Shares of the Italian Banca IFIS rise on capital increase
Milan, December 28 (Reuters) – Banca IFIS shares rose up to 6% on Tuesday after the small Italian bank announced that its parent company was completing a proposed move of its registered office to Switzerland in January and increased capital ratios from IFIS would raise.
Banca IFIS is 50.5% owned by La Scogliera, a holding company of the Italian Fürstenberg family. IFIS chairman Sebastien Egon Fürstenberg had decided for personal reasons to relocate the legal seat of La Scogliera from Mestre in Venice to near Lausanne in Switzerland after seeking the decision of the Italian tax authorities for this decision.
IFIS said late Monday the move had taken effect and would be completed by the end of January. The costs of around 10 million euros have already been taken into account in the company’s guidance for 2021.
Register now for FREE unlimited access to Reuters.com
to register
The move, approved by La Scogliera shareholders in June, could add around 4.5 percentage points to IFIS ‘core capital and reverse the negative impact related to European Union banking regulations.
Under the rules, IFIS was forced to consolidate itself in La Scogliera for regulatory reasons and then withdraw from its equity stakes held by minority investors.
“The news is positive for IFIS,” said Equita SIM analyst Andrea Lisi.
“While management has ruled out any extraordinary capital payouts, a CET1 ratio of around 16% will remove any uncertainty about the capital buffers needed to support growth and provide good dividend transparency for years to come,” he added and estimated an average dividend yield of around 6.5%.
Ifis shares rose 5.6% in late afternoon trading, making them one of the top winners on the Milan Stock Exchange (.FTITLMS).
IFIS, which operates a non-performing loan business and provides specialized loans to small businesses, will present a new business plan in February under new chairman Frederik Geertman.
“The potential capital gain was one of the main reasons we decided to include Banca IFIS in our shortlist for Italian medium-sized companies,” said Manuela Meroni, analyst at Intesa Sanpaolo.
I
Register now for FREE unlimited access to Reuters.com
to register
Reporting by Andrea Mandalà, editing by Valentina Za and Bernadette Baum
Our standards: The Thomson Reuters Trust Principles.