CDP Group: CDP S.p.a. Draft Separate Financial Statements And Consolidated Financial Statements At 31 December 2017 Approved
Press release

CDP Group: CDP S.p.a. Draft Separate Financial Statements And Consolidated Financial Statements At 31 December 2017 Approved

2017 RESULTS SHOW STRONG PERFORMANCE, IN LINE WITH THE PLAN’S AMBITIONS

  • The Group’s new lending reached € 33.7 billion in 2017, up by around 20% on 2016, for a total of € 58 billion in investments activated1, fully in line with the Business Plan.
  • Sharp increase in economic results in 2017 compared to the previous year and without any non-recurring items. Net income for CDP S.p.A. is € 2.2 billion (approximately + 33% on 2016), while consolidated net income is € 4.5 billion (€ 1.2 billion in 2016), of which € 2.9 billion pertaining to the Parent Company (€ 0.22 billion in 2016).
  • Improved capital strength. CDP S.p.A.'s equity3 is equal to € 24.4 billion (+ 1.2 billion on 2016), while consolidated equity3 is equal to € 35.9 billion (+ € 0.1 billion on 2016), of which € 23.1 billion pertaining to the Group (+ € 0.4 billion on 2016).

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1 Including new lending by third parties
2 The 2016 consolidated balance sheet and income statement figures were subject to restatement
3 The consolidated equity is equal to €35.9 billion, of which €23.1 billion pertaining to the Group and €12.8 billion pertaining to Non-controlling Interests

 


Milan, 28 March 2018 h 12:15 pm - The Board of Directors of Cassa depositi e prestiti S.p.A. (CDP) approved today the draft separate financial statements and the consolidated financial statements at 31 December 2017, as well as the 2017 consolidated non-financial statement of the CDP Group pursuant to Legislative Decree no. 254/2016. The draft financial statements shall be submitted for the approval to the Shareholders’ Meeting convened on 23 May 2018 and on 20 June 2018, respectively on first and second call (instead of on 16 May 2018 as previously announced).


NEW LENDING IN 2017 AND PROGRESS OF THE BUSINESS PLAN

New lending by the CDP Group
The results for 2017 confirmed the key development role of the CDP Group in support of the Italian economy. New lending managed by the Group amounted to about € 33.7 billion, for a total of € 58 billion in overall investments activated (with a multiple of 1.7x), mainly through financing, investments and guarantees. The volume of new lending increased by around 20% compared with the previous financial year and was fully in line with the target progress set in the 2016-2020 Business Plan. New lending was allocated as follows:

 

  • € 15.9 billion to the international expansion of Italian companies (+ 12% on 2016; € 17.7 billion in investments activated);
  • € 11.2 billion to enterprises (+ 29% on 2016; € 26.2 billion in investments activated);
  • € 6.3 billion to Public Entities and infrastructure (+19% on 2016 – of which +89% referred only to the infrastructure segment; € 13.9 billion in investments activated);
  • € 0.3 billion to the real estate sector (+ 43% on 2016; € 0.3 billion in investments activated).


New lending by the Parent Company CDP S.p.A.
The contribution of the Parent Company CDP S.p.A. alone to new lending managed accounted for almost € 19 billion, up by over 21% compared to 2016, with over € 41.5 billion in investments activated (with a multiple of 2.2x). Resources were mainly directed towards the drivers of Italy’s economic development. Indeed, CDP has confirmed its key position in support of:

 

  • the local areas, by funding Public Entities and works in infrastructure, the transport and telecommunications sectors (€ 6.3 billion);
  • the enterprises, by funding innovation and supporting the national production system, including in the areas affected by natural disasters, thus contributing to the economic recovery (€ 9 billion);
  • the international expansion of companies, by promoting Italian exports (€ 3.4 billion);
  • the real estate sector, by promoting social and smart housing, developing state-owned properties and the tourist sector, while also implementing a strategy involving reorganisation measures aimed at redeveloping and disposing of properties (€ 0.2 billion).

 

2017 FINANCIAL RESULTS

Parent Company CDP S.p.A.

  • Net income was approximately € 2.2 billion, without any non-recurring items, confirming the trend of strong growth that has begun in 2015 (+ 33% on 2016; + 147% on 2015). Impacting positively on performance was the increase in net interest income, along with the lower costs for risks, both in relation to loans and equity investments.
  • Net interest income stood at around € 3.0 billion, significantly up compared to the previous financial year (+ 25%), despite market rates remaining at unfavourable levels. The increase in net interest income was achieved thanks to the improved return on interest-bearing assets, as well as the drop in the cost of liabilities, as a result of the active ALM and Treasury activities.

Economic performance also made it possible to strengthen the capital base of certain CDP subsidiaries, increasing the profit not distributed to the Parent Company. This caused a drop in the dividends received in 2017, which amounted to € 1.4 billion (€ 1.6 billion in 2016).
Assets totalled around € 367.3 billion, marking a 2.7% increase on the previous year:

  • cash and cash equivalents reached € 175.3 billion (approximately + 8.3% on 2016), thanks to higher short-term investments;
  • the stock of loans to customers and banks reached € 101.8 billion. This amount reached € 123.1 billion (+ 1.7% compared to 2016), including the commitments to disburse funds as a result of the new agreements signed in the fields of infrastructure, enterprises and international expansion;
  • the portfolio of debt securities stood at € 48 billion, slightly down from 2016 (- 1.9%), with a concurrent reduction in the average maturity of securities;
  • equity investments and equity securities reached € 32.3 billion, slightly down on the previous period (- 0.8%), mainly due to the rationalisation of some subsidiaries.

As regards liabilities:

  • total funding increased compared to 2016 and amounted to € 340.5 billion (+ 2.6%). Postal funding showed increased to € 252.8 billion (+0.8% on 2016). Bond funding increased significantly compared to 2016, reaching € 17.5 billion (+ 51.6%), thanks to the efficient diversification of funding sources, in line with the Plan’s targets (DIP programme issues, Social Bonds, etc.). There was a slight increase also in other funding, amounting to € 70.3 billion (+ 1.1% on 2016).
  • equity continued to strengthen, reaching € 24.4 billion (+ 1.2 billion on 2016).

CDP Group

  • Group net income grew significantly, reaching € 4.5 billion (€ 1.2 billion in 2016), thanks to the significant contribution from the Parent Company's result and the contributions from the subsidiaries. Net income pertaining to the Parent Company stood at € 2.9 billion, compared to € 0.2 billion in 2016.Net interest income amounted to€ 2.8 billion (+ 31% on 2016).

The consolidated financial statements closed with total assets slightly up on the previous financial year, amounting to € 420 billion (+ 2.2%). Cash and cash equivalents reached € 178.8 billion (+ 8.1% on 2016).
Consolidated equity strengthened further to € 35.9 billion (€ 35.8 billion in 2016), of which € 23.1 billion pertaining to the Group (+ € 0.4 billion compared to 2016).

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