Sella Group: Positive 2022 results, growth in all business sectors

The Sella group ended 2022 with very positive results and further growth. The good results covered all business sectors and confirmed the effectiveness of the strategy based on a diversified business model focused on the quality of personal relationships, technological and digital innovation and the promotion of an open financial ecosystem to provide effective responses to customers’ needs and have a positive impact on both the economy and society.

In such an uncertain and complex external scenario – due to international tensions, inflationary pressures and the dynamics of interest rates – the group, thanks to the correct management of risk profiles, achieved its best ever net banking income result, with growth in almost all components. , at the same time as it strengthens the solvency. As testimony to the confidence of the customers, their overall numbers increased and their market shares grew further. Below are the main results for the year.

Results as of 31 December 2022, approved by the boards of the parent company Banca Sella Holding, the company that issues financial instruments broadly distributed among the public Banca Sella and the other group companies, ended with a total net result of € 91.9 million. The result is up, compared to € 56 million in the same period the previous year, net of non-recurring items. In 2021, due to the gain achieved from the strategic joint venture transaction in Hype with illimity bank, the net profit totaled € 108.3 million.

Net banking income increased by € 130.1 million (+17.9%) more € 857.9 million. In detail, net interest income increased by 42.6% more € 358.6 million, as a result of both the sales component and the positive effect of inflation-indexed securities. Net income from services increased by 4.7% to € 406.7 million. Net profit from financial operations increased by 5.2% more € 92.6 million, due to positive results from proprietary trading and the sale of tax receivables.

Global inflows to market value amounted to € 48.7 billion, down 1.1% due to the market downturn, which led to a € 4.1 billion decrease in the value of securities prices. Against this backdrop, customer confidence led to an excellent net insight result of € NOK 3.75 billion. Direct supply grew by 4.9% more

€ NOK 16.7 billion. Loans to support the activities of households and businesses grew by 8.5% to 10.6 billion euros.

Traditional and new business sectors

All sectors the group engages in and the good balance between sources of income as a result of the growth and development strategy contributed to the good results for 2022. Finance and investment banking in particular increased their margins by 37%. Net inflows in advisory and asset management grew by €1.6 billion with assets under management of €21.2 billion. Income from investment services amounted to €180 million, slightly down (-2%), despite the strong tensions in the financial markets.

The growth in payment systems was significant: total transaction volumes related to the purchase and issuance of services increased by 29%, with an 18.8% increase in net banking income to €120 million. These volumes are also a result of the increase in POS (+36%) and e-commerce (+11%) transactions.

Revenue from new businesses, which started in 2018 as part of the strategic plans of the group, increased by 3.6% to €73.3 million, mainly due to open payment and platform services, corporate and investment banking services and technology solutions delivered to third party companies.

The total number of customers in the group increased further by 7% to €1.2 million, net of Hype, including the increase of 9% to €2.8 million.

Investments in support of the strategic plan amounted to €82 million, net of the real estate component. In order to effectively support the several development measures and the increase in staffing, operating costs increased by 12.4%. Despite these large investments, the cost-to-income ratio improved and fell to 71.6% (it was 75.2%).

The group confirmed its high capital strength, well above the required standards. The Cet1 ratio was 13.21% and the total capital ratio of 15.12% (they were 12.28% and 14.19%).