Double digit growth in the first half for the Bank’s revenues which reached 292,6 million Euro and reached an all time high, net of PPA (277 million Euro). Record also for cash recoveries of Npl portfolios purchased amounting to 170 million Euro. In an improving macroeconomic environment, more than 70% of customers who had requested the moratorium resumed making regular payments. The programme for the digitisation of the Bank continues as planned.
The guidance was prepared on the assumption that the macroeconomic environment is gradually improving, that there will be no shocks from new lockdowns in the United States, Europe or Italy and that governments and central banks will continue to support the economic recovery.
Capital requirements with the consolidation within La Scogliera
Capital requirements without the consolidation within La Scogliera
Mestre (Venice), 05 August 2021 – The Board of Directors of Banca Ifis, chaired by the Deputy Chairman, Ernesto Fürstenberg Fassio, today approved the results for the first half of 2021.
“The results of the first half of the year confirm the solidity of our business model, which was able to immediately take advantage of the improvements in the macroeconomic context” – explains Frederik Geertman, CEO of Banca Ifis – “Revenues grew double-digit, reaching 292,6 million Euro and, net of PPA (277 million Euro), reaching an all-time high, confirming the Bank’s ability to generate sustainable revenues in the long term. The Parent Company’s net profit increased by 31,5% to 48,3 million Euro, compared with 36,8 million Euro in the same period last year.
Positive signs, linked to the recovery, also come from the monitoring of loans in moratorium where 70% of our customers have resumed regular payments. The remaining receivables in arrears, amounting to 221 million Euro,
consist mainly of lease receivables, underlying vehicles and capital goods, and loans mainly government-backed.
From a strategic point of view, the programme of digitisation and omnichannel business services continues. After the July opening of “Ifis4business” to some large factoring customers, in the coming months we will extend access to the platform to all our factoring customers and, by the first half of 2022, to all the products in our portfolio. This will allow
us to reach customers in an omnichannel fashion, further enriching the customer experience, as well as offering new opportunities in terms of marketing.
During the first six months of the year, cash recoveries on Npl portfolios acquired reached an all time high and amounted to 170 million Euro, +45,4% compared to 116,9 million Euro in the first half of 2020. Recoveries benefited from precise managerial actions aimed at increasing the productivity of our servicing and reducing the recovery times
for positions characterised by greater uncertainty.
In the second quarter of 2021, in a sign of further caution regarding the long-term impacts of Covid-19, we initiated a review of our Npl and commercial portfolio, primarily on positions with high vintage. The analysis, which is still in progress, has led to prudent provisions of 9 million Euro on the Npl portfolio and 5 million Euro on the commercial portfolio, already included in the second quarter results. The Bank’s portfolio review will be completed in the second half of 2021.
With respect to the outlook for the current year, I am firmly convinced of the Bank’s ability to generate sustainable and recurring profits: for 2021 we estimate net interest and other banking income in the range of 540 to 560 million Euro and operating profit in the range of 80 to 90 million Euro, assuming a gradually improving macroeconomic environment, no shocks from new lockdowns in the US, Europe or Italy and continued support from governments and central banks for the economic recovery”, concludes Frederik Geertman.