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1. Company Snapshot

1.a. Company Description

illimity Bank S.p.A. provides private banking, and investment and trading services in Italy.The company operates through four divisions: Distressed Credit, Growth Credit, Investment Banking, and b-ilty.The Distressed Credit division is involved in the purchase of secured and unsecured corporate distressed loans on primary and secondary markets; provision of financing services primarily in the form of senior financing to investors in distressed loans; and management of corporate non-performing loans portfolios and underlying assets.


The Growth Credit division is involved in the financing of the supply chains of the operators of Italian chains and industrial districts through the activity of recourse and non-recourse purchasing of customers' trade receivables; and financing to businesses; and financing solutions for acquisition activities.It also engages in the purchase of loans that are classified as unlikely-to-pay.The Investment Banking division operates in capital markets; implements complex financial transactions for the bank and companies; and provides corporate solutions, which invests in corporate bonds and alternative debts, as well as offers solutions to SMEs and Mid Caps to hedge market risks.


The b-ilty division offers digital banking and lending products and services to business customers.Its products include deposits and current accounts; and account aggregator services, as well as digital credit and insurance products.The company also manages the assets of closed end alternative investment funds, own funds, and third-party institutional investors funds.


illimity Bank S.p.A. is headquartered in Milan, Italy.

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1.b. Last Insights on ILTY

Illimity Bank S.p.A.'s recent performance was driven by strong asset growth, strategic ventures, and a resilient business model. The company's ability to navigate challenges in net interest income demonstrates its adaptability and financial discipline. Additionally, the European market's positive sentiment, fueled by optimism around a potential EU-U.S. trade deal, has created a favorable environment for growth-oriented investments. This trend is expected to continue, with penny stocks, including Illimity Bank, offering compelling opportunities for investors seeking value at lower price points.

1.c. Company Highlights

2. Transcript Summary

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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 (4.03%)

6. Segments

Distressed Credit

Expected Growth: 3.5%

The 3.5% growth in Distressed Credit at illimity Bank S.p.A. is driven by increasing demand for non-performing loan (NPL) management, regulatory pressures on banks to clean up balance sheets, and illimity's specialized expertise in credit recovery. Additionally, the Italian banking sector's high NPL ratio and illimity's strong relationships with major banks contribute to this growth.

Growth Credit

Expected Growth: 4.5%

The 4.5% growth of Growth Credit from illimity Bank S.p.A. is driven by increasing demand for digital lending solutions, expansion into new markets, and strategic partnerships. Additionally, the bank's focus on SMEs and its innovative credit scoring model contribute to its growth. Furthermore, the Italian government's support for SMEs and the country's economic recovery also play a role in driving growth.

Digital

Expected Growth: 5.0%

Illimity Bank's Digital segment growth of 5.0% is driven by increasing adoption of online banking, mobile payments, and digital lending platforms. Additionally, investments in digital infrastructure, partnerships with fintech companies, and a growing demand for digital financial services among Italian consumers contribute to this growth.

Investment Banking

Expected Growth: 3.0%

Illimity Bank S.p.A.'s 3.0% growth in Investment Banking is driven by increasing demand for M&A advisory services, expansion into new markets, and a strong pipeline of ECM transactions. Additionally, the bank's focus on digital transformation and innovation has improved operational efficiency, enabling it to capitalize on growth opportunities.

B-ilty

Expected Growth: 4.0%

B-ilty's 4.0 growth driven by increasing demand for digital lending solutions, expansion into new markets, and strategic partnerships. Illimity Bank's strong brand and expertise in credit management also contribute to growth. Additionally, the platform's ability to provide fast and flexible financing options to SMEs, coupled with its advanced risk assessment capabilities, further fuels growth.

Savings Management Company

Expected Growth: 3.8%

Savings Management Company's 3.8% growth is driven by increasing demand for digital wealth management solutions, strategic partnerships with fintech companies, and expansion into underserved markets. Additionally, illimity Bank's strong brand reputation and robust risk management practices have contributed to the company's growth.

7. Detailed Products

Corporate Banking

Illimity Bank S.p.A. offers a range of corporate banking services, including cash management, trade finance, and lending solutions, to support the financial needs of businesses.

Factoring

Illimity Bank S.p.A. provides factoring services, allowing businesses to convert their outstanding invoices into immediate cash, improving their liquidity and reducing credit risk.

Leasing

Illimity Bank S.p.A. offers leasing solutions for businesses, providing an alternative to traditional financing methods for equipment, vehicles, and other assets.

Real Estate Financing

Illimity Bank S.p.A. provides financing solutions for real estate projects, including construction loans, bridge loans, and permanent financing.

Digital Banking

Illimity Bank S.p.A. offers digital banking services, allowing individuals and businesses to manage their finances online, including account management, payments, and transfers.

Treasury Services

Illimity Bank S.p.A. provides treasury services, including foreign exchange, interest rate hedging, and commodity hedging, to help businesses manage their financial risks.

8. illimity Bank S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Illimity Bank S.p.A. is medium due to the presence of alternative financial institutions and digital payment systems. However, the bank's strong brand reputation and customer loyalty mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Illimity Bank S.p.A. due to the bank's strong market position and limited customer concentration. Customers have limited negotiating power, and the bank has a diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Illimity Bank S.p.A. due to the presence of a few large suppliers of technology and services. However, the bank's strong financial position and diversified supplier base mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low for Illimity Bank S.p.A. due to the high barriers to entry in the banking industry, including regulatory requirements and capital requirements. New entrants would face significant challenges in competing with established players like Illimity Bank.

Intensity Of Rivalry

The intensity of rivalry is high for Illimity Bank S.p.A. due to the presence of several established players in the Italian banking industry. The bank faces intense competition in terms of pricing, product offerings, and customer service.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 59.65%
Debt Cost 9.40%
Equity Weight 40.35%
Equity Cost 9.40%
WACC 9.40%
Leverage 147.84%

11. Quality Control: illimity Bank S.p.A. passed 1 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
Crédit Agricole

A-Score: 6.7/10

Value: 9.1

Growth: 3.9

Quality: 6.1

Yield: 5.6

Momentum: 10.0

Volatility: 5.7

1-Year Total Return ->

Stock-Card
Aktia

A-Score: 6.7/10

Value: 4.8

Growth: 4.6

Quality: 4.9

Yield: 10.0

Momentum: 6.5

Volatility: 9.7

1-Year Total Return ->

Stock-Card
BCJ

A-Score: 6.4/10

Value: 5.9

Growth: 6.3

Quality: 5.1

Yield: 5.0

Momentum: 8.5

Volatility: 7.3

1-Year Total Return ->

Stock-Card
Walliser

A-Score: 6.3/10

Value: 4.1

Growth: 4.9

Quality: 4.9

Yield: 5.6

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

Stock-Card
Nationwide

A-Score: 5.4/10

Value: 8.0

Growth: 5.7

Quality: 4.5

Yield: 0.0

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

Stock-Card
illimity Bank

A-Score: 4.4/10

Value: 9.0

Growth: 2.4

Quality: 3.0

Yield: 1.9

Momentum: 3.0

Volatility: 7.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.04$

Current Price

4.04$

Potential

-0.00%

Expected Cash-Flows