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.€162.1m
Last close€2.02
High / Low (52 weeks)€2.6 / €2.0
Stock market listingMI
Forecast net debt (€m)N/A
Forecast gearing ratio (%)N/A
TeamFinancials
SectorFinancials

Price performance

%1m3m12m
Actual(10.4)(11.8)(10.1)
Relative *(9.1)(13.8)(17.7)

* % Relative to local index

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Company news

Banca Sistema: Growth On Track

Wed, 16 May 2018 09:00:00 GMT

BRIEF-Banca Sistema Board Appoints Gianluca Garbi CEO

Tue, 24 Apr 2018 13:30:00 GMT

BRIEF-Banca Sistema: Bank Of Italy Sets Minimum CET1 Requirement At 7.125 ...

Fri, 05 Jan 2018 17:15:00 GMT

BRIEF-Banca Sistema Signs Cooperation Agreement With Deutsche Bank

Mon, 01 Apr 2013 15:11:15 GMT

BRIEF-Banca Sistema: successful placement of first senior bond issue

Mon, 09 Oct 2017 17:04:20 GMT

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 6.1 N/A
2017A 82.5 N/A 38.9 33.33 6.0 N/A
2018E 90.0 N/A 39.2 33.65 6.0 N/A
2019E 116.5 N/A 52.1 44.69 4.5 N/A

Last updated on 08/05/2018

Investment summary

There was a small one-off provision in the first quarter but, that aside, trading was in line with management expectations and Banca Sistema (BST) continues to focus on delivery of its recently published three-year plan which, on our estimates, points to substantial growth in receivables and earnings between 2018 and 2020. The shares in this specialist lender remain modestly valued, both in relative and absolute terms.

Last updated on 16/05/2018

Industry outlook

Targets for 2020 in the plan include: factoring outstanding CAGR 28% to €3bn, consumer finance 25% CAGR to €1bn, CET1 >11%. Over the period the plan looks for an ROAE of 18-24%, interest income margin 400-450bp, interest cost average 1%, cost of risk <30bp on average and cost income ratio average of 47%. The two core areas remain attractive with good growth potential in factoring, for example, from changes in legislation on split VAT payments that took effect in 2017.

Last updated on 27/04/2018

Key management

Gianluca Garbi, CEO
Carlo Di Pierro, Head of IR

Company address

Corso Monforte, 20, 20122,
Milano,
Italy
+39 02 802801
View website