Banco di Desio e della Brianza (BDB) H2 2024 earnings summary

Executive summary

• Achieved net profit of €124.2M, up 20.4% YoY on ordinary performance, with a 9.4% ROE and 18.8% CET1 ratio, reflecting strong capitalisation and profitability.

• Operating income rose 7.3% YoY to €602.1M, driven by higher net interest income (+5.7%) and net commissions (+7.1%).

• Cost/income ratio improved to 56.3%, with operating expenses up 6.8% YoY, mainly due to personnel and administrative costs.

• Asset quality remained robust: NPL ratio at 3.1%, coverage of bad loans at 76.5%, and performing loan coverage at 1.05%.

• Dividend payout proposed at €0.4566 per share, with a 50% payout ratio and a dividend yield of 9.39%.

Financial highlights

• Total assets: €18.0B (-2.8% YoY); loans to customers: €11.5B (-1.5% YoY); direct inflows: €15.5B (+5.2% YoY); indirect inflows: €22.5B (+12.3% YoY).

• Net interest income: €352.3M (+5.7% YoY); net commissions: €226.4M (+7.1% YoY); operating expenses: €331.9M (+6.8% YoY).

• Cost of credit improved to €53.5M (from €66.4M YoY); non-recurring items included €9.5M for branch rationalisation and €4.3M for BPPB acquisition costs.

• CET1 ratio: 18.8%; Total Capital Ratio: 19.6%; LCR: 191.6%.

• Dividend distribution of €60.5M proposed.

Outlook and guidance

• Management expects continued positive results in 2025, barring significant macroeconomic shocks.

• Focus remains on supporting households and SMEs, growing loans and managed savings, and maintaining strong ESG and digital transformation commitments.