CDP: the Consolidated Half-Yearly Financial Report at 30 June 2023 has been approved

CDP SpA's net income at approximately 1.9 billion euro: an increase of 28% compared to the first half of 2022 (1.5 billion). Equity also up by 3%, amounting to 26.5 billion

Consolidated net income amounted to 2.8 billion euro in the first six months of the year

The CDP Group has deployed resources amounting to 11.5 billion euro that enabled total investments for 32.4 billion, generating a leverage effect of over 2.8 times the deployed resources, also through the attraction of additional capital

In line with the 2022-2024 Strategic Plan, the Board of Directors approved the Group’s first half-yearly non-financial report

Rome, 1 August 2023 h.15:01 - Today 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 2023, as presented by the Chief Executive Officer and General Manager Dario Scannapieco.

The Board also approved new operations for over 300 million, including loans and investments to support local communities and enterprises and the development of international cooperation.

In line with the 2022-2024 Strategic Plan, the Group’s first half-yearly non-financial report was also approved.

Financial highlights and activities of the half-year

In keeping with its role as a Promotional and Development Institution, in the first half of the year the CDP Group deployed resources totalling about 11.5 billion euro[1]. This figure is in line with that for the first half of 2022, which, however, included one-off transactions for a significant amount[2].

Excluding these transactions, growth over the first half of last year would be of about 120%.

The Group stepped up its focus on high-impact loans for the Country. Indeed, its activities enabled investments totalling 32.4 billion euro, with a leverage effect of 2.8 times the resources deployed during the period.

In keeping with the Strategic Plan, support to general government entities increased, also within the framework of the National Recovery and Resilience Plan (NRRP), with advisory activities and management of public, national and European, funds to ensure their use in compliance with the established deadlines. As at 30 June 2023, CDP has signed 14 Action Plans[3], for a value of supported initiatives of about 48 billion, and has allocated about 220 million euro to the implementation of public interest projects related to the funds managed.

CDP’s stock of loans grew to 121 billion euro (120 billion at the end of 2022), with total assets standing at 394 billion, slightly down from the figure at the end of 2022 (401 billion).

As for income statement results, CDP SpA's net income amounted to approximately 1.9 billion euro, up by 416 million (+28%) on the same period of the previous year. This result was achieved thanks to the growth in net interest income and dividends. Consolidated net income was 2.8 billion euro (3.7 billion in the first half of 2022), a decrease attributable to the result of some investees that had benefited from extremely positive results in the first half of 2022.

Other significant initiatives include: the approval of the Group’s first half-yearly non-financial report, the placement of the first Green Bond and the issuance of CDP’s first bond denominated in dollars (“Yankee Bond”). In addition, the new representative office in Brussels was opened, which will make it possible to consolidate bilateral relations with European institutions and companies and facilitate system initiatives targeting key issues for Italy in the area of sustainable development.

CDP SpA

Resources deployed: 11.0 billion euro (11.3 billion in the first half of 2022)
Net income: 1.9 billion euro (1.5 billion in the first half of 2022)
Total assets: 394 billion euro (401 billion at the end of 2022)
Loans: 121 billion euro (120 billion at the end of 2022)
Total funding: 363 billion euro (371 billion at the end of 2022)
Equity: 26.5 billion euro (25.7 billion at the end of 2022)

CDP Group

Resources deployed: 11.5 billion euro (11.5 billion in the first half of 2022)
CDP Group earnings before tax: 1.2 billion euro (1.1 billion in the first half of 2022)
Consolidated net income: 2.8 billion euro (3.7 billion in the first half of 2022)
Consolidated net income pertaining to the Parent Company CDP SpA: 1.8 billion euro (2.8 billion in the first half of 2022)
Total consolidated assets: 469 billion euro (478 billion at the end of 2022)
Consolidated equity: 40.2 billion euro (39.4 billion at the end of 2022)
 

For further details on the financial highlights, please refer to the following paragraphs.

“Despite the extent of the shocks to the global scenario in the last few years, in a context marked by signs of a slowdown in growth, the Italian economy has stayed resilient overall”, commented Giovanni Gorno Tempini, Chairman of Cassa Depositi and Prestiti. “In this framework, our results show that Cassa Depositi e Prestiti has been able to seize the challenges of a world that is changing, confirming our robust commitment to sustainable and inclusive development. These figures lay the foundations for CDP to boost its role as the driving force behind the Country’s economy and as an institution that is increasingly closer to the needs of local communities and people”.
 

“The data for the first 18 months of our Strategic Plan demonstrate the quality of the choices made and their effectiveness” Dario Scannapieco, Chief Executive Officer and General Manager of Cassa Depositi e Prestiti noted. “The 11.5 billion of resources deployed, up considerably over the first six months of 2022, and the 32.4 billion euro of total investments enabled, have allowed us to reach a turning point in the Plan, as we have exceeded 60% of the targets set for the 2022-2024 period. Our work has also led us to have an increasingly international dimension - as reflected by our debut on the US bond market and the inauguration of new offices in Brussels. Today we can fully embrace our role and shape a journey of growth for our country, which is shared with other players of the global scenario”.

Operating and financial results and activities of the half-year

CDP Group’s activities

In the first half of the year, the CDP Group deployed resources for approximately 11.5 billion euro, up considerably over the first half of 2022[4], which included one-off transactions for a significant amount. There are six lines of action: Infrastructure, Public Administration, Enterprises and financial institutions, International Cooperation and Development finance, Equity, and Real Estate.

• As for initiatives relating to Infrastructure, approximately 2.8 billion euro were deployed. The most significant operations include the 375-million-euro loan to the concession holder Società Autostrade Alto Adriatico, to boost the economy of the local area and make a motorway network strategic for connections with Europe safer, as well as support for the Palermo-Catania high-speed railway line.

• Approximately 740 million euro were deployed for the Public Administration. The most significant operations include the launch of the new “Prestito Investimenti Green” product, with a dedicated 200 million fund, 50% financed with EIB resources, and aimed at encouraging sustainable investments in the public administration sector, as well as the renegotiation of loans and postponement of instalments due, in support of over 1,000 public entities^[5].

• As regards Enterprises and financial institutions, approximately 7.1 billion euro were deployed, of which 3.8 billion relating to indirect support via the banking system, and the remainder for direct operations and alternative finance. In particular, with reference to the indirect channel, a one-billion fund was granted to Intesa Sanpaolo, for the growth of Italian SMEs and Mid-Caps. With reference to the direct channel, the number of transactions concluded went up by 30% compared to the first half of 2022, with total resources earmarked for 3.3 billion. Lastly, as regards alternative finance, the Basket Bond Programme with Medio Credito Centrale - Banca del Mezzogiorno and Banca Sella to support the ESG investments of Italian SMEs and Mid-Caps was expanded by 100 million.

• With respect to International Cooperation and Development Finance, 87 million euro were deployed. In particular, CDP’s first international advisory programme for young entrepreneurs in Senegal was completed and activities to promote initiatives with own resources through commitments made for approximately 50 million towards investments supporting the water and agro-industrial sectors in Ethiopia continued.

• With regard to Equity, approximately 738 million euro were deployed. The various initiatives targeting investments and support for the existing equity investment portfolio include the investments in favour of Italian businesses in sectors of excellence such as Italian manufacturing, life sciences & healthcare, industrial technologies and products, IT, digital and tourism 4.0, also through Fondo Italiano di Investimento SGR, as well as support for the new GreenIT business plan, to promote the national energy transaction and encourage the gradual decarbonisation of the electricity sector.

• 87 million euro were deployed in the Real Estate sector. Main activities include the construction of over 600 social housing units and beds through initiatives supporting private social housing by funds invested by Fondo Investimenti per l’Abitare, as well as the start of the first initiative of Fondo iGeneration (in which Fondo Nazionale dell’Abitare Sociale, managed by CDP Real Asset SGR, has a stake) to convert a property in Naples into a 500-bed university hall of residence.

With regard to technical advisory services and management of third-party funds, during the first half of the year the CDP Group continued its support for the Public Administration, as regards its advisory services and management of mandates on public funds. In particular, with reference to advisory services, support continued for general government entities with projects as part of the National Recovery and Resilience Plan (NRRP), and new memorandums of understanding (MoU) were signed for the InvestEU programme, including the MoU with the Municipality of Rome, followed by similar MoUs with Naples, Milan and Lombardia region. With reference to the management of public funds, the Group continued its activities to manage mandates for approximately 290 million of resources supporting the Public Administration, mainly for the NRRP, and also for developing countries through the Revolving Fund for International Cooperation & Development Finance.

In line with the 2022-2024 Strategic Plan, CDP approved the Stakeholder Grievance Mechanism policy, with guidelines on managing grievances from civil society in the context of International Cooperation. In addition, the model to classify operations and transactions in relation to sectoral strategic guidelines for the direct corporate and Public Administration areas was consolidated, and an extension to the equity and indirect lending areas has been planned. Lastly, activities began to gather the main impact indicators for operations supporting the Public Administration.

Financial results

CDP SpA

In terms of income statement results, CDP SpA reported net income of 1.9 billion euro, up by 416 million (+28%) on the first half of the previous financial year. More specifically:

1. net interest income, amounting to 1.1 billion euro, was up by 242 million compared to the first half of 2022, due to the improvement in the spread between interest-bearing assets and liabilities, also thanks to the alignment of the return on liquidity with changed market conditions and the asset-liability management actions undertaken;
2. dividends equal to 1.2 billion euro, increased by 301 million compared to the first half of 2022, mainly due to the greater contribution from Fintecna and CDP Equity;
3. other net revenues, amounting to 0.1 billion euro, were down by 109 million compared to the first half of 2022, mainly due to the impact of the trend of interest rates on profits (losses) on trading activities;
4. the cost of risk, at 0.1 billion euro, improved compared to the first half of 2022, thanks to positive changes in the fair value of investment funds held in the portfolio;
5. the cost/income ratio, stable at very low levels, at 6%, in line with the first half of 2022.

As regards the balance sheet, total assets amounted to 394 billion euro (-2% on 2022) and mainly included:

1. cash and cash equivalents and other treasury investments equal to 152 billion euro, down by 9% compared to the end of 2022 (167 billion euro), following the increase in the securities portfolio and reduction in short-term funding, implemented with an asset-liability management logic, given the new interest rates scenario;
2. loans, amounting to 121 billion euro, up by 1% compared to the balance at the end of 2022 (120 billion), especially due to direct and indirect loans to businesses;
3. securities, equal to 75 billion euro, up by 12% on the 2022 year-end figure (67 billion), as a result of purchases of Government bonds in the half-year period;
4. equity investments and funds, amounting to 38.2 billion euro, up by 1% on the 2022 year-end figure (37.7 billion), mainly as a result of investment fund activities.

Funding stood at 363 billion euro, down 2% on the 2022 year-end figure (371 billion). Specifically:

1. postal funding amounted to 282 billion euro, in line with the end of 2022 (281 billion), due to CDP’s net funding and interest accrued by savers;
2. funding from banks and customers, amounting to 63.8 billion euro, was down by 12% compared to the 2022 year-end figure (72.8 billion), above all due to the reduction in short-term funding on the money market, implemented with an asset-liability management logic, given the new interest rates scenario;
3. bond funding, amounting to 17.8 billion euro, was up by 3% compared to the end of 2022 (17.3 billion) as a result of new bond issues in the half-year period, including the first Green Bond, for a total of 500 million euro, and the first issue in dollars (“Yankee Bond”), for a total of 1 billion dollars.

Equity, amounting to 26.5 billion euro, was up by 3% compared to the end of 2022 (25.7 billion), mainly due to the profit accrued in the half-year period, partially offset by distributed dividends.

CDP Group

The CDP Group's earnings before tax^[6] came to 1.2 billion euro, up slightly from the first half of 2022 (1.1 billion).

The half-yearly condensed consolidated financial statements^[7] 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, WeBuild and Nexi).

Consolidated net income amounted to 2.8 billion euro, recording a decrease with respect to the comparative period (3.7 billion), attributable to the lower contribution from ENI (-1.3 billion compared to the first half of 2022). The net income pertaining to the Parent Company was 1.8 billion euro (2.8 billion in the first half of 2022).

Total consolidated assets amounted to 469 billion euro, down by approximately 1.9% (478 billion) compared to the end of the previous year.

Total funding amounted to 401 billion euro, down by 1.3% compared to the end of 2022 (406 billion). The item mainly includes the Parent Company's postal funding, funding from banks, and bond issues mainly attributable to CDP and the Terna, Snam and Italgas groups.

Consolidated equity, amounting to 40.2 billion euro, increased by 0.8 billion compared to the end of the previous year (39.4 billion) due to the increase associated with the net income for the first half of the year, partially offset by the decrease due to the distribution of dividends.

The first 2023 half-yearly non-financial report

The Board of Directors also approved the first half-yearly non-financial report, a voluntary disclosure which presents the Group’s main sustainability performance and initiatives in the first six months of the current year.

Of the 11.5 billion euro deployed from January 2023 onwards, 71% (approximately 8.2 billion) has been allocated to the 4 challenges and 10 areas of action identified by the 2022-2024 Strategic Plan. In particular, the report focuses on initiatives:

• promoting inclusive and sustainable growth, with over 405 million supporting more than 600 social infrastructures, including social housing projects in favour of 228 social housing units and 644 beneficiaries, as well as building work projects for 139 schools and for 235 healthcare facilities;
• offsetting climate change and protecting the ecosystem, with over 1.6 billion euro earmarked, among others, for the energy transition projects of companies and local authorities and the start-up of the “Green Loan” scheme for local environmental works. In addition, 76% of the electricity of CDP sites is from renewable sources;
• fostering digitalisation and innovation in Italy, with a commitment of nearly 1.2 billion euro, continuing to accompany the technological innovation of businesses (in particular SMEs and start-ups) and the Public Administration;
• contributing to re-thinking the value chain, with approximately 5 billion euro dedicated to initiatives for strategic, transport and logistic node segments, as well as initiatives for Cooperation and Development finance. 

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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 2023. 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, Fabio Massoli, 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 2023 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.