In 2021, the good performance of revenues (+ 2%), with a record growth of 14.4% in commissions, and the structural containment of recurring management costs (-3.5%) allowed Banco di Sardegna to further strengthen the solidity of the financial statements, fully expending the substantial increase in the coverage rates of impaired loans attributable to the updating of the valuation models in compliance with recent regulatory indications, in line with the prudential approach taken for some time and taking into account the need to update the scenarios to the most recent forecasts with a view to the elimination of moratoriums and public guarantees on loans.
The coverage ratios of the impaired thus achieved - with bad loans at 69.1% and Utp at 46.9% - recorded an increase of 11.6 percentage points in the overall coverage ratio, which stood at 61.4% , among the highest in the system. With the same logic, the coverage ratio of performing loans also more than doubled, rising to 0.80%.
The increase in coverage went hand in hand with the reduction in the NPE ratio, which fell from 9.8% to 8.2% gross and 3.4% net, due to the constant action of de-risking.
“These indicators confirm the Bank's great balance sheet and capital solidity”, the bank said in a note.
In 2021, Banco di Sardegna took action on two fronts: on the one hand, it consolidated its robust capital solidity, confirmed its excellent liquidity position and strengthened the balance sheet structure, on the other hand, despite the difficult context, it guaranteed close proximity and adequate financial support to the area.
Very positive performances were achieved in commercial performance, in asset management - with indirect deposits rising to 5.8 billion (+ 2.2%) and direct deposits rising to 11.5 billion (+ 7.6%) - and in the granting of loans to businesses and individuals which rose to 7.2 billion, with over 580 million in Covid loans guaranteed by the state and a peak of excellence in home loans, with new record disbursements of 630 million (+ 30%).
The interventions for the promotion of innovation, research, development and investment projects disbursed under the various subsidized funds of community, governmental and regional origin awarded to the Bank in the tender calls - to name a few, the enterprise emergency fund are also worth mentioning. Bei / Ras, Jessica, the Miur fund for research and innovation, the Mise fund for sustainable growth and the Mipaaf / Cdp agreement for supply chain and district contracts.
