May I now hand you over to Andreas Herzog, who will lead you through this conference. Please go ahead, sir.
Thank you, operator. Ladies and gentlemen, welcome again to our conference call. This morning, the MLP Group published excellent figures for the first three months of the year. With us today is our CFO, Reinhard Loose, who will guide you through the Q1 results. Please go ahead, Reinhard.
Thank you, Andreas, and good afternoon, ladies and gentlemen. Looking at the first quarter shows that we had a very good start to the current financial year. However, we all know that the strain of the economy has increased further as a result of the war in Ukraine, as well as high inflation. I say further because even before there had been some headwinds due to, among other things, still widespread COVID-19 disease and a very dynamic turnaround in interest rates. Nevertheless, we succeeded in achieving growth in all areas of consulting in virtually all parts of the MLP Group in the first three months. EBIT grew considerably compared to the same quarter of the previous year. More than ever, we are benefiting from having significantly expanded over the past years and are in a very stable position.
It pays off that in all parts of the MLP Group, we are very close to our clients and provide perfectly tailored solutions of a high standard. At the same time, we are continuing to invest extensively in our future. That goes for all parts of the MLP Group. We want to continue expansion of our successfully established Industrial Broker segment, which was included in the consolidation in Q1 for the first time and delivered a positive profit contribution. Most recently, we took a further step in this direction for our RVM Group at the start of April with the acquisition of the industrial insurance broker, DSV. We continue to look to the current year with confidence, but also with respect for the general conditions that have already become more difficult.
In the medium term, we plan an EBIT for the group of EUR 100 million-EUR 110 million, with more than EUR 1.1 billion in sales revenue by the end of 2025. The strategic success factors for MLP continue to develop positively. You can find an overview on the revenue development on slide five of the presentation. Total revenue in the first quarter increased by 15% to EUR 254.7 million, setting a new all-time high. At EUR 238.8 million, commission income, meaning revenue from commission and fees, increased significantly and represented the greatest share of this positive development. Not least, this is strong evidence of the further increased trust that our consultants have earned among their clients.
The next slide shows the long-term comparison of commission income performance, excluding old-age provision. It clearly indicates the success of our extensive diversification and alteration. MLP has continuously broadened its revenue basis to a significant extent. The areas newly established or significantly expanded since 2005 achieved annual growth of around 11% on average. The broad-based growth in revenue was driven by all consulting fees in this first quarter. The percentage increase was particularly noticeable in the real estate division. The 131% jump to EUR 20.1 million is attributable to a growing project business at DEUTSCHLAND.Immobilien, as well as the real estate brokerage, particularly by MLP consultants. The second strongest percentage growth was recorded in non-life insurance. The first-time profit contribution of the Industrial Broker segment in an opening quarter also contributed to the 23% increase.
As you all know, the situation on the capital markets has also become more challenging and continues to be so. Development in our wealth management is therefore particularly appeasing, as it shows just how highly our clients at FERI and in the MLP private client business value our consulting services. Revenue for the first quarter saw growth of 5% to EUR 81.2 million. As we had already anticipated and communicated, the contribution for performance-based compensation as a result of the decline in development on the capital markets was now significantly lower than the same quarter of the previous year. The success of our client support is reflected in further net cash inflows at FERI and MLP Banking. Despite the downturn on the capital markets, assets under management in the group equaled the previous record level on the 31st of December, at EUR 56.6 billion.
It is also very pleasing that the portfolios managed by the MLP Group in the field of non-life insurance rose to EUR 583.2 million as of the 31st of March 2022. More than ever, in terms of size, we can therefore be considered equal to a medium-sized non-life insurer. You can find the current income statement on page nine. With a value of EUR 34.6 million, MLP succeeded in considerably increasing its EBIT in the opening quarter, despite the challenging conditions. Alongside successful operational development, we also recorded the anticipated first time profit contribution of the Industrial Broker segment in an opening quarter. Assekuradeur , a very positive result will be achieved due to the strong seasonal performance in the first quarter of the year, whereas it is generally slightly negative in quarters two to four .
MLP has established the Industrial Broker segment with the acquisition of RVM in early 2021, as well as further subsequent acquisitions. What is more, the result of the MLP Group in the first quarter of this year saw a positive valuation effect for risk provisions at MLP Banking. Net profit for the period rose from EUR 15.8 million to EUR 24.2 million. The next slide shows our balance sheet. As of the balance sheet date, shareholders equity rose slightly from EUR 496.2 million to EUR 522.6 million. The core capital ratio was 18.8% on the reporting date, meaning that we remain very well positioned. We are anticipating a comparable level over the course of the year.
The consultants in the MLP Group were serving 564,200 family clients. The gross number of newly acquired family clients was 4,000. We also served 24,800 corporate and institutional clients. The number of consultants in the MLP Group was 2,048. Despite the usual seasonal decline in the opening quarter, MLP is expecting a positive development in the number of client consultants for the full year 2022. We confirm our EBIT guidance for the full year 2022. Despite the increased risk on the markets, MLP still expects an EBIT of EUR 75 million-EUR 85 million. As before, we anticipate that further growth in new business and an increase in the recurring revenue in various consulting fields will largely compensate the expected decline in performance-based compensation in wealth management.
In addition, MLP reaffirms the new medium-term planning communicated by us at the annual press conference on the tenth of March, 2022. Based on the forecast for the current year, we are planning an increase in EBIT to EUR 100 million-EUR 110 million by the end of 2025, as well as sales revenue of more than EUR 1.1 billion in the same year. This planning essentially rests on three core strategic success factors, which we presented to you in detail at the annual press conference. In concrete terms, a further increase in assets under management in the group, sustainable growth across all consulting fields, and continued expansion of our real estate business. However, I would like to add that uncertainty has grown as a result of the risk aspects mentioned at the start, war in Ukraine and high inflation.
In particular, steep rises in energy and food prices. Depending on how this affects consumer behavior, our projections may also be subject to change. We nevertheless remain confident that we will be able to surmount these challenges as well, as our business is highly diversified and thus very stable. Ladies and gentlemen, please now allow me to move on to the summary. Firstly, we significantly increased sales revenue and profits in the opening quarter, despite additional challenges for our business. Successfully transforming MLP over the past years helped us to create the foundation for this. Secondly, we are right on course for the current year, but are arming ourselves for possible setbacks in parts of our markets. The risks have increased further with the effects of the war in Ukraine and inflation. Thirdly, we are already focusing on our medium-term planning for 2025.
In this further growth phase, we are taking the MLP Group to the next level in terms of revenue and profits. Many thanks for your time. I'm now happy to take your questions.
Dear ladies and gentlemen, we will now begin our question and answer session. If you have a question for our speakers, please dial zero and one on your telephone keypad now to enter the queue. Once your name has been announced, you can ask a question. If you find your question is answered before it's your turn to speak, you can dial zero and two to cancel your question. If you're using speaker equipment today, please lift the handset before making your selection. We have a first question. It's from Philipp Häßler, Pareto Securities. The line is now open for you.
Yes, hello. Philipp Häßler from Pareto. I have three questions, please. Mr. Loose, firstly, the usual question on the net flows in Q1. I was pretty impressed that the AUM remained stable quarter-over-quarter, but probably this is related to strong net flows. Secondly, the performance of the real estate broker, which business was also very strong. Have there been any special effects included, or can we take this as a run rate for the next quarters? Maybe you could explain a little bit also this very strong development in Q1. Last but not least, you were mentioning, higher inflation, higher interest rates. Maybe you could elaborate a little bit more regarding the impact on your business, for example, on the real estate brokerage business, or the real estate loans brokerage business. Do you see an impact?
Where do you see biggest risks from higher inflation or higher rates on your business? Thank you.
Yeah, thank you. Thank you for your question, Mr. Häßler. Okay, let's go through these questions. Question number one, assets under management. Thank you for this question. Yes, we're very happy about this. We saw overall inflows of EUR 2 billion in the first three months and outflows of EUR 500 million, adding up to EUR 1.5 billion overall. This is, yeah, both as mentioned, as well as FERI, as in the bank. Therefore, we are very happy to see this.
I think and you know this, that especially in the bank, we have, let's say, one positive effect that around 25% of the inflows come from regular saving rates, which obviously are very stable, but especially in the first month and it continues in also the second quarter. The customer still are willing to invest, and therefore I'm also like you, I'm very happy that we were able to manage to stay on the same assets under management level than at the end of the year. This concerning the overall, the question assets under management.
Mr. Loose, could you perhaps give a split between the bank and FERI regarding the inflows, the net inflows, EUR 1.5 billion?
Yes, one point. From this, let's say, I take the gross rate from the EUR 2 billion inflow. EUR 1.4 billion came from FERI and EUR 600 million from the bank.
Okay. Thank you.
You're welcome. Real estate, no, there's no special effect included. You know that, we divide it to make this also very obvious, that there is the overall EUR 20 million revenues we generated have two effects. 7.6, if I have it correctly in mind, came from the project development, and therefore around EUR 12 million came from the brokerage of real estate. And both with impressive increases. That's something which has no special effect in it. On the other side, I would say this will be the run rate for the rest of the year. Definitely not what we see. This also touches your third question concerning interest rate.
What we started to see and also this is true, also seen in the second quarter, is that although the interest rates are going up at the moment, the demand for real estate still stays extremely high. We had enough supply in this quarter to deliver enough for our clients. Therefore the increase was that high. You know that on average, we started the business 2014. The annual average was a little less than 40% growth year-on-year. We continue to say that in one year it will be less than this. Obviously it can't continue in an amount like this.
In the beginning of this year, it's still, as I said before, the demand is very high. I'm very sure that in the next quarter you will see lower numbers, but still impressive numbers there. Then the perfect next question, inflation, what will happen with interest rates? Let's say we have some with our business model, we have different areas where we see either positive or negative effects on interest rates.
Obviously, as we all imagine and everyone knows, for especially for the real estate sector, in theory, increasing interest rates have a negative effect because it makes more at least the monetization of flats and things like this are more expensive, and therefore there's a negative effect. Therefore, we could also see a negative effect on the amount of loans and mortgages we broker. On the other side, we see positive effects by lower interest rates for interest income. Just keep in mind that, for example, last year we paid EUR 5 million only on negative interest rates, and only if this EUR 5 million will vanish, it definitely will help us.
There is, at least if the interest rate is a little bit higher and it's stable, there is in theory a positive effect also, on the life insurance sector. Therefore we have both sides. Obviously, they are not totally comparable and there might be time shifts, but in general we see a slightly positive interest rate definitely for our group and a positive. Obviously what I didn't mention, but, you know even better than I know there is effect interest rate on the share market. But as I said, as you know perfectly. Therefore there is obviously something, some reflection to our business as well. Does this answer the question, Mr. Häßler?
Yes, thank you.
You're welcome.
The next question is by Jochen Schmitt of Metzler. The line is now open for you.
Thank you. Good afternoon. I have two questions, please. Firstly, could you provide a figure for performance-based compensation? Second, what can you tell us about the situation of cost inflation in your property development business? How does the risk of cost overrun look like to you currently? These are my questions.
Thank you. Thank you, Mr. Schmidt. First question is very easy to answer. Performance fee in the first quarter. We had gross performance fees of EUR 3.2 million, which was obviously positive for our overall P&L. A little bit more difficult question is cost inflation for our property or real estate business. In general, when we are in the project development, we have building companies, let's say, who guarantee the prices for this. Obviously now speaking at least from my perspective as a finance guy, there obviously is still a risk if the building companies can bear this risk. Obviously there is a time development. There's a cost inflation at the moment.
Meaning definitely there is some risk in it, which as I said before in theory and from the contracts is borne by someone else. But definitely this is something which finally also could in a very negative situation come back to us. At the moment, we don't see this. We have more problems or more constraints like we also had in the last quarters with the timeline. As well as permissions, as well as building the phase itself is longer than we wanted to see this and expected this. Therefore we have at the moment also in the first quarter, you see that the profit from Deutschland.Immobilien is relatively small, some EUR 200,000.
We would like to see a higher profit there for this year. You keep in mind please that now for the first time, we show the results of DEUTSCHLAND.Immobilien and of this real estate business there in a unique segment. Before it was part of the segment of the finance of the broker and in the holding, and now it's a segment and we expect to see there some million profits during the course of the year. Therefore this is the issue which is at the moment our constraint there.
Thank you.
You're welcome, Mr. Schmitt.
The next question is by Fabien Le Disert of Kepler Cheuvreux. The line is now open for you.
Yes, thank you. Good afternoon, everybody. Yes, I have two questions. The first one, firstly, congratulations for the strong Q1. You are on track to deliver an annual EBIT in excess of EUR 100 million. Given the difficult macroeconomic environment, could we consider that this 2022 guidance is now recession-proof? The second question, in the Industrial Broker segment, you deliver a strong quarter, but you only guided for EUR 30 million of revenues after the recent acquisition in early April. Could we expect a new communication in Q2 on this segment? Thank you very much.
Yeah. Hello, Fabien. Thank you. Thank you also for the congratulations. You start with two different questions. Industrial Broker segment. The Industrial Broker segment as a business is similar to what we have now experienced with the DOMCURA segment. That means we have a very strong first quarter and negative or almost negative quarters two, three and four. Therefore also we see the big chunk of the revenues in the first quarter and smaller parts in the following quarters. Therefore, let's say this overall guidance concerning revenues or the overall expectation is still valid.
At least for the part which we have at the moment in our books. Therefore it is a little bit depending on perhaps further acquisitions. At the moment, this as I said before, this overall guidance there in this segment is still valid. Also the guidance that we expect the acquisitions, expect something like a mid-size million euro EBIT contribution of this segment. By answering the second question I forgot about the first question. The first question was. Sorry, can you repeat the first question?
Yeah. Yes. The first question was about the 2022 guidance.
Yeah.
Could we consider that the guidance is recession-proof because your Q1 EBIT was very solid? You are
I would say.
Yeah, sorry. Yeah.
I would say that, let's say, the guidance is not over-optimistic. I think with the EUR 34 million EBIT, I think we were able to bring a very stable basis for the rest of the year. We'll see, definitely, much lower EBIT figures in Q2 and Q3. Q4 again will be a very strong quarter. This has definitely. We have obviously, when we planned this, we didn't know where we are right now. We had negative effects from COVID already in our planning, and therefore your term recession-proof, at least, we still stick to this, and I think we will manage to deliver this EBIT.
Okay. Thank you.
You're welcome.
As a reminder, if you want to ask a question, please press zero and one. For the moment, there are no further questions, and so I hand back to you.
Well, thank you. Ladies and gentlemen, as it seems that we have no further questions left, we would like to thank you for your participation. If further questions might arise afterwards, please do not hesitate to contact the IR team. Have a good remaining day and goodbye. Thank you. Bye-bye.
Ladies and gentlemen, thank you for your attendance. This call has been concluded. You may disconnect.