Banco di Sardegna establishes itself as a reference point for families and businesses in Sardinia. In a reciprocal relationship. Confirmation in the “numbers” for the first half of the year. The results as of June 30, 2024 were reviewed and approved by the Board of Directors of Banco di Sardegna, which met in Sassari on July 30.
“The performance of the first half of 2024,” underlines President Gianfranco Farre, “is confirmed both economically and more than positively, with a net profit of 65.6 million after 12.6 million in systemic costs spent on a single solution and 19.6 million in one-off expenses, both on the equity side, with customer loans remaining stable at around 7 billion and total financing increasing to 18.9 billion (+2.7% compared to the end of 2023). The efficiency and solidity indicators also confirm their particular satisfaction, with a cost-income ratio of 45.4%, a CET1 ratio of 29.2% and the Texas ratio of 13.9%. Credit quality,” adds Farre, “remains at an excellent level, with a gross NPE ratio of 2.2% and a net NPE ratio of 1.1%, compared to an annualized default rate of 1% and impaired loan coverage of 49.8%.” “The bank is proving to be solid, efficient and always committed to contributing to Sardinia’s economic and social growth.” “These results,” underlines the President, “have also been achieved thanks to the passionate work of all the staff involved in an important multi-year training plan aimed at developing and valorizing talent.”
Main results – “Core” revenues (interest margin and net commissions) reached EUR 249.2 million (-0.7%), driven by the interest margin which stood at EUR 151.6 million (+2.9%); net commissions fell to EUR 97.6 million (-5.8%).
The contribution from trading in financial assets and dividends[v] was positive with 8.4 million, mainly due to the latter with 9 million.
Operating expenses amounted to 138.9 million, up 20.2 million year-on-year (+17.1%), while personnel expenses amounted to 90.3 million (+23.5 million) – including 19.6 million in one-off expenses related to the workforce optimization agreement – and other administrative expenses fell to 41.1 million (-9.1% compared to June 2023).
The cost-income ratio, adjusted for extraordinary costs related to personnel measures, was 45.4% (44% in the previous year).
Net value adjustments for credit losses were $17.5 million, down from $24.3 million a year ago; annualized credit costs were 52 basis points, up from the fiscal year 2023 figure of 57 basis points.
The contributions to the system funds amounting to EUR 12.6 million relate to the contribution to the deposit guarantee fund: although the amount corresponds to the amount relating to the entire 2023 financial year, it has been settled in advance to the first quarter of 2024 following regulatory changes.
The Texas Ratio is at an excellent level of 13.9% (11.5% at the end of 2023).
Gross profit reaches 93.8 million, while net profit after taxes of 28.2 million reaches 65.6 million.
Total financing increases to 18.9 billion (+2.7% compared to December 2023), with direct financing from customers amounting to 11.8 billion (-1.6%) and indirect financing amounting to 7.1 billion (+10.8%).
Net loans to customers are confirmed at around 7 billion, corresponding to the end of 2023. New disbursements exceeded 400 million, offsetting the 350 million due; The strong support for families in buying their first home was confirmed with new disbursements of 234 million[viii].
Thanks to the intensive risk reduction measures, Banco di Sardegna has been able to achieve and maintain high asset quality standards: the gross incidence of non-performing loans to customers (gross NPE ratio) is 2.2% (1.8% at the end of 2023), while the net incidence of loans to customers who have lent to customers is 2.2% gross (1.8% at the end of 2023). The non-performing loans to customers (net NPE ratio) is 1.1% (1% at the end of 2023). In terms of creditworthiness, there are no critical issues and the annual default rate is estimated at 1%.
The non-performing loan coverage ratio is 49.8% (49.3% at end-2023); the non-performing loan coverage was 0.7% (0.6% at end-2023), with the non-performing loan coverage in particular for exposures classified as stage 2 at 6.3%, compared to 5.7% at end-2023.
The consistency of the securities portfolio of 1.8 billion is mainly composed of Italian government bonds (1.5 billion), the latter with a maturity of 3 years.
Net interbank financing[ix] recorded a positive balance of 5.2 billion, an increase of 2.1% compared to the end of 2023.
Net assets are over $1 billion, essentially stable compared to December 2023.
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