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Italy's Fineco ups lending income outlook after 2022 profit beat

Italy's Fineco ups lending income outlook after 2022 profit beat
By Reuters
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- Italian digital bank FinecoBank on Tuesday raised its 2023 forecast on profits from the lending business while it guided for flat banking fees, after previously saying they would grow thanks to new customers.

It said it expected an around 80% growth in its net financial income, compared with an increase of at least 70% it had flagged when it reported nine month results.

Fineco's net financial income, a measure of profits reaped from the gap between rates charged on loans and those paid on deposits, more than doubled in the fourth quarter, contributing to a record profit for the full year.

The bank said its 2022 net profit reached 428.8 million euros ($459.0 million), up almost 23% compared to a year earlier, and above an analysts' consensus of 412.2 million, according to Refinitiv SmartEstimate.

Shares rose 2.6% by 1300 GMT outperforming a 1.5% gain in the Italian banking index.

The net financial income in the October to December period stood at 131.6 million euros versus 62.9 million a year earlier.

Banking fees came in at 56.2 million euros in 2022, meeting the company's guidance of more than 50 million euros.

The bank proposed a dividend of 0.49 euro per share, reiterating that it expects this to increase steadily going forward.($1 = 0.9341 euros)

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