(Alliance News) - Credito Emiliano Spa reported Thursday that it closed 2023 with a net profit of EUR562.1 million, which compares with a net profit of EUR326.1 million in 2022.

The sharp increase in net income prompted the bank's board to propose the distribution of an annual doubled dividend of EUR0.65 compared to EUR0.33 paid last year.

Pre-tax income improved to EUR825.1 million from EUR475.2 million while income from finance and insurance operations rose to EUR1.8 million from EUR1.4 million.

Net interest income increased to EUR1.17 billion from EUR714.4 million while net interest and other banking income rose to EUR1.96 billion from EUR1.33 billion in 2022. Net commissions rose to EUR605.5 million from EUR600.1 million.

Direct customer deposits rose 2.3 percent year-on-year to EUR37.2 billion and against the system trend.

"The excellent results achieved effectively express the group's resilience and development capacity," said Angelo Campani, Credem's general manager. Also this year, we have continued to support the projects of families and businesses, with an omnichannel model that is diversified, digital, sustainable and attentive to customers' needs."

"We are aware that uncertainties remain for the future environment, but we believe that maintaining our focus on creating value over time by fostering the sustainable well-being of our customers and responsibly protecting savings is also the right way to contribute to supporting the country. Central to this path, as always, will be the people of the group whose work ensures healthy, long-term growth on a daily basis."

The group continued to support the economic fabric with loans to customers reaching EUR35.7 billion, up 3.6 percent compared to the same period in 2022 or EUR1.2 billion in absolute value, performing more than 7 percentage points above the system and a constant focus on asset quality.

Asset quality remained at the highest level in the system, with the ratio of gross problem loans to gross loans at 1.94%, already at the top of the market, compared to 2.77% of the average of significant Italian banks and 2.27% average of European banks, with coverage levels among the highest in the system. The ratio of net impaired loans to net loans stands at 0.79%. The cost of credit is 15 basis points.

The bank shows n CET 1 ratio of 15.5 percent despite strong activity to support the economy and customer needs. The Supervisory CET 1 ratio, calculated on the Credemholding perimeter, stands at 14.2%, with more than 664 bps margin over the regulatory minimum level of 7.60% for 2023. ROTE stands at 19 percent and ROE stands at 16.3 percent.

Credem's stock closed Thursday down 0.4 percent at EUR8.50 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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