Banco di Desio e della Brianza (BDB) H1 2024 earnings summary

Executive summary

• Consolidated net profit for H1 2024 was €78.1 million, up 29.4% year-over-year on ordinary performance, but down 59.6% including extraordinary items from H1 2023, which included significant one-off gains.

• Operating income rose 14.7% YoY to €314.4 million, driven by higher net interest income and commissions.

• Operating margin increased by 21.6% YoY, with cost/income ratio improving to 53.8% from 56.8%.

• The Group completed the acquisition of 89.23% of Dynamica Retail S.p.A., expanding its consumer lending activities.

• Fitch Ratings upgraded the Bank’s deposit ratings, reflecting improved profitability, asset quality, and capitalisation.

Financial highlights

• Net profit: €78.1 million (up 29.4% YoY on ordinary basis).

• Operating income: €314.4 million (+14.7% YoY).

• Net interest income: €192.1 million (+14.0% YoY); net commissions up €9.9 million (+9.9% YoY).

• Operating expenses: €162.1 million (+8.9% YoY), mainly due to higher personnel costs.

• Cost/income ratio improved to 53.8% from 56.8% YoY.

• Loans to customers: €11.65 billion (stable YoY).

• Total assets: €18.31 billion (-1.3% vs. Dec 2023).

• Direct inflows: €15.3 billion (+3.6% vs. Dec 2023).

• Indirect inflows: €21.2 billion (+5.6% vs. Dec 2023).

Outlook and guidance

• Management expects positive results for the full year, barring significant adverse macroeconomic events.

• The Group will continue to focus on innovation, digitalisation, ESG criteria, and proximity to customers as outlined in the “Beyond 26” Business Plan.

• Capital solidity confirmed with CET1 at 17.60% and TCR at 18.38%.

• SREP capital requirements for the group remain unchanged from 2023.

• Ongoing integration of sustainability and climate risk factors into business planning.