newsletter banca ifis group 6
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Newsletter Banca IFIS Group 3, june 2013.TRANSCRIPT
01_Editorial: Sustainable Recovery
by Andrea Clamer
02_Direct link to results. Bloomberg:
bonds under the lens
03_Banca IFIS registers positive
1st quarter results
04_Market. Banca IFIS stocks
flying high on the Stock Exchange
05_30th Anniversary. Happy Birthday Banca
IFIS: join the celebrations on Facebook!
06_MondoPMI: supporting Small and
Medium Enterprises for over a year
07_IFIS Finance: Banca IFIS supporting
the growth of Polish enterprises
08_Recruitment:
positions available
09_Events Calendar
10_Contacts
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013Newsletter 6 31 June 2013_Quarterly newsletter
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01 Editorial: Sustainable Recoveryby Andrea Clamer
Andrea Clamer,
Head of Banca IFIS’s
NPL Division.
«With 130 billion distressed loans the theme of
sustainable recovery has become a key issue to ensure
the system as a whole correctly manages the financially
“weak” part of the country. It is no longer simply an
economic issue, linked to the return on investment
(where investment can be considered as the choice of
delivering a certain credit or to buy that same credit), but
also a social and development issue: either we are able
to give those millions of people a real second chance,
or the entire system is likely to disintegrate, leading to
negative consequences also for the performing part of
the banking world, with obvious consequences in terms
of the cost of credit (raising interest rates) and of supply
logic (contraction). Behind the slogan of “sustainable
recovery” what really gets portrayed? How does this
world impact and pervade our efficiency as professionals
of “non-performing” credit that has, in its DNA, the
purchase of unsecured portfolios and their management
in order to achieve - from the difference between the
purchase price and the amount recovered - that result
called economic return?
The answer, very briefly, I think is “segmentation”,
accomplished through careful analysis of the data. This
segmentation involves dividing our pool of debtors, which
now has almost 500,000 subjects, into four categories.
The first category: people who are willing and able to
pay; the second consists of those who do not want to
and cannot pay; the third made up of people who want
to but cannot pay; finally, those who are able but not
willing to pay.
It is clear that adopting a fair and sustainable approach
also means creating, for those who are “able but not
willing”, a management structure that will not accept
the “unwillingness” of having to deal with their debts
and forcing this category of debtor to pay what they owe
through focused, economic, legal action. This is mainly
out of respect for those debtors who, although they
cannot, wish to pay their debts, those who decide to give
up something in their lives and repay because, for these
individuals, repaying a debt is a matter of honor.
These initial considerations bring more food for thought:
how can the banking system achieve these aims? How
can the different market players create appropriate
economies of scale that enable them to implement
processes and controls in line with the “principles” set
out above? How and how much do they have to invest
in order to obtain useful information to segment the
portfolio as described above?
Most likely a single operator, even the largest on
the market, does not possess adequate background
information on non-performing debtors to allow them
to model appropriate portfolio segmentation. There is,
therefore, a strong need to create a pool of debtors and
therefore, of information, that could bring potential
economies of scale: we need a “big data repository” or
a player who decides to play that role, specializing in
this type of market to create the specific economies of
scale, non-reproducible with a low number of debtors
in the portfolio. This player would ensure, through its
operational efficiency, a fair degree of segmentation
of practices and therefore sustainability. It would also
achieve, through its own economies of scale, greater
efficiency in its recovery action, efficiency that could be
partly redistributed to other markets, less focused on
credit management in litigation.
Finally, referring to the distressed loans sales market,
one method of wealth redistribution might be to increase
the acquisition price of portfolios put on sale».
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02 Direct link to resultsBloomberg: bonds under the lens
Giovanni Bossi,
C.E.O. of Banca IFIS.
In an interview with Sonia Sirletti of Bloomberg realized
on June 21st Giovanni Bossi, CEO of Banca IFIS,
commented on the trends of the Bank and its future
outlook, expecting an annual earnings growth over the
next three years thanks to the reduction of funding costs
and increased margins in the sector of distressed loans.
“We raised our targets on ROE and see our net income
growing in each year of the three-year business plan
ending in 2015” Bossi said. “We will cut the cost of
funding by 1 percent next year and 0.5 percent in
2015, to offset lower income from our government
bond portfolio.”
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In summary, figures for the period January 1 - March 31:
• Net banking income increased by 27,5% to 66,9 million Euros
• Net profit from financial activities increased by 14% to 53,1 million Euros
• Cost/income ratio further improving, down to 26,5%
• Profit for the period increased by 13,9% to over 22 million Euros
• Non-performing loans/total loans in the trade receivables sector: 3,5% compared to 4,3%
• Solvency: 12,9%
• Core Tier 1: 13,1 %
The expectations for the remainder of the 2013 financial year remains positive for the group, in an evolving
market marked by an economic recession and conditioned by the climate of distrust and also the result of the
limited effectiveness of actions taken by institutions.
In particular, Banca IFIS expects:
• “High single-digit” total rev. growth in 2013, 2014, 2015
• Target annual rev. growth from NPL loans recovery, trade receivables between 15% and 20% over next 3
years;
• Raised 2013 ROE forecast to 25% from 20%; expects ROE above 20% in 2014, 2015;
• Plans to cut cost of debt collection by 1 percent next year and 0.5 percent in 2015 generating savings of
up to 40 million euros;
• Retail funds totaled 3.9 billion euros as of June 19, up from 3.6 billion euros at the end of the first quarter
• Focus on core business boosting margins from recovery of distressed loans, trade receivables and
reducing volatile rev. from sovereign bond portfolio;
• Plans to reduce Italy govt. bond holdings to 3.3 billion euros by end 2014, to 2.2 billion euros by end 2015
from current 7.8 billion euros, not reinvesting in sov. maturing securities;
• Target: bad-loan ratio at 3% by year-end from 3.5% in 1Q;
• Banca IFIS 1Q profits rose 14% to 22.5 million euros;
• Shares: +50% YTD vs FTSE Italia All-Share Financial Services Index +3%.
03 Banca IFIS registers positive1st quarter results
Higher number of business
customers, rising profit
margins and stronger
capital ratio.
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04 MarketsBanca IFIS stocks flying high on the Stock Exchange
Banca IFIS stocks are seeing a good response on the
stock market, with major peaks. This good performance
is the result of some strategic choices made by the Bank
but also of a series of one-to-one meetings with investors
interested in buying shares. Shown below are the events
and road shows in which Banca IFIS has taken part:
• Gèneve and Zurich: 11-12 April;
• London and Milan: 14-15 May;
• Copenaghen and Dublin: 22-23 May;
• Vienna: 5 June;
• Paris (European Midcap Event): 24-25 June.
First quarter results
confirmed the positive
2012 trend, in line with the
future outlook.
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05 30th AnniversaryHappy Birthday Banca IFIS:join the celebrations on Facebook!
Nobody forgets their 18th birthday, and Banca IFIS
certainly won’t forget its first 30 years of activity.
From 1983 to 2013, the bank - initially born in Genoa
as “I.Fi.S.” (Institute of Finance and Discount SpA)
and now the only independent banking group in
Italy specialized in the sector of trade receivables,
non-performing financial loans and tax receivables
- has grown considerably, experienced major
transformations, joined the Italian Stock Exchange
and has evolved, offering customers new products
and services, in a transparent and an ever more direct
relationship with its customers and partners.Discover all the images
on Banca IFIS Facebook
Fanpage.
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In particular, in recent years, the bank’s communication
has also expanded onto social networks, increasing the
dialogue not only with clients but with all web users; a
method that, for Banca IFIS, has initiated an innovative
way of listening to customers, and given more freedom of
expression to the people involved: not only customers but
also stakeholders, investors and institutional authorities,
public and private companies, small and medium
enterprises, institutions and organizations.
Thanks also to its strong showing on social networks,
Banca IFIS has decided to celebrate its 30th birthday with
various initiatives, the first of which was created and will
take place through the use of said networks: every week,
on the Banca IFIS Facebook page, two images will be
published showing famous events that took place in the
years in which the Bank took its most important steps,
with the aim of involving all network users. Celebrations
start with 1983, the year I.F.i.S was founded, and all fans
are asked what they were doing in that year: a way of
initiating a dialogue to intersect the history of the bank
with the personal histories of web users.
The initiative will take place primarily on the Banca
IFIS Facebook fan page of and will be supported on the
Twitter accounts @ BancaIFIS, rendimax, @contomax and
@StreetNetworkIT.
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06 MondoPMI:supporting Small and MediumEnterprises for over a year
MondoPMI
MondoPMI is the blog
dedicated to Small and
Medium Enterprises and
particularly to credit, loans
to enterprises and new laws
and regulations for SMEs
www.mondopmi.com
Last May, the Banca IFIS blog, dedicated to entrepreneurs
and professionals of Small and Medium Enterprises,
celebrated its 1st birthday. Twelve months full of
satisfaction related not only to the growing interest
of the readers of MondoPMI (www.mondopmi.com),
but also to the participation demonstrated thanks to
various initiatives aimed at fostering the community
and an interactive exchange of opinions.
The need to involve users came in December 2012
when, reading news of demonstrations and proposals
of several industry associations, MondoPMI launched
#NataleImpresa. The project was set out to give voice
to every single professional, expressing their wishes
for 2013 as a sort of Christmas present, thanks to the
drafts of some useful articles expressing the needs
of the company, but mainly oriented to suggesting
solutions to face issues effectively.
Also created, along the same lines, was PMIvsCrisi, a
project to promote tips and advice from entrepreneurs,
a virtual place to exchange views on how to exit the
crisis that undermines the ability to do business.
The blog later tried to dispel the notion of crisis
as negative growth, explaining that it may
represent a new beginning, a rebirth, a new way
of doing business, focusing on the efficiency
of the processes and strategies oriented to the
future. Therefore #FuturoPMI was launched, where
companies explained how they were able to reinvent
themselves, through opportunities found on the
web, and grow by encouraging employment and
developing new ideas.
MondoPMI’s efforts were not limited to gathering
ideas or highlighting success stories, but have also
been useful in training people. Like #PensaPMI, a
collection of quotes from Italian managers who have
created the history of our country, and #ImparaPMI,
a glossary of 30 definitions related to doing business.
What are the new initiatives in the coming
months? We’re thinking different, but the social
spirit that has characterized the last year requires
us to ask the opinions of our readers! In the early
days of July we will create a survey aimed at
understanding the interest of users towards new
initiatives; a way of proposing projects that would
be useful to every entrepreneur. A collection of
photographs/videos of SMEs that follow us will
also be launched, using Instagram.
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In addition to these new activities, MondoPMI has
a new look! Currently there are different types of
homepage, where new visitors see a different layout
to those who have already visited the blog once. The
initiative aims to let new users discover the most
read articles of the SMEs, while, for those who come
back, we want to suggest the most popular themes.
In the blog there is also a contact form for Banca
IFIS, where entrepreneurs and Small and Medium
Enterprise professionals can leave their details and
receive information on funding opportunities.
Are you passionate about
business subjects? Are you
an expert on SMEs market?
Send us your content to be
published on MondoPmi.
Write to:
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07 IFIS Finance: Banca IFIS supporting the growth of companies in Poland
Banca IFIS is among the major players in Italian factoring
and has been active for over ten years on an international
level, with a presence in Europe (France, Poland,
Hungary, Romania) and Asia (India).
In Poland, the factoring market in 2010 had a turnover of
over 14 billion Euros, an increase of 30%. IFIS Finance,
based in Warsaw, is a well capitalized company that
provides support to small and medium enterprises
participating in the economic development of the country.
«Poland has grown exponentially in recent years with
rigorous industrial vitality and intelligence, as well as
maintaining good political stability» says Alessandro
Csillaghy, vice president of Banca IFIS Group. IFIS
Finance is a leading partner in this large manufacturing
area both for Polish companies exporting to Italy and
for Italian companies that have relocated. Funding
covers the automotive sector among others: «the goal -
emphasizes Csillaghy - is to continue to grow, bringing
more and more liquidity, purchasing, managing and
securing credit».
Alessandro Csillaghy,
Vice-President Gruppo
Banca IFIS.
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Factoring has entered the collective imagination
as a vital tool for the economic needs of small and
medium-sized enterprises. International factoring
works in a similar way to domestic factoring,
helping those exports to be more competitive in a
more complex global market. «In particular, export
factoring – emphasizes Daniela Bonzanini, Head of
International Banca IFIS Group - is showing how
financing, management and guarantee claims against
foreign debtors may be of assistance to exporters,
especially in those countries where the crisis
has drastically reduced credit from banks, where
insurance companies have almost completely ceased
to take commercial risks».
Factors Chain International was established in
1968 to represent the interests of independent
factoring companies around the world. With member
companies offering domestic and International
factoring services in countries across the five
continents, FCI is by far the world’s largest factoring
network with 260 banks in 75 countries.
Factoring in Poland: Factors Chain International 2012 data
In June 2013 Daniela
Bonzanini, Head of Banca
IFIS’s International Area,
was appointed President of
Factors Chain International.
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Data Factors Chain
International
(in millions of euro).
Domestic and International factoring by Country (2012)
Country Nr. of companies Domestic factoring International factoring Total
Poland 29 20,34 4,17 24,51
Italy 41 143,374 38,504 181,878
Germany 210 120,23 37,19 157,42
United Kingdom 40 271,675 19,525 291,200
Total Europe 732 1,104966 193,759 1,298,725
Total factoring volume by country in the last 7 years (2006-2012)
Country 2006 2007 2008 2009 2010 2011 2012
Poland 4,425 7,900 7,800 12,000 16,210 17,900 24,510
Italy 120,435 122,800 128,200 124,250 143,745 175,182 181,878
Germany 72,000 89,000 106,000 96,200 129,536 158,034 157,420
United Kingdom 248,769 286,496 188,000 195,613 226,243 268,080 291,200
Total Europe 806,958 932,264 888,528 876,649 1,045,069 1,218,585 1,299
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Banca IFIS Group differs from other operators in the
sector as it continues to recruit despite the negative
economic framework. The Bank is approaching
both young people and more senior figures who can
contribute their experience. Some of the current
positions available include the following: Legal Service
Agent, Operational Risk Manager, Linux Systems
Analyst, Senior Software Tester, Senior Internal Auditor,
Junior Risk Manager, Organization Project Manager;
Litigation Service Agent – all in Venice; Junior Credit
Manager (Banca IFIS Verona); Sales Manager (Banca
IFIS Verona); International Relationship Manager
(Banca IFIS Milano); Junior Asset Manager (NPL
Business area - Banca IFIS Florence).
Recruitment: positions available08
Work with us: visit our
website or the Careers
section on Banca IFIS’s
LinkedIn page to find out
our vacant positions.
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09 Events Calendar
Subscribe to our newsletter
on www.bancaifis.it to be
always updated on Banca
IFIS’s events, conference
and appointments, follow
@BancaIFIS on Twitter or
visit our Facebook fanpage.
• July5: Launching new brand “CrediFamiglia”
• July10: ABI Assembly, 10:00am Palazzo
dei Congressi - Rome
• July10: Event Corriere Innovazione
“Turismi” 18:00 Molo IV - Trieste
• July11: “Social Minds:’’ The use of Social Media
by Italian Banks” – 9:30am,
Palazzo delle Stelline, Corso Magenta 61 (Milan).
• July11: Last round of the series of meetings
“A book a month in villa”. Presentation of the book
“Web marketing for SMEs” in the presence of the
author Miriam Bertoli. 18pm,
theater Villa Furstenberg.
• July16: Launching new brand
“Credi Impresa Futuro”
• July17: Banca IFIS Board of Directors
• August8: Board of Directors and approval
of interim results - 2Q
• From5to8September: Festival of Politics
in Mestre - Pellicani Foundation
• From6to8September:The European House Forum
Ambrosetti “The scenario of today and tomorrow
for competitive strategies”
at Villa d’Este in Cernobbio (Como)
• September19:NPL meeting
Villa Furstenberg (Mestre)
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Financial Calendar
Banca IFIS shares on the stock market
Shareholder break down
8th August 2013 Approval of Interim Report as of June 30, 2013
13th November 2013 Approval of third quarter 2013
Price at 28/06/2013 8.17€
2013 Min-Max 5,525 (02/01/13) - 8,845(20/05/13)
Number of shares issued 53.811.095
Capitalization 439.636.646,15 €
1-month performance -2,21€
6-month performance +48,19%
1-year performance +64,23%
Dividend 0.37 (06/05/2013)
Specialist Intermonte Spa
Net appreciation of Banca IFIS shares by market partecipants. Price has exceeded €8 with more than 48% growth over
six months. Volumes year to date, which is the average number of transaction in the period, are growing, sign of active
participation and interest by the operators towards the instrument. Daily average volumes have been growing and
reached a maximum of 136.255 in May. The positive judgement has been confirmed by all financial reports and updates
conducted by research offices, such as Edison, Akros and Centrobanca.
Sebastien Egon Furstenberg
Floating
Giovanni Bossi
Riccardo Preve
Treasury shares
69,01%
22,76%
3,41%
2.40%
2.42%
28th June 2013
28th June 2013
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10 Contacts
Analyst coverage
Follow us on Contacts
Marco Cavalleri
Banca Akros
https://twitter.com/BancaIFIS
http://www.facebook.com/Banca.IFIS
http://www.linkedin.com/company/banca-ifis
http://www.youtube.com/user/BancaIFIS
http://tvchannel.bancaifis.it/
Website: http://www.bancaifis.it
Website of 2012 financial statements:
http://bilancio.bancaifis.it
Investor Contact: Mara Di Giorgio
Email: [email protected]
Tel. +39 041 502 7623
Mark Thomas
Edison, Investment Research