Iccrea business plan: one billion in profit by 2025
The group Icreate provides a net profit of 987 million euros by 2025 from 750 million in 2022, with a Roe (Return on equity) del 6,9% from the current 6.3%. Iccreate, which collects 118 Bcc with a total of over 5 million customers and is one of the two cooperative credit centres, presented the industrial plan for the next three years.
“Even more efficient business model”
“The results we have achieved to date have made us resilient and ready to face new challenges as protagonists by leveraging our identity – he commented Mauro Pastore, general manager of the Iccrea group – That of the cooperative banking group turned out to be a successful model which has allowed us to deliver great value to the community, improving the competitive positioning of our group and enhancing autonomy, localism and proximity of our CCBs”.
“With the piano 2023-2025 we intend to make this business model even more efficient and modern, evolve the offer to best meet customer needs and excel in capital and financial solidity, guaranteeing long-term stability”, he added.
Job growth
The group expects growth of jobs to customers a 98 billion from the current 93.3 and a total collection of a 124.8 billion. “In this first quarter i credits they are flat for us too,” Pastore said, adding that he is confident in one recovery of the economy. For the hirings of the plan, the group expects substantially flat growth of Italian GDP in 2023 (+0.1%). With a recovery in the years following a +1% in 2024 and +1,4% in 2025. Inflation is expected to fall from 4,4% al 2023 all1,5% in 2025.
With regard to credit quality, the group expects a NPL ratio gross at 3.5%; net NPL ratio at 1.6%; coverage non-performing loans at 55.4%.
Cost of risk
I new defaults are expected to grow compared to 2022 and equal to approx 6 billion euros over the period of the plan, which will be countered by management actions for 6.8 billion euros to ensure a reduction of positions non performing lorde of around 0.8 billion euro (-18.4%) at the end of 2025, despite the presence of gross loans to customers up by approximately 4.9 billion euro (+1.7% Cagr 22-25).
Il cost of risk annual average in the period 2023-2025 will be approx 77 bps (compared to 49 bps in 2022) with an impact on the income statement equal to the total 2.2 billion euros in the three-year period.
Capital strengthening
From the point of view of equity parameters, the group expects constant growth of Cet1 ratio up to 20,7% in 20225 from 19.2% in 2022. In support of the needs Mrel Rwa also provides 2.8 billion of issues, almost exclusively senior. Of these, 1.150 billion per year between 2023 and 2024 (of which 500 already issued) e 500 million in 2025.