Spaxs presents the strategic plan 2018 – 2023 of the new bank specialized in the Italian SME market which will arise from the business combination with Banca Interprovinciale.
When fully operational, the bank aims to achieve a net profit of 300 million euros with a Return on Equity (ROE) around 25%. For 2020, a profit of between 40 and 50 million euros and a 6-7% ROE are expected.
The three areas of activity will have different entry speeds: the fastest NPL Division, which will be the main contributor to pre-tax profit in 2020. Once fully operational, the bank will be fully diversified, with a balanced contribution to P&L between NPLs and PMIs, with the Retail division which will instead play a decisive role in funding aimed at supporting the bank's activities.
The return on assets and the lean operating structure will enable the achievement of a Cost Income Ratio less than 55% already in 2020 and less than approximately 30% at the end of the plan.
Assets are estimated to grow with an initial target of between 3,8 and 4,6 billion euros by 2020 and 7 billion euros when fully operational, with prudent risk management thanks to stringent rules that provide for full matching of maturities of assets and liabilities and a good diversification of funding sources.
The bank intends to maintain a solid capital profile, with a CET1 ratio which will remain constantly above 15% throughout the plan. This objective includes a conservative dividend policy, with increasing dividend distributions starting from 2022, once a shareholders' equity value of €1 billion is reached, with pay-outs of 20% in 2022 and 25% in 2023 .
“We are building an entrepreneurial bank and, we hope, useful for our country – he commented Corrado Passera, executive chairman of Spaxs and future CEO of the institution – Will focus on very large and underserved sectors such as lending to potential but low rated SMEs and aims to become a leading player in the corporate NPL sector, unsecured and secured. We will also offer direct banking services to households and businesses that are not yet available in our country".
