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Banca IFIS: 2016 results and 2017-2019 Strategic Plan approved. All business segments projected to grow. Proposed 2016 dividend €0,82/share

Inside information

Highlights – 2016 Results

Financial Year 2016: 1 January – 31 December

Reclassified data1:

– Net banking income: 326,0 million Euro;
– Net profit from financial activities: 299,4 million Euro;
– Operating costs: 202,5 million Euro net of the gain on bargain purchase;
– Profit for the year: 687,9 million Euro (89,8 million Euro exlusively for the Banca IFIS Group scope prior to the acquisition of the former GE Capital Interbanca Group);
– Cost of risk for the finance to SMEs segment: 80 bps;
– Bad loans ratio in the trade receivables segment: 1,0%;
– Net bad-loan ratio excluding NPL Area: 1,2%;
– Total Group’s employees: 1.323 employees at 31.12.2016;
– Common Equity Tier 1 (CET1): 15,7% (15,8% at 31 December 2015) 2;
– Total Own Funds Capital Ratio: 15,7% (15,8% at 31 December 2015) 2.

4th quarter 2016: 1 October – 31 December

Reclassified data1:

– Net banking income: 88,3 million Euro;
– Net profit from financial activities: 81,2 million Euro;
– Profit for the period: 621,7 million Euro.


Highlights – 2017-2019 Strategic Plan

KPIs at the end of the plan CAGR 16-19 on 2016 data normalized as defined in the text

– Interbanca achieves break-even starting from 2017;
– Group net banking income: +24%/+26%;
– Group net profit for the year: +40%/+45%;
– Total Capital Ratio (TCR)2: 17%/18%;
– Cost/income ratio below 50%;
– Cost of risk for finance to SMEs segment at approximately 100 bps.


Comment on operations

Mestre (Venice), 16 March 2017 – The Board of Directors of Banca IFIS met today under the chairmanship of Alessandro Csillaghy De Pacser and approved the results for the year 2016 as well as the 2017-2019 strategic plan. In addition, the Board proposed to the Shareholders’ Meeting convened on 21 April 2017 to distribute a dividend3 of 0,82 Euro gross of the potential withholdings per ordinary share, with ex-dividend date (coupon no.20) on 2 May 2017, record date on 3 May 2017, and payment date on 4 May 20173. The dividend will be paid through the authorised intermediaries with which shares are registered in the Monte Titoli system.

«With the new 2017-2019 Strategic Plan, Banca IFIS is setting for itself ambitious goals concerning support to businesses and the collection of debts from distressed companies and households” said Giovanni Bossi, Banca IFIS CEO. “We have the liquidity, capital, resources, technology, ideas and motivation to continue on our growth path. The Plan sets a number of milestones for the Bank’s sectors: however, the available resources leave room to seize the opportunities offered by the credit market. We will thoroughly assess risks and additional development opportunities. During 2017, we will complete the merger of Interbanca, thus streamlining the Group’s structure; and double down on the digital transformation, aware that the Bank of the future will rely more on technology and data, and less on branches and physical relationships with customers. A “leaner” bank for increasingly demanding customers, providing them with more and more targeted services at a faster pace.»
In addition, the interactive financial statement website makes it is possible to browse the Group’s financial results, corporate governance, balance sheets and quarterly evolution, and to view videos of Banca IFIS’ values.

Read the entire press release
2016 financial results presentation
Stategic guidelines 2017-2019 presentation
Listen and download the conference call

1 Net value adjustments on NPL Area receivables, totalling 32,6 million Euro at 30 September 2016 compared to 3,6 million Euro at 31 December2015, were reclassified to Interest receivable and similar income to present more fairly this particular business, for which net value adjustments represent an integral part of the margin.
2  The reported total Own Funds refers only to the scope of the Banca IFIS Group, thus excluding the effects of the prudential consolidation in the Parent Company La Scogliera S.p.A. Consolidated own funds, risk-weighted assets and solvency ratios at 31 December 2016 were determined based on the regulatory principles set out in Directive 2013/36/EU (CRD IV) and Regulation (EU) 575/2013 (CRR) dated 26 June 2013, which were transposed in the Bank of Italy’s Circulars no. 285 and 286 of 17 December 2013. Article 19 of the CRR requires to include the unconsolidated holding of the banking Group in prudential consolidation. The CET1 at 31 December 2016 including La Scogliera S.p.A. amounted to 14,7%, compared to 14,2% at 31 December 2015, while the Total Own Fund ratio totalled 15,3%, compared to 14,9% at 31 December 2015.
3 As per article 83-terdecies of Italian Legislative Decree no. 58 of 24 February 1998 (Consolidated Law on Finance), eligibility for the dividend is determined based on the shareholders of record on the intermediary’s books as per article 83-quater, paragraph 3 of the Consolidated Law on Finance at the end of 3 May 2017 (so-called record date).