FinecoBank Banca Fineco (FBK) Q4 2023 earnings summary

Executive summary

• FY23 net profit reached a record €609.1m, up 42.0% YoY; revenues rose 30.5% to €1,237.6m, led by net financial income and Investing.

• Total financial assets rose 15.0% to €122.6bn, supported by €8.8bn in net sales and a yearly record 119,179 new clients.

• January 2024 net sales were €580m and 14,229 new clients were acquired, the second-best month on record for client additions.

Financial highlights

• FY23 adjusted revenues were €1,237.6m, up 30.5%; net financial income rose 75.4% to €688.0m and net interest income increased 100.6%.

• Net commissions increased 5.2% to €489.9m; gross operating profit reached €939.3m, up 40.8% on the adjusted comparison basis.

• Adjusted operating expenses were €298.3m, up 6.2% YoY or 4.7% excluding costs tied to business growth; cost/income ratio was 24.1%.

• Q4 revenue was €320.9m, up 21.6% YoY; net profit was €154.9m, up 22.8% YoY and 6.6% QoQ.

Outlook and guidance

• FY24 revenue expected to consolidate around FY23’s record, with a stronger commissions mix; Investing revenue is expected to rise low double digit YoY assuming neutral market effects.

• FY24 banking fees are expected to remain stable; brokerage revenue is expected to stay strong, with a revenue floor above pre-Covid levels.

• Operating costs are expected to grow ~6%, excluding additional FAM and marketing costs; cost/income ratio is expected to remain comfortably below 30%.

• Guidance includes cost of risk of 5–10 bps, ~€40m of systemic charges in Q1, growing CET1 and leverage ratios, high-quality net sales prioritizing AUM, and an increasing dividend per share.