Carige spa, group leader Banca Carige, closed the second quarter of the year with a net loss of 113,8 million. The institute communicates it in a note, in which it explains that the result discounts, in addition to the loss of 66 million deriving from the Gacs sale, the charges connected to the structuring of the operation (3,6 million), the devaluation of the book value of the Atlante Fund (7,2 million) and provisions to the Provision for risks and charges attributable to the guarantees granted under the contract for the sale of the insurance companies (14,5 million), net of which the net result is -48,1, 154,9 million. The half-year net loss stands at XNUMX million.
In the period Carige also finalized a loan securitization transaction bad loans by selling a portfolio of 938,3 million, which is fully part of the new management strategy for Non Performing Exposures (Npe). As indicated, the sale resulted in a loss of 66 million. The non-performing loan portfolio fell to €7,2 billion gross (€6,3 billion net of the portfolio transferred), down compared to the over €7,3 billion as at 31 December 2016 and in the first quarter of 2017; the change is attributable to a general improvement in credit quality with the gradual reduction of non-performing entries and the contraction of Unlikely to Pay (UTP) exposures.
Il coverage on total Npe it rises to 48,9% (50,2% including write-offs). Net of the GACS sale, the non-performing portfolio amounted to less than 3,0 billion gross (1,0 billion net), with coverage at 65,7%, which rises to 67,7% including write-offs; unlikely to pay amounted to 3,2 billion gross (2,3 billion net) with coverage increasing to 28,2% (28,4% including write-offs), compared to 27,6% in December 2016.
THEcapital strength indicator Cet1 Ratio phased-in is equal to 10,3% and includes the loss deriving from the Gacs sale, the positive effect of which on risk-weighted assets, equal to approximately 10 bps, will manifest itself in the next quarter. The Cet1 Ratio is above the regulatory limits and the minimum threshold of 9% that the ECB requested in the SREP for 2017, but below the recommended threshold (which also includes the Pillar 2 Capital Guidance) equal to 11,25%. The capital strengthening actions envisaged by the new strategic guidelines, the note explains, will allow the restoration of the recommended level.
“With the help of a management team that has been enriched with new professionals, we have launched a strategic review of the business portfolio, aimed at identifying capital strengthening actions and outlining new guidelines in the non-performing credit strategy with the deconsolidation of non-performing loans ", commented Paolo Fiorentino, CEO of Banca Carige. "The new strategic setting will be characterized by speed of execution and simultaneous reduction of implementation risks, aiming to achieve concrete results by the end of the year - he added - We have great confidence in the Bank's prospects".
La direct deposits from customers (individuals and businesses) at 30 June 2017 amounted to 15,4 billion (-0,4 billion compared to 31 December 2016), while indirect deposits amounted to 21,1 billion (-0,4 billion compared to 31 December 2016) and is substantially stable compared to the same period last year (-0,4%), characterized by a good performance of assets under management which rises to 11,2 billion (+4,8% and +3,1% in the 12 and 6 months), driven by mutual funds and insurance products.
Continue the action of deleveraging on the lending front, with the aggregate reaching 21,2 billion, down 2,2% compared to 31 December 2016. At the same time, the disbursement of mortgage loans to individuals continued, amounting to 245 million (+15% compared to 213 million in the first half of 2016), and that to businesses, which amounted to 355,9 million (-18% compared to 434,1 million in the first half of 2016).
Confirming the policy of cost containment already in place for several periods, operating costs for the six-month period, net of non-recurring items, amounted to 262,7 million, down by 5,7% compared to the same period of the previous year. In particular, depreciation on tangible and intangible fixed assets decreased (-13,3% to 19,9 million), and personnel expenses are progressively decreasing both compared to the equivalent normalized figure referring to the first half of 2016 (-8,3 % to 151,8 million), and compared to the first quarter of 2017 (-5,8% to 73,6 million).
58 branches will be closed in continuity with the objective of reducing management costs: -5,75 on an annual basis. The deleveraging policy in a context of system rates at historic lows affected the interest margin in the second quarter (68,1 million), down by 6,2% compared to the first quarter; in relation to the brokerage dynamics, commissions from managed savings (35,3 million) grew by 2,4% on an annual basis, while the overall half-year figure for net commissions (123,2 million) showed a decrease of 1,9, 1,8% annually. The contribution of Finance is consistent with a securities portfolio that maintains a low risk profile both in terms of size (3,2 billion net of the investment in the Bank of Italy) and duration (XNUMX years).
Meanwhile, the Board of Carige will propose to the assembly (which will presumably be convened in the second half of September) of raise the capital increase from 500 to 560 million euros, of which 60 million intended for holders of subordinated securities. The board has been given the power - to be exercised no later than 31 December 2017 - "to increase the share capital against payment, possibly inseparably, in one or more tranches, including in individual tranches, by issuing new shares ordinary bonds for a total maximum amount of 560 million, of which a tranche for a maximum amount of 60 million possibly to be allocated to one or more categories of holders of subordinated securities who have adhered to a possible liability management operation".
The board also authorised, "a liability management transaction aimed at further strengthening the bank's capital position which may involve the exchange of some subordinated financial instruments issued on the institutional market against a consideration in newly issued senior financial instruments by the bank itself.
