CDP: Consolidated Half-Yearly Financial Report at 30 June 2021
Press release

CDP: Consolidated Half-Yearly Financial Report at 30 June 2021

  • NEW LENDING AT GROUP LEVEL: 11.6 BILLION EURO TO SUPPORT BUSINESSES, THE PUBLIC SECTOR, INFRASTRUCTURE AND INTERNATIONAL COOPERATION (+3.8 BILLION EURO COMPARED TO THE FIRST HALF OF 2020, ALSO AS A RESULT OF 5.2 BILLION EURO OF REFINANCING ON THE MORTGAGE LOANS GRANTED TO THE REGIONS BY THE MINISTRY OF ECONOMY AND FINANCE)
  • FUNDING: POSTAL SAVINGS CAME TO 279 BILLION EURO (+5 BILLION EURO COMPARED TO YEAR-END 2020); NEW SOCIAL BOND ISSUE OF 500 MILLION EURO   
  • NET INCOME: 1.4 BILLION EURO FOR CDP SPA (+0.03 BILLION EURO COMPARED TO THE FIRST HALF OF 2020); 1.4 BILLION EURO AT CONSOLIDATED LEVEL (+2 BILLION EURO COMPARED TO THE FIRST HALF OF 2020)

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Rome, 30 July 2021 h 16:48 - The Board of Directors of Cassa Depositi e Prestiti SpA (CDP), chaired by Giovanni Gorno Tempini, approved the Consolidated Half-yearly Financial Report at 30 June 2021, as presented by the Chief Executive Officer Dario Scannapieco.

Half-year highlights

In the first half of 2021, new lending for Businesses, the Public Sector, Infrastructure and International Cooperation totalled 11.6 billion euro at Group level and 11.5 billion euro at CDP SpA level. The increase on the first half of 2020 was also a result of 5.2 billion euro of refinancing on the mortgage loans granted to the Regions by the Ministry of the Economy and Finance (compared to 0.7 billion euro in 1H2020).

In terms of the income statement and balance sheet results, CDP SpA reported a net income of 1.4 billion euro (1.3 billion euro in the first half of 2020). Postal savings increased to 279 billion euro (275 billion euro at year-end 2020).

At CDP Group level, which includes CDP SpA and the subsidiaries subject to management and coordination, earnings before tax stood at 1.2 billion euro (0.9 billion euro in the first half of 2020). At consolidated level, including all other investee companies, net income amounted to 1.4 billion euro (loss of 0.7 billion euro in the first half of 2020). Net income pertaining to the Parent Company totalled 0.3 billion euro (loss of 1.4 billion euro in the first half of 2020).

CDP S.p.A.

  • New lending: 11.5 billion euro (+50% vs 1H2020)
  • Net income: 1.4 billion euro (+2% vs 1H2020)
  • Total assets: 416 billion euro (+1% vs FY2020)
  • Total funding: 386 billion euro (+2% vs FY2020)
  • Postal savings: 279 billion euro (+2% vs FY2020)
  • Equity: 24.5 billion euro (-4% vs FY2020)
  • Cost/income ratio: 6% (in line with 1H2020)

CDP Group

  • New lending: 11.6 billion euro (+50% vs 1H2020)  
  • CDP Group earnings before tax: 1.2 billion euro (+33% vs 1H2020)
  • Consolidated net income: 1.4 billion euro (loss of 0.7 billion euro in 1H2020)
  • Net income pertaining to the Parent Company: 0.3 billion euro (loss of 1.4 billion euro in 1H2020)
  • Total consolidated assets: 514.8 billion euro (+0.5% vs FY2020)
  • Consolidated equity: 32.3 billion euro (-4.2% vs 31 December 2020), of which 18.7 billion euro pertaining to the Group (-8.3% vs FY2020)

For further details on the operating results, financial position, and cash flows, please refer to next section.

Business performance

CDP S.p.A.

New lending by CDP SpA for Businesses, Infrastructure, the Public Administration and International Cooperation totalled 11.5 billion euro in the first half of the year (+3.9 billion euro vs 1H2020, +50%).

With regard to Businesses, 4.6 billion euro of new lending was granted to support the domestic and international growth of Italian companies. Key operations in the half year included:

  • 1 billion euro of funding to the banking system to provide new loans to SMEs and Mid-Caps;
  • the financing of 20 businesses through alternative finance “basket bond” programmes;
  • 0.5 billion euro of new lending to support the liquidity needs of businesses throughout the Covid-19 emergency;
  • 1.4 billion euro of new lending to support the growth plans of businesses in Italy and abroad.

With regard to Infrastructures, Public Sector & Territorial Development, 6.8 billion euro was invested to finance public entities and infrastructure and to promote territorial development initiatives. Key operations in the half year included:

  • 5.2 billion euro to refinance the debt of Regions, with savings of more than 1.4 billion euro for the Entities concerned;
  • advisory services provided to the Public Sector, with over 80 active projects and around 7 billion euro of approved investments;
  • underwriting of a sustainability-linked loan in the railway sector (share of 0.5 billion euro), with the option to review the financial terms on meeting specific ESG targets;
  • launch of 3 initiatives in support of the energy transition.

With regard to International Cooperation, 0.1 billion euro of new lending was granted to support Developing Countries. Key operations in the half year included:

  • 50 million euro invested in the «REGIO» fund to support projects aimed at combating climate change;
  • the first investment in funds dedicated to the development of renewable energy plants in Sub-Saharan Africa, through investment in the «AREF II» fund;
  • 3 match-making events completed in collaboration with international partners to promote initiatives in Developing Countries;
  • the renewal of the CDP-MEF Agreement on the management of the Revolving Fund for International Cooperation & Development Finance.

In terms of income statement results, CDP SpA reported net income of 1.4 billion euro, slightly up from the first half of the previous financial year (+2%). Specifically:

  • net interest income amounted to 856 million euro, marking a decrease on the first half of 2020, mainly as a result of the all-time low interest rates;
  • dividends totalled 547 million euro, down 25% compared to the first half of 2020, mainly due to the lower dividend paid by ENI;
  • other net revenues amounted to 478 million euro, marking an increase on the first half of 2020, mainly reflecting the interest rate risk management strategies implemented on the securities portfolio.

As regards the balance sheet, total assets amounted to 416 billion euro (+1% on 2020) and mainly included:

  • cash and cash equivalents and other treasury investments, which amounted to 190 billion euro, up 4% from the year-end figure for 2020;
  • loans, which amounted to 113 billion euro, increased by 6% with respect to the balance at the end of 2020, mainly as a result of higher loan volumes granted to Public Entities and Businesses, also in connection with the abovementioned refinancing of regional mortgage loans;
  • debt securities amounted to 67 billion euro, down 9% on the year-end figure for 2020, owing to securities reaching maturity in the half year, only partially offset by purchases in the period, also in light of the significant growth of the loan portfolio;
  • equity investments and funds amounted to 37 billion euro, up 3% on the year-end figure for 2020 as a result of investments in support of investee companies.

Funding stood at 386 billion euro, up 2% from the figure recorded at the end of 2020. Specifically:

  • postal funding amounted to 279 billion euro, up 2% on the year-end figure for 2020 thanks to net inflows in the first half of the year (+2.9 billion euro) and interest accrued by postal savers.
  • funding from banks and customers amounted to 86 billion euro, up 4% on the year-end figure for 2020, mainly as a result of the increase in deposits from subsidiaries and funding arising from treasury operations;
  • bond funding amounted to 20 billion euro, decreasing slightly (-3%) compared to the previous year due to bonds reaching maturity in the period, which more than offset the new 500-million-euro social bond issued to support Italian SMEs and Mid-Caps in Southern Italy.

Equity amounted to 24.5 billion euro, down 4% compared to the year-end figure for 2020 due to changes in earned income and dividends distributed in the first half of the year.
 

CDP Group                                     

New lending by the parent company CDP S.p.A. and the companies subject to management and coordination (the “CDP Group”)2 totalled 11.6 billion euro, an increase on the first half of 2020 (+3.8 billion euro, +50%). These resources were deployed for Businesses, Infrastructure, the Public Administration and International Cooperation.

In addition, the CDP Group's pre-tax net income for the period amounted to 1.2 billion euro, up significantly from 2020 (+33%), largely due to the positive results of the Parent Company.

The CDP Group's half-yearly condensed consolidated financial statements also include companies over which the Parent Company does not exercise management and coordination (including major listed subsidiaries such as SNAM, Terna, Italgas and Fincantieri and associates such as ENI, Poste Italiane, Saipem and WeBuild).

Including the remaining consolidated subsidiaries not subject to management and coordination, the consolidated net income was equal to 1.4 billion euro, compared to a loss of -0.7 billion euro in the first half of 2020. Net income pertaining to the Parent Company amounted to 0.3 billion euro, compared to a loss of 1.4 billion euro in the first half of 2020. This change is mainly due to the higher contribution to the result of companies accounted for using the equity method3.

Total consolidated assets amounted to 514.8 billion euro, up by 0.5% (2.4 billion euro) compared to the figure at 31 December of the previous year.

Total funding stood at 423.9 billion euro, up by 1.6% on the first half of the previous year.

Consolidated equity amounted to 32.3 billion euro, of which 18.7 billion euro refers to the Group’s equity.

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Please note that the Independent Auditors are completing the review of the half-yearly condensed consolidated financial statements at 30 June 2021. The reclassified consolidated financial statements set out in the Annex are not subject to auditing by the Independent Auditors.

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The Manager in charge with preparing the company's financial reports, Pier Francesco Ragni, declares pursuant to Article 154-bis, paragraph 2, of the Consolidated Law on Finance that the accounting information contained in this press release corresponds to documentary evidence and the accounting books and records.

The 2021 Half-yearly Financial Report, together with the certification pursuant to Article 154-bis, paragraph 5, of the Consolidated Law on Finance and the Independent Auditors’ Report will be made available to the public at the Company's registered office, on the CDP website and in any other manner provided for by the applicable law, within the legal time limits.

 

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1 The CDP Group consists of the Parent Company and the subsidiaries subject to management and coordination as described in the consolidated information on Operating segments. The result for the first half of 2020 has been restated for comparability by excluding the SACE Group, which is no longer subject to management and coordination following the publication of Decree Law 23/2020.

2 An overview of the results of CDP S.p.A. and only of those companies subject to management and coordination (the "CDP Group”) is provided in the consolidated operating segments report, prepared in compliance with IFRS8 - Operating segments.

3 The main companies accounted for with the equity method in the consolidated financial statements of the CDP Group are ENI, Poste, Saipem and Webuild.

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