(Alliance News) - Generalfinance Spa reported Wednesday that net income in the first half of the year rose 35 percent year-on-year to EUR6.7 million from EUR4.9 million in the same period last year.

Net interest income was almost unchanged at EUR3.8 million while net commissions rose 15 percent to EUR12.5 million from EUR10.8 million and net interest and other banking income increased 12 percent to EUR16.3 million from EUR14.6 million.

Operating expenses fell 9 percent to EUR5.3 million from EUR7.0 million.

Earnings from assets before taxes rose 30 percent to EUR9.7 million from EUR7.4 million.

Loans and advances to customers increased 6 percent to EUR408.7 million from EUR385.4 million at the end of 2022, financial liabilities at amortized cost rose 5 percent to EUR387.7 million from EUR368.4 million, shareholders' equity grew 2 percent to EUR58.1 million from EUR56.8 million, and total assets were EUR470.0 million from EUR443.8 million.

Within the loan aggregate, total gross impaired loans amounted to EUR1.0 million, with a gross NPE ratio of about 0.25% and a net NPE ratio of 0.11%. Coverage of impaired loans stands at 54%.

Cost/income ratio falls to 39% from 48% as of June 30, 2022, ROE rises to 26% from 22%, net interest income ratio rises to 24% from 26%, and net fee and commission income ratio rises to 76% from 74%.

Cash and cash equivalents-represented by loans to banks-are about EUR48 million, "reflecting the prudent liquidity management profile," as the company explains.

The CET 1 ratio is 14.44 percent, the Tier 1 ratio is 14.44 percent, and the Total Capital ratio is 16.94 percent, well above regulatory minimums.

"In an overall framework still marked by critical issues for the real economy, the commercial activity developed by Generalfinance in the first half of the year - turnover performance, revenues and profitability - shows a performance in line with what was defined in the budget in line with the current business plan, with reference to the current year. These elements make it possible to forecast business performance and related net profitability for the entire year at levels in line with the budget and business plan," the company explained.

Generalfinance's stock closed Wednesday unchanged at EUR8.10 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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