FinecoBank Banca Fineco (FBK) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached €320.3 million, up 9.8% year-on-year excluding systemic charges, driven by a diversified business model, strong operating leverage, and growth in advanced advisory and client acquisition.

• Revenues rose 9.6% year-on-year to €658.3 million, supported by all product areas, with growth in Investing (+11.9%), Brokerage (+13.0%), and Net Financial Income (+10.7%).

• Strong client acquisition: 73,593 new clients in H1 2024 (+22.5% year-on-year), with digital channels and AI-driven marketing improving efficiency and client quality.

• Commercial performance remains robust, with net sales at €5 billion and Total Financial Assets at €131.3 billion (+13.3% y/y).

• Solid capital and liquidity: CET1 ratio at 25.8%, TCR at 36.2%, leverage ratio at 5.35%, LCR at 882%, NSFR at 369%.

Financial highlights

• Net financial income for H1 2024 was €363.3 million (+10.7% y/y), with net interest income at €361.5 million (+10.1%).

• Net commissions rose to €257.2 million (+6.2% y/y), mainly from Investing (+12.0% y/y) and Brokerage (+11.4% y/y).

• Operating costs at €160.3 million, up 6.7% year-on-year excluding growth-related expenses; cost/income ratio at 24.4%.

• Trading profit up 25.4% year-on-year to €37.7 million, driven by higher brokerage activity.

• Gross operating profit reached €498.0 million (+9.2% y/y); ROE at 29%.

Outlook and guidance

• 2024 guidance improved, expecting another record year for net profit and revenues, with a mix shift toward commissions and low double-digit growth in investing revenues.

• Operating costs expected to grow ~6% year-on-year, excluding additional costs for asset management and marketing; cost/income ratio to remain below 30%.

• CET1 and leverage ratios expected to grow, with a higher dividend per share anticipated for 2024.

• Net sales and client acquisition expected to remain robust.

• Cost of risk guided at 5–10 bps for 2024.