GROUP RESULTS
1H24
1H24: HIGHLIGHTS
€324
MLN | 20.0% 17.4% |
PROFITABILITY
NET PROFIT | ROTE | ROE |
Gross NPL Ratio
Net NPL | 2.7% | |||
2.3% | ||||
1H24 | Ratio | 1.9% | ASSET QUALITY | |
0.8% | ||||
15.72% |
CET1 Ratio
8.12%
7.60%
€431
MLN
CAPITAL SOUNDNESS
Organic capital generation* vs FY 2023
CET1 Ratio calculated at Credemholding level (prudential perimeter). Lowest P2R among banks directly supervised by the ECB that published the requirement | |
Source Italian and European NPL ratio average; NPL Ratio calculated excluding cash balances at central banks and other demand deposit | 2 |
ECB, Supervisory Banking Statistics 1Q24. https://www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm.supervisorybankingstatistics_first_quarter_2024_202406~25d2a57276.en.pdf *the evolution of the CET1 Ratio is considered to derive from: Profit generated in the period and RWA dynamics
1H24: HIGHLIGHTS
+1.2% | +4.0% | +3.0% | |
YoY | YoY | YoY | |
Loans | -2.4% | Direct funding | |
YoY |
+2.7
1H24€BN
Customer funding
Net inflows
>1.5 | +6% VS 1H23 | ||
MLN | |||
VOLUMES
PRODUCTION
CUSTOMERS
Total customers
Loans: ABI Monthly Outlook July 2024 | |
Credem Group net inflows include AUM, AUC, direct and insurance net inflows | 3 |
BUSINESS DIVERSIFICATION
Operating Income | 472.1 | 475.5 | 460.6 | 500.9 | 525.3 | 504.4 | ||||||||||||||||
422.0 | 460.4 | 457.7 | 491.0 | 480.6 | 471.9 | |||||||||||||||||
Core Operating Income** | ||||||||||||||||||||||
2.0% | 0.3% | 0.6% | 2.3% | 3.9% | 1.9% | |||||||||||||||||
€/million | ||||||||||||||||||||||
0.0% | ||||||||||||||||||||||
2.9% | 4.6% | |||||||||||||||||||||
8.6% | 4.4% | |||||||||||||||||||||
62% | ||||||||||||||||||||||
50% | 57% | 60% | 54% | 56% | ||||||||||||||||||
40% | 40% | 38% | 38% | 37% | 37% | |||||||||||||
-0.7% | ||||||||||||||||||
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | |||||||||||||
Core NIM on Operating Income | NII on Operating Income | |||||||||||||||||
Income from Financial Activities on Operating Income | Performance Fees on Operating Income | |||||||||||||||||
The contribution of the NII (~56% of total revenues) and of the recurring commission components (Core NIM*), with a contribution of 37% to total revenues, remained significant. The importance of the Group's structure based on a portfolio of complementary activities, with diversified businesses able to create value in different market scenarios, was confirmed.
*Core NIM: Non Interest Margin net of non-recurring items (Income from Financial Activities, Performance Fees)
** Core Operating Income: Net Interest Income + Core Non Interest Margin4 Some reclassifications for the year 2023 related to the introduction of IFRS17 were removed; these reclassifications had been made on the non-interest margin and operating expenses to allow for a consistent comparison with 2022
CONTRIBUTION | TO CONSOLIDATED NET PROFIT | |||||||
Commercial banking | €190.9 mln | |||||||
Credem Banca | ||||||||
Private Banking | ||||||||
€35.4 mln | ||||||||
Credem Euromobiliare | ||||||||
Private Banking | ||||||||
Extended Banking Services, Consumer Credit & Technology | €40.3 mln | |||||||
Credem Factor | Avvera | Credemtel | ||||||
Credem Leasing | ||||||||
MGT | ||||||||
Wealth Management | €67.1 mln | |||||||
Euromobiliare SGR | ||||||||
Euromobiliare Advisory SIM | Wealth & | |||||||
Euromobiliare Fiduciaria | ||||||||
Private | ||||||||
Credem Private Equity | ||||||||
€102.5 | ||||||||
Asset Management | ||||||||
CredemVita | Consolidation adjustments | mln | ||||||
Credem Assicurazioni | -€9.9 mln | |||||||
Insurance | ||||||||
Network | NET PROFIT €323.8 mln | |||||||
Factories | ||||||||
ESG HIGHLIGHTS
Creation of the corporate figure called "ESG Link": more than 30 people with specific roles and responsibilities of connection between the reference functions of the Bank and the Group companies and the Sustainability Team through a control room to promote synergy and coherence of information flows on strategy, risk management, metrics and data, communication and reporting
An online portal dedicated to sustainability has been created: all Group People can acquire ESG knowledge through video pills and training modules. Voluntary ESG training is also correlated with the Group's remuneration policies through a dedicated indicator. Obtained 14 ESG
certifications relating to specific skills
Activation of the range of ESG loans for the purchase of not only residential but also commercial properties, in virtuous energy classes and through Sustainability Linked Loans, i.e. financing lines that encourage companies to set and achieve their sustainability objectives
Introduction of the first estimates of the effects resulting from the application of climate and environmental risk factors in the IFRS9
accounting models
Signed membership of the Net-Zero Banking Alliance: reduction targets for the Oil & Gas and Power generation sectors will be defined by the end of the year
Installation of approximately 2 thousand photovoltaic modules at the Magazzini Generali delle Tagliate (Reggio Emilia), a Group company specialized in cheese maturing, on a surface area of approximately 8 thousand square meters and with a peak power of 850 kW which will allow the production of 950 MWh per year, avoiding the emission of approximately 110 tonnes of CO2 equivalent
Certifications:
Gender equality | Pay parity | Welfare of workers | Innovation Management | 6 |
CUSTOMERS: THE HUMAN-DIGITAL MODEL
OMNICHANNEL COMMERCIAL PROACTIVITY,
CENTERED ON RELEVANT NEEDS IN THE CUSTOMER'S LIFE CYCLE
COMMERCIAL PROACTIVITY GUIDED BY THE MARKETING AUTOMATION
- 458,000 customers selected by AI models and reported to bankers for "commercial campaigns" in person or remotely; contact rate 63%
- 100,000 "events" inspired by customer behavior and selected by AI models, addressed to bankers; contact rate 62%
- 470.000 customers reported to bankers for "next best product" and "next best action" propositions suggested by the AI; contact rate 35%
- 175,000 outbound contacts from Contact Center
…AND SUPPORTED BY DIGITAL ENGAGEMENT
- 2024 Target of 20 million proposals with digital engagement (email, SMS, push notifications, banners, etc.) - compared to 15 million in 2023 - with the aim of supporting the customer in "self" actions or directing him to "human" consultancy
DIGITALIZATION OF SALES
OF PRODUCTS/SERVICES TO CUSTOMERS
Commercial spaces, sales and engagement processes from an omnichannel perspective, with a self-focused strategy for retail customers and remote offers for corporates
Digital acquisition of new customers:
Credem Link Account
>31,000 current accounts opened online
Online Loan
>250 personal loans provided online to prospects
Digital sales of products/services to our customers
Retail: Self Sales vs Total Sales equal to 14%:
Current Account (31%)
Personal Loans (6%)
Deposit Account (7%)
Corporates: Remote Sales vs. Total Sales
Corporate Current Account: (80.1%)
Credit Cards: (53.4%)
Unsecured Mortgages for Corporates: (76.6%)
Business On: (69.2%)
Credem Banca 1H24 management data, with the exception of the Credem Link Account and Online Loan details referring to data for the last 12 months
PEOPLE
NEW HIRES 167 hires in the 1H24 with an average age of 30 years
Target 2024: 280 new hires
TALENTS Inclusive work environment, taking care of professional development according to merit criteria
INVOLVEMENT Sharing of knowledge, skills and experiences, to
encourage creativity and innovation
STIMULATE MOTIVATION TO ACHIEVE RESULTS, REWARD ABILITY AND VALUE
AUTO-ACTIVATION
Support autonomy, innovation and well-being of people, enabling alliances within the Federation of Businesses
RESPONSIBILITY Open decision-making spaces and empower people to take individual action
TRAINING
Involvement of all 6,600 people in the Group in a training program to ensure widespread adoption of the model
8
RECLASSIFIED INCOME STATEMENT
€/million | 1Q24 | 2Q24 | Δvs | 1H23 | 1H24 | ∆ vs | |
1Q24 | 1H23 | ||||||
Net Interest Income | 285.6 | 284.6 | -0.3% | 504.3 | 570.2 | 13.1% | |
Non Interest Margin | 239.7 | 219.7 | -8.3% | 443.3 | 459.4 | 3.6% | |
Operating Income | 525.3 | 504.4 | -4.0% | 947.6 | 1,029.7 | 8.7% | |
Core Op. Income | 480.6 | 471.9 | -1.8% | 882.3 | 952.5 | 8.0% | |
Payroll. | -151.6 | -150.2 | -0.9% | -285.5 | -301.8 | 5.7% | |
Admin. Expenses | -69.8 | -73.0 | 4.5% | -127.7 | -142.8 | 11.8% | |
Operating costs | -221.4 | -223.2 | 0.8% | -413.2 | -444.6 | 7.6% | |
D&A | -26.1 | -26.9 | 3.0% | -51.5 | -53.0 | 2.9% | |
Net Op. Profit | 277.8 | 254.3 | -8.5% | 482.9 | 532.1 | 10.2% | |
LLPs | -2.6 | -6.8 | 162.8% | -4.9 | -9.4 | 92.5% | |
Net Operating Profit net | 275.2 | 247.5 | -10.1% | 478.0 | 522.7 | 9.3% | |
of LLPs | |||||||
Provisions and | -36.3 | -5.9 | -83.8% | -37.7 | -42.2 | 11.8% | |
Extraord. items | |||||||
Pre Tax Profit | 238.9 | 241.6 | 1.1% | 440.3 | 480.5 | 9.1% | |
Taxes | -78.0 | -78.7 | 1.0% | -141.6 | -156.7 | 10.7% | |
Net Profit | 160.9 | 162.9 | 1.2% | 298.7 | 323.8 | 8.4% | |
- Revenue Growth of +8.7% vs 1H23 confirming the value of the Group's business model, capable of taking advantage from different market phases and supporting sustainable growth in the medium term
- The excellent dynamics of the NII (+13.1% vs 1H23) was driven by average rates higher than expected and sustained volumes. The contribution of the commission components was also important with a «Core» Operating Income growing by 8 p.p. vs 1H23
- The trend in Operating Costs (+7.6% vs 1H23) was consistent with the intense projectual and IT development activity to support the dimensional growth of the Group, and includes the effects of the new collective agreement
- Excellent performance of the Net Operating Profit, up by 10.2% which confirmed the Group's ability to develop revenues at a faster rate than the expense components
- LLPs, once again, stood at extremely low levels, with a cost of credit at 5 bps per year, confirming the absence of deterioration in the asset quality
- Extraordinary Items included the contribution to the DGS for the first quarter, as well as more than €4 million provisions for the Guarantee Fund for life insurance policies
- Net Profit stood at €323.8 million (+8.4% vs 1H24)
«Core» Operating Income: net of Income from Financial activities and Performance fee
Some reclassifications for the year 2023 related to the introduction of IFRS17 were removed; these reclassifications had been made on the non-interest margin and operating 9 expenses to allow for a consistent comparison with 2022
NET INTEREST INCOME
Net Interest Income (€/mln)
284 | 303 | 286 | 285 | |
270 | ||||
235
1Q23 2Q23 3Q23 4Q23 1Q24 2Q24
Customer spread
3.25 | 3.49 | 3.60 | 3.56 | 3.53 | ||||||||||||||||||||
2.94 | 3.08 | 3.13 | 3.07 | 3.04 | ||||||||||||||||||||
2.90 | ||||||||||||||||||||||||
2.76 | ||||||||||||||||||||||||
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | |
Credem: spread | Industry: spread | |||||
NII reached approximately €285 million, stable compared to 1Q24, thanks to a better trend in average volumes and a smaller decline in the customer spread
The customer spread slightly reduced for both Credem and the Industry, due to a higher repricing of the average deposit rate (+6 bps Credem vs +3 bps Industry) compared to that of loans (Credem +4 bps vs 0 bps Industry)
Loans to customers | Deposit Rate | ||||||||||||||||||||||||||||||||||
4.74 | 4.79 | 4.79 | 1.23 | 1.221.26 | |||||||||||||||||||||||||||||||
4.49 | 1.15 | 1.16 | |||||||||||||||||||||||||||||||||
3.66 | 4.12 | 3.93 | 4.17 | 4.23 | 4.27 | 1.00 | 1.04 | ||||||||||||||||||||||||||||
3.57 | 0.87 | 0.86 | |||||||||||||||||||||||||||||||||
3.16 | 0.72 | 0.67 | |||||||||||||||||||||||||||||||||
0.40 | |||||||||||||||||||||||||||||||||||
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 |
Credem: average loans rate | Industry: average loans rate | Credem: average deposit rate | Industry: average deposit rate | ||||||||
Credem: management accounting data (%) of the Credem Group (including Credem Banca, Credem Euromobiliare Private Banking, Credem Factor, Credem Leasing, Avvera) | 10 |
Industry: data (%) source ABI Monthly Outlook July 2024 | |