COMMUNICATION TO THE PUBLIC OF INSIDE INFORMATION PURSUANT TO ART. 17 OF REGULATION (EU) NO. 596/2014 AND REGULATED INFORMATION PURSUANT TO DIRECTIVE 2004/109/EC AS AMENDED
Cassa Centrale Group: Results for the year 2024
The Cassa Centrale Group closed another financial year with improved results while extending its support to the local territories in particular by increasing the amount of new loans granted.
- Net loans to customers at € 48.6 billion (+1.5% YoY) and increase in loans disbursement[1] (+6.3% YoY) for a total of € 8.6 billion
- Direct funding from customers[2] to over € 71 billion, up 6.7% YoY
- Indirect funding up to € 49 billion (+11% YoY)
- More than 145,000 new customers during the year[3]
- Maintained a rigorous approach to the management of impaired loans, with the coverage ratio of total impaired loans at 81% and a further reduction in the gross NPL ratio to 3.5% (4.2% at the end of 2023)
- Net NPL ratio at 0.7%, below 1% for the third year running
- Further capital strengthening with the CET1 ratio rising to 26.8%
- Net profit of € 1,168 million (+34% YoY)
- Net interest income of € 2,456 million (+2.5% YoY) and net commissions of € 837 million (+5.3% YoY), as a result of the process of gradual revenue diversification
- Cost to income ratio[4], net of extraordinary items, equal to 53%
- October 2024 saw the successful placement of the first € 100 million green bond for retail customers
Trento, 27.02.2025 – The Board of Directors of Cassa Centrale Banca examined the Group's consolidated results as at 31 December 2024.
The Chairman, Giorgio Fracalossi, expressed his satisfaction: “In these first 5 years since the Group was established, we have worked on strengthening our bond with the local territories respecting our cooperative values. The excellent results also obtained in 2024 enable us to reaffirm the modernity of our service model, which is rooted in history and makes the relationship-building capacity of our Cooperative Credit Banks, Casse Rurali and Raiffeisenkassen the key to developing local communities”.
“In a scenario of favourable interest rates for banking activity, we focused on the distinctive factors of the business model of our Cooperative Banking Group. The significant growth in customer savings is a sign of the trust that Shareholders and Customers have in the Group’s Banks", states Chief Executive Officer Sandro Bolognesi. "The significant disbursements of new credit also confirm the effectiveness of the distribution model, serving the requests and needs of customers. In this regard, we have recorded a high level of demand for loans to support households and businesses in the green transition process, through products that are cementing their importance in the credit portfolio. We are committed to supporting the progress of the transition also through sustainable asset management products and the funding from green bonds: last October we placed the first issue, which was warmly received by savers”.
Consolidated statement of financial position
Net loans to customers rose to € 48.6 billion (+1.5% YoY), also thanks to an acceleration in the disbursements of new loans[5], which reached € 8.6 billion (+6.3% YoY), a sign of strong commitment to remain close to the local communities of the Group’s Cooperative Credit Banks, Casse Rurali and Raiffeisenkassen.
Direct funding from customers[6] grew by +6.7% YoY, a higher rate than the industry average of banks operating in Italy[7], confirming the trust and quality of the relationship with the Group’s customers and stakeholders and reached € 71.2 billion.
Indirect funding at the end of December 2024 reached € 49.1 billion, marking an increase of +11% compared to December 2023. The increase was driven by the Asset Management and Funds segment (+15% YoY with assets at € 19.9 billion), accompanied by the growth of the Assets under Administration segment (+11% YoY with assets at € 20.9 billion). The Bancassurance segment recorded an increase of +4% (€ 8.3 billion at the end of 2023).
The Group’s territorial presence also increased, with the opening of branches in new municipalities and over 145,000 new customers during the year[8].
De-risking activities continued in 2024, with priority given to maintaining high rates of coverage also in comparison to the Italian banking system. In December 2024, the gross NPL ratio stood at 3.5% (4.2% in 2023). The net NPL ratio stood at 0.7%, staying under 1% for the third year in a row. The coverage ratio of non-performing loans was 81% at the end of 2024 (85% in December 2023).
Financial assets amounted to € 32.3 billion, marking a decrease of -9.1% YoY as a result of the repayment of the latest TLTRO-III transactions conducted by the European Central Bank.
The loans to deposits ratio fell further in 2024, reaching 68.2%, thanks to the significant increase in direct funding from customers, ensuring ample liquidity to support the Group's development initiatives.
Consolidated income statement
Net interest income for the year 2024 reached € 2,456 million, up by +2.5% compared to 2023, continuing to benefit from a favourable interest rate scenario for the Italian banking industry.
Net commissions maintained a positive trend, recording growth of more than 5% to € 837 million when compared to 2023, confirming the Group’s aim to increase the degree of revenue diversification.
Net interest and other banking income amounted to € 3,035 million, up 7.1% compared to the results achieved in 2023, despite the negative impact of more than € -270 million from the sale of financial activities for the repositioning of the securities portfolio.
Operating expenses for 2024 amounted to € 1,773 million, up 2.7% compared to the previous year and reflect the dynamics related to the renewal of the collective labour agreement and the increase in other administrative expenses in relation to the investments envisaged in the Strategic Plan, in particular in technology and digital transformation.
The cost to income ratio[9] net of extraordinary items stood at 53%, in line with the previous year.
Despite the continued application of prudential provisioning policies in 2024, the high levels of impaired loan coverage resulted in net loan loss reversals of € 126 million in 2024, thanks above all to internal management activities, which the Group Banks carry out in line with a strategy of continuous customer assistance and support.
The Group’s net profit amounted to € 1,168 million (€ 871 million in 2023).
Capital ratios and liquidity indicators
The capital ratios as at 31 December 2024 were as follows:
- the Fully Phased Common Equity Tier 1 ratio (CET1) stands at 26.8% (24.2% as at 31 December 2023);
- the Fully Phased Total Capital ratio(TCR) stands at 26.8% (24.2% as at 31 December 2023).
The Group’s consolidated shareholders' equity, which includes the result for the period, stood at € 9.4 billion (up from € 8.2 billion at the end of 2023).
In December 2024, the LCR ("Liquidity Coverage Ratio") was 292% (275% in December 2023) and the NSFR ("Net Stable Funding Ratio") was 180% (168% at the end of 2023). Both indicators remain well above the regulatory requirements, indicating a positive liquidity situation that has been a hallmark of the Group since its establishment.
The consolidated financial statements as at 31 December 2024 used to prepare this document were approved by the Board of Directors. It should be noted that the Independent Auditors Deloitte & Touche S.p.A. issued the certification in compliance with the provisions contained in Article 26 (2) of Regulation (EU) no. 575/2013 (ECB 2015/4) for the purposes of including the profit for 2024 in Common Equity Tier 1 Capital as at 31 December 2024. It should be noted that the Independent Auditors are completing the statutory audit of the financial statements. The draft 2024 Financial Statements and the Consolidated Financial Statements will be submitted for approval of the Board of Directors, whose meeting is scheduled for 27 March 2025, and will subsequently be published.
[1] Management data on consolidated scope
[2] Without repo funding with Euronext Clearing and bonds issued on wholesale market
[3] Management data on the scope of the Cooperative Credit Banks, Casse Rurali and Raiffeisenkassen of the Group
[4] Operating expenses/(Net interest margin + Net commissions) net of extraordinary items
[5] Management data on consolidated scope
[6] Without repo funding with Euronext Clearing and bonds issued on wholesale market
[7] ABI Monthly Outlook (January 2025): total direct funding (deposits from resident customers and bonds) +2.4% YoY as at December 2024
[8] Management data on the scope of the Cooperative Credit Banks, Casse Rurali and Raiffeisenkassen of the Group
[9]Operating expenses/(Net interest income + Net commissions) net of extraordinary items