(AGENPARL) – mer 07 agosto 2024 PRESS RELEASE
CONSOLIDATED RESULTS AS AT 30 JUNE 2024
1H24 CONSOLIDATED NET PROFIT OF €724.2 MN
CORE REVENUES1 OF €2,697.2 MN, +7.0% ON 1H23
NET INTEREST INCOME UP AT €1,682.5 MN (+8.9% H/H) AND NET COMMISSION INCOME UP AT €1,014.7
MN (+4.0% H/H) MAINLY THANKS TO AuM FEES (+13.4% H/H)
OPERATIONAL EFFICIENCY CONFIRMED, WITH COST/INCOME RATIO2 OF 50.6%
CREDIT QUALITY CONFIRMED, WITH GROSS NPE RATIO AT 2.8% AND NET NPE RATIO AT 1.3%
HIGH TOTAL NPL COVERAGE OF 53.3% VS. 52.5% AT END-2023, ONE OF THE HIGHEST IN ITALY
ANNUALISED COST OF RISK3 AT 41 BPS FOR THE FIRST HALF, DOWN FROM 48 BPS IN FY23
ORGANIC GENERATION OF CAPITAL FURTHER REINFORCING CAPITAL EVOLUTION, WITH A CET1 RATIO 4
OF 15.3%
MAJOR VALUE CREATION FOR SHAREHOLDERS WITH 1H24 EPS5 OF €0.512
SOUND LIQUIDITY POSITION WITH LCR AT 161% AND NSFR AT 135% (AFTER REPAYMENT OF €16 BN
WORTH OF TLTRO FUNDING IN 2023/2024)
WELL ON OUR WAY TO DELIVERING 2024 YEAR-END AMBITIONS
THE NEW BUSINESS PLAN WILL BE PRESENTED IN MILAN ON 10 OCTOBER
– Share capital Euro 2,104,315,691.40 – ABI Code 5387.6 – Register of Banks No. 4932 – Member of the Interbank Deposit Guarantee Fund and of the National Guarantee Fund – Parent Company of the
Page 1
Modena – 7 August 2024. The Board of Directors of BPER Banca (the “Bank”), chaired by Fabio Cerchiai, at its meeting
yesterday afternoon, 6 August 2024, examined and approved the Bank separate and Group consolidated results as at 30 June
2024.
The macroeconomic picture in the first quarter of 2024 was characterised by limited growth in economic activity in Italy and
the euro area, with the most recent estimates 6 suggesting that it would have continued to increase at a modest pace in the
second quarter, mainly due to the momentum of Spain, France and Italy, still sustained by growth in services, while
manufacturing would have continued to be weak. Ongoing global disinflation is boosting household purchasing power with a
consequent positive outlook for consumption, albeit against a background of high geopolitical uncertainty. Against this
backdrop, the business and organisational strategy deployed so far has made it possible to deliver positive operating results.
The favourable trend in commercial spread continued to benefit from the supportive level of market interest rates. The Bank
has achieved excellent results year to date, primarily on the back of the contribution from net interest income and net
commissions. As at 30 June 2024, consolidated net profit amounted to €724.2 mn, after having expensed €109.6 mn in
contributions to the banking system funds in the 6M period. Our sound credit quality was confirmed in this first half of the
year, with the NPE ratio settling at 2.8% gross (1.3% net), which sees us positioned as best in class in the Italian banking industry.
The annualised cost of credit stands at 41 bps, down from 48 bps registered at the end of 2023, and NPL coverage is now at
53.3%, up from the year-end level of 52.5%.
The Bank’s capital and liquidity profiles remain strong thanks to the organic generation of capital which drives the CET1 ratio 7
to 15.3%. The same applies to the Bank’s liquidity position, with regulatory ratios being broadly in excess of the minimum
thresholds required, even after the €1.7 bn repayment of the last TLTRO funding tranche in March 2024.
Gianni Franco Papa, Chief Executive Officer, commented: “The activity in the six-month period bears witness to the
commitment of all colleagues towards a constant and steady value generation. All divisions have been contributing, both in
terms of revenues and through strict cost discipline. Credit risk indicators continue to remain at conservative levels. The Bank’s
capital position and liquidity levels remain high, also thanks to the continuous generation of capital, which allows us to
confidently manage a macro-economic scenario that is marked by great uncertainty. We are working to define our new Business
Plan which, together with the management team, we will present in Milan on 10th October 2024. It will be a growth-driven plan
enabling us to continue generating value for all our stakeholders”.
********************
Page 2
Consolidated income statement: key figures
Since the first quarter of 2024, the Reclassified Income Statement has been affected by the following restatements: 1) Gains (losses) of equity investments measured under the equity
method are presented as a separate line in Operating Income (former Gains (Losses) on investments), 2) Contributions to the SRF, DGS and FITD-SV funds are shown under Profit
(Loss) from current operations, 3) Other minor reclassifications of individual cost/income items (as per the itemised description in the Notes). In the interest of comparability of results,
similar reclassifications have been made for the comparative reporting periods.
Net Interest Income totalled €1,682.5 mn (+8.9% H/H) primarily on the back of the commercial spread arising from the interest
rate environment.
Net commission income8 totalled €1,014.7 mn (+4.0% H/H), with investment service fees at €427.1 mn (+8.2% H/H), non-life
insurance commissions at €49.9 mn (+37.8% H/H) and fees and commissions on traditional banking at €537.8 mn (-1.3% H/H).
Dividends at €37.1 mn (+47.6% H/H), of which €11.1 mn from Bank of Italy stake and €11.8 mn from Arca Vita. Net income
from financial activities amounted to €10.3 mn compared to €53.9 mn in 1H23; funding through certificates had an impact of
€-39.8 mn compared to €-16.1 mn in 1H23.
As a result of the dynamics described above, operating income9 totalled €2,758.1 mn (+4.1% H/H), driven by increased core
revenues10, amounting to €2,697.2 mn (+7.0% H/H).
Operating costs amounted to €1,569.7 mn vs €1,340.2 mn in 1H23. More specifically:
staff costs11 amounted to €1,060.2 mn and include €173.8 mn in costs relating to the extension of the workforce
optimisation manoeuvre aimed at accepting approximately 600 additional early retirement applications to
supplement the agreement signed on 23 December 2023;
other administrative expenses12 amounted to €377.3 mn vs €365.1 mn in 1H23.
net adjustments to property, plant, equipment and intangible assets amounted to €132.3 mn vs. €115.0 mn in 1H23.
The adjusted cost/income ratio13 for 1H24 was 50.6%, flat H/H
The annualised cost of risk stands at 41 bps, down from 48 bps in FY23; the loan book features a low rate of net NPE inflows
and high coverage levels. The overlays applied amounted to €221.9 mn. Net impairment losses for credit risk amounted to
€175.1 mn (-34.1% H/H).
Gains (Losses) on investments amounted to €151.3 mn in 1H24, including the positive gross capital gain of €150.1. mn related
to the disposal of the NPE servicing platform to the Gardant Group.
Contributions to the Banking System funds amount to €109.6 mn, reflecting the contribution to the Deposit Guarantee
Scheme, which is in line with the 2023 amount.
After deducting income tax, totalling €302.8 mn, and profit for the period pertaining to minority interests amounting to €17.0
mn, profit for the period pertaining to the Parent Company totalled €724.2 mn.
Page 3
Consolidated balance sheet: key figures
Unless otherwise specified, percentage changes refer to figures being compared with data as at 31/12/23.
Total Financial Assets amounted to €298.7 bn, up 2.9% on end-2023.
Direct deposits from customers14 settled at €117.6 bn (-1.0% since the end of 2023). The main driver of lower deposits was
the decline in current accounts in the first half (€-1.6 bn), compensated by the positive performance of term deposits (€+0.5
bn), certificates of deposit (€+0.6 bn) and certificates (€+0.4 bn). The stock of certificates settled at €2.4 bn, up 20.0% on the
end-2023 stock of €2.0 bn. As for bonds issued, the stock as at 30 June 2024 totalled €9.5 bn, substantially below the level as
at the end of 2023 (€11.2 bn): in February the Bank successfully placed its first Senior Preferred Bond issuance qualifying as
green in accordance with the Group’s Green, Social and Sustainability (GSS) Bond Framework, targeting institutional investors.
The issuance, with 6-year maturity and a call after year 5, was allocated for an amount of €500 mn. In March, a fixed rate, 7year maturity Covered Bond issuance was placed for an amount of €500 mn, targeting institutional investors. In May, BPER
Banca successfully placed its second Senior Preferred Bond issuance qualifying as green, targeting institutional investors. The
issuance, with 7-year maturity and a call after year 6, was allocated for an amount of €500 mn.
Assets under Management, totalling €68.6 bn, were up 5.1%, Assets under Custody, amounting to €91.4 bn, were up 7.3%
and life insurance policies, totalling €21.2 bn, were up 0.5%.
Net loans to customers amounted to €89.0 bn (€90.9 bn gross), up 0.8% since end-2023.
The loan to deposit ratio settled at 75.7% as at 30 June 2024 (vs. 74.3% at end-2023)
The disciplined approach to non-performing loan management has enabled the Bank to achieve high asset quality standards:
the share of gross non-performing loans to customers (gross NPE ratio) is 2.8% (vs. 2.4% at the end of 2023), whereas the share
of net non-performing loans to customers (net NPE ratio) is 1.3% (1.2% as at the end of 2023).
The coverage ratio for total non-performing loans rose to 53.3% (from 52.5% at the end of 2023); performing loan coverage
settled at 0.72% (vs. 0.74% at the end of 2023) and Stage 2 loan coverage was 5.35% (up from 5.05% at the end of 2023).
Financial assets, totalling €26.5 bn, account for 19.0% of total assets. Within the aggregate, debt securities amount to €24.5
bn (92.5% of the total portfolio) with duration of 2.0 years including hedging and comprise €13.4 bn worth of bonds issued by
governments and other supranational public entities, of which €8.9 bn of Italian government bonds, down 13.0% Y/Y.
Total shareholders’ equity amounts to €10,367.9 mn, with minority interests accounting for €191.8 mn. Group consolidated
shareholders’ equity, including profit for the period, amounts to €10,176.1 mn. It is noted that on 9 January 2024, the Bank
successfully placed an Additional Tier 1 perpetual bond issuance, callable from year 5, for a total principal amount of €500 mn.
With regard to the Bank’s liquidity position, the LCR (“Liquidity Coverage Ratio”) was 161.4% as at 30 June 2024, after the €1.7
bn repayment of the last TLTRO tranche at the end of March, whereas the NSFR (“Net Stable Funding Ratio”) amounted to
134.6%.
Page 4
Group structure highlights as at 30 June 2024
The BPER Banca Group is present in twenty regions of Italy with a network of 1,634 bank branches (in addition to the
Luxembourg head office of BPER Bank Luxembourg S.A.).
Group employees total 20,072 as compared to a headcount of 20,224 at year-end 2023.
Capital Ratios
Reported below are the capital ratios as at 30 June 2024:
Common Equity Tier 1 (CET1) ratio15 of 15.3% (14.5% as at 31 December 2023);
Tier 1 ratio 16 of 16.5% (14.7% at 31 December 2023);
Total Capital Ratio17 of 19.8% (18.1% as at 31 December 2023).
Ratings
With regard to the ratings assigned to the Bank, it should be noted that, on 18 March 2024, the ratings agency S&P Global
Ratings assigned a Long-Term Issuer Credit Rating of “BBB-”, with a Positive Outlook, and a Short-Term Issuer Credit rating of
“A-3”. The new investment grade rating by S&P Global Ratings confirms the steady improvement in the Bank’s financial
strength, sound credit quality, robust capitalisation, profitability, strong funding and liquidity position. On 27 May 2024,
Moody’s Ratings upgraded the Bank’s standalone Baseline Credit Assessment (BCA) from “ba1” to “baa3” investment grade,
driving a similar upgrade of the issuer and senior unsecured debt ratings, both up from “Ba1” to “Baa3”. Moody’s acknowledged
the Bank’s increased ability to generate profits, improved capitalisation, good asset quality and a robust funding and liquidity
position. Finally, on 17 June 2024, the ratings agency Morningstar DBRS revised the Bank’s Trend from Stable to Positive,
confirming all key ratings in the investment grade category. The positive rating action reflected the improvement in the Bank’s
ability to generate recurring earnings, improved operating efficiency and lower credit costs.
All key ratings assigned to the Bank by the various ratings agencies are now Investment Grade.
Outlook for operations
Global economy continued to improve in the spring still driven by services, but with manufacturing also showing signs of
strengthening. Consumption keeps growing in the United States while the labour market is somehow shrinking; industrial
activity is expanding in China, while domestic demand remains weak and the real estate crisis continues to weigh on economic
performance. International trade is slightly accelerating after a modest growth in the first quarter. The central banks of the
main advanced economies outside the Euro area kept their policy rates unchanged. The outlook for the world economy is for
growth of around 3.2% in 202418, thanks to the process of reducing inflation and the recovery of exports.
In the first quarter of 2024, euro area GDP regained ground, with growth in services and construction as opposed to a decline
in manufacturing. Net foreign demand was the main contributor, joined by a modest contribution from household
consumption; investment decreased, with the exception of the construction sector. According to the ECB projections 19
published in June, annual average real GDP growth in the euro area is expected to be 0.9% in 2024, and to strengthen to 1.4%
in 2025 and 1.6% in 2026. Preliminary data for the second quarter of 2024 confirm the growth of the Eurozone economy, driven
in particular by Spain, which shows the strongest momentum, followed by France, while Germany is again facing a contraction.
In June, the ECB Governing Council cut the key interest rates by 25 bps, after they had remained unchanged at high levels in
the previous nine months. The decision was based on an updated assessment of the inflation outlook, the dynamics of
underlying inflation and the strength of monetary policy transmission. The Council reiterated its determination to ensure that
inflation returns to its medium-term target in a timely manner, by keeping policy rates sufficiently restrictive for as long as
necessary.
With reference to the Italian economic situation, following moderate growth in the first quarter of the year, Italian GDP
Page 5
continued to expand in the spring although at a slower pace according to the estimates 20, still marking the fourth consecutive
quarter of cyclical growth. GDP was buoyed again by services, particularly tourism. By contrast, activity declined in construction,
manufacturing and agriculture. On the demand side, further growth in exports and positive signs in consumption in the first
quarter were associated with a less dynamic net foreign demand and a further expansion of domestic demand, net of
inventories, in the second quarter. Acquired growth for 2024, according to the Italian National Institute of Statistics, ISTAT,
stands at 0.7%. Italian GDP is currently estimated to increase at an average annual rate of around 1.0% over the three-year
For the financial year 2024, the Bank has updated its guidance22 as compared to the results as at the end of 2023, showing a
stable NII, positive dynamics in net commission income on the back of growing revenues from asset management and advisory
services, and operating costs slightly up on 2023.
On the asset quality front, the expectation is to maintain a slightly improving cost of risk with respect to 2023. Adjusted net
profit is expected to be in line with 2023, net of the effect of DTAs. The Bank’s capital strength is expected to be confirmed and
strengthened.
********************
The Half Year Report of the BPER Group as at 30 June 2024, inclusive of the Independent Auditors’ Limited Review report, will
be available at the Bank’s head office, on the Bank’s website (www.bper.it and group.bper.it), as well as on the websites of
Borsa Italiana S.p.A. and of the authorised storage platform (www.1info.it), as required by law. Note: the auditors have not yet
completed their review.
As a complement to the information provided in this press release, attached please find the consolidated Balance Sheet and
Income Statement (quarterly breakdown and reclassified) as at 30 June 2024, in addition to a summary of key financial
indicators.
Modena, 7 August 2024
The Chief Executive Officer
Gianni Franco Papa
********************
The Manager responsible for preparing the Company’s financial reports, Marco Bonfatti, declares, pursuant to art. 154-bis,
paragraph 2, of Legislative Decree no. 58/1998 (Consolidated Law on Finance), that the accounting information contained in
this press release corresponds to the underlying documentary evidence, books and accounting records.
Modena, 7 August 2024
The Manager responsible for preparing
the company’s financial reports
Marco Bonfatti
********************
Page 6
A conference call to illustrate the consolidated results of the BPER Banca Group as at 30 June 2024 will be held today at 10 a.m.
(CET).
The conference call will be hosted in English by the Chief Executive Officer, Gianni Franco Papa.
To participate in the conference call, please register here for access details. Registration will add the event to your calendar.
As an alternative, please use the dial-in numbers below according to your location:
ITALY:
The audio webcast will be available at the following link. A set of slides to support the presentation will be made available on
the Bank’s website group.bper.it in the Investor Relations section, shortly before the start of the conference call.
Contacts:
Investor Relations
The Manager responsible for preparing the
External Relations
company’s financial reports
http://www.bper.it – group.bper.it
This press release is also available in the 1INFO storage system.
Page 7
Notes
Net interest income plus net commission income.
The cost/income ratio is calculated on the basis of the reclassified income statement (operating costs/operating income), exc luding €173.8 mn booked as a non-recurring item in
the second quarter of 2024 under Staff costs in relation to the integration of the workforce optimisation manoeuvre aimed at accepting 600 additional early retirement applications
received under the agreement signed on 23 December 2023.
3 The cost of risk is calculated on an annualised basis for the reporting period.
4 The capital ratios were calculated by including profit for the period for the portion not allocated to dividends, thus bringing forward the effects of the ECB’s authorisation to include
these profits in Own Funds pursuant to art. 26, para. 2 of the CRR.
5 Basic EPS as at 30 June 2024 is €0.512 and Diluted EPS is €0.500.
6 Bank of Italy, Economic Bulletin no. 3, 12 July 2024. ECB, Monetary policy statement, 18/7/24.
7 See Note 4.
8 Based on the same overall net profitability, the margins in the Income Statement as at 30 June 2024 were affected by the reclassification of some cost/income components. More
specifically, in the first half: i. Net commissions income included €16.2 mn worth of charges for payment services provided (former Other administrative expenses); ii. Other
administrative expenses were offset within the same item by €8.3 mn in recovery of costs for services ancillary to lending (former Commission income); iii. Staff costs included €9.1
mn in business trips and training charges (former Other administrative expenses); iv. gross effects from the use of provisions for risks and charges set aside in prior periods (former
Other operating expenses/Reversal of provisions for risks and charges) were directly offset within the same item by €17 mn. In the interest of comparability of results, similar
reclassifications have been made for the comparative reporting periods.
9 See Note 8.
10 See Note 1.
11 See Note 8.
12 See Note 8.
13 See Note 2.
14 Includes amounts due to customers, debt securities issued and financial liabilities designated at fair value.
15 See Note 4.
16 See Note 4.
17 See Note 4.
18 IMF, World Economic Outlook, update, July 2024.
19 ECB – ECB Eurosystem staff macroeconomic projections for the euro area countries, June 2024.
20 See Note 6.
21 ISTAT, Quarterly accounts, II Quarter 2024, Preliminary estimate of GDP, 30 July 2024; Bank of Italy – Economic Bulletin No. 3 of 12 July 2024: Italian GDP is expected to grow
moderately by 0.6% in 2024 (0.8% not adjusted for the calendar effect due to number of working days), to then accelerate slightly to 0.9 % in 2025 and 1.1 % in 2026.
22 Guidance is based on adjusted figures. The 2023 net profit figure does not include the impact from deferred tax assets on loan losses totalling €380 million. The 2024 net profit
figure does not include €150.1 mn in gains from disposal of the equity investment in the servicing platform relating to the management and recovery of loans classified as unlikely
to pay (UTP) and non-performing (NPL), and €-173.8 mn booked in the second quarter of 2024 under Staff costs, related to the integration of the workforce optimisation manoeuvre
and its overall tax effect amounting to €+50.1 mn.
Page 8
Reclassified financial statements as at 30 June 2024
For greater clarity in the presentation of the results for the period, the accounting schedules envisaged by the 8th update of Bank of Italy Circular no. 262/2005
have been reclassified as follows.
In the balance sheet:
debt securities valued at amortised cost (item 40 “Financial assets measured at amortised cost”) have been reclassified under item “Financial
assets”;
loans mandatorily measured at fair value (included in item 20 c) “Financial assets measured at fair value through profit or loss – other financial
assets mandatorily measured at fair value”) have been reclassified to the item “Loans”;
the item “Other assets” includes items 110 “Tax assets”, 120 “Non-current assets and disposal groups classified as held for sale” and 130 “Other
assets”;
the item “Other liabilities” includes items 60 “Tax liabilities”, 80 “Other liabilities”, 90 “Employee termination indemnities” and 100 “Provisions for
risks and charges”.
In the income statement:
the item “Net commission income” includes commission on placement of Certificates, allocated for accounting purposes to item 110 “Net income
on other financial assets and liabilities measured at fair value through profit or loss” of the accounting schedule (Euro 11.1 million at 30 June 2024
and Euro 12.6 million at 30 June 2023);
the item “Net income from financial activities” includes items 80, 90, 100 and 110 of the accounting schedule, net of commission on placement of
the item “Gains (losses) of equity investments measured under the equity method” includes the Parent Company’s share of any gains (losses) of
Certificates mentioned above;
equity investments consolidated under the equity method, allocated to item 250 “Gains (Losses) of equity investments” in the accounting
statement;
indirect tax recoveries, allocated for accounting purposes to item 230 “Other operating expense/income” have been reclassified as a reduction in
the related costs under “Other administrative expenses” (Euro 151 million at 30 June 2024 and Euro 136.2 million at 30 June 2023);
recoveries of costs of appraisals for new loans, allocated for accounting purposes to item 230 “Other operating expense/income”, have been
reclassified as a reduction in related costs under “Other administrative expenses” (Euro 8.3 milion at 30 June 2024 and Euro 6.6 milion at 30 June
2023);
the item “Staff costs” includes costs relating to staff training and refund of expenses against receipts, allocated to item 190 b) Other administrative
expenses in the accounting statement (Euro 9.1 million at 30 June 2024 and Euro 10.9 million at 30 June 2023);
the item “Net adjustments to property, plant, equipment and intangible assets” includes items 210 and 220 of the accounting statement;
gross effects from the use of provisions for risks and charges set aside in prior periods (former Other operating expense/Reversal of provisions for
risks and charges) were directly offset within the same item by Euro 17 milion;
the item “Gains (Losses) on investments” includes items 250, 260, 270 and 280 of the accounting statement, net of the Parent Company’s share of
any gains (losses) of equity investments consolidated under the equity method, reclassified as a separate item;
the item “Contributions to the DGS, SRF and IDPF-VS funds” has been shown separately from the specific accounting technical forms to give a better
and clearer representation, as well as to have the “Other administrative expenses” better reflect the trend in the Group’s operating costs. In
particular, at 30 June 2024, this item represents the component allocated for accounting purposes to administrative expenses in relation to the
2024 contribution to the DGS (Deposit Guarantee Fund) for an amount of Euro 109.6 million.
It should also be noted that the Reclassified Income Statement reflects the additional reclassification already adopted in the accounting statement with regard
to ‘charges for payment services provided’ that were reclassified from “Other administrative expenses” to“Net commissions” (Euro16.2 milion at 30 June 2024,
Euro 13.2 milion at 30 June 2023).
Page 9
Reclassified consolidated balance sheet as at 30 June 2024
Assets
Cash and cash equivalents
Financial assets
a) Financial assets held for trading
Change
(in thousands)
% Change
8,554,396
10,085,595
(1,531,199)
-15.18
26,538,260
28,600,425
(2,062,165)
-7.21
733,943
672,598
61,345
1,991
(1,991)
-100.00
771,655
762,059
9,596
5,121,297
6,859,241
(1,737,944)
-25.34
19,911,365
20,304,536
(393,171)
-1.94
6,026,571
6,721,529
(694,958)
-10.34
13,884,794
13,583,007
301,787
90,673,108
89,993,197
679,911
1,573,342
1,661,081
(87,739)
-5.28
88,962,488
88,224,354
738,134
b) Financial assets designated at fair value
c) Other financial assets mandatorily measured at fair value
d) Financial assets measured at fair value through other comprehensive
income
e) Debt securities measured at amortised cost
– banks
– customers
Loans
a) Loans to banks
b) Loans to customers
c) Loans mandatorily measured at fair value
Hedging derivatives
Equity investments
Property, plant and equipment
Intangible assets
– of which: goodwill
137,278
107,762
29,516
27.39
953,186
1,122,566
(169,380)
-15.09
458,035
422,046
35,989
2,538,849
2,456,850
81,999
675,890
648,981
26,909
170,018
170,018
Other assets
9,005,629
8,798,699
206,930
Total assets
139,397,353
142,128,359
(2,731,006)
-1.92
Liabilities and shareholders’ equity
Due to banks
Change
(in thousands)
% Change
5,334,790
7,754,450
(2,419,660)
-31.20
Direct deposits
117,564,754
118,766,662
(1,201,908)
-1.01
a) Due to customers
104,378,673
104,854,552
(475,879)
-0.45
10,775,256
11,902,469
(1,127,213)
-9.47
2,410,825
2,009,641
401,184
19.96
286,473
300,955
(14,482)
-4.81
93,409
111,374
(17,965)
-16.13
237,356
266,558
(29,202)
-10.96
b) Change in value of macro-hedged financial liabilities (+/-)
(143,947)
(155,184)
11,237
-7.24
Other liabilities
5,750,023
5,629,441
120,582
191,819
199,328
(7,509)
-3.77
10,176,085
9,366,149
809,936
170,588
151,396
19,192
12.68
5,302,571
4,206,666
1,095,905
26.05
645,249
150,000
495,249
330.17
d) Share premium reserve
1,237,512
1,236,525
e) Share capital
2,104,316
2,104,316
(8,323)
(2,250)
(6,073)
269.91
b) Debt securities issued
c) Financial liabilities designated at fair value
Financial liabilities held for trading
Hedging
a) Hedging derivatives
Minority interests
Shareholders’ equity pertaining to the Parent Company
a) Valuation reserves
b) Reserves
c) Equity instruments
f) Treasury shares
g) Profit (Loss) for the period
Total liabilities and shareholders’ equity
724,172
1,519,496
(795,324)
-52.34
139,397,353
142,128,359
(2,731,006)
-1.92
Page 10
Reclassified consolidated income statement as at 30 June 2024
Items
Change
(in thousands)
% Change
10+20
Net interest income
1,682,472
1,544,969
137,503
40+50
Net commission income
1,014,738
975,858
38,880
Dividends
37,093
25,135
11,958
47.58
Gains (losses) of equity investments measured under the equity
method
(1,271)
16,677
(17,948)
-107.62
Net income from financial activities
10,293
53,948
(43,655)
-80.92
-54.89
80+90+100+110
Other operating expense/income
Operating income
190 a)
Staff costs
190 b)
Other administrative expenses
210+220
Net adjustments to property, plant and equipment and intangible
assets
(17,914)
108,824
(1,060,157)
(860,041)
(200,116)
23.27
(377,266)
(365,109)
(12,157)
(132,250)
(115,017)
(17,233)
14.98
(1,340,167)
(229,506)
17.13
Net operating income
1,188,377
1,309,059
(120,682)
-9.22
Net impairment losses to financial assets at amortised cost
(174,447)
(269,330)
94,883
-35.23
– loans to customers
(180,864)
(271,225)
90,361
-33.32
6,417
1,895
4,522
238.63
(542)
-108.84
– other financial assets
130 b)
32,639
2,649,226
(1,569,673)
Operating costs
130 a)
14,725
2,758,050
Net impairment losses to financial assets at fair value
Gains (Losses) from contractual modifications without
derecognition
(655)
2,896
(3,551)
-122.62
(175,146)
(265,936)
90,790
-34.14
Net provisions for risks and charges
(11,005)
(65,386)
54,381
-83.17
Gains (Losses) on investments
151,327
(7,346)
158,673
Profit (Loss) from current operations
1,153,553
970,391
183,162
18.88
Contributions to SRF, DGS, IDPF – VS
(109,564)
(49,484)
(60,080)
121.41
Profit (Loss) before tax
1,043,989
920,907
123,082
13.37
Income taxes for the period
(302,812)
(201,396)
(101,416)
50.36
Profit (Loss) for the period
741,177
719,511
21,666
Profit (Loss) for the period pertaining to minority interests
(17,005)
(14,960)
(2,045)
13.67
Profit (Loss) for the period pertaining to the Parent Company
724,172
704,551
19,621
Net impairment losses for credit risk
250+260+
270+280
Income Statement figures as at 30 June 2023 have been restated as a result of the reclassification of some cost/income components.
Page 11
Reclassified consolidated income statement by quarter as at 30 June 2024
Items
(in thousands)
quarter 2024
quarter 2024
quarter 2023
quarter 2023
quarter 2023
4th quarter
Net interest income
843,620
838,852
725,989
818,980
836,548
870,300
Net commission income
498,723
516,015
496,246
479,612
476,250
517,178
Dividends
Gains (losses) of equity investments measured under the
equity method
4,882
32,211
2,223
22,912
4,810
(4,118)
2,847
11,546
5,131
6,853
Net income from financial activities
13,968
(3,675)
50,882
3,066
41,627
4,467
4,099
10,626
33,220
(581)
4,984
63,114
Operating income
1,361,174
1,396,876
1,320,106
1,329,120
1,364,645
1,462,851
Staff costs
(437,692)
(622,465)
(429,175)
(430,866)
(385,477)
(755,879)
Other administrative expenses
Net adjustments to property, plant and equipment and
intangible assets
(188,567)
(188,699)
(179,602)
(185,507)
(181,573)
(224,541)
(63,044)
(69,206)
(57,161)
(57,856)
(59,039)
(89,508)
Operating costs
(689,303)
(880,370)
(665,938)
(674,229)
(626,089)
(1,069,928)
Net operating income
671,871
516,506
654,168
654,891
738,556
392,923
Net impairment losses to financial assets at amortised cost
(92,223)
(82,224)
(142,411)
(126,919)
(95,351)
(71,580)
– loans to customers
(94,977)
(85,887)
(141,199)
(130,026)
(82,577)
(71,781)
2,754
3,663
(1,212)
3,107
(12,774)
(1,049)
1,005
(817)
(184)
(471)
1,905
(314)
(93,456)
(81,690)
(140,537)
(125,399)
(95,744)
(71,632)
(4,659)
(6,346)
(57,088)
(8,298)
(4,093)
6,998
Gains (Losses) on investments
149,347
1,980
(7,924)
23,301
(74,816)
Profit (Loss) from current operations
723,103
430,450
457,121
513,270
662,020
253,473
(111,822)
2,258
(69,530)
20,046
(125,753)
13,996
611,281
432,708
387,591
533,316
536,267
267,469
(145,029)
(157,783)
(88,249)
(113,147)
(145,968)
174,490
466,252
274,925
299,342
420,169
390,299
441,959
(8,976)
(8,029)
(8,667)
(6,293)
(7,780)
(9,533)
457,276
266,896
290,675
413,876
382,519
432,426
Other operating expense/income
– other financial assets
Net impairment losses to financial assets at fair value
Gains (Losses) from contractual modifications without
derecognition
Net impairment losses for credit risk
Net provisions for risks and charges
Contributions to SRF, DGS, IDPF – VS
Profit (Loss) before tax
Income taxes for the period
Profit (Loss) for the period
Profit (Loss) for the period pertaining to minority interests
Profit (Loss) for the period pertaining to the Parent
Company
Page 12
Consolidated balance sheet as at 30 June 2024
Assets
(in thousands)
Cash and cash equivalents
8,554,396
10,085,595
Financial assets measured at fair value through profit or loss
1,642,876
1,544,410
733,943
672,598
1,991
908,933
869,821
a) financial assets held for trading
b) financial assets designated at fair value
c) other financial assets mandatorily measured at fair value
Financial assets measured at fair value through other comprehensive income
Financial assets measured at amortised cost
a) loans to banks
b) loans to customers
Hedging derivatives
Equity investments
Property, plant and equipment
5,121,297
6,859,241
110,447,195
110,189,971
7,599,913
8,382,610
102,847,282
101,807,361
953,186
1,122,566
458,035
422,046
2,538,849
2,456,850
Intangible assets
675,890
648,981
of which: – goodwill
170,018
170,018
2,489,987
2,711,737
883,039
877,248
1,606,948
1,834,489
20,404
13,969
Tax assets
a) current
b) deferred
Non-current assets and disposal groups classified as held for sale
Other assets
6,495,238
6,072,993
Total assets
139,397,353
142,128,359
(in thousands)
120,488,719
124,511,471
Liabilities and shareholders’ equity
Financial liabilities measured at amortised cost
a) due to banks
b) due to customers
c) debt securities issued
Financial liabilities held for trading
Financial liabilities designated at fair value
Hedging derivatives
Change in value of macro-hedged financial liabilities (+/-)
7,754,450
104,378,673
104,854,552
10,775,256
11,902,469
286,473
300,955
2,410,825
2,009,641
237,356
266,558
(143,947)
(155,184)
Tax liabilities
103,191
67,412
a) current
48,125
10,641
b) deferred
55,066
56,771
4,046,188
3,993,288
Other liabilities
Employee termination indemnities
5,334,790
133,230
149,492
1,467,414
1,419,249
a) commitments and guarantees granted
107,374
123,323
b) pension and similar obligations
112,042
120,401
1,247,998
1,175,525
Provisions for risks and charges
c) other provisions for risks and charges
Valuation reserves
170,588
151,396
Equity instruments
645,249
150,000
Reserves
5,302,571
4,206,666
Share premium reserve
1,237,512
1,236,525
Share capital
2,104,316
2,104,316
Treasury shares (-)
Minority interests (+/-)
Profit (Loss) for the period (+/-)
Total liabilities and shareholders’ equity
Page 13
(8,323)
(2,250)
191,819
724,172
199,328
1,519,496
139,397,353
142,128,359
Consolidated income statement as at 30 June 2024
Items
Interest and similar income
of which: interest income calculated using the effective interest method
(in thousands)
2,558,481
2,415,968
2,236,727
2,162,403
Interest and similar expense
(876,009)
(691,758)
Net interest income
1,682,472
1,544,969
Commission income
1,119,155
1,064,151
Commission expense
(115,471)
(100,892)
Net commission income
1,003,684
963,259
Dividends and similar income
37,093
25,135
Net income from trading activities
2,405
42,216
Net income from hedging activities
1,764
(2,398)
Gains (Losses) on disposal or repurchase of:
24,128
47,203
a) financial assets measured at amortised cost
b) financial assets measured at fair value through other comprehensive income
20,169
3,925
34,538
12,664
c) financial liabilities
Net income on other financial assets and liabilities measured at fair value through profit or loss
(6,950)
(20,474)
(15,598)
(33,298)
a) financial assets and liabilities designated at fair value
8,648
12,824
b) other financial assets mandatorily measured at fair value
Net interest and other banking income
2,744,596
2,599,910
Net impairment losses for credit risk relating to:
(174,491)
(268,832)
a) financial assets measured at amortised cost
b) financial assets measured at fair value through other comprehensive income
Gains (Losses) from contractual modifications without derecognition
(174,447)
(655)
(269,330)
2,896
Net income from financial activities
2,569,450
2,333,974
Net income from financial and insurance activities
2,569,450
2,333,974
Administrative expenses:
(1,706,201)
(1,417,415)
a) staff costs
(1,051,058)
(849,174)
(655,143)
(568,241)
5,995
(65,386)
b) other administrative expenses
Net provisions for risks and charges
a) commitments and guarantees granted
15,949
10,950
b) other net provisions
(9,954)
(76,336)
Net adjustments to property, plant and equipment
(80,378)
(78,682)
Net adjustments to intangible assets
(51,872)
(36,335)
Other operating expense/income
156,939
175,420
Operating costs
(1,675,517)
(1,422,398)
Gains (Losses) of equity investments
Valuation differences on property, plant and equipment and intangible assets measured at fair value
Impairment losses on goodwill
149,064
1,121
16,259
(386)
(6,768)
Gains (Losses) on disposal of investments
(129)
Profit (Loss) from current operations before tax
1,043,989
920,907
(302,812)
(201,396)
741,177
719,511
Income taxes on current operations for the period
Profit (Loss) from current operations after tax
Profit (Loss) for the period
741,177
719,511
Profit (Loss) for the period pertaining to minority interests
(17,005)
(14,960)
Profit (Loss) for the period pertaining to the Parent Company
724,172
704,551
Income Statement figures as at 30 June 2023 have been restated as a result of the reclassification of some cost/income components. More specifically,
following the reclassification carried out, Commission expense included Euro 13.2 million worth of charges for payment services (previously classified under
Other Administrative Expenses) and Other operating income included Euro 6.6 million in recovery of costs for services ancillary to lending (previously classified
under Commission income).
Page 14
Performance ratios 1
Financial ratios
2023 (*)
Net loans to customers/total assets
63.82%
62.07%
Net loans to customers/direct deposits from customers
75.67%
74.28%
Financial assets/total assets
19.04%
20.12%
Gross non-performing loans/gross loans to customers
2.76%
2.44%
Net non-performing loans/net loans to customers
1.32%
1.18%
22.78%
21.82%
16.22%
24.15%
16.47%
23.94%
1.03%
1.24%
56.91%
50.59%
0.20%
0.30%
Structural ratios
Texas ratio
Profitability ratios
Cost/Income ratio
Cost of credit
(*)The comparative balance sheet ratios, together with ROE, ROTE and ROA, have been calculated on figures at 31 December 2023 as per the Integrated report and Consolidated
financial report as at 31 December 2023, while income statement ratios have been calculated on figures at 30 June 2023.
The Texas ratio is calculated as total gross non-performing loans on net tangible equity (Group and minority interests) plus impairment provisions for non-performing loans.
ROE has been calculated as annualised net profit for the period (only recurring component of Euro 697.7 million) on average shareholders’ equity of Group not including net profit.
ROTE is calculated as the ratio between the annualised net profit for the period (solely the recurring component amounting to Euro 697.7 million) and the Group’s average
shareholders’ equity i) including net profit for the period (solely the recurring component amounting to Euro 697.7 million) stripped of the portion allocated to dividends then
annualised and ii) excluding intangible assets and equity instruments
ROA has been calculated as annualised net profit for the period including net profit pertaining to minority interests (only recurring component of Euro 714.8 million) on total assets.
The Cost/income ratio is calculated on the basis of the reclassified income statement (operating costs/operating income); when calculated on the basis of the recurring results
(operating costs of Euro 1,395.9 million), the Cost/Income ratio is 50.61%; when calculated on the basis of the schedules provided by the 8th update of Bank of Italy Circular no. 262,
the Cost/Income ratio is 61.05% (54.71% at 30 June 2023).
Cost of credit is calculated as net impairment losses to loans to customers on net loans to customers at 30 June 2024. The annualized Cost of credit for the semester is 41 bps, down
from 48 bps in FY2023.
Prudential supervision ratios
2023(*)
8,153,163
7,736,303
Own Funds (Fully Phased) (in thousands of Euro)
Common Equity Tier 1 (CET1)
Own Funds
10,579,398
9,663,855
Risk-weighted assets (RWA)
53,416,782
53,501,799
Common Equity Tier 1 Ratio (CET1 Ratio)
15.26%
14.46%
Tier 1 Ratio (T1 Ratio)
16.47%
14.74%
Total Capital Ratio (TC Ratio)
19.81%
18.06%
Fully Phased capital ratios and liquidity ratios
Leverage Ratio
Liquidity Coverage Ratio (LCR)
161.4%
160.9%
Net Stable Funding Ratio (NSFR)
134.6%
128.4%
(*)The comparative balance sheet ratios have been calculated on figures at 31 December 2023 as per the Integrated report and Consolidated financial report as at 31 December
2023, while income statement ratios have been calculated on figures at 30 June 2023.
The capital ratios were calculated by including profit for the period for the portion not allocated to dividends, thus bringing forward the effects of the ECB’s authorisation to include
these profits in Own Funds pursuant to art. 26, para 2 of the CRR.
The Leverage Ratio has been calculated according to the provisions of Regulation (EU) 575/2013 (CRR), as amended by Commission Delegated Regulation (EU) 62/2015.
To construct ratios, reference was made to the balance sheet and income statement items of the reclassified statements providing an operational management view as per the present Press
Release.
Page 15