Poste Italiane's profitability continues to grow. The group led by Matteo Del Fante closed the first nine months of 2017 with revenues up 2% to 26,3 billion euro compared to 25,7 billion in the same period of the previous year, while managed assets/ assets under administration exceeded 500 billion euro, growing by 2,5% and reaching 505 billion euro.
Net income fell by 10,3% to 724 million while the operating result showed a slight decrease to 1,176 billion euros. It should be noted that in the first nine months of 2016, Poste benefited from a capital gain due to the non-recurring effect of the sale of the interest in Visa Europe. Not only that, in January-September 2017, the company made some provisions in the balance sheet and, after the sale to Invitalia, the contribution of Banca del Mezzogiorno-Medio Credito Centrale ceased. Net of these extraordinary items, the operating profit would have been equal to 1,237 billion euros, showing a growth of 18%.
The 10,3% drop in Poste Italiane's net profit in the nine months, explains the note from Poste, "is affected by the higher financial expenses relating to the loss of 82 million euros before the tax effect, sustained on the value of Contingent convertible notes subscribed in December 2014 by Poste Italiane and issued by Midco SpA, the company that owns 51% of Alitalia SAI SpA”.
Speaking of the accounts, it should also be highlighted the performance implemented in the first 9 months of the year by Poste Vita which achieved premium income of 16,3 billion, up by 6,4% compared to the corresponding period of 2016. the increase, explains a note, occurred despite the drop in new business recorded by the insurance market in Italy, equal to 8%, in the first eight months of 2017 (according to data from Ania).
In the meantime, the work on the strategic guidelines and the in-depth analysis of the business model continue which, based on what has been announced, will be presented to the market at the beginning of 2018, Poste Italiane explains in a note. Furthermore, in the coming months, the Group will be engaged in defining a new Business Plan aimed at allowing further and balanced growth of the business, as well as continuing to follow the evolutionary path in the country's innovation process with particular attention to services for the Public Administration .
In the Logistics-Postal sector, the sector's restructuring process will continue through the use of new automation technologies to support production processes, also with a view to further improving the competitive positioning on the Express Courier and Parcel market, states a note.
The active management strategy of the financial instrument portfolio will continue, aimed at stabilizing the overall return determined by interest income and realized capital gains. As far as Financial Services are concerned, during the last quarter of 2017 the commitment will continue in the activities of managing the collection of postal savings and activities will continue for the definition of the conditions of the Convention which regulates the methods of supply of intermediation services in favor of Cassa Depositi e Prestiti SpA.
The next few months, reads the note issued by the Group, will also be focused on positioning in the transaction and digital banking sector, with particular attention to the development of collections and payments, with the aim of creating a single offer pole towards retail, business and public administration customers, ensuring the highest level of development and integration, as well as strengthening a service model capable of enhancing Poste Italiane's physical distribution channels, while guaranteeing the extension of digital .
In the Asset Management segment, in addition to consolidating its leadership position in the Life market, the Group will be oriented towards continuing the path of increasing penetration of Fund products and Class III policies, guaranteeing transparency and maximum adherence to customer needs. Growth also continued in the protection and welfare segment, also through the development and strengthening of an integrated offer and service model (Society, Health and Assistance).
"All of the above objectives will be pursued by strengthening the Group's cash generation in order to maximize the total return of its shareholders", Poste Italiane points out.
At Piazza Affari, the stock dropped 0,5% to 6,19 euros.
