Q4 2024 Banca Sistema SpA Earnings Call Transcript
Key Points
- Banca Sistema SpA (FRA:B2S) reported a decisive recovery in revenues and profitability, with adjusted net interest income growing by 18% year on year.
- The bank's fees increased by 36% year on year, indicating strong performance in fee-based products.
- Factoring turnover grew by 3.9% year on year, excluding one-off items, and pawn loans increased by 18% or 5% on a like-for-like basis.
- Capital ratios improved, with the CET1 ratio moving from 9.9% in the first half of 2024 to 11.8% at year-end, and the total capital ratio increasing from 12.3% to 14.3%.
- The bank successfully repaid the TLTRO facility for more than $500 million in 2024, demonstrating strong liquidity management.
- The Bank of Italy's inspection report highlighted shortcomings in governance and internal control structures, requiring reclassification of some loans as past due.
- Past due loans increased significantly from EUR 79 million to EUR 372 million as of the first half of 2024, primarily related to factoring non-recourse.
- The stock of salary and pension guaranteed loans decreased by 12% year on year, aligning with the business plan but indicating a decline in this segment.
- Personnel costs grew by 9% year on year due to an increase in the number of full-time employees and national labor contract adjustments.
- The CQ division reported a loss of EUR 15.3 million, reflecting challenges in this segment despite efforts to improve profitability.
Good afternoon. This is the COSCO conference operator. Welcome and thank you for joining the Banker Systema full year 2024 results conference call.
As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing and 0 on the telephone. At this time, I would like to turn the conference over to Mr. Gian Luca Garbi, CEO of Banka Systema. Please go ahead, sir.
Good afternoon everyone, and thank you for joining the full year 2024 results of Baca Systema. In this presentation, we will first analyze the outcome of the Bank of Italy's inspection report received on the 20th of December, the next steps of the dialogue and the actions taken so far. We will then focus on the bank's performance from an operational point of view which confirms a decisive recovery in revenues and profitability.
Finally,
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