The economy travels in slow motion, the euro runs on a razor's edge, the banks are floating, yet something is moving against the trend. There are financial statements that speak of growth and return on invested capital precisely in that credit sector that always keeps markets and investors in suspense: for example Credem, the historic group from Reggio Emilia headed by the Maramotti family and which intends to grow even in 2013 “for internal lines”.
The financial statements presented by the Board of Credem (Credito Emiliano) in recent days, which the shareholders' meeting will approve on 30 April, highlights a leap in net profit of 25,5% compared to 2011, for a total of 121,2 million euros, and a proposed dividend of 0,12 euros per share. The secret, according to the people of Reggio, lies in having defined a work of rationalization of the group in time, ie between 2009 and 2011 “when – they explain – we decided to focus on the identity of a domestic commercial bank. This is why we exited the investment banking business, with the restructuring and subsequent incorporation of Abaxbank into Credem, and then, in 2011, we completed the sale of Banca Euromobiliare Suisse. Furthermore, to optimize the distribution network, we have launched a reorganization that involved branches, business centers and the financial advisory network".
According to Credem's accounts, the particularly positive result of 2012 is not the result of extraordinary income and disposals, on the contrary: "The composition of the net profit includes positive and negative non-recurring components which penalized the result overall". In short, what works is the normal activity of the bank.
The growth process did not end here and will continue in the coming months: “In the short term, we do not foresee increases in the number of branches, while growth along internal lines will continue. We will continue to invest in multi-channel and above all in strengthening direct channels, such as internet banking and phone banking; on agent networks, such as the new network of agents specialized in salary-backed loans, on Creacasa, on personnel in the area, also through the creation of specific development networks to support the branches".
In the light of these decisions, almost all items in the 2012 financial statements are positive: direct deposits from customers and managed deposits show +9,6%; active internet banking contracts recorded +11,7%; loans +1,2%, while the non-performing loans/lending ratio remained at 1,3%, below the sector average. Capital solidity confirmed with a core Tier 1 of 9,4% and a total capital ratio of 13,6% without recourse to capital increases but using exclusively the constant strengthening deriving from ordinary business. The workforce expands and there are 85 more employees.
"We have worked hard to keep the structure flexible and reactive - says the general manager, Aldo Bizzocchi - developing the distribution network and investing in personnel training to continue to grow in a healthy and balanced way, in terms of market shares and customers, even in a complex situation like the current one. We have also simplified the product range by proposing new, simpler ones, offering services to facilitate our customers' relationship with the bank. In 2013 we will focus above all on continuing to provide constant support to households and businesses with the aim of continuing our path of organic growth, while maintaining the usual balance sheet solidity and profitability”. The consolidated Roe improved and stood at 6,9% (5,7% in 2011).
Worried about Basel 3? “Not as a Group. On a general level, however, we think that particular attention is needed to the possible economic impacts, since the latest data from the EBA (European Banking Authority) still highlight important financial gaps at a global and European level which could have negative effects on the real economy”.
