Banco di Desio e della Brianza (BDB) Q3 2024 earnings summary

Executive summary

• Consolidated net profit for the first nine months of 2024 reached €116.4 million, up 20.9% year-over-year on ordinary performance, but down 48.4% including extraordinary items from 2023.

• Revenue grew by 11.5%, with net interest income up 10.0% and net fee and commission income up 8.6% year-over-year.

• Operating margin increased by 13.2% to €218.1 million, and cost of risk improved to 22 bps from 36 bps.

• Annualised ROE stood at 11.7%, and the cost/income ratio improved to 54.9% from 57.5% a year earlier.

Financial highlights

• Operating income was €468.1 million (+11.5% YoY), with net interest income at €288.1 million (+10.0%) and net commissions at €161.1 million (+8.6%).

• Operating expenses rose 10.1% to €249.9 million, mainly due to higher personnel costs.

• Current result after taxes was €114.7 million (+20.9% YoY), while non-recurring result after taxes was €1.0 million (vs. €130.8 million in 2023).

• Total assets stood at €18.1 billion, down 2.7% from year-end 2023.

• Loans to customers reached €12.1 billion (+4.3% YoY), with direct deposits at €14.9 billion (+0.6%) and indirect deposits at €22.0 billion (+9.7%).

Outlook and guidance

• Management expects continued positive operating performance for 2024, despite macroeconomic uncertainties from geopolitical conflicts and lingering effects of the Covid-19 pandemic.

• The Group remains focused on value generation and prudent risk management in a context of moderate global growth and slow inflation decline.