- Growth in overall customer funding to € 117 billion (+5.5% during 1H 2024) and lending exposure stable compared to ye 2023 at € 50 billion
- Solid capital position at the top of the banking system: CET1 ratio of 26%
- Constant monitoring of non-performing loans: conservative net NPL ratio (0.7%)[i] and high coverage ratio (82%)
- Consolidated net result for the 1H 2024 of € 577 million in line with the results of the previous year
Trento, 29.08.2024 – The results for the first half of 2024 consolidate the ties of the Cassa Centrale Group with the territory, as confirmed by the growth in customer funding volumes and by the stability of the volume of loans in an uncertain macroeconomic context that does not encourage investment and credit demand. The strategic initiatives of the Business Plan have enabled the achievement of satisfactory economic results and a progressive diversification of revenues.
“In line with the cooperative principles that underpin our actions – says Chairman Giorgio Fracalossi – and strengthened by these results, we will be able to continue to play our role at the service of the communities and the Country. On the back of the excellent financial results and the increased capacity for industrial intervention, the number of our branches on the territory has remained constant, enabling a precise desire for proximity, a distinctive feature of our history that we want to keep current”.
“The Group's positive performance also in the first half of 2024 - comments CEO Sandro Bolognesi - is a source of great satisfaction. The savings that our Stakeholders and Customers entrust to us are growing significantly and this allows us to finance a significant share of the investments of Italian families and small businesses. In these 5 years since the establishment of the Group, together with the Affiliated Banks we have achieved results of great value for the economic fabric of the territories, which have translated into positive financial and economic results, that we invest in technology and in the improvement of customer service”.
Consolidated income statement: key figures
Net interest income for the first half of 2024 amounted to € 1,235 million, showing an increase of 5.2% compared to June 2023, when it stood at € 1,174 while net commissions reached €397 million, up 3% compared to results in the first half of 2023 and in line with the Plan targets set for 2024. Net banking income rose to €1.5 billion up 4% compared to the same period of the previous year. Operating costs amounted to € 865 million (+2.3% from June 2023), growing less than estimates included in the budget.
As at 30 June 2024, the Group's cost income ratio[ii] was 57%, down from the first half of 2023 when it stood at 58%.
Net loan write-backs for credit risk amounted to € 36 million with an overall coverage ratio of non-performing loans that remained above 80%.
Profit before tax was in line with results in 1H 2023, reaching € 685 million. After income taxes of € 108 million, the net profit was € 577 million (€ 587 million in 2023).
Consolidated balance sheet: key figures
Direct funding[iii] amounted to € 69.5 billion, recording an increase of 4% compared to year-end values and exceeding Budget expectations, with growth in all territories where the Group operates.
Indirect funding recorded significant growth of 7.4% compared to the end of December 2023 to € 47 billion led by the positive trend for Assets under Administration (to € 20.5 billion +8.8% since the beginning of the year) and Assets under Management (€ 18.7 billion +8.3% during 1H 24).
The Group's total funding amounted to € 116.9 billion, split for 59% and 41% respectively between direct and indirect funding.
In June 2024, gross loans to customers were € 50 billion, in line with the stock as at December 2023, reflecting the persistence of weak demand for credit at the systemic level. Performing loans amounted to € 47.9 billion while non-performing loans amounted to € 2.1 billion.
With reference to the breakdown of gross non-performing loans, bad loans amounted to € 0.7 billion, unlikely to pay amounted to € 1.4 billion and past due loans amounted to € 85 million.
The gross NPL ratio remained in line with year-end values at 4.2%, while the net NPL ratio was 0.7%.
The overall coverage ratio of non-performing loans was 82% (85% at December 2023) and remains among the most conservative with a coverage of bad loans of 91%.
The stock of financial securities saw a reduction to € 34.3 billion, compared to € 35.6 billion at the end of 2023 due to the scheduled repayment of maturing ECB refinancing operations.
Capital ratios and liquidity indicators
The capital ratios as at 30 June 2024 are the following:
- Common Equity Tier 1 (CET1) ratio of 26,1% (24,6% as at 31 December 2023);
- Total Capital ratio of 6,1% (24,6% as at 31 December 2023);
The Group's' equity, including the result for the period, was €8.7 billion, up by €465 million (+5.7%) since the end of 2023.
LCR ("Liquidity Coverage Ratio") and NSFR ("Net Stable Funding Ratio") liquidity indicators, as of June 30, 2024, were 298%, and 178% respectively
Key structure data
The Cassa Centrale Banca Group has a network of 1,479 branches across Italy.
As at 30 June 2024, the Group employed 12,226 people compared to 12,016 at the end of 2023.
[i] The calculation of gross and net NPL ratios was carried out on the basis of the EBA data model (EBA methodological guidance on risk indicators - updated June 2023).
[ii] The cost income ratio is calculated on the basis of the income statement reclassified as the ratio of operating costs to net banking income.
[iii] Includes payables to customers and securities outstanding (excluding securities to banks).