Credito Emiliano (CE) Q4 2025 earnings summary

Executive summary

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

• Loans to customers grew 3.6% year-over-year, outpacing the industry average, and total customer funding rose to €114.1 billion.

• Customer base expanded by 5.8% to 1.7 million, with over 181,000 new customers acquired.

• Continued investment in digital transformation, technology, and ESG initiatives to enhance customer experience and operational efficiency.

• Proposed dividend of €0.75 per share.

Financial highlights

• Operating income for FY25 was €1,883.5 million, down 7.3% year-over-year, with net interest income at €973.9 million (-13% y/y).

• ROE at 14.7% (normalized 12.4%), ROTE at 16.7% (normalized 14.1%).

• CET1 ratio at 16.99% (Banking Group) and 15.82% (Holding), with NSFR at 141% and LCR at 177%.

• Cost of risk at 13 bps, gross NPL ratio at 1.6%, net NPL ratio at 0.67%, and coverage ratio at 59.2%.

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

Outlook and guidance

• Interest margin expected to remain flat in 2026, with a target of 3% loan growth and commission income projected to grow slightly above 2025.

• Management expects continued organic growth, supported by strong capital and liquidity positions.

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

• Ongoing investments in IT, digital transformation, and AI to support future growth and efficiency.

• Revenue growth to be supported by loan expansion and commission income.