FinecoBank Q1 2025 presentation: Net profit jumps 11.7% amid strong client growth

Introduction & Market Context

FinecoBank Banca Fineco SpA (BIT:FBK) presented its first quarter 2025 results on May 7, 2025, reporting strong growth in net profit and client acquisition despite increased operating costs. The Italian financial services company, which combines banking, brokerage, and investing services, saw its stock close at €18.105 on May 6, 2025, down 1.01% ahead of the earnings announcement.

The company’s presentation highlighted its diversified business model, which has proven resilient in the current volatile market environment. CEO Alessandro Foti emphasized the company’s strong performance across all business segments, particularly in investing and brokerage.

As shown in the following executive summary, FinecoBank delivered solid growth across key metrics:

Quarterly Performance Highlights

FinecoBank reported a net profit of €164.2 million for Q1 2025, representing an 11.7% increase year-over-year. This growth came despite a modest 0.7% increase in revenues to €329.3 million and a 10.0% rise in operating costs to €87.2 million. The company maintained a healthy cost/income ratio of 26.5%.

The detailed profit and loss statement reveals the drivers behind this performance:

The company’s revenue mix showed significant shifts, with net interest income declining by 9.9% to €161.2 million, offset by strong growth in net commissions (+9.2% to €140.4 million) and trading profit (+56.3% to €27.3 million). This diversification helped FinecoBank maintain overall revenue growth despite interest rate pressures.

Investing revenues have been particularly strong, as illustrated in the following chart:

The investing segment has benefited from the growing contribution of Fineco Asset Management (FAM), which now represents 38.2% of total AUM, up from 34.9% in Q1 2024. The company’s advanced advisory services have also shown robust growth, with stocks reaching €34.5 billion, representing 52% of total assets.

Strategic Initiatives

Client Acquisition and Growth

FinecoBank reported strong client acquisition in Q1 2025, with 55,000 new clients representing a 39.8% increase year-over-year. This momentum continued into April with 15,126 new clients, up 30.8% compared to the same month last year. The company attributed this growth to its high-quality offerings rather than aggressive short-term rate marketing campaigns.

The following chart illustrates the company’s growth trajectory and client acquisition:

The company has been particularly successful in the private banking segment, outperforming the Italian Private Banking Association’s growth rate with a 209.0% increase since 2016. The average total financial assets per private client stands at €1.0 million.

Technology and Innovation Focus

FinecoBank positions itself as a profitable FinTech bank, with information and communication technology (ICT) as a key business driver. The company emphasizes hyperautomation, cost efficiency, data-driven decision making, and omnichannel capabilities to enhance its platform scalability and operating leverage.

The company is also implementing an Innovation and Simplification Project aimed at enhancing the client experience across all business segments. Key initiatives include the evolution of FinecoX for brokerage, expanding Fineco Asset Management’s ETF strategy, implementing faster onboarding for banking clients, and integrating a Copilot on the PFA platform X-Net.

Sustainable Growth and ESG Initiatives

FinecoBank has demonstrated consistent long-term growth, with a 10-year compound annual growth rate of 11% in total financial assets and 16% in client numbers, while improving its cost/income ratio by 19.1 percentage points. This sustainable growth approach is central to the company’s strategy.

The company has also integrated ESG principles into its business strategy, with a comprehensive multi-year plan for 2024-2026. FinecoBank has committed to achieving net-zero emissions by 2050 with intermediate targets and has implemented an Environmental Management System certified under the EU Eco-Management and Audit Scheme. The company is also a signatory of the UN Principles for Responsible Banking and a participant in the UN Global Compact.

Forward-Looking Statements

For 2025, FinecoBank expects continued strong performance despite market volatility. The company provided the following guidance:

• Investing revenues: every €1 billion change in AUM is expected to generate around €4.5 million in revenues from May 1st until year-end
• Operating costs: expected growth of around 6% year-over-year in FY25
• Payout ratio: expected in the range of 70-80% for FY25
• Commercial performance: continued strong growth in AUM, deposits, and client acquisition

The company sees significant long-term growth potential, with its current market share of Italian households’ wealth at just 2.3%. This untapped market represents a substantial opportunity for FinecoBank to continue its growth trajectory.

FinecoBank’s Q1 2025 results demonstrate the company’s ability to deliver strong financial performance while investing in future growth. With its diversified business model, focus on technology and innovation, and commitment to sustainability, FinecoBank appears well-positioned to capitalize on the opportunities in the Italian financial services market.

Full presentation:

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