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.€171.9m
Last close€2.14
High / Low (52 weeks)€2.8 / €1.8
Stock market listingMI
Forecast net debt (€m)N/A
Forecast gearing ratio (%)N/A

Price performance

Relative *(2.8)(11.7)(24.3)

* % Relative to local index

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Company news

Banca Sistema SpA (BST) Declines -0.66% on Sep 16

Sat, 16 Sep 2017 12:11:15 GMT

Banca Sistema SpA (BST) Increases 1.14% on Sep 21

Thu, 21 Sep 2017 15:00:00 GMT

Banca Sistema SpA (BST) Plunges -1.04% on Sep 20

Wed, 20 Sep 2017 14:36:23 GMT

Banca Sistema SpA (BST) Moved Up 0.85% on Sep 25

Thu, 14 Sep 2017 11:15:00 GMT

Banca Sistema SpA (BST) Dipped -1.21% on Sep 24

Wed, 13 Sep 2017 13:07:30 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 7.2 N/A
2016A 81.5 N/A 35.7 32.85 6.5 N/A
2017E 87.7 N/A 41.2 35.32 6.1 N/A
2018E 99.1 N/A 48.3 41.41 5.2 N/A

Last updated on 29/08/2017

Investment summary

BST's first half figures confirmed further strength in factoring turnover (+32% y-o-y) and overall loans outstanding (23%). Market conditions for factoring in Italy remain favourable and salary and pension-backed lending continues to offer good opportunities with the potential for a lower capital burden subject to regulatory discussions. BST still trades on very modest multiples, below the average P/E for a selected peer group and, assuming an ROE of 22% and 12.4% cost of equity, we come to a valuation of c €3.15, significantly above the current share price.

Last updated on 06/09/2017

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 while BST remains open to new opportunities as illustrated by its pilot pawnbroking (mount of piety) operation.

Last updated on 06/09/2017

Key management

Gianluca Garbi, CEO
Margherita Mapelli, 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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