In This Article:
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Net Income (Q3 2024): EUR 33 million, flat year-on-year.
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Net Income (9M 2024): EUR 127 million, up 2% year-on-year.
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Revenue (Q3 2024): EUR 157 million, down 4% year-on-year.
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Revenue (9M 2024): EUR 531.8 million, up 3.8% year-on-year.
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Commercial Banking Revenue (Q3 2024): EUR 93 million.
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NPL Revenue (Q3 2024): EUR 55 million.
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Cash and Cash Equivalents: EUR 2.1 billion.
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CET1 Ratio (as of 30th September 2024): 16.43%.
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Dividends: EUR 1.2 per share, totaling EUR 63 million.
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Operating Costs (Q3 2024): EUR 94 million.
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Loan Loss Provisions (Q3 2024): EUR 13 million.
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Net Interest Income (9M 2024): EUR 404 million.
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Capital Gains (9M 2024): EUR 30 million from private equity investments.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Banca Ifis (STU:0I6) reported a net income of EUR 127 million for the first nine months of 2024, marking a 2% increase year-on-year.
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The company confirmed its 2024 guidance of EUR 160 million net income, indicating confidence in meeting its financial targets.
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The financial position remains robust with EUR 2.1 billion in available cash and cash equivalents.
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The bank's CET1 ratio improved to 16.43% as of September 30, 2024, reflecting a strong capital position.
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Banca Ifis (STU:0I6) has strategically extended the duration of its government bond portfolio to stabilize interest income.
Negative Points
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Revenues in Q3 2024 were EUR 157 million, a decrease of 4% year-on-year due to increased cost of funding.
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There were limited signs of asset quality deterioration, particularly in specific sectors such as automotive and steel.
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The NPL business showed marked seasonality, with a decrease in cash collections and revenues in Q3.
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The bank faces competition in lending to high-rated corporates, which could impact future profitability.
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The cost of funding has peaked and is expected to decrease, but managing the asset side of the balance sheet remains a challenge.
Q & A Highlights
Q: Can you provide any insights into the bottom line for 2025 and how you plan to handle potential interest rate changes? A: We are confident in continuing to provide attractive returns and dividends. We expect to release significant overlays in the coming 18 months, which will support our financials. Regarding interest rates, we aim to keep the cost of funding below 3.5% in 2025, assuming current rate scenarios hold. We are also introducing a double voting rights scheme to promote shareholder stability.