12/05/2022
12:33

Banca Ifis: net profit up 74% to 35 million Euro in Q1 2022. Business Plan objectives confirmed

SDIR: REGEM 2.2

First quarter 2022 results confirm the resilience of Banca Ifis’s business model and its ability to increase the productivity of its core businesses. In Commercial & Corporate Banking, Factoring, Leasing and total credit portfolio all grew at higher rates than the reference markets1, while the further increase in collections from the NPL business reflects the increase in efficiency
of this activity. The end of the moratorium agreements confirmed the quality of the receivables portfolio: only 3% of the receivables that were in moratorium have three instalments overdue and of these, two thirds of which are backed 80% by the government. Thus, the impact of the Covid-19-related pandemic on the cost of risk appears negligible.
The significant provisions made for Covid in previous years have been conservatively maintained. The Bank has no direct material exposure to Russia, Belarus or Ukraine. To date, there have been no indirect risks to customers arising from the geopolitical context.

For FY 2021, the Shareholders’ Meeting has approved distribution of a dividend of 0,95 Euro per share, equal to twice the coupon for FY 2020. The amount will be payable starting 25 May 2022 with record date on 24 May 2022 and ex-dividend date (no. 25) of 23 May 2022.

First quarter 2022 results
Reclassified data – 1 January 2022/31 March 2022

  • Net banking income is up 18,6% to 163,3 million Euro (137,7 million Euro at 31.03.2021) and benefited from the greater revenues of the NPL Segment of 69,8 million Euro (+11,5 million Euro compared to 31.03.2021) and of the Commercial & Corporate Banking Segment of 73,8 million Euro (+8,6 million Euro compared to 31.03.2021).
  • Operating costs come to 87,8 million Euro (+4,7% on the 83,8 million Euro recorded at 31.03.2021) due to the entrance of the former Aigis Banca BU into the scope of consolidation and some strategic projects, such as the merger of Credifarma into Farbanca.
  • The Parent Company’s net income was 34,9 million Euro, up 73,7% from the 20,1 million Euro of Q1 2021, despite the significant decline in PPA to 4 million Euro from 12 million Euro at 31.03.2021.
  • Cost of credit of 17,0 million Euro (down from 18,4 million Euro in the corresponding period of 2021), which includes provisions of approximately 8 million Euro against positions in the commercial portfolio with high vintage.
  • Solid liquidity position: approximately 1,3 billion Euro at 31 March 2022 in reserves and free assets that can be financed
    by the ECB (LCR above 1,300%).

Capital requirements

  • CET1 up to 15,72% (15,44% as of 31 December 2021), among the best in the market, and TCR of 20,01% (19,63% as of 31 December 2021), calculated excluding the first quarter 2022 profit. The increase in CET1, compared to 31 December 2021, is mainly due to the decrease in lending volumes at period end due to the seasonality of the Bank’s factoring business.
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