Credito Emiliano SpA reported second-quarter net profit of €40.4 million, down from €52.3 million a year ago.
The interest margin was €120.4 million in the period, up from €118.8 million in the second quarter of 2017, while core non-interest income ticked up year over year to €147.1 million from €144.4 million.
Loan loss provisions amounted to €8.8 million in the second quarter, compared to €18.2 million a year earlier. Provisions and extraordinary items totaled €10.1 million, up from €2.9 million a year ago.
For the first half, Credem reported profit attributable to the parent company of €95.0 million, a decrease from €101.3 million in the same period in 2017. The Italian lender noted the result was negatively impacted by extraordinary components, including €15.2 million provisions for the Single Resolution Fund. EPS declined on an annual basis to 28 cents from 31 cents.
The net bad loans ratio as of June 30 stood at 1.12%, compared to 1.44% a year ago. The bad loans coverage ratio was 66.5% at June-end, compared to 60.6% a year earlier.
As of June 30, the Italian lender's phased-in common equity Tier 1 ratio stood at 13.0% as of June 30, more than 5.5 percentage points above the minimum regulatory requirement set by the ECB for 2018, compared to 13.3% at the end of 2017.