del fante

Poste Italiane Q2 & H1 2023 Financial Results:

  • revenues for the period equal to €3.0bn, increasing by 8.5% compared to €2.8 billion in the second quarter of 2022 (+8.3% y/y to €6.1bn in h1-23):
  • q2-23 mail, parcel & distribution revenues rose markedly by 10.9% to €1.0bn (+5.0% y/y to €1.9bn in h1-23), thanks to the positive evolution of b2c volumes and mail repricing actions compensating volumes decline
  • q2-23 financial services gross revenues up from €1.4bn to €1.5bn, +5.4% y/y (+7.4% y/y to €3.1bn in h1-23), mainly as a result of higher net interest income, up 29.1% y/y, and positive underlying evolution across all business lines.
  • insurance services revenues totalled €379m in the second quarter of 2023, decreasing by 10.5% y/y compared to a strong previous year’s level of €423m (-3.0% y/y to €772m in     h1-23), due to a non-recurring contribution related to interest rates dynamics. in q2-23 life net inflows at €1.1bn (-20.7% y/y) in a negative market scenario. q2-23 total gwp at €4.6bn, increasing by 6.1% over the previous year’s level of €4.3bn (+14.7% y/y to €10.8bn in h1-23).
  • q2-23 payments & mobile revenues to €374m, +49.4% y/y (+48.8% y/y to €717m in h1-23) driven by solid contributions from all product lines, lis consolidation and the new energy offer.
  • q2-23 total costs to €2.2bn, +8.0% y/y (+7.5% y/y to €4.5bn in h1-23). cost discipline confirmed while supporting business growth and with a limited impact from inflation. q2-23 ordinary hr costs , including m&a, to €1.3bn, up 4.4% y/y (+3.3% y/y to €2.7bn in h1-23), with continued fte reduction partially offsetting the planned salary increase. q2-23 non-hr costs1 to €1.0bn, up 13.9% y/y (+15.0% y/y to €2.0bn in h1-23), while embedding m&a effect.
  • ebit for the period equal to €799m, +9.9% y/y (+10.6% y/y to a record high level of €1.6bn in h1-23).
  • q2-23 net profit came to €601m, +22.1% y/y (+15.7% y/y to €1.1bn in h1-23).
  • tfas up €4bn for the year to €580bn with positive net inflows of €0.8bn in h1-23 on savings and investment products.
  • strong capital position: bancoposta total capital ratio at 23.5% (of which cet1 ratio at 20.0%), leverage ratio at 3.2% and poste vita group solvency ii ratio up to 274%.

 

Matteo Del Fante, Poste Italiane Chief Executive Officer and General Manager commented: “We are pleased to announce another set of robust results. Once again, we have delivered a solid quarter and ended the first half of the year on a highly positive note, with substantial growth in revenues and profitability compared to the corresponding period in 2022. Group EBIT is up 11% to €1.6 billion and has reached again a record level for the first half of the year, demonstrating our continued success and strong performance in all our businesses.
Thanks to our diversified, resilient and sustainable business model, we are proactively adapting to the changing macro scenario, steadily progressing on our path for sustainable and profitable growth. Our customers continue to consistently choose Poste Italiane as the safe harbour for their financial products, aiming to limit their exposure to market risk and volatility, with over 92% of our Total Financial Assets shielded from market turbulence. Continued positive inflows in net savings and investment products confirm the trust placed in Poste Italiane, with flows outperforming a challenging market environment.
We continue to pursue rigorous cost discipline, allowing us to mitigate inflationary pressures, enhance operating profit growth as well as giving us a strong confidence in our 2023 guidance visibility.
In Mail, Parcel & Distribution revenues remain resilient thanks to repricing actions and a favourable product mix in mail, increasing parcel volumes and supportive commercial trends in distribution revenues.
In Financial Services we achieved higher recurring revenues across all business lines.
In Insurance Services we experienced steady positive net inflows in a negative market and a resiliently low lapse rate, well below market level. P&C was up and is now benefitting from the acquisition of Net Insurance which allows us to accelerate the protection business.
Payments and Mobile continues on its impressive revenue growth path thanks to positive results in all business lines and the consolidation of LIS, becoming the first contributor to Group top line growth. The PosteEnergia offer is up and running and has now reached around 300 thousand contracts signed to date.
Our balance sheet remains rock solid with net financial position improving year-on-year and solid capital ratios, providing us with flexibility on our shareholders’ remuneration going forward. We are working on our new strategic plan, which we will unveil over the coming months, so that we have all growth drivers in place for the coming years. There will be a focus on our logistic business restructuring and the renewal of our service model putting the customer at the centre.
We are transforming the company into a customer-focused, digital-first, operationally efficient business with a clear path for profitable growth.
I continue to see a bright future for Poste Italiane, thanks to our investments aimed at further improving our capabilities across technology, products, people: we are uniquely positioned to capture opportunities ahead, across all our businesses.
I am grateful to all of our employees who every day, with their work, create the conditions for Poste Italiane to be at the core of Italians’ daily needs and our Country’s development, in increasingly innovative ways.”