Credito Emiliano (CE) Q3 2024 earnings summary

Executive summary

• Net profit reached €485.9 million, up 10.7% year-over-year, after €33 million in contributions to distressed banks and over €4 million in insurance guarantee provisions.

• Revenue grew 7.2% YoY, driven by net interest income (+7.5%) and non-interest margin (+6.8%).

• Asset quality remained robust, with a gross NPL ratio of 1.9% and cost of risk at 6 bps, among the lowest in the sector.

• CET1 ratio at 17.2% (banking group) and 15.8% (Credemholding), providing a significant buffer over regulatory requirements.

• Loans to customers grew 0.7% YoY to €34.7 billion, outperforming the industry contraction of -1.4%.

Financial highlights

• Operating income: €1,509.6 million (+7.2% YoY).

• Net interest income: €847.6 million (+7.5% YoY).

• Non-interest margin: €662.0 million (+6.8% YoY).

• Operating costs increased by 7.4% YoY, mainly due to IT investments, new labor agreements, and higher administrative expenses.

• Cost/income ratio was 42.8%; annualized ROE 17.1%, ROTE 19.5%.

Segment performance

• Commercial Banking contributed €281.9 million to net profit; Wealth & Private Banking €157.4 million; Private Banking €59.6 million; Extended Banking Services €57.0 million.

• Commercial Banking funding reached €57.3 billion (+8% YoY), loans €25.8 billion, and 79,000 new customers acquired.

• Avvera achieved €1.6 billion total business, €15.6 million net profit (+89% YoY), and 50,000 new customers.

• Wealth Management profit was €100 million (+25.1% YoY), with ESG assets at €14.1 billion (+82% YoY).

• Asset Management and Insurance segments continued to show strong net inflows and profitability.