CDP: The Consolidated Half-Yearly Financial Report at 30 June 2024 has been approved

In the first six months of 2024, the CDP Group deployed resources amounting to 11.8 billion euro, an increase of 2.6% compared to the same period in 2023 (11.5 billion euro)

Investments enabled rose by 2.8% to 33.3 billion euro (32.4 in the first half of 2023), with a leverage effect of 2.8 times the resources deployed, also through the attraction of additional capital

Loans to companies, Public Administration, infrastructure, and international cooperation amount to 126 billion euro (+2% compared to the end of 2023)

Total funding is equal to 356 billion euro, of which postal savings amount to 287 billion euro and bond funding amounts to 20 billion euro (+1% and +7% respectively compared to the end of the previous year)

CDP SpA net income amounts to 1.8 billion euro, compared to 1.9 billion euro in the same period of 2023, during which the contribution of the Group companies' dividends was greater

In the half-year, consolidated net income is equal to 3.3 billion euro, up compared to the same period of the previous year (2.8 billion euro)
 

 Rome, 1 August 2024 h. 15:29 - Today the Board of Directors of Cassa Depositi e Prestiti SpA (CDP), chaired by Giovanni Gorno Tempini, approved the Consolidated Half-yearly Financial Report as at 30 June 2024, as presented by the Chief Executive Officer and General Manager Dario Scannapieco.
 

Financial highlights and activities of the half-year

The CDP Group¹ deployed resources amounting to approximately 11.8 billion euro in the first half of 2024, up by 2.6% compared to 11.5 billion euro in the first six months of 2023, upholding the focus on high-impact loans for the country: the Group's activities enabled total investments amounting to 33.3 billion euro, up by 2.8% compared to 32.4 billion euro in the same period of the previous year, with a leverage effect of 2.8 times the resources deployed in the half-year also through the attraction of additional capital.

CDP's stock of loans to support companies, Public Administration, infrastructure and international cooperation amounts to 126 billion euro, up compared with the figure at the end of the previous financial year (+2%) and going against the market trend in Italy².

Total funding amounts to 356 billion euro, of which 287 billion euro related to postal savings, up 1% compared to the end of 2023 (285 billion euro). At the same time, bond funding amounts to 20 billion euro, an increase of 7% compared to the end of the previous financial year, also through the placement of the second dollar-denominated bond issue ("Yankee Bond") and the tenth ESG Bond of CDP.

CDP SpA equity, amounting to 28 billion euro, is slightly up compared to 2023 (27.9 billion euro).

CDP SpA net income is equal to 1.8 billion euro, down 0.1 billion compared to the same period of the previous year, mainly due to the lower contribution in terms of dividends by the Group companies. The earnings before tax for the first half of 2024 is equal to 2.3 billion euro, in line with that for 2023³.

Consolidated net income amounts to 3.3 billion euro (2.8 billion in the first half of 2023), up by 0.5 billion euro.

Support for Public Administrations is strengthened, also in the context of the implementation of the National Recovery and Resilience Plan (NRRP) and the InvestEU programme, with advisory activities and management of public, national, and European funds. In particular, the technical assistance activity of CDP in support of the Ministry of University and Research for the promotion of student housing financed through the NRRP resources is highlighted. As at 30 June 2024, CDP signed 15 Activity Plans⁴ with central government entities and started supporting the Regions in the management of the European Structural Funds.

Other relevant initiatives include: the consolidation of the policy to strengthen CDP's international role with the opening of the first venues outside the EU (Belgrade, Cairo, and Rabat), in order to ensure the sustainable growth of companies in emerging economies; the start of CDP's full operation as resource manager of the Italian Climate Fund and other activities under the Mattei Plan; the conclusion of a process that led Cassa Depositi e Prestiti to be included in CONSOB's List of Registrars for Digital Circulation and which made it possible to successfully issue the first "Digital Bond" in Italy in July.

CDP SpA

  Resources deployed: 11.6 billion euro (11.0 billion in the first half of 2023)

  Net income: 1.8 billion euro (1.9 billion in the first half of 2023)

  Loans: 126 billion euro (124 billion at the end of 2023)

  Postal funding: 287 billion euro (285 billion at the end of 2023)

  Equity: 28 billion euro (27.9 billion at the end of 2023)

CDP Group

Resources deployed: 11.8 billion euro (11.5 billion in the first half of 2023)

Consolidated net income: 3.3 billion euro (2.8 billion in the first half of 2023)
Consolidated net income pertaining to the Parent Company CDP SpA: 2.2 billion euro (1.8 billion in the first half of 2023)
Total consolidated assets: 468 billion euro (475 billion at the end of 2023)
Consolidated equity: 43.7 billion euro (41.8 billion at the end of 2023)

The Board of Directors confirmed Fabio Massoli, Administration, Finance, Control and Sustainability Director, as Manager in charge with preparing the company's financial reports.

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

"In recent years we have seen our country show considerable resilience with respect to a global scenario characterised by great uncertainty", says the Chairman of Cassa Depositi e Prestiti, Giovanni Gorno Tempini. "In this context, CDP has managed to steer its own choices by responsibly and courageously directing the resources available towards those sectors and those projects that are fundamental for our economy over the long term. Thanks to its solidity and in full synergy with the financial system, our Group has acted effectively as a driving force for development in Italy and abroad, laying the foundations to contribute to the construction of a sustainable and inclusive future".
 

"The results achieved in the first six months of 2024 further confirm the ability of Cassa Depositi e Prestiti to operate effectively in the service of the country, expanding its scope of action in Italy and abroad", highlights the Chief Executive Officer and General Manager of Cassa Depositi e Prestiti, Dario Scannapieco. "The 11.8 billion in resources deployed and the 33.3 billion in investments enabled will allow us to greatly exceed the objectives set by the Strategic Plan for the three-year period 2022-2024 and lay a solid foundation for the work that awaits us in the future, with a well-defined horizon: to contribute to a path that combines economic growth with sustainable and long-lasting development, while preserving the company’s financial solidity and profitability”.

Half-year business and financial performance

CDP SpA

As regards the balance sheet items, total assets amount to 389 billion euro (-2% compared to 2023) and mainly include:

• cash and cash equivalents and other treasury investments, equal to 142 billion euro, a reduction of 8% compared to the end of 2023 (154 billion euro), for lending operations and for the asset-liability management actions undertaken in terms of reduction of short-term funding and loans, given the interest rate scenario;
• loans, amounting to 126 billion euro, up by 2% compared to the figure at the end of 2023 (124 billion euro), especially due to direct and indirect loans to businesses. The figure goes against the market trend;
• debt securities, equal to 74 billion euro, up by 3% on the 2023 year-end figure (72 billion), as a result of purchases of Government bonds in the half-year period;
• equity investments and funds, equal to 38 billion euro, broadly in line with the 2023 year-end figure (38 billion euro), with new investments offsetting changes in fair value on investment funds.

Funding amounts to 356 billion euro, a reduction of 2% compared to the end of the previous financial year (362 billion euro). Specifically:

• postal funding amounts to 287 billion euro, an increase compared to the end of 2023 (285 billion euro), due to the positive net funding recorded in the half-year and the interest accrued by savers;
• funding from banks and customers, amounting to 49 billion euro, a decrease of 17% compared to the 2023 year-end figure (59 billion euro), mainly due to the reduction in short-term funding on the money market, implemented in line with the asset-liability management strategies, given the interest rate scenario;
• bond funding amounts to 20 billion euro, rising by 7% compared to the end of 2023 (18 billion euro) due to the growth of commercial papers and bond issues carried out in the half-year, including the second dollar-denominated issue ("Yankee Bond") and the tenth ESG Bond of CDP.

Finally, equity amounts to 28 billion euro, up by 0.3% compared to the end of 2023 (27.9 billion euro) mainly through the profit accrued in the half-year, net of dividends distributed in line with the Plan assumptions.

In terms of income statement results, CDP SpA reports a net income of 1.8 billion euro, a decrease of 0.1 billion euro compared to the same period of the previous financial year. In particular:

• net interest income of 1.6 billion euro, up 0.4 billion euro compared to the first half of 2023, due to the improvement in the spread between interest-bearing assets and liabilities, also thanks to the alignment of the return on liquidity with the current market condition, the continuation of asset-liability management initiatives aimed at offsetting the impact of the rise in short-term rates on the cost of funding and the reduction of short-term funding, following self-financing activities carried out in line with the Plan guidelines;
• dividends of 0.8 billion euro, down 0.3 billion compared to the figure for the first half of 2023, mainly due to the lower contribution of Group companies, whose distributions in the same period of the previous year had been affected by non-recurring factors;
• other net revenues equal to 100 million euro, essentially stable compared to the figure for the first half of 2023;
• cost of risk equal to -28 million euro, worsening compared to the figure for the first half of 2023 mainly due to negative changes in fair value of investment funds held in the portfolio;
• cost/income ratio at 6%, stable at very low levels, in line with the first half of 2023.

Main activities of the CDP Group

In the first half of the year, the CDP Group deployed resources amounting to approximately 11.8 billion euro, up from 11.5 billion euro in the first half of 2023 (+2.6%). The resources regarded six lines of action: Infrastructure, Public Administration, Enterprises and Financial Institutions, International cooperation and Development Finance, Equity, and Real Estate.

• Infrastructure: around 3.1 billion euro deployed. The main activities include support for the motorway sector through financing for a total of 1.0 billion euro, also through European resources and the granting of a loan of 120 million euro, assisted by an InvestEU guarantee, for the construction of the new campus of the University of Milan.

• Public Administration: around 0.7 billion euro deployed. The main activities include the granting of over 550 million euro in financing to local authorities, also through cash advances, and support to over 700 entities through operations for the benefit of the Public Administration.
• Enterprises and financial institutions: around 7.0 billion euro deployed. The main activities include support for social impact investments by SMEs and Mid-Caps through the subscription of a Social Bond of 800 million euro and financing for 50 million euro that accompanied the entry into the German market of a leading Italian company in the clothing sector.
• International cooperation and development finance: around 0.5 billion euro deploy ed. The main activities include the strengthening of the role of CDP on this front through its involvement in the implementation of the Mattei Plan and support for the energy transition in Serbia with financing for 100 million euro assisted by a sovereign guarantee.
• Equity: around 0.5 billion euro deployed. Of note, among the various initiatives in support of the existing equity investment portfolio, are the resolution upon the pro-rata subscription of the capital increase of Fincantieri, aimed at an acquisition transaction, and the strengthening of the role of stable shareholder of Euronext through the purchase of an additional equity stake in the company's capital.
• Real Estate: around 0.1 billion euro deployed. One of the main activities was the resolution to invest a total of 65 million euro in student housing initiatives through the “Fondo Nazionale dell’Abitare Sociale”. Resources amounting to 87 million euro have also been released as a result of real estate sales already carried out or under completion, in accordance with the principle of capital rotation.

With regard to Advisory services and management of third-party funds, during the half-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, it is worth mentioning the operations based on the 15 Activity Plans signed with the central government entities in the context of the NRRP (National Recovery and Resilience Plan) and the signing of 7 new advisory protocols under InvestEU, mainly in the fields of sustainable infrastructure, local public transport, innovation, academic training, scientific research, and urban regeneration. With reference to management of third-party funds, the start of support to the Italian Regions for the management of the European Structural Funds and the resources approved by the Steering Committee of the Climate Fund, with the approval of 5 new interventions for approximately 350 million euro, can be highlighted.

In relation to the Sectoral Analysis and Impact Assessment, in the first six months of the year, the CDP Group continued work for a full integration of sectoral strategic analyses and policy guidelines into its business model. The main activities include the extension of the scope of monitoring to indirect operations, the definition of reward schemes to encourage high-impact operations, and the launch of analysis activities to verify eligibility and alignment with the European taxonomy; the completion of 15 technical and economic evaluations in the fields of innovation, infrastructure, environment, and energy; and the approval of the General Policy aimed at reducing CDP’s internal environmental impacts, by promoting the best practices in sustainability.

Consolidated financial statements

The half-yearly condensed consolidated financial statements include, in addition to the scope covered by the CDP Group, 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 for the first half of the year amounts to 3.3 billion euro, up 18% compared to the same period of the previous year (2.8 billion euro), attributable to the growth in the Parent Company's net interest income and the improvement in the performance of industrial companies. The net income pertaining to the Parent Company is equal to 2.2 billion euro (1.8 billion in the first half of 2023).

Total consolidated assets amount to 468 billion euro, down by approximately 1.4% compared to the end of the previous financial year (475 billion euro).

Total funding amounts to 397 billion euro, down by 1.4% compared to the end of 2023 (403 billion euro). The item mainly includes the Parent Company's postal funding, funding from banks, and bond issues mostly attributable to CDP and the Terna, Snam, and Italgas groups.

Consolidated equity, amounting to 43.7 billion euro, increased by 2 billion euro compared to the end of the previous year (41.8 billion euro) thanks to the positive result for the period, net of the distributed dividends.

Sustainability: more than 70% of the ESG Plan targets achieved in advance

In the first half of 2024, CDP made further progress in achieving the objectives of the 2022-2024 ESG Plan, with more than 70% of the targets achieved ahead of schedule and, in particular, with regard to climate change and ecosystem protection, CDP has achieved its commitments relating to the impacts of its venues.

On the investment side, the CDP Group, through the signatures of CDP Equity and CDP Real Asset SGR, has recently adhered to the Principles for Responsible Investment (PRI)⁵ promoted by the United Nations, the main global network for investors who are committed to integrating ESG criteria into decisions regarding investment and equity stake management.

As confirmation of the growing focus on sustainability issues, the ESG objective component in the corporate incentive programme reached 35%, exceeding the Plan target of 30%.

In addition, initiatives to promote ESG issues towards its stakeholders have been consolidated: from joining the Open-es platform for sustainable business development to the growth of the ESG Community, the network promoted by CDP with some of the largest economic entities in the country, up to the involvement of over 4,700 girls and boys in the financial education programme "Ready, finance, go!"   (Pronti, finanza, via!) with FEduF (Foundation for Financial Education and Savings).

A commitment confirmed by the ESG rating agencies assessments: Morningstar Sustainalytics placed CDP in first place globally in the "Banks" and "Development Banks" sector, while ISS ESG, in addition to improving the rating, gave Cassa Depositi e Prestiti the "Prime" status, placing it above the average of its reference sector. In addition, a certificate of compliance with the international standard ‘ISO 30415‘ on issues of diversity and inclusion was obtained.

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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 2024. 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 2024 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.