10/11/2022
14:27

Banca Ifis: net profit up 32% to 105,5 million Euro in the first nine months of 2022

SDIR: REGEM 2.2
Inside information

The Board of Directors appointed Ernesto Fürstenberg Fassio as President of Banca Ifis and designated Sebastien Egon Fürstenberg as Honorary President of the same institution.
Distribution of an interim dividend for FY 2022 in the amount of 52,4 million Euro approved.

  • The Bank’s commercial activity, which grew in all sectors, yielded record results on both revenues (+10%) and Npl collections (+13%).
  • An all-time high for the nine months was also reached for net profit, net of PPA.
  • Further increased the reserves set aside in previous years to enable the Group to cope with potential risks due to the slowdown in economic growth and the worsening macroeconomic scenario.
  • The solid capital position allows for the distribution of 52,4 million Euro (1 Euro per outstanding share, gross of any withholding taxes) of a 2022 interim dividend, which will be paid with ex-dividend no. 26 dated 21 November 2022, record date of 22 November 2022 and payment date of 23 November 2022.
  • The CET1 ratio stands at 16,18%, including the profit for the first 9 months of 2022 net of the interim dividend and the foreseeable share of the dividend, and is well above the capital requirements of 8,65%.

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The net profit target of approximately 120 million Euro for FY 2022 is confirmed.
The emission reduction targets financed by 2030 on the credit portfolio have been announced, fulfilling the commitments made by joining the Net Zero Banking Alliance.

Results for the first nine months of 2022
Reclassified data – 1 January 2022/30 September 2022

  • Net banking income is up 9,6% to 488,7 million Euro (445,9 million Euro at 30.09.2021) and benefited from the greater revenues of the Npl Segment of 200,9 million Euro (+9,0% compared to 30.09.2021) and of the Commercial & Corporate Banking Segment of 225,2 million Euro (+5,8% compared to 30.09.2021).
  • Operating costs, amounting to 278,5 million Euro (+7,9% compared to 258,2 million Euro as at 30.09.2021), were up due to higher personnel expenses (111,2 million Euro compared to 103,7 million Euro as at 30.09.2021, mainly due to the growth in variable remuneration and the contribution, in terms of resources, linked to the former Aigis acquisition) and other administrative expenses (171,5 million Euro compared to 161,7 million Euro as at 30.09.2021) due to higher costs related to the recovery of the Npl portfolios and some Group strategic projects.
  • The Group’s net profit amounted to 105,5 million Euro, up 32% from 80,2 million Euro in the first nine months of 2021.
  • Credit costs of 48,9 million Euro, down from 60,3 million Euro in the corresponding period of 2021. The figure includes additional provisions for macroeconomic risk, although to date there are no signs of deterioration in asset quality.
  • Solid liquidity position: approximately 1 billion Euro at 30 September 2022 in reserves and free assets that can be financed by the ECB (LCR above 1000%).

Capital requirements

  • CET1 of 16,18% (15,44% as at 31 December 2021) and TCR of 20,49% (19,63% as at 31 December 2021), calculated including earnings in the first nine months of 2022 net of the interim dividend and the foreseeable share of the dividend.

 

Mestre, 10 November 2022 – The Board of Directors appointed Ernesto Fürstenberg Fassio Chairman of Banca Ifis and designated Sebastien Egon Fürstenberg as Honorary Chairman of the same Bank, pursuant to Article 10-bis of the Articles of Association.

The Board of Directors appointed Ernesto Fürstenberg Fassio Chairman of Banca Ifis and appointed Sebastien Egon Fürstenberg as Honorary Chairman of the same Bank, pursuant to Article 10-bis of the Articles of Association.

I would like to thank the Bank’s Board of Directors for the appointment as Chairman. I am happy to continue the path started – almost forty years ago now – by my father. I will work to innovate in the tradition of our Group,says Ernesto Fürstenberg Fassio, Chairman of Banca Ifis.

The Board of Directors of Banca Ifis approved as well the results for the first nine months of 2022.

The results of the first nine months once again confirm the Group’s solidity, with a net profit of 105,5 million Euro, up 32% compared to the same period in 2021. This figure represents an all-time high for our Bank and is mainly driven by the revenue trend. On this front, too, we record the best nine months ever. Our CET1 Ratio of 16,18% places us among the best Italian banks in terms of capital solidity, a solidity that allows us to reward our shareholders with the distribution of an interim dividend and to confirm the target net profit for 2022 of 120 million Euro, as set out in the Business Plan, declares Frederik Geertman, Chief Executive Officer of Banca Ifis.
Our strong earnings, capital and financial position shows the resilience of our business and our ability to deal effectively with the complex macroeconomic environment. Indeed, we record higher growth rates than the reference markets in Factoring (+23% compared to +17% for the market) and in Leasing, with disbursements up 35% compared to +9% for the market. These numbers are a sign that our sales network is working concretely to support our customers.
Finally, we also recorded a result that represents an all-time high in Npl collections in the first nine months, confirming us as one of the main players in the industry of impaired credit in the work supporting the Italian banking system. We continue to be committed to the realisation of our Business Plan by focusing on innovation and digitalisation, on sustainable management of our business on the social and environmental front, and on our constant desire to grow and evolve in order to find effective and fast solutions to be more and more the smart bank able to face the challenges ahead together with our customers, Frederik Geertman concludes.

Revenues of the Commercial & Corporate Banking Segment increased by +6% compared to the same period of last year. Factoring and Leasing volumes, which are linked to invoice amounts and the price of the underlying assets, showed a favourable dynamic, directly reflecting the increase in inflation. The positive exposure to rising interest rates, which started in the second quarter of 2022, will be more visible in the coming quarters. The dynamism of the Bank’s commercial network was evidenced by growth rates above those of its reference markets: in the first nine months of 2022, Factoring turnover (excluding the PA component whose business is being reviewed following the New Definition of Default) grew by 23% (compared to +17% for the market) and Leasing disbursements by +35% (compared to +9% for the market).

In the Npl Segment, cash recoveries on acquired portfolios amounted to 284 million Euro (+13% compared to 252 million Euro in the first nine months of 2021). The purchase of Npl portfolios proceeded in line with expectations: in the first 9 months of the year Banca Ifis acquired 1,4 billion Euro in terms of GBV. The preliminary results of the review in progress of the Npl portfolio to estimate the potential lower cash flows resulting from the new legislation that increases the minimum threshold for the attachment of pensions from 750 Euro to 1.000 Euro, and from the increase in inflation on out-of-court deposits, appear to be manageable within the scope of the Group’s normal operations.

The prudent credit policy led to a further increase in the reserves set aside to cope with the potential risks of slowing economic growth, although there are no signs of deterioration to date. These reserves also absorb those set aside for Covid in previous years, which have been requalified and not released. The gross Npe ratio and the net Npe ratio stood at 7,4% and 4,8%. The figures would come in respectively at 5,3% and 2,7% excluding reclassifications resulting from the application of the New Definition of Default regulations to receivables from the National Health System, which are characterised by limited credit risk and long payment terms.

Given the current national and supranational macroeconomic situation, we believe that the Banca Ifis Group is able to close FY 2022 with a result of 120 million Euro, in line with the target envisaged for the first year of the 2022-2024 Business Plan.

In terms of the potential achievement of the consolidated net result expected in the first year of the above-mentioned 2022-2024 Business Plan, the main implications arising from the current macroeconomic context were also considered, both as regards rising interest rates and the possible effects of rising inflation and the economic slowdown experienced in Europe and the potential implications related to the Npl business arising from the regulatory change related to the raising of the minimum threshold for the attachment of pensions. There is no evidence to suggest any significant changes in the Group’s main economic figures such as to alter the trends that have occurred to date and to an extent that would not allow the Banca Ifis Group to achieve the net result at the end of the year.

As far as the Group’s dividend distribution is concerned, in line with what was resolved by the last Shareholders’ Meeting (20 July 2022), today, the Board of Directors resolved to distribute an interim dividend for 2022 totalling 52.433.114, i.e. equal to 1 Euro (gross of withholding taxes) for each of the 52.433.114 Banca Ifis shares issued and outstanding as of today’s date (and therefore excluding treasury shares held by the Bank). Should the total number of outstanding Banca Ifis shares change, the total amount of the interim dividend will remain unchanged and the unit amount will be automatically adjusted to the new number of outstanding shares. The interim dividend 2022 will be paid with ex-dividend no. 26 dated 21 November 2022, record date of 22 November and payment date of 23 November 2022. Eligible shareholders may collect the dividend from their respective intermediaries.

After the distribution of the advance, the capital ratios of both the Bank and the Group remained well above the minimum required levels, with an individual CET1 Ratio of 16,70% and a consolidated one of 16,18%, and an individual Total Capital Ratio of 21,99% and a consolidated one of 20,49%.

Please also note that the Board of Directors’ report and the financial statements as at 30 September 2022 pursuant to Article 2433-bis of the Italian Civil Code. – on the basis of which the Board of Directors of Banca Ifis resolved to distribute the interim dividend and included in the Interim Report as at 30 September 2022 – are made available to the public at the Bank’s registered office, as well as on the authorised storage mechanism and on the Bank’s institutional website, www.bancaifis.it, in the “Investor Relations” section. Lastly, for the purposes of the distribution of the interim dividend, the independent auditing firm EY S.p.A. today issued the opinion required by Article 2433-bis of the Italian Civil Code, which will be made available to shareholders at the Bank’s registered office.

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