(Alliance News) - FinecoBank Spa reported Tuesday that it reported a 42 percent year-on-year increase in net income and revenues up 31 percent from 2022.

Net income improved to EUR609.1 million from EUR428.8 million in 2022 while revenues rose to EUR1.24 billion from EUR948.1 million.

The financial margin flew to EUR688.0 million from EUR392.2 million a year earlier, with net interest income up to EUR687.7 million from EUR342.8 million and treasury management profits dropped to EUR200,000 from EUR49.4 million.

Operating income rose to EUR939.3 million from EUR667.2 million while gross profit rose to EUR872.2 million from EUR604.8 million.

The cost/income ratio net of nonrecurring items was 24.1 percent while provisions for risks and charges were EUR63.6 million from EUR57.8 million a year earlier.

Consolidated book equity amounts to EUR2.19 billion and shows a positive change of EUR284.3 million compared to December 31, 2022, thanks mainly to the profit recognized as of December 31, 2023, which offset the main reductions recognized in the period, due to the payment of dividends related to the year 2022 in the amount of EUR299.2 million and the payment of coupons of AT1 instruments issued by FinecoBank in the amount of EUR21.6 million.

The group confirmed its capital strength with a CET 1 ratio at 24.3 percent as of December 31, 2023 compared to 24.7 percent as of September 30, 2023 and 20.8 percent as of December 31, 2022. Tier 1 ratio and total capital ratio were 34.9% as of December 31, 2023 compared to 35.9% as of September 30, 2023 and 31.4% as of December 31, 2022.

The leverage ratio was 4.95% as of December 31, 2023 compared to 4.96% as of September 30, 2023 and 4.03% as of December 31, 2022.

Loans to customers as of December 31, 2023 amounted to EUR6.20 billion, up 2.3 percent from September 30, 2023 and down 3.8 percent from December 31, 2022.

"The group's liquidity indicators are very strong, positioning Fineco at the highest level among European banks: LCR of 823 percent as of December 31, 2023, significantly above the regulatory limit of 100 percent, and NSFR of 378 percent as of December 31, 2023, also well above the regulatory limit of 100 percent," the bank said.

The dividend proposed by the board is EUR0.69 per share, up from EUR0.49 a year earlier.

For 2024, the bank estimates revenues from Investing up double digits, banking fees in line with last year, Brokerage revenues with higher base than pre-Covid period, and costs up 6 percent. The cost/income ratio is expected to be well below 30 percent.

The bank also estimates CET 1 and Leverage ratio up and dividend up.

FinecoBank's stock is down 0.8 percent at EUR12.99 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

Comments and questions to redazione@alliancenews.com

Copyright 2024 Alliance News IS Italian Service Ltd. All rights reserved.