The Growth in SME Loans and illimity's Profits Continues in the Third Quarter of 2021
The Growth in SME Loans and illimity's Profits Continues in
the Third Quarter of 2021
via InvestorWire -- Chaired by Rosalba Casiraghi, the Board of
Directors of illimity Bank S.p.A. (“illimity
”) yesterday approved the illimity Group’s
results at 30 September 2021.
illimity again reports solid financial
and operating performance in the third quarter of 2021:
net profit of 18.8 million euro (14.9 million euro
in the second quarter of 2021, +26% q/q, and 9.5 million euro in
the third quarter of 2020, +98% y/y), taking the net result
for the first nine months of the year to 46.2 million
euro, up by 90% over the corresponding period in 2020.
ROE3 closed at over 9% for the first nine
months of 2021 on an annualised basis.
All the new strategic initiatives are
running to schedule and the trajectory towards the
short and medium-long term targets set in the 2021-25
Strategic Plan presented on 22 June is therefore confirmed.
Revenues in the third quarter rose by 49%
over the third quarter of 2020, driven by the Group’s
recurring activities and the development of its new initiatives.
The strong performance accompanied the gradual balancing of
the revenue mix, with the component of income other than
net interest income representing around 50% of the total in the
first nine months of 2021.
Standing out among revenues is the rise in fees and
commissions, which in the third quarter rose by
18% q/q to reach 10.3 million euro –
three times the corresponding figure for the previous year – driven
by the robust generation of new business volumes in the Growth
Credit segment, including Factoring, the solid results of neprix
and the rising contribution of the new initiatives.
Revenues for the period include the first income of 5
million euro arising from the licence agreement
entered into with the ION Group for the use of the
information systems developed by illimity (part of the 90 million
euro planned to be received over five years).
The Distressed Credit Division’s performance in
managing purchased loans proved once again to be
excellent in this quarter, with an extremely good
progression in gross cash flows, generating ca. 5.3 million euro of
profit from closed positions and other income of ca. 7.2 million
euro; overall, the Division produced revenues of 146.1 million euro
in the first nine months of 2021.
Despite the fact that the Bank continued to invest in new
initiatives which have yet to produce revenues, operating
costs in the third quarter fell by around
9% over the previous quarter due to seasonal savings on
certain staff cost items. This trend, together with the robust
performance of revenues, led to a further improvement in
the Cost income ratio, which reached 56% in the
quarter and 60% in the first nine months of
2021, a clear-cut improvement over the same period of the
previous year (76% in 9M20).
As a result of the above dynamics, illimity’s operating
profit rose to 77.5 million euro in the first nine
months of 2021, nearly three
times the figure of 28.0 million euro reported for the same period
The Bank’s risk profile strengthened further,
remaining at the top levels of the system: the CET1 Ratio
rose to 20.1% at the end of September 2021 (20.6%
pro-forma with the inclusion of the special shares) due to the
completion of the capital increase reserved to the ION Group and
the profit of the quarter just ended; the ratio between
gross doubtful organic loans and total gross organic loans fell to
2.5%; excluding the loan portfolio of the former Banca
Interprovinciale, this ratio stands at around
0.5%. Liquidity continued to be abundant
at over 1.1 billion euro at the end of September
2021, consistent with the expectation of an acceleration in
opportunities in the distressed credit market in the final part of
Lastly, the Bank continued developing the new initiatives
outlined in the Strategic Plan in line with the timetable.
In September, HYPE launched new services and
products on the market, enhancing its offer, with the aim of giving
a further thrust to the already robust growth performance of the
company, which can currently count on 1.5 million customers,
confirming its leadership position among the fintechs that operate
in Italy. The development of B-ILTY, the new
highly digital direct bank designed for small corporates, ready for
launching in the first quarter of 2022, is running to schedule. And
in conclusion, the operating activities continued for enabling
neprix Sales – the remarketing entity already a leader among
platforms for the sale of real estate and capital goods arising
from legal procedures – to enter the real estate free market by way
of an innovative and digital offer model.
CEO and Founder of
illimity, commented: “The world served by
illimity, that of the small corporates, offers significant
opportunities. A growing number of corporates present ambitious
projects to enhance their potential and many are on solid paths
towards a turnaround. The increase in distressed corporate credit
will also accelerate once the banking moratorium ends, and the role
of banks such as illimity specialising in this market segment will
prove itself fundamental.
The decisions and technology investments we have
made in these years will enable us to provide a service model that
has shown itself to be competitive in terms of both expertise and
efficiency. B-ILTY, the direct bank for small corporates, which
will be launched on the market in the first part of the year 2022,
will complete the construction of the illimity model and be
completely unique, and not only at an Italian level.
The results of the first nine months of 2021 and
in particular the third quarter confirm that the path that illimity
has taken, has only just begun to bear its fruits for our customers
and our shareholders.”
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For further information:
Investor RelationsSilvia Benzi:
+39.349.7846537 - +44.7741.464948 - firstname.lastname@example.org
Press & Communication illimity
Isabella Falautano, Francesca D’Amico
Sara Balzarotti, Ad Hoc Communication Advisors
Wire Service Contact:InvestorWire
(IW)Los Angeles, Californiawww.InvestorWire.com212.418.1217
1 Purchase of tax credits deriving from energy
efficiency interventions, reduction of seismic risk and recovery of
the building heritage provided for by the Relaunch Decree
(so-called 110% Superbonus and other building bonuses).
2 Including special shares for 14.4 million
3 ROE – Return On Equity: calculated as the
ratio between annualised net profit for the period and average
equity for the nine months (1/1-30/9/2021).
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