Credito Emiliano (CE) Q4 2025 earnings summary

Executive summary

• Net profit reached EUR 621.5 million for 2025, with normalized net profit at EUR 522.8 million, excluding a one-off gain of EUR 98.6 million from the sale of merchant acquiring activities.

• Loans to customers grew 3.6% year-over-year to EUR 37.7 billion, outpacing the industry average, and the customer base expanded by 5.8% to 1.7 million, with over 181,000 new customers acquired.

• Total customer funding rose 8.4% year-over-year to EUR 114.1 billion, with record net inflows and total business volumes at EUR 151.7 billion.

• Continued investment in digital transformation and technology, including 76 million remote operations and 30 AI solutions deployed, to enhance operational efficiency and customer experience.

• Proposed dividend of EUR 0.75 per share, representing a 4.7% yield and consistent with prior year.

Financial highlights

• Operating income for FY25 was EUR 1,883.5 million, down 7.3% year-over-year, with net interest income at EUR 973.9 million (-13% y/y) and non-interest margin stable at EUR 909.6 million.

• ROE at 14.7% (normalized 12.4%), ROTE at 16.7% (normalized 14.1%), among the highest in the sector.

• NPL ratio at 1.6% (gross) and net NPL at 0.7%, with coverage at 59.2% and comprehensive coverage at 60.6%.

• CET1 ratio at 16.99% (Banking Group) and 15.82% (Holding), providing a 727 bps buffer over requirements.

• Liquidity ratios (NSFR 141%, LCR 177%) and loan-to-deposit ratio (0.92) remained robust, with liquidity reserves at EUR 18.9 billion.

Outlook and guidance

• Management expects continued organic growth, supported by strong capital and liquidity positions, with interest margin expected to remain flat in 2026 and a target of 3% volume growth.

• Commission income projected to grow slightly above 2025 levels, driven by management and brokerage fees.

• Ongoing investments in digital transformation and AI to enhance efficiency and customer experience.

• Dividend proposal of EUR 0.75 per share, maintaining stable shareholder remuneration.

• Focus on maintaining cost of risk below 20 basis points for the next 12 months.