(Alliance News) - The board of directors of Banca Sistema Spa approved the consolidated financial statements as of June 30, six months ended with a net profit of EUR7.5 million, down from EUR12.2 million for the same period in 2022.

Net interest income amounted to EUR35.8 million from EUR44.6 million in the first half of 2022.

Net interest and other banking income is EUR49.4 million from EUR54.8 million in the same period of 2022.

As for ratios, the CET1 ratio is at 11.9 percent and the total capital ratio at 15.0 percent, excluding the "HTCS reserve" 13.3 percent and 16.5 percent respectively.

The factoring business line recorded solid growth, with turnover volumes of EUR2.48 billion, a growth of 18%, led by the trade receivables segment.

With reference to the CQ business line, the group disbursed EUR77 million in loans, down from last year when it was EUR215 million, of which EUR104 million was from the direct channel, exclusively with the direct channel "QuintoPuoi."

The stock of gross impaired loans is EUR298.4 million up from December 31, 2022 when it was EUR284.8 million and from March 31 when it was EUR275.9 million.

The quarterly performance is driven by lower past due loans of EUR61.9 million from EUR67.4 million as of March 31, more than offset by higher probable defaults of EUR63.1 million from EUR34.5 million as of March 31.

As for the future, the company explains in a note, "while the factoring division, Kruso Kapital and the new CQ disbursements will be able to reflect the higher cost of funding attributed to them in a higher yield on on-balance sheet loans, the stock of CQ loans, due to a higher maturity, will continue to be negatively impacted by the yield (fixed rate) of loans originated in previous years, which are significantly lower than current market rates."

"Although the QC business is experiencing less impact from the phenomenon of portfolio prepayment and can benefit from a higher yield associated with newly originated loans, however, the relative size of the old portfolio is such that the QC division's net interest income will remain negative at least through 2023."

Banca Sistema's stock is down 0.5 percent at EUR1.22 per share.

By Chiara Bruschi, Alliance News reporter

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