The Cherry Bank shareholders' meeting approved the financial statements as at 31 December 2021. These are the first since the establishment of the institution following the merger by incorporation of Cherry 106 into Banco delle Tre Venezie on 6 October last, which resulted in the assignment to Cherry 106 shareholders of 51% of the Bank's share capital. Therefore, the institute underlines that reading the numbers "is difficult to interpret" as well as "being scarcely comparable with the previous year 2020".
Cherry Bank closes 2021 with total assets exceeding one billion euro, of which 406 million deriving from financial assets measured at fair value, which include own securities - mainly referring to government bonds - and 504 million from loans to customers . As regards liabilities, amounts due to banks at the end of 2021 amounted to 248 million euros, referring entirely to the TLTRO tranches signed with the ECB, while funding from customers amounted to 695 million euros, up by 26% compared to 551 million euro at the end of the previous year despite the rate reduction policy implemented during the year. A figure destined to grow, according to a note from the Bank, also thanks to the launch of the new one in February zero-fee online checking account, which through the deposit functionality allows you to obtain returns of up to 2% per year.
Il net assetsfinally, it stands at 44,2 million euros, up 9% on the 40,6 million euros of the previous year, with CET1 at 13,10% compared to 13,17% at the end of 2020 and the 12,23% before the merger.
Balance sheet items are also influenced by the recognition in the item “Other operating income/expenses” of the gain on bargain purchase for 18,7 million euro, relating to the business combination transaction between Cherry 106 and Banco delle Tre Venezie. With reference to this extraordinary transaction, the non-recurring acquisition and integration costs of the two companies, amounting to 2,2 million euros, are recorded under other administrative expenses. The profit at the end of 2021 amounted to 11,7 million euros, however, net of the accounting entries relating to the business combination with Cherry 106, the result for the year recorded a loss of approximately 1,2 million euros.
“The merger gave birth to a new banking entity, stronger and with greater skills to be able to stay on the market – he says John Bossi, CEO of Cherry Bank -. The three pillars of Cherry Bank's action will be liquidity control, capital absorbed control, overall profitability control, also through the use of the most advanced technology as an enabler and accelerator of sustainable profits in the areas of intervention".
