Results for the first nine months of 2019
RECLASSIFIED DATA: 1 January – 30 September
• Net profit for the period: 84 million Euro compared with 89 million Euro in the first nine months of 2018. The change was affected by the natural decline of the “PPA reversal”;
• Net banking income: 391,2 million Euro (-3% on the period ended 30 September 2018);
• Net impairment losses: 49 million Euro (68,9 million Euro for the period ended 30 September 2018);
• Operating costs: 212,4 million Euro (+1,7% on the period ended 30 September 2018);
• Direct funding: up to 4.949 million Euro (+11,9% on 31 December 2018), confirming the Bank’s solidity and its ability to attract retail customers;
• NPL collections: 182,6 million Euro (+45% on the period ended 30 September 2018), confirming the Group’s recovery expertise.
Capital requirements with consolidation within La Scogliera:
• CET 1: 11,10% reached (+0,8% vs. 10,30% at 31 December 2018) excluding profit for the third quarter and thanks to organic growth alone. CET1 remains well above the SREP requirement of 8,12%; TCR: 14,84% (14,01% at 31 December 2018) towards a SREP requirement of 12,5%.
Capital requirements without consolidation within La Scogliera:
• CET1: 14,66% (13,74% at 31 December 2018); TCR: 19,25% (18,20% at 31 December 2018).
Mestre (Venice), 7 November 2019 – The Board of Directors of Banca IFIS met today chaired by Sebastien Egon Fürstenberg and approved the results for the first nine months of 2019.
“The net profit from financial activities reported in these first nine months of 2019 is a reflection of the Bank’s well balanced business model: the Non-Performing Loans business accounted for 49%, with the other core business areas (trade receivables at 28%, corporate banking at 12% and leasing at 10%) accounting for the remaining 51%,” explained Luciano Colombini, CEO of Banca IFIS.
“Profit for the first nine months was down slightly on the same period of 2018, mainly due to the natural, expected decrease in the PPA reversal, offset by a significant reduction in the cost of credit.
In the fourth quarter we expect robust volume growth in the Non-Performing Loans business. We are competitive and we provide excellent solutions to our customers, the market and the entire financial system.
We are finalising our Business Plan, which will be focused on three growth pillars. First: further consolidate Banca IFIS’ position as privileged partner of small and medium enterprises with increasingly deep dedicated services and a wide range of products created ad hoc. Second: in an increasingly challenging and competitive market scenario, strengthen the Group’s leadership in the purchase and management of Non-Performing Loans, accelerating the integration and synergies with FBS S.p.A., following the recent acquisition of the remaining 10% interest, as announced on 30 October, to expand the recovery system to cover all categories of non-performing loans.
The third pillar of the Business Plan concerns the strengthening of capital, optimising its allocation to the different business components.
We reached a CET1 ratio of 11,10% at 30 September 2019 (+80 basis points on 31 December 2018), not including the profit for the third quarter, and driven by organic growth only.
Finally, in the ongoing process of developing the real-estate assets in Milan, the binding offers received to date indicate potential capital gains. We expect to complete this process at the end of this year or in the first quarter of 2020,” Luciano Colombini concluded.