider that the vast majority of our mortgage loans use -- I mean set the Euribor rate at a minimum of 0. So the floor for Euribor is 0. So up until Euribor doesn't go down to 0 actually, this is not going to have an impact on our mortgages. And when it was going down, it did not impact our margin because the floor was 0, like I said. If the Euribor goes up by 100 basis points, obviously, we overcome that 0 hurdle, and we start reaping benefits. Then we have another effect generated by treasuries, CCTs, which are bolstering our margin. Considering the interest rate picture at present, we'll see what is going to happen in the future, but our choice not to go for fixed rate mortgages most likely will turn out to have been farsighted, a choice that is not going to create future difficulties for the bank. Then you also asked a question concerning structured products, true. Truth be told, rates are rising, but the ability to assemble a good certificate, a good structured depends on the combination of rates and volatility. There are certain points in time when you can construct good products and other times when that is not possible. So from quarter-to-quarter, the sales of these products may vary as well as year-on-year. They may vary year-on-year as well. There were years when we stopped simply selling these products. Nonetheless, inflows were quite good. So I'm not saying we're going to stop selling them. But if they give a smaller contribution, I'm sure we will make investments in other types of managed asset products. Our network will simply not stop selling only because there are no good certificates available. They would offer some alternatives to customers. A replacement cannot happen at -- I mean there won't be a 100% replacement, but it's not something that really worries me. Thank you, Domenico.

[Interpreted] Next question, Giovanni Razzoli, Deutsche Bank.

[Interpreted] I have 3 questions. The first has to do with Spain. You highlighted, and it's clear, that this is an area of potential upside in the midterm. But I've noticed that in Q4 with EUR 18 million worth of performance fees, the net income is only EUR 19 million. I don't know whether I calculated that correctly, but this should be more or less the figures. I wonder whether there were any extraordinary or nonrecurring costs that have deflated in the bottom line. Second question, capital -- your capital position. You set a leverage ratio. I believe this is going to be the future benchmark for your peers. It's the highest ever, 6%. Are you considering the possibility of changing your capital structure, optimizing it with some subordinated loan? And what would this entail in terms of dividend policy or, in any case, the capital remuneration? Last question. One of your competitors said that they want to revise the performance fee structure that had already been revised in 2019. Is there any regulatory pressure to do so? Or is something that has nothing to do with you?

[Interpreted] Talking about Spain. The fourth quarter has been weighed down by the decision of paying the EUR 2,000 bonus to employees and to financial advisers. Why was this higher percentage-wise compared to Italy? If we consider performance fees, the Irish and the Italian one, there, you only have the Irish one. But then in Italy in the fourth quarter, we have to consider also strong contribution, even though this was already there before that, but it's S-I-A or the SIA revaluation with OICR. But this is really what makes the difference. And then there's Mediobanca's dividend, which is not present in Spain, of course, but this was really due to this single decision. As to the leverage ratio, sure. We are thinking of issuing subordinated loans in the future so that our capital ratios can turn out more flexible and not be comprised only by Tier 1 capital, again, because we want to be leveraging with our dividend distribution. As to performance fees, talking about Ireland, we are in line with ESMA's requirements, no changes needed. Azimut probably used a calculation system that was not compliant with ESMA's requirements and, therefore, had to revise them. But this is not the case for us, whereas with Ireland, as of this year, we have changed the performance fee calculation system for our Italian-based funds. 4 out of 5 funds were not in line, and therefore, we brought them back in line. But let me remind you that the -- I mean, Italian funds out of total funds are -- account for a very small percentage. And therefore, this is not going to be a major problem.

[Interpreted] Alberto Villa, Intermonte, has the next question.

[Interpreted] Thank you for sharing some memories of the founder with us. We do miss him. I've got a few questions on the commercial side. What's your take on 2022 in terms of both funding but also in terms of inflows in general but also mortgages? Also anything you want to share with us in terms of products for the network? Are you going to once again focus on the Intelligent Investment Strategy? Is this going to be a focus point this year as well? And then I'd like to know something about distribution. In 2021, as you said, the number of Family Bankers increased in Italy as well. Is this a trend we are to expect to continue in 2022? Any specific updates concerning the number of Family Bankers?

[Interpreted] Well, I expect that 2022 commercially speaking in terms of sales, in terms of distribution will be a replica of 2021. So EUR 8 billion, EUR 9 billion net inflows, 6.6 inflows into -- net inflows into managed assets. It won't be easy, but I think it's within our reach because we reported these inflows not because of some nonrecurring operation, some nonrecurring initiatives such as the 2% interest paid on banking accounts, for instance. That was due to the steady growth of the network in Spain and to the resumption of our networks growth in Italy. Of course, should market crash once again and shed 40%, then of course, we would have to question the possibility of reaching these results, but that would be a problem for everybody, not just us. As far as products, new products. Well, we'll be launching new products this year as well also in 2022. But by and large, our strategy is unchanged, diversification and the 5 Ds; and also, a strategy that relies on the intelligent investment strategy as well as Double Chance to identify the right entry point into markets. January has been a rather volatile month in terms of market performance. Nonetheless, we had net inflows into managed assets of EUR 411 million compared to EUR 307 million in the same period last year. Speaking once again about the growth in the number of family bankers. I do expect this trend to continue both in Spain and in Italy, once again, because this is not the fruit of chance -- but rather, it's an effort that dates back too long ago. It's an endeavor that we started long ago, first of all, trying to improve the quality of our Family Bankers network. We became more selective, which, of course, limited the number of people that joined the network for a certain number of years. So we shed a number of people who simply didn't make it, weren't quite up to it. But the average quality of the network became excellent. So now we are losing a very limited number of people along the way. In 2021, the Italian network has shed only 2.8%. For years, we had been below the 5% mark. But as low as 2.8%, we had never gone before. I expect growth to continue. I expect 150 new bankers to be added to the Italian network, and I expect even more in -- more of them maybe in Spain for a total addition of about 300 or 350 advisers on the whole. Speaking of Italy. We have EUR 22.9 million in terms of assets under management, and 45% of Family Bankers in Italy manage more than EUR 20 million. In 2011, that percentage was equal only to 6%. So there is a change of step, which is really quite obvious, which can be appreciated also by looking at the number of private bankers and wealth advisers. Their numbers have been soaring, has been really growing compared to 2020 from 544 to 768 in Italy. So in a couple of years, we may decide to raise the bar even more to gain access to the family of private bankers or wealth advisers. Let me remind you that private bankers -- to become private bankers, they had to have at least EUR 15 million AUM. In 2020, we raised the bar. We warned them a couple of years before that. And in 2020, we raised the minimum from EUR 15 million to EUR 25 million, and that is why we see that decline over that period of time. And wealth advisers have to have at least EUR 60 million AUM. And we went from EUR 35 million in 2018 to EUR 125 million in 2021. So steadily raising the bar, as you can see, which means that the professionalism and quality of our network is steadily improving, too. Thank you, Alberto.

[Interpreted] Next question Elena Perini, Intesa Sanpaolo.

[Interpreted] I have a couple of questions. With respect to volumes, you've already been very clear as to what you expect. I would like to ask you whether talking about mortgages, considering that new loans for this month, new lending compared to January last year was rather different. Do you expect any risks with rising rates? So do you think that while still growing, however, it's going to be slower? And then I wanted to ask you about costs. I could not -- I was not here at the beginning of the presentation, so maybe you already covered this. But do you have any guidance with respect to general and administrative expenses for the current year?

[Interpreted] With respect to loans, last year, we really achieved a great result, EUR 3.9 billion. This year, we don't expect to exceed this volume either in line or maybe even slightly lower. But consider that this would be add-ons. I mean -- and we are still having a growing loan book. Then you asked about costs. In 2021, the cost/income ratio dropped from 54 point -- now I can't remember exactly what it was, 54.3, they're telling me, down to 52 -- I'm sorry, to 50.6. So it went from 54.3 to 50.6, an important drop driven by the fact that revenues grew much faster than cost, supported also by markets that performed well and therefore pushed volumes upwards and this was beneficial for net funding. So we were thinking about 52-point something in terms of cost-to-income ratio for 2021. But as you see that it was much better than that, and we got to 50.6. As to this year, we expect to be more or less in line with the 50.6% ratio. But the goal as of 2024 is to be under 50%. Consider that no market effects have been included. So the cost/income ratio in reality is much lower. But we would rather calculate it without taking into consideration market effects so as to have a less volatile figure. Thank you, Elena.

[Interpreted] Luigi De Bellis, Equita SIM has the next question.

[Interpreted] The banking book, could you please share with us the current position? And also, could you provide us with an update on your financial investments in Italian government bonds? Do you expect to increase your exposure considering the current rates? And interest rates, or better said, NII, sorry, I joined the conference late, and so probably you covered the item already. But I'd like to know what kind of effect you expect rising rates will have on NII in 2022.

[Interpreted] Banking book, that was your first question. As you can see on the slide, it's almost all in held to collect in this bucket. Here, you can see that the average maturity of the banking book is 2.8, and we have 100% govies, government bonds, Italian government bonds. And we have 65% CCTs, 35% BTPs, very short-dated, all of them. Speaking of rates. In terms of retail customers, we'll continue offering floating rate mortgage loans. And as far as treasury investments are concerned, we are -- intend to replace the bonds that mature during the year, but we will stick to a floating rate instrument. We have 2.1 billion bonds that are about to mature and we have already started replacing them. Then you asked about NII in 2022. We expect it to be in line with 2021. In the last few years, since 2018 -- from 2018 to 2021, NII has been growing. In 2022, we expect it to be flat. Thank you, Luigi.

[Interpreted] There are no questions on the Italian line, so let's switch to the English line.

The next question comes from the line of Hubert Lam from Bank of America.

Most of them have been asked already, but I've just got one more. You mentioned your plan on growing more advisers and bankers this year, even more than last year. Has the cost for hiring these bankers and advisers grown just given the competition and demand for good advisers out there?

[Interpreted] Recruitment costs for recruiting new bankers are in line with previous years. And as it was the case back in 2021, we expect to acquire 70% to 75% of bankers from other sectors. In this case, there would be no so-called acquisition bonus. Whereas the residual 25%, 30% would come from the banking industry. In this case, a bonus is paid for recruiting these bankers because, of course, they would bring with them greater volumes. But it's always between 2% and 2.5% cost vis-a-vis the assets under management they bring with them. We will still recruiting from other sectors. There, the acquisition costs, as I said, are lower because they are just being paid the ordinary commissions that are paid to any family banker. And in the short term, their ability to acquire more volumes, and it's lower. But if I take a look at the 768 bankers working for us within this category, the greatest majority does not come from the banking industry. It takes a few years. They have to build up their experience, but many of them come from other sectors. So the fact that we still recruit most of our bankers from other than the banking industry is really giving us a lot of good results because it gives us the opportunity to train them and to make them successful. Let me add one thing. Let me add the following. The increase in acquisition cost that was reported -- I already said this during my speech, but I want to repeat this -- are due exclusively to the fact that this was a record year with respect to managed assets and inflows because the payout has not changed with respect to the network. Thank you, Hubert.

The next question comes from the line of Angeliki Bairaktari for Autonomous Research.

First of all, on NII in Q4. You saw on Slide 33 that the interest income margin has increased from 85 basis points to 91 basis points. So I was wondering what actually drove this increase, if you can give us a little bit more color on that. Second question. Was the strength in the January flows that you mentioned earlier, driven by a step-up of automatic investment plans, given there was a market correction? And so effectively, we had a [ beginner ] deep in markets, and those plans went -- moved more deposits or money market funds into equity? Third question. What percentage of the rate rises do you expect you will have to pass on to depositors, if any? And where do you see your cost of funding, especially your retail cost of funding under the new rate scenario that we currently have in the market? And lastly, with regards to insurance revenues, those were a little bit weak in Q4. Was there anything in particular that could explain that Q-on-Q decline? And what is a good run rate level for insurance revenues in 2022, please?

[Interpreted] As far as your first question is concerned, fourth quarter NII, we repriced the retail positions and also certain treasury bonds were replaced because they were maturing. And so we replace them and that caused the change in NII. As far as the cost of funding is concerned, it's true rates are going up, but it is not short-term rates that are going up. They are standing still at present. So we are paying 0, we are just paying 20, 25 basis points to our most significant customers. We don't expect to increase the rate we pay on deposits. But this year, we'll see. We'll sit and wait. But if this happens, if we are to actually raise the deposit -- the rate we pay on deposits, at the same time, the mortgage rates that is indexed to the Euribor will increase as well. So the 2 things will offset each other. As far as insurance is concerned, I'm living through the material because I'm trying to get to the right page. So there was an increase in terms of premiums written. But then there was also a change that affected the technical reserves. And we have to make those adjustments. At year-end, the adjustment to insurance technical reserves caused this decline in Q4 for this line item, namely revenues. Well, as you know, this line item is affected by various factors, but we expect protection premiums to go up by about 20%, 25% every year. Did I forget something? Oh, yes, you wanted to have more details. You wanted me to add color to the EUR 411 million in January. If you don't mind, we'll let you have this information later on. We'll call you up and we'll provide you with additional details because it's a bit complex. It's a bit complicated. A portion is generated by banking accounts. The other part is already managed assets because IIS that are invested into equity funds are anyway coming from managed assets. So there is no shift from money market products, from money market funds to managed assets. But I will provide you with a detailed explanation afterwards. Thank you, Angeliki.

There are no further questions from the English line.

[Interpreted] There are no questions from the English line as well. [Operator Instructions] No questions from the Italian line. I hand it over to you for the final remarks.

[Interpreted] Thank you. Let me repeat once again that I am extremely happy with these results. And I am confident and extremely positive with respect to 2022, what we are going to do because we can rely on a structure that has proved to be able to perform very well in a year such as 2020 was, where we had to cope with a major emergency. In 2021, things were a bit more under control, even though we had different pandemic waves with more or less restrictions and lockdowns. So even though we kept on working throughout the year with 10%, 15% of people would work from the office and the rest would work from home, no project was interrupted. So not only did we keep on working on and keeping our ordinary business going, but we also kept our projects up and running. So I'm really confident for 2022 as well. In any case, should any unexpected events occur on the market, thanks to the structure we have with IIS, Double Chance and the installment plans, and our long-term view strategy allows me to say that we are going to perform well. Of course, it's very difficult to exceed EUR 9 billion worth of managed assets or 6.6 with extremely adverse markets. In that case, we would report a slowdown. But generally speaking, in adverse markets, we used to gain market share, considering the EUR 7 billion amount that is going to be switched and invested into the equity market. I think this is a wonderful stepping stone and a good way to start. The conference call is thus completed. We'll see you next -- for the next conference call, and I wish you all a good evening.

[Interpreted] Ladies and gentlemen, this is the end of the conference. Thank you for participating, and you can disconnect. Thank you. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]