1022 3840x480

Investor Relations

The EQUITA stock

EQUITA Euronext STAR Milan
EQUITA Euronext STAR Milan

EQUITA, the leading independent investment bank in Italy, is listed on the STAR segment of the Italian Stock Exchange through its parent company EQUITA Group S.p.A. (EQUI, ISIN code: IT0005312027).

After its admission in November 2017 on Euronext Growth Milan (formerly known as AIM Italia), in October 2018 the management completed the translisting to the regulated market by joining the Euronext STAR Milan market - the segment dedicated to mid-sized companies committed to excellence in terms of transparency, liquidity and corporate governance - as promised to investors.

Latest financial results


First nine months
(as of 30 September 2023)

59.5

Consolidated
Net Revenues

10.3

Consolidated
Adj Net Profits

22

Return on Tangible Equity (ROTE)

Milan, 9 November 2023 - The Board of Directors of EQUITA Group S.p.A. approved the first nine months results of the Group as of 30 September 2023. 

Andrea Vismara, Chief Executive Officer at EQUITA, commented: “The results achieved in the first nine months of 2023 confirm our ability to perform well in challenging markets. Net revenues in the third quarter were up year on year. October and the first days of November have been particularly strong in terms of contribution to Net Profit thanks to several investment banking mandates completed successfully in both M&A and capital markets”. 

“Shareholder remuneration continues to be our top priority. Results achieved to date, expectations for the coming months and earnings retained since IPO - to give more visibility to future distributions - are leading us to consider a dividend of €0.35 per share next year. We also confirm the distribution of more than €50 million in dividends in the three-year period ’22-‘24”.

“The recent months have been key from a strategic point of view. We have added several facets to our business model, helping us to consolidate our role as the leading independent investment bank in Italy. The onboarding of professionals such as Stefano Donnarumma and Silvia Rovere – who have joined the Group’s advisory board – will help us to accelerate our ambitious growth plan for the coming years”.

“Despite the difficult macroeconomic scenario and the low-risk appetite we see in financial markets, we are cautiously optimistic about the future. The investments and partnerships we have signed recently will further diversify our model and strengthen our positioning. We will also benefit from the ongoing simplification of regulation and the initiatives to boost capital markets launched at European and Italian level”.

 

Read the press release

EQUITA 2024 (business plan 2022-2024)

Over the 2022-2024 three-year period the Group will strengthen its role as the leading Italian independent investment bank in Italy and will focus on the development of the Alternative Asset Management business to consolidate its position as a multi-asset manager specialised in illiquid, proprietary assets.

Growth will be fostered by a combination of organic and inorganic initiatives, including the execution of value-accretive M&A and strategic transactions to engage new partners and entrepreneurs close to EQUITA into the shareholding structure, with the aim of further accelerating growth.

Management will continue with its disciplined approach on costs to promote profitability and rewarding shareholders’ remuneration, and sustainability will be further integrated into the business model.

Revenues generation

Piano EQUITA 2024 - Revenues

Net Revenues above €110 million by 2024 (c. +6.8% CAGR 2021-2024), to be reached organically and/or via acquisitions and partnerships at shareholding level that could accelerate the achievement of targetaggiungimento degli obiettivi

Piano EQUITA 2024 - Diversification

A more diversified revenues mix in 2024, with Global Markets accounting for 35%-40%, Investment Banking 40%-45% and Alternative Asset Management 15%-20% of total net revenues

Piano EQUITA 2024 - Costs

Cost/Income ratio in line with 2021 and in any case below 70%

Piano EQUITA 2024 - Net Profits

Net Profits above €25 million by 2024 (excluding non-recurring items), with an average growth in pre-tax profits of 9% per year after the normalisation of the tax rateUtile Netto pari ad almeno €25 milioni al 2024, escluse eventuali voci non ricorrenti e con un risultato pre-tasse in crescita del 9% dopo aver normalizzato il tax rate

Piano EQUITA 2024 - Remuneration

€50+ million in dividends to be distributed in the 2022-2024 three-year period (vs €43 million distributed in the 2019-2021 three-year period), with an average yearly dividend above €0.30 per share

Payout ratio of approximately 90%, with the option to increase it if needed, thanks to significant reserves and earnings retained over the years

Piano EQUITA 2024 - Sustainability

Foster employees’ wellbeing

Improve customer and financial community satisfaction

Promote social and economic development of local communities

Promote initiatives to act against climate change (Climate Action)

Promote initiatives to support young people and their development (Young 4 Future)

 

Piano EQUITA 2024 - Revenues

Revenues generation

Net Revenues above €110 million by 2024 (c. +6.8% CAGR 2021-2024), to be reached organically and/or via acquisitions and partnerships at shareholding level that could accelerate the achievement of targetaggiungimento degli obiettivi

Piano EQUITA 2024 - Diversification

Business diversification

A more diversified revenues mix in 2024, with Global Markets accounting for 35%-40%, Investment Banking 40%-45% and Alternative Asset Management 15%-20% of total net revenues

Piano EQUITA 2024 - Costs

Discipline on costs

Cost/Income ratio in line with 2021 and in any case below 70%

Piano EQUITA 2024 - Net Profits

Increase in Net Profits

Net Profits above €25 million by 2024 (excluding non-recurring items), with an average growth in pre-tax profits of 9% per year after the normalisation of the tax rateUtile Netto pari ad almeno €25 milioni al 2024, escluse eventuali voci non ricorrenti e con un risultato pre-tasse in crescita del 9% dopo aver normalizzato il tax rate

Piano EQUITA 2024 - Remuneration

Rewarding shareholder remuneration

€50+ million in dividends to be distributed in the 2022-2024 three-year period (vs €43 million distributed in the 2019-2021 three-year period), with an average yearly dividend above €0.30 per share

Payout ratio of approximately 90%, with the option to increase it if needed, thanks to significant reserves and earnings retained over the years

Piano EQUITA 2024 - Sustainability

Integration of sustainability into the model

Foster employees’ wellbeing

Improve customer and financial community satisfaction

Promote social and economic development of local communities

Promote initiatives to act against climate change (Climate Action)

Promote initiatives to support young people and their development (Young 4 Future)

 

Note: the business plan announced is based on management expectations and assumes a stable market framework over the three-year period of the plan. To know more about the 2022-2024 Business Plan, read the official press release issued on March 17th, 2022, and the related investor presentation.

Investment Case

Equita IPO
Equita IPO

EQUITA is the leading independent investment bank in Italy and the go-to partner for investors, listed companies, corporates and financial institutions.

Over the years the Group has diversified significantly its revenue stream by growing in all areas of business, especially in the Investment Banking and Alternative Asset Management divisions.

This diversification has contributed to an increasingly resilient performance and confirmed the ability of EQUITA to consistently deliver net profits, also in particularly challenging periods of volatile markets.

 

The investment case in 10 simple concepts

  1. Leadership on the Italian market
  2. Unique business model
  3. Diversification and resiliency
  4. Complementary businesses and cross-selling opportunities
  5. Flexible cost structure
  6. Operating leverage and high profitability
  7. Strong cash generation and rewarding dividends
  8. Interests aligned to investors
  9. Successful track-record
  10. Sustainability integrated into the business model

Dividends

EQUITA benefits from a particular business model that invests in capital-light initiatives. This allows the Group to use the cash generated from net profits to finance distributions to shareholders, M&A transactions and investments in new initiatives aimed at accelerating organic growth, keeping at the same time strong financial soundness as demonstrated by the rock-solid capital ratios, well above minimum capital requirements.

Historically, EQUITA has always distributed to shareholders 100% of net profits. Since 2017, following the admission to AIM Italia (today Euronext Growth Milan) and the translisting to Euronext STAR Mial in 2018, the management has decided to retain each year a portion of net profits, to pursue a more conservative approach aimed at promoting increasig dividends and finance potential accretive corporate finance transactions.

Sell-side coverage

The EQUITA stock is covered by Intesa Sanpaolo (previously UBI Banca) and Kepler Cheuvreux. Equity reports are available to all investors. Visit the section dedicated to sell-side analysts to access all the reports published.

Know more about the coverage