Credito Emiliano (CE) Q1 2025 earnings summary

Executive summary

• Net profit reached €229.3 million, up 42.5% year-over-year, with normalized net profit at €135.6 million, excluding a €93.7 million gain from the merchant acquiring business transfer to Worldline.

• Over 48,000 new clients were acquired, and customer funding rose to €104 billion (+6.0% YoY).

• Loans to customers increased 2.5% year-over-year to €35.4 billion, outperforming the industry, with strong growth in consumer credit (+14.1%).

• Asset quality remained robust, with a gross NPL ratio of 1.8% and cost of risk at 11 bps.

• CET1 ratio stood at 16.9% for the group and 15.7% at the holding level, well above regulatory requirements.

Financial highlights

• Operating income was €475.4 million, down 9.5% year-over-year; net interest income fell 18% to €234.2 million.

• Core non-interest margin rose to €199.7 million, up 2.4% year-over-year.

• Operating costs increased 6% year-over-year to €234.7 million, mainly due to staff and IT investments.

• Extraordinary profits included €95 million from the merchant acquiring business sale.

• Cost/income ratio increased to 49.3% from 42.1% a year earlier.

Outlook and guidance

• Management expects continued support for financial margin from renewed hedging derivatives in a lower rate environment.

• Basel IV implementation and regulatory reporting changes are being addressed, with full adaptation expected by June 2025.

• The group will focus on supporting customers, investing in digital transformation, and integrating ESG into processes and offerings.

• Cost of credit is expected to remain low, while commission income should benefit from the diversified business model.

• Management remains confident in the group’s diversified model and governance despite expected volatility.