Our strategy combines three key elements: NPL business strategy, commercial & corporate banking strategy and improvement of operating efficiency. Specialisation, flexible business model and continual growth are our strong points.
The Group’s strategy is to increase sustainable profit to further improve capital strength, allow the financing of business growth and the attractive remuneration of shareholders through the distribution of dividends.
Strategy in the NPL business
In the NPL segment, the Banca Ifis Group is the sixth operator1 on the Italian market in terms of assets managed with 23.6 million euro of assets under management and is the leader in the unsecured non-performing loans segment.
The Banca Ifis Group operates on the non-performing loan market as a primary investor, owns one of the best servicers currently active on a national scale and has a proprietary database of over 1.4 million debtors.
Banca Ifis’s strategy in the medium term is to continue to acquire portfolios of unsecured loans by actively participating in all processes on the market, progressively expanding the characteristics of the non-performing portfolios subject to acquisition to the secured and corporate segment, and continuously making the process of recovery of impaired loans more efficient.
The long-term strategy, from 2023 onwards, when it is estimated that the purchases of non-performing loans will be most impacted by the rules of calendar provisioning, is to progressively act as a co-investor for NPLs.
1 Source: Market Watch Npl January 2021 of the Banca Ifis Study Office
Commercial banking & corporate banking strategy
Banca Ifis offers itself as an operator specialised in supporting small and medium-sized enterprises. It is active in factoring, leasing, structured finance, the acquisition of tax credits, corporate banking and long-term financing through credits guaranteed by MCC.
The strategy is oriented towards a profitable growth path, the salient points of which are:
The expansion of the customer base;
The strengthening of cross selling;
The evolution of the business model in the segment of medium-sized businesses;
Investment in digital innovation;
The creation of a new online Hub;
The strengthening of credit risk management and a new communication strategy.
Improvement of operational efficiency
We want to implement precise actions aimed at containing costs, rationalising and improving the IT platform, and optimising logistics, licences and the real estate portfolio.
Through containments of costs, rationalisation of the IT platform, optimisation of logistics, licences and the real-estate portfolio.
The development of digital innovation is one of the key, priority actions for implementing the Group strategy, with as primary objectives expansion of the product offer to entirely digital sales channels, and to streamline and digitise internal processes.
In commercial business, technological innovation aims to develop a digital lending platform with a view to digitising all management processes and creating a specific marketplace for small and medium enterprises, with a technological service that extends to all stages of the application, assessment and disbursement of the loan. At the same time, in the Npl business, technological innovation intends to minimise Npl onboarding, management and monitoring time.
Banca Ifis is a specialised and diversified banking group with a distinctive business model in the Italian market.
We are present in highly profitable businesses, where we have exclusive know-how and where we are well established and recognised. As operators specialised in factoring, we are in a strong and competitive position to offer services to businesses, in particular SMEs. We are pioneers in Italy in the acquisition and management of impaired loans, where we are leaders in the unsecured market, and are now also established in the secured and corporate segment;
Diversification ensures stability and reduces business risk;
The sectors in which we operate offer great margins for growth.
Our business model is based on:
Flexibility in listening to customers’ needs, in the way we provide our services, and in investment and divestment decisions;
Speed of response and execution;
Innovation in products and services but also in technological infrastructures.
We are a solid, profitable and growing bank. Over the past 25 years, our shareholders’ equity has grown by around 1.5 billion euros and we have paid out around 0.4 billion euros in dividends. We are the fourth listed bank in Italy in terms of profit generated over the last 10 years.
The growth of the group has always been supported by the majority shareholder, La Scogliera, which ensures continuity and cohesion in management, a strategic vision over the long term and a prudent approach to risk.
The current scenario influenced by the pandemic makes any forecast uncertain, even though in the second part of the year vaccines issued progressively are sustaining a return to normality and the recovery of the macroeconomic context of Bank business.
On the credit front, at present, it is difficult to estimate the impacts on the quality of the assets, which will probably only become clear when moratoriums come to an end. The Banca Ifis Group business model, which looks to the short-term and is characterised by good segment diversification, should afford greater protection. In addition, factoring substantively offers a twofold guarantee of the credit, by the transferred company and by the transferor, whilst the residual value of the leased assets helps reduce the risk. Additional provisions have also been made on performing exposures in the sectors most exposed to the effects of the pandemic crisis.
Banca Ifis has decided to suspend the economic and financial objectives included in the 2020-2022 Business Plan.
Managing the dialogue with Investors
The document “Management policy for the Directors’ dialogue with Investors” regulates managing the dialogue of the Directors of Banca Ifis with shareholders (including institutional investors and asset managers), aimed at favouring Bank transparency towards the financial community and markets, by building, maintaining and developing an active trust relationship with Investors.
*Banca Ifis subsequently considered suspending the economic and financial targets included in the 2020-2022 Business Plan, which will be reviewed and updated as soon as the macroeconomic environment stabilises.