illimity: in the first quarter of 2024 net profit rises to 10.8 million euros. Revenues equal to 74.4 million euros (+3%)
The Board of Directors of illimity Bankwhich met yesterday under the chairmanship of Rosalba Casiraghiapproved the results of illimity group to March 31, 2024. Corrado PasseraCEO and Founder of illimitycommented: “In the first quarter of this year we substantially completed the strategy of reducing direct exposure in NPE portfolios. Despite this change in strategy, we managed to record an improving profit thanks also to the growth of our business areas dedicated to the corporate world“.
“In fact, loans to SMEs have grown significantly compared to last year, with a mix more focused on performing businesses, special situations and restructuring, thanks to the high specialization gained by illimity in recent years. In the coming quarters we expect this growth trend to continue, supported by a robust pipeline and our solid capital and liquidity position. Our tech initiatives made further progress this quarter. In particular, HYPE 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”, he concluded Will pass.
illimity closed the first quarter of 2024 reporting a net profit of 10.8 million eurosincreasing by 38% y/y. Revenues equal to 74.4 million euros increasing compared to the first quarter of 2023 (+3% y/y) and slightly decreasing compared to the previous quarter (77 million euros). In particular, the interest margin decreased by 18% y/y due to the expected increase in the cost of funding and the reduction made in direct investments in NPEs. This decrease was more than compensated both by an increase in net commissions (+19% y/y), which benefited from greater business volumes and an increase in activity on behalf of ARECneprix for third parties, and by a greater contribution deriving from the segment of property finance and the activities of the Investment Banking Division. Profits from closed transactions are decreasing (-24% y/y) given the aforementioned decrease in direct investments in NPEs.
I operating costs they attest to 50.8 million euros essentially stable compared to the 50.0 million euros of the first quarter of 2023. The aggregate made up of personnel expenses and other administrative expenses, equal to 44.6 million euros, is slightly down compared to the same period last year ( -0.5% y/y). Depreciation is equal to 6.2 million euros increasing compared to 5.2 million euros in the first quarter of 2023, as a result of the IT investments made last year.
The Total collectionpresents a high diversification between various sources of funding and is equal to 6.3 billion euros, up 27% y/y, driven in particular by the retail component (3.9 billion euros) mostly deriving from the illimitybank.com platform increasingly made up of medium-high range customers. Compared to the end of 2023, total funding increased by 5% due to the increase in institutional funding, with retail funding kept stable in the face of the robust liquidity profile of the Bank which benefits from a large buffer equal to approximately 1 billion euros.
The capital position is characterized by high solidity, with a CET 1 ratio phased-in at 14.9% highlighting a large buffer (530 basis points) compared to the SREP requirement (9.60%). The tech initiatives continue their development strategy. In particular, HYPE recorded a profitable first quarter, driven by strong revenue growth with an increasing number of transactions and customers. b-ilty has essentially reached breakeven and achieved the quarter with the highest business origination since the beginning of its operations (120 million euros).
The net commissions they stand at approx 18.1 million euros, up 19% y/y, driven by increased volumes in the SME lending sector and third-party mandates in the servicing business. Other operating income amounted to 2.6 million euros, an increase compared to 1 million euros recorded in the first quarter of 2023.