Banco di Sardegna confirms itself as a point of reference 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 30 June 2024 were examined and approved by the Board of Directors of Banco di Sardegna, which met in Sassari on 30 July.

«The performance of the first half of 2024», underlines the president Gianfranco Farre, «is confirmed as more than positive both on the economic front, with a net profit of 65.6 million, after having spent 12.6 million in systemic costs in a single solution and 19.6 million in non-recurring expenses, both on the equity front, with customer loans remaining stable at around 7 billion and overall funding rising to 18.9 billion (+2.7% on 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 levels of excellence, with a gross NPE ratio of 2.2% and a net NPE ratio of 1.1%, compared to an annualized default ratio of 1% and a coverage of impaired loans of 49.8%". «The Bank confirms itself as solid, efficient and constantly committed to contributing to the economic and social growth of Sardinia. These results", the president highlights, "were also achieved thanks to the passionate work of all the staff, involved in an important multi-year training plan, oriented towards the growth and valorisation of talents".

Main results – “Core” revenues (interest margin and net commissions) reached 249.2 million (-0.7%), driven by the interest margin, which stood at 151.6 million (+2.9% ); net commissions decreased to 97.6 million (-5.8%).

The contribution from the trading of financial assets and dividends[v] was positive for 9 million, mainly due to the latter, amounting to 8.4 million.

Operating expenses reached 138.9 million, up 20.2 million y/y (+17.1%), with personnel expenses at 90.3 million (+23.5 million) - including 19 .6 million non-recurring, related to the agreement for the optimization of the workforce - and with other administrative expenses falling to 41.1 million (-9.1% compared to June 2023).

The cost/income ratio, net of the extraordinary cost relating to the personnel measures, stood at 45.4% (44% one year earlier).

Net value adjustments for credit risk at 17.5 million, down compared to 24.3 million y/y; the annualized cost of credit stands at 52 basis points, an improvement compared to the figure for the 2023 financial year (57 basis points).

The contributions to the systemic funds, at 12.6 million, relate to the contribution to the Deposit Guarantee Fund: the figure, although in line with the amount referring to the entire 2023 financial year, was accounted for in advance to the first quarter of 2024 following of regulatory changes.

The Texas Ratio is confirmed at excellent values, with a virtuous 13.9% (11.5% at the end of 2023).

Gross profit reaches 93.8 million, while net profit, after discounting taxes of 28.2 million, reaches 65.6 million.

Overall funding rises to 18.9 billion (+2.7% on December 2023), with direct funding from customers at 11.8 billion (-1.6%) and indirect funding at 7.1 billion (+10 ,8%).

Net loans to customers are confirmed at around 7 billion, in line with the end of 2023. New disbursements exceeded 400 million and offset the 350 million in maturities; the strong support for families for the purchase of their first home was confirmed, with new disbursements amounting to 234 million[viii].

The intense derisking activity has allowed Banco di Sardegna to achieve and maintain high asset quality standards: the incidence of gross impaired loans to customers (gross NPE ratio) is equal to 2.2% (1.8% at the end 2023), while the incidence of net impaired loans to customers (net NPE ratio) is equal to 1.1% (1% at the end of 2023). With reference to performing loans, there are no critical issues and an annualized default rate of 1% is estimated.

The coverage ratio of impaired loans is 49.8% (49.3% at the end of 2023); coverage of performing loans stood at 0.7% (0.6% at the end of 2023) with, in particular, that of exposures classified as Stage 2 at 6.3%, up compared to 5.7% at the end of 2023 .

The consistency of the securities in the portfolio at 1.8 billion is mainly made up of Italian government bonds (1.5 billion), the latter with a duration of 3 years.

Net interbank financing[ix] recorded a positive balance of 5.2 billion, up 2.1% compared to the end of 2023.

Net worth stands at over 1 billion, substantially stable on December 2023.

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