Banca Ifis S.p.a. · MIL:IF
Banca Ifis — FY2024 Earnings Presentation
51 slides from Banca Ifis's earnings presentation, Feb 10, 2025
Slide 1: 2024 results
2024 results 10 February 2025
Slide 2: Index
Index 1. 2024 and 4Q24 results 2. Appendices 2.1 Segment results 2.2 Consolidated financial data 2.3 Company overview 2
Slide 3: 2024 and 4Q24 results
aA ~ <,> Banca lfis 1 2024 and 4Q24 results
Slide 4: 2024 and 4Q24 results
2024 and 4Q24 results 1 4Q24 net income of €35mln, FY24 net income of €162mln, slightly up YoY despite a more challenging macroeconomic environment • 1H24 results very strong benefiting from a benign macroeconomic environment, with high interest rates and almost no asset quality deterioration, and t
Slide 5: Business plan 2022-2024 delivered
Business plan 2022-2024 delivered Banca Ifis’s track record in reliable execution and value creation confirmed by the successful completion of the 2022-24 Business Plan •1 Sustainable and recurrent profitability driven by core business: net profits have been above target in every year of the plan •2
Slide 6: Financial results exceed Business Plan targets
Financial results exceed Business Plan targets 2022-24 cumulated net income - €mln 2022-24 cumulated dividends - €mln ~463 ~295 ~ +11% vs. ~ +47% vs. B. plan B. plan ~416 ~200 2022-24 2022-24 2022-24 2022-24 Business Actual Business Actual Plan Plan 2023 and 2024 payout ratio 2024 Q4 CET1 16.4% ~70%
Slide 7: Digitalization and innovation in Commercial Banking
Digitalization and innovation in Commercial Banking RISK & CREDIT ONBOARDING ASSESSMENT CLIENT ORIGINATION DEVELOPMENT Multi-channel lead origination Fully digital end-to-end sales Digital credit risk assessment Digital platform to serve paperless process and decisioning for all Bank’s all customer
Slide 8: 2024 Q4 net revenues
2024 Q4 net revenues Quarterly Revenues • Net revenues in 4Q24 at € 167mln (-13% YoY). Net revenues in -13% YoY FY24 at €699 (stable YoY) • 4Q24 net revenues impacted by rate scenario and stickiness of cost of funding partially offset by marked commercial effectiveness QoQ both in Commercial Banking
Slide 9: 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 year: -0.50% decrease in reference interest rate, €mln 1• Increased duration of overall proprietary bond portfolio from 2.3Y in Dec 23 to 3.8Y in Dec 24 11-13 6-8 2• Increa
Slide 10: Commercial activity focused on profitability
Commercial activity focused on profitability Factoring turnover – No New leasing equipment and New leasing automotive Pharma (€bn) technology (€mln) (€mln) -4% YoY +5% YoY +6% YoY Market -5% Market +6% Market -9% 125 131 87 91 3.6 3.3 3.4 61 69 4Q23 3Q24 4Q24 4Q23 3Q24 4Q24 4Q23 3Q24 4Q24 • Factorin
Slide 11: Npl portfolio performing as expected after Q3 seasonality
Npl portfolio performing as expected after Q3 seasonality* Quarterly cash collection (€mln) Revenues from judicial and extrajudicial recovery** (€mln) Including Revalea 113 97 106 95 62 82 • Starting early 2024, Banca Ifis Excluding 102 83 94 89 53 74 concentrated on Revalea purchase Revalea and int
Slide 12: Total quarterly costs down YoY through efficiency
Total quarterly costs down YoY through efficiency Operating 112 94 107 costs Other operating costs: +€7mln QoQ mainly due to: • +€2mln in info-providers reflecting seasonality Exposed to Inflation 43 36 • +€2,5mln in advisory costs 29 • +€4mln in costs of IT, digitalization and ESG projects Revenues
Slide 13: Increasing coverage on specific exposures in certain sectors
Increasing coverage on specific exposures in certain sectors Loan loss provisions* • Coverage ratio of Npe further improved Coverage 2Q24 3Q24 4Q24 13 Bad loans 78% 73% 73% 9 UTP 45% 43% 45% Past due 7% 12% 11% 3Q24 4Q24 Total 45% 46% 48% Gross 5.7% Gross • The QoQ change in asset quality ratios is
Slide 14: 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: 0.7% Coverage Stage 2: 4.6% 89 83 91% 92% 91% 91% 92% 91% 91% 91% 91% 90% 90% 91% 78 79 77 76 76 75 75 75 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1
Slide 15: Sound capital ratios
Sound capital ratios CET1 actual of 16.1% as of 31 Dec 24, calculated Total 18.65% (0.54)% 18.11% including FY net income and dividend capital Key items of CET1 evolution in 4Q24 CET1 16.43% (0.33)% 16.10% • -9bps mainly due to the increase in deduction in intangible assets (-6bps) and decrease in o
Slide 16: Expectations for 2025
Expectations for 2025 Ready to face the 2025 macroeconomic environment in Italy: • Moderate (ST) loan demand as corporates have comfortable LT funding and the economy is not accelerating o1 Banca Ifis: focused on profitability and successfully maintained average spreads compared to previous year, wh
Slide 17: Quarterly results
Quarterly results Reclassified Consolidated Income Statement - (€ 3Q24 4Q24 FY23 FY24 mln) Net interest income 117.0 128.1 566.2 532.5 1 Main items in 2024 other revenues: Net commission income 22.7 22.2 98.2 91.8 • €35mln income from the proprietary Trading and other revenues 17.6 17.0 40.2 1 74.9
Slide 18: Appendices
aA ~ <,> Banca lfis y ) Appendices
Slide 19: Index 2.1 Segment results
Index Bancalfis 2.1 Segment results 19
Slide 20: 4Q24 Results: P&L break-down by business unit
4Q24 Results: P&L break-down by business unit Commercial & Corporate banking Tot. 1 Breakdown of customer loans in Corp. Banking Commercial & Non core & Data in € mln Npl Factoring Leasing Consolidated Non Core & G&S & Lending Corporate G&S banking Net interest income 74 24 13 19 56 (2) 128 o G&S: i
Slide 21: Factoring
Factoring Turnover - €bn • Banca Ifis has strong focus on profitability: in 4Q24 factoring average spread at 3.5% (on top of base rate*) 3.4 3.6 3.5 3.4 • Net revenues** / average customer loans at 3.0 3.3 3.0 3.3 6.0%. In December there was a strong demand for factoring driven by seasonality and ou
Slide 22: Factoring – Italian business
Factoring – Italian business* Market share - 2023 Loans and revenues breakdown 23% 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 23: Leasing
Leasing New business - €mln 1 1• The tax incentives provided strong 155 164 142 211 150 169 130 223 acceleration for the leasing market in 4Q24 o Equipment and technology: evidence of 39 delays in SME capex decisions 37 29 27 28 24 87 31 54 22 93 o Automotive: Banca Ifis’s strategy (i) 50 56 38 54 4
Slide 24: Npl Business: portfolio evolution
Npl Business*: portfolio evolution Npl portfolio evolution (excluding Revalea) Key numbers* • 1.5mln tickets, #1.0mln borrowers NBV** 1,344 1,319 €mln • Extensive portfolio diversification by location, type and age of borrower GBV €bn 17.3 0.4 (2.0) 15.6 Npls acquired in 4Q24: 0.4bn GBV • Following
Slide 25: Npl Business: ERC
Npl Business*: ERC ERC assumptions ERC: €2.4bn (excludes Revalea) • ERC based on proprietary statistical models built using internal historical data series and homogeneous clusters of borrowers 1.1 2.4 o Type of borrower, location, age, amount due, employment status 1.3 2.5 o Time frame of recovery
Slide 26: Npl Business: GBV and cash recovery
Npl Business*: GBV and cash recovery Judicial recovery Non judicial recovery – Voluntary plans Judicial recovery (€ mln) GBV % GBV, data in €mln To be processed 525 528 522 Frozen 1,701 26% 517 510 510 Court injunctions [“precetto”] and foreclosures 1,293 19% 476 475 Order of assignments 871 13% Sec
Slide 27: 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 (limited other portfolio acquisitions). In 4Q24, Revalea contributed ca. €8mln** in revenues and ca. €12mln in cash collection, bringing total collec
Slide 28: Npl Business: GBV and NBV evolution
Npl Business*: GBV and NBV evolution GBV - €mln 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Waiting for workout - Positions at cost 1,096 1,149 286 155 126 254 257 428 Extrajudicial positions 14,196 13,510 13,558 12,850 12,838 11,561 10,575 8,515 - Ongoing attempt at recovery 13,720 13,035 13,041 12,326
Slide 29: Npl Business: P&L and cash evolution
Npl Business*: P&L and cash evolution P&L - €mln 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Waiting for workout - Positions at cost Extrajudicial positions 27 26 23 37 21 20 13 35 - Ongoing attempt at recovery (1) 0 0 3 (2) (2) (3) (7) - Non-judicial payment plans 28 26 23 34 23 22 17 41 Judicial posit
Slide 30: 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% 37.7% > 100k 27% from 5k to South & Island Center 20k 29% 2
Slide 31: Index 2.2 Consolidated financial data
Index 2.2 Consolidated financial data 31
Slide 32: Customer loans
Customer loans Customer loans (€ mln) – Includes Revalea 10,464 10,090 10,810 • 4Q24 customer loans at €10,810, +€720mln QoQ mainly due to normal seasonality in factoring 2,130 2,303 2,166 (€539mln QoQ) • Banca Ifis maintained disciplined in pricing and 2,427 2,473 underwriting 2,472 1,571 1,613 6,7
Slide 33: Asset quality – 4Q24
Asset quality – 4Q24 Asset quality (€ mln) • The QoQ change in asset quality ratios is mainly due to Consolidated ratios 2Q24 3Q24 4Q24 lower stocking of performing loans (factoring seasonality). Gross Npe* 5.4% 5.7% 5.4% Total Gross and Net Npes are roughly stable QoQ Net Npe* 3.0% 3.2% 2.9% • Asse
Slide 34: Funding
Funding Funding (€mln) 11,227 10,742 11,598 • Customer deposits +3% QoQ 1,043 913 861 400 431 • Securitizations: €1,377mln of factoring and leasing; €269 1,598 1,565 1,645 mln of Banca Credifarma securitizations 1,510 1,515 1,507 • €400mln MRO to finance the usual year-end factoring seasonality • €4
Slide 35: Interest income and cost of funding evolution
Interest income and cost of funding evolution Interest income (excluding Npl Business, Non Core and Treasury) and interest expenses FY23 FY24 Delta Average interest income* 5.45% 6.05% 6.2% 6.2% 6.2% 5.7% Average +0.60% Cost of funding** 5.9% Average 5.7% interest interest 5.3% 2.3% income income 4.
Slide 36: Reclassified consolidated operating costs
Reclassified consolidated operating costs* Operating costs (€mln) 4Q24 operating costs +€14mln circa QoQ 112 104 107 102 94 • +€2mln QoQ due to the growth in group employees and in variable compensation • +€12mln QoQ in other operating costs: o + €7mln in other administrative expenses (+€4mln IT, di
Slide 37: Proprietary portfolio: resilient contribution to P&L
Proprietary portfolio: resilient contribution to P&L • Long term «fundamental» positioning strongly focused on investment grade bond area / high dividend 4Q24 Proprietary portfolio revenues at stocks coupled with opportunistic trading approach around €23.9mln: • Mid duration level • 4Q24: €17.9mln i
Slide 38: Index 2.3 Company overview
Index 2.3 Company overview 38
Slide 39: 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 40: 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 41: 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 42: FY24 Results: P&L break-down by business unit
FY24 Results: P&L break-down by business unit Commercial & Corporate banking Tot. Data in € mln Npl Factoring Leasing Corp. Banking Commercial & Non core & Consolidated 1 Breakdown of customer loans in & Lending Corporate G&S banking Non Core & G&S Net interest income 280 115 51 74 239 13 533 Net co
Slide 43: 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 160 162
Slide 44: Total assets and liabilities
Total assets and liabilities Assets (€mln) Liabilities (€mln) 13,046 13,826 13,046 13,826 Total Funding 655 480 648 213 Other and 524 Other liabilities 227 505 1,748 684 Tangible/Intangible 1,643 1,780 assets 1,043 Shareholders 1,397 861 400 Equity Tax Assets - 1,565 1,645 Other funding 1,515 1,507
Slide 45: 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 2.9 80% state guaranteed >80% in rating classes 1-5 1.6 Av
Slide 46: 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 2.9 0.22* €360k* Leasing 1.4 2.0 €50k auto €80k equipment Rental 0.2 1.3 €6k Medium term lending 0.7 2.7 €210k Loans to pharmacies 0.8 7.5 €400k Structured finance 0.8 4.0 €12mln Npls 1.5 4.0 €
Slide 47: 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 6,801 7,002 Corporate 24% Retail 1,137 1,494 Other deposits** 76% 733 735 Corporate deposits Rendimax deposits: 84% protected by FITD 537 487 German retail deposits Above €100K 16% Below €10
Slide 48: 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 49: 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 50: MSCI upgraded Banca Ifis's ESG rating to AA
MSCI upgraded Banca Ifis’s ESG rating to AA MSCI has upgraded Banca Ifis’s ESG rating to AA on 19 April 2024 • Banca Ifis’s Overall Industry Adjusted Score has been increased from 7.1 points to 8.2 points since the last rating action Industry Banca Ifis Dimensions Weight average Score Carbon Emissio
Slide 51: 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,