Banca Popolare di Sondrio closed the first half of 2024, recording a Net income record of 263,6 million euros, with a increase of 27,3% compared to the same period of the previous year. This result represents the best semester in the history of the institute.
I income deriving from banking activity characteristic have reached 750,7 million euros, +20,7% compared to 30 June 2023. This figure reflects a notable strengthening core operations of the bank, with a interest margin which stood at 538,1 million euros, up 25,9% compared to the previous year. Even the net commissions showed a positive performance, increasing by 9,3%. The contribution of the companies was also positive financial activities which amounts to 69,5 million euros, +15,1%.
Operating costs are growing
I operating costs they increased by 14,1%, reaching 317,8 million euros. Despite the increase in expenses, the bank managed to maintain a good level of operational efficiency. The cost-income ratio recorded an improvement, going from 40,6% to 39,1%.
The incidence of gross impaired loans, summarized by the gross NPL ratio indicator, decreased to 3,8% compared to 4,2% in June 2023, remaining in line with the 3,7% at the end of the year. The cost of risk stood at 60 basis points, up compared to 47 basis points in the comparison period, but down compared to 65 basis points at the end of the year.
Asset solidity
The bank's fully phased ratios, net of a dividend accrued in the period of 145 million euros (with a payout of 55%), show a CET1 ratio of 15,8% and a Total Capital ratio of 18,6%.
La direct deposits from customers it amounted to 42.783 million euros, +0,9% compared to the end of 2023. Loans to customers reached 34.590 million euros, remaining stable compared to the levels at the end of last year (+)0,3%. Disbursements in the period showed a good increase, reaching approximately 2,7 billion euros, compared to 2,5 billion in the comparison period (+6,3%).
Il consolidated equity, including profit for the period, amounted to 30 billion euros at 2024 June 3,824, an increase of 14 million on the value at the end of 2023 (+0,4%).
The costs for the stabilization of the banking system were reduced to 21,3 million euros, compared to 40,9 million euros in the comparison period. The reduction is mainly due to the absence of the ordinary contribution to the Single Resolution Fund.
Forecast for the future
Popolare di Sondrio plans to continue achieve positive results throughout the year 2024, thanks to its solid capital base and operational efficiency. Income from core banking activities increased by 20,7%, reaching 750,7 million euros, with an interest margin growing by 25,9%, reaching 538,1 million euros compared to 30 June 2023 .
“The results achieved in the second quarter confirm the more than positive growth trend observed since the beginning of the year, allowing us to present a half-yearly projected upwards again, with net profit standing at 263,6 million euros, driven by the development of the core banking activity increasing by over 20% year on year – declared Mario Alberto Pedranzini, Managing Director e General manager – The ability of the business to adapt to the evolutionary aspects of the economic system is notable, both in the territories of historical roots and in those in which we are expanding, in a logic of growth and sustainability of results in the medium-long term".
“We are confident of be able to continue on this virtuous path of growth of performance also in the second part of 2024 - he added - The results are the result of a solid, balanced and appropriately diversified business model which aims to satisfy the needs and expectations of customers, fully remunerating the risk capital that Members and Investors they wanted to hand us over. We will do this, as always, by focusing on the development and nurturing of long-term relationships, on investments aimed at ensuring an increasingly streamlined, flexible and resilient operating machine".
