Generalfinance (GF) Q2 2025 earnings summary

Executive summary

• Turnover grew 34% year-over-year to €1,833 million, nearly double the business plan CAGR forecast, with net income up 54% to €12.3 million, exceeding business plan targets.

• Growth driven by strong client acquisition, especially in distressed and SME segments, and expansion into Spain and Switzerland.

• Business model remains highly diversified, with 60 assigned debtors per seller versus the market average of six, and 75% of turnover covered by insurance.

• Maintained high profitability and robust asset quality, with a low NPE ratio and cost of risk.

• Focus remains on Italian SMEs, with significant turnover from manufacturing and distressed transferors.

Financial highlights

• Net banking income increased 44% year-over-year to €30.2 million; ROE reached 35.4%.

• Cost/income ratio improved to 32%, three percentage points better than the first half of 2024.

• Disbursed amount grew 37.5% year-over-year to €1,437 million.

• Shareholders’ equity stood at €82 million; CET1 ratio at 14-14.8%, total capital ratio at 14.8-15%.

• Available funding exceeded €1 billion for the first time; €50 million senior unsecured bond issued.

Outlook and guidance

• Guidance for 2025 net income reconfirmed at over €24 million, with management remaining conservative despite strong YTD trends.

• 2025-2027 Business Plan targets €13-14 billion turnover, cumulative net profit >€84 million, and ROE ~34% by 2027.

• Expansion into Spain and Switzerland expected to contribute more significantly from 2026 onward, with international turnover targeted at €580 million by 2027.

• Growth in client numbers and turnover continues to be robust, with no major customer attrition.

• Funding diversification and digital innovation are strategic priorities, with a focus on sustainable growth and ESG integration.