FinecoBank Q2 2025 slides: Flat profit amid revenue dip, client growth accelerates

Published 31/07/2025, 06:54
FinecoBank Q2 2025 slides: Flat profit amid revenue dip, client growth accelerates

Introduction & Market Context

FinecoBank Banca Fineco SpA (BIT:FBK) presented its second quarter 2025 results on July 31, 2025, revealing a mixed financial performance characterized by flat profits despite revenue challenges, offset by accelerating client acquisition and net sales growth. The Italian banking and brokerage firm’s stock closed at €19.07 on July 30, 2025, and saw a 1.76% increase during the following trading day after the presentation.

Executive Summary

FinecoBank reported 1H25 net profit of €317.8 million, nearly flat year-over-year (-0.8%), while revenues declined 2.1% to €644.4 million. Despite these challenges, the bank demonstrated strong commercial momentum with total net sales reaching €6.6 billion (+32% y/y) and new client acquisition surging 35.5% compared to 1H24. The company maintained solid capital and liquidity positions, with a CET1 ratio of 23.5% and a leverage ratio of 5.20%.

As shown in the following executive summary slide, operating costs increased 8.0% year-over-year to €173.1 million, or 5.9% excluding costs related to business growth acceleration:

Quarterly Performance Highlights

FinecoBank’s financial performance showed resilience despite revenue headwinds, with non-financial income growing 12.0% year-over-year to €330.4 million, helping to partially offset a 13.3% decline in net financial income. The company’s investing and brokerage segments performed particularly well, with year-over-year growth of 10.0% and 20.5% respectively.

The following slide details the company’s profit and loss statement, highlighting the shift in revenue mix toward fee-generating businesses:

Investing revenues continued to show positive momentum, reaching €97.4 million in Q2 2025 and €191.9 million for 1H25. This growth was supported by increasing assets under management, despite temporary pressure from negative market performance in March/April 2025.

The company’s investing revenue growth is illustrated in this chart:

Fineco Asset Management (FAM) demonstrated strong performance, with retail net sales of €1.8 billion in 1H25, representing 69% of total net sales. FAM’s retail assets under management reached €11.6 billion by June 2025, accounting for 38.7% of Fineco’s total AUM.

The following slide shows FAM’s contribution to Fineco’s growth strategy:

Brokerage revenues showed structural growth, with average monthly revenues increasing from €11.3 million in 2019 to €21.4 million in 1H25. This growth was supported by an expanding base of active investors, which grew from 89% in FY19 to 92% in 1H25.

As shown in the following chart, brokerage activity has established a higher floor of revenues:

Strategic Initiatives

FinecoBank’s growth strategy is centered around accelerating client acquisition, with 100,000 new clients added in 1H25 (+35.5% vs 1H24). The company attributes this growth to its distinctive offer, strong digital acquisition capabilities, and exceptional word-of-mouth, as evidenced by its industry-leading Net Promoter Score of 44 compared to an industry average of 19.

The following slide illustrates the company’s client acquisition momentum and customer satisfaction metrics:

Net sales showed strong growth, reaching €6.6 billion in 1H25, with assets under management (AUM) net sales growing 80% year-over-year to €2.6 billion. The company highlighted a healthy underlying growth in deposits (+34%) and identified opportunities to shift maturing bonds into higher-value assets.

The net sales growth trajectory is shown in this slide:

A key strategic initiative is the implementation of an AI-powered platform to enhance the productivity and effectiveness of Fineco’s financial advisors. The AI Assistant, which includes portfolio building, search tools, and CRM capabilities, is already being used by over 2,500 advisors with more than 1,000 unique weekly logins.

The following slide details the AI implementation strategy:

Forward-Looking Statements

For 2025, FinecoBank provided guidance indicating that operating costs are expected to grow around 6% year-over-year, with the cost/income ratio remaining comfortably below 30%. The company expects a payout ratio in the range of 70-80% for FY25.

In terms of revenue guidance, the company noted that every €1 billion change in assets under management generates approximately €2.9 million in management fees. Banking fees are expected to decrease slightly in FY25 due to new regulations on instant payments, while brokerage revenues are projected to remain strong.

The company’s long-term strategy focuses on sustainability, transparency, efficiency, and innovation, as illustrated in the following slide:

FinecoBank emphasized its unique positioning for long-term growth, highlighting the potential to gain additional market share of Italian households’ wealth. The company’s historical performance shows consistent growth in total financial assets, client numbers, and profitability, suggesting a sustainable growth trajectory.

As shown in the following chart, the company has demonstrated its ability to scale operations effectively over time:

Competitive Industry Position

FinecoBank continues to strengthen its position in the Italian Private Banking market, growing its market share from 2.9% in 2016 to 5.4% in 1H25. The company is also exploring new revenue opportunities in the ETF business, with ETF assets growing 11.6% to €13.4 billion.

The company’s lending portfolio remains high quality, with a slight increase in the NPE ratio from 0.53% in June 2024 to 0.58% in June 2025. Solvency and liquidity ratios remain well above regulatory requirements, with a CET1 ratio of 23.5% (vs. requirement of 8.68%) and an LCR of 912% (vs. requirement of 100%).

The following slide illustrates the company’s strong capital and liquidity position:

In conclusion, while FinecoBank faced revenue challenges in the first half of 2025, the company’s accelerating client acquisition, strong net sales growth, and strategic focus on investing and brokerage services position it well for future growth. The implementation of AI-powered tools for financial advisors and the continued expansion of Fineco Asset Management further strengthen the company’s competitive position in the Italian banking and investment market.

Full presentation:

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