Banca Sistema

MI: BST

€112.1m market cap

€1.39 last close

Banca Sistema is a speciality finance provider with a primary focus on factoring receivables from the Italian public sector with salary and pension-based lending forming a second core activity. It is opportunistic and looking to diversify into new areas.

Investment summary

BST reported lending growth of more than 40% year-on-year in its 9M18 results but mix changes and some lumpiness associated with late payment interest (LPI) constrained earnings growth in the period; after an 11% increase in expenses and higher tax rate, earnings were 12% lower than for the prior year period. This effect should unwind as the business continues to grow. It would not require full delivery of the bank’s three-year plan targets, including ROE of over 18%, to warrant a higher valuation. The capital position remains strong with a CET1 ratio of 11.1%. FY18 results are due to be announced 8 February 2018.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2016A 81.5 N/A 35.7 32.85 4.2 N/A
2017A 82.5 N/A 38.9 33.33 4.2 N/A
2018E 87.0 N/A 39.0 32.44 4.3 N/A
2019E 118.4 N/A 53.6 44.68 3.1 N/A
Last updated on 01/02/2019
Share price graph
Balance sheet
Forecast net debt (€m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (3.1) (18.0) (39.5)
Relative* (9.2) (19.6) (27.1)
52-week high/low €2.3/€1.4
*% relative to local index
Key management
Gianluca Garbi CEO
Carlo Di Pierro Head of IR