Poste Italiane Q2 & H1 2023 Financial ResultsYesterday, the Board of Directors of Poste Italiane S.p.A. (“Poste Italiane” or the “Group”), chaired by Silvia Maria Rovere, approved the first half 2023 Financial Results.

ROBUST NET PROFIT, UP 22% TO €601M IN Q2-23 (+16% Y/Y TO €1.1BN IN H1-23), BENEFITTING FROM A DIVERSIFIED BUSINESS MODEL

STRONG Q2-23 OPERATING PROFIT, UP 9.9%, REACHING €799M (+10.6% Y/Y TO €1.6BN IN H1-23), WITH POSITIVE CONTRIBUTIONS FROM MAIL, PARCEL & DISTRIBUTION, FINANCIAL SERVICES, PAYMENTS & MOBILE

INSURANCE SERVICES CONTINUE TO ACHIEVE VOLUMES’ GROWTH, OUTPERFORMING A CHALLENGING MARKET

SOLID FINANCIAL PERFORMANCE IN Q2-23 WITH RESULTS AHEAD OF GUIDANCE AND CONFIRMED COST DISCIPLINE MITIGATING INFLATIONARY PRESSURES

IMPRESSIVE REVENUE GROWTH OF 8.5% TO €3.0BN IN Q2-23, PROVING RESILIENCE IN DIFFERENT MARKET CONDITIONS

MAIL, PARCEL AND DISTRIBUTION UNDERLYING REVENUES RESILIENT WITH POSITIVE OPERATING PROFIT

FINANCIAL SERVICES REVENUES UP 5% IN THE QUARTER WITH HIGHER NET INTEREST INCOME (NII) SUPPORTED BY INCREASING RETAIL DEPOSITS

Q2-23 STEADY NET INFLOWS IN LIFE, WITH RESILIENTLY LOW LAPSE RATE

HIGHER GWP ACROSS ALL PRODUCT LINES - NET INSURANCE ACQUISITION CONTRIBUTING TO SCALE-UP OUR PROTECTION BUSINESS

PAYMENTS & MOBILE REVENUES UP 49% IN THE QUARTER, UNIQUELY CAPTURING GROWTH MOMENTUM ACROSS ALL BUSINESS LINES AND BENEFITTING FROM THE LIS CONSOLIDATION
 

• 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 COSTS¹, 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 PRODUCTS².

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%.


POSTE ITALIANE CONFIRMS ITS SUSTAINABLE GROWTH PATH BENEFITTING ALL STAKEHOLDERS
THE CONSTANT COMMITMENT TO ENGAGE AND RAISE AWARENESS AMONG OUR PEOPLE IS KEY TO ACHIEVING OUR SOCIAL AND ENVIRONMENTAL OBJECTIVES LAID OUT IN THE GROUP'S STRATEGY
KEY ACHIEVEMENTS IN THE QUARTER:

• Poste Italiane confirms its leading position in the MIB® ESG index by Euronext and Borsa Italiana, dedicated to blue-chip companies listed in Italy that display best practices in environmental, social and corporate governance (ESG). Poste reaffirms its leadership in the ESG GLOBAL SCORE achieving the highest score in the social and governance areas, based on the evaluation by Vigeo Eiris, a Moody's ESG Solutions company. Our leadership in this index confirms once again the validity and centrality of our sustainability strategy.
• Poste Italiane is among the top three companies in the Integrated Governance Index (IGI) 2023 ranking, the quantitative index based on a questionnaire addressed to approximately 100 listed and unlisted companies, measuring the degree of integration of ESG factors in corporate strategies.
• Poste Italiane is among the national excellences according to the trust 2023 research. Lundquist's analysis of over 200 companies has focused on their ability to communicate with transparency and effectiveness vision, sustainability commitments, investments in innovation, leadership on key issues, as well as the ability to attract talent.
• Launched in June, the new "Faccio bene" volunteer campaign, in collaboration with accredited Third Sector Entities (TSEs) and implementing the agreement signed with the National Third Sector Forum in February 2022. Employees who choose to join the volunteer community will participate outside of working hours in projects dedicated to education, the environment and health, contributing to the creation of value for the country.
• Progressing the green transition, with initiatives focused on reducing environmental impacts resulting from production activities and promoting environmental awareness. At the end of June, the number of low-emission vehicles was approximately 24,500 (of which c.4,800 electric), c.1,880 buildings were involved in the Smart Building project and the proportion of eco-friendly cards in the total number of payment cards issued rose to 27% (vs. 9% in Q2-22). In addition, the "Green Talk" was held this month, an educational initiative for around 12,000 managers committed to spreading energy-conscious behavior within the Group.

Confirmed strong investment portfolio’s ESG score. BancoPosta Fondi SGR and Poste Vita portfolios recorded ESG and carbon footprint performances stronger than reference benchmarks, confirming the high-quality level of Group’s sustainability investment strategy.


 

Rome, 25 July 2023. Yesterday, the Board of Directors of Poste Italiane S.p.A. (“Poste Italiane” or the “Group”), chaired by Silvia Maria Rovere, approved the first half 2023 Financial Results.

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."

To see the press release in full version download pdf
 

¹Before the application of IFRS 17.
²Includes net flows into Mutual Funds, Moneyfarm, Postal Bonds, Insurance reserves, and Assets under Custody.

POSTE ITALIANE Q2 & H1 2023 Results

Tuesday 25 July 2023 - 10:30 CEST

 

To attend click here: Poste Italiane Q2 & H1 2023 Results Webcast

 

A listen only audio conference is also available: +39 02 8020927          

 

For further information:
 
Poste Italiane S.p.A. Investor Relations         Poste Italiane S.p.A. Media Relations
Tel. +39 06 5958 4716                                           Tel. +39 06 5958 2097
Mail: investor.relations@posteitaliane.it             Mail: ufficiostampa@posteitaliane.it