Net profit of 65.6 million euros in 2021 (+111%)
in accordance with guidelines
At 10% in 2021, ROE is one of the highest in the industry
Strong growth in net customer loans and investments
(+25% on an annual basis) to reach 2.8 billion euros
Solid capital base available for growth
(CET1 at 18.8% – 19.3% Pro-Forma)
Excellent asset quality: Gross organic NPE ratio of the activity originated by
unlimited at 0.7% and loans with moratorium reduced to zero without the need to
Any material forbearance
Strong prospects for volume and profit growth in 2022
b-ilty, the first million dollar digital bargain store
Small businesses start operations today
MILAN, Italy, 11 Feb. 2022 (GLOBE NEWSWIRE) — via InvestorWire — Chaired by Rosalba Casiraghi, the board of illimity Bank SpA (“unlimited“or the”Bank”) yesterday approved the results of the illimity Group as of December 31, 2021.
illimity has fully achieved its 2021 earnings targetposting a net profit of 65.6 million euros for 2021, more than double the figure for 2020 (31.1 million euros). ROE for 2021 amounted to approx. ten%. Net profit for the fourth quarter of 2021 amounts to 19.4 million euros (from 18.8 million euros in the third quarter of 2021, +3% q/q and +187% compared to the net profit of 6.8 million euros in the fourth quarter of 2020).
In detail, the year was characterized by:
- Operating income more than doubled to 110.6 million euros for 2021 (+147% compared to an operating result of 44.8 million euros for 2020).
- Significant business growthwith loan and investment volumes of more than €1.1 billion were initiated in 2021, an increase of 24% on an annual basis. Growth in volumes was mainly driven by the Growth Credit Division, which saw an acceleration in credit and investment activity in all of its business lines, while the Distressed Credit Division maintained its positioning as an operator benchmark in the Italian market thanks to its ability to identify new investments. opportunities in profitable and highly specialized market segments. In the fourth quarter alone, the Bank generated volumes of 511 million euros (+120% q/q).
- A sharp increase in operating income to reach 271.2 million euros (+56% y/y) in 2021, increasingly diversified and balanced between net interest income and the other components of income. Operating income reached 77.8 million euros in the fourth quarter, up steadily both on a quarterly basis (+17%) and on an annual basis (+34%). The Distressed Credit Division confirms to be the largest revenue contributor, generating 73% of total revenue earned during the year.
- Visible improvement in operating leverage: the Cost income ratio fell considerably during the year to 59% compared to 74% in 2020. The Cost income ratio for the fourth quarter amounted to 62% (-11 percentage points compared to the fourth quarter 2020).
- Organic credit quality remained at excellent levels: the ratio between gross organic bad debts and total gross organic debts originated since the beginning of illimity’s operations amounts to 0.7% as of December 31, 2021 – a figure which amounts to 2.3% if including the loan portfolio of the former Banca Interprovinciale; organic cost of risk2 stands at 4 basis points for the whole of 2021.
- A solid financial base with indicators positioned at the higher levels of the system – a CET ratio of 18.8% (19.3% pro forma taking special actions into account) – and a healthy liquidity position (by around €0.7 billion) despite the significant deployment of new loans and investments during the quarter.
Additionally, 2021 has seen the foundations laid for solid profit and profitability growth also in 2022in line with the growth orientations set out in the Strategic Plan:
- we entered a partnership agreement with the ION Group. Initially focused on the user license agreement for our IT platform, we are now working to extend it to other key sectors;
- we have made further progress on our sustainable growth way, by further developing our ESG values in relations with both our customers and our employees; we joined the United Nations Global Compactthe largest corporate sustainability initiative;
- we have invested in all our activities and strengthened our presence in key markets, among which we note the following:
- unlimited RMSwhich successfully completed new closings of its first Turnaround fund;
- the SME-focused capital markets activitywho has already made a visible contribution to our results;
- the Energy desk of the Distressed Credit Division, which consolidated its presence in the market, completed the first investment-divestment cycle and obtained significant economic results;
- entry into the public procurement claims segmenta large field with limited competition and high yields;
- the strengthening of our product offering and the technological platform of ADVERTISING HYPEthe leading fintech in Italy;
- we laid the foundations for launch of two completely new, technology-based initiatives, which will bring our future profitability well above the industry average. In 2022 illimity will become even more “tech”:
- b-ilty, the first digital business store for credit and financial services developed by illimity to support the growth of SMEs. b-ilty is a fully digital banking platform, designed based on suggestions received from hundreds of small businesses and inspired by typical examples of the most widespread digital solutions in the world;
- thanks to our digital and real estate expertise, we will also launch in the coming weeks the most innovative proptech company in Italy. An evolution of the strategy of our services division which, as a leader in remarketing in the judicial real estate market, will enter the open real estate market, currently characterized by its large scale and its significant need for innovation , with a new brand and an innovative platform.
Corrado Passera, CEO and Founder of unlimitedcommented : “We ended 2021 with great satisfaction and we start 2022 with a lot of confidence.
“A new phase of additional growth begins in 2022. The performing, restructuring and distressed credit markets that we have focused on since our inception are even larger than we originally envisioned and we have shown that we have advantages strong and sustainable competition. Our growth will further be supported by three highly technological initiatives already operational today: b-ilty (the first complete digital credit and financial services platform for SMEs), our proptech NewCo (a very innovative proptech which will be operational during the next few weeks) and HYPE (the leading fintech in Italy). These initiatives all have in common that they serve large markets and respond to unmet needs, have a highly scalable operating model and be able to open up to partnerships with key players.
Finally, the synergies that we will gradually achieve with the ION group in all our areas of activity will further accelerate illimity’s growth trajectory.
Our results and the work we have carried out to date allow us to be confident that the growth and profitability objectives set out in the 2021-25 Strategic Plan (net income >240 million euros) are fully within our reach.”
For more details, see the full announcement:
For more information:
Silvia Benzi: +39.349.7846537 – +44.7741.464948 – [email protected]
Wire Service Contact:
Los Angeles, California
1 ROE – Return on Equity: calculated as net income for the year as a percentage of average equity for the year (1/1-31/12/2021).
2 Calculated as the ratio between provisions for credit losses and net organic customer loans as of December 31, 2021 (€1,704 million) for the segments Factoring, Cross-over, Acquisition financing, Performing turnaround (including returns on sound credits), the credit portfolio of the ex-Banca Interprovinciale and Senior Financing to non-financial investors in distressed loans – but excluding UTP loans purchased as part of the turnaround activity and investments in distressed loan portfolios.