Ubi Banca runs on the stock exchange after the publication of the results achieved in the 9 months of 2017 which also include, starting from 1 April, the three banks acquired (Banca Marche, Banca Etruria and CariChieti) and include the impact of the badwill allocation, determined on a provisional basis totaling 995 million.
The net profit is equal to 167,3 million deriving from the 190,1 million recorded by UBI "stand alone" and the loss of 22,9 million recorded in the last two quarters by the former "good banks"
In the same period of 2016 the group had recorded a loss of 754 million. Taking into consideration all non-recurring items, including the impact of badwill relating to the acquisition of the three banks, the profit for the nine months of 2017 is €702,4 million. As regards the third quarter, profit settled at 6,4 million, compared to the positive result of 32,5 million in the same third quarter of 2016. However, the figure reached clearly beats the consensus of analysts (+23,6% ) who estimated a positive net result of 5 million.
Going back to the nine months, operating income amounted to 2,6 billion (+1,2% per annum on a like-for-like basis), with an interest margin of 1,15 billion (1,03 in stand-alone versus 1,13 in 2016) and net commissions of 1,15 billion (1,06 and 988 million). Operating costs amounted to 1,79 billion (1,52 for stand alone and 1,55 last year), for a cost/income ratio of 68,9%. As for capital solidity, the fully loaded Cet1 ratio is 11,54%.
Net adjustments to loans in the nine months amounted to 417,7 million, for an annualized cost of credit of 67 basis points, while coverage of non-performing loans amounted to 48,6% including write-offs (40,01% excluding the excerpts).
Net non-performing loans amounted to €8,4 billion, down by 9,1% from €9,3 billion at the end of 2016 and down slightly compared to June 2017. As at 30 September, the stock of gross non-performing loans amounted to €14 billion, down by 0,8% compared to June 2017 and by 2,4% compared to December 2016 and represents 14% of total gross loans (the incidence of net NPLs at 9%).
Direct deposits fell to 82,6 billion from 86,3 billion in December 2016 "due to the progressive expiry of the stocks of bonds placed with captive customers, not replaced also in the context of the bail-in legislation and the decrease in deposits bound on the 3 banks acquired".
UBI underlines that "all of these results confirm the feasibility of the 2020 Business Plan". The acquisition of the three "good banks" "overall is an example of extreme success also considering the times", underlines the CEO, Victor Massiah, who recalls "two weekends ago Banca Marche was definitively integrated. We took operational control of these banks at the beginning of May, the first migration was completed at the end of October: the most complex, the most important, that of the largest bank, at the end of this month of November the migration of Banca Etruria will be completed and at the beginning of next year Carichieti will definitively complete this cycle”.
“Also from the point of view of economic results – continues Massiah – we are facing an extremely positive situation, as the three banks are reaching the break-even point much faster than expected. Carichieti is practically already at break even, the two major banks will in my opinion in a practically certain way during 2018".
At Piazza Affari, the stock rose by 2,7% to 4,108 euros, achieving the best performance of the Ftse Mib.
Finally, it should be noted that today, Friday 10 November, the preliminary hearing of the proceeding with Ubi Banca at the center began in Bergamo, relating to the accusations of obstruction of the supervisory authorities and illicit influence on the decisions of the shareholders' meeting. This morning, Consob, the consumer association Adusbef, shareholder Giorgio Jannone and three members of his list for the board of directors, as well as three candidates for the board of directors from the Resti list, filed a civil action. The discussion was adjourned to next December 2018st and a timetable was set until March XNUMX, when the decision on the request for indictment formulated by the Bergamo prosecutor's office last June is awaited.
