8 November 2018

Banca IFIS: margins and customers up for the 9 months. Rising profitability and strong cash flow generation in the NPL segment

Mestre (Venice), 8 November 2018 – The Board of Directors of Banca IFIS met today under the chairmanship of Sebastien Egon Fürstenberg and approved the financial results for the first nine months of 2018.
«Over the past nine months, Banca IFIS has continued growing and supporting Italy’s economy, even against a gradually deteriorating macroeconomic backdrop» says Giovanni Bossi, Banca IFIS CEO. «We present ourselves to investors with a robust financial position and performance. The Bank has one of the smallest holdings of Italian government bonds among financial institutions in Italy, totalling approximately 29% as a proportion of equity. In addition, it can rely on liquidity in excess of its needs, resulting in a liquidity coverage ratio (LCR) of over 2.000%, compared to a minimum regulatory requirement of 100%. We are able to offer
products designed for and tailored to struggling small businesses and households, demonstrating a continuing ability to innovate and promptly meet needs as they arise. The lack of strategic legacy burdens and the positioning in markets largely overlooked by the conventional business models of other lenders help strengthen
our role in Italy». «The Bank has been very active in each segment, growing the individual businesses and supporting companies. Special emphasis was placed on supporting the working capital of SMEs, expanding volumes as well as the number of customers served. As for the NPL area, as expected the Italian market is undergoing structural changes that Banca IFIS duly takes into consideration. The pressure on portfolio prices seen in early 2018 is abating, giving rise to a more interesting
competitive landscape characterised by falling prices. This is why we resumed buying portfolios in the third quarter, with prices hovering around 5% for unsecured receivables with a gross book value of approximately 1,8 billion Euro. We remain firmly focused on making delinquent borrowers reperforming; the steady increase in
profits as well as overall and expected cash flows as a result of these conversions is evidence of our success in this area.
The determination to consciously play an increasingly crucial role in supporting Italy’s economy, in the interest of both market participants and the Bank’s growth, continues to guide our day-to-day operations».

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