Banca IFIS (IF) H1 2025 earnings summary

Executive summary

• Acquired 92.5% of illimity's share capital, with full integration and delisting expected after the sell-out procedure ends August 29th and by September 2025; due diligence to be completed by December.

• Integration aims to generate higher industrial value through cost and revenue synergies, with annual synergies confirmed at €75 million.

• PWC appointed to conduct ECB-requested due diligence on illimity, to be completed by December; strategic review of illimity's assets and subsidiaries underway, with potential disposals considered for non-core assets.

• Acquisition of Euclidea SIM finalized, marking entry into asset management services.

• Dividend policy remains consistent with the previous business plan.

Financial highlights

• H1 2025 net income: €93.7 million, or €87.1 million attributable to the parent company, stable year-over-year, excluding non-recurring costs from the illimity offer.

• Net banking income was €351.0 million, down from €374.5 million in H1 2024 due to less favorable interest rates; quarterly revenues at €172 million, down 9% year-on-year.

• Operating costs decreased by 2.5% to €201.0 million, but rose €6 million quarter-over-quarter in 2Q25 due to NPL workout seasonality and project expenses.

• Net credit risk losses rose to €19.2 million from €15.8 million in H1 2024; loan loss provisions remain low.

• Cost/income ratio increased to 57.3% from 55.0% in H1 2024.

Outlook and guidance

• On track to meet 2025 standalone guidance and €160 million net income target; synergies from illimity integration confirmed at €75 million annually.

• Post-merger CET1 target remains around 14%.

• Attractive dividend policy confirmed, with interim dividend in November and payout structure unchanged.

• Updated business plan for the combined group to be presented in H1 2026.

• Focus on sustainable profitability, capital strength, and low risk profile for the integration phase.