illimity, the first digital bank in Italy that previously completed a SPAC deal, has distributed its strategic plan for the time period of 2021 to 2025. After reporting net income in 2020 of €31 million following a net loss of €16.1 million in 2019, illimity expects a net profit of €60-€70 million in 2021. By 2025, illimity predicts a net profit of over €240 million.
As has been previously reported, illimity’s revenue is largely generated by its lending activities. The bank intends on focusing more effort on SMEs including:
- performing loans to corporates: a market worth €700 billion that in two years of activity, illimity says it has succeeded in becoming a reference player, disbursing corporate loans of around €1 billion and gaining a key position also in the Acquisition Finance sector;
- unlikely to pay (“UTP”) corporate loans: a rapidly growing market where transactions of over €35 billion are expected to occur between 2021 and 2025 and where illimity is already positioned as a leading operator;
- corporate NPLs: a market where transactions of over €140 billion are forecast to take place between 2021 and 2025 and where illimity says it has already succeeded in becoming one of the largest private investors over the past two years.
illimity has become one of the three largest private investors in distressed credit, according to the bank. Illimity’s “Distressed Credit Division” has launched “neprix,” a special servicing company focussing on the management of corporate distressed loans with unique characteristics in Italy. The Division is also said to be active in providing funding to non-banking investors in distressed loans. For the 2021-2025 period, illimity anticipates purchasing NPL and UTP loans for a total of approximately €3 billion.
illimity states that revenue is expected to increase by an annual average of over 30% in the period 2020-25, reaching over €450 million in 2023 and approximately €660 million in 2025. A gradual rebalancing of the net interest income contribution, from 59% in 2020 to 55% in 2025, is forecasted.
Additional information is available on the illimity website.