Where's Banca archive 2019 accounts with a net profit of 251 million, down 41% year over year. However, net of the main non-recurring items, profit increased 16,7% to 353 million.
If you narrow your gaze to just fourth quarter, the net result stood at 60 million: much less than the 215 million recorded in the same period of 2018, but more than double the analysts' forecasts, which on average did not go beyond 24 million euros.
In 2019, the Bank recorded a positive trend in operating income (+3,4%, to 3.637,9 million), while costs decreased (-3,3%, to 2.368,5 million). These results have allowedincrease the gross result of operations by 18,5%., to 1.269,4 million, despite the unfavorable context.
For the dividend, the Board of Directors will propose a coupon of 0,13 euro per share, against 0,12 last year (+8,3%). The coupon guarantees a yield of 4,4% on the closing price of the UBI Banca share on 7th February 2020. The dividend will be detached on Monday 18th May 2020 and paid on 20th May.
On the front patrimonial, the Cet1 rose to 12,3%, from 11,34% at the end of 2018. The stock of non-performing loans gross totals fell by 17,7% compared to September, reaching 6,8 billion. The incidence on total loans thus decreased from 9,34 to 7,8%, and to approximately 6,9% pro-forma "if one takes into account the sale, currently under study, of approximately 800 million of exposures to small and medium-sized enterprises classified as non-performing", specifies the bank's note.
“We have made a huge effort to reduce the Npe ratio – explained the CEO of Ubi, Victor Massiah – We are counting on finalizing the further sale within the first half of this year”.
With regard to forecasts for 2020, "net profit is estimated to be higher than in 2019, with consequent growth in the dividend", continues the note. In the current year, adds the institute, "the recomposition of core revenues will continue in favor of an increase in net commissions compared to the interest margin". In addition, gross non-performing loans “are expected to decrease, driven from 2020 onwards by the internal work out. Thanks to the strong reduction in the stock of non-performing loans achieved mainly in 2019 and the limited inflows - concludes UBI - the cost of credit is expected to significantly decrease compared to 2019".
In the early afternoon, the stock on the stock exchange of the Bank gains 1,2%, to 3,011 euros.
