Illimity Bank SpA (FRA:53D) (H1 2024) Earnings Call Highlights: Strong Profit Growth and ...

GuruFocus News
4 min read

In This Article:

  • First Half Net Profit: EUR23 million, up 43% year on year.

  • Q2 Net Profit: EUR12.2 million, up 13% quarter on quarter.

  • Corporate and Investment Banking Pretax Profit: Up 26% quarter on quarter and 35% year on year.

  • Specialized Credit Business Origination: Up 79% from the previous quarter.

  • Core Tier 1 Ratio: 14.6%.

  • Liquidity Buffer: EUR900 million.

  • Gross NPE Ratio: Reduced to 0.6% excluding public guarantees.

  • Operating Profit: Up 22% year on year for the first semester.

  • Operating Income Q2: Up 12% quarter on quarter.

  • Net Commission: Rose by 56% quarter on quarter.

  • Net Customer Loans: Up 13% in the quarter.

  • Total Assets: EUR8.1 billion, up 7% quarter on quarter and 21% year on year.

  • Funding: Increased by 9% in the quarter.

  • EBITDA for ARECneprix: EUR9.7 million, up from EUR3 million in the first half of last year.

  • SGR Pretax Profit: Increased by 67% year on year.

  • HYPE Q2 Net Profit: EUR1.1 million, first half result EUR1.5 million.

  • b-ilty Net Customer Loans: EUR547 million, more than three times the amount in Q2 last year.

  • Common Equity Tier 1 Ratio: 14.6%.

  • Total Capital Ratio: 18.6%.

  • Blended Cost of Funding: 4.1% in June.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Illimity Bank SpA (FRA:53D) reported a first-half net profit of EUR23 million, marking a 43% increase year on year, excluding extraordinary revenue from the previous year.

  • The bank's corporate and investment banking pretax profit rose by 26% quarter on quarter and 35% year on year.

  • Specialized credit business origination increased by 79% from the previous quarter, indicating strong growth potential.

  • The bank maintained a robust capital and liquidity position with a Core Tier 1 ratio of 14.6% and a liquidity buffer of EUR900 million.

  • Asset quality improved significantly, with the gross NPE ratio, excluding public guarantees, more than halving to 0.6%.

Negative Points

  • Net interest income slightly decreased quarter on quarter due to the exit from the traditional NPE portfolio business.

  • The bank faced a EUR7 million deposit guarantee scheme contribution, impacting net profit.

  • Operating costs, although starting to decline, still require further reductions, particularly in due diligence and servicing costs.

  • The cost of risk was higher than expected, primarily due to the disposal of two non-state guaranteed positions.

  • The profitability of Quimmo, the bank's proptech initiative, is still affected by the reduction in national bankruptcy figures.

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