Consolidated results for H1 2018 approved

Net profit for the half year of € 307.9 million, almost three times what it was in the first half of last year

The Group's high financial solidity is confirmed with a Phased In  CET1 ratio of 14.72%, well above the SREP 2018 requirement set by the ECB at 8.125%. Fully Phased CET1 ratio of 11.63%, much the same as in the first quarter, despite the impact of the rise in yields on the equity reserve for the securities in portfolio

Further significant reduction in the gross NPE stock of € 1.7 billion, also thanks to the "4Mori Sardegna" securitisation of bad loans concluded last June:

-    Gross NPE ratio at 17.4% from 19.9% at 1 January 2018 (-2.5 p.p.) down for the eighth consecutive quarter;
-    Net NPE ratio at 8.4% from 9.2% at 1 January 2018; 
-    Improvement in annualised credit quality metrics with a default rate of 2% and a cure rate  of 13.8%  
-    Texas ratio  of 95.5% (-6.0 p.p. on 1 January 2018)

Coverage of NPE of 56.9% at the highest levels of the Italian banking sector. The considerable increase in coverage was favoured, in particular, by the provision made in conjunction with the introduction of the new accounting standard IFRS 9 on 1 January 2018. In detail:

-    coverage of bad and unlikely to pay loans at 64.9% and 41.9% respectively at 30 June 2018 

Net result from operations of € 476.7 million, supported in particular by the very positive trend in net commissions and the net profit from financial activities, also thanks to gains realised on debt securities. The annualised cost of credit comes in at a distinctly low level (36 bps)