Sella Group - positive 2024 results with solid, structural growth in all business areas
The Board of Directors of the parent company Banca Sella Holding today approved the consolidated results at 31 December 2024 of the Sella Group, which have exhibited solid, structural growth in all business segments, built on diversification and balancing of revenue sources and constant attention to the quality of customer relations. In addition, the Group continued its transformation journey to achieve the objectives of the Make an Impact strategic plan, which aims to generate a positive impact on society and the economy. Capital and liquidity ratios remain solid (read the full Press Release).
2024 closed with consolidated net profit of €148.6 million, up compared to the previous year without taking into account non-recurring components and with a 9.8% ROE. Intermediation margin still grew significantly to €1.1 billion (+8.3%), with operating income improving to €327.4 million (up 7.1%).
Global deposits, confirming customers' trust, recorded a €10 billion growth (+17.9% over 2023) and reached €66.5 billion, driven by €7.6 billion of net deposits (+42%). While tight control of credit quality was maintained, alongside the traditional high prudential standards in terms of lending policies, lending also increased by 6.1%, reaching €11.7 billion in contrast to the general downturn affecting the sector. New disbursements amounted to €3.1 billion (+11%).
In the electronic payment systems area, total processed volumes grew to €37.2 billion (+9.3%). In the Open Finance sector, double-digit growth was recorded in recurring revenues (+18.5%) and in counterparties connected to the platform (+49%). The Group also excelled among the best intermediaries in various financial market segments in the role of market maker in the trading of more than 2,000 stocks. In Corporate Investment Banking, 40 deals were concluded including M&A advisory, leveraged & acquisition finance and private debt, making it the best result in the history of this business line.
Payment systems generated total margins of €115.1 million (+5.9%). More specifically, acquiring services (POS and e-commerce) recorded a 9.6% increase in revenues. During 2024, the Group processed approximately 1 billion payment transactions. Open finance platforms generated revenues of €48 million (+11.9% compared to the end of 2023. Recurring revenues at +18.5% also grew significantly, accounting for 75.8% of total revenues.
The Group has confirmed its traditional capital solidity, which is well above the required standards: the CET1 Ratio is 13.80%, the TIER 1 Ratio is 14.05%, and the Total Capital Ratio is 16.05% (they were 13.36%, 13.61%, and 15.47% respectively). The minimum requirements to be met in 2024 were 7.8% for the CET1 Ratio, 9.6% for the Tier 1 Ratio and 11.9% for the Total Capital Ratio.
The performance of the Group's main companies
Banca Sella
Banca Sella closed 2024 reporting very positive results. The net profit was €168.2 million, up 6.9% compared to the €157.3 million of the previous year. ROE stood at 17.1% (it was 18.4%). The traditional capital strength was further improved, with CET1 at 20.68% and Total Capital Ratio at 22.52% (they were 19.27% and 21.78%). Also very positive are the liquidity ratios, which are well above the required thresholds - the LCR is 250.13% and the NSFR is 159.55% (for both the minimum required threshold is 100%).
Credit quality ratios continued to be solid - credit cost risk was 24 bps (it was 26 bps). The net NPL Ratio decreased to 1.2% (it was 1.5%) and the gross NPL Ratio to 2.4% (it was 2.7%). The gross NPL Ratio calculated using the EBA method is 2% (it was 1.9%). The Texas Ratio improved to 19.5% (it was 23.7%).
Global deposits at market value stood at €40.3 billion, up 13.9% over the end of last year. Global net deposits were positive by €3.6 billion, supported by the growth in indirect deposits. Lending to support the activities of households and businesses increased by 3.8% reaching €9.8 billion.
The progress of the intermediation margin was positive (+7.2% to €690 million) thanks to the increase in lending margin (+5.5% to €413.9 million), net revenues from services (+4.2% to €261.1 million) and net income from financial activities (€15.1 million compared to €979,000 at the end of 2023). More specifically, lending margin shows an increase in the commercial lending component due to higher volumes and the excellent performance of the proprietary securities portfolio that benefits from the investments made during the year, while the remuneration paid to customers on deposits has increased.
The dynamics of revenues from services is positive in all major segments, supported in particular by the good performance of investment services and payment systems, both electronic and traditional. Also growing were lending ancillary fees, banking income, and the contribution of the non-life insurance segment.
As a result of the good performance of the intermediation margin, Cost to Income improved year-on-year to 58.3% (it was 59.4%), despite a 5.5% increase in operating costs. Gross operating income, up 9.3% to €254.6 million, is evidence of the bank's very positive industrial performance.
As part of its growth strategy, Banca Sella has further strengthened its service model based on specialized consulting and personal relationships, continuing to offer families, entrepreneurs and businesses innovative, high-tech products and services tailored to various financial needs, including the more complex ones, with a focus on sustainability, in keeping with its goal of helping to generate a positive impact on the communities in which it operates.
Banca Patrimoni Sella & C.
Banca Patrimoni Sella & C., specializing in the management and administration of assets of private and institutional clients, closed 2024 with a net profit of €26.5 million, recording a 3.5% increase from the €25.5 million at the end of 2023. Assets under management reached €27.1 billion, up 22.1%. Total net deposits stood at €3.7 billion, while progressive net qualified funding reached €2.5 billion, reflecting customers' interest in asset management products. These positive results were supported by the good performance of commission fees following the bank's further growth in size, as well as the positive contribution of lending margins and profits from operations on the proprietary trading portfolio. The CET1 and Total Capital Ratio both stood at 14.07% (they were both 13.46%).
In 2024, Banca Patrimoni Sella & C. signed an agreement for the merger by incorporation of Banca Galileo, a bank that offers private and corporate clients traditional banking services and specialist consulting. In late January 2025, the Bank of Italy and the ECB issued the relevant approvals for the deal, which will be finalized in March. The deal will enable Banca Patrimoni Sella & C. to develop and strengthen further in line with its mission and business model.
Among Banca Patrimoni Sella & C.'s subsidiaries, Sella SGR, the Group's asset management company, closed 2024 with net profits of €2.4 million, up 23.4% from the same period last year, and assets under management totaling €5.1 billion (+ 22%). Sella Fiduciaria, a company that provides trust and family office services, closed 2024 with assets under management amounting to €1.8 billion, representing an increase of 9.4% compared to 2023. A total of 698 fiduciary mandates were opened, and 19 trusts and 20 family office contracts were managed.
Fabrick and the fintech ecosystem
The year 2024 saw further development and growth of the Sella Group in Open Finance through the activity of the specialist company Fabrick and its subsidiaries (Codd&Date, dpixel, Fabrick Solutions Spain, and Judopay, with the latter joining the Group in August 2023) which closed the year with total net revenues amounting to €62.3 million, up 14.1% from the previous year. The recurring revenue component is also up (+22%), accounting for 71% of total revenues (it was 67%). The number of customers is also growing - there were 671 connected counterparties on the platform at the end of 2024 (+49%), generating a significant increase in API calls to over 1.33 billion per month.
As of 31 December, the payments business had reached 123,000 customers (up 10%) with POS and e-commerce transactions having a value of €27.7 billion (up 8%).
The Fintech District community, within the scope of which open innovation projects are developed, at the end of December counted 305 fintech associates. In addition, there are 50 corporates with whom collaborations have been established over the years. Among the most significant initiatives of the year were the fifth edition of the “Milan Fintech Summit,” the Italian event dedicated to the fintech industry attended by 120 speakers and more than 1,400 visitors, and the DonNA project, developed by dpixel, aimed at facilitating and encouraging the growth of innovative female entrepreneurship.
