The era of Frederik Geertman, the Dutch CEO of Banca Ifis who took office this spring, is off to a good start. The first half of 2021 of the Venetian bank even closes with a double-digit increase for revenues that reach 292,6 million euros, the all-time high net of PPA (277 million euros). The increase in net profit was also very good, up 31,5% on the first half of 2020 to 48,3 million euros, while they also set a record for the cash recoveries of NPL portfolios purchased amounting to 170 million euro.
Above all, the result of the profit is exciting, if we consider that the first half of 2020 benefited from a extraordinary capital gain of 24,2 million euros and the related tax effect for the sale of the Milanese property on Corso Venezia. As a result of this excellent half year, Banca Ifis has opted for guidance for the whole of 2021 which estimates revenues between 540 and 560 million euros and a net profit between 80 and 90 million euros. The intermediation margin is in turn growing to 292,6 million euro (+37,5% compared to 30.06.2020) and benefits from both the better performance of the NPL Sector and the dynamism of the Commercial & Corporate Banking Sector.
The cost of credit amounted to 42,6 million euros, including provisions of 9 million euros in the Npl portfolio and 5 million euros on loans, due to the long-term effects linked to the Covid-19. Solid liquidity position: approximately €1,9 billion as at 30 June 2021 of free reserves and assets that can be financed by the ECB (LCR above 1.700%). Retail funding stable at 4,5 billion euro: the portion restricted beyond 31 months increased compared to 2020 December 18, the incidence of which on the total is equal to 30,6%.
“The first half results – commented the CEO of Banca Ifis Frederik Geertman – confirm the solidity of our business model which was able to immediately grasp the improvements in the macroeconomic context. Compared to the forecasts for the current year, I am convinced of the Bank's ability to create sustainable and recurring profits: for 2021 we estimate revenues of between 540 and 560 million euros and an operating profit of between 80 and 90 million euros, assuming a scenario of gradually improving macroeconomic environment, no shocks related to new lockdowns in the United States , in Europe or in Italy and the continued support of governments and central banks for the economic recovery”.
