All the details on the half-year report of the Cdp group on the accounts, with a critical note on the impact of Eni on the group's net result
How are the accounts of the Cdp group going? Here are numbers, comparisons, trends and scenarios.
In the first six months of 2020, the CDP group mobilized 14.6 billion "for initiatives to support the country" and "in response to Covid-19", more than the 12.8 billion mobilized in the first half of 2019.
THE NET RESULT
The net result of the group was negative for 0.7 billion against a profit of 2.2 billion in the first half of 2019: it mainly weighs – explicitly underlines the company led by the CEO, Fabrizio Palermo – the effect of the valuation at Eni's shareholders' equity (-2.3 billion).
NUMBERS AND COLLECTION
At the parent company level, Cdp Spa closes the half year "despite the effects of the Covid-19 pandemic" with a net profit of 1.3 billion, down from 1.5 billion in the same period of the previous year. In six months, postal deposits increased by 6.6 billion to 271 billion.
"Despite the effects of the Covid-19 pandemic – highlights CDP – the net profit of the parent company is equal to over 1.3 billion with an intermediation margin of 1.9 billion, substantially in line with the result of the first half 2019 ".
THE INCREASE IN MOBILIZED RESOURCES
Good postal collection. While the amount of 'mobilized' resources increased compared to the same period of 2019: the total of 14.6 billion is divided into 12.3 billion on the business front “for the growth, innovation and internationalization of the Italian entrepreneurial fabric, to increase its resilience and increase its competitiveness "and on the" infrastructure, PA and territory "front – in 2.2 billion invested" in favor of local authorities and for the realization of infrastructure works and urban redevelopment projects " .
THE NOTE OF CDP
The Cdp points out, "the system initiatives launched with the 2019-2021 industrial plan to promote the sustainable development of the country continued, to which were added the measures adopted following the spread of the Covid-19 pandemic, to which the Cdp group he responded with interventions to support the production system and local authorities, with a view to supporting the national economy ".
THE INTEGRAL PRESS RELEASE OF THE CDP GROUP:
€ 15 billion mobilized by the Group for initiatives to support the country in response to Covid-19
Postal deposits up to € 271 billion (+ € 6.6 billion compared to the end of 2019)
First half CDP net profit of € 1.3 billion, despite Covid-19 impact. At consolidated level, due to negative ENI performance (- € 2 billion), result equal to – € 0.7 billion
Rome, 3 August 2020 at 14:06 – The Board of Directors of Cassa Depositi e Prestiti SpA (CDP), chaired by Giovanni Gorno Tempini, today approved the consolidated half-yearly financial report of the CDP Group at 30 June 2020, presented by the Administrator Delegate Fabrizio Palermo.
The CDP Group in support of the Italian economy
In the first half of 2020, the CDP Group mobilized resources for € 14.6 billion, mainly divided as follows:
Companies – € 12.3 billion invested for the growth, innovation and internationalization of the Italian business fabric, to increase its resilience and increase its competitiveness;
Infrastructure, PA and Territory – € 2.2 billion invested in local authorities and for the construction of infrastructure works and urban redevelopment projects;
The system initiatives launched with the 2019-2021 Business Plan to promote the sustainable development of the country continued, to which were added the measures adopted following the spread of the Covid-19 pandemic, to which the CDP Group responded with interventions to support of the production system and local authorities, with a view to supporting the national economy.
New products launched to support liquidity needs arising in the context of the health emergency; in particular, a ceiling of € 3 bln has been set aside for direct financing in favor of medium-large companies and a provision of € 3 bln has been made available to SMEs, at reduced rates, for indirect financing through the banking channel. In addition, an agreement was signed with the EIB of € 1.5 billion to support over 6,000 Italian companies.
With reference to the offer of CDP products to SMEs, alongside the traditional financing methods, new alternative finance instruments (Basket Bond) focused on the South were introduced. The Revolving Fund for Enterprises (FRI) was also used for the first time at regional level, with significant investments expected in Southern Italy.
Lastly, the action of greater presence in the area continued, with the opening – in collaboration with ACRI – of the new regional branches "CDP Space".
Infrastructure, PA and Territory
The commitment to support the Public Administration has been confirmed, with a series of interventions aimed at freeing up resources to be invested in the area and a significant increase in the commitment in the infrastructure sector (+ 140% of resources used by CDP).
The main initiatives include:
the largest mortgage renegotiation operation in recent years, which has registered membership by over 3,000 local authorities. In total 80,000 mortgages have been renegotiated, for a total residual debt of over 20 billion. The operation released resources for around € 800 million;
the extension of the scope of the advisory activity to the Public Administration with 26 new projects activated during the half year in the field of post-earthquake reconstruction, school construction, healthcare construction and transport (to be carried out both in traditional contracts and in project finance);
the start of the training activity of the Italian School of Hospitality, in collaboration with TH Resorts.
International Development Cooperation
Activities in support of international cooperation continued. The initiatives include:
the approval of the European program "InclusiFI" which foresees to allocate € 60 million of guarantees in favor of CDP, to support the African continent;
the stipulation of new loan contracts from the Revolving Fund for Development Cooperation (FRCS), as part of the management activity carried out by CDP;
the management of the moratorium, under the FRCS, launched on the debt of the most fragile countries among those affected by the Covid-19 emergency, as part of the initiative promoted by the G20.
Investment activities continued in favor of businesses, both directly and through private equity and venture capital funds. The initiatives include:
the strengthening of the assets of the companies in the portfolio, such as Open Fiber and Ansaldo Energia, to support the investment plan of the companies, and Trevi, to encourage the relaunch of the Group;
support for private equity and private debt, through the Italian Investment Fund SGR, with the launch of the new "FoF Private Debt Italia" fund, the increase in commitment to the "FoF Private Equity Italia" fund and the establishment of the new "Italian Fund for Minorities for Growth";
support to venture capital, through CDP Venture Capital SGR, with the launch of the 2020-2022 Business Plan (endowment of target resources of € 1 billion) and two new funds: the "FoF VenturItaly", with resources of € 200 million , and the "Accelerators Fund", with resources for € 75 million
Economic and financial results
Despite the effects of the Covid-19 pandemic, the parent company's net profit is over € 1.3 billion (€ 1.5 billion in the first half of 2019) with a brokerage margin of € 1.9 billion, substantially in line with the result for the first half of 2019.
At 30 June 2020, the total assets amounted to € 412 billion, an increase compared to the end of 2019 (€ 386 billion), and mainly consists of cash and other treasury loans for € 184 billion, loans to customers and banks for € 104 billion, debt securities for € 78 billion and equity investments and funds for € 35 billion.
With reference to liabilities, total deposits at 30 June 2020 amounted to € 382 billion, an increase compared to 31 December 2019 (€ 356 billion). Postal deposits, in particular, exceed € 271 billion (€ 265 billion at the end of 2019) thanks to the performance of CDP's net deposits, also due to the launch of new products and the activation of new digital services, which contributed to a significant growth in sales on the online channel (+ 85% compared to the first half of 2019).
During the first six months of the year, CDP's initiatives continued in the area of sustainable collection, through 2 new Environmental, Social, Governance (ESG) issues, in particular the € 750 million Social Housing Bond and Covid- 19 € 1 billion Social Response Bond.
Shareholders' equity is € 24 billion (€ 25 billion at 31 December 2019).
With reference to the perimeter of the CDP2 Group, a pre-tax profit of € 0.8 billion was recorded (€ 1.1 billion in the same period of 2019). Including the residual perimeter, the Group recorded a negative consolidated net result for the period of € 0.7 billion (compared to a profit of € 2.2 billion for the first half of 2019). The change, equal to – € 2.9 billion, is mainly due to the effect of the valuation of ENI in equity (- € 2.3 billion compared to the same period last year) which resulted in a net loss of € 7.34 Bln. The loss for the period attributable to the Parent Company is equal to – € 1.4 billion.
At 30 June 2020, the total assets were over € 474 billion, compared to € 449 billion in December 2019. In particular, cash and cash equivalents amounted to € 182 billion (€ 171 at 31 December 2019), loans to customers and banks stood at € 113 billion (€ 106 billion at December 31, 2019), debt securities reached € 91 billion (€ 85 billion at December 31, 2019) and equity investments stood at over € 16 billion (€ 19 billion at December 31, 2019).
Consolidated shareholders 'equity came to € 32 billion, of which € 19 billion related to the Group's shareholders' equity.
Reclassified balance sheet and income statement data of CDP SpA at 30 June 2020
The CDP data, presented below, are represented by the individual balance sheet and income statement data, reclassified according to management criteria, as illustrated in the reconciliation statements. The comparative data refer to the reclassified data relating to the balance sheet at 31 December 2019 and to the economic situation at 30 June 2019.
Reclassified balance sheet and income statement figures of the CDP Group at 30 June 2020 The CDP Group figures presented below are represented by the consolidated balance sheet and income statement figures, reclassified according to management criteria, as illustrated in the reconciliation statements. The comparative data refer to the reclassified consolidated data relating to 31 December 2019 for the balance sheet and 30 June 2019 for the economic situation.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/cdp-conti-risorse-e-attivita/ on Mon, 03 Aug 2020 05:20:17 +0000.