Consolidated Interim report at 30 September 2018 approved

Net profit for the period of € 358.1 million compared with € 149.0 in the first nine months of 2017

 

 

The Group's capital strength has improved with a Fully Phased CET1 ratio of 12.0%, a considerable increase of around 40 bps compared with June, partly due to the limited impact of the rise in market yields on the equity reserve for the securities in portfolio.

Phased-In CET1 ratio  of 14.7%, well above the SREP 2018 requirement set by the ECB at 8.125%

 

Significant reduction in the gross NPE stock of € 1.7 billion in the nine months, also thanks to the "4Mori Sardegna" securitisation of bad loans concluded last June:

 

Gross NPE ratio at 17.3% from 19.9% at 1 January 2018 (-2.6 p.p.);

Net NPE ratio at 8.3% from 9.2% at 1 January 2018 (-0.9 p.p.);

Annualised default rate of 1.9% 

Texas ratio  of 94.1% from 101.5% at 1 January 2018 (-7.4 p.p.);

Coverage of non-performing loans of 56.7% at the highest levels of the Italian banking sector

 

Net result from operations of € 651.7 million in the nine months, supported by the very positive trend in net commissions and the net profit from financial activities, also thanks to gains realised on debt securities, in particular during the first quarter of the year.

The annualised cost of credit comes in at a low level (45 bps)

 

Securitisation of a bad loan portfolio called "AQUI" for a gross book value of € 1.9 billion completed yesterday, 7 November, as part of the BPER Group's NPE Strategy 2018-2020 ; the accounting impacts of this operation will be recorded in the fourth quarter of the year. Following the book deconsolidation of the "AQUI" portfolio, the gross NPE ratio pro-forma of the BPER Group, compared with the figure at 30 September 2018, namely 17.3%, is put at 14.4%, a reduction of 2.9 bps