Half Year 2024 illimity Bank SpA Earnings Call Transcript
Key Points
- Illimity Bank SpA (FRA:53D) reported a first-half net profit of EUR23 million, marking a 43% increase year on year, excluding extraordinary revenue from the previous year.
- The bank's corporate and investment banking pretax profit rose by 26% quarter on quarter and 35% year on year.
- Specialized credit business origination increased by 79% from the previous quarter, indicating strong growth potential.
- The bank maintained a robust capital and liquidity position with a Core Tier 1 ratio of 14.6% and a liquidity buffer of EUR900 million.
- Asset quality improved significantly, with the gross NPE ratio, excluding public guarantees, more than halving to 0.6%.
- Net interest income slightly decreased quarter on quarter due to the exit from the traditional NPE portfolio business.
- The bank faced a EUR7 million deposit guarantee scheme contribution, impacting net profit.
- Operating costs, although starting to decline, still require further reductions, particularly in due diligence and servicing costs.
- The cost of risk was higher than expected, primarily due to the disposal of two non-state guaranteed positions.
- The profitability of Quimmo, the bank's proptech initiative, is still affected by the reduction in national bankruptcy figures.
Good morning. This is the Chorus Call conference operator. Welcome and thank you for joining the illimity Bank first-half 2024 results conference call. (Operator Instruction)
At this time, I would like to turn the conference over to Mr. Corrado Passera, CEO of illimity Bank. Please go ahead, sir.
Thank you. Good morning, everyone. Welcome to the presentation of illimity second-quarter 2024 results. Let's start from slide 3. First half net profit, EUR23 million, up 43% year on year, excluding last year's extraordinary revenue.
Q2 net profit EUR12.2 million, up 13% quarter on quarter. Without the anticipated payment of the deposit guarantee scheme contribution, our net profit would have been EUR16.8 million, a 56% increase. Corporate and investment banking pretax profit, up 26% quarter on quarter and 35% year on year.
Specialized credit, business origination up 79% from the previous quarter. Capital and liquidity, strong figures. Core Tier 1 ratio is at
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