Dear friends of illimity,
2024 was a very busy year, but also a very rewarding one. We continued to grow, both in absolute size, with assets exceeding EUR 8 billion, and in operating profitability, with operating profit up 21% y/y (Net of extraordinary items from both periods).
We have focused our development entirely on credit and investment banking services to Italian SMEs, which has been our most distinctive activity since our inception. This is a very big and fundamental sector for our country.
A market with enormous growth potential, but which slowed down last year: we did our best to support it with over EUR 600 million of new loans disbursed (+18% y/y). We specialised in the development, relaunch and restructuring of SMEs, bringing not only finance and services but also sector expertise and new opportunities.
At the same time, we completed a major strategic repositioning by discontinuing direct investments in distressed loan portfolios, which had contributed significantly to our profits in previous years. This decision was driven by regulatory and commercial factors that were well known and only partially foreseeable a few years ago. We have devoted a significant part of the 2024 results to covering the economic and capital implications of this profound transformation.
We end the year with solid balance sheet ratios (CET1 ratio of 13.9%) and a cash reserve even higher than last year (EUR 1.2 billion): important foundations for future development.
In 2024, as in 2023, we delivered on our commitment to extract value from the investments we have made over time in technologies and in our investee companies. This year, together with the Apax Group, we launched altermAInd, an innovative company operating in the field of artificial intelligence applied to more than just financial services.
Our investee companies represent significant untapped value and a strategic asset for the future growth of the Group. From companies specialised in services for SMEs, such as ARECneprix and illimity SGR, to tech ventures such as Hype, b-ilty, Quimmo and Pehi, and the aforementioned altermAInd.
We strongly believe in the values of sustainability and responsibility towards the environment, the community and the people who work in and with illimity. During the year, we received important awards that confirm our ongoing commitment in this area. Sustainability has never been a trend for us: we believed in it before it became a central issue in the global debate, and we will continue to do so with conviction, without compromising our primary responsibility to our stakeholders.
All of this has been made possible by the illimiters who, with their talent, commitment and entrepreneurial spirit, are building a solid, innovative and forward-looking bank. Their determination and ability to passionately take on the difficult and often unexpected challenges of the world around us make us stronger every day.
After the reporting period, a tender and share exchange offer was announced for our entire share
capital. In addition to ensuring the best possible management, we are committed to empowering our shareholders to make the best possible decisions by assessing each strategic option responsibly and with a long-term vision.
