Credito Emiliano (CE) Q4 2024 earnings summary

Executive summary

• Net profit reached €620.1 million, up 10.3% year-over-year, with ROE at 16.1% and ROTE at 18.5%, after €33 million in contributions to distressed bank funds and €4 million to the life insurance guarantee fund.

• The group maintained strong capital soundness and asset quality, with CET1 ratio at 16.7% (Group) and 15.5% (Holding), and a gross NPL ratio of 1.81%.

• Customer loans grew 1.8% year-over-year to €36.4 billion, outperforming an industry decline of 1.6%.

• Over 181,000 new customers were acquired, and the customer base grew 5.5% to 1.6 million.

• Focus remained on client-centric growth, digitalization, and sustainability, with significant investments in technology and ESG initiatives.

Financial highlights

• Operating income reached €2,032.3 million, up 6.5% year-over-year, with net interest income at €1,119.5 million (+2.6% YoY) and non-interest margin at €912.8 million (+11.6% YoY).

• Net profit was €620.1 million (+10.3% YoY); net operating profit rose 5.1% YoY to €1,021.4 million.

• Customer loans grew 1.8% YoY to €36.4 billion; total customer funding reached €105.2 billion (+9% YoY), with net inflows totaling €4.7 billion.

• Net commissions totaled €737.2 million (+10% YoY), with AUM fees up 16.6%.

• Operating costs increased 8.6% due to IT investments and payroll adjustments.

Outlook and guidance

• Expectation of further rate cuts in 2025, with commissions and recurring fees to play a larger role in revenue.

• Loan growth target for 2025 set at 2-3%, with inflows expected to exceed €4.5 billion.

• Assets under management projected to grow by 5% in 2025, excluding performance fees.

• Cost of risk expected to remain below 20 bps in 2025; cost of credit anticipated to remain low.

• Continued focus on organic growth, digital transformation, AI, ESG integration, and value-accretive M&A opportunities.