The Group's preliminary consolidated results for 2018 have been approved
Profit for the year of € 402.0 million, the highest in the Group's history.
Proposal for a cash dividend of € 13 cents per share (€ 11 cents in 2017), confirming the constant growth in shareholder remuneration over time.
Asset quality has again improved considerably:
- Significant reduction in the gross stock of NPEs equal to € 3.5 billion since the beginning of 2018 (-33.1%), also thanks to "4Mori Sardegna" and "Aqui", the two securitisations of bad loans completed during the year for a total of about € 3.0 billion
- Gross NPE ratio now at 13.8%, down by more than 6 percentage points from 19.9% at the beginning of the year. Net NPE ratio now at 6.8%, down from 9.2% at 1 January 2018 (-2.4 p.p.)
- Texas ratio of 85.0%, down from 101.5% at 1 January 2018 (-16.5 p.p.)
Group financial position is solid with a Fully Phased CET1 ratio of 11.9%, substantially stable compared with September 2018. Phased In CET1 ratio of 14.3%, far higher than the SREP requirement set by the ECB for 2019 at 9.0%.
The growth in commercial activity has been positive with gross performing loans to customers exceeding € 44.0 billion, up 3.7% from the start of 2018. There have been significant increases in volumes, also in terms of total funding, which come to € 91.3 billion if we include the rapidly expanding Bancassurance sector.
The net result from operations amounts to € 698.4 million, boosted by a very strong performance on the part of net commission income and the result from financial activities. The annualised cost of credit stands at 47 bps, which is low compared with 112 bps in 2017. The positive trend in the main economic aggregates has made it possible to absorb significant non-recurring charges related to the sale of bad loans and impairment adjustments to goodwill and tangible assets, among others. Conversely, positive income taxes were recorded during the year, largely due to the effect of deferred tax assets recognised during the year.