GROUP RESULTS
FY24
AGENDA
01 Results
02 Growth, Investments and Sustainability
03 Positioning
2
FY24: HIGHLIGHTS
€620
MLN | 18.5% 16.1% |
PROFITABILITY
NET PROFIT | ROTE | ROE |
Gross NPL Ratio
FY24
15.53% | |
Includes the | CET1 |
proposal of a | |
dividend | Ratio |
distribution of €0.75 per share
Net NPL | 2.6% | ||
2.3% | |||
Ratio | 1.8% | ASSET QUALITY | |
0.7% |
7.52% | |
8.01% | CAPITAL SOUNDNESS |
CET1 Ratio calculated at Credemholding level (prudential perimeter). Lowest P2R among banks directly supervised by the ECB. The minimum CET1 requirement also includes the | |
SyRB, the new buffer introduced by the Bank of Italy equal to 0.41% and calculated on the basis of credit and counterparty risk-weighted exposures to residents in Italy as at 31 | 3 |
December 2024 and to be applied until June 2025. | |
Source Italian and European NPL ratio average (NPL Ratio calculated ex cash balances at central banks and other demand deposit): ECB, Supervisory Banking Statistics 3Q24 | |
https://www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm.supervisorybankingstatistics_third_quarter_2024_202412~d50dbd570b.en.pdf |
FY24: HIGHLIGHTS
+1.8% | +5.6% | +2.4% | |
YoY | YoY | YoY | |
Loans | -1.6% | Direct funding |
YoY
+4.7
FY24€BN
Customer funding
Net inflows
~1.6 | +5.5% VS FY23 |
MLN | |
VOLUMES
PRODUCTION
CUSTOMERS
Total customers
Loans and funding: ABI Monthly Outlook January 2025 | |
Credem Group net inflows include AUM, AUC, direct and insurance net inflows from customers | 4 |
BUSINESS DIVERSIFICATION
Operating Income | 472.1 | 475.5 | 460.6 | 500.9 | 525.3 | 504.4 | 480.0 | 522.7 |
Core Operating Income**
€/million
422.0 | 460.4 | 457.7 | 491.0 | 480.6 | 471.9 | 468.2 | 480.6 |
2.0% | 0.3% | 0.6% | 2.3% | 3.9% | 1.9% | 2.1% | 6.2% |
0.0% | |||||||
8.6% | 2.9% | 4.4% | 4.6% | 0.4% | 1.9% | ||
50% | 57% | 62% | 60% | 54% | 56% | 58% | 52% |
40% 40% 38% 38% 37% 37% 40% 40% -0.7%
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 |
Core NIM on Operating Income | NII on Operating Income | ||||||
Income from Financial Activities on Operating Income | Performance Fees on Operating Income |
The Group confirmed an excellent diversification of revenues. NII accounted for 52% of the total. The contribution of recurring commission components (Core NIM*) continued to grow, accounting for 40% of total revenues, confirming the effectiveness of the Federation of Business in creating value in different market scenario
*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 Margin5 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 | €334.8 mln | |||||||
Credem Banca | ||||||||
Private Banking | ||||||||
€78.7 mln | ||||||||
Credem Euromobiliare | ||||||||
Private Banking | ||||||||
Extended Banking Services, Consumer Credit & Technology | €80.7 mln | |||||||
Credem Factor | Avvera | Credemtel | ||||||
Credem Leasing | ||||||||
MGT | ||||||||
Wealth Management | €140.3 mln | |||||||
Euromobiliare SGR | ||||||||
Euromobiliare Advisory SIM | Wealth & | |||||||
Euromobiliare Fiduciaria | ||||||||
Private | ||||||||
Credem Private Equity | ||||||||
€219.0 | ||||||||
Asset Management | ||||||||
CredemVita | Consolidation adjustments | mln | ||||||
Credem Assicurazioni | -€14.4 mln | |||||||
Insurance | ||||||||
Network | NET PROFIT €620.1 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
3Q24 | 4Q24 | Δvs | FY23 | FY24 | ∆ vs |
3Q24 | FY23 | ||||
277.4 | 271.9 | -2.0% | 1091.3 | 1119.5 | 2.6% |
202.6 | 250.8 | 23.8% | 817.8 | 912.8 | 11.6% |
190.8 | 208.7 | 9.4% | 739.7 | 782.8 | 5.8% |
480.0 | 522.7 | 8.9% | 1,909.1 | 2,032.3 | 6.5% |
468.2 | 480.6 | 2.6% | 1,831.0 | 1,902.3 | 3.9% |
-135.0 | -176.9 | 31.0% | -579.1 | -613.8 | 6.0% |
-66.6 | -80.5 | 20.9% | -253.0 | -289.8 | 14.5% |
-201.6 | -257.3 | 27.7% | -832.1 | -903.5 | 8.6% |
-27.1 | -27.4 | 1.1% | -104.9 | -107.4 | 2.4% |
251.3 | 238.0 | -5.3% | 972.1 | 1021.4 | 5.1% |
-7.4 | -26.0 | 253.1% | -51.6 | -42.8 | -17.0% |
243.9 | 211.9 | -13.1% | 920.5 | 978.6 | 6.3% |
-4.1 | -21.2 | 419.7% | -95.4 | -67.5 | -29.3% |
239.9 | 190.7 | -20.5% | 825.1 | 911.1 | 10.4% |
-77.7 | -56.6 | -27.3% | -263.0 | -291.0 | 10.7% |
162.1 | 134.2 | -17.2% | 562.1 | 620.1 | 10.3% |
- Total revenues up 6.5% vs FY23 thanks to the excellent performance of the NII (+2,6% vs FY23) and the growth of the commission components, with the Non Interest Margin up by 11.6% vs FY23.
- Operating Costs trend (+8.6% vs FY23) was driven by the intense IT project and development activity supporting the growth in size. 4Q24 included an additional expenditure component of approximately 7 million, relating to the evolution of the technological infrastructure functional to the introduction of new cloud technologies, consistent with the Group's multi-year 'roadmap to cloud'. The trend in staff expenses was affected by both the effects of the additional contractual increase in September and the trend of some variable components directly related to revenue growth
- Net Operating Profit up by 5.1% YoY
- LLPs stood at low levels, lower than FY23, with a cost of credit at 12 bps
- Net Profit stood at €620.1 million (+10.3% vs FY23)
«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 | 7 |
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)
303 |
NII reached €272 million in 4Q24, slightly down on the previous quarter due
270 | 284 | 286 | 285 | 277 | 272 |
235
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 |
to the further reduction in rates
As a result, the customer spread Industry (-10 bps vs 3Q24). Both Industry) and the average cost Industry)
decreased for Credem (-7 bps) and for the the average loans rate (-17 bps vs -18 bps of funding decreased (-10 bps vs -7 bps
Customer spread | Loans to customers | Deposit Rate | |||||||||||||||||||||
3.49 | 3.60 | 3.56 | 3.53 | 3.48 | 1.23 | 1.26 | 1.23 | ||||||||||||||||
3.38 | 4.74 | 4.79 | 4.79 | 4.72 | 1.15 | 1.22 | 1.16 | ||||||||||||||||
3.25 | 3.13 | 4.49 | 4.54 | 1.16 | 1.16 | ||||||||||||||||||
3.08 | 3.07 | 3.04 | 3.02 | 4.12 | 4.17 | 4.23 | 4.27 | 4.19 | 1.00 | 1.04 | 1.06 | ||||||||||||
2.94 | 2.96 | 4.02 | |||||||||||||||||||||
2.90 | 3.93 | 0.87 | |||||||||||||||||||||
2.76 | 3.66 3.57 | 0.86 | |||||||||||||||||||||
3.16 |
0.72 | 0.67 |
0.40 |
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 |
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) | 8 |
Industry: data (%) source ABI Monthly Outlook January 2025 | |
SECURITIES PORTFOLIO
Securities portfolio breakdown (€/mln, %)
Italian government bond (€/bn)
12,996
38%
4% 27%
31%
1Q23
11,860
35%
4% 25%
36%
1H23
12,468 13,044
38% | 36% |
4% | 4% |
23% | 25% |
35% | 35% |
9M23 | FY23 |
12,508
32% 4% 25%
39%
1Q24
11,965 11,609
33% | 33% |
4% | 4% |
24% | 25% |
39% | 38% |
1H24 | 9M24 |
13,229
40%
4% 22%
34%
FY24
4.7 | 4.8 | 4.7 | 5.2 | |||
4.2 | 4.0 | 4.0 | 3.8 | Ita Govies | FY24 | |
HTC | 5.1 | |||||
HTCS | 0.1 | |||||
FVTPL | 0.0 | |||||
Total | 5.2 | |||||
1Q23 1H23 9M23 FY23 1Q24 1H24 9M24 FY24 |
• The value of the securities portfolio increased to 13.2 billion, due |
to some purchases made in 4Q24, mainly on short-dated Italian |
sovereign bonds. The current composition maintained a high |
diversification and an average maturity of 4.2 years. The HTC |
components was equal to 59% and showed a low level of |
potential unrealised losses, gross of fiscal effect, equal to about |
9 million |
Other non-Italy | Other Govies / EFSF/ EIB | Other Italy | Italian Govies |
% Tot Assets | |||||||
19.1% | 18.4% | 19.1% | 19.2% | 19.0% | 18.3% | 18.2% | 19.5% |
• The amount of Italian govies was 40% of the total portfolio and |
98% of them was accounted in HTC with an average maturity of |
3.7 years. The HTCS component of domestic securities had an |
average maturity of 1.8 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
9
NON INTEREST MARGIN
Total* (€/mln)
Performance Fees
Income from Financial Activities
Banking Fees
Insurance Income
Asset Management and Brokerage Fees
«Core» NIM**
237.3 | 206.0 | 176.5 | 198.0 | 239.7 | 219.7 | 202.6 | 250.8 | |||||||||
9.6 | 1.3 | 20.7 | 9.4 | 10.0 | 32.3 | |||||||||||
40.5 | 9.8 | |||||||||||||||
13.8 | 2.7 | 11.4 | 23.0 | 23.0 | ||||||||||||
1.8 | 51.7 | |||||||||||||||
53.6 | 53.7 | 0.2 | 56.1 | 52.3 | 52.7 | 52.8 | ||||||||||
54.1 | 23.9 | |||||||||||||||
21.7 | 24.1 | 23.4 | 22.2 | |||||||||||||
14.0 | 18.4 | |||||||||||||||
19.8 | ||||||||||||||||
109.3 | 109.9 | 97.8 | 110.5 | 111.4 | 109.9 | 109.8 | 124.2 | |||||||||
-3.6 | ||||||||||||||||
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 | |||||||||
187.2 | 190.9 | 173.6 | 188.1 | 196.0 | 187.3 | 190.8 | ||||||||||
208.7 |
Total Non interest Margin reached 250.8 million thanks to the excellent contribution of the recurring components ('core' NIM), which amounted to
208.7 million in 4Q24, up 11% compared to the same period of 2023
- Ongoing excellent performance of Asset Management and Brokerage Fees, at 124 million, thanks also to the excellent net production dynamics of the past quarters and to the good outcome of some placements made in 4Q24, while Banking Commissions amounted to 51.7 million
- Results from financial activities reached 9.8 million in 4Q24 and the Insurance Income remained high, at €23.9 million, thanks to the trend in financial income and the presence of some over-performancecommissions of more than 1 million
*Total NIM Includes the aggregate «other incomes»
**Core NIM: Non Interest Margin net of non-recurring items (Income from Financial Activities, Performance Fees)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