Banca IFIS (IF) H2 2025 earnings summary

Executive summary

• Net income for 2025 reached €328 million, reflecting strong profitability and the first-time consolidation of illimity, including badwill and non-recurring integration costs.

• Standalone net income guidance was approximately €160 million, despite a Q4 loss from integration costs and loan book write-offs.

• Integration of illimity is progressing, with €75 million in annual pre-tax cost and revenue synergies confirmed, and major IT and HR restructuring underway.

• Strategic review and disposal of non-core assets, including the €85 million Hype stake sale, are ongoing and contributed 55bps to CET1.

• Dividend per share maintained, with total 2025 dividends proposed at €129 million (€2.12 per share), with €73 million already paid and €56 million to be paid in May 2026.

Financial highlights

• Total revenues for 2025 were €789.5 million, with operating costs at €499.7 million; standalone revenues were €680 million.

• Extraordinary items contributed €201 million, mainly from €448 million badwill offset by €247 million restructuring and integration costs.

• Q4 saw a net loss of -€144 million due to integration costs, due diligence, and loan book write-offs.

• CET1 ratio pro forma at 13.7% as of 31 Dec 2025, after factoring in non-core asset disposals and NPL sales.

• Gross NPE ratio at 5.2%, net NPE ratio at 3.1%, with increased coverage on bad loans.

Outlook and guidance

• 2026 is positioned as an integration year, targeting net income of €170–190 million, assuming no major macro or geopolitical shocks.

• Full synergy benefits expected in 2027, with net income target reaffirmed at approximately €250 million.

• Expect some quarter-to-quarter volatility due to timing of divestments, DTA recognition, and de-risking actions.

• Dividend policy remains stable and attractive, aiming to maintain CET1 around 14%.