CheBanca! BoD- Financial statements for 31 March 2020 approved

The last weeks of 3Q were marked by the spread of the Covid-19 virus, which has changed the social and economic scenario profoundly. Amid the devastation caused by the global sanitary crisis, CheBanca! has continued to demonstrate the value, resilience and effectiveness of its business model.

Our digital mission which has always been part of the bank’s DNA, has enabled all necessary measures to be taken promptly, to protect the health and safety of our staff and to ensure business continuity for our clients. As of today, some 80% staff members are working from home, while others are working in the branch offices or advisory spaces in complete safety. CheBanca! today is closer to our clients than ever, as a result of the large-scale digitalization of our processes, which has enabled us to step up the provision of distance advisory services and allow clients to perform banking operations without having to come to the branch.

The effectiveness of the business model adopted by CheBanca! is demonstrated by the quarterly results for the three months ended 31 March 2020, which show:

  • Net new money of €0.9bn, almost double the previous quarter (€0.5bn), with deposits of €0.6bn and inflows of indirect funding totalling €0.3bn, further confirmation of the confidence placed in us by our clients who more than ever, at times like this, are looking for quality, solidity and transparency;
  • TFAs stable at €26.3bn (31/12/19: €26.5bn): prudent asset allocation and the substantial presence of capital protected insurance products have mitigated the negative market impact, allowing the reduction in the AUM/AUA component to be kept to just €0.8bn (down 6.6%);
  • Customer loans up 2.6%, to €10.1bn; CheBanca! continues to support households, granting mortgage loans totalling €0.5bn (€0.8bn in 2Q) at low LTV levels.

 

Results for the nine months bear out the continuing positive performance in the CheBanca! growth story:

  • Strong growth in revenues to €237m (up 7.5% year-on-year), on higher fees (up 22% to €76m) and net interest income (up 2% to €160m);
  • Costs up 6% (to €185m) due to the increase in operations and enhanced distribution, with 863 professionals (up 11% in 9M) and 190 POS:
    • 454 affluent/premier relationship managers (9 added in 9M),
    • 409 FAs (74 added in 9M),
  • Profit before tax up 7% to €39m.
  • NNM of €1.6bn and TFAs of €26.3bn (up 5% YoY) due to growth in AUM in particular: AUM/AUA totalled €11bn, up 15% YoY, deposits €15bn (flat YoY).

Milan – 29 April 2020 – At a Board meeting held today, today, the Directors of CheBanca! approved the bank’s results for the period ended 31 March 2020.

Mediobanca Group