Credito Emiliano (CE) Q1 2025 earnings summary

Executive summary

• Consolidated net profit reached €229.3 million in Q1 2025, up 42.5% year-over-year, with normalized net profit at €135.6 million excluding a €93.7–95 million gain from the merchant acquiring business sale to Worldline.

• Total revenues declined 9.5% year-over-year due to an 18% drop in net interest income, while core non-interest margin grew up to 2.4%.

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

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

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

Financial highlights

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

• Non-interest margin rose up to €241.1 million (+0.6% YoY), with trading income up 44%.

• Operating costs increased 6% year-over-year, mainly due to contractual staff increases and IT investments.

• Gross operating profit dropped 20.8% YoY to €240.7 million; net operating profit was €214.1 million (-22.9% YoY).

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

Outlook and guidance

• Management expects continued complexity and volatility due to market and rate trends, but remains confident in the group’s diversified model and governance.

• Strategic focus includes supporting customers, investing in digital transformation and AI, and expanding ESG offerings.

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

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