In This Article:
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Net Profit: EUR164.2 million, up by 11.7% year on year.
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Revenues: EUR329.3 million, up by 0.7% year on year.
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Operating Costs: EUR87.2 million, increasing by 7.7% year on year.
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Cost Income Ratio: 26.5%.
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Net Sales: EUR3.2 billion in Q1, up by 44% year on year.
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New Clients: 50,000 in Q1, up by 40% year on year.
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Brokerage Revenues: EUR69 million in Q1.
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Common Equity Tier 1 Ratio: 24.1%.
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Leverage Ratio: 5.34%.
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Liquidity Coverage Ratio: 888%.
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Net Stable Funding Ratio: 390%.
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Investing Revenues: EUR94.5 million, up by 11.3% year on year.
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Trading Profits: Increased by 56.3% year on year.
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Net Commissions: Increased by 9.2% year on year.
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Deposits Net Sales: EUR2.8 billion, up by more than 50% year on year.
Release Date: May 07, 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) reported a net profit of EUR164.2 million for Q1 2025, marking an 11.7% increase year on year.
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Revenues reached EUR329.3 million, with non-financial income growth offsetting lower interest rates.
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The bank acquired approximately 50,000 new clients in Q1 2025, a 40% increase year on year, and 15,000 new clients in April, up by 31% year on year.
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Brokerage revenues increased by 29.7% year on year, driven by an expanded active investor base and higher market volumes.
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FinecoBank SpA (FNBKY) maintains a strong capital position with a common equity Tier 1 ratio of 24.1% and a leverage ratio of 5.34%.
Negative Points
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Operating costs increased by 7%, excluding growth-related expenses, which could impact future profitability.
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Banking fees are expected to decrease slightly in 2025 due to new regulations on instant payments.
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The market correction since the beginning of the year poses challenges, although the diversified business model helps mitigate this.
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There is uncertainty regarding the precise timing and impact of deposit flows, particularly with EUR5 billion of bonds maturing in 2025.
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FinecoBank SpA (FNBKY) faces potential risks from the evolving ETF market, which could impact traditional asset management revenues.
Q & A Highlights
Q: What strategies should we expect for the significant growth in assets under custody, and what percentage could be converted into assets under management or deposits over the next 12 months? A: Alessandro Foti, CEO, explained that assets under custody are a significant component of net sales and fuel for brokerage growth. Fineco is emerging as a platform of reference for ETFs, controlling nearly 70% of the retail ETF market in Italy. This dominance allows Fineco to potentially extract more value from this business, including running fees and developing its own ETF offerings.