Credito Emiliano S p A : Risultati 1H23 Gruppo Credem

GROUP RESULTS

1H23

1H23: LOANS GROWTH AND ASSET QUALITY

LOANS GROWTH

Loans to customers stood at 34.8 billion, up by 3.7% YoY, more than almost 6 p.p. compared to the Industry, down by 2.2% YoY. Direct funding up more than 6% YoY, in sharp contrast to the Industry, down by 2.3% YoY

Loans

Direct Funding

+3.7%+6.2%

-2.2%-2.3%

1H23

ASSET QUALITY

Gross NPL Ratio at 2.0%, lower than the EU average (2.2%) and well below the average of the Italian

Banking Industry (2.9%). Net NPL Ratio < 1%

Gross NPL Ratio

Net NPL		2.9%
	2.2%
Ratio	2.0%
0.9%

Industry loans: source ABI Monthly Outlook July 2023, Private sector and PA

Source Italian and European NPL ratio average, NPL Ratio calculated excluding cash balances at central banks and other demand deposit2 ECB, Supervisory Banking Statistics 1Q23. https://www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm.supervisorybankingstatistics_first_quarter_2023_202307~43c5bf1395.en.pdf

1H23: PROFITABILITY AND CAPITAL SOUNDNESS

PROFITABILITY
Strong growth of Net profit, up by more than 90%	298.7
vs 1H22	MLN	20.8%	17.9%
Profitability ratios at the highest level in the
Industry, ROTE and ROE at 20.8% and 17.9%
respectively
1H23	UTILE NETTO	ROTE	ROE
CAPITAL SOUNDNESS	14.4%

Capital soundness confirmed at the highest level	CET1		6.80%
in the Industry, CET1 Ratio at 14.4% and 680 bps	Ratio
of buffer on the SREP 2023 requirement	1H23	7.56%

*% YoY on Net Profit 2022 data were restated incorporating the effects of the application of the new accounting standards IFRS9 and 17 for insurance companies
CET1 Ratio calculated at Credemholding level (prudential perimeter). Lowest P2R among banks directly supervised by the ECB that published the requirement	3

BUSINESS DIVERSIFICATION

Operating Income

Core Operating Income**

€/million

	357.6			331.1			352.5				437.3			475.6		478.7
	318.6				329.0				345.4				429.5			425.5		463.6
	0.0%		0.3%		0.5%				0.2%			2.0%	0.3%
			1.6%						2.9%
	10.9%		0.4%					1.6%			8.5%
	36%		44%		47%				51%				56%
											49%

53%	55%	51%	47%	40%	41%
1Q22	2Q22	3Q22	4Q22	1Q23	2Q23
Core NIM on Operating Income		NII on Operating Income
Income from Financial Activities on Operating Income	Performance Fees on Operating Income

Operating Income kept growing, driven by the rise in NII, that in 2Q23 contributed for more than 56% of total revenues, and by the excellent resilience of the fee components. Core Non Interest Margin* was still more than 40% of operating income, confirming the efficiency of the Group's business model and the high diversification of revenue sources. The strong growth of recurring revenues (Core Operating Income) was confirmed: more than 463 million in 2Q23, +41% vs 2Q22

*Core NIM: Non Interest Margin net of non-recurring items (Income from Financial Activities, Performance Fees) ** Core Operating Income: Net Interst Income + Core Non Interest Margin. 2022 data were restated incorporating the effects of the application of the new accounting standards IFRS9 and 17 for insurance companies; the detail of 2022 4 banking fees and AUM fess was also restated in order to incorporate in a more analytical way the fees related to the payment service components, current accounts and other residual commissions

						CONTRIBUTION	TO CONSOLIDATED NET PROFIT
	Commercial banking							€192.1 mln
	Credem Banca		Private Banking
						€24.7 mln
			Credem Euromobiliare
			Private Banking
	Extended Banking Services, Consumer Credit & Other	€35.6 mln
	Credem Factor	Credemtel
	Credem Leasing Avvera	Blue Eye
	MGT	SATA
	Wealth Management								€56.3 mln
	Euromobiliare SGR
	Euromobiliare Advisory SIM								Wealth &
	Euromobiliare Fiduciaria
								Private
	Credem Private Equity
								€81.0
	Asset Management
	CredemVita						Consolidation adjustments	mln
	Credem Assicurazioni							-€10.0 mln
	Insurance
		Network			NET PROFIT €298.7 mln
			Factories