Fintech
Operating Profit of 110.6 Million Euro (+147%) – Illimity Bank
Chaired by Rosalba Casiraghi, the Board of Directors of illimity Bank S.p.A. (“illimity” or the “Bank”) yesterday approved the illimity Group’s results at 31 December 2021.
illimity fully achieved its 2021 profit guidance, posting a net profit of 65.6 million euro for 2021, more than double the figure for 2020 (31.1 million euro). ROE for 2021 amounted to ca. 10%. Net profit for the fourth quarter of 2021 rose to 19.4 million euro (from 18.8 million euro in the third quarter of 2021, +3% q/q and +187% over net profit of 6.8 million euro for the fourth quarter of 2020).
In detail, the year was characterised by:
- More than doubled operating profit of 110.6 million euro for 2021 (+147% compared to operating profit of 44.8 million euro for 2020).
- Significant business growth, with loan and investment volumes of more than 1.1 billion euro originated in 2021, representing a rise of 24% on an annual basis. Volume growth was above all driven by the Growth Credit Division, which saw an acceleration in lending and investing activity in all its business lines, while the Distressed Credit Division maintained its positioning as leading operator on the Italian market thanks to its ability to identify new investment opportunities in profitable and highly specialist market segments. In the fourth quarter alone the Bank originated volumes of 511 million euro (+120% q/q).
- A sharp increase in operating income to reach 271.2 million euro (+56% y/y) in 2021, increasingly diversified and balanced between the net interest income and other income components. Operating income reached 77.8 million euro in the fourth quarter, representing a sustained rise on both a quarterly (+17%) and annual (+34%) basis. The Distressed Credit Division confirms to be the largest contributor to revenues, generating 73% of the total revenues earned in the year.
- A visible improvement in operating leverage: the Cost income ratio fell considerably during the year to 59% compared to 74% in 2020. The Cost income ratio for the fourth quarter amounted to 62% (-11 percentage points over the fourth quarter of 2020).
- Organic credit quality remained at excellent levels: the ratio between gross doubtful organic loans and total gross organic loans originated since the start of illimity’s operations stood at 0.7% at 31 December 2021 – a figure amounting to 2.3% if the loan portfolio of the former Banca Interprovinciale is included; organic cost of risk2 stood at 4 bps for the full year 2021.
- A robust capital base with indicators positioned at the top levels of the system – a CET Ratio of 18.8% (19.3% pro-forma with the inclusion of the special shares) – and a sound liquidity position (of approximately 0.7 billion euro) despite the significant deployment in new loans and investments in the quarter.
Moreover, 2021 saw the foundations laid for solid growth in profits and profitability also in 2022, in line with the guidelines for growth included in the Strategic Plan:
- we entered a partnership agreement with the ION Group. Initially centred on the licence agreement for the use of our IT platform, we are now working to extend this to other key sectors;
- we have made additional progress on our sustainable growth path, developing our ESG values further in relations both with our customers and our staff; we have joined the United Nations Global Compact, the biggest business sustainability initiative;
- we have invested in all our activities and strengthened our presence in the key markets, amongst which we note the following:
- illimity SGR, which has successfully completed further closings of its first Turnaround fund;
- the capital markets activity focused on SMEs, which has already provided a visible contribution to our results;
- the Energy desk of the Distressed Credit Division, which has consolidated its presence on the market, taking the first investment-divestment cycle to completion and achieving significant economic results;
- entry into the public procurement claims segment, a large field with limited competition and high returns;
- the strengthening of our product offering and the technology platform of HYPE, Italy’s leading fintech;
- we have laid the foundations for the launch of two completely new initiatives, based on technology, that will take our future profitability well above the average for the sector. In 2022 illimity will become even more “tech”:
- b-ilty, the first digital business store for credit and financial services developed by illimity to help SMEs to grow. b-ilty is a fully digital banking platform, conceived on the basis of the suggestions received from hundreds of small corporates and inspired by examples typical of the most globally widespread digital solutions;
- thanks to our digital and real estate expertise, over the next few weeks we will also be launching the most innovative proptech company in Italy. An evolution of the strategy of our servicing unit which, as remarketing leader on the judicial real estate market, will enter the open real estate market, currently characterised by its large scale and significant need for innovation, with a new brand and an innovative platform.
Corrado Passera, CEO and Founder of illimity, commented: “We ended 2021 with considerable satisfaction and are starting 2022 with a great deal of confidence.
“A new phase of further growth is beginning in 2022. The performing, restructuring and distressed credit markets on which we have been concentrating since we were first established are even bigger than we initially envisaged and we have shown that we have strong and sustainable competitive advantages. Our growth will be further supported by three highly technological initiatives that are already operative today: b-ilty (the first complete digital platform for credit and financial services for SMEs), our proptech NewCo (a highly innovative proptech that will begin operations over the next few weeks) and HYPE (Italy’s leading fintech). These initiatives all have in common the fact that they serve large markets and meet unsatisfied needs, that they have a highly scalable operating model and that they can open up to partnerships with key players.
Lastly, the synergies we will gradually unleash with the ION Group in all our business areas will bring further acceleration to illimity’s growth path.
Our results and the work we have carried out to date enable us to be confident that the growth and profitability objectives included in the 2021-25 Strategic Plan (net profit of >240 million euro) are fully within our reach.”
For more details view the entire announcement:
https://assets.ctfassets.net/0ei02du1nnrl/6oTUyP7z2SEFn2N32YkE0v/820cb3f91ba51badc6012ea738b13574/illimity_4Q21_FY21_Results.pdf
As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.
Chime’s Quiet Step Toward Public Markets
Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.
With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.
Source: Bloomberg
ZBD’s Pioneering Achievement: EU MiCA License Approval
ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.
MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.
Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.
Source: Coindesk, PR Newswire
The Fintech-Credit Union Synergy: A Blueprint for Innovation
The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.
This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.
Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.
Source: PYMNTS
Tackling Student Loan Debt: A Fintech’s Mission
Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.
The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.
As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.
Source: RBJ
Industry Implications and Takeaways
Today’s updates underscore several key themes shaping the fintech landscape:
- Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
- Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
- Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
- Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.
The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.
Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.
SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.
Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.
“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”
Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.
The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.
Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.
“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”
Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.
Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.
The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.
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