Credem: 2022 accounts and 2023 forecasts
What emerges from the 2022 financial statements of the Credem banking group. The article by Emanuela Rossi
Net profit and dividend growing in 2022 for Credem, led a few days ago by the new general manager Angelo Campani. For the institute , born in 1910 as Banca Agricola Commerciale of Reggio Emilia, the coupons detached in the last five years exceed 340 million euros.
PROFIT, RESULT AND COSTS
The accounts approved by the board of directors show a consolidated net profit of 317 million euros (+23%) after having spent more than 60 million euros in contributions to funds for the management of banks in difficulty.
A positive sign also for the intermediation margin, up by 10.2% compared to 2021 to around 1.5 billion euro thanks to the positive contribution of the financial margin (+33.5%) and the performance of commissions on banking products ( credit and debit cards, current accounts, collections and payments, loans) as well as for the operating result at 572.6 million compared to 460.9 million in 2021 (+24.2%). The return on capital is 9.8%, against a Rote of 11.5%.
In terms of operating costs, there was an increase on an annual basis of 2.5% from 802 million compared to 782.6 million in 2021. In particular, administrative expenses amounted to 238.6 million (+2.9% y/y ) and personnel expenses came to 563.4 million (+2.3% y/y).
COLLECTION, LOANS AND CREDIT QUALITY
As regards loans to customers, in 2022 they rise to 34.5 billion euros, +4% compared to 2021 (almost four times compared to the system, up by 1.1%). New client assets deposited with the bank exceed 4 billion euros (net production) reaching a total of 87.1 billion euros (-3.6% y/y), of which assets under management at 31 billion euros (-12.3% y/y) mostly affected by market trends. Direct deposits from customers grew to €36.3 billion (+5.1% y/y) while insurance products fell to €8.3 billion (-4.7% y/y) with premiums linked to life and non-life protection guarantees up 13.2% on the previous year.
Credit quality does not worry: the incidence of problem loans (Gross NPL Ratio) is equal to 2.1% of loans, compared to the average 3.15% of Italian banks and the average 2.29% of European banks. The ratio between net non-performing loans (net NPLs) and net loans stops at 0.94%.
DIVIDENDS AND CAPITAL REQUIREMENTS
For 2022 Credem intends to distribute a dividend of 0.33 euro per share, up 10% compared to 2021 for a total amount of 112.3 million euro, or – as mentioned – over 340 million euro in the last five years. Meanwhile, the Supervisory Common Equity Tier 1 Ratio is 13.72% compared to the minimum 7.56% assigned by the European Central Bank. For 2023, the total capital requirement amounts to 7.56% for the CET 1 ratio, while the requirements for the Tier 1 ratio and for the Tier Total are respectively set at 9.25% and 11.5%.
SOME NUMBERS ABOUT THE GROUP
In 2022, Credem, which is now present in 19 regions, acquired around 130,000 new customers and hired 281 people, a figure that brings the number of new hires to almost 1,500 in the last five years. Over 85% of employees have an active smart working contract and last year 39,000 days of continuous training were provided, including remotely (on average 5.9 days per capita). According to Campani, who has replaced Nazzareno Gregori since early February, who has retired, the results achieved "reaffirm Credem's ability to create value and react promptly to the economic, social and geopolitical changes we experienced in 2022".
The promise is to continue "to work in the wake of our history made up of successes and objectives achieved, with an eye to the future always with the aim of supporting the sustainable growth of families and businesses, promoting the economic and social development of the territories and of the community".
FORECAST FOR 2023
For 2023, Credito Emiliano, reads the note accompanying the accounts, "confirms the guidelines of its management: commercial development above the market average, maintenance of credit quality, the search for the right balance between operational efficiency and continuation of planning, in particular on omnichannel and digital, to be competitive in the various business areas, the strengthening of wealth management and the completion of the project to strengthen the private banking hub (entirely concentrated within the Group company already dedicated to for this purpose and renamed Credem Euromobiliare Private Banking), the process of integrating a sustainable approach (ESG – Environmental, Social, Governance) within the processes, risks and products, without prejudice to the solidity of the risk profile and assets".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/credem-bilancio-2022-previsioni-2023/ on Tue, 07 Feb 2023 09:01:23 +0000.