Fineco, an Italian online bank, is expected to see a drop in its 2024 net financial income due to increased competition for bank funding.

The bank’s government bond portfolio and lending-deposit rate differential are key profit measures.

Deposit outflows in 2023 have forced Fineco to lower its full-year net interest income forecast. However, investment services revenue is expected to rise by a high single-digit percentage next year.

Fineco’s CEO, Alessandro Foti, has questioned the bank’s sovereign portfolio due to Italian debt exposure.