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1. Company Snapshot

1.a. Company Description

FinecoBank Banca Fineco S.p.A. provides banking and investment products and services.The company operates through Banking, Brokerage, and Investing segments.The company offers banking services, including current account and deposit services, payment services, mortgages, and personal loans, as well as debit, credit, and prepaid cards; and brokerage services comprising order execution services on behalf of customers with direct access to global equity markets, as well as to trade on currencies, indices, shares, bonds, commodities, futures, options, bonds, ETFs, and certificates.


The company also provides asset management services, such as placement and distribution services of various products, including mutual funds and SICAV sub-funds, and insurance and pension products, as well as investment advisory services.It serves primarily through a network of personal financial advisors, and online and mobile channels.As of December 31, 2021, the company operated 424 financial shops.


The company was founded in 1999 and is based in Reggio Emilia, Italy.

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1.b. Last Insights on FBK

FinecoBank Banca Fineco S.p.A. has benefited from a favorable market environment, with European markets showing optimism due to easing trade tensions and hopes for U.S. interest rate cuts. The company's appeal as a dividend stock has grown, driven by its reliable payout history and strong fundamentals. Recent market volatility has further heightened investor interest in stable income sources like FinecoBank's consistent dividend payouts. Additionally, the company's solid positioning in the European banking sector has been bolstered by its attractive dividend yield, making it an appealing option for investors seeking to mitigate volatility.

1.c. Company Highlights

2. FinecoBank's Q3 2025 Earnings: A Strong Performance

FinecoBank reported a robust financial performance in Q3 2025, with revenues reaching EUR 969.6 million, supported by non-financial income, and a net profit of EUR 480.5 million. The EPS came out at 0.52, significantly beating estimates of 0.2425. The company's net financial income has already bottomed out and fully absorbed the decreasing interest rates, up around 2% versus the second quarter. Operating costs were well under control at EUR 259.9 million, increasing by around 6% year-on-year, excluding costs related to business growth, resulting in a cost-income ratio of 26.8%.

Publication Date: Nov -14

📋 Highlights
  • Net Profit & Revenue Growth: Net profit EUR 480.5M, revenues EUR 969.6M, driven by 10% Y/Y investing and 16.5% Y/Y brokerage growth.
  • Cost Efficiency: Operating costs rose 6% Y/Y to EUR 259.9M, with a 26.8% cost-income ratio, reflecting strong operating leverage.
  • Client & Sales Expansion: Added 145,000 new clients (+33% Y/Y) and recorded EUR 9.4B net sales (+36% Y/Y).
  • Capital Strength: Net common equity Tier 1 ratio at 23.9%, leverage ratio of 5.11%, with 2025 payout ratio of 70-80%.
  • AI & Strategic Growth: AI implementation aimed at 20% productivity boost and EUR 32M record brokerage in October, excluding EUR 5M BTP Valore impact.

Revenue Growth Drivers

The company's revenue growth was driven by a strong performance in investing and brokerage, with investing up 10% year-on-year and brokerage up 16.5% year-on-year. The addition of around 145,000 new clients, up 33% year-on-year, and net sales of EUR 9.4 billion, up 36% year-on-year, also contributed to the revenue growth. As Alessandro Foti mentioned, "Our step-up in growth trajectory is materializing, with an impressive acceleration of new clients and a 36% increase in total net sales year-on-year."

Capital Position and Outlook

FinecoBank's capital position remains strong, with a net common equity Tier 1 ratio at 23.9% and a leverage ratio of 5.11%. The company has improved its outlook for 2025, with net financial income bottoming earlier than expected, and expects all business areas to contribute positively to revenue growth in 2026. The expected payout ratio for 2025 is 70-80%, with a leverage ratio above 4.5%.

Valuation Metrics

Considering FinecoBank's current valuation metrics, the P/TBV ratio stands at 5.85, and the Dividend Yield is 3.45%. With the company's strong capital position and growth prospects, these metrics indicate a reasonable valuation. Analysts estimate next year's revenue growth at 6.3%, which is slightly higher than the current valuation implies.

Growth Initiatives

The company is planning to launch an efficient and pervasive AI implementation to boost its network productivity and deliver better quality service to clients. FinecoBank is also exploring new revenue opportunities in the ETF space, with ETFs now accounting for half of the assets under custody net sales. The rollout of the company's Germany project is expected to start by the end of 2026.

3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.17%)

6. Segments

Banking and Related Activities

Expected Growth: 6.17%

FinecoBank's 6.17% growth in Banking and Related Activities is driven by increasing demand for online banking services, expansion of investment products, and strategic partnerships. Additionally, the bank's focus on digital transformation, cost optimization, and strong risk management practices have contributed to its growth.

7. Detailed Products

Current Accounts

FinecoBank's current accounts offer a convenient and flexible way to manage daily finances, with features such as online banking, mobile banking, and debit cards.

Savings Accounts

FinecoBank's savings accounts provide a safe and secure way to save money, with competitive interest rates and flexible access to funds.

Investment Products

FinecoBank's investment products offer a range of options for investors, including stocks, bonds, ETFs, and mutual funds, with access to expert research and analysis.

Mortgage Loans

FinecoBank's mortgage loans offer competitive rates and flexible repayment terms, with options for fixed-rate and variable-rate loans.

Personal Loans

FinecoBank's personal loans offer flexible repayment terms and competitive interest rates, with options for unsecured and secured loans.

Credit Cards

FinecoBank's credit cards offer rewards, cashback, and other benefits, with competitive interest rates and flexible repayment terms.

Insurance Products

FinecoBank's insurance products offer a range of options for life insurance, home insurance, and other types of coverage, with competitive rates and flexible policies.

Wealth Management

FinecoBank's wealth management services offer personalized investment advice and portfolio management, with access to expert financial advisors.

8. FinecoBank Banca Fineco S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

FinecoBank's services are highly specialized, making it difficult for substitutes to emerge. However, the rise of fintech companies and digital banking platforms poses a moderate threat.

Bargaining Power Of Customers

FinecoBank's customers have limited bargaining power due to the bank's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

FinecoBank has a diversified supplier base, reducing the bargaining power of individual suppliers. The bank's strong financial position also gives it negotiating power.

Threat Of New Entrants

The Italian banking industry has high barriers to entry, including regulatory hurdles and capital requirements, making it difficult for new entrants to compete with FinecoBank.

Intensity Of Rivalry

The Italian banking industry is highly competitive, with many established players competing for market share. FinecoBank faces intense rivalry from other banks and fintech companies.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.05%
Debt Cost 8.08%
Equity Weight 53.95%
Equity Cost 8.68%
WACC 8.41%
Leverage 85.36%

11. Quality Control: FinecoBank Banca Fineco S.p.A. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Banca Generali

A-Score: 7.3/10

Value: 5.0

Growth: 6.1

Quality: 8.5

Yield: 8.8

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Unicaja Banco

A-Score: 7.1/10

Value: 7.5

Growth: 3.4

Quality: 7.1

Yield: 8.1

Momentum: 10.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
FinecoBank

A-Score: 7.0/10

Value: 3.6

Growth: 7.8

Quality: 8.8

Yield: 6.9

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Banca Sondrio

A-Score: 6.8/10

Value: 6.7

Growth: 4.9

Quality: 6.1

Yield: 8.8

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
BPER Banca

A-Score: 6.7/10

Value: 6.6

Growth: 5.2

Quality: 6.2

Yield: 8.1

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Mediobanca

A-Score: 6.7/10

Value: 5.5

Growth: 5.1

Quality: 7.1

Yield: 10.0

Momentum: 6.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.4$

Current Price

20.4$

Potential

-0.00%

Expected Cash-Flows