Banca IFIS (IF) Q3 2025 earnings summary

Executive summary

• Net profit for the first nine months of 2025 reached €472.3 million, including the first-time consolidation of illimity Bank and significant non-recurring items such as a €400.4 million gain on a bargain purchase (badwill).

• Q3 2025 consolidated net income was €385 million, reflecting robust standalone profitability and significant non-recurring items from the Illimity integration.

• Integration of Illimity Bank is underway, targeting €75 million in annual synergies and incurring €110 million in expected integration costs, with due diligence to be completed in Q4 2025 and a full merger targeted within 2026.

• Interim dividend of €1.2 per share (total €73 million) approved, with payment scheduled for 26 November 2025.

• Strategic review of non-core assets underway, including the disposal of the Hype stake to Banca Sella for €85 million, generating a 55 bps CET1 benefit.

Financial highlights

• Net banking income for the period was €536.4 million, with €46.7 million from illimity in Q3; excluding illimity, net banking income was €489.7 million.

• Q3 2025 consolidated net income: €385 million, including €400 million badwill, €13 million extraordinary tender offer costs, and €16 million integration costs.

• Banca IFIS standalone net revenues: €139 million; commercial banking revenues: €84 million; NPL revenues: €54 million.

• Illimity reported a Q3 loss of €22 million (or €11 million loss excluding non-recurring items), with return to profitability expected in 2026.

• Operating costs totaled €348.3 million, including €44 million from illimity; excluding illimity, costs were €304.3 million.

Outlook and guidance

• Standalone profit guidance for 2025 confirmed at €160 million, excluding extraordinary items.

• Integration of illimity expected to deliver €75 million in annual synergies, with €25 million from revenue and €50 million from cost savings.

• 2027 net profit target reaffirmed at €250 million for the combined entity.

• Funding maturities will be progressively refinanced at lower rates, leveraging over €3 billion available cash.

• Net interest income expected to be down 10% in 2025 vs. 2024, but funding cost synergies of €40–50 million anticipated by 2026.