Banca Ifis S.p.a. · MIL:IF
Banca Ifis — Q1 2025 Earnings Presentation
46 slides from Banca Ifis's earnings presentation, May 8, 2025
Slide 1: 1Q25 results
+ Banca lIfis 1Q25 results 8 May 2025
Slide 2: Index
Index 1. 1Q25 results 2. Appendices 2.1 Segment results 2.2 Consolidated financial data 2.3 Company overview 2
Slide 3: 1Q25 results
<> Banca lfis 1 1Q25 results
Slide 4: 1Q25 results
1Q25 results 1 In 1Q25 Banca Ifis reports a net income of €47mln, driven by strong performance of Commercial Banking and of NPL businesses • In 1Q25 net revenues came in at €179mln (+7% QoQ) despite the decreasing base rates environment, operating costs at €98mln (-9% QoQ) reflecting effective cost
Slide 5: Net revenues
Net revenues Quarterly Revenues • Net revenues in 1Q25 at €179mln (-3% YoY and +7% QoQ): -3% YoY o Commercial banking revenues at €90mln (€82mln in 4Q24, €89mln in 1Q24) with commercial performance and pricing discipline partially offsetting the rates effects, and benefiting from the contribution of
Slide 6: Commercial activity focused on profitability
Commercial activity focused on profitability Factoring turnover New leasing equipment and New leasing automotive Excluding Pharma (€bn) technology (€mln) (€mln) +2% YoY -1% YoY -1% YoY Market 3% Market +12% Market +5% 131 81 91 81 3.0 3.4 3.0 69 68 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 • Fact
Slide 7: Npl portfolio: streamlining workout efficiency
Npl portfolio*: streamlining workout efficiency Quarterly cash collection (€mln) Revenues from judicial and extrajudicial recovery** (€mln) Including Revalea 112 106 83 82 101 86 • Cash collection remains extremely Excluding 98 94 73 74 solid in excess of €100mln per Revalea quarter • Starting early
Slide 8: Net interest income sensitivity to reference rates
Net interest income sensitivity to reference rates* Net interest income sensitivity to Actions taken since the beginning of the 2024: -0.50% decrease in reference interest rate, €mln 1• Increased duration of overall proprietary bond portfolio from 2.3Y in Dec 23 to 4.2Y in March 25 11-13 6-8 2• Incr
Slide 9: Interest income and cost of funding evolution
Interest income and cost of funding evolution Commercial banking interest income (excluding Npl Business, Non Core and Treasury) and interest expenses Average gross interest income* Cost of funding Base rate, Euribor 3M 6.2% 5.7% 5.3% • Net effect < -10 bps • Aggregate interest income QoQ: .ca -40bp
Slide 10: Total quarterly costs down through significant efficiency effort
Total quarterly costs down through significant efficiency effort Operating Other operating costs: -€6mln QoQ due to seasonality and 102 107 98 completion of some projects of the 2022-24 Business Plan costs • -€4mln QoQ due to lower consultancy and other suppliers costs Exposed to • -€2mln QoQ projec
Slide 11: Loan loss provisions stable at historical low levels
Loan loss provisions stable at historical low levels Loan loss provisions* Coverage 3Q24 4Q24 1Q25 Bad loans 73% 73% 70% UTP 43% 45% 44% 9 8 Past due 12% 11% 12% Total 46% 48% 48% 4Q24 1Q25 Gross 5.4% Gross • The QoQ change in asset quality ratios is mainly due to lower 6.1% performing loans (factor
Slide 12: No signs of widespread macro credit risks materializing in commercial business
No signs of widespread macro credit risks materializing in Banca Ifis’s commercial business Payment days in factoring Stage 1 and stage 2 loans* Coverage Stage 1: 0.9% Coverage Stage 2: 2.7% 92% 91% 91% 91% 91% 90% 90% 91% 93% 78 79 77 76 76 75 75 75 75 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 8
Slide 13: MSCI upgraded Banca Ifis's ESG rating to AAA
MSCI upgraded Banca Ifis’s ESG rating to AAA Strong ESG commitment reflected in the ESG rating: Banca Ifis’s upgraded to AAA from AA on 29 March 2025 • Banca Ifis’s Overall Industry Adjusted Score was 7.0 compared to industry average of 5.1 Industry Banca Ifis Dimensions Weight average Score Financi
Slide 14: Sound and increasing capital ratios
Sound and increasing capital ratios Total 18.11% +0.32% 18.43% CET1 actual of 16.55% as of 31 Mar 25, excluding 1Q25 capital net income and dividends Key items of CET1 evolution in 1Q25 CET1 16.10% +0.45% 16.55% • Rwa effects: +43bps due to -€253mln RWA reduction 0.43% 0.07% (0.05)% o Decrease in cr
Slide 15: Quarterly results
Quarterly results Reclassified Consolidated Income Statement - (€ mln) 1Q24 4Q24 1Q25 1 Main items in 1Q25 other revenues Net interest income 140.8 128.1 130.8 • €12mln structured finance / equity Net commission income 23.1 22.2 20.5 investment Trading and other revenues 21.4 17.0 1 27.5 Total Reven
Slide 16: Appendices
<> Banca lfis y ) Appendices
Slide 17: 2.1 Segment results
Index Bancalfis 2.1 Segment results 17
Slide 18: 1Q25 Results: P&L break-down by business unit
1Q25 Results: P&L break-down by business unit Commercial & Corporate banking Corp. Banking Tot. Commercial Non core & 1 Breakdown of customer loans Data in € mln Npl Factoring Leasing & Corporate Consolidated & Lending G&S in Non Core & G&S banking Net interest income 77 27 13 16 56 (2) 131 Net comm
Slide 19: Factoring
Factoring Turnover - €bn • Banca Ifis has strong focus on profitability: in 1Q25 factoring average spread at 3.56% (on top of base rate) 3.0 3.5 3.3 3.4 3.0 • Net revenues** / average customer loans at 6.0%. In December and January there was a strong demand for factoring driven by seasonality and ou
Slide 20: Factoring – Italian business
Factoring – Italian business* Market share - 2024 Loans and revenues breakdown 22% 6% 3% 37% 43% Other Small [ < 10 mln] Medium [ < 50 mln] 23% 26% Large [ > 50 mln] 5% 34% 29% Active clients Turnover Average loans Revenues 2024 • Banca Ifis is market leader in terms of number of • Medium/large corp
Slide 21: Leasing
Leasing New business - €mln 1 150 169 130 223 149 1• In 1Q25 new business remained strong (the tax incentives provided strong seasonality in the leasing market in 4Q24): 39 • Automotive: Banca Ifis’s strategy (i) 27 premium/luxury segments (not volumes) (ii) 31 93 26 38 54 22 42 price/margin discipl
Slide 22: Npl Business: portfolio evolution
Npl Business*: portfolio evolution Npl portfolio evolution (including Revalea) Key numbers* • 1.9mln tickets, #1.3mln borrowers NBV** 1,507 1,507 €mln • Extensive portfolio diversification by location, type and age of borrower GBV €bn*** 21.6 0.1 (1.7) 20.1 Npls acquired in 1Q25: €0.1bn GBV • Starti
Slide 23: Npl Business: ERC
Npl Business*: ERC ERC assumptions ERC: €2.8bn (including Revalea) • ERC based on proprietary statistical models built using internal historical data series and homogeneous clusters of borrowers 1.4 2.8 o Type of borrower, location, age, amount due, employment status 1.4 2.5 o Time frame of recovery
Slide 24: Npl Business: GBV and cash recovery
Npl Business*: GBV and cash recovery Judicial recovery Non judicial recovery – Voluntary plans GBV, data in €mln 1Q25 data Judicial recovery (€ mln) GBV % To be processed include Frozen 2,577 29% 603 Revalea Court injunctions [“precetto”] and foreclosures 1,311 15% 528 522 510 510 Order of assignmen
Slide 25: Npl Business: cash recovery and P&L contribution
Npl Business*: cash recovery and P&L contribution 1 Cash collection • Starting early 2024, Banca Ifis concentrated on Revalea purchase and integration • Starting from 1Q25 cash collection includes Revalea (2024 data do not include Revalea). In 4Q24, Revalea contributed ca. €8mln** in revenues and ca
Slide 26: Npl Business: GBV and NBV evolution
Npl Business*: GBV and NBV evolution GBV - €mln 1Q24 2Q24 3Q24 4Q24 1Q25 Waiting for workout - Positions at cost 126 254 257 428 324 Extrajudicial positions 12,838 11,561 10,575 8,515 10,862 - Ongoing attempt at recovery 12,310 11,039 10,065 8,005 10,259 - Non-judicial payment plans 528 522 510 510
Slide 27: Npl Business: P&L and cash evolution
Npl Business*: P&L and cash evolution P&L - €mln 1Q24 2Q24 3Q24 4Q24 1Q25 Waiting for workout - Positions at cost Extrajudicial positions 21 20 13 35 31 - Ongoing attempt at recovery (2) (2) (3) (7) (1) - Non-judicial payment plans 23 22 17 41 32 Judicial positions 52 60 40 39 55 - Freezed** - - - -
Slide 28: Npl Business: portfolio diversification
Npl Business*: portfolio diversification Breakdown of GBV by type Breakdown of GBV by borrower age Other Consumer 18-39 4% 28% 6% 40-49 >60 20% 43% Banking 50-59 68% 31% Breakdown of GBV by ticket size Breakdown of GBV by region 5k North 9% 38.4% > 100k 27% from 5k to South & Island Center 20k 28% 2
Slide 29: 2.2 Consolidated financial data
Index 2.2 Consolidated financial data 29
Slide 30: Customer loans
Customer loans Customer loans (€ mln) – Includes Revalea 10,090 10,810 10,552 • 1Q25 customer loans at €10,552mln, -€258mln QoQ mainly due to normal factoring seasonality (-€253mln 2,303 2,299 2,166 QoQ) • Banca Ifis maintained disciplined in pricing and 2,473 2,482 underwriting 2,472 1,613 1,603 1,
Slide 31: Asset quality – 1Q25
Asset quality – 1Q25 Asset quality (€ mln) • The QoQ change in asset quality ratios is mainly due to Consolidated ratios 3Q24 4Q24 1Q25 lower performing loans reflecting factoring seasonality. Gross Npe* 5.7% 5.4% 6.1% Total Gross and Net Npes are roughly stable QoQ Net Npe* 3.2% 2.9% 3.3% • Asset q
Slide 32: Funding
Funding Funding (€mln) 10,742 11,598 11,231 • Customer deposits -€629mln QoQ mainly following the 1,043 400 1,491 reduction of repurchase agreements (-€358mln) and 861 300 retail deposits (-€221mln) 1,565 1,645 1,577 • Securitizations: €1,331mln of factoring and leasing; 1,515 1,507 1,490 €247mln of
Slide 33: Reclassified consolidated operating costs
Reclassified consolidated operating costs* Operating costs (€mln) 1Q25 operating costs (-€10mln QoQ) 102 104 94 107 98 • -€0.4mln QoQ in personnel expenses due to variable compensation accruals • -€9.3mln QoQ in other operating costs mainly due to seasonality and completion of some projects of the 2
Slide 34: Proprietary portfolio: resilient contribution to P&L
Proprietary portfolio: resilient contribution to P&L • Mid duration level The rise in core yields in 1Q25 has been taken • Low volatility accounting treatment: FVTPL < 1% as a good opportunity to add French OATs and German Bunds to the Proprietary • Low RWA density and relevant funding eligibility p
Slide 35: 2.3 Company overview
Index 2.3 Company overview 35
Slide 36: Banca Ifis: a long-term track record of sustainable growth
Banca Ifis: a long-term track record of sustainable growth Banca Ifis: a long-term track record of sustainable growth Leadership in small-ticket Acquisition in specialty finance Entry in small ticket profitable segments Specialized Npl factoring player 2022-24 2011-15 2016-21 1983-2010 Shareholder I
Slide 37: Stable shareholders and governance
Stable shareholders and governance • La Scogliera provides, as main shareholder, continuity and stability to Banca Ifis La Scogliera (Fürstenberg Family) • Strategic ESG focus both in specific positioning initiatives and in core operations (AA MSCI rating) o Long term value creation with a strategy
Slide 38: A Family Bank challenger, but with years track record
A Family Bank challenger, but with 40 years track record Commercial and Corporate Banking Npl ► Specialised player for SMEs, with a broad range of credit ► Investor and servicer specialized in small ticket NPEs, products (factoring, lending, leasing, and rental) with a distinctive vertically integra
Slide 39: Consistent core net income growth with a low risk profile
Consistent “core net income” growth, driven by our core capabilities, with a low risk profile Net income target, €mln Actual Target Banca Ifis’ risk profile Business Plan targets Net 118 137 160 • Structurally protected liquidity income, €mln position (maturities) • Marginal contribution of extraord
Slide 40: Total assets and liabilities
Total assets and liabilities Assets (€mln) Liabilities (€mln) 13,826 13,579 13,826 13,579 Total Funding 655 480 548 213 679 Other liabilities 214 Other and 505 386 1,748 Tangible/Intangible 1,801 1,643 1,749 assets 1,043 Shareholders 400 1,491 Equity Tax Assets 1,645 300 Other funding 1,577 1,507 Ca
Slide 41: Banca Ifis's superior risk-return trade-off (1/3)
Banca Ifis’s superior risk-return trade-off (1/3) Data in Turnover 4 times per year; client/debtor double risk € bn assessment; rapidly adapting sector exposure Secured against the pharmacies in a regulated sector, protected from competitors 2.6 80% state guaranteed >80% in rating classes 1-5 1.6 Av
Slide 42: Banca Ifis's superior risk-return trade-off (2/3)
Banca Ifis’s superior risk-return trade-off (2/3) € bn Average Duration in Y Average ticket size Factoring 2.6 0.21* €335k* Leasing 1.4 1.9 €50k auto €60k equipment Rental 0.2 1.4 €5k Medium term lending 0.7 2.6 €200k Loans to pharmacies 0.7 7.5 €400k Structured finance 0.8 4.0 €12mln Npls 1.5 4.0 €
Slide 43: Banca Ifis's superior risk-return trade-off (3/3)
Banca Ifis’s superior risk-return trade-off (3/3)* Customer deposit breakdown Very limited corporate deposits 7,002 6,372 Corporate 21% Retail 1,494 Other deposits** 79% 1,168 735 650 Corporate deposits Rendimax deposits: 83% protected by FITD 487 323 German retail deposits Above €100K 17% Below €10
Slide 44: Our ESG achievements
Our ESG achievements Financed Reporting Emissions and transparency Approximately 80% of exposures and financed The Group published its first Report aligned with emissions considered by Banca Ifis NZBA the recommendations of the Task force on targets, focused on Automotive sector Climate-related Fina
Slide 45: Our ESG goals
Our ESG goals Environmental Social Governance Net-Zero Banking Alliance1 Social Impact Lab Governance ESG State and deliver on carbon objectives, as Manage projects to foster diversity and Further strengthen inclusion and diversity the first Italian bank to join the Net-Zero social inclusion in a de
Slide 46: Disclaimer
Disclaimer • This Presentation may contain written and oral “forward-looking statements”, which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations,