(Reuters) - Italy's FinecoBank said its full-year net profit hit a record 349.2 million euros ($399 million) driven by stronger net commissions, lifting its shares on Wednesday.
The Milan-listed bank, which is already in the UK and plans to start offering financial services in Germany by the end of 2022, is one of Europe's leading fintech bank's with 1.4 million clients, offering trading and investment services.
The bank proposed a dividend of 0.39 euro per share.
"Results were slightly above expectations and the net interest income guidance was revised up," a Milan based trader said.
FinecoBank said in a slide presentation it expects 2022 net financial income - the net interest income and profit from treasury management - to at least match 2021, when it was 280 million euros.
"Going forward we expect our net interest income to benefit from the new interest rates scenario both thanks to the sensitivity of the existing portfolio and for the reinvestments," the company said.
Chief executive Alessandro Foti said the aim was to grow dividends and instead of investing in M&A the bank would allocate any excess liquidity "organically, for example to increase marketing spending".
Foti said he was not worried by digitisation plans of Italy's biggest banking groups Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI).
"This means there are no longer doubts that digitisation is the right way ahead and that we were right to pursue it," he said in a press briefing.
Under a new plan Intesa Sanpaolo, Europe's eighth-largest bank by assets, said it will invest 4.8 billion euros ($5.5 billion) in IT to create a digital bank to serve four million younger customers at risk of being wooed by fintech firms.
"Banks' business model will no longer be based on territorial presence and competition will shift to the quality and excellence of services," Foti said.
He went on to say net inflows in February were "doing well" as markets were normalising after net sales in January came in at 673 million euros and its estimated brokerage revenue reached 19 million euros, up from 16 million in December.
Net commissions rose 18.8% to 450.8 million euros in 2021, driving net profit up 7.6%.
Shares in FinecoBank closed up 4.3% at 15.90 euros. Milan's blue chip index was up around 2.7%.
($1 = 0.8747 euros)