GROUP RESULTS
9M24
9M24: HIGHLIGHTS
€486
MLN | 19.5% 17.4% |
PROFITABILITY
NET PROFIT | ROTE | ROE |
Gross NPL Ratio
Net NPL | 2.7% | |||
2.3% | ||||
9M24 | Ratio | 1.9% | ASSET QUALITY | |
0.8% | ||||
15.75% |
CET1 Ratio
8.15%
7.60%
CAPITAL SOUNDNESS
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 2Q24. https://www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm.supervisorybankingstatistics_second_quarter_2024_202409~ccd5ded94e.en.pdf
9M24: HIGHLIGHTS
+0.7% | +2.0% | +1.5% | |
YoY | YoY | YoY | |
Loans | -1.4% | Direct funding | |
YoY |
+2.6
9M24€BN
Customer funding
Net inflows
>1.5 | +5.3% VS 9M23 | ||
MLN | |||
VOLUMES
PRODUCTION
CUSTOMERS
Total customers
Loans: ABI Monthly Outlook October 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 | 480.0 |
Core Operating Income**
€/million
422.0 | 460.4 | 457.7 | 491.0 | 480.6 | 471.9 | 468.2 | ||||||||
2.0% | 0.3% | 0.6% | 2.3% | 3.9% | 1.9% | 2.1% | ||||||||
8.6% | 2.9% | 0.0% | 4.4% | 4.6% | 0.4% | |||||||||
62% | 58% | |||||||||||||
57% | 60% | 56% | ||||||||||||
50% | 54% | |||||||||||||
40% | 40% | 38% | 38% | 37% | 37% | 40% | ||||||||||||||
-0.7% | ||||||||||||||||||||
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | ||||||||||||||
Core NIM on Operating Income | NII on Operating Income | |||||||||||||||||||
Income from Financial Activities on Operating Income | Performance Fees on Operating Income | |||||||||||||||||||
Revenues continued to be driven by the expansion of the NII with a contribution of 58% of the total. Also noteworthy was the contribution of recurring commission components (Core NIM*), amounting to 40% of total revenues, confirming the importance of the Group's structure based on a portfolio of diversified businesses able to create value in different market scenarios
*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 | €281.9 mln | |||||||
Credem Banca | ||||||||
Private Banking | ||||||||
€57.0 mln | ||||||||
Credem Euromobiliare | ||||||||
Private Banking | ||||||||
Extended Banking Services, Consumer Credit & Technology | €59.6 mln | |||||||
Credem Factor | Avvera | Credemtel | ||||||
Credem Leasing | ||||||||
MGT | ||||||||
Wealth Management | €100.4 mln | |||||||
Euromobiliare SGR | ||||||||
Euromobiliare Advisory SIM | Wealth & | |||||||
Euromobiliare Fiduciaria | ||||||||
Private | ||||||||
Credem Private Equity | ||||||||
€157.4 | ||||||||
Asset Management | ||||||||
CredemVita | Consolidation adjustments | mln | ||||||
Credem Assicurazioni | -€13.0 mln | |||||||
Insurance | ||||||||
Network | NET PROFIT €485.9 mln | |||||||
Factories | ||||||||
RECLASSIFIED INCOME STATEMENT
€/million
Net Interest Income Non Interest Margin o/w Non Interest Margin "core"
Operating Income
Core Op. Income
Payroll. Admin. Expenses Operating costs D&A
Net Op. Profit
LLPs Net Operating Profit net
of LLPs Provisions and Extraord.
items Pre Tax Profit Taxes
Net Profit
2Q24 | 3Q24 | Δvs | 9M23 | 9M24 |
2Q24 | ||||
284.6 277.4 -2.5% 788.4 847.6
219.7 | 202.6 | -7.8% | 619.8 | 662.0 |
187.3 | 190.8 | 1.9% | 551.6 | 573.1 |
504.4 480.0 -4.8% 1,408.2 1,509.6
471.9 468.2 -0.8% 1,340.0 1,420.8
-150.2 | -135.0 | -10.1% | -412.0 | -436.9 |
-73.0 | -66.6 | -8.8% | -189.4 | -209.3 |
-223.2 | -201.6 | -9.7% | -601.4 | -646.2 |
-26.9 | -27.1 | 0.7% | -78.0 | -80.1 |
254.3 | 251.3 | -1.2% | 728.8 | 783.4 |
-6.8 | -7.4 | 7.9% | -9.5 | -16.8 |
247.5 | 243.9 | -1.4% | 719.3 | 766.6 |
-5.9 | -4.1 | -30.4% | -72.3 | -46.2 |
241.6 239.9 -0.7% 647.0 720.4
-78.7 | -77.7 | -1.3% | -208.0 | -234.5 |
162.9 | 162.1 | -0.4% | 439.0 | 485.9 |
- vs •
9M23
7.5%
6.8%
3.9%
7.2% •
6.0%
6.0% 10.5% 7.4% 2.6%•
7.5%• 76.9%
6.6% •
-36.0%
11.3% 12.7%•
10.7%
Revenue growth continued (+7.2% vs 9M23) thanks to both the
expansion of the NII (+7.5% vs 9M23) and the excellent dynamics of the commission components, with the Non Interest Margin growing by 6.8% vs 9M23, confirming the value of the Group's business model, which is able to support sustainable growth in different market phases
Operating Costs trend (+7.4% vs 9M23) included the effects of the
new collective agreement, net of which cost components would had grown by +4.2% vs 9M23. In general, the trend is mainly driven by the Group's constant commitment to the intense IT project and development activities to support the dimensional growth
Net Operating Profit up by 7.5% YoY
LLPs, once again, stood at extremely low levels, with a cost of credit
at 6 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 €485.9 million (+10.7% vs 9M23)
«Core» Operating Income: Operating Income net of Income from Financial activities and Performance fee | |
«Core» Non Interest Margin: Non Interest Margin net of Income from Financial activities and Performance fee | 6 |
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
NET INTEREST INCOME
Net Interest Income (€/mln)
284 | 303 | 286 | 285 | 277 | |
270 | |||||
235
NII reached €277 million in 3Q24, a decrease compared to 2Q24, due to the fall in the interest rate curve and the contraction of average volumes in the quarter, both of loans, due to seasonality, and of the securities portfolio
The customer spread fell slightly for Credem (-2 bps), compared to a more marked drop for the Industry (-5 bps). The cost of funding vs 2Q24 at Group level came to -6 bps, while the Industry recorded a smaller drop in the average deposits rate (-3 bps). The average lending rate fell by about 8 bps, with a similar trend to that of the Industry (-7 bps vs 2H24)
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 |
Customer spread | Loans to customers | Deposit Rate | |||||||||||||||||
3.49 | 3.60 | 3.56 | 3.53 | 3.48 | 4.74 | 4.79 | 4.79 | 4.72 | 1.15 | 1.23 | 1.221.26 | 1.23 | |||||||
3.25 | 3.13 | 4.49 | 1.16 | 1.16 | |||||||||||||||
2.94 | 3.08 | 3.07 | 3.04 | 3.02 | 4.12 | 4.17 | 4.23 | 4.27 | 4.19 | 1.00 | 1.04 | ||||||||
2.90 | 3.66 | 3.57 | 3.93 | 0.87 | 0.86 | ||||||||||||||
2.76 | |||||||||||||||||||
3.16 |
0.72 | 0.67 |
0.40 |
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 |
Credem: spread | Industry: spread | 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) | 7 |
Industry: data (%) source ABI Monthly Outlook October 2024 | |
SECURITIES PORTFOLIO
Securities portfolio breakdown (€/mln, %) | Italian government bond (€/bn) |
12,99611,860
38% | 35% |
4% | 4% |
27% | 25% |
31% | 36% |
1Q23 | 1H23 |
Other non-Italy |
% Tot Assets
18.3% 18.4%
12,468 | 13,044 | ||
38% | 36% | ||
4% | 4% | ||
23% | 25% | ||
35% | 35% | ||
9M23 | FY23 | ||
Other Govies / EFSF/ EIB | |||
19.1% | 19.2% |
12,50811,965 11,609
32% | 33% | 33% |
4% | 4% | 4% |
25% | 24% | 25% |
39% | 39% | 38% |
1Q24 | 1H24 | 9M24 |
Other Italy | Italian Govies |
19.0% 18.3% 18.2%
4.7 | 4.2 | 4.8 | 4.7 | 4.0 | 4.0 | |||
3.8 | Ita Govies | 9M24 | ||||||
HTC | 3.7 | |||||||
HTCS | 0.1 | |||||||
FVTPL | 0.0 | |||||||
Total | 3.8 | |||||||
1Q23 | 1H23 | 9M23 FY23 | 1Q24 | 1H24 | 9M24 |
- The overall securities portfolio stood at 11.6 billion. The reduction vs 2Q24 values resulted from some sales made in 3Q24 with a view to re-compositionof the portfolio. The diversification remained high and the average maturity was 4.5 years. The HTC components was equal to 56% and showed a low level of potential unrealised losses, gross of fiscal effect, equal to 2 million
- The amount of BTP was 33% of the total portfolio. 97% of the Italian govies was accounted in HTC with an average maturity of 3.7 years. The HTCS component of domestic securities had an average maturity of 1.9 years
Rating Securities portfolio: | 38% | 22% | 40% |
AAA / AA | A | BBB |
Credem SpA management accounting. The remaining amount not included in the mentioned rating classes is represented by unrated securities
8
NON INTEREST MARGIN
Total* (€/mln) | 237.3 | 206.0 | 176.5 | 198.0 | 239.7 | 219.7 | 202.6 | ||||||||
Performance Fees | 40.5 | ||||||||||||||
13.8 | 0.2 | 23.0 | 23.0 | 1.8 | |||||||||||
Income from Financial | |||||||||||||||
53.7 | 52.3 | ||||||||||||||
53.6 | 56.1 | 52.7 | 52.8 | ||||||||||||
Activities | 54.1 | ||||||||||||||
21.7 | 24.1 | 14.0 | 23.4 | 18.4 | 22.2 | ||||||||||
Banking Fees | 19.8 | ||||||||||||||
Insurance Income | 109.3 | 109.9 | 97.8 | 110.5 | 111.4 | 109.9 | 109.8 | ||||||||
Asset Management and | -3.6 | ||||||||||||||
Brokerage Fees | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | ||||||||
«Core» NIM** | |||||||||||||||
187.2 | 190.9 | 173.6 | 188.1 | 195.0 | 187.3 | 190.8 | |||||||||
- Asset Management and Brokerage Fees held up well, remaining substantially stable at around €110 million, not including the placement commissions that have characterized previous quarters
- Banking Commissions stood at €52.8 million, in line with 2Q24
- The Result from the Insurance Income remained high, at €22.2 million, and benefited vs 2Q24 from a recovery in the value of portfolios due to lower interest rates and positive funding dynamics
*Total NIM Includes the aggregate «other incomes»
**Core NIM: Non Interest Margin net of non-recurring items (Income from Financial Activities, Performance Fees)9 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
OPERATING COSTS AND D&A
Operating costs (€/mln)
207 | 206 | 188 | 231 | 221 | 223 | |||||||||||||||
63 | 65 | 64 | 70 | 73 | ||||||||||||||||
62 | ||||||||||||||||||||
144 | 142 | 127 | 167 | 152 | 150 | |||||||||||||||
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | |||||||||||||||
Payroll | Administrative Expenses | |||||||||||||||||||
D&A (€/mln) | ||||||||||||||||||||
24.9 | 26.6 | 26.5 | 26.9 | 26.1 | 26.9 | |||||||||||||||
Employees
6,608 | 6,616 | 6,628 | 6,627 | |||||||||||
202 | 6,068 | 6,140 | 6,195 | 6,201 | 6,219 | |||||||||
5,899 | ||||||||||||||
5,609 | 5,763 | |||||||||||||
67 | ||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 3Q24 | |||
135 | ||||||||||||||
Financial Advisors | ||||||||||||||
3Q24 | ||||||||||||||
855 | 831 | 833 | 835 | 833 | ||||||||||
827 | 820 | 812 | 820 | 825 | ||||||||||
770 | 785 | |||||||||||||
27.1
- Payroll, that included the adoption of the new collective agreement, were down by 10.1% vs 2Q24 due to the usual seasonality related to 3Q24. Administrative Costs also decreased compared to 2Q24 (-8.8%). The comparison with the same period of the previous year is influenced by the Group's strong commitment to continue the IT developments and improvements, digital innovation and marketing initiatives necessary to support business growth
Operating Costs: €, million. P&L figures include Ifrs 16 impacts | 10 |
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 |