Resilient Commercial Dynamics and successful execution of transform 2019 deliver sustainable results.
- Group core strong performance: 1H18 net profit at €2.6 bn, up 4.2% Vs. 1H17 adjusted, with rote at 10.9%, up 0.2 p.p. vs. 1H17 adjusted. 2Q18 Group core gross NPE Ration improving, downs 85 BPS Y/Y to 4.4%.
- 2Q18 group net profit at €1.0 bn, down 13.3% vs. 2Q17 adjusted, due to higher other charges and provisions. Sustained underlying financial performance with 2Q18 Group net operating Profit at €1.8 bn, up 7.9% y/y. 1H18 Group rote at 8.7%, up 0.4 p.p. vs. 1H17 adjusted. FY19 Group rote target >9% confirmed.
- 2Q18 Group net interest at €2.7 bn (+1.6% q/q). Positive commercial dynamics with higher lending volumes (+9.0 bn q/q Group core) and positive net aum sales (+3.2 bn in 2Q18 Group) despite challenging markets. Resilient group fees (-0.3% y/y) with transactional fees compensating lower investment and financing fees.
- 2Q18 Group costs at €2.7 bn, down 7.0% y/y and 2.9% q/q. Branch and FTE reduction ahead of schedule, achieved 87% of FTE2 reduction and 84% of branch closure targets. 1H18 Group cost/income ratio at 53.6%.
- 2Q18 Group COR at low 45 BPS mainly driven by non-recurring write-backs in CIB. FY18 Group COR expected to be below 68 BPS.
- 2Q18 Group gross NPE ratio improved to 8.7% (-243 BPS y/y) with gross NPEs down €10.2 bn y/y and €2.0 bn q/q, of which €1.1 bn disposals in 2Q18. Non-core gross NPEs at €22.2 bn in 2Q18 with FY18 new target at €19 bn.
- 2Q18 Group fully loaded CET ration at 12.51%, including -35 bps impact of FVOCI3 portfolio. FY18 fully loaded CET ratio confirmed between 12.3% and 12.6% at current BTP spread levels.
Full press release can be downloaded here.
Source: UniCredit Bulbank