(Alliance News) - The board of illimity Bank Spa on Thursday evening approved the group's results as of Dec. 31, 2023, a year that ended with a net profit at EUR104.4 million, a 39 percent increase over the previous year. The figure represents a record for the group since its founding.

Revenues are up to EUR358.9 million, up 11% year-on-year, benefiting from both the increase in net interest income with 19% supported by volume growth, and the 25% growth in net fees, driven by business origination and the increase in third-party servicing activity.

Total acceptances, characterized by a broad diversification of funding sources, amounted to EUR6 billion, up 15% year-on-year, driven in particular by the retail component composed increasingly of high-end customers.

In particular, retail funding stands at EUR3.9 billion, up EUR1.3 billion since the beginning of the year - or 53% year-on-year - supported by the important contribution of the illimitybank.com platform with EUR2.8 billion.

Very strong capital position with a phased-in CET 1 ratio at 14.7 percent, which has a large buffer against the new SREP 2024 requirement at 9.6 percent.

The total capital ratio stands at 18.7 percent.

With regard to credit quality, gross organic impaired positions on illimity-originated business since inception amount to approximately EUR158.5 million, for a ratio of gross organic impaired loans to total gross organic loans of 5.0%, compared to 4.8% in Q3 2023.

Excluding state-guaranteed exposures, the NPE ratio is confirmed at 1.3% in line with the previous quarter, mostly composed of UTP exposures under active restructuring.

Corrado Passera - CEO and founder of illimity - commented, "The 2023 results mark five years since illimity's inception, during which the bank has never stopped growing despite the many 'black swans' of these years. Our assets reached EUR7.3 billion starting from a few hundred million at the beginning of 2019. From negative profitability the first year, we exceeded EUR100 million in net income in 2023, with a balance sheet characterized by high strength and a low risk profile."

"Meanwhile, we have never stopped investing in innovation, allocating a portion of our profits to various tech initiatives aimed at also generating equity resources for the development of our core business and creating one of the most innovative IT platforms on the market, which has been transformed from a cost center into a revenue and growth center."

"In light of strategic developments and a macroeconomic framework that has changed profoundly from what was assumed in the 2021-2025 plan, we expect to develop a new plan during 2024 that will also lead to an update of the 2025 targets."

illimity closed Thursday's session in the red by 1.3 percent at EUR5.07 per share.

By Maurizio Carta, Alliance News reporter

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