Good afternoon. This is the Carsco Conference Operator. Welcome, and thank you for joining the FinecoBank's second quarter 2025 results conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on the telephone. At this time, I would like to turn the conference over to Mr. Alessandro Foti, CEO and General Manager of FinecoBank. Please go ahead, sir.
Good morning, everyone, and thank you for joining our second quarter 2025 results conference call. Before moving into the details of the presentation, let me stress that FinecoBank is recording a sizable acceleration of its growth dynamics, supported by very healthy underlying quality. Our growth is leveraging on our superior customer experience and on our fair and transparent positioning, not on short-term aggressive offer. This approach is mirrored in the quality of our revenues mix, which is entirely recurring, with a very low percentage of upfront fees and no performance fees at all. Later in the presentation, we will also share how our industrial action further accelerates our net sales and improves our mix through an AI-powered network of financial advisors. Let's now move to the second quarter results. Net profit in the first half of 2025 is EUR 317.8 million.
Year-on-year, revenues at EUR 644.4 million, supported by our non-financial income, investing up by 9.8% year-on-year thanks to the volume effect and the higher control of the value chain by Fineco Asset Management. Brokerage is up by 15% year-on-year thanks to the enlargement of our active investors and higher market volumes. Operating costs are well under control at EUR 173.1 million, increasing by 5.9% year-on-year by excluding costs related to the growth of the business. Cost-income ratio was equal to 26.9%, confirming operating leverage as a key strength of the bank. Moving to our commercial results, the underlying step-up in our growth dynamics gets crystal clear month by month. For 2025, we expect a higher asset under management and deposit net sales compared to 2024. This is underpinned by the positive tailwinds from the structural trends, and we are leveraging on this solid momentum through more efficient marketing activity.
The result of this acceleration has been clearly visible in the first six months of 2025. First of all, we added around 100,000 new clients, up by 36% year-on-year. In July, new clients were around 50,000, up more than 20% year-on-year. Second, our net sales were EUR 6.6 billion in the first half, up by a strong 32% year-on-year. In July, we are estimating total net sales for a further acceleration at around EUR 1.1 billion, up by 45% year-on-year. The mix was very positive, with asset under management at around EUR 0.4 billion net sales, up by around 35% year-on-year. Deposits were at around EUR 0.3 billion, and asset under custody at around EUR 0.4 billion. Brokerage recorded EUR 19 million estimated revenues. Our capital position confirmed to be strong and safe, with a Common Equity Tier 1 ratio at 23.5% and a leverage ratio at 5.2%.
On the right-hand side of the slide, you can find the summary of our 2025 guidance. More in detail on investing revenues, every EUR 1 billion change of asset under management on August 1st generates around EUR 2.9 million of management fees from August 1st until year-end. Banking fees are expected in a slight increase in 2025 versus 2024 due to new regulation on instant payments. On brokerage, we confirmed 2025 expected revenue stronger with a continuously growing floor thanks to the enlargement of our active investors. For 2025, we expect a record year for revenues. For 2025, we expect operating costs to grow around 6% year-on-year, not including a few millions of additional costs for growth initiatives in a range between EUR 5 and EUR 10 million, mainly for marketing, Fineco Asset Management, and AI. Finally, in 2025, we expect a payout ratio in a range between 70% and 80%.
Let's now move to slide 5. As you can see in the P&L in the slide, we are now sharing a new P&L representation, with the non-financial income being the sum of net commissions line and the trading profit line. This is aimed to better show the industrial nature of our trading profit, almost entirely represented by client-driven brokerage revenues. As announced, net profit in the first half of the year stood at EUR 316.8 million, almost flat year-on-year. Revenues at EUR 644.4 million, supported by 12% acceleration of the non-financial income, led by the solid contribution of the investing and brokerage business. This has almost offset declining interest rates.
Operating costs at EUR 173.1 million, well under control and increasing by 5.9% year-on-year, excluding costs strictly related to the growth of the business, mainly additional costs for Fineco Asset Management to further expand its business and have a higher control of the value chain, additional marketing costs to further improve our growth and catch the strong momentum of the business. Artificial intelligence has. We are launching a project to further boost our network productivity. Let's now move on to slide 6. Investing revenues reached EUR 191.9 million in the first half of 2025, increasing by a solid 9.8% year-on-year, on the back both of growing volumes thanks to our best-in-class market positioning and of the higher efficiency of the value chain through Fineco Asset Management. Let me please remind you that the great quality of our investing revenues mirrors our transparent and fair approach towards clients.
Our revenues are mostly driven by recurring management fees, with a very low upfront and no performance fees at all. Quarterly management fees dynamics are temporarily affected by lower average asset under management due to the negative market performance in March/April 2025. This set of results is particularly remarkable given the more challenging market environment for the asset management industry. Let's move on to slide 7. In this slide, we are representing the two main sources of growth for our investing business going forward. On one end, Fineco Asset Management is progressively increasing the control of the investing value chain. Its contribution to the group net sales has been consistent over the cycle thanks to its incredible time to market in delivering new investment solutions aligned with clients' needs.
The contribution of Fineco asset under management out of the total stock of asset under management has been steadily growing, and it's now equal to 38.7%. On the other end, being a platform, Fineco is the best place to catch the latest trends in terms of client investment behaviors. There is a clear change underway in the structure of the market, with clients increasingly looking for quality, efficient, and fair solutions. All of this is channeling a strong demand towards advanced advisory services with an explicit fee, where Fineco is by far the best positioned in Italy, as you can see down in the slide. Let's now move on to slide 8 for a focus on brokerage. Brokerage registered a very strong first half with EUR 128.4 million revenues driven by our larger active investor base. July was another solid month with EUR 19 million estimated revenues.
Average revenues so far in 2025 are around 10.5% higher versus 2020, with much more healthier underlying dynamics. This is driven by the structural increase in clients' interest to be more active on the financial markets and being a clear bridge between the brokerage and investing world. The brokerage business represents the best sign of how fast the structure of the financial market is evolving, as technology is driving a swift change in client behaviors thanks to higher transparency. For this reason, we consider the brokerage Italian market still very under-penetrated, and we see a strong opportunity to grow despite already being the market leader. Let's now move to slide 10 for a focus on our capital ratios. Fineco confirmed once again a capital position above requirements on the wave of a safe balance sheet. Common Equity Tier 1 ratio at 23.5%.
The leverage ratio is at a very sound 5.2%, while risk-weighted assets were equal to EUR 5.81 billion, total capital ratio at 32.07%. As for the liquidity ratios, liquidity coverage ratio is over 900% and net stable funding ratio over 400%, while the ratio of high-quality liquid assets on deposits is at 79%, well above the average of the industry. Going forward, we confirm that we will continue to generate capital structurally and organically thanks to our capital-light business model. Given the strong acceleration in our growth, we are taking more time to have a clear view on deposits and net sales going forward, as the underlying dynamics are strongly improving. If, despite the strong acceleration in our growth, there will remain excess capital, we will decide on the best way to return it back to the market. Let's now move to slide 16. Let's now focus on our 2025 guidance.
On investing revenues, having a EUR 1 billion change of asset under management on August 1st generates around EUR 2.9 million of management fees from August 1 st until year-end. Banking fees are expected with a slight decrease compared to 2024 due to new regulation on instant payments. Brokerage revenues are expected to remain strong with a continuously growing floor thanks to the enlargement of our active investors. For 2025, we expect record revenues. Operating costs are expected to grow at around 6% year-on-year, not including a few millions of additional costs for growth initiatives in a range between EUR 5 million and EUR 10 million, mainly for marketing, Fineco Asset Management, and AI. Cost-income, we expect to hit comfortably below 30% thanks to the scalability of our platform and to the strong operating gearing we have. On the payout ratio, we expect to hit for 2025 in a range between 70% and 80%.
On leverage ratio, our goal is to stay above 4.5% level. Cost of risk was equal to 6 basis points thanks to the quality of our lending portfolio, and we expect to hit in a range between 5 and 10 basis points. Finally, we expect robust and high-quality net sales with increasing asset under management and deposits flows and the continued strong growth expected for our client acquisition, as we are in the sweet spot to keep on adding new market shares. Let's now move to slide 17 for a deep dive on our growth opportunities. Fineco enjoys a unique market position to catch the long-term growth opportunity resulting from the huge household wealth and the fast-changing client behaviors. In the graph, you can see the strong potential for our growth given the stock of financial wealth of the Italian families.
Our market share is still small, and the room to grow is huge. We are very positive on our future outlook as we have no competition on our market position. As a matter of fact, Fineco is the only big player with a service model truly based on transparency, efficiency, and fair pricing. Moving on to slide 18, the step-up of our growth trajectory is clearly materializing, as you can easily see in our recent client acquisition. On top of the slide, you can see the impressive acceleration of new clients, which is further building up in the first half of 2025. This acceleration is very healthy because it's based on the quality of our offer and not on an aggressive marketing campaign with a short-term rates remuneration.
As a result, all our new clients are improving the metrics of the bank by bringing more deposits or more business for our brokerage and investing solutions. These values are recognized by our clients, as shown by our customer satisfaction of 94% on our net promoter score, way above the industry average, as you can see down in the slide. Let's now move on to slide 19. The cumulated growth of high-quality new clients is translating into better net sales dynamics shown by the 32% increase of our total net sales year-on-year. The same applies to our deposit growth, which before the investment is up 34% year-on-year. Let me remind that we see a sizable mixed sheet opportunity coming from the huge stock of govs our clients bought over the last couple of years, given that a large percentage of these has a short-term maturity.
This will give our financial planners an unprecedented opportunity to improve client mix into asset under management. In this regard, the bank is continuing to enlarge the offer of investment solutions. As an example, in September, a new and innovative private markets solution by Fineco Asset Management will be launched. Let me now hand it to Paolo Di Grazia, Deputy General Manager and the Head of Global Business, to comment on slide 20. Please, Paolo.
Thank you, Alessandro, and good morning, everybody. As you know, the financial industry is quickly heading into an inflection point and is going to be heavily reshaped by technology. Thanks to our deep internal know-how and data control, Fineco is the only real player to be able to take massive advantage from it and to further accelerate our growth journey. This will be reached with our usual cost-effective approach, of course.
We are planning to launch the launch of an efficient and pervasive AI implementation in two directions. First, focusing on the productivity of our network of personal financial advisors, and second, paying attention to the cost efficiency of the bank by reshaping completely the internal processes. While on the latter, we will update the market in the next months. We have already started to re-engineer our financial advisor platform with the integration of an AI assistant. It will be a key enabler to boost our network productivity and deliver a better quality service to clients, and ultimately improving our revenues growth via stronger net sales and asset under management. Let me stress that this is not a book of dreams, but it's already a reality. Our very first initiatives are already live, used by more than 2,500 personal financial advisors with more than 1,000 unique weekly logins.
By the way, we have never seen in the past an adoption like this for a new application like this. Our financial planners have now in their hands a powerful AI assistant, which is going to be a game changer for wealth management. Below in the slide, you can see the main features of the AI assistant. Among which is worth underlining the portfolio builder, which is a powerful tool to immediately create quality portfolios fed with Fineco financial logic and optimized on client goals. The portfolio builder is also a content creator and a communication tool able to create professional and customizable reports, proposals, portfolio reviews, brochures, automatically generating narratives to support the financial planner. It's also a powerful marketing tool allowing for comparison of existing portfolios of prospect clients. It's also a search tool, a faster info search process for internal memo and communication.
The next wave of artificial intelligence implementation will focus on CRM for our financial advisors and will be fully integrated with client data. It will empower our financial advisors to manage their agenda more efficiently, enabling a structured approach to client engagement and cross-selling by streamlining customer management and unlocking new commercial opportunities. This will represent a further step in enhancing productivity across our network and driving for an even stronger growth. I will hand it back to Alessandro to move on to slide 21.
Thank you, Paolo. Let's now focus on asset under custody, a component of our business that is sometimes undervalued by the market but is the real cornerstone of our fee-driven growth. This is true for investing, as asset under custody remains the main source fueling our asset under management net sales. As you know, around 90% of our growth is organically driven.
As a consequence, new clients tend to show an asset allocation more oriented towards asset under custody, and the job of our financial advisors is to improve their mix into asset under management. For brokerage, the expansion of asset under custody and the growing base of active investors are key factors leading to a structurally higher floor in our revenues. Finally, in the fast-growing ETF space, we are actively exploring new revenue opportunities, which we expand moving on to slide 22. Fineco is uniquely positioned to capture the strong client-driven shift towards more efficient investment solutions such as ETFs. As you can see, the stock of ETFs is now in excess of EUR 13 billion, ETFs now accounting for almost half of the asset under custody net sales.
Thanks to our focus on transparency, efficiency, and fair pricing, we are the only player capable of fully recognizing and monetizing this structural trend with no harm on our profitability. First of all, the growing interest in ETFs is generating a positive volume effect for our investing business. Thanks to our advanced advisory wrappers, major ETFs, we can move in the investing world clients that are not interested in traditional mutual funds. This, with no cannibalization risk on the existing fund business. At the same time, our leadership in ETF retail flows makes us the main gateway for issuers into the Italian retail market. While we currently manage all costs to clients without recurring revenues from ETFs, talks are underway with our partners to find a fair balance. Finally, Fineco Asset Management is going to play a big role in the ETFs world.
Our firm already launched its very first active ETFs, and more are going to be introduced. Thank you for your time. We can now open the call to questions.
This is the Carsco Conference Operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. To remove yourself from the question queue, please press star and two. We kindly ask to use handsets when asking questions. Anyone who has a question may press star and one at this time. The first question is from Luigi De Bellis of EQUITA. Please go ahead, sir.
Hi, good morning. I have three questions. The first one is on the ETFs. Can you provide us an update on your strategy? In particular, where do you stand in terms of ongoing negotiation with ETF issuers?
How has the client appetite evolved in the recent months? What is the current pipeline of FA M in terms of new active ETFs? The second question is on the NII and margins on management fees. What do we expect for the coming quarters, in particular on margins, also considering the pipeline of new products both in private market and ETF? The last question is on the crypto tokenization. Can you give us an update also on your crypto strategy? We have seen some U.S. players recently announce new product launches for European investors, including also U.S. stock and ETF tokens in Europe. How is Fineco positioned in this space, and what opportunities and risks do you see from this trend? Thank you.
Thank you. First of all, let me start by the update on the strategy on ETFs.
As we explained during the presentation, we are advancing in the process of making the ETFs world characterized by recurring revenues. We expect this is going to be finalized by the year-end, beginning of next year. ETFs is going to become progressively more and more a business that is generating recurring fees, so much more similar in terms of concept to the asset under management world. The client appetite by the clients is remaining robust and strong, as is demonstrated by the fact that half of the net sales on the asset under custody is represented by ETFs. This, for sure, is absolutely a gigantic trend.
What is making the position of Fineco unique is that, considering the combination of an extremely very powerful, very well-working platform together with the extremely advanced positioning we have in the advisory solutions in which clients are paying advisory fees, is making Fineco the perfect place, the natural landing spot for everybody that is interested in being engaged with the ETFs world. The pipeline of FA M on ETFs is keeping on building up, and we expect that progressively Fineco Asset Management is going to start playing an important role in this space. Again, this is not.
I'm going back to look into the example of what has been the journey of, for example, Charles Schwab in the U.S., that they have started offering ETFs to their clients and progressing their behavior to propose to their clients not just the ETFs provided by someone else, by the external counterparts, but also their ETFs. Regarding the NII, we expect NII bottoming and reaching the bottom within the year-end. Starting by next year, the NII is expected to keep on growing again. This is going to be extremely healthy in terms of direction. It's not going to be driven by, for example, hedging activities on the portfolio. The bank is not taking any risk in view. We are going to keep on maintaining an extremely conservative approach with continuously lowering the duration and decreasing the interest rate sensitivity.
The growth of the net interest income is going to be driven by, clearly, there is a continuous process of building up in terms of growth, net sales. In case the net interest income is expected to keep on going again, starting by the end of the year. Trends on margin considering ETFs and private market, at the moment, we are not factoring yet in the margins what we can expect to get by the private market because, clearly, we prefer to remain cautious. We are quite optimistic on the evolution on this side. The product is going to be launched at the beginning of the fall, and we think that considering the way it has been structured, the extremely modern and innovative solution we're bringing to clients, we expect a positive welcome, positive acceptance by the clients. This, clearly, is going to be a. Progressively interesting.
Contribution to the margins. ETFs, as we discussed several times in the past, are not really a threat on the margins because the ETFs are mostly used by the financial planners into the advisory wrappers, on which the clients are paying an explicit fee. Overall, the margins are not significantly different from the overall margins we have on the asset under management business. The ETFs are playing a role of being accretive in terms of revenues because they are helping in building up volumes, are helping us in making our way and gaining market shares. It is not a point of attention on the possible pressure on margins. Considering that Fineco as a starting point, respect the industry that is much more sustainable because Fineco has been always characterized by not overcharging clients and so on. Overall, at the moment, remaining conservative, our margins are expected to remain stable.
On the crypto and tokenization and strategy, I give the floor to Paolo in order to give a little bit more of color on what's going on there, our plans, what we can expect to happen.
Yes. Basically, on crypto, we are currently discussing with the regulators to have the permission to start offering cryptos on our platform. We see a lot of interest among our clients, but in general in the country, there is a rising interest in cryptos. It is a piece of the offering that we're trying to put in the platform. We don't know yet when exactly because before, we had to clear everything with the regulators. Again, we're in talks in these days with the Italian regulators. We know very well that there are other banks that, for example, from Germany, that are offering cryptos also in Italy.
We know and we see our clients also using this platform to basically trade or have exposure mainly in Bitcoin and Ethereum in this platform. That's why we see this as a great opportunity for us the moment we are going to be able to offer the service to our clients. On the tokenization topic, it's a huge topic. We know for sure that this is the future. Tokenization, in our view, every asset is going to be tokenized. The important point is that to get a real advantage for the client to have tokenized assets, we need to have tokenization very spread around in the system. Not only Fineco offering tokenization assets, but also other counterparties and maybe the financial market.
For sure, one of the first big advantages that we can have even before the spreading of the tokenization technology is the fact that we can be much more effective in managing costs related to, for example, post-trades activity, custody, and so on. It's one main project that we have in our R&D projects. We don't see the tokenization far away, years far away. It's pretty much close, which is why we are also positive on the opportunities that we can extract from the tokenization of the assets, not only ETFs, of course.
Thank you very much.
The next question is from Alberto Villa of Intermonte. Please go ahead, sir.
Good morning and thanks for taking my questions. I was wondering if you can provide us with a figure for the advanced advisory revenues for the first half of 2025.
I've seen advisory fee assets sales still quite positive but declining year- over- year. I was wondering if that's due to the fact that the penetration is starting to increase. How is the outlook in your view for the net sales under advisory fee going forward? The second question is on the scenario for recruitment. Maybe if you can provide us with an update on the outlook for the industry and for Fineco in terms of how it's going and if there is any pressure you see on the market on that side. Thank you very much.
On the advanced advisory revenues in the first half, the growth is clearly continuing. We expect that this is going to be the case.
The main driver on the asset under management is going to remain driven by the advanced advisory platforms and also the building up of the usage of ETFs inside that, together with the extremely successful solutions provided by Fineco Asset Management that is incredibly consistent in capturing the emerging needs by the clients and transforming these in net solutions that are not available yet on the market. The outlook for the net sales is remaining extremely strong. We see the outlook keeping on accelerating going forward thanks to the positioning and the positive macro environment characterized by short-term rates that are low and a yield curve that is positively shaped. On the recruitment, there is no particularly significant change on the horizon. The situation is remaining pretty much unchanged.
We have a part of the industry that is characterized by an approach in which, very aggressive, in which clearly the model is based on overpaying financial planners for convincing them in joining. Clearly, this is translated in then overcharging clients or going throughout, let me say, a little bit questionable market practices in order to maintain a decent payback period on the market. Clearly, this is not our model. Never has been our model because always we consider this approach in which the growth is mostly driven by aggressive recruiting as not sustainable. Now, considering what's going on in terms of change of behaviors by clients, changing the tricks of the market, this is even less sustainable.
Our recruiting is continuously focused on taking on board people that they are really convinced that the future of this industry is going to be a future in which you have to go hand-to-hand with the evolution of the market, which fairness, transparency, and convenience are going to be key in the client and the client choices. We are absolutely progressing very well. We are not interested in chasing at any cost the recruiting of financial planners. We are clearly extremely interested in keeping on hiring and preparing young financial planners for the future job because one of the main challenges for the industry is the aging of the financial planners.
For the market, it's extremely easy to understand which kind of strategy is managed by the different companies because the higher is the average age of your financial planners, and the more it means that you are relying on aggressive hiring and of old financial planners. The younger is the average age of your financial planners, clearly means that clearly you are looking to the future. This more or less is the shown up.
Okay. Thanks. Sorry if I come back on the advanced advisory fees you cashed in in the first half. Do you have any euro million number to share with us on that?
No, we are not sharing these numbers.
Thank you.
The next question is from Christiane Holstein from Bank of America. Please go ahead.
Good morning. Thank you for taking my questions. I have three of them. Firstly, on the opportunity within AI.
I know you flagged that it will improve revenue growth through productivity benefits. I was just wondering how we should think about these revenue and cost benefits going forward. Also, will there be further investment required in the near term? It seems as though only EUR 0.6 million of the EUR 5 million to EUR 10 million growth guidance has been spent on it so far. My second question was on the launch of the private markets solution. I was just wondering if you could provide a bit more detail in terms of expectations here in terms of revenue opportunity, margin, client uptake. Do you think this will also make a material difference in the acceleration of the uptake in spam products as well? Any further comment on acceleration in new clients? It seems like this growth has been extremely strong and continues to be very strong.
How much do you think of this is driven by the heightened marketing spend, and how sustainable is this? Thank you.
Thank you for your questions. First of all, thank you for raising the point on the opportunity represented by the AI. As we started on sharing with the market, we are preparing a new plan that is going to be presented to the market by the beginning of next year throughout an investor day, extremely very well structured. In this new plan, we have some cornerstones that are going to be on which we are building the plan. The first one is represented by giving a sizable evidence of the incredible, gigantic, and macro opportunity that is building up in our favor as a tailwind. As we do the presentation, we explained how still small is our market share.
In this presentation, we are going to give some more evident numbers represented by this quite significant macro opportunity we have. Another cornerstone is going to be represented exactly by the evolution of the way the bank is working driven by technology, AI. Regarding AI, we have two different directions. One is what has been mentioned and described by Paolo, is related to progressively increasing the productivity of the network. Increasing the productivity of the network, in very simple words, means increasing the amount of net sales of asset under management. We think that there is an absolutely incredible opportunity because the way for making this business growing is not keeping on pushing and pushing in the direction of recruiting and overpaying financial planners, but is to start on putting technology at work. The room for improving the productivity of financial planners, it's really huge.
Also, few tenths percentage points of increase of the. Productivity can represent absolutely incredible numbers, without mentioning the incredible improvement of the quality of what the financial planners are going to do. Practically, more and more of our financial planners are going to have more and more time to spend in cultivating their relationship with their clients and putting even more focus on the marketing activity. Clearly, this is going to be quite significantly positive for the evolution of our revenues, particularly on the investing side. There is another cornerstone related to AI. Clearly, this is going to be on, let me say, internal efficiency, so cost. Fineco is in a unique position because when we are talking about AI, the real point is, theoretically, AI is a commodity. Everybody can get access to AI.
The real point is, but then you are really able to use AI successfully. It depends on your capability on getting access to high-quality and easily manageable base of data. Clearly, this is strictly related to the technological infrastructure you have. Fineco is, among the financial institutions in Europe, probably one of the best positioned for really putting at work AI. This means that we are going to go throughout an incredibly detailed and quite significant reshaping of all the internal processes of the bank. This is going to generate progressively more efficiency, but also to restart progressively the journey in keeping the cost incrementation moving down. What is happening in terms of opportunity, AI for companies able to use that efficiently, it's absolutely incredible.
We expect, and this is going to be embedded in the plan in which we are going to give to the market, extremely detailed and precise indications. We expect that AI is going to contribute in increasing what is usually called by the market the JOS, so the progressive divergence between the revenues and cost. This is very important in order to predict also the expected return on equity of the bank. There is another cornerstone that is not related to AI, all the initiatives that we are putting in place that are progressively going to start on generating additional revenues on the asset under custody side. As we explained, asset under custody is a gigantic opportunity for all the reasons we described, but there are some quite evident, immediate evident rationals behind. There is everything related to the ETFs world. ETFs world.
I want to repeat, are going to become more and more progressively a business generating recurring revenues. Thanks to the combination of the better arrangements with the issuers and the progressive better control of the value chain throughout Fineco Asset Management. There are other evolutions, like for example, just as an example, we are just at the beginning of the process of putting at work our potential on the stock lending side that it's gained. Considering the significant dimension of the asset under custody, it's very important. Paolo was describing the crypto world. We are absolutely confident that at the end of the conversation we are going to find the right way for offering to clients the crypto. There is a demand for sure by the clients. There is a clear preference by clients in having this throughout a trustful and established bank instead of using external platforms.
These are the and so just making. We expect results of an accelerating generation of revenues and even better control of cost and possibly driving the cost down going forward. At the same time, significant improvements in terms of the contribution of components of the business, like asset under custody that, again, is wrongly considered as with lack of values by the most part of the market. On the private market, we think that progressively is going to become an interesting source of additional revenues with absolutely very interesting margins. It's going to become something that's decently material going forward, particularly throughout next years. On the acceleration of new clients, yes, we think that the acceleration is driven by the, as we said, by the perfect positioning of Fineco. The client's behaviors are clearly changing. Clients are more and more looking for efficiency, transparency, and convenience.
This is driven by the combination of an evolving technological landscape, the generational change in which Fineco is the perfect landing spot for the new generation inheriting the wealth. The higher marketing spending, clearly, is absolutely the right decision because when everything is favorable, this is the right moment in which you have to spend. If you are a bank that is not correctly positioned, you have not exactly the right offer for what the clients are looking for, and you are accelerating the marketing expenditure, this is just a pure waste of money. It's exactly the opposite situation we have. Fineco is exactly at the crossroad of the fastest emerging trends. This is the right moment for spending more. We remain absolutely confident of the continuation and further acceleration of the, in terms of client acquisition.
Thank you.
The next question is from Angeliki Bairaktari from JP Morgan.
Please go ahead. Good morning, and thank you for taking my questions. Just two from me, please. First of all, just a clarification with regards to the investing guidance that you gave. You do mention in the slide that for every EUR 1 billion change of asset under management, you expect to generate around EUR 2.9 million of management fees from August 1st until year-end. I think in the first quarter, you had for every EUR 1 billion of change in asset under management, you expect around EUR 4.5 million from May 1st. I just wanted to understand, is it just a prorata calculation? Has your guidance changed at all in terms of the investing revenues, or you have prorated for fewer months?
No, you are absolutely right. It's just a matter of the prorata. Clearly, the guidance has not been changed at all.
The change is clearly the more we approach the year-end, the lower is the impact generated by an additional EUR 1 billion, by a move of EUR 1 billion of asset under management, more or less. It's just recasting of the prorata impact caused by the time passing.
Thank you very much for this. On the private markets product that you intend to launch through FA M, have you identified already some private markets asset managers that you intend to partner with to source those co-investment and GP secondaries opportunities?
Yes. The name is Neuberger Berman. Yes, this is the partner we chose.
Thank you very much.
The next question is from Hugo Cruz from KBW. Please go ahead.
Hi. Thank you for the time. Just wanted to ask on ETFs, slide 22, very interesting.
I was wondering what percentage of ETFs in both the AUC net sales and asset under management are from Fineco Asset Management? Now, there's the profitability of your internal ETFs compared to the other ETFs that you offer. Finally, on the investor day, will it also address the potential market entry into Germany and potentially other countries as well? Thank you.
The ETFs, the percentage represented by the Fineco Asset Management product is still pretty small because it's just at the beginning. Clearly, the more we are going to be able to make. To have our clients buying the Fineco Asset Management ETFs, clearly, the more we are going to take advantage by the control of the value chain because in the ETFs world, clearly, the profitability is not such as that, by definition.
What you can expect on the ETFs world is, on one end, the traditional ETFs progressively are going to be characterized by generating recurring revenues throughout the arrangements that are underway with the big issuers. As we said, we are confident that by year-end, we're going to start enjoying the first positive outcome driven by these arrangements. On the other side, the more we are going to be able to put in the portfolio of our clients in Fineco Asset Management, by definition, the profitability is going to be at least double because we have not to share anything with someone else. The investor day is going to be, and is going to treat as well, our plans for moving abroad. We are going to give more flavor, more color on that.
Thank you very much.
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