Italy-based digital challenger bank, illimity, posts net profit of €104m ($112.1m) for fiscal 2023, up by 39% y-o-y.
Highlights include net interest income increasing by 19% year-on-year. Meantime, net fees and commissions increase by 25% year-on-year. Illimity reports strong growth within its corporate and investment banking segment. Profits rise by 47% y-o-y with lending up by 24% y-o-y.
The bank’s distressed credit division, now renamed Specialised Credit, also makes a significant contribution to the group’s results. As well as the business unit re-naming, the division has shifted its focus towards specialised asset-based financing.
The bank’s cost of risk remained contained at 43 basis points. The CET1 ratio of 14.7% reflects a robust capital position.
Corrado Passera, CEO and founder of illimity, said: “The 2023 results mark five years since the birth of illimity. During that time, the bank has never stopped growing, despite the many “black swans” that have occurred during these years. Our assets have risen to €7.3bn from just a few hundred million at the beginning of 2019.
“Starting from negative profitability in the first year we exceeded €100m net profit in 2023. Our balance sheet is characterised by a high level of solidity and a contained risk profile. Meantime, we have never stopped investing in innovation, allocating a part of our profits to a series of tech initiatives. They are also designed to produce capital for the development of our core business and create one of the market’s most innovative IT platforms.
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illimity to revise 2025 targets
“From a cost centre, it has become a revenue and growth centre. Given the performance of the NPE market, which will be decidedly less attractive in the future, we have accelerated a repositioning that sees us with a greater presence on the specialised asset-based performing loan market. In light of the strategic developments and a profoundly changed macroeconomic situation compared to that underlying our 2021-2025 plan, we plan to draw up a new plan in 2024. That will also lead to a revision of our 2025 targets”.