Credem grows in quarter and confirms strong solidity

(Alliance News) - Credito Emiliano Spa reported Tuesday that it closed the first quarter with a net profit of EUR160.9 million, which compares with EUR134.8 million in the same period last year.

Pre-tax profit rose to EUR238.9 million from EUR199.3 million while income from finance and insurance operations increased to EUR512.0 million from EUR462.7 million.

Net interest and other banking income increased to EUR538.3 million from EUR487.8 million while net interest income rose to EUR310.0 million from EUR251.3 million. Net commissions amounted to EUR166.9 million, almost unchanged from EUR166.3 million in the previous year.

Total deposits from customers at the end of March stood at EUR98.17 billion compared to EUR92.3 billion in the same period last year, and total deposits amounted to EUR113.79 billion compared to EUR105.00 billion at the end of March 2023. In particular, direct customer deposits reach EUR36.91 billion compared to EUR37.08 billion in the first quarter of the previous year.

The group's liquidity reserves amount to about EUR17.2 billion from EUR16.1 billion as of December 31, 2023 thanks to about EUR5.3 billion in central bank deposits from EUR6.4 billion at the end of 2023 and EUR11.9 billion in free ECB-eligible assets from EUR9.7 billion at the end of 2023.

Net non-performing loans to net loans are 0.16 percent compared to 0.23 percent at the end of March 2023, which is significantly lower than the system average of 1.03 percent. Gross non-performing loans are EUR290.7 million and the coverage ratio is 80.8% from 75.6% in the same period last year. Total net problem loans are EUR281.3 million, down 11 percent from EUR316.9 million at the end of March 2023.

The CET1 ratio calculated on Credemholding is 14.6%, at the highest level in the system with over EUR1.4 billion margin on regulatory capital requirements; the minimum CET 1 ratio assigned to the group for 2024 is 7.60%, among the lowest among Italian banks supervised by the ECB. The Tier 1 capital ratio is 14.9% and the total capital ratio is 17.3%. Credem is the most solid institution at the European level according to data published in December by the European Central Bank on the capital requirements of banks supervised directly by the Frankfurt-based authority, with the group's Pillar 2 Requirement confirmed at 1 percent, "testifying to the effectiveness of the business model and risk management safeguards."

Credem's stock is up 1.6 percent at EUR10.12 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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