Banca Sistema (BST)

Business description

Banca Sistema is a speciality finance provider with a primary focus on factoring receivables from the Italian public sector (public administrations). The bank is also opportunistic, looking to diversify and has developed salary- and pension-based lending.

Stock data

Market cap.€183.8m
Last close€2.29
High / Low (52 weeks)€2.8 / €2.0
Stock market listingMI
Forecast net debt (€m)N/A
Forecast gearing ratio (%)N/A

Price performance

Relative *(0.8)2.4(16)

* % Relative to local index

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Company news

Banca Sistema SpA (BST) Is Yet to See Trading Action on Feb 16

Fri, 16 Feb 2018 13:07:30 GMT

Banca Sistema SpA (BST) Moved Up 0.44% on Feb 10

Sat, 10 Feb 2018 15:45:00 GMT

Banca Sistema SpA (BST) Declines -0.22% on Feb 19

Thu, 08 Feb 2018 09:11:15 GMT

Banca Sistema SpA (BST) Jumps 1.106% on Feb 17

Sat, 17 Feb 2018 11:37:30 GMT

Banca Sistema SpA (BST) Rise 1.106% on Feb 18

Sat, 17 Feb 2018 11:37:30 GMT

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (c) P/E (x) P/CF (x)
2015A 71.8 N/A 25.5 29.50 7.7 N/A
2016A 81.5 N/A 35.7 32.85 7.0 N/A
2017E 85.4 N/A 39.6 34.39 6.6 N/A
2018E 93.0 N/A 42.8 36.72 6.2 N/A

Last updated on 17/01/2018

Investment summary

BST's Q3 results showed continued growth in its main trade receivables financing and salary and pension-backed loan activities. BST still targets an ROAE of 20% for FY17. Given this and the potential for continued growth, the valuation in terms of price to book and multiples of our reduced earnings estimates appears very cautious. Since the results, BST has announced the appointment of a new CFO, Ms Ilaria Bennati, who had been a member of the board of directors since June 2016 (a position she resigned from simultaneously). The company also reported in January that the Bank of Italy has reduced BST’s minimum required capital ratios for FY18, an encouraging indicator that also increases the theoretical capital headroom.

Last updated on 02/02/2018

Industry outlook

BST is successfully generating more factoring turnover through its banking partners and hopes to extend this network further. Structurally, there remains good potential to increase factoring penetration in Italy and for BST to gain share. Scope for increased acquisition of salary- and pension-backed loans also appears favourable and the risk weighting applied to these loans seems likely to be reduced from around 75% to 35%. FY17 preliminary results are due in February.

Last updated on 02/02/2018

Key management

Gianluca Garbi, CEO
Alexander Muz, CFO
Steve Skerrett, Head of Retail & Commercial Banking
Egisto Franceschi , Head of Collection Services
Carlo Di Pierro, Head of IR

Company address

Corso Monforte, 20, 20122,
+39 02 802801
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