(Finance) – Intermonte has increased the target price on Bank Systemlisted on Euronext STAR Milan and specialized in the purchase of trade receivables from the PA and tax credits, at € 2.65 per share (from € 2.45 per share) and maintained the judgement on the title to “Outperform”. The revision of the recommendation came after the bank released the consolidated financial statements as at 31 December 2021, closed with a net profit of 23.3 million euros. Analysts highlight that Banca Sistema’s fourth quarter ended with “better than expected results on all three main lines (revenues, operating costs, cost of risk) “. In particular, the cost of risk stood at 25bps compared to the expected 30bps,” a figure normalized after the peak observed in the first half of the year ” Net income was 8.5 million euros, one of the best results in the history of the institute.
Although the bank has not provided any formal guidance for 2022, during the call with analysts, top management said that the interest margin should grow on an annual basis thanks to the expansion of volumes, with a positive impact on profits. “We welcome the good performance of the factoring business in the last quarter, since, despite the diversification process underway, it still represents more than two-thirds of the bank’s total revenues “, notes Intermonte.” We continue to appreciate the business model, since even in a year in which it had to deal with a certain degree of pressure from the top line has managed to provide a Double-digit ROTE“is underlined.