Q2 net income stands at EUR 121 million

Confirming positive momentum in core operating activity

Shareholders' Meeting called for 15 September to elect new Chairman

Results as at June 30, 2015

  • Q2 net income EUR 121 million, second consecutive positive quarter
  • First half 2015 income stands at EUR 193.6 million, which is a significant turnaround to the first half of 2014 (EUR - 353 million)
  • Pre Provision Profit in the first half reached EUR 1,116 million almost double that of the same period in 2014 (+84% Y/Y)
  • Excellent liquidity position post reimbursement of LTRO. ECB funding now only related to TLTRO (EUR 7.8 billion), Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NFSR) both above 100%
  • Excellent liquidity position post reimbursement of LTRO. ECB funding now only related to TLTRO (EUR 7.8 billion), Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NFSR) both above 100%

Capital Plan update

  • EUR 3 billion capital increase successfully completed
  • Remaining EUR 1,071 million nominal of NFI (state aid) fully reimbursed well ahead of 2017 deadline
  • Common Equity Tier 1 ratio transitional stands at 11.3% and Common Equity Tier 1 ratio fully loaded has reached 10.7%1, well above the 10.2% required SREP level
  • Active NPLs disposal effort continues: sale of EUR 1.3 billion of gross NPLs completed in June, with one more billion euro to be sold during the year

Ordinary Shareholders' Meeting

  • An Ordinary Shareholders' Meeting has been called for September 15, 2015 to elect a new chairman integrate the current Board, and for the selection of the new chairman, granting interim powers to the Vice President and Managing Director for the running of the bank.

Main consolidated First Half 2015 Income Statement results:

  • Net profit of EUR 193.6 million versus a loss in the same period of 2014 (EUR -353 million)
  • Net interest income of EUR 1,172 million, up 4.7% Y/Y (excluding the reassessed amount of NFI repayment recorded in the first semester of 2014), thanks to the lower average amount of NFI and to the improvement of the average spread rate (up circa 20 bps in the Commercial Network) which offset the decline in interest bearing assets
  • Net commissions of EUR 927 million an increase of 6.4% Y/Y, thanks to a significant reduction of staff (FTEs -1,550 Y/Y) and of the number of branches (-150 Y/Y). Growth is primarily driven by Wealth Management fees (+16.7% Y/Y), especially by continuing fees (+21.1%); and substantially stable commissions from credit
  • The result from financial operations amounted to EUR 231 million, an increase of EUR 157 million Y/Y thanks to the optimization of the bonds portfolio
  • Operating costs at EUR 1,311 million confirm their downward trend (-1.5% Y/Y)
  • Pre Provision Profit of EUR 1,116 million up substantially Y/Y (+ 84.4%)
  • Annualised cost of credit at 168 bps vs 182 bps in the second half of 2014; Non Performing Exposure coverage at 48.8% essentially stable compared to the first quarter of 2015 and up 7.2% on an annual basis. The increase in adjustments, recorded in the second quarter includes an update of statistical models, excluding this effect the cost of credit is 140 bps, in line with the first quarter of 2015

Main consolidated Balance Sheet results:

  • Loans outstanding at EUR 117 billion, down around EUR 15 billion Y/Y due to the reduced demand for credit, to the AQR effects and to the reduction of the use of repos; a decrease of EUR 5.
  • Direct funding stands at EUR 126.2 billion (-3,5% Y/Y), due to a decrease in bonds, current account and the and the repayment of the NFI
  • Indirect funding of about EUR 108 billion, up 1% Y/Y, with growth of the contribution from wealth management (+EUR 6.4 billion, of which EUR 5.0 billion funds) and a decrease of assets under custody (EUR -5.4 billion )
  • Continued optimisation and de-risking of the securities portfolio, down EUR 3.3 billion on an annual basis, with a decline mainly due a drop in AFS. The Italian Government bonds' nominal value stands at about EUR 19.7 billion (EUR 21 billion at the end of 2014) with 19.3% maturing by the end of 2017
  • Interbank exposure of EUR 10.5 billion, down 54.7% on an annual basis, thanks to the full repayment of the LTRO
  • Unencumbered counterbalancing capacity of about EUR 20 billion (11.1% of total assets down from 14.7% as at end June 2014)
  • Pro forma CET1 transitional ratio at 30 June 2015, including the capital increase for the payment of interest accrued on NFIs, at stands at 11.3%


Download the complete version

distributed by