Bank Ifis, specialized in corporate credit and Npl management, recorded a net profit up 50% to 72,5 million euros in the first half of 2022 compared to 48,3 million euros in the first half of 2021, mainly thanks to the increase in revenues by 12% over the same period of the previous year. A press release from the Bank says so.
The Banca Ifis share in Piazza Affari has gained 2,3% to 13,92 euros while the Ftse Mib is positive by 1,12%.
The results "reflect the resilience of our business model which allows us to operate by taking advantage of high specialization, investments in process innovation and sustainable credit management in markets where our Bank has a strong competitive advantage" he declares Frederik Geertman, Chief Executive Officer of Banca Ifis. "The solid half-year results and the conservative risk-taking approach adopted in recent years will allow us to better face the possible adverse macroeconomic scenario of the coming quarters, continuing to play our role of support to the real economy", concludes geertman.
Il intermediation margin grew by 11,6% to 324 million from 290,4 million in June 2021 and benefits from higher revenues in the field npl grew by 9,5% to 135 million and in Commercial & Corporate Banking Sector, which grew by 1,6% to 142,2 million.
Operating costs grow by 7,5%
I operating costs they grew by 7,5% to 185,5 million, explains the note, due to the major ones personnel expenses (73,6 million euro from 67,7 million, due to the growth in variable remuneration and the contribution, in terms of resources, over the entire half-year linked to the acquisition of the former Aigis) and for other administrative expenses (114,6 from €111,5 million due to higher costs mainly associated with the Group's strategic projects.The cost of credit fell to €33,7 million from €43,5 million in the corresponding period of 2021.
Capital requirements: CET1 ratio down to 14,92%
The CET1 ratio decreased to 14,92% from 15,44% at the end of 2021 and the TCR is equal to 19,00% from 19,63% "calculated excluding the profit for the first half of 2022". The note specifies that "the CET1 would amount to 15,91% including the positive effects deriving from the application of the EU delegated regulation 954/2022 published in the Official Journal on 21 June 2022 and effective from July 2022, which allows for a reduction in the weighting credits acquired from the Npl business and the transfer of credits to the National Health System (SSN) carried out by the Bank in June 2022 (the recognition of the risk transfer is expected by September 2022)".
Non-performing loan: profit up 49,7%
The profit for the period of Npl sector, the main business of the Bank, grew by 49,7% equal to 32,5 million euro. The intermediation margin of the sector grew by 9,5% to 135,0 million thanks to "both the increase in average loans, which generated interest income of 78,2 million euro, and the improvement in expected cash flows based on collections made, which in turn generated a contribution to the intermediation margin of 66,3 million euros” says the note.
- collections of the Npl Sector in the first half of 2022 they amounted to 182,2 million euros, they include the installments collected during the half-year from repayment plans, tender orders and executed transactions, and are up by 7,2% compared to collections of 170 million euros euros in the first half of 2021. Cash recoveries on purchased portfolios, equal to 182 million euros (+7% compared to 170 million euros in the first half of 2021), "confirm the quality of the portfolio, a consequence of the prudential approach applied in the purchase of Npl portfolios which took into account the potential effects of the pandemic (purchases made in the two-year period 2020-2021) and the highest levels of inflation and geopolitical instability (purchases made during the first six months of 2022)" they tell Ifis.
In the first semester the provisions for credit risks amounted to 34 million. The significant reserves set aside for Covid in previous years, unused, were reclassified to deal with possible macroeconomic risks. The Bank has also made additional provisions for 3 million euro against positions in the commercial portfolio with a high vintage.
Commercial & Corporate Banking: net profit down 18,7%
In detail, theNet income of the Sector Commercial & Corporate Banking it fell by 18,7% to 24,4 million euros. This result is driven by the growth of interest margin for 9 million euros (+9,9%) and of net commissions (+0,8 million euros, equal to +2,1%), offset by the reduction in the other components of intermediation margin for 7,6 million euros (-86,2%) and the greater ones net value adjustments pfor 6,2 million euros.
The turnover of Factoring grew by 18,2% (compared to +16,6% of the market) and leasing disbursements by +24,4% (compared to 9,4% of the market). “The volumes of factoring and leasing closely linked to the invoice amounts and the price of the underlying assets showed a favorable trend, directly reflecting the increase in inflation. The dynamism of the Bank's commercial network was highlighted by growth rates higher than those of the reference markets” comments the bank.
