Financial Performance - The Group's net revenue for Q1 2025 was EUR 14.0 million, a decrease of 15% from EUR 16.5 million in Q1 2024 [2][3] - Operating profit fell by 34% to EUR 5.8 million compared to EUR 8.8 million in the previous year [2][3] - Profit for the period decreased by 35% to EUR 4.6 million from EUR 7.0 million [2][3] - Earnings per share dropped by 36% to EUR 0.11 from EUR 0.17 [2][3] Segment Performance - Asset Management segment's net revenue decreased by 5% to EUR 14.4 million, with operating profit down 11% to EUR 7.9 million [2][3][8] - Corporate Finance segment reported net revenue of EUR 0.1 million, a significant drop from EUR 0.8 million, with an operating loss of EUR -0.8 million [2][3][13] - Investments segment experienced an operating loss of EUR -0.6 million, a decline from a profit of EUR 0.2 million in the previous year [2][3][15] Market Conditions - The early part of 2025 saw turmoil in global capital markets, with US stock markets remaining flat and European stock prices rising by approximately 15% [5] - The tariff war and geopolitical challenges have created significant uncertainty in capital markets, negatively impacting economic development [6] - Interest rates have fallen significantly, particularly in Europe, which may support real estate and equity investments [6] Asset Management Developments - eQ Asset Management's assets under management grew to EUR 13.6 billion, up from EUR 13.4 billion at the end of 2024 [3][4] - The company raised USD 143 million for its private equity fund, eQ PE XVII US, with total fund size increasing to USD 168 million after the review period [9] - The market for open-ended real estate funds remains low, with postponed redemptions expected to be paid by the end of April 2025 [10][16] Future Outlook - The real estate market is expected to improve in 2025 compared to 2024, contingent on falling interest rates and economic recovery [16] - Private equity fees are anticipated to increase in 2025, as Finnish asset management clients are expected to raise their allocations [18] - The company aims to enhance client service and growth through organizational restructuring and key appointments [11]

Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $36 million or $0.55 per diluted share for Q4 2024, with a return on average assets of 0.9% and return on average equity of 6.5% [5][6] - For the full year 2024, consolidated income attributable to common stockholders was $113 million, equating to $1.74 per diluted share, with net interest income declining by 11% [17][5] - The tangible book value per share increased from year-end 2023 by $1.14 to $29.49 [12][13] Business Line Data and Key Metrics Changes - PlainsCapital Bank generated $51 million of pretax income on $13.3 billion of average assets, with average loans declining by approximately 1% [7][8] - PrimeLending reported a pretax loss of $9.9 million during the quarter, driven by a reduction in origination lock volumes, although origination volume increased by $438 million compared to Q4 2023 [9][10] - Hilltop Securities generated pretax income of $20 million on net revenues of $125 million, with public finance services producing a 32% increase in net revenues [11][12] Market Data and Key Metrics Changes - Average deposit balances at PlainsCapital Bank increased by nearly $600 million during the quarter, marking the fourth consecutive quarter of growth in core interest-bearing deposits [7][8] - Total non-interest income for Q4 2024 was $196 million, with mortgage-related income and fees increasing by $4 million compared to Q4 2023 [25][26] Company Strategy and Development Direction - The company aims to focus on risk management, balance sheet positioning, and serving customers to drive long-term value creation [5] - Hilltop plans to manage interest-bearing deposit betas and reduce asset sensitivity over time, targeting a long-term asset sensitivity of 2% to 4% [22][56] Management's Comments on Operating Environment and Future Outlook - Management noted a dramatic shift in the Fed's posture regarding inflation, with three rate cuts totaling 100 basis points in 2024 [4] - The outlook for 2025 reflects uncertainty in the market regarding interest rates and inflation, with expectations for bank loan growth between 2% and 5% [30][28] Other Important Information - The allowance for credit losses decreased by $9.8 million to $101 million, reflecting improved economic conditions and credit migration [19][18] - The company returned $64 million to stockholders during the year through dividends and share repurchases [5][13] Q&A Session Summary Question: Plans for share repurchase given the merchant banking gain - Management confirmed that the priorities for capital allocation have not changed and they have authorization for a $100 million share repurchase program [34][35] Question: Loan growth outlook and assumptions - Management indicated that while there is strong pipeline activity, actual fundings may take a couple of quarters to materialize [39][41] Question: Margin commentary and NII guidance - The guidance for net interest income encapsulates two expected Fed rate cuts, with asset sensitivity impacting NII performance [45][46] Question: Structured finance revenues outlook for 2025 - Management noted that structured finance revenues depend on state funding for down payment assistance programs, which are outside their control [52] Question: Volatility in provision for credit losses - Management explained that the provision volatility is due to economic assumptions and specific portfolio activities, particularly in the auto note portfolio [60][62]