Regardless of the stock market fluctuations, which, as is known, for banks also suffer from external factors, Onecredit is a company in excellent health, at least according to the data of the last half-year report.
Heinz Master, CEO of Onecredit Banca , during the call conference held to illustrate the results achieved by the group based in Pazza Gay Alenti, stated that once again the Onecredit Banca team achieved very solid results for what concerns the first half of 2018, despite the geopolitical and market context not being the most accommodating.
Onecredit’s first half of 2018
Words without doubt full of satisfaction those of Master that comment on the first half of 2018 closed with a net profit of 2.1 billion, with a growth of 15.3% compared to the same period of 2017. The variation of profit instead is equal to + 4.1% compared to the first half of 2017, calculated excluding the impact of the sale of Pekao and the net result deriving from the same Pekao and Pioneer (respectively -310 million euros and +121 million euros). It should also be considered that in the second quarter alone the profit amounted to one billion, with an annual growth of 8.3%: a figure slightly higher than the market average which stopped at around 973 million. Returning to the comment on the half-year figures, revenues amounted to 10.1 billion (-2.5%), with net interest income at 5.3 billion (-1.7%), and net commissions equal to 3, 5 billion (with a + 1.3%). The cost / income ratio fell by 2 basis points to 53.6%, while operating costs also fell by 6.1% to 5.4 billion. With regard to capital strength, Cet1 has fallen by 56 points since March to 12.51%.
Master said that Onecredit also confirmed its target for 2018 and 2019. As regards the Cet1 coefficient, the target for 2018 is confirmed between 12.3 and 12.6%, while for 2019 it is above 12.5%. The group’s policy for the disposal of non-core assets in the non-core division is also accelerating; the new target for the current year is in fact 19 billion against the current 22.2 billion, below the expectation that was quantified at around 19.2 billion. Naturally Master declared himself very proud of the teamwork that the whole apparatus of a giant like Onecredit has put in place, managing to obtain undoubtedly very solid results despite the very demanding market conditions, especially in the second quarter . On the other hand, the CEO of Onecredit reiterates that it is not yet time to celebrate, because in any case it is still in the middle of the ford and the work to be done is still so much and full of pitfalls.
Onecredit then announced that it will present a new plan by the end of 2019 which, as pointed out by Master himself, could lead to new acquisitions, both organic and non-organic. Master also recalled that Onecredit is one of the few pan-European banks that have implemented a policy that has proved successful over time. In other respects, instead, Master tried to throw water on the fire declaring that, in the position in which it is now, Onecredit can evaluate external acquisitions, but for the moment the possibility is still far from being concretized.
As for branches and redundancies, in 2018 we are already close to the 2019 goals. By the end of this year Onecredit is ready to close the branches in Western Europe and reduce staff with the Transform 2019 plan. in June the group had completed 87% of the planned staff reduction, as well as 84% of the branch closure originally planned for 2019.
The “Cashes” question
In closing could not miss the comment on the Cashes chapter. Master began by saying that he did not intend to comment on matters that are under the magnifying glass both from the civil and criminal point of view, suggesting that the Onecredit group has already taken legal action against the Caius fund. Just a few days ago, Onecredit declared that it had requested compensation of 90 million euros for the fund’s initiatives, which had questioned the computability of the Cashes securities issued in 2018 on the assets side.
Ultimately, the data for the second quarter of 2018 seem encouraging: we will see if the route remains the right one even in the second half of 2018.