(Alliance News) - Banca Popolare di Sondrio Scpa reported Tuesday that it posted a net profit of EUR461.2 million in 2023, up 84 percent from EUR251.3 million a year earlier.

Profit from ordinary operations rose 26 percent to EUR1.34 billion from EUR1.06 billion, of which net interest income increased 38 percent to EUR937.0 million from EUR681.1 million and net commissions rose 5.8 percent to EUR402.6 million from EUR380.6 million.

Income from financial activities rose to EUR123.0 million from EUR76 million while net interest and other banking income increased 37 percent to EUR1.47 billion from EUR1.07 billion.

Net adjustments stood at EUR224.5 million compared to EUR169.8 million in the comparison period, up 32 percent. Total income before tax marked EUR660.3 million compared to EUR353.9 million as of Dec. 31, 2022.

Direct customer deposits amounted to EUR42.39 billion, up 1.5 percent from the end of 2022 and 6.9 percent from the end of September. Indirect deposits stand at EUR46.32 billion compared to EUR39.06 billion at the end of 2022, up 19 percent.

Net impaired loans total EUR562 million, down 7.6 percent from EUR609 million as of Dec. 31, 2022. The ratio of these to total net loans is 1.6 percent, lower than the end-2022 figure of 1.8 percent. Coverage levels remain particularly high; that referring to total impaired positions stands at 57.3 percent from 58.3 percent at the end of 2022.

The bank has proposed a dividend of EUR0.56, up from EUR0.28 paid last year, with payout revised upward to 55 percent from the 50 percent under the plan.

Capital ratios remain at particularly high levels, showing a large buffer against regulatory requirements. In the phased-in version, the CET 1 ratio and Tier1 ratio stand at 15.4 percent while the total capital ratio is 17.7 percent. In the fully loaded version, the ratios mark 15.1 percent and 17.5 percent, respectively.

Banca Popolare di Sondrio's stock closed Tuesday down 2.7 percent at EUR6.56 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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