BANKS

Banca Ifis initiates strategic review on NPL portfolio

All options for 'portfolio deconsolidation' under consideration. ArecNeprix and Abilio divestments ready. Profit of 31 million in the quarter

by L. D.

7 May 2026

3' min read

Translated by AI

Versione italiana

3' min read

Translated by AI

Versione italiana

Banca Ifis opens 2026 by marking an important acceleration in the group's transformation path, following the acquisitions of illimity Bank and Euclidea SIM (now Fürstenberg Sim). In a transitional quarter in which consolidated net profit attributable to the parent company stood at 31.3 million euro, the board of directors resolved to start the strategic review of the Npl business, with the aim of "evaluating all options for the deconsolidation of the proprietary portfolio", as the bank explained in a note.

It is a choice that is in line with the evolution of the regulatory framework, and in particular with the changes introduced by the application of Calendar provisioning on less significant banks, which require greater capital provisioning on impaired loans. At the same time, this confirms the group's desire to focus increasingly on commercial banking, specialised corporate lending and new businesses with higher capital absorption efficiency.

The objective is to 'continue its growth path and the maintenance of its high levels of capitalisation and shareholder remuneration, in a logic of consistency and financial sustainability over the long term,' the bank explains.

Ready divestment of ARECneprix and Abilio

In parallel, the valorisation of non-core assets is proceeding as planned. Indeed, the bank is at an advanced stage of negotiations for the sale of ARECneprix and Abilio, two subsidiaries considered non-strategic with respect to the new group design. The divestments are expected to be finalised by the second quarter of 2026. These transactions constitute 'a key step in the path of strategic focus and simplification of the group's structure', and will tend to make illimity's integration into the group more seamless.

Illimity's contribution

Returning to the numbers, the profit figure incorporates the first positive contribution of illimity, amounting to over EUR 20 million, a sign of how much the operation is beginning to express value within the Banca Ifis perimeter. The contribution was sustained in particular by the Turnaround segment, which compensated for the temporarily lower buoyancy of the Npl business, also linked to the timing and characteristics of portfolio purchase transactions.

The CET1 ratio stands at 13.71% as of 31 March 2026, while a total dividend distribution of EUR 129 million (EUR 2.12 per share) is planned for the 2025 financial year. Of this, EUR 73 million (EUR 1.20 per share) has already been distributed in November 2025, while the remaining EUR 56 million (EUR 0.92 per share) will be paid on 20 May 2026.

Chairman Fürstenberg: 'New path to growth and value creation'

"In 2025 we successfully completed the acquisition of illimity and Euclidea SIM. These were transformative transactions that allowed us to expand the Group's perimeter, strengthening our offering of credit products and financial services: today we can serve businesses even better, but also offer entrepreneurs a modern wealth management to enhance their assets, while to households we will bring an efficient platform of modern and smart payment systems. Today's Board of Directors has initiated a strategic overhaul of the Group which, following the completion of the IPO on illimity Bank and the opportunities arising from it, will see me as Chairman leading a new path of growth and value building, begun in 1983 by my father Sebastien Egon Fürstenberg. The goal is to maintain adequate capitalisation levels, while continuing to ensure significant and consistent remuneration for our shareholders. The project launched concerns the NPL sector - affected, as we know, by an evolution of the regulatory framework that is still in progress - and the possibility of exploring, as of today, the best strategic options for our banking group, which is increasingly focused on specialised credit to companies in our country," said Ernesto Fürstenberg Fassio, Chairman of Banca Ifis.

CEO Geertman: 'Several options to preserve flexibility'

"In the first quarter of 2026, some of our activities - in particular NPL, equity investment and turnaround - show natural quarterly variability. We experienced specific events during the period that will tend to rebalance over the course of the year. 2026 is a year in which to strengthen long-term resilience by pursuing the integration of illimity and perimeter rationalisation. These choices may generate volatility in the results of the coming quarters, but they are fully consistent with the objective of building a solid SME commercial bank, capable of developing new business, and efficient in terms of capital allocation. We confirm our proactive approach to the regulatory and macroeconomic environment. In particular, given the more capital-intensive framework due to calendar provisioning, we have begun a strategic analysis of the NPL business, evaluating various options that allow us to preserve strategic flexibility and returns consistent with the level of risk. Our capital strength and business diversification allow us to tackle this phase with balance, while prioritising attractive returns for shareholders. We remain focused on execution: integration, selective derisking, capital management and business development to support the real economy," says Frederik Geertman, CEO of Banca Ifis.