illimity
SPECIALISTI DEL CREDITO
First Half 2025 Results
Key Highlights
The derisking process is progressing through increased coverage of non-core assets, and the due diligence process has been initiated by the parent company Banca Ifis.
Capital Position: CET1 Ratio at 13.0%
Retail Funding: Growing further to over €4 billion (+12% Y/Y and +4% Q/Q), with a decrease in cost of funding.
Liquidity Profile: €1.5 billion1
Net Result for the Period: -€118 million
Core Business Profitability: Profit Before Tax of €48 million Euro
1 Counterbalancing capacity (reserves and unencumbered assets eligible as ECB collateral).
Report Details
Milan, 6 August 2025
Chaired by Rosalba Casiraghi, the Board of Directors of illimity Bank S.p.A. ("illimity" or the "Bank") approved today the illimity Group's results as at 30 June 2025. During the first half of the year, illimity continued implementing initiatives aimed at strategic repositioning. Significant cost base rationalization measures included a clear separation between the Bank's core business and the non-core assets perimeter, related to past NPE investment activities, and the b-ilty activity considered no longer strategic. The organisational structure was redefined by identifying Corporate & Investment Banking as the core business, with commercial activity focused on providing specialised lending to SMEs and investment banking services in performing, restructuring, and turnaround areas. Non-core assets have been allocated to a dedicated Division specifically created to manage their run-off and derisking process.
The Core Business division (Corporate & Investment Banking) ended the first half of 2025 with €48 million profit before tax (compared to €61 million in the same period of the previous year). The results primarily reflect pressure on the net interest margin arising from the decline in market rates, partially offset by a lower cost of funding. Operational efficiency remained strong, with the divisional Cost/Income ratio at 22% and a contained cost of risk of 26 basis points.
The Non-Core Division reported a significant decrease in operating profitability, despite cost savings, linked to the progressive assets run-off, subject to provisions and value adjustments of about €91 million. These reflect updated recovery plans for underlying portfolios, revised during the quarter, in anticipation of the due diligence and integration process launched by the parent company Banca Ifis S.p.A. on illimity from 4 July. These adjustments aim to strengthen asset coverage and facilitate derisking.
Key Income Statement Figures
Reclassified Income Statement - Figures in millions of Euro
| Reclassified Income Statement | 2Q24 | 1Q25 | 2Q25 | Δ Q/Q% | 1H24 | 1H25 | Δ Y/Y% |
|---|---|---|---|---|---|---|---|
| Interest income | 110.1 | 97.0 | 88.6 | (9)% | 213.7 | 185.6 | (13)% |
| Interest expenses1 | (65.3) | (64.9) | (62.4) | (4)% | (135.2) | (127.4) | (6)% |
| Net interest income | 44.8 | 32.1 | 26.2 | (19)% | 78.5 | 58.3 | (26)% |
| Net fees and commissions | 25.8 | 16.0 | 15.0 | (6)% | 46.3 | 30.9 | (33)% |
| Net result from trading and fair value assets | (1.0) | 16.7 | 3.8 | (77)% | 19.9 | 20.5 | 3% |
| Net other income/expenses | 1.3 | 2.5 | 1.6 | (38)% | 4.8 | 4.1 | (15)% |
| Profit from closed purchased distressed credit positions2 | 6.1 | 0.9 | 9.2 | >100% | 8.2 | 10.0 | 22% |
| Operating income | 77.0 | 68.2 | 55.7 | (18)% | 157.8 | 123.9 | (21)% |
| Staff costs | (32.8) | (20.5) | (20.1) | (2)% | (48.4) | (40.5) | (16)% |
| Other operating expenses | (30.8) | (27.3) | (34.5) | 27% | (42.8) | (61.8) | 44% |
| Depreciation & Amortisation | (6.8) | (3.3) | (4.8) | 43% | (12.4) | (8.1) | (35)% |
| Operating costs | (70.4) | (51.1) | (59.4) | 16% | (103.6) | (110.5) | 7% |
| Operating profit | 6.5 | 17.1 | (3.7) | n.s. | 54.2 | 13.4 | (75)% |
| Loan loss provision charges | (6.4) | (13.9) | (92.6) | >100% | (16.8) | (106.5) | >100% |
| Value adjustments on purchased distressed credit | 40.7 | 0.5 | (14.2) | n.s. | (1.3) | (13.7) | >100% |
| Value adjustments on securities and loans to banks and off-balance | (0.1) | (0.0) | (1.6) | >100% | (0.4) | (1.6) | >100% |
| Other net provisions for risks and charges | (0.5) | (0.2) | (0.4) | 54% | (0.2) | (0.6) | >100% |
| Other income from equity investments | (0.2) | (1.9) | (0.7) | (64)% | 0.8 | (2.5) | n.s. |
| Contribution to banking sector schemes and other nonrecurring charges | (2.3) | (0.2) | (5.4) | >100% | (7.3) | (5.6) | (23)% |
| Profit (loss) before tax | 37.7 | 1.4 | (118.5) | n.s. | 29.0 | (117.1) | n.s. |
| Income tax | (8.6) | (1.3) | 0.0 | n.s. | (6.2) | (1.3) | (79)% |
| Minority Interest | 0.3 | 0.2 | 0.5 | >100% | 0.2 | 0.7 | >100% |
| Net result | 29.4 | 0.3 | (118.0) | n.s. | 23.0 | (117.8) | n.s. |
| Net result excl. non-recurring items | 29.4 | 0.3 | (118.0) | n.s. | 23.0 | (117.8) | n.s. |
1 This item does not include costs relating to lease liabilities, which have been classified as administration costs; on the other hand, it includes fees and commission expenses and stamp duty related to deposits on the Raisin platform.
2 Profit from the definitive closure of distressed credit positioned either through disposal to third parties or through payment recovery strategies ("saldo e stralcio") agreed with the debtor.
Any discrepancies between the figures presented are due solely to rounding.
Commentary on Income Statement Figures
Net interest income amounted to €58.3 million, down 26% y/y. The figure was affected by the reduction of interest income as a result of the fall in Euribor rates and the strategic repositioning that involved the transformation of direct investments in NPEs into senior notes. The decline in interest income was only partially offset by the lower funding cost recorded on retail funding.
Net fee and commission income amounted to €30.9 million, down 33% y/y, mainly due to the lower contribution from the Arecneprix business, which had benefited from some non-recurring transactions in 2024, as well as the slowdown in commercial activity as a result of the dynamics in the first half of 2025 that affected the Bank.
The net result from trading and fair value assets amounted to €20.5 million, up slightly from €19.9 million in the first half of the previous year, supported by the result from trading activities and the capital gains recorded on assets measured at fair value, mainly related to the Turnaround segment.
Profit from closed distressed credit positions amounted to €10 million, compared to €8.2 million in the same period of the previous year.
As a result of these dynamics, operating income amounted to €123.9 million, a drop of 21% y/y.
Operating costs amounted to €110.5 million, slightly higher compared to the first half of last year (€103.6 million). Personnel expenses were €40.5 million (down from €48.4 million in H1 2024), mainly due to the sale of the technology platform business unit to altermAlnd and cost containment measures. Other administrative expenses rose to €61.8 million (up from €42.8 million), including fees for IT services from altermAlnd and extraordinary expenses. Amortisation and depreciation decreased to €8.1 million (down from €12.4 million) due to the transfer of intangible assets to altermAlnd.
The operating profit stood at €13.4 million, compared to €54.2 million in the first half of 2024.
Loan loss provision charges amounted to €106.5 million (€16.8 million in H1 2024). This includes €3.3 million for the core business (cost of risk at 26 basis points), €16.0 million for the b-ilty book (due to credit quality deterioration and an increase in non-performing exposures), and €87.3 million for non-core assets (reflecting updated recovery plans). Specifically, €81.1 million relates to impairments on senior securitisation notes, with approximately €54 million arising from a reclassification of credit status.
Value adjustments on purchased distressed credit were negative for €13.7 million (compared to a loss of €1.3 million in H1 2024).
The item other income from equity investments, including HYPE's consolidation, closed with a negative result of €2.5 million (compared to a profit of €0.8 million in H1 2024).
The net result for the period was a loss of €118 million.
Key Balance Sheet Figures
Figures in millions of Euro
| Reclassified Balance sheet | 30.06.2024 | 30.09.2024 | 31.12.2024 | 31.03.2025 | 30.06.2025 | Δ% 30.06.2025 / 31.03.2025 | Δ% 30.06.2025 / 30.06.2024 |
|---|---|---|---|---|---|---|---|
| Cash and cash equivalent | 321 | 368 | 387 | 425 | 356 | (16)% | 11% |
| Due from banks and other financial institutions | 194 | 271 | 306 | 166 | 145 | (13)% | (26)% |
| Customer loans | 4,601 | 4,724 | 4,712 | 4,591 | 4,404 | (4)% | (4)% |
| - Core Customer loans | 3,004 | 3,005 | 2,959 | 2,874 | 2,797 | (3)% | (7)% |
| Corporate Banking | 1,639 | 1,588 | 1,669 | 1,586 | 1,558 | (2)% | (5)% |
| Structured Finance1 | 1,092 | 1,066 | 960 | 946 | 955 | 1% | (13)% |
| - Factoring | 546 | 522 | 709 | 641 | 603 | (6)% | 10% |
| Turnaround | 727 | 780 | 698 | 696 | 664 | (4)% | (9)% |
| Asset Based Financing | 330 | 367 | 329 | 332 | 279 | (16)% | (15)% |
| Investment banking | 308 | 270 | 264 | 260 | 295 | 14% | (4)% |
| Non-Core Customer Loans | 1,050 | 1,072 | 973 | 894 | 796 | (11)% | (24)% |
| - b-ilty | 547 | 647 | 780 | 823 | 811 | (1)% | 48% |
| Financial assets Held To Collect (HTC)2 | 934 | 985 | 942 | 970 | 989 | 2% | 6% |
| Financial Assets Held To Collect & Sell (HTCS)3 | 766 | 681 | 748 | 720 | 760 | 6% | (1)% |
| Financial assets measured at FVTPL4 | 559 | 564 | 563 | 554 | 567 | 2% | 1% |
| Investments in associates and companies subject to joint control | 82 | 82 | 140 | 138 | 140 | 1% | 70% |
| Goodwill | 70 | 72 | 34 | 34 | 34 | - | (52)% |
| Intangible assets | 87 | 90 | 31 | 29 | 27 | (6)% | (69)% |
| Other assets (incl. Tangible and tax assets)5 | 509 | 490 | 538 | 502 | 433 | (14)% | (15)% |
| Total assets | 8,124 | 8,328 | 8,403 | 8,128 | 7,855 | (3)% | (3)% |
| Due to banks | 877 | 945 | 865 | 705 | 640 | (9)% | (27)% |
| Due to customers | 5,092 | 4,977 | 5,307 | 5,240 | 5,200 | (1)% | 2% |
| Bond/Securities | 926 | 1,111 | 1,052 | 1,060 | 961 | (9)% | 4% |
| Shareholders' Equity6 | 962 | 977 | 899 | 899 | 784 | (13)% | (18)% |
| Other liabilities | 268 | 318 | 279 | 223 | 268 | 20% | (0)% |
| Total liabilities | 8,124 | 8,328 | 8,403 | 8,128 | 7,855 | (3)% | (3)% |
| Common Equity Tier 1 Capital7 | 729 | 749 | 720 | 711 | 592 | (17)% | (19)% |
| Risk Weighted Assets7 | 5,131 | 5,196 | 5,192 | 4,849 | 4,547 | (6)% | (11)% |
1 It includes the net loans to customers of Banca Interprovinciale, which is considered, due to its characteristics, consistent with illimity's Corporate Banking segment. It also includes the corporate high-yield bonds classified as HTC.
2 Includes the Bank's securities portfolio classified at amortised cost.
3 HTCS: financial assets measured at fair value through other comprehensive income. This item consists of the Bank's securities portfolio and any of the ABF and Non-Core Division's loans held for potential sale.
4 FVTPL: other financial assets measured at fair value through profit or loss. This item includes Participatory Financial Instruments acquired as part of Turnaround transactions, and units of funds acquired as part of the activities of the ABF, Non-Core and Corporate Banking Divisions.
5 It includes assets arising from the purchasing of tax assets (the "Ecobonus") for approximately €95 million and Non-current assets and groups of assets held for sale for approximately €2.7 million.
6 It includes losses for the period attributable to minority interests of €0.7 million.
7 Pro-forma figures as at 30.06.2024 to take into account the sterilisation on capital ratios of the positive impact recorded in the fourth quarter of 2023 relating to a specific securitisation transaction.
Any discrepancies between the figures presented are due solely to rounding.
Commentary on Balance Sheet Figures
Net loans to customers amounted to €4.4 billion. Core business loans were €2.8 billion, down slightly from €3 billion in H1 2024, partly due to early repayments. Loans related to non-core business amounted to €796 million, down 24% y/y, consisting of senior notes from NPE portfolio transformation.
Loans related to b-ilty (online lending platform for small businesses) amounted to €811 million, up from €547 million in H1 2024, driven by last year's origination. The commercial activity of b-ilty has been downsized as it is no longer considered strategic.
Regarding credit quality, gross organic impaired positions were approximately €432 million. The gross NPE ratio stood at 2.9% (excluding public guarantees), with around 90% being UTP exposures undergoing restructuring. Including all positions, the ratio is 9.7%.
As at 30 June 2025, illimity's securities portfolio stood at approximately €1.7 billion, up 3% y/y. HTC securities (Italian Government Bonds) were €989 million, up 6% y/y. HTCS securities portfolio was €760 million, down 1% y/y. The portfolio consists of approximately 82% Italian Government Bonds, 17% senior bonds, and 1% subordinated bonds.
Financial assets at fair value amounted to €567 million, including €342 million of units in specialised funds with underlying NPE positions.
Goodwill amounted to €34 million, down 52% y/y due to impairment. Intangible assets were €27 million, down 69% y/y following the sale of technology assets to altermAlnd.
Other Assets amounted to €433 million, down 15% y/y due to reduction of assets held for sale and real estate disposals.
illimity's total funding sources were approximately €6.8 billion. Retail funding was €4.2 billion, up 12% y/y, primarily from the illimitybank.com platform (€3.0 billion). Retail funding from the Raisin channel was €1.1 billion (+52% y/y).
Wholesale funding amounted to €1.9 billion, down 27% y/y. Corporate customer funding was €679 million.
CET1 Capital stood at approximately €592 million, down from March 2025 (€711 million), mainly due to the loss recorded in the second quarter. Risk-weighted assets (RWA) amounted to approximately €4,547 million, down from March 2025 (€4,849 million).
The phase-in CET1 ratio as at 30 June 2025 was 13.0%, and the phase-in Total Capital ratio was 17.6%.
Contribution of Divisions to Group's Results
The following table sets out the key figures for the illimity Group's Divisions for the first semester of 2025.
| 1H25, Data in millions of euros | Core Business1 | Non-Core Business | b-ilty | HQ | Other2 | Total |
|---|---|---|---|---|---|---|
| Net interest income | 38.9 | 8.9 | 9.4 | 2.2 | 1.1 | 58.3 |
| Net fees and commissions | 14.3 | (0.5) | (0.3) | 2.2 | 17.4 | 30.9 |
| Other income | 27.1 | 2.4 | 1.3 | 2.2 | 1.6 | 34.6 |
| Operating income | 80.3 | 10.8 | 10.4 | 2.2 | 20.1 | 123.8 |
| Staff costs | (10.0) | (1.2) | (1.3) | (12.1) | (15.9) | (40.5) |
| Other operating expenses and D&A | (7.5) | (15.0) | (4.0) | (38.4) | (5.0) | (69.9) |
| Operating costs | (17.5) | (16.2) | (5.3) | (50.5) | (20.9) | (110.4) |
| Operating profit | 62.8 | (5.4) | 5.1 | (48.3) | (0.8) | 13.4 |
| Provisions | (3.3) | (87.3) | (16.0) | - | - | (106.6) |
| Value adjustments | (11.0) | (4.2) | - | (0.3) | 0.3 | (15.2) |
| Net provisions on other financial assets and contribution to banking sector schemes | (0.1) | - | - | (5.9) | (0.2) | (6.2) |
| Other income from equity investments | - | - | - | (0.0) | (2.5) | (2.5) |
| Profit (loss) before tax | 48.4 | (96.9) | (10.9) | (54.2) | (3.5) | (117.1) |
| Cost Income Ratio | 22% | n.s. | 51% | n.s. | n.s. | 89% |
| Interest earning assets | 3,980 | 1,151 | 1,035 | 491 | 0 | 6,657 |
| Other assets | 295 | 488 | 15 | 287 | 113 | 1,198 |
| RWA | 2,512 | 1,362 | 140 | 347 | 185 | 4,547 |
1 It includes the Factoring, Structured Finance, Turnaround, Asset Based Financing and Investment Banking divisions
2 It includes the contribution from Digital Banking, the subsidiaries (ARECneprix, illimity SGR and abilio), Hype and intercompany elisions
Any discrepancies between the figures presented are due solely to rounding.
Core Business – Corporate & Investment Banking
The core business is represented by the following business segments: Factoring, Structured Finance, Turnaround, Asset Based Financing and Investment Banking. This business maintained good profitability despite the slowdown in commercial activity due to the dynamics of the half-year that affected the Bank.
Profit before tax amounted to €48 million (€61 million in the first half of 2024). Revenue amounted to €80 million (€88 million in H1 2024), mainly impacted by the decline in interest rates. Operating costs amounted to €17.5 million, down 7% y/y, with operating leverage at excellent levels, showing a cost/income ratio of 22%, highlighting the high scalability of the operating structure.
Provisions on organic loans amounted to €3.3 million, down from €9.4 million in H1 2024. Provisions on non-organic loans totalled €11 million, reflecting increased coverage on certain specific credit exposures undergoing restructuring.
Non-Core Business in run-off
The total stock of non-core assets amounted to €1.1 billion, down 8% q/q and 22% y/y. This includes €918 million of senior securities and fund units3 from the transformation of direct investments into NPEs, and €222 million of NPE portfolios.
The division's result, in the context of the run-off process, closed with a loss before tax of €96.9 million, mainly due to provisions and value adjustments recognised in the half year (€91.5 million). These aim to strengthen asset coverage and anticipate due diligence outcomes with Banca Ifis S.p.A. Loan loss provisions amounted to €87.3 million, reflecting updated recovery plans for non-core assets. Of this, €81.1 million relates to impairment losses on senior securitisation notes, with approximately €54 million from a reclassification of credit status.
3 Fund units are classified in the balance sheet item "Financial assets measured at FVTPL" and amounted to €342 million.
Business Outlook
Following the successful conclusion of the Public Tender and Exchange Offer (OPAS) on 4 July, illimity has become part of the Banca Ifis Group and is subject to its management and coordination. The Bank's activities will continue in line with the new Group's strategic guidelines.
On 21 July, the Board of Directors of illimity returned their mandates to Banca Ifis S.p.A. to facilitate integration. These resignations will be effective as of the next Shareholders' Meeting on 25 September 2025, which will address the renewal of Corporate Bodies, Bylaws amendments, and the planned delisting.
Pursuant to article 154-bis, paragraph 2, of Italian Legislative Decree no. 58/1998, the Financial Reporting Officer, Mr Sergio Fagioli, declares that the accounting information contained in this press release corresponds to the documented results and accounting books and records.
For Further Information
Investor Relations & Sustainability
Fabio Pelati
+39 335 7853370 – fabio.pelati@illimity.com
illimity Press & Communication Office
Vittoria La Porta, Elena Massei
press@illimity.com
Ad Hoc Communication Advisors
Valentina Zanotto
+39 335 141 5575
Riccardo Schiavon
+39 340 082 3015
illimity@ahca.it
illimity is a bank belonging to the Banca Ifis Group, subject to the management and coordination of Banca Ifis S.p.A. as of 4 July 2025.
