Banca IFIS (IF) Q3 2025 earnings summary

Executive summary

• Net profit for the first nine months of 2025 reached €472.3 million, driven by the acquisition and first-time consolidation of illimity Bank, including a provisional gain on a bargain purchase (badwill) of €400.4 million.

• Integration of illimity Bank is underway, targeting €75 million in annual synergies and incurring €110 million in expected integration costs, with due diligence to complete in Q4 2025 and full merger targeted for 2026.

• Interim dividend of €1.20 per share (total €73 million) approved, with payment scheduled for November 2025.

• Strategic review and disposal of non-core assets underway, including the sale of the Hype stake to Banca Sella for €85 million, expected to add 55 bps to CET1.

Financial highlights

• Q3 2025 consolidated net income was €385 million, including €400 million badwill, €13 million extraordinary tender offer costs, and €16 million integration costs; net banking income for the period was €536.4 million.

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

• Illimity reported a Q3 loss of €22.4 million, mainly due to integration and non-recurring costs.

• Total assets increased to €21.2 billion from €13.8 billion at year-end 2024, reflecting the illimity acquisition.

• Operating costs (excluding illimity) were €304.3 million, up 1.6% year-over-year.

Outlook and guidance

• Standalone net income guidance for 2025 confirmed at €160 million, excluding extraordinary integration costs.

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

• FY2025 net profit estimated at €163 million, excluding the gain on a bargain purchase and extraordinary costs.

• 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.