Banca IFIS (IF) H1 2026 earnings summary

Executive summary

• Net profit attributable to the Parent Company for H1 2026 was €7.8 million, down sharply from H1 2025, mainly due to extraordinary provisions and integration costs, with €73 million in Q2 provisions including €30 million from a Bank of Italy inspection.

• Integration of Ifis and illimity is on track, targeting €75 million annual cost and revenue synergies by 2027, with €50 million cost and €25 million revenue synergies already activated.

• Strategic shift underway with disposal of non-core subsidiaries (Hype, ARECneprix, Abilio) and NPL business, focusing on SME and commercial banking.

• Competitive process for NPL business deconsolidation launched, attracting strong investor interest and expected to close in H1 2027.

• 2026 is a transition year, laying the foundation for a new business model focused on commercial banking and cost synergies.

Financial highlights

• Net banking income for H1 2026 was €406.5 million, with €113.4 million from illimity Group; Q2 2026 revenues reached €190 million.

• Net profit for H1 2026 was €7.8 million, with a Q2 net loss of €23.5 million due to heavy provisioning.

• Commercial & Corporate Banking revenues were €87 million in Q2; NPL revenues were €48 million in Q2.

• Factoring turnover in Q2 was €3.4 billion, with an average spread of 3.4% above the base rate.

• Operating costs for H1 2026 were €308.8 million, with €83.8 million from illimity Group.

Outlook and guidance

• FY 2026 profit guidance revised down to €100–110 million (from €170–190 million), mainly due to €70 million in extraordinary provisions, including €30 million related to a Bank of Italy inspection and €40 million for illimity’s non-core NPL portfolio.

• Full integration of illimity expected by Q4 2026, with full synergies and commercial potential in 2027.

• Guidance excludes potential further impacts from NPL deconsolidation and ongoing regulatory reviews.

• Remaining €36 million of increased provisions expected in H2 2026, mainly related to illimity portfolio.

• No specific guidance on 2026 dividends yet; decision pending final Bank of Italy inspection results and NPL transaction visibility.