FinecoBank Banca Fineco (FBK) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached €320.3 million, up 9.8% year-on-year excluding systemic charges, with all business areas contributing positively and strong growth in advanced advisory and client acquisition.

• Revenues rose 9.6% year-on-year to €658.3 million, supported by all product areas including Investing (+11.9%), Brokerage (+13.0%), and Net Financial Income (+10.7%).

• Total Financial Assets (TFA) grew to €131.3 billion (+13.3% y/y), with net sales of €5.0 billion and 73,593 new clients acquired (+22.5% y/y).

• Operating costs were €160.3 million, up 11% year-on-year, mainly due to business growth and marketing, with a cost/income ratio of 24.4%.

• CET1 ratio improved to 25.8%, leverage ratio at 5.35%, and total capital ratio at 36.2%, reflecting strong capital and liquidity.

Financial highlights

• Net financial income increased 10.7% year-on-year to €363.3 million; net commissions rose to €257.2 million (+6.2% y/y), with Investing and Brokerage segments up significantly.

• Trading profit up 25.4% year-on-year, driven by higher brokerage activity.

• Gross operating profit reached €498.0 million (+9.2% y/y); ROE at 29%.

• Cost of risk remained low at 5 bps; impaired loans at 0.12% of loans to ordinary customers.

• Total Financial Assets reached €131.3 billion (+7.1% vs. Dec 2023).

Outlook and guidance

• 2024 guidance improved, expecting another record year for net profit and revenues, with a mix shift toward commissions and low double-digit growth in investing revenues.

• Operating costs expected to grow ~6% year-on-year, excluding additional costs for asset management and marketing; cost/income ratio to remain below 30%.

• CET1 and leverage ratios expected to grow, with a higher dividend per share anticipated for 2024 and preference for share buybacks.

• Net sales and client acquisition expected to remain robust.

• Cost of risk guided at 5–10 bps.