Banca IFIS : Banca Ifis has strengths to withstand the challenges of 2025

In 2025, Banca Ifis will open a new chapter in its long family history with a new strategic plan. The plan will be presented to investors mid-year by chief executive Frederick Geertman, who is expected to re-appointed by the AGM for the next few years.
Banca Ifis is an Italian family-run bank that has built a franchise around specialised factoring and leasing offerings for Italian SMEs, while also being one of the pioneers in the purchase and management of non-performing loan portfolios in Italy.
It successfully completed its D.O.E.S 2024 strategic plan, meeting all its financial targets while adapting to the interest rate situation by reducing its sensitivity. And the bank is therefore set to kick off 2025 in the best possible conditions, with a stock of surplus capital, after an already generous dividend distribution policy and a stock of overlay provisions. The challenge will clearly be to adjust to the less buoyant economic environment, which will have an impact on loan demand and asset quality, to relaunch the NPL business by finding a partner, and thereby to offset this loss of profitability.
Confident in the company's continued financial strength, we confirm our stable credit rating. Moody's, on 26 of November, affirmed its ratings and stable outlook.
Banca Ifis has issued five bonds: a Tier 2 bond due 2027 ('Ba3') and four senior preferred bonds with IG ratings ('Baa3'). The SP IFIM notes offer high yields in absolute terms of over 4%. In relative terms, the bank's unique business model limits direct comparisons: NPL specialists may offer higher yields, but they have HY ratings and do not have bank status (and hence banking activities); in contrast, IFIM offers spread pick-ups vs. Italian and Greece commercial banks.