- The 2022 net profit, net of PPA, represents an all-time record for the Bank.
- Net profit guidance for 2023 revised upwards: 150 million Euro compared to the 137 million Euro envisaged in the 2022-2024 Business Plan.
- The Bank’s commercial activity, which grew in all segments, yielded excellent, indeed record results on both revenues (+15%) and Npl collections (+11%).
- Resolution passed on the proposed distribution of 0,40 Euro per share, by way of balance on the FY 2022 dividend. In November 2022, an interim dividend of 1 Euro per share had already been distributed. The total 2022 dividend (interim and balance) thus amounts to 1,40 Euro per share.
- The CET1 ratio stood at 15,01%, including the profit and net of the FY 2022 dividend, placing it well above the capital requirements of 8,65%.
FY 2022 preliminary results
Reclassified data – 1 January 2022/31 December 2022
- Net banking income, up 13,4% to 680,5 million Euro compared to 599,9 million Euro in 2021, benefited from higher revenues in the Commercial & Corporate Banking Segment, amounting to 318,4 million Euro (+12,7% compared to 2021), the Npl Segment, amounting to 284,3 million Euro (+10,4% compared to 2021) and the Governance & Services and Non-Core Segment, amounting to 77,8 million Euro (+30,3% compared to 2021).
- Operating costs, amounting to 390,4 million Euro (+7% compared to 364,8 million Euro in 2021), were up due to higher personnel expenses (150,8 million Euro compared to 141,8 million Euro in 2021, mainly due to the growth in variable remuneration and the contribution, in terms of resources, linked to the former Aigis Banca acquisition) and other administrative expenses (242,4 million Euro compared to 231,8 million Euro in 2021) due to higher costs related to the recovery of the Npl portfolios and some Group strategic projects.
- The Group’s net profit amounted to 141,1 million Euro, up 40,3% from 100,6 million Euro in 2021.
- Credit cost of 77,5 million Euro, essentially stable compared to 2021. The 2022 figure includes 21,7 million Euro of adjustments on the Npl portfolio due to the regulatory change concerning the raising of the minimum threshold for the attachment of pensions.
- Liquidity position, as at 31 December 2022, is equal to approximately over 600 million Euro in reserves and free assets that can be financed by the ECB (LCR above 500%).
Capital requirements
- CET1 came to 15,01% (15,44% as of 31 December 2021) and TCR of 18,82% (19,63% as of 31 December 2021), calculated including the 2022 profit and net of the dividend.
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Rome, 09 February 2023 – The Board of Directors of Banca Ifis met today under the chairmanship of Ernesto Fürstenberg Fassio and approved the preliminary results for FY 2022.
“This result rewards a route in which we have continued to invest in our people; teamwork that, coupled with the new governance processes and sustainability, has allowed us to create profit, also generating a positive impact on the territories and communities in which we operate”, says Ernesto Fürstenberg Fassio, Chairman of Banca Ifis.
“In 2022, Banca Ifis recorded strong growth in all key financial and industry indicators. With a 2022 net profit of 141,1 million Euro, 40% higher than in 2021, the Bank exceeded the 2023 profit target of 137 million Euro set in the Business Plan, one year ahead of schedule. This performance represents an all-time high for our Bank and is mainly driven by the favourable revenue trend. These results were achieved despite a macroeconomic context characterised by numerous uncertainties with respect to the scenario envisaged in the 2022-2024 Business Plan: the war in Ukraine with the resulting geopolitical instability, lower-than-expected GDP growth, rising inflation and regulatory changes affecting the Npl business and the business of purchasing loans to the public administration, as well as the change in the TLTRO parameters implemented by the ECB in November 2022. The positive results achieved in 2022 prompted us to revise the 2023 profit target upwards by 10%, to 150 million Euro from the 137 million Euro estimated in the 2022-2024 Business Plan. This is based on the assumption of modest GDP growth, a gradual decline in inflation and a funding cost trend in line with the market consensus. Buoyed by the positive results achieved in the previous year and the solidity of our business model, we will continue to work with determination towards the realisation of our Business Plan,” says Frederik Geertman, CEO of Banca Ifis.
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Commercial & Corporate Banking Segment revenues, up 12,7% compared to 2021, reflect the efficiency of Banca Ifis’ business model. The Bank is positively correlated to interest rates (85% of the loan portfolio is at variable rates), Factoring and Leasing volumes, which are closely linked to invoice amounts and the price of the underlying assets, showed a favourable dynamic, directly reflecting the increase in inflation, while the number of Factoring clients increased from 7,6 thousand in 2021 to 8,1 thousand in 2022. In 2022, the Bank’s growth rates came in above those of its reference markets: Factoring turnover – excluding the PA component whose business is being reviewed following the New Definition of Default – grew by 18,2% (compared to +14,5% for the market) and Leasing disbursements by 38,6% (compared to +9,7% for the market).
In the Npl Segment, cash recoveries on acquired portfolios amounted to 384 million Euro, up 11% compared with the 345 million Euro in 2021. The purchase of Npl portfolios proceeded in line with expectations: in 2022, Banca Ifis acquired Npls for 2,4 billion Euro in terms of GBV. The new legislation, which increases the minimum threshold for the attachment of pensions from 750 Euro to 1.000 Euro, has led to an estimated 21,7 million Euro in lower collections on the Npl portfolio, fully expensed in 2022.
The portfolio owned in the Governance & Services and Non-Core Segment benefited from government bonds with inflation-linked yields and the purchase during Q4 2022 of a portfolio of debt securities issued by leading European financial and corporate institutions with a particularly attractive risk-return ratio.
The prudent credit policy led to a further increase in the reserves set aside to cope with the potential risks of slowing economic growth, although there are no signs of deterioration to date. The significant reserves set aside for Covid in previous years have been reclassified within these reserves to cope with possible macroeconomic risks. The Gross Npe Ratio and the Net Npe ratio stood respectively at 5,9% and 4%. The figures would come in respectively at 4,3% and 2,4% excluding reclassifications resulting from the application of the New Definition of Default regulations to receivables from the National Health System, which are characterised by limited credit risk and long payment terms.
The capital ratios of both the Bank and the Group remained well above the minimum required levels, with a consolidated CET1 Ratio of 15,01% (15,44% at 31 December 2021) and a consolidated Total Capital Ratio of 18,82% (19,63% at 31 December 2021). The slight decrease in capital ratios compared to December 2021 is due to the development of commercial activity and the purchase of the debt securities portfolio issued by leading European financial and corporate institutions.
The Board of Directors resolved to propose to the Shareholders’ Meeting the distribution of a balance on the dividend for FY 2022 of 0,40 Euro (gross of withholding taxes) for each of the Banca Ifis shares issued and outstanding (and therefore excluding treasury shares held by the Bank). In November 2022, an interim dividend of 1 Euro per share had already been distributed. The total 2022 dividend (interim payment and balance) thus amounts to 1,40 Euro per share. The 2022 dividend balance, if approved by the Shareholders’ Meeting, will be paid with ex-dividend no. 27 dated 22 May 2023, record date of 23 May 2023 and payment date of 24 May 2023.
