(Reuters) -Italian asset manager Azimut Holding reported on Thursday a 1.5% year-on-year drop in first quarter net profit to 115.2 million euros ($130.34 million) and confirmed its 2025 guidance.
Group total revenue amounted to 321 million euros in the period, driven by an 8% increase in recurring fees across all its core markets, with particularly strong contributions from Italy, Turkey, Brazil, Singapore and the United States, the company said.
Insurance revenue, the second most important revenue segment, grew 17% year-on-year to 32 million euros, supported by underlying asset growth and product mix evolution.
“The results for the first quarter of 2025 demonstrate the strength and scalability of Azimut’s business model, underpinned by robust growth in recurring revenues,” group CEO and CFO Alessandro Zambotti said.
Azimut shares were 2.1% higher at 1232 GMT after the results.
The company set about creating a new digital bank last March, planning to spin off part of its network of financial advisers and convert it into a bank called TNB by the end of 2025.
As Azimut sought outside investors for the new business, it entered exclusive talks in December with Italian private equity fund FSI, aiming to sell 80% of the fintech bank.
Azimut forecasts a minimum 2025 net profit of 400 million euros, taking into account the costs of establishing TNB, and a maximum net profit of 1.25 billion euros, depending on whether the fintech obtains a banking licence and the finalisation of the FSI agreement.
($1 = 0.8851 euros)
(Reporting by Laura Contemori, Alberto Chiumento; Editing by Susan Fenton, Kirsten Donovan)
