illimity, a digital bank that claims the title of the first in Italy, is reporting €31 million in net profit for 2020. In 2019, illimity reported a €16.1 million net loss.
Corrado Passera, illimity’s CEO, said illimity has fully met the results for the year included in its earnings guidance, guaranteeing shareholders a Return On Equity (ROE) of 5.5% despite the challenging economic situation created by the pandemic.
“The bank has never once interrupted its growth path in this difficult situation and has also invested in new strategic initiatives whose positive effects will become visible in future years,” said Passera. ” Alongside the resilience of its economic and capital results, illimity also made important strategic and operational progress in the year that allows us to look to the future with optimism: from entry into the UTP portfolio market – winning one of the most important bids in the sector – to the launch of Open banking and the joint venture in HYPE.”
Passera said that in 2021 they expect to see a significant increase in their results despite the amount of investment needed for new projects.
illimity said that Q4 generated a significant contribution to the results, posting a pre-tax profit of €8.3 million euro. The main driver of growth has been consumer lending and investments.
Net customer loans climbed by 55% over the figure at the end of December 2019 to reach €817 million at the end of December 2020, an increase of 19% over the end of September 2020.
The main driver of growth for profits during the year was net customer loans and investments, which amounted to 2.2 billion euro at 31 December 2020, a rise of 35% over the figure of 1.6 billion euro at the end of 2019, with the total representing an increase of 20% over the balance at 30 September 2020.
Of note, illimity said that volumes of net loans and investments in the DCIS Division (Distressed Credit Investment & Servicing) stood at €1,308 million on December 31, 2020, representing an increase of 30% over the figure of €1,008 million at the end of the previous year and 23% over that at September 30, 2020. DCIS generated sufficient income to reach profitability.
neprix, the illimity Group’s platform specializing in servicing distressed corporate loans, had a gross book value of €9.1 billion as of December 31, 2020, in terms of managed loans and capital goods and real estate assets held for remarketing.
The direct banking division reported a total number of customers of 43,000 at the end of January. Direct banking lost €21.7 million.
“Taken as a whole, management is expecting a further significant rise in the Bank’s profits in 2021 despite the costs to be incurred for the new strategic initiatives, which will be announced to the market by the end of the first half of the year on the presentation of illimity’s updated long-term strategic plan.”