(Alliance News) - The board of illimity Bank Spa approved the group's results as of March 31, closing with a net profit of EUR10.8 million, up 38 percent year-on-year.

Revenues were EUR74.4 million, up 3 percent from the first quarter 2023 and down slightly from the previous quarter, when they were EUR77 million.

In particular, net interest income was down 18 percent year-on-year due to the expected increase in the cost of funding and the reduction made in direct investments in NPE.

Net interest income for the first quarter of 2024 stands at EUR39.6 million, down 18 percent mainly as a result of the expected increase in the cost of funding and, to a lesser extent, the lower contribution from NPE portfolios, the amount of which has been significantly reduced compared to last year.

"In the coming quarters, the figure is expected to gradually improve, benefiting from the expected stabilization of the cost of funding," the bank's statement reads.

Net fees amounted to about EUR18.1 million, up 19 percent year-on-year, driven by increased volumes in SME lending and third-party mandates in the servicing business.

Total funding, shows high diversification among various funding sources and amounted to EUR6.3 billion, up 27% year-on-year dragged in particular by the retail component of EUR3.9 billion, mostly stemming from the illimitybank.com platform composed increasingly of mid- to high-end customers.

The phased-in CET1 Ratio of illimity as of March 2024 stands at 14.9 percent and 14.9 percent fully loaded.

The phased-in Total Capital Ratio-which also includes in total regulatory capital the Tier 2 subordinated bond of EUR203 million-stands at 19.0% and 18.9% Fully Loaded.

The Liquidity Coverage Ratio (LCR) at the end of March 2024 stands at approximately 214%.

Net Stable Funding Ratio (NSFR) stands at 120% and is also significantly above regulatory minimums.

illimity closed Thursday's session in the green by 0.5 percent at EUR5.32 per share

By Maurizio Carta, Alliance News reporter

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