FinecoBank e Tim Brazil, despite belonging to different sectors, both reported solid quarterly results in first quarter of 2024. The banking institution's revenues were 327 million, an increase of 11,4% compared to the previous year. This increase was mainly driven by the Investing area, which recorded an increase of 13,5% year on year, thanks to the volume effect and the growing contribution of Fineco Asset Management. Financial Margin also grew by 14,8% year-on-year, while Brokerage showed a modest increase of 2,2%. Net profit amounted to 147 million, up 12,4% excluding systemic charges. Operating costs were 79,3 million, an increase of 8% compared to the previous year, but confirm effective control thanks to the Bank's operating leverage.
Instead, Tim Brasil runs fast. While waiting for the quarterly report, Telecom Italia shows off the positive results of its South American subsidiary, revealing an optimistic picture also in view of the group's results scheduled for May 15th.
Il title of Fineco is slightly down (-0,034%) at 14,58 euros per share.
Fineco's quarterly
“The results of the first three months of the year confirm Fineco's ability to continue on its development path, further improving the excellent results obtained in 2023 – commented the CEO Alexander Foti -. The growth involved all business areas, combining the improvement in the financial margin with a double-digit increase in Investing. The positive data from brokerage also confirms how the drive towards investments remains sustained, creating a solid connection between the two worlds thanks to the increasingly marked interest on the part of customers in interacting with global markets in a long-term perspective" .
The bank also highlighted solid growth in Total Financial Assets (Tfa), which reached 128,2 billion (+14,5%), with a net collection of 2,2 billion in the quarter, equal to 27,7 billion. The balance of managed collection is equal to 60,4 billion, an increase of 11,6%, the balance of managed collection it amounts to 40,1 billion (+40,6%). The assets managed by Fineco Asset Management grew to 32,3 billion, highlighting strong interest from customers.
Fineco Asset Management's assets under management amounted to 32,3 billion, of which 21,1 billion relating to retail classes (+21,2%) and 11,2 billion relating to the underlying wrapper funds (institutional classes, +7,0, XNUMX%).
La net collection in April amounted to 844 million, of which 195 million managed. The brokerage's estimated revenues for April jumped to 17 million euros, while 11.560 new customers were acquired in the last month (+36,6%), bringing the total number of customers to 1.590.239.
Looking to the future, Fineco expects record revenues, with an improvement in the mix in favor of commissions. Operating costs are also expected to grow by 6% year over year, but maintaining a cost/income ratio below 30%. The objective is to maintain a solid capital position, with an increase in the CET1 and Leverage Ratio, and to increase the dividend per share. The bank also confirms the expectation of robust net inflows and of continuing the positive trend in the acquisition of new customers.
Tim Brasil's quarterly
In particular, the Brazilian subsidiary closed the first quarter of the year with a Net income of 519 million reais, up 19% compared to the same period in 2023. Furthermore, the company recorded the best first quarter of its history under the operational profile, reporting revenues of 6,1 billion reais (+7,3%), and an ebitda of 2,9 billion reais (+10,7%). Operating cash generation rose from 532 to 843 million, marking an increase of 58,6% compared to the previous year.
“We achieved another quarter of record results, which strengthen our role as a leader in the telecommunications sector in Brazil – commented the CEO Alberto Griselli – we continue to advance in the expansion of 5G and have launched a new front focused on B2B customers: Tim IoT Solutions. The year has just begun and we will have many new features, such as the launch of a new portfolio for B2C customers and the application of artificial intelligence in caring channels, currently in the testing phase".
