Cassa Centrale Group: Results for the year 2022
Consolidated figures of the Cassa Centrale Group as at 31 December 2022 to be approved by the Board of Directors at the end of March.
The Group’s net income grew to EUR 562 million (+70%) and the reduction in the gross NPL ratio continued, with average coverage of non-performing loans at 81.8%; the net NPL ratio fell to 0.9%.
The Group confirms its leading position in the national banking system with a CET1 ratio of 22.8%.
Trento, 15.03.2023 - Cassa Centrale Banca announces the consolidated data as at 31 December 2022, which will be approved by the Board of Directors at the end of March.
The budget estimates were exceeded and the ongoing process of capital growth and improvement in the quality of assets of the Cassa Centrale Group and of the 68 Cooperative Credit Banks, Rural Banks and Raiffeisenkassen was confirmed.
“The results for 2022 - comments Giorgio Fracalossi, Chairman of Cassa Centrale Banca - demonstrate that our model works. We have created a solid and profitable national Cooperative Banking Group, without losing sight of the values and founding principles of mutual cooperation. We have maintained, and will continue to safeguard, the local vocation of our banks, which is based on the attention to people and communities. Confirming our status as company of national importance, able to compete on the market is a success.”
The consolidated income statement recorded an increase in the Group’s net income to EUR 562 million (+70%), notwithstanding the Group’s continuous effort to further increase the coverage level on non-performing exposures and improve asset quality.
Indeed, the reduction in the Group's gross NPL ratio continues, from 5.5% in 2021 to 4.8%, with an average coverage of non-performing loans at 81.8% (73.6% at the end of 2021) and a net NPL ratio that fell to 0.9% (from 1.5% in 2021).
The interest margin was positively affected by the increase in interest rates, reaching EUR 1.8 billion at the end of 2022 (+33%). Growth was recorded both in the securities portfolio, with a contribution of EUR 845 million (driven by inflation-linked securities), and on loans to customers. The interest margin on the latter component rose by 16.9% over 2021, reaching EUR 1.1 billion. This result was also achieved thanks to the constant growth trend of the portfolio, which reached EUR 50.6 billion in gross loans to customers at the end of 2022, with an increase of EUR 1.8 billion (+3.6%) year-on-year.
Net commissions amounted to EUR 755 million (+5.3%), a higher value than the budget targets, even though 2022 was still strongly impacted by adverse market dynamics due to the uncertainty of the macroeconomic scenario.
The positive trend in funding data also continues. In fact, although influenced by negative market dynamics, the indirect component recorded growth of 2.2% over the prior year, standing at EUR 36 billion. Direct funding remains at solid levels, exceeding EUR 67 billion (+3.2% on 2021).
“The results achieved in our autonomous development process - concludes Chief Executive Officer and General Manager of Cassa Centrale Banca, Sandro Bolognesi - confirm that the model of the Cooperative Banking Group, based on 68 affiliated banks and subsidiaries, is rewarded by the market. Net income exceeding EUR 560 million, EUR 7.2 billion in assets and a CET1 ratio of 22.8% enhance our resilience and capital soundness and are the result of increasing synergies with the Affiliated Banks, which occupy a central role in our model. Further reduction of the Group's NPL ratio and the simultaneous increase in the average coverage of non-performing loans confirm our top position in Italy. These numbers are a stimulus to continue to guarantee quality services to our shareholders and customers, and they encourage the development of the territories in which we operate.”
The Parent Company’s performance was also notable, with a net income of nearly EUR 44.7 million.