First half-year results confirm Cassa Centrale Group's growth trajectory

First half-year results confirm Cassa Centrale Group's growth trajectory

  • Loans to customers remained stable at the end of 2022, while total funding increased. New savings for €3 billion were entrusted to the Group in the first half of the year
  • Credit quality improved with the net NPE ratio dropping to 0.9%.
  • Capital strength further increased: phased-in CET1 Ratio at 23.8%

Trento, 31.08.2023 – “The results for the first half of 2023 confirm the Cooperative Banking Group's ability to generate value", stated the Chairman Giorgio Fracalossi. "Through our banks, we work every day alongside our shareholders and our customers to support the economy of our territory and create a path of sustainable growth together".

The consolidated results of the Group in the first half of 2023, approved by the Board of Directors of Cassa Centrale Banca, show a general improvement of its financial and operational indicators.

From an operational point of view, the half-year was characterised by a sustained increase in total funding, which at 30 June 2023 reached €105 billion. The increase of around €3 billion, compared to the end of 2022 figure, is attributable to indirect funding (€41 billion) which recorded an increase of almost €5 billion, against a decrease in direct funding (€64 billion) of €1.7 billion. In the context of indirect funding, assets under administration recorded the highest growth in relation to customers' investments in government securities; assets under management also show interesting growth rates in all areas: Asset Management, Funds and BancAssurance.

Furthermore, in the first half of the year, the demand for new credit substantially matched the repayment of outstanding exposures by customers with available liquidity, resulting in a loan portfolio value of €50 billion, stable on the levels of year-end 2022. Credit quality confirms an improvement trend with the gross NPL ratio[1] down to 4.65% (4.8% at the end of December 2022) with an overall coverage of 82%. Consequently, the net NPL ratio reaches one of the lowest values in the national banking system at 0.9%.

At the income statement level, the contextual situation and the trends of volumes translated into growth in the net interest and other banking income (+8% compared to the first half of 2022, at €1,458 million), and in the increase in operating costs (+9%, to €846 million), which include the growing expenses for the important investments in IT connected with the implementation of the Strategic Plan. The consolidated net income of the Group stands at €587 million (+32% compared to the first half of 2022).

The Group's total assets fall to €91 billion (€93 billion at the end of 2022), reflecting the ongoing deleveraging policies of the Strategic Plan.

The Group's capital strength was further increased with phased-in CET1 and Total Capital Ratio both at 23.8%, as a combined effect of increased profitability and lower RWA (€32.2 billion as at 30 June 2023).

The Chief Executive Officer Sandro Bolognesi expressed his satisfaction by saying, "Today's results stem from the hard work carried out over the years by our people. The Group is becoming more and more conscious of its solid equity levels, resilient business model and high asset quality. Such features will be key to implementing the guidelines set out in our Strategic Plan and to achieving new development targets, with positive spill-over effects on our country's economy".

1 Gross and net NPL ratio calculated according to the EBA methodology