Newsletter Banca IFIS Group 6


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Newsletter Banca IFIS Group 3, june 2013.

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Newsletter Banca IFIS Group 6

  1. 1. 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 follow us on: 022013 Newsletter 6 31 June 2013_Quarterly newsletter
  2. 2. 02 follow us on: 01 Editorial: Sustainable Recovery by 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».
  3. 3. 03 follow us on: 02 Direct link to results Bloomberg: 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.”
  4. 4. 04 follow us on: 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 positive 1st quarter results Higher number of business customers, rising profit margins and stronger capital ratio.
  5. 5. 05 follow us on: 04 Markets Banca 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.
  6. 6. 06 follow us on: 05 30th Anniversary Happy 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.
  7. 7. 07 follow us on: 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.
  8. 8. 08 follow us on: 06 MondoPMI: supporting Small and Medium Enterprises 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 LastMay,theBancaIFISblog,dedicatedtoentrepreneurs 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 (, 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.
  9. 9. 09 follow us on: 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:
  10. 10. 010 follow us on: 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.
  11. 11. 011 follow us on: 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.
  12. 12. 012 follow us on: 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
  13. 13. 013 follow us on: 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 available 08 Work with us: visit our website or the Careers section on Banca IFIS’s LinkedIn page to find out our vacant positions.
  14. 14. 014 follow us on: 09 Events Calendar Subscribe to our newsletter on to be always updated on Banca IFIS’s events, conference and appointments, follow @BancaIFIS on Twitter or visit our Facebook fanpage. • July 5: Launching new brand “CrediFamiglia” • July 10: ABI Assembly, 10:00am Palazzo dei Congressi - Rome • July 10: Event Corriere Innovazione “Turismi” 18:00 Molo IV - Trieste • July 11: “Social Minds:’’ The use of Social Media by Italian Banks” – 9:30am, Palazzo delle Stelline, Corso Magenta 61 (Milan). • July 11: 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. • July 16: Launching new brand “Credi Impresa Futuro” • July 17: Banca IFIS Board of Directors • August 8: Board of Directors and approval of interim results - 2Q • From 5 to 8 September: Festival of Politics in Mestre - Pellicani Foundation • From 6 to 8 September: The European House Forum Ambrosetti “The scenario of today and tomorrow for competitive strategies” at Villa d’Este in Cernobbio (Como) • September 19: NPL meeting Villa Furstenberg (Mestre)
  15. 15. 015 follow us on: 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
  16. 16. 016 follow us on: 10 Contacts Analyst coverage Follow us on Contacts Marco Cavalleri Banca Akros Website: Website of 2012 financial statements: Investor Contact: Mara Di Giorgio Email: Tel. +39 041 502 7623 Mark Thomas Edison, Investment Research