Equita Group (EQUI) Q2 2024 earnings summary

Executive summary

• 1H 2024 net revenues reached €40.9m, down 5% year-over-year, with net profits at €8.1m, up 1% year-over-year, supported by a strong 2Q rebound (+39% QoQ, +1% YoY).

• Return on Tangible Equity (ROTE) improved to 25% from 23% in 1H'23, reflecting operational efficiency.

• EQUITA maintained a leading position in Italian brokerage, with high market shares across equity, bonds, and options.

• Recent achievements include large M&A mandates, strong DCM performance, and successful fundraising for new alternative asset management products.

• 2Q 2024 net profit rose 19% year-over-year and 65% sequentially, reflecting improved market conditions.

Financial highlights

• 2Q'24 net profits rose 19% year-over-year to €5.1m, with net revenues stable at €23.7m (+1% YoY).

• Personnel and total costs decreased by 6% year-over-year in 1H'24, supporting profitability.

• Adjusted net profits for 1H'24 were €8.1m, down 7% year-over-year, excluding non-recurring items.

• Cost/income ratio improved to 71.8% from 72.8% in 1H 2023.

• Shareholders’ equity at €97.6m as of June 30, 2024.

Outlook and guidance

• Market environment expected to improve, with a turning point in ECM and increased M&A activity, especially in small and mid-cap segments.

• FY'24 results are expected to align with shareholder remuneration targets, with significant improvement anticipated from 2025.

• Growth in AuM and AM fees projected, driven by new fundraising and first carried interest on private debt funds from 2025.

• Management expects further interest rate declines and improved capital markets in 2H 2024.