Net profit up 10.6% to € 495 million in the first quarter of 2022; EBIT up strongly in the first quarter of 2022, by 11.8%, to € 694 million, with positive contributions from insurance, financial services, payments and mobile services, and robust performance in the mail, parcels and distribution division. These are the main financial results for the first quarter of 2022 approved by the Board of Directors of Poste Italiane, chaired by Maria Bianca Farina.
CEO’s comments
“Less than two months after updating of the Group’s Strategic Plan, these results represent the first cornerstone of a successful 2022. Our diversified business model continues to produce excellent financial results with net profit at € 495 million and operating profitability improving in all business segments,” commented Poste Italiane CEO Matteo Del Fante, illustrating the financial results for the first quarter of 2022. “The Insurance Services segment makes the largest contribution to Group profits, with positive performance in both life and non-life insurance business. EBIT for Financial Services increased thanks to stable revenues and lower costs,” continued the CEO. “In the Payments and Mobile Services sector, double-digit EBIT growth was driven by the ability to capitalise on positive market trends, as evidenced by the 2 billion transactions handled in 2021 and over half a billion in the first quarter of the year. The EBIT for the Mail, Parcels and Distribution division was solid in the quarter, thanks to cost rationalisation offsetting the impact of normalising parcel volumes, which are structurally above pre-pandemic levels, also following last year’s exceptionally high results due to lockdown measures implemented in most Italian regions. Even with a challenging scenario in the logistics sector, our proven track record in cost rationalisation makes us particularly confident in maintaining full visibility of our 2022 EBIT target for the Mail, Parcels and Distribution division.
Solid performance
Del Fante recalls that “since 2020 we have achieved steady and improving performance: after a strong recovery in 2021, solid growth has continued in the first quarter of the year, paving the way for a successful 2022. This was possible through the hard work of all our people since the beginning of the pandemic, which resulted in an upward structural shift in our growth trajectory. This year,” emphasises the CEO, “we are celebrating 160 years of Poste Italiane, a historic event that demonstrates how our unique assets have always enabled us to overcome challenges and move into the future alongside our communities. We confirm our role as a strategic pillar for Italy, through our omni-channel distribution platform. We continue,” Del Fante concludes, “to meet the changing needs of customers and confirm our ambition to support the development of our country moving forward.”
Increased revenues
Solid financial performance in the first quarter of 2022 paves the way for a successful 2022 for Poste Italiane. Revenues continued to grow, by 1.4%, to € 3.0 billion, with strong performance in all areas of the payments and mobile-services business and in both life and non-life insurance services. Revenues from financial services were stable with a higher net interest income (NII) supported by investments in tax credits and favourable interest rates offsetting the lower contribution from proactive portfolio management. Moreover, solid execution of the “24si plus” plan makes Poste Italiane an anti-fragile player that delivers results despite an uncertain macroeconomic environment. The normalising parcel business, well above pre-pandemic levels, and continued focus on cost rationalisation gives further flexibility to achieve the goals of the “24si plus” plan.
Here are some of the main results for the quarter:
Q1 2022 revenues of € 3.0 billion, +1.4% year on year:
- Mail, parcels and distribution revenues of € 901 million in the first quarter of 2022, -2.0% year on year, with mail revenues unchanged and parcel volumes normalising to levels well above those recorded prior to the pandemic. parcel volumes down from the exceptionally high level achieved in 1Q2021 made possible by lockdown measures.
- Total financial-services revenue of € 1.5 billion in the first quarter of 2022, -1.3% year on year, due to a lower contribution from proactive portfolio management partially offset by the result of investments in tax credits.
- Insurance services revenues of € 529 million in the first quarter of 2022, up +7.1% year on year, due to higher volumes and higher margins. Life insurance net inflows of € 2.6 billion in 1Q2022 (+32% year on year), and non-life gross premiums of € 114 million (+19.5% year on year).
- Revenues from payments and mobile services have contributed to accelerating the growth phase, reaching € 231 million in the first quarter of the year, +20.2% year on year due to significant contributions from all product lines.
Total costs amounted to € 2.3 billion in the first quarter of 2022, down 1.4% year on year, confirming an effective cost rationalisation process. Non-HR costs decreased by 0.2% compared to the first quarter of 2021 to € 952.8 million, while incorporating the impact of inflation.
Solid first quarter 2022 EBIT of € 694 million, +11.8% year on year. First quarter 2022 net profit of € 495 million, +10.6% year on year.
Invested financial assets declined by € 4 billion in the quarter to € 582 billion, with positive net inflows of € 2 billion achieved overall across all products and a negative market effect attributable to higher interest rates affecting life insurance technical reserves.
Solid capital position: Bancoposta’s total capital ratio of 23.9% (CET1 ratio of 21.1%), leverage ratio of 3.1% and solvency II ratio of the insurance group Poste Vita of 272%, well above management goals.
