(Alliance News) - Credito Emiliano Spa reported Wednesday that it nearly doubled net income in the first nine months, to EUR439 million from EUR226.2 million in the same period of 2022.

The result comes after expensing EUR58 million in contributions to funds for the management of troubled banks and was influenced by the positive performance of the financial margin and the cost of risk, which remained at low levels.

In fact, at the end of September, net interest and other banking income stood at EUR1.42 billion compared to EUR1.04 billion a year earlier, up 36 percent. Within the aggregate, the financial margin stood at EUR788.4 million compared to EUR438.7 million at the end of September 2022. Margin from services stands at EUR630.5 million compared to EUR602.5 million in the same period last year.

Pre-tax profit stood at EUR647 million compared to EUR329.1 million at the end of the first nine months of 2022 while income taxes amounted to EUR208 million from EUR102.9 million at the end of September 2022.

The group continued to support the economic fabric with loans to customers reaching EUR34.4 billion, up 3.6 percent compared to the same period in 2022 -- up EUR1.2 billion in absolute value -- performing more than 7 percentage points above the system and down 4.1 percent over the same period and a continued focus on asset quality.

The ratio of net impaired loans to net loans stands at 0.94%. The annualized cost of credit is 4 basis points.

The group's soundness is always high, protecting all stakeholders, with the banking group's CET 1 ratio of 16.2 percent despite strong activity to support the economy and customer needs. The regulatory CET 1 ratio, calculated on the Credemholding perimeter, stands at 14.8%, with 720 bps margin compared to the regulatory minimum level - including the additional SREP requirement assigned by the European Central Bank - of 7.56% for 2023. Annualized ROTE is 20%, annualized ROE stands at 17.2%.

Credem's stock gives up 1.9% to EUR7.74 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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