Half Year 2026 Credito Emiliano SpA Earnings Call Transcript
Key Points
- Net profit for H1 2026 rose 12.5% year-on-year to €312.9 million, with adjusted ROTE at 15.9% and ROE at 14.1%.
- Asset quality remains top-tier, with NPL ratio at 1.5% (net 0.7%) and cost of risk at just 9 basis points.
- Strong capital position with CET1 ratio at 16.22%, providing a buffer of 768 basis points above minimum requirements.
- Diversified revenue streams, with recurring revenues reaching €195.5 million in Q2, exceeding total revenues of the same period in 2025.
- Net inflows of €2.7 billion in H1 2026, driven by €1.3 billion in assets under management and insurance, supporting future commission growth.
- Customer base expanded by 5% year-on-year to 1.7 million, reflecting successful organic growth strategy.
- NII expected to grow at least 5% in 2026, supported by favorable rate positioning and commercial volume growth.
- Liquidity ratios are robust, with NSFR at 140% and LCR at 171%.
- Successful issuance of a €500 million green bond in May 2026, with no bond maturities in 2026.
- Management expects double-digit growth in recurring fees from asset management and insurance, excluding performance fees.
- Net profit for H1 2026 includes a one-off gain from the sale of merchant acquiring activities, which may not recur.
- Direct funding was flat at €69 million in Q2, as clients shifted deposits into higher-yielding asset management products.
- Cost of risk, while low, is expected to remain below 20 basis points, but any economic deterioration could pressure this.
- The securities portfolio slightly shrank to €12.2 billion due to disposals, potentially reducing future NII contribution.
- Payroll costs increased due to hiring 213 new staff, though they declined 3.5% quarter-on-quarter due to seasonality.
- The bank's sensitivity to interest rates shows a negative impact of €62 million if rates decline by 100 basis points.
- M&A opportunities are limited to areas where the network is underdeveloped, and any deal must be EPS-accretive, which may restrict options.
- The CRD4 exemption is not automatic and requires ECB approval, adding uncertainty to capital flexibility.
- Performance fees contributed significantly to Q2 results, but their sustainability depends on market conditions.
- The bank faces intense competition in the loan market, which could pressure spreads despite current resilience.
It's such a shame.
Purple rain Purple rain, purple rain.
Good morning. This is a course call operator. Welcome to CREM's conference call presenting H1 2026 results.
To be assisted by an operator during the conference call, press star and zero on your phone keypad. Let me now turn the conference over to Mr. Stefano Morolini, general manager of CREM. Mr. Morolini, you have the floor.
Good morning to all of you.
Thank you for logging in, even though we are very close to the summer holidays. Together with me, I have Giuliano Casinadi and Daniele and our CFO and Aaron Sperduti and the entire investor relations team. It was a first half that was greatly satisfactory for us, reconfirming our ability to achieve excellent results. Thanks to a growth strategy enhancing at best, enhancing our business model at best, a growth as I already told you that we could drive in an organic way and also potentially looking into opportunities we could also grow through M&A.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
