Where's Banca file the third quarter with a Net income of 32,5 million, down 13,5% year on year. However, the institute specifies that last year's result included a contribution to the deposit guarantee scheme that was approximately 10 million lower and that therefore, overall, the quarterly report should be considered "improving year on year, in line with the expectations of the business plan ”.
The quarterly profit reduces to 754,5 million la perdita of the nine months, after the loss of 787 million recorded in the half-year after having paid the expenses of the plan (equal to 840 million). In the quarter operating income amounted to 745,6 million (-1,7%), with interest margin at 367,6 million (-7,8%) and net commissions at 321,4 million (+7%) . Operating expenses grew by 3,7% to 515 million, for a cost/income ratio that rose to 69,1%.
“We have a good return to profit in the third quarter; in particular, credit quality clearly improves – he commented Victor Massiah, CEO of Ubi Banca - and because we have an overall portfolio that is much less risky and which generates transitions from "performing" to problem loans which are a third of what they were at the peak of the crisis".
Improve the financial solidity, with a fully loaded common equity tier 1 ratio of 11,28% from 11,02% in June, and Ubi recalls that the expected repurchase of minorities and the effect of the tax deductibility of the higher loan loss provisions will progressively lead to a another 70 basis points on Cet1.
The stock of non-performing loans total gross decreases to 13.231 million (-1,5% on December 2015), contributing, together with higher adjustments, to the reduction of the total stock of net non-performing loans to 8.333 million (-14% compared to December 2015).
The formation of new non-performing loans also decreased: the flows from performing to non-performing loans decreased by 51% compared to the corresponding period of the previous year. Compared to the historical peak of the first nine months of 2013, flows from performing to impaired are reduced by approximately 70%.
In the wake of these numbers, about an hour after opening the stock on the Ubi Stock Exchange gains more than 2%, to 2,362 euros per share.
