Italy: Azimut to create fintech bank

Milan: Italian asset manager Azimut Holding plans to increase the value of its business by spinning off part of its network of financial advisers and merging it into a new digital bank to be listed within 6-9 months, it said on Thursday.

Azimut Holding, which will remain an independent and listed company, will benefit from a 20-year revenue guarantee on the income generated by the new company’s existing assets.

“The divestment of a part of the financial adviser network in Italy through a spin-off into a fintech bank will enable Azimut shareholders to increase the value of their shares,” Chairman Pietro Giuliani said in a statement.

He said the move would make it possible to generate profits linked to margins on interest, which are currently not included within the company’s range.

Shares were up around 2.5% to 25.77 euros apiece at 1115 GMT.

Azimut’s Paolo Martini will serve as the chief executive of the new bank, which aims to double profits and assets under management within 5 years.

The financial advisors of the new, independent, fintech bank will be given 2% of the share capital each year, for the first five years, replicating the shareholding model of Azimut.

The bank will count on at least 20 billion euros ($21.6 billion) and 1,000 financial advisors at its launch. It plans to hire 500 new professionals, including wealth managers, private bankers, and financial advisors by 2029.

In the first 5 years, inflows are expected to range between 16 billion and 19 billion euros.

The existing Azimut Holding will pursue its growth strategy according to its current business model, including a partnership with UniCredit to sell its funds to customers of Italy’s second-largest bank.