Italian challenger bank illimity ended 2020 with €31m in net profit, up from €16m in losses in 2019.
The FinTech also said it had achieved a return on equity of 5.5% in the bank’s first full year of operations.
The fourth quarter provided a significant contribution to the annual results, posting a pre-tax profit of €8.3m, despite investments made in new strategic projects whose positive effects will only be felt in future years.
The neobank said that net customer loans and investment, which totalled €2.2bn by December 31, were the main drivers behind the financial results.
That represented a 35% growth compared to the €1.6bn in net customer loans and investments recorded by the end of 2019.
illimity also reported that net customer loans in its SME division grew by 55% over the figure reported in 2019, reaching €817m by December 31.
“illimity has fully met the results for the year included in its earnings guidance, guaranteeing shareholders a return on equity of 5.5% despite the challenging economic situation created by the pandemic,” said Corrado Passera, CEO of illimity.
“The bank has never once interrupted its growth path in this difficult situation and has also invested in new strategic initiatives whose positive effects will become visible in future years.”
In September, illimity announced that it had inked a deal with Fabrick to buy 50% of the shares in open banking platform HYPE Money.
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