Ifis Finance logo

Banca IFIS Group: Net profit for the period 29,9 million Euro and Net banking income 130,1 million Euro

Privileged information

1st Quarter 2019 Results

RECLASSIFIED DATA: 1 January – 31 March

Net profit for the first quarter of 2019: 29,9 million Euro;
Net banking income: 130,1 million Euro, confirming the growth of the core business segments;
PPA Contribution: as expected, it fell to 17 million Euro from 31 million Euro in the fourth quarter of 2018;
Operating costs: 74,4 million Euro, including the consolidation of FBS;
Cost of credit (Enterprises segment): 13,2 million Euro (88 basis points vs. 170 basis points in 2018), stabilising after the non-recurring provisions set aside in 2018;

Capital requirements with the consolidation within La Scogliera:
• CET 1: 10,29% including the consolidation of FBS. The CET1 ratio remains comfortably above the SREP requirement of 8,12%; TCR: 14,02% (14,01% at 31 December 2018) compared to a SREP requirement of 12,5%.

Capital requirements without the consolidation within La Scogliera:
• CET1: 13,53% (13,74% at 31 December 2018); TCR: 18,03% (18,20% at 31 December 2018).

Mestre (Venice), 9 May 2019 – The Board of Directors of Banca IFIS met today under the chairmanship of Sebastien Egon Fürstenberg and approved the results for the first quarter of 2019.

«My initial impression is that the Bank is a dynamic, innovative, and profitable entity relying on a cohesive team of young and capable managers with complementing professional experiences—explains Banca IFIS Group CEO Luciano Colombini. The quarterly earnings show 130 million Euro in net banking income—and all the Bank’s business areas contributed to this result. Banca IFIS boasts a one-of-a-kind business model with a strong level of diversification and specialisation in different market segments.

Our strategy shall focus on growing the various business units while continuing to place special emphasis on the quality of our assets as well as operating costs. In the NPL segment, we will keep on buying portfolios and improving collection processes, leveraging also the recent acquisition of FBS—which will allow us to act as buyers and servicers of NPL portfolios on behalf of third parties, including in the secured and corporate segment. In the Enterprises segment, we will expand our offering of financing and services to Small and Medium Enterprises».

«We are extremely well positioned to continue growing in the coming quarters, as the positions subject to Garnishment Orders and those in the Secured and Corporate category of the NPL segment show: their Gross Book Value rose by over 5% in the last quarter alone. The Enterprises segment, which serves SMEs—representing one of the most attractive markets in terms of growth and returns—is well diversified in terms of sectors, geographies, and customers—adds the CEO. «The net profit for the first quarter of 2019 amounted to 30 million Euro, while the cost of credit stabilised after the one-off provisions set aside for some individual positions in 2018».

«We must now place special emphasis on the cost/income ratio and operating costs without affecting the investments in digital innovation, technology, and the NPL segment that are necessary to ensure our growth in the future.

We continue paying the utmost attention to the Bank’s capital requirements. In the first three months of 2019, the CET1 ratio was essentially unchanged from the previous quarter at 10,29%, even when including 41 million Euro in goodwill arising from the acquisition of FBS. The CET1 ratio remains comfortably above the 2019 SREP requirement of 8,12%. Total capital stood at 14,02%, compared to a SREP requirement of 12,5%.

The Bank is thus well positioned to move forward on the growth path of the next few years, to which I will give my best efforts—and I am happy to be part of such a dynamic group. The controlling shareholder has reaffirmed support for the Bank’s strategy and growth» concludes Mr Colombini.