Growth in SME lending and unlimited earnings continues in Q3 2021
Operating income of 77.5 million euros for 9M21 (+ 176% over 9M20)
Net profit of 46.2 million euros for 9M21 (+ 90% over 9M20)
Net profit of 18.8 million euros in the third quarter of 2021
(+ 26% compared to 2Q21 and + 98% compared to 3Q20)
Solid and well-diversified revenues, costs under control
Also including investments in new initiatives
Excellent quality of existing business
ROE climbs to 9% in nine months 2021
Short and medium-long term objectives confirmed
Resolved to convene the General Meeting of Shareholders to be held on December 15, 2021 for the integration of the Board, the compensation policy and the new long-term incentive plan
Credit Growth Division: driving the increase in the Group’s volumes during the quarter, with net customer loans up 16% compared to the previous quarter (+ 70% year-on-year) to â¬ 1.17 billion and increased diversification revenues, with a positive contribution from the initiatives launched at the start of the year (capital markets, Ecobonus1)
Distressed Credit Division: asserts itself as the driving force behind the Group’s profitability, also thanks to the dynamic management of its existing portfolio, generating revenues over the first nine months of 2021 that are higher than those achieved over the whole of 2020. The cost / income ratio of the Division remains at excellent levels at 32%
Direct Banking Division: direct financing from retail customers amounting to approx. 1.3 billion euros and significant progress on the front of new initiatives. HYPE released its new offering in September and asserted market leadership with around 1.5 million customers. B-ILTY – the first fully digital direct bank designed for small businesses – confirmed launch by Q1 2022
Liquidity of 1.1 billion euros and a strong capital base with a CET1 Ratio of 20.1% (20.6% pro forma2) and a Total Capital Ratio of 26.5%
The capital increase reserved for the ION Group completed in the third quarter and license agreement for unlimited IT architecture sets off.
MILAN, Italy, November 11, 2021 (GLOBE NEWSWIRE) – via InvestorWire – Chaired by Rosalba Casiraghi, the board of directors of unlimited Bank SpA (âunlimited” Where “Bankâ) Yesterday approved the results of the Illimity Group as of September 30, 2021.
unlimited pays off again solid financial and operational performance in the third quarter of 2021: net profit of 18.8 million euros (14.9 million euros in the second quarter 2021, + 26% q / q, and 9.5 million euros in the third quarter 2020, + 98% y / y), taking the net income for the first nine months of the year at 46.2 million euros, up 90% compared to the corresponding period in 2020. DEER3 over 9% closed for the first nine months of 2021 on an annualized basis.
All the new strategic initiatives are underway and the trajectory towards short- and medium-long term objectives set in the 2021-25 Strategic Plan presented on June 22 is therefore confirmed.
Income in the third trimester increased by 49% compared to the third quarter of 2020, driven by the recurring activities of the Group and the development of its new initiatives. The strong performance accompanied the gradual balancing of the income mix, the component of income other than net interest income representing approximately 50% of the total over the first nine months of 2021.
Among income, the rise in fees and commissions, who in the third trimester increased by 18% t / t to reach â¬ 10.3 million – three times the corresponding figure for the previous year – driven by the strong generation of new business volumes in the Growth Credit segment, including factoring, the good results of neprix and the growing contribution of new initiatives.
Income for the period includes first income of 5 million euros arising from license agreement concluded with the ION group for the use of information systems developed by illimity (part of the 90 million euros planned over five years).
The Performance of the troubled loans division in the management of purchased loans proved once again excellent over this quarter, with very good growth in gross cash flows, generating approx. 5.3 million euros in profits on closed positions and other income of approx. 7.2 million euros; in total, the Division achieved sales of 146.1 million euros in the first nine months of 2021.
Despite the fact that the Bank has continued to invest in new initiatives that have not yet produced income, operating costs in the third trimester decreased by around 9% compared to the previous quarter due to seasonal savings in certain personnel costs. This trend, combined with good sales performance, led to a new improvement of the Cost Income Ratio, who reached 56% during the quarter and 60% in the first nine months of 2021, a marked improvement compared to the same period of the previous year (76% in 9M20).
Due to the above dynamics, the unlimited Operating profit went to 77.5 million euros in the first nine months of 2021, almost three times the figure of 28.0 million euros recorded for the same period in 2020.
The banks risk profile further strengthened, remaining at the first levels of the system: the The CET1 ratio rose to 20.1% at the end of September 2021 (20.6% pro forma with inclusion of special shares) due to the completion of the capital increase reserved for the ION Group and the result for the past quarter; the the ratio between doubtful gross organic loans and the total gross organic loans fell to 2.5%; outside the loan portfolio of the former Banca Interprovinciale, this ratio amounts to about 0.5%. Liquidity continued to be abundant at over 1.1 billion euros at the end of September 2021, in line with the anticipation of an acceleration of opportunities on the troubled credit market at the end of the year.
Finally, the Bank continued to develop the new initiatives described in the strategic plan according to schedule. In September, ADVERTISING THRESHOLDS has launched new services and products on the market, enriching its offer, with the aim of giving new impetus to the already solid growth of the company, which can currently count on 1.5 million customers, confirming its leadership position among the fintechs that operate in Italy. The development of B-ILTY, the new highly digital direct bank designed for small businesses, ready to launch in Q1 2022, is proceeding as planned. And in conclusion, the operational activities continued to allow neprix Sales – the remarketing entity already leader of platforms for the sale of real estate and equipment resulting from legal proceedings – to enter the free real estate market. through an innovative and digital offer. model.
Corrado Passera, CEO and Founder of unlimited, commented : “The world of unlimited, small business offers great opportunities. A growing number of companies are presenting ambitious plans to realize their potential and many of them are on the right track towards recovery. The increase in credit to troubled companies will also accelerate once the banking moratorium is over, and the role of banks such as unlimited, specializing in this market segment, will prove to be fundamental.
The decisions and technological investments we have made over the years will allow us to provide a service model that has proven to be competitive in terms of expertise and efficiency. B-ILTY, the direct bank for small businesses, which will be launched on the market in the first part of the year 2022, will complete the construction of the unlimited model and will be completely unique, and not only at the Italian level.
The results of the first nine months of 2021 and in particular of the third quarter confirm that the path to limitlessness is only beginning to bear fruit for our customers and our shareholders.
For more details, see the full announcement:
For more information:
Silvia Benzi: +39.349.7846537 – +44.7741.464948 – [email protected]
1 Purchase of tax credits resulting from energy efficiency interventions, reduction of the seismic risk and recovery of the built heritage provided for by the revival decree (called Superbonus 110% and other construction bonuses).
2 Including special actions for 14.4 million euros
3 ROE – Return On Equity: calculated as the ratio between the annualized net income for the period and the average shareholders’ equity for the nine months (1 / 1-30 / 9/2021).