(Finance) – The South Tyrolean bank Volksbank closed the first half of 2024 with a net profit of 58 million euros, up 8.5% compared to the same period of 2023. The institute recorded a 2.2% increase in the financial margin, reaching approximately 194 million euros, thanks to the contribution of commissions (+5.7%) and the normalization of the finance activity, which more than offset the increase in interest expenses for the remuneration of customer deposits.
Compared to the end of 2023, the liquidity of families and businesses has grown by over 220 million euros (+2.6%), customer credit of approximately 70 million euros (+0.9%) and the managed collection (mutual funds, life insurance) grew by approximately 230 million euros (+7.1%).
The credit risk is stable at approx. 15 basis points, thanks to lower classifications (deterioration rate at 0.8%) and significant recoveries on already classified positions (13 million euros). The net share of the impaired loan portfolio on the overall portfolio (Net NPL ratio) has now reached 1.7%, a further reduction from 1.9% in December 2023. The coverage of the impaired portfolio has risen further, reaching 59.5%, 10 percentage points above the System average.
THE capital ratiosalready net of the expected distributions, are confirmed to be solid and growing, with the Total Capital Ratio (TCR fully phased) rising from 16.6% at the end of 2023 to 17.0% and the Common Equity Tier 1 Ratio (CET1 fully phased) rising from 15.3% at the end of 2023 to 15.7%.
“Volksbank’s 2024 is further confirming the reliability and soundness of the path defined in the I-mpact 2026 Plan – commented the President Lukas Ladurner – We are recording solid results, thanks to the Bank’s employees who provide excellent customer service, increase volumes, customer numbers and market shares and anticipate the challenges posed by inflation, the interest rate environment and economic stagnation”.
The Board of Directors has decided to convene a meeting on 25 September 2024 to propose the distribution of a dividend from profit reserves for a total amount of over 10 million euros, which is added to the 32 million euros of dividends already distributed to shareholders in May 2024. The Assembly will also be called upon to define the date for the assignment of 1 free share for every 30 held, already approved by shareholders last April 20, on the basis of the proposal to use November 28, 2024 as the record date