FinecoBank Banca Fineco (FBK) Q3 2024 earnings summary

Executive summary

• Net profit for the first nine months of 2024 reached €490 million, up 7.9% year-over-year, with revenues at €984.1 million, up 7.3% year-over-year, driven by growth across all product areas, especially Investing and Brokerage.

• Client acquisition accelerated, with new clients up 26.5% year-over-year and October marking a record month with over 15,000 new clients.

• Net sales were robust at €6.9 billion for the first nine months, with October net sales doubling year-over-year to €1 billion.

• Total Financial Assets reached €135.3 billion, with Assets under Management at €63.8 billion.

• Operating costs for 9M24 were €239.1 million (+10.8% y/y), with a cost/income ratio of 24.3%, confirming strong operating leverage.

Financial highlights

• Net financial income for 9M24 was €540.8 million (+6.4% y/y); net commissions €387.2 million (+6.9% y/y); trading profit €56.1 million (+21.0% y/y).

• Gross operating profit for 9M24 was €744.9 million (+6.3% y/y); profit before taxes €702.9 million (+8.6% y/y).

• Return on Equity (ROE) was 29% for 9M24.

• Cost-to-income ratio stood at 24.3%, reflecting strong operating leverage.

• Operating costs mainly increased due to business growth and marketing.

Outlook and guidance

• Revenues expected at record levels in 2024, with a mix shift toward commissions and low double-digit growth in investing revenues for both 2024 and 2025.

• Operating costs projected to grow around 6% year-over-year in both 2024 and 2025, excluding additional growth-related expenses.

• Cost/income ratio expected to remain comfortably below 30% in FY24 and FY25.

• Higher dividend per share anticipated for 2024; excess capital distribution decision postponed due to expected deposit growth.

• Cost of risk expected between 5 and 10 basis points in 2024.