Banca Ifis closed the first nine months of the year with a net profit for the period of 89 million euro, down 40,3% compared to 149,1 million a year earlier. However, the intermediation margin rose by 7,5%, to 403,6 million, with a +55,3% for the intermediation margin on NPLs. Operating costs rose by 15,6% to 208,9 million euro, while the net non-performing loans/lending ratio for the business sector stood at 1,3%.
During the period, Banca Ifis made net value adjustments of 68,9 million euro compared to adjustments of 11,0 million a year ago. The change in the period (-79,9 million euros) is mainly due – as explained in a press release – to the combined effect of "higher analytical provisions for 41,3 million euros on non-performing and unlikely to pay positions attributable to two historical counterparties (the relationships began over 15 years ago) with individually significant exposures, as well as the absence of some net recoveries recorded in the first nine months of 2017, against the successful completion of restructuring operations".
“We present ourselves to the markets with a solid capital and financial structure – commented the managing director Giovanni Bossi – The Bank holds a modest number of government bonds, among the lowest in the system and equal to around 29% of the net assets. It can also count on a liquidity endowment in excess of requirements, such as to exhibit a liquidity coverage ratio (LCR) of over 2.000% against a regulatory minimum of 100%". As at 30 September, the Cet 1 was equal to 14,63% from 15,64% as at 31 December.
As regards the Npl area, Bossi added, "the pressure on portfolio purchase prices, which characterized the first few months of 2018, is giving way to a more interesting competitive context with contracting prices". “For this reason – he said – we started buying portfolios again in the third quarter with prices around 5% for unsecured credits with a value of around 1,8 billion. We confirm the utmost attention in transforming non-paying debtors into re-performing debtors; the success of our action is today demonstrated by the vigorous increase in profits and cash flows generated and expected as a result of the transformations”.
