illimity is a new paradigm bank designed specifically for the ever growing, highly attractive Italian SME market; credit skills and technology innovation are the two main enablers of our strategy.
In just over 2 years we have laid solid foundations which now form part of a structured business that is ramping up.
Our 2021-25 Strategic Plan makes our investment case even stronger and underlines the important growth ahead of us.
We focus on only a few, large, attractive and underserved segments of the Italian SME market where we hold a significant market position through sustainable competitive advantages: SME Performing loans, SME Unlikely-To-Pay and corporate NPL.
Our people are our principal force. illimity enjoys a passionate and cohesive management team and proven ability to attract talent from over 200 different organizations of which 70% are from non-banking sectors.
We believe technology is the main driver of change and one of the main differentiating factors to compete, so we created a unique IT architecture that is fully digital, fully modular and fully in-cloud.
We are ESG native and we act with responsibility. ESG principles are natively integrated in our business model and in all our activities. Find Out More
We are already profitable with 8% ROE for the first quarter 2021 expected at 10% for the year 2021, increasing significantly to 15% by 2023 and 20% by 2025.
Italian SMEs specialist partner created to support and contribute to the growth of Italian SMEs with demonstrated potential.
Unlikely-to-Pay corporate exposures with potential to return to a performing status.
We expect the market of single name and UTP Portfolios transactions to increase significantly in size and dynamism in upcoming years and to represent a strong booster for our growth.
Expected cumulated UTP transactions 2021-25 (GBV)
Supporting SMEs with strong industrial and growth potential, also through external growth strategies.
Structured Finance (including financing solutions with public guarantees)
Investment in high yield corporate bonds in industries we are specialists
We expect a robust and stable demand for structured and acquisition finance transactions.
Performing loans to non-financial companies with a turnover >€10mln
Supporting financing needs of Italian supply chains and industrial districts.
Supply Chain Financing
We see further room for significant growth in factoring in forthcoming years.
Total Turnover in Italy
Supporting SMEs with integrated solutions to access capital markets, finance their growth, optimise capital structure, and mitigate interest rate and currency risks.
Debt capital markets, mini bonds
Equity capital market, Nomad, IPO
Hedging products for clients
*For sources refer to 2021-25 Strategic Plan Presentation
Highly scalable organization completed by 2021
Operating leverage to become strongly visible from 2021 as volumes grow
Increasing contribution to profitability from the Turnaround business in terms of profit from credit revaluation events throughout the Plan horizon
Leading Italian player in the Corporate Distressed Credit industry, specialised in a number of attractive market segments and fully integrated in the industry’s value chain: investment, senior financing of other NPE investors, servicing, and remarketing of real estate assets and capital goods.
Corporate Portfolios: Secured, Unsecured & Leasing
Special Situations Energy
Special Situations Real Estate
Financing solutions to non-bank NPE investors
Key role in structuring and financing credit disposals
Corporate Distressed Credit Management
Real Estate and Renewable Energy Advisory
Remarketing of capital goods & Real Estate properties
We operate in a large and dynamic addressable market worth ~€180bn of expected cumulated transactions between 2021-2025 in Italy.
Strong volume growth to drive further profit progression
Lean operating structure to ensure the ongoing high profitability is maintained
Increasing contribution from neprix leveraging on third-party mandates, with the first step being the Joint Venture with Apollo
illimity offers a complete range of new generation direct banking services for individuals and small corporates.
Secure Retail Funding to illimity Group.
Consolidate the leadership of HYPE in Italy through the evolution to a Money Management Hub leveraging on the integration of illimity’s Open banking skills and technology, and new products.
The first Direct Bank for Small Corporates: a huge market potential.
B-ILTY offers a digital easy access to lending, fast response and specialised products together with high value-added services.
The offer is simple, complete and combines technology with a human touch, ensuring a quick time-to-yes, reliability and scalability.
Digital Transaction Products: current accounts, payments, PSD2
Lending: factoring, short-term, mid-term
Value Added Services: insurance, digital CFO, ERP integration
Note: (1) Small Office Home Office
We expect to serve 31k clients by 2025 and generate €3.7bn cumulated business origination over the Plan in 2021-25.
SGR is the illimity group’s asset management firm, specialising in alternative investments, at the service of institutional investors and companies.
illimity SGR sets up funds that meet the needs of investors, in terms of reliability and risk management, with a dynamic and innovative approach. Thanks to the open business model, the company intercepts and develops new products in line with the needs of the market by offering tailor-made solutions and quality services. Through highly specialised professionals, illimity SGR creates long-term value by providing investors with expertise and innovative strategies that support Italian SMEs in their sustainable development path.
Commitment to maintain a robust capital base over the Plan
Flexible pay-out between 20-30%. First dividend on net profit for 2022 with pay-out of 20%
A high technological bank focused on Italian SMEs and digital financial services with a distinctive business model
- Focus on most attractive segments of Italian SMEs market
- Unique market positioning through sustainable competitive advantages
- Strong revenue growth with a unique and balanced mix of income sources
- Visible operating leverage gains across all our Divisions
- Unique IT architecture generating profit via IP license
- One of the highest CET1 ratios in the banking industry
- Strong liquidity ratios and effective ALM
- Resilient portfolio quality backed by very selective underwriting, high proportion of loans with public guarantees or credit insurance
- Above-industry ROE target, with contained risk profile
- Strong internal capital generation to support business growth
- Flexible dividend policy with dividend pay-out ranging between 20-30%
- Sustainability embedded in every aspect of activity
- ESG-based metrics integrated in underwriting practice
- ESG values integrated into long-term incentive scheme
Targeting above-industry profitability by consolidating our presence in large and growing markets with a unique and sustainable business model