Illimity: revenue rises by +38% to 10.8 million, revenues develop to 74.4 million | EUROtoday

Listen to the audio model of the article

Illimity Bank closed the primary quarter of 2024 with a internet revenue of 10.8 million euros, a rise of 38% in comparison with the identical interval of 2023. Revenues amounted to 74.4 million, a rise in comparison with the primary quarter 2023 (+3%) and barely down in comparison with the earlier quarter (77 million). Total collections amounted to six.3 billion euros, up 27% in comparison with a 12 months in the past, pushed specifically by the retail part (3.9 billion euros) and up 5% in comparison with the tip of 2023. The capital place is “characterised by high solidity”, with a phased-in CET 1 ratio of 14.9%.

«In the primary quarter of this 12 months we considerably accomplished the technique of decreasing direct publicity in NPE portfolios – explains the CEO and founder, Corrado Passera – Despite this transformation in technique we managed to report an rising revenue thanks additionally to the expansion of our enterprise areas devoted to the company world. In truth, loans to SMEs have grown considerably in comparison with final 12 months, with a mixture extra targeted on performing companies, particular conditions and restructuring, because of the excessive specialization gained by illimity lately. In the approaching quarters we count on this progress pattern to proceed, supported by a strong pipeline and our stable capital and liquidity place.”

The Corporate & investment Banking sector, represented by the Corporate Banking and Investment banking divisions, recorded growing profitability, with a pre-tax profit of 23.1 million (+13%), driven by revenues increasing by 23%. As of March 31, 2024, the bank's assets amounted to 7.6 billion euros, an increase of 24% compared to the same period of the previous year (+4% compared to the end of 2023), while net loans to customers and investments exceed 4 billion euros, up 4% compared to 31 March 2023 and stable compared to the previous quarter. It is believed that Illimity is “effectively positioned to face the present challenges of the macroeconomic framework” we read in a note, thanks to a “stable capital and liquidity place that permits it to help the longer term progress of the enterprise”. With regards to the expected management evolution, revenues are expected to be characterized by an interest margin which should “step by step profit from a price of funding anticipated to stabilize and from the rise in credit score volumes”. Net commissions are expected to increase, given the greater volumes of new business. Operating costs are expected to decline, and operating leverage is expected to improve. Credit quality will continue to be characterized by a high presence of loans to customers backed by public guarantees, while future profitability “will be capable of profit from the potential valorisation of the group's belongings”.

«Our tech initiatives have made further progress this quarter – adds Passera – In particular, HYPE has achieved a quarterly profit for the first time, with a growing number of customers and transactions, while b-ilty is getting ever closer to breakeven, with growing volumes driven by strong business origination. In the future, these initiatives could represent further support for the growth of illimity's profitability”.