Italian neobank Illimity sees profits and loans explode in Q2 2021

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The challenger bank continues to post quarterly growth in earnings, with the latter period up nearly a fifth.

Image source: Corrado Passera / Unlimited

Profitability is something that has long eluded digital banks around the world, but Italian neobank Illimity has just ended one of its most profitable periods to date.

In the first half of 2021, Illimity achieved a profit of 14.9 million euros, up 18% from the previous quarter, which saw the bank generate a net profit of 12.6 million euros, which Also equates to an 85% jump in profits between the first half of 2020 and the first half of 2021.

Before taxes, the bank’s profit is even more impressive. Illimity achieved pre-tax profit of 22.4 million euros in the second quarter of 2021, up 17% from the previous quarter and up 123% from the same period in 2020.

In addition to strong profitability, net customer loans exceeded 2.3 billion euros, a slight increase of 4% compared to the previous quarter, but a jump of 32% compared to the first quarter of 2020.

Although Illimity has a consumer-oriented bank, its main revenue drivers are its SME lending arm and its struggling credit investments and services.

As of June 30, 2021, Illimity held more than 1.2 billion euros in customer loans under the Distressed Credit division, up 18% compared to the same period last year but down by 3% compared to figures released in March of this year.

Earlier this year, the neobank presented its strategic plan, which included a series of short, medium and long term goals for Illimity.

“All the growth levers included in the Plan are going in the right direction: the increase in credit and investment activity, the quality of our portfolios, the scale effect which is becoming more and more visible and the first significant contributions from initiatives launched in 2021. ”said Corrado Passera, CEO and Founder of Illimity.

“During the quarter just ended and in July, we also laid a real operational foundation for the development of initiatives related to the launch of B-ILTY, an innovative digital bank designed for small businesses, and we are finalizing the activities for the launch of the ‘New HYPE’.

In September of last year it was revealed that Illimity was going to buy a 50% stake in the open banking platform owned by Banca Sella HYPE and, judging by the noise, Illimity is starting to mobilize the platform. form.

The partial acquisition, which closed on January 1, 2021, cost Illimity € 140 million and has seen the open banking platform grow by an additional 40,000 customers since January. The products specific to Illimity will go live on the HYPE platform in the third quarter of this year.

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