FinecoBank Beats 2025 Profit Forecast, Hikes Dividend

FinecoBank Posts Strong 2025 Results

FinecoBank announced a 2025 net profit of €647 million, slightly down by 0.8% year-over-year but surpassing market expectations by 1%. The Italian direct bank also proposed a 7% increase in its dividend to €0.79 per share, driven by robust revenue generation and controlled costs.

Financial Performance Overview

Total revenues for the period remained stable at €1,316 million. A significant 13% rise in net non-financial income to €685 million, fueled by a 23% surge in brokerage income, successfully offset an 11% decline in net interest income. Operating costs saw a 7% increase to €356 million due to strategic hiring and investments. The bank maintained a strong capital position with a CET1 ratio of 23.3%.

Market Outlook and Analyst View

Looking ahead to 2026, FinecoBank anticipates growth across all business segments, forecasting a record year for brokerage income and a cost-to-income ratio below 30%. In response to the results, Kepler Cheuvreux reiterated its Buy rating on the stock, setting a price target of €25.40, which suggests a potential 15.6% upside from its current price.

Concluding Outlook

FinecoBank's 2025 performance highlights its resilience, with strong growth in brokerage and investment commissions compensating for lower interest income. The increased dividend signals confidence in its financial health and future prospects, supported by a positive outlook for 2026.

FAQ

Q: What was FinecoBank's net profit for 2025?
A: FinecoBank reported a net profit of €647 million for 2025, which was 1% higher than market expectations.

Q: Did FinecoBank increase its dividend?
A: Yes, the bank proposed a dividend of €0.79 per share, marking a 7% increase compared to the previous year.

Source: Investing.com