Banca Ifis closes the first half of 2026 with a net profit of just 8 million euros, compared to 88 million in the same period last year. A figure which, isolated from the rest of the accounts, might seem like a sharp setback. However, above all, the half-yearly report tells of a group committed to cleaning up the balance sheet, integrating illimity and building a model increasingly focused on business credit.
The result incorporates approximately 30 million euros of adjustments and provisions linked to the internal audit activities started after an inspection by the Bank of Italy. These are costs that immediately reduce the profit, but which serve to increase coverage on credits considered riskier and to strengthen the overall quality of the portfolio.
The numbers of the six-monthly Banca Ifis
The intermediation margin, i.e. the indicator that measures the revenues produced by banking activity, reached 406.5 million euros. Of these, 113.4 million come from the illimity perimeter and 293.2 million from the pre-existing Banca Ifis, compared to the 351 million recorded overall a year earlier.
The interest margin stood at 261.7 million, net commissions at 71.3 million and income from trading and other activities at 73.5 million. Revenues were mainly supported by commercial banking, financial portfolio management and turnaround activities inherited from illimity.
The cost of credit rose to 83.6 million euros. In the first half of the year, 34 million of the 70 million incremental adjustments announced in June were accounted for. The remaining 36 million are expected in the second part of the year, confirming that the next results will also still be affected by the process of strengthening coverage.
The 2026 profit guidance remains between 100 and 110 million euros, but does not include any effects of the sale and deconsolidation of the non-performing loan business. The forecast had been reduced compared to the 170-190 million indicated in February, precisely to take into account the new provisions and the risk reduction process.
Why did profit drop so much
The sharp decrease in profit does not only result from the bank’s reduced ability to produce revenues. A significant part is linked to extraordinary interventions or in any case concentrated in the current phase: new adjustments on loans, harmonization of the evaluation criteria between Banca Ifis and illimity and costs necessary to integrate structures, IT systems and operational activities.
Overall operating costs reached 308.8 million euros, of which 125.4 million related to personnel and 172.5 million to other administrative expenses. True cost synergies will not be visible until 2027, when integration is expected to be completed and duplicate facilities phased out.
2026 should therefore be read as a transition exercise. The bank is bearing the cost of the transformation today, while the economic benefits are postponed until the following year. For investors, the central question is not just how much profit has fallen, but whether the interventions implemented will be sufficient to produce more stable profitability from 2027.
What changes with illimity
Banca Ifis confirms the objective of obtaining 75 million euros of annual synergies from the integration of illimity starting from 2027. The process should be fully completed in the autumn.
An important part of the benefits will come from costs. The divestments of the non-strategic assets Hype, ARECneprix and Abilio, together with the review of the main IT contracts, are expected to produce around 50 million in annual savings. The new partnership with Finomnia aims to simplify the technological infrastructure and reduce the operational complexity of the group.
The remaining opportunities are mainly commercial. Illimity brings expertise in corporate and investment banking, structured finance, capital markets and corporate financial services. Banca Ifis can add a broader customer base, a consolidated presence among SMEs and activities specialized in factoring and leasing.
The new Fürstenberg division will also have to strengthen the offer in private banking, i.e. in services intended for the management of the assets of the wealthiest customers. The goal is to build a group less dependent on non-performing loans and more exposed to recurring revenues generated by businesses, entrepreneurs and families.
Commercial banking becomes the driving force of the group
Commercial & Corporate Banking confirms itself as the main industrial pillar of Banca Ifis. The sector has overall loans of approximately 9.6 billion euros, while the activities of Banca Ifis alone generated revenues of 168.3 million.
Factoring remains the first source of revenue with 75.7 million, followed by Corporate Banking & Lending with 59.4 million and leasing with 33.3 million.
The group’s strategy is therefore clear: progressively reduce the weight of the riskiest businesses and concentrate capital and skills in financial services to companies. Success will depend on the ability to transform illimity’s customers and technologies into new financing, commissions and cross-selling opportunities.
Capital and liquidity remain strong
Despite the reduced profit, the capital position remains one of the strong points of the half-year report. The CET1 ratio, the main indicator of a bank’s ability to absorb any losses, rose to 13.4% from 13% at the end of 2025 and is higher than the regulatory requirement of 9.9%.
The Total Capital Ratio increased from 15.3% to 18.4%. Available liquidity is approximately 2.1 billion euros, while the LCR index is around 550%
Profitability in 2026 will be penalized by provisions and transformation costs, but capital and liquidity provide the bank with the space needed to complete the integration.
The real test will come from 2027: Banca Ifis will have to demonstrate that the 75 million promised synergies will not remain just an industrial objective, but will translate into greater profits, lower costs and sustainable remuneration for shareholders.
