In This Article:
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Net Profit: EUR652.3 million, up 7.1% year on year.
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Revenue: EUR1,316.5 million, increasing by 6.4% year on year.
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Net Financial Income: Increased by 3.4% year on year.
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Operating Costs: EUR332 million, increasing by 6.1% excluding growth-related costs.
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Cost Income Ratio: 25.2%.
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Net Sales: EUR10.1 billion in 2024.
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Brokerage Revenue: EUR217.1 million in 2024, with January 2025 revenues at EUR21 million.
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Common Equity Tier 1 Ratio: 25.9%.
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Leverage Ratio: 5.22%.
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Dividend Per Share: EUR0.74, increasing by 7% year on year.
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Investing Revenues: EUR367.5 million, up 11.7% year on year.
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Asset Under Management: 37.7% of total stock.
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Liquidity Coverage Ratio: 909%.
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Net Stable Funding Ratio: 382%.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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FinecoBank SpA (FNBKY) achieved a record net profit of EUR 652.3 million in 2024, marking a 7.1% increase year on year.
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Revenues reached EUR 1.316 billion, up by 6.4% year on year, supported by all product lines.
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Brokerage revenues increased by 30% year on year, driven by an expansion of active investors.
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The bank's cost-income ratio was maintained at a low 25.2%, highlighting strong operating leverage.
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FinecoBank SpA (FNBKY) plans to propose a dividend per share of EUR 0.74, a 7% increase year on year.
Negative Points
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Operating costs increased by 6.1% year on year, excluding costs related to business growth.
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Banking fees are expected to slightly decrease in 2025 due to new regulations on instant payments.
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The number of financial advisers saw a small drop, attributed to industry-wide trends and fiscal incentives.
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The bank anticipates a 6% growth in operating costs for 2025, with additional costs for growth initiatives.
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There is uncertainty regarding the impact of interest rate changes on net interest income, making precise forecasting challenging.
Q & A Highlights
Q: Can you explain the cost growth expectations for 2025, given the 11% increase in 2024? A: Alessandro Foti, CEO and General Manager, explained that 2024 saw a step-up in costs due to increased marketing expenses. For 2025, they expect a 6% organic cost growth plus additional costs for initiatives, totaling around 9%. The 2024 cost base can be seen as a new baseline for future growth.
Q: What are the prospects for brokerage activity and average fees per trade? A: Foti noted that brokerage activity picked up strongly in Q4 and January, driven by client interest in foreign markets, particularly the US. They expect this trend to continue, potentially improving average fees per trade as clients increasingly trade in foreign markets.