Treace Medical Concepts (TMCI) Q1 2025 Earnings Call May 08, 2025 04:30 PM ET Speaker0 Good day, and thank you for standing by. Welcome to the Therese Medical Concepts first quarter twenty twenty five earnings conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising that your hand h ...

Financial Data and Key Indicator Changes - The company's revenues increased by 3.8% in Q1 2025, with operating divisions up 6.1%, aligning with the trajectory set for 2026 [8][10] - Net profit decreased by 4.9%, attributed to higher exceptional items in the previous year and lower contributions from the Corporate Center this quarter [12] - The cost of risk remained moderate at 33 basis points, slightly up from the previous year but still below the guidance of 40 basis points [11][43] - Common Equity Tier 1 (CET1) ratio decreased by 50 basis points quarter-on-quarter to 12.4%, stable compared to January [13][45] Business Line Data and Key Indicator Changes - Corporate and Institutional Banking (CIB) reported a record revenue growth of 12.5%, driven by a 17.3% increase in Global Markets [9][26] - Commercial Banking and Personal Banking Services (CPBS) grew by 1.2%, with Eurozone commercial banks up 0.6% year-on-year [10][28] - Investment Solutions (IPS) saw a strong growth of 6.6%, particularly in Wealth Management and Insurance [10][37] Market Data and Key Indicator Changes - Eurozone commercial banks are expected to benefit from a normalization of the yield curve, with a projected rebound in net interest income (NII) in the second half of the year [18][30] - The performance in Turkey and Poland contributed to a 19% revenue increase in the Euromed region [10][32] Company Strategy and Development Direction - The company aims for a return on tangible equity of 11.5% in 2025 and 12% in 2026, targeting over 7% group net income growth CAGR [15][16] - A new strategic plan for CPBS aims to lift the return on notional equity to a minimum of 17% by 2028 [17] - The company plans to continue efficiency efforts with an additional €600 million in cost savings for 2025 and 2026 [19][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged elevated uncertainties in the market but emphasized readiness to support clients and monitor risks closely [5][6] - The company remains confident in achieving a CAGR revenue growth of over 5% by 2026, supported by increased investment spending in Europe [20][22] Other Important Information - The company has received approval for a €1 billion share buyback program, set to launch in the second quarter [14] - The acquisition of AXA IM is expected to close in early July, which will significantly enhance the growth potential of the IPS division [38][50] Q&A Session Summary Question: On the Capital Markets Union and its impact on profitability - Management acknowledged the challenges but noted a tangible approach from the EU to facilitate capital flow, expecting progress by 2028 to 2030 [62][63] Question: On the ECB's treatment of the AXA deal - Management clarified that discussions with the ECB are ongoing regarding the classification of the AXA deal as insurance to insurance, which will influence capital treatment [65][66] Question: On Eurozone revenue momentum and NII expectations - Management expects stabilization in deposit mix and a rebound in NII, driven by repricing and redeployment of excess deposits [74][78] Question: On market volatility and its impact on business - Management noted increased trading volumes and volatility in early April, but corporate engagement remained cautious [84][85] Question: On cost expectations related to acquisitions - Management indicated that it is too early to quantify additional costs from acquisitions until the deals are closed [122] Question: On interest rate sensitivity and potential ECB policy changes - Management expressed confidence that a shift to lower interest rates would favor their business model, particularly in personal finance [95][96]

Treace Medical Concepts, Inc. (NASDAQ:TMCI) Q4 2024 Earnings Conference Call February 27, 2025 4:30 PM ET Company Participants Vivian Cervantes - Investor Relations, Gilmartin Group John Treace - Chief Executive Officer Mark Hair - Chief Financial Officer Conference Call Participants Ryan Zimmerman - BTIG Lily Lozada - JPMorgan Kallum Titchmarsh - Morgan Stanley Richard Newitter - Truist Securities Danielle Antalffy - UBS Ben Haynor - Lake Street Capital Markets Operator Welcome to the Treace Medical Concep ...