Banca Finint aims to increase the result by 85% in the next three years. The bank led by Enrico Marchi and managed by the new CEO Fabio Innocenzi presented the new one Strategic plan for the three-year period 2021-2023, which is based on two strategic guidelines: the acceleration of growth in Banca Finint's core businesses, represented by Corporate & Investment Banking and Asset Management activities and the start of a diversification process in sectors complementary to the areas of specialization of the Bank, in particular in the Wealth Management, and in the development of the sector linked to the purchase and management of NPE.
Here are the forecasts of the Bank of Conegliano Veneto in detail: the intermediation margin will go from 54,6 million euros in 2020 to 81,5 million in the 2023 with an annual growth rate (CAGR) of 14,3%. The net commissions expected in 2023 will amount to 69,7 million euros, compared to the 48,1 million euros recorded in 2020 (+44,9%). While the pre-tax result will rise to 34,8 million compared to 18,8 million euros in 2020: with a growth of 3,2% in 2021 (19,4 million), 32% in 2022 (25,6 million) and 35,8% in 2023 (34,8 .85 million), thus recording an increase in the result of 2020% between 2023 and XNUMX.
THEnet income is expected to grow, reaching i 23,8 million euro. The Cost Income Ratio will be reduced from 63,7% in 2020 to 60,4% expected in 2023. ROE is also expected to grow to 34,1% in 2023 compared to 24,6% in 2020. The CET1 Capital Ratio will remains stable (13,5-13,6%), with payout ratio forecasts equal to 70% of the net result. Furthermore, in the next three years, placements of approx 120 new resources, of a path focused on thematic of sustainable finance also through the development of ESG products and, finally, the simplification of processes from a lean perspective.
The 2021-2023 Strategic Plan
In 'Corporate & Investment Banking area, the plan aims at consolidation and growth in the structuring and management of structured finance transactions such as securitisations, minibonds and basket bonds, alongside the development of Corporate Advisory activities.
In particular, the plan provides for the expansion of the product catalog with a view to cross selling and an ever greater synergy between the services offered with a focus on financial products "ESG compliant”, securitisations of real estate, registered movable assets, assets and leasing contracts, tax credits, the structuring and management of the issue of subordinated or convertible bonds and supports to be provided to customers through the so-called specialized lending activities, which will be accompanied by the continuous search for new market segments and the rationalization and efficiency of existing products.
The Plan also envisages an acceleration in the activities of Asset Management carried out through the asset management company Finint Investments SGR. The drivers on which growth in this area is based are Private Capital (i.e. Private Debt, Private Equity, Turnaround), NPLs, Real Estate declined with a particular focus on social housing and student housing, energy and on urban regeneration issues. In line with a sustainable vision, the 50% of invested assets will respond to sustainability logics (ESG).
The plan calls for Finint SGR shows strong growth over the three-year period: EBITDA will go from 4,1 million euros in 2021 to 7,5 million euros in 2023, while the increase in assets under management (AuM) will go from the current 2,7 billion euros to 3,5 billion euro in 2023 (+29,6%).
With reference to the expansion and diversification of services, the plan provides for the development of the Wealth area and the start of a process for the implementation of a new line linked topurchase, valorisation and management of non-performing loans (NPE), synergistic and complementary to the activity already carried out by the Bank with the service structure.
“Banca Finint accelerates in its strengthening process – he commented Enrico Marchi, Chairman of Banca Finint –. The new three-year Strategic Plan bases its foundations on the excellent results achieved in previous years and envisages ambitious growth objectives for our Banking Group within a particularly challenging market context marked by the economic consequences caused by the Covid-19 pandemic, and of a constantly evolving banking system, which makes it necessary to identify resilient business models and which allow us to be competitive on the market in an ever more efficient and effective way.”
"It is a Strategic Plan that aims to achieve ambitious financial and growth objectives over the three-year period by strengthening the bank's positioning in the sectors that represent its historical business - he added Fabio Innocenzi, Chief Executive Officer of Banca Finint – such as structured finance and asset management, and a diversification action in complementary and high value-added sectors, such as Wealth Management. With this plan, with which we want to design an increasingly complete and transversal offer for our customers, we aim to accelerate Banca Finint's growth in core areas, and lay the foundations for a preparatory path for entering the capital market in the coming years, which can represent a further opportunity for growth for the Group.”
