Banca Ifis exceeds targets and closes 2020 with profit of 68,8 million Euro. Geertman joins the Board of Directors
In a year that has been profoundly marked by the COVID-19 pandemic, the Group has exceeded expectations, confirming resilient profitability and taking decisive action to derisk the business
On the strength of the strategic initiatives and investments made during the year, including the rebranding and the portal dedicated to Ifis4Business companies, the Bank can speed up the route pursued based on the digitisation of the business model, attention to the customer and the valuation of people
- Net profits of 68,8 million Euro, higher than the guidance (between 50 and 65 million Euro) despite the second wave of COVID-19 and the lock-down that involved the country starting October
- Equity position strengthens with CET1 at 11,29%, (+0,33% on 31 December 2019)
- Improvement in credit quality: Gross NPE ratio: 6,4% at 31.12.2020 (vs 9,8% at 31.12.2019); Net NPE ratio1: 3,2% at 31.12.2020 (vs 5,4% at 31.12.2019)
- Additional provisions and adjustments due to COVID-19 for 76 million Euro to cope with the expected deterioration of the quality of the assets in the commercial business and the slower recovery in the NPL business as a result of the pandemic
- Further strengthening of the solid liquidity position: approximately 1 billion at 31.12.2020 in reserves and free assets that can be financed by the ECB (LCR above 900%)
- Purchases of NPLs exceed forecasts, coming to 2,7 billion Euro as compared with the 2,4 billion Euro forecast at the start of the year
- Recoveries of NPL cash in the amount of 259 million Euro, in line with 2019 despite COVID-19 and the lockdown
- Good performance seen in the commercial business in Q4 (factoring turnover of +8,6% on the Q3 and +26% in new leases disbursed in respect of 30 September 2020), showing the Bank’s capacity to make the most of opportunities for a gradual improvement in the macroeconomic context
Preliminary period results
Reclassified data – 1 January 2020 / 31 December 2020
- Net banking income of 468 million Euro (-16,2% on 31.12.2019), negatively impacted by the effects of the pandemic crisis.
- Operating costs of 308 million Euro (+4,4% on 31.12.2019), mainly due to the incurring of non-recurring costs.
- Improved asset quality with the disposal of 120 million Euro (GBV) in non-performing credits (mainly ex-Interbanca) in the Q4 2020.
Capital requirements with the consolidation within La Scogliera
- CET1 up to 11,29% (10,96% at 31 December 2019) versus an SREP requirement of 8,12%; TCR: 14,85% (14,58% at 31 December 2019) versus an SREP requirement of 12,5%. Requirements are calculated net of the 2019 dividend (Euro 1,1 per share), payment of which is suspended as a result of the recommendations of the Bank of Italy and the 2020 dividend (Euro 0,47 per share), which will be proposed for approval by the Shareholders’ Meeting in April 2021.
Capital requirements without the consolidation within La Scogliera
- CET1: 15,47% (14,28% at 31 December 2019); TCR: 19,87% (18,64% at 31 December 2019). Requirements are calculated net of the 2019 dividend (Euro 1,1 per share), payment of which is suspended as a result of the recommendations of the Bank of Italy and the 2020 dividend (Euro 0,47 per share), which will be proposed for approval by the Shareholders’Meeting in April 2021.