Banco di Desio e della Brianza (BDB) Q1 2025 earnings summary

Executive summary

• Consolidated net profit for Q1 2025 was €37.0 million, down 5.5% year-over-year, with ROE at 9.9% and solid profitability despite falling rates.

• Operating margin reached €60.9 million, supported by a 2.1% increase in net commissions, while net interest income declined by 6.6% due to negative interest rate trends.

• Cost/income ratio rose to 59.0% from 56.7% in Q1 2024, reflecting higher operating expenses.

• Loans to ordinary customers increased to €12.1 billion (+0.2% from year-end 2024), while direct deposits fell 2.7% to €15.4 billion.

• Indirect deposits grew 0.5% to €22.7 billion, with ordinary customer inflows up 1.2%.

Financial highlights

• Operating income for Q1 2025 was €148.6 million, down 5.0% year-over-year.

• Net interest income dropped 6.6% to €90.0 million, while net commissions rose 2.1% to €53.3 million.

• Operating expenses increased 7.7% to €87.7 million, mainly due to higher personnel and administrative costs.

• Result from operations fell 18.8% to €60.9 million.

• Cost of credit improved to €4.6 million from €5.4 million in Q1 2024.

• No non-recurring result in Q1 2025, compared to a negative €2.8 million in Q1 2024.

Outlook and guidance

• Macroeconomic uncertainty persists due to geopolitical tensions, trade wars, and volatile raw material prices.

• Eurozone growth is expected to remain moderate, with Italian GDP forecasted to grow by 0.8% in 2025.

• The Group remains focused on supporting stakeholders amid significant uncertainty and volatility.