FinecoBank predicts record revenue in 2024 on the back of rising commissions

FinecoBank, an online bank and brokerage in Italy, forecast record revenues this year. The company also pledged a higher dividend for its 2024 results.

As interest rates decline, banks are turning to brokerage and net fee products to generate revenue and compensate for the falling contribution of their lending business.

Fineco expects to see a small double-digit increase in annual investing revenues. It also expects stable banking fees, and strong brokerage revenue, which will support an improved sales mix.

The company's investing revenues are also expected to grow in the low double-digits by 2025, as it continues to attract more clients. However, banking fees will likely drop next year because of regulations regarding instant payments.

The fintech bank forecasts robust, high-quality and increasing asset under management (AuM), deposit net sales, and the expansion of their in-house brokerage platform and asset management business in 2024.

The lender estimated that inflows in October of around 1 billion euros, including 430 million in AuM, were about 16% higher than the previous quarter.

Fineco, while promising a larger dividend, said that it would need more time to distribute surplus capital and to buy back shares in order to evaluate the "probability" of higher-than-expected business growth.

Citi and J.P. Morgan analyst noted a negative response to the comments about distributing capital.

(source: Reuters)