Banca IFIS (IF) Q3 2025 earnings summary

Executive summary

• Net profit for the first nine months of 2025 reached €472.3 million, driven by the acquisition and first-time consolidation of illimity Bank, including a provisional gain on a bargain purchase (badwill) of €400.4 million.

• Integration of illimity Bank is underway, with due diligence expected to complete in Q4 2025 and a full merger targeted within 2026, aiming for €75 million in annual synergies and incurring €110 million in expected integration costs.

• Interim dividend of €1.2 per share (total €73 million) approved, with payment scheduled for 26 November 2025.

• Strategic review and disposal of non-core assets underway, including the sale of the Hype stake to Banca Sella for €85 million, generating a 55 bps CET1 benefit.

Financial highlights

• Net banking income for the period was €536.4 million, with €46.7 million from illimity in Q3; excluding illimity, net banking income was €489.7 million, down from €531.8 million year-over-year.

• Q3 2025 consolidated net income: €385 million, including €400 million badwill, €13 million extraordinary tender offer costs, and €16 million integration costs.

• Banca IFIS standalone net revenues: €139 million; commercial banking revenues: €84 million; NPL revenues: €54 million.

• Illimity reported a Q3 loss of €22.4 million (or €11 million loss excluding non-recurring items), with return to profitability expected in 2026.

• Operating costs totaled €348.3 million, including €44 million from illimity; excluding illimity, costs were €304.3 million, up from €299.7 million in 2024.

Outlook and guidance

• Standalone profit guidance for 2025 confirmed at €160 million, excluding extraordinary items, with FY2025 net profit estimated at €163 million excluding the gain on a bargain purchase and extraordinary costs.

• Integration of illimity expected to deliver €75 million in annual synergies, with €25 million from revenue and €50 million from cost savings.

• 2027 net profit target reaffirmed at €250 million for the combined entity.

• Funding maturities will be progressively refinanced at lower rates, leveraging over €3 billion available cash.

• The Group expects to maintain capital ratios well above regulatory requirements.