Because Banca Ifis shareholders don’t laugh too much
Banca Ifis reported a net profit of 52.3 million euros for the first nine months of the year (compared to 84 in the first months of 2019). All the details on the accounts communicated today by the bank.
Banca Ifis shareholders cannot laugh too much: net profit falls. Here are all the numbers of Banca Ifis in the first three months of the year.
NET PROFIT OF BANCA IFIS
Banca Ifis reported a net profit of 52.3 million euros for the first nine months of the year (compared to 84 in the first months of 2019), closing all quarters in profit despite the impact of the pandemic.
FINANCIAL POSITION
During the period, the group strengthened its capital position with Cet1 at 11.69%, up by 73 basis points compared to 31 December 2019.
COLLECTION
Total deposits in the nine months grew by 8.1% to over € 9.1 billion.
THE FIRST 9 MONTHS
During the first nine months of the year, the group made provisions for 47 million euros for Covid-19, of which 11 million euros as a precaution in the third quarter of 2020 to estimate potential negative effects mainly related to the moratoriums .
DOSSIER NPL
Furthermore, from the beginning of January to the end of October, Banca Ifis purchased NPL portfolios for a nominal value of 1.7 billion euro in the January period. For the entire fiscal year, Banca Ifis expects a profit in the upper part of the 2020 guidance (between 50 and 65 million euros) announced on 6 August.
EXPLANATIONS FROM THE CEO
"The results of the first nine months of 2020 confirmed the Bank's resilience capacity even in times of great difficulty such as that of the Covid-19 pandemic and demonstrated the solidity of the business model, which is well positioned in niches of profitable market – explains CEO Luciano Colombini – Despite an unprecedented macroeconomic context, in a situation of general mistrust and uncertainty, Banca Ifis closed the first nine months of 2020 with a profit of 52.3 million euros, reaching the guidance defined for the current year. All quarters were profitable despite adjustments and write-downs reasonably attributable to the situation linked to the Covid-19 pandemic for approximately 47.9 million euros in the first nine months of the year ".
THE ESTIMATES OF THE ANALYSTS (excerpt from a Start Magazine article a few days ago)
In a report, Akros analysts expect a net profit of 13.5 million euros, down 14% on an annual basis, although recovering from 10 million in June (+ 35%).
ESTIMATES ON IFIS REVENUES
As far as revenues are concerned, the analysts' forecast sees an estimate of 105 million, down by 6.3% from 2019 (112 million), but fairly flat compared to the second quarter (-1.9%).
WHAT AKROS SAYS ABOUT BANCA IFIS
The report also focuses on operating costs: Akros analysts see a decline of 5.5% annually and 14.5% on a quarterly basis to 70 million, also because "last year about 4 million euros were recorded of one-off costs and non-recurring 11 million euros were recorded in the second quarter of this year ”.
THE MOL
EBITDA is estimated at 35 million euros, down from 38 last year (-7.9%), but up 40% compared to the second quarter, when it was 25 million. While the provisions for credit losses should be 18 million, up 20% compared to the second quarter and 28.6% compared to the end of September 2019, underlines Mf / Milano Finanza .
THE INDICES
Finally, Banca Akros estimates a Cet1 Capital Ratio, a banking solidity index, not far from the 11.6% recorded in the second quarter.
CONCLUSION
Conclusion of the report: Akros analysts hypothesize a "rebound that can act as a catalyst for the revaluation of the stock, which should trade at a price / book value multiple of 0.3 for a return on tangible assets estimated at 4.5% at the end 2021 ". And they raise the opinion on Banca Ifis from neutral to buy (target price unchanged at 10 euros).
THE FORECASTS OF BANCA IFIS
The total stock of impaired loans to be managed in Italy, expected to grow by 5% at the end of the year to 338 billion, will rise further in 2021 to a total of 385 billion euros. This is the pessimistic scenario contained in the Banca Ifis Npl Observatory, presented in the days of the meeting at the 'Npl Meeting The New Wave' conference in Cernobbio (Como).
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/perche-gli-azionisti-di-banca-ifis-non-ridono-troppo/ on Thu, 05 Nov 2020 14:20:26 +0000.