Bank Ifis ha closed il first semester 2024 with Useful consolidated net result of 93,6 million euros, up 2,8% compared to the previous year. This positive result was mainly driven by the solid performance of commercial business, the sector npl (Non-Performing Loan) and from proprietary finance, which offset the increase in collection costs. Although the integration of Revalea led to an increase in expenses, it also brought significant advantages in recoveries on NPL portfolios. Following these positive results, the bank has confirmed the prediction of a annual profit of 160 million euros for the entire 2024 financial year.
“We confirm the our dividend policy and, like last year, we will pay the interim dividend in November.” CEO Frederik Geertman reported this during the conference call for the presentation of the first half results. “We will start working on the new business plan, which will still last three years, in the autumn and we intend to present it in the first half of 2025,” he added.
Banca Ifis accounts
Il intermediation margin stood at 374,5 million euros, up 7,5% compared to the 348,5 million euros of the first half of 2023. This increase was mainly supported by the positive performance in the Commercial & Corporate Banking Sector which recorded an increase of 0,9%, equal to approximately 1,6 million, thanks to the activity of the bank's commercial network, which allowed the growth of activities despite the lower demand for credit due to higher interest rates. The cash flows resulting from NPL portfolios, including those of Revalea, reached 220 million euros, confirming the bank's specialization in this sector. The growth of the NPL sector was 17,4%, contributing approximately 23,8 million euros compared to the first half of 2023. Also the Proprietary Finance business unit showed a strong increase, with results growing by 61%, equal to approximately 12,5 million euros, compared to the same period of the previous year.
As far as costs go, the cost of credit decreased to 15,8 million euros, compared to 16,3 million in the same period last year. However, i operating costs they rose to 206,1 million euros (+7,5%), mainly due to the increase in expense for personnel (86,6 million euros compared to 80,4 million euros in the first half of 2023), mainly due to the growth in the number of employees as well as the higher other administrative expenses (124,2 million euros compared to 115,2 .2023 million euros for the same period of XNUMX). These increases also reflect theRevalea integration.
In the second quarter of 2024, the average cost of collectiona increased slightly to 3,94%, compared to 3,86% in the previous quarter. Since this quarter already includes the costs of new deposits and the senior bond issued in February, the cost of funding is expected to stabilize in the coming months. The Bank expects to keep the average cost of financing below 4% throughout 2024.
Banca Ifis has also improved its asset position, with the CET1 ratio rising to 15,32% (compared to 14,87% at 31 December 2023) and the Total Capital Ratio to 17,59% (from 17,44% at the end of 2023). These indicators are well above the minimum requirements required.
The bank has managed liquidity effectively, explains a note, with reserves and free assets that can be financed in the ECB amounting to approximately 1,7 billion euros and an LCR (Liquidity Coverage Ratio) of approximately 1.300%. Furthermore, Banca Ifis has repaid €1,6 billion of TLTRO III early, with the remaining balance scheduled for repayment in September 2024.
On the front of the sustainability, Banca Ifis continued with its environmental and social initiatives. The rating MSCI of the bank was improved to AA, and investments have been made in sustainable projects, such as e-bike leasing and photovoltaics.
CEO Frederik Geertman's comment
“Based on the positive trend of the period, we count on full realization of the targets of this Industrial Plan, continuing to support small and medium-sized Italian companies in the path of sustainable development and transition, with our products and services and with distinctive expertise of our people – he declared Frederik geertman, CEO of Banca Ifis –. In the first half of 2024, the commercial activity in factoring and leasing, thanks to the effective work of our network, achieved growth rates higher than the reference markets, offsetting the increase in the cost of collection. The NPL business also remains solid and benefits from the contribution of the acquisition of Revalea. Since the beginning of the year, the Bank has also launched a series of actions aimed at reducing the impact of a possible reduction in interest rates: the duration of the proprietary securities portfolio has been increased and the percentage of new fixed rate leasing disbursements has has almost doubled to around 80% compared to the last half of 2023”.
