The Sella group closed the first quarter of the year with high-grade results, thanks to the good performance in all business sectors resulting from the growth strategy based on the quality of customer relations, technological innovation and the fostering of an open ecosystem. Group results as of 31 March 2023 approved today by the Board of Directors of the Parent company Banca Sella Holding recorded a net profit of €48 million, up from €35 million in the same period of the previous year.

Alongside the good overall performance, the result also echoed the non-recurring component arising from the strategic partnership with Sesa Group to strengthen its presence in the open finance services market. The agreement gave rise to two companies: Nivola, controlled by Sella through Centrico, and BDY, dedicated to the marketing of core banking software and application services on the Italian market, 49% owned by Centrico and to which a business unit was transferred.  Net of the capital gain arising from the BDY transaction, the net profit was worth €32.3 million. From an industrial point of view this is higher than in the last year, as evidenced by the growth in the operating income of around €84 million (+23% compared to the same period in 2022) thanks to the growth in the net banking income exceeding that of costs. Compared to last year results, there was a higher cost of credit risk (up from €6.1 million at the end of 2022, or 37 bps, to around €11 million, or 41 bps) and some prudential write-downs on equity investments against last year's capital gains. 

During the quarter, the Group confirmed its significant growth in the net banking income, which increased by €35.5 million (+16.3% compared to the same period last year), reaching € 252.7 million. The net interest income rose to €129.9 million (+60%), mainly due to the commercial component. The Net income from services grew to €101.6 million (+6.6%). Net income from financial activities amounted to €21.2 million (-47.9% because of transactions in the last year involving the sale of securities and tax credits to third parties).

In a global scenario that remains still uncertain and marked by international tensions, inflationary pressures and rising interest rates, the Sella group shows growth in global net inflows, which in terms of market value exceeded the €50 billion threshold (50.5 billion, +3.8% compared to 48.7 billion at the end of 2022). In particular, global net inflows were performing at €933 million, reflecting customer confidence. Indirect deposits grew to €34.6 billion (+8.1%). Direct deposits fell by -4.3%, mainly due to their partial transformation into indirect deposits, in line with the advice given to customers to seize opportunities in a high-interest rate scenario. Lending to support household and corporate activities, net of repos, increased to €10.7 billion (+2.1%).

Credit quality ratios were positive. The annualised cost of credit risk stood at 41 bps (it was 37 at the end of 2022). The net NPL Ratio attained 2% (it was 1.8%) and the gross NPL Ratio reached 3.7% (it was 3.5%). The coverage ratio on impaired loans is 47.6% (it was 49.5%) and the coverage ratio on non-performing loans is 65.7% (it was 65.7%). The Texas Ratio is 27.7% (it was 27.2%).

The sound capital position, already well above the required standards, sees further growth in the ratios: Cet1at 13.27% and Total Capital Ratio at 15.16% (13.21% and 15.12% at the end of 2022). Liquidity ratios are also well above the required minimum limits: LCR at 167%, NSFR at 127.1% (the required threshold is 100% for both).

The effective performance found support by all sectors in which the Group engages and the good diversification and balancing of revenue sources. Specifically, compared to the end of 2022, net inflows from asset management and advisory services grew by €610 million to €22.3 billion. Against the same period of the previous year, revenues from investment services grew by 1.7% to €46.9 million, partly due to the favourable performance of the financial markets, with a beneficial effect on assets under management, worth €305 million. Concerning payment systems, the net banking income grew by 13.2% to €24.6 million, with total transacted volumes related to acquiring and issuing services up 27.4%. Finance and investment banking recorded an effective margin performance of €40.6 million, however, lower than in the same period last year (falling by 32% both due to the implications of interest rate dynamics on the trading earnings and because last year a major sale of securities impacted the result). Revenues from new business rose 11.2% to €19 million, mainly due to corporate and investment banking, open payment and platform services.

As part of the Group growth and development strategy, the commitment to sustainability continues, specifically through further initiatives to steadily reduce gross residual CO2 emissions, and supporting customers with ESG products and services, such as: a loan rewarding companies committed to an energy transition path, envisaging cost reductions upon reaching fixed sustainable targets; a loan to support investments in renewable sources, and a loan aimed at purchasing buildings falling under a virtuous energy class.