Bapr Ragusa has approved the 2020 Ragusa Budget Project

Ragusa – The Board of Directors of the Banca Agricola Popolare di Ragusa, chaired by Dr. Arturo Schininà, today approved the draft budget for the year 2020, on the proposal of the General Manager, Dr. Saverio Continella.
The Chairman of the Board of Directors, Dr. Arturo Schininà commented: “The Bank has proved capable not only of being able to resist the difficulties of a year characterized by the uncertainty linked to the pandemic and the certainty of an unprecedented economic crisis, but to be able to present itself on the market and in front of the strongest shareholders, able to support families and businesses to continue to look to tomorrow with confidence. In fact, the data for 2020 show exceptional improvement from the balance sheet aspect, with the further increase in the solidity indicators, which place the Group at the top of the banking system. These data will allow us to propose to the Shareholders’ Meeting a dividend per share of € 0.06, which is the maximum payable immediately, in compliance with the Recommendations received by all Banks from the Supervisory Authorities. We will also propose to the Shareholders’ Meeting to disburse an additional € 0.06 per share, always in compliance with the regulations imposed by the Supervisory Authority and therefore after 30 September 2021. The way forward may seem difficult and fraught with difficulties. But we will pursue it with commitment and passion, always keeping faith with the principles that have supported us for 132 years of history, in the awareness that we have all the means to play the role of reference bank for the whole Sicilian territory “.

The General Manager, dr. Saverio Continella, declared: “We have worked with great commitment on the business model, consistent with our mission as a proximity bank, dynamically adapting it to the new context that the economic crisis has marked, making important choices to lay the foundations for a solid profitability in future years. All equity indicators are growing: the increase in loans testifies to the attention paid to families and businesses in a year of exceptional crisis; the growth of deposits, both direct and managed, is an act of trust, which repays us for the efforts made to increase our solidity and professionalism, to guarantee the investments of our customers. I also believe that the path taken by the Bank, in my first two years of work, in improving the quality of assets can be defined as really important: the gross NPL ratio went from 21% in 2018 to 9% in 2020, with bad loans covered to 74. % and UTP at 40%, with a simultaneous increase in CET 1 Fully Loaded, which rose from 20% to 24%. This path was also pursued with a view to the future, incurring huge costs to finance investments for digitization and the staff redundancy plan. Finally, I want to thank, last but not least, the women and men of our company, who in such a difficult context have made it possible to achieve such important results; each, with a constructive attitude, is working on the Bank of tomorrow, more agile, more digital, closer to customers, capable of giving effective added value to proximity to the territory, the extra element that distinguishes us. “

Balance sheet and income statement as at 31 December 2020
The main results of the Banca Agricola Popolare di Ragusa are set out below.
At 31 December 2020, loans to customers, net of value adjustments, amounted to € 3,460.2 million, up by a total of € 124.2 million. (+ 3.7%.) Compared to the value of the previous year.
The loan component, as at 31 December 2020, amounted to € 2,922.2 million. recording an overall increase of € 26.4 million. If we refer to the reduction in net impaired loans due to the sale of a net portfolio of NPLs (Bad loans and UTPs) for 40.8 million, the increase in the aggregate is equal to 67.2 million.
With regard to the component of performing loans, there was an overall increase of € 99.4 million. (+ 3.7%) compared to the previous year. With reference to the Covid 19 Emergency, immediate interventions were carried out for the Shareholders, who were granted suspensions on loans for a total of € 63.3 million. Further moratoriums on loans for a total of € 639.9 million were granted for the benefit of all customers through legislative measures, adherence to the ABI Agreements and voluntary initiatives. Also disbursed € 279.2 million of new loans guaranteed by the state.
As evidence of the prudent assessment of impaired loans carried out during the year, the hedging ratios, net of default interest, are:
– for non-performing loans, 73.8% (63.9% in 2019) for a net book value of 13.75 million. of Euro;
– for unlikely to pay, 40.1% (36.7% in 2019) for a net book value of 125.42 million. of Euro;
– for impaired past due exposures, 21.3% (23.1% in 2019) for a net book value of 11.57 million euro;
– for performing and overdue non-impaired loans, 0.7% (0.6% in 2019), net book value 2,771.53 million. of Euro.
The hedging ratios, including the interest on arrears written down in full, are:
– for non-performing loans, 81.2% (72.3% in 2019);
– for unlikely to pay, 41.1% (37.5% in 2019);
– for impaired past due exposures, 21.7% (23.3% in 2019);
– for performing and overdue non-impaired loans, 0.7% (0.6% in 2019).
The segment of direct deposits with retail customers, on traditional technical forms (savings deposits, current accounts, time deposits, bonds and other payables for leasing) amounts to € 3,684.7 million. and shows growth of € 139.3 million. (+ 3.9%) compared to 2019.
Indirect deposits amounted to € 1,014.4 million, an increase of € 92.3 million compared to the previous year. (+ 10.0%).
Total deposits (direct and indirect customers), equal to € 4,695.3 million, up by 5.2% compared to the previous year, are composed of 78.4% of direct deposits and 21.6% of deposits live.
The intermediation margin is equal to € 144.8 million (+ 1.5% compared to 2019), also thanks to the flattering results obtained with the management of financial assets, which confirm the positive characteristic of the Group’s profitability.

Value adjustments on the loan portfolio amounted to € 30.3 million (-1.8% compared to 2019), due to the need to maintain a prudent and conservative profile in the face of credit risk.
The net result from financial management is € 113.6 million (+ 2.6% compared to 2019).
Operating costs, equal to € 107.6 million (+ 11.4% compared to 2019), are burdened by non-recurring and extraordinary items (staff redundancy plan and other additional and extraordinary costs related to the management of the pandemic crisis).
Also in 2020, ordinary and extraordinary annual economic contributions were requested by the bodies for the prevention and management of banking crises. The overall contribution of economic resources, including ordinary and extraordinary interventions requested, amounts to a total of € 4,355 million.
Group net profit was € 2.9 million (-69.9% compared to 2019).
The “normalized” Group net profit (net of non-recurring and extraordinary items) is equal to € 12.7 million (+ 33.0% compared to 2019), guaranteeing capital solidity and profitability for the near future .
The quantitative and qualitative capitalization ratios remain significantly above the required standards, allowing the Bank to be fully compliant with prudential rules:
• the Common Equity Tier 1 phase-in (which in the case of the Bank coincides with the Total Capital Ratio) is equal to 28.0% (26.1% in 2019) against a mandatory minimum of 7%;
• the fully loaded Common Equity Tier 1 amounted to 24.0% (21.8% in 2019).
The book net equity is equal to € 552.6 million. At the end of the financial year, the Bank holds in its portfolio its own shares repurchased for a total value of 17.4 million.
The Texas Ratio was 23.9% compared to 34.6% at the end of 2019.
LCR Ratio equal to 245% (134% in 2019), € 1,218 million of Readily liquid assets.

The Group’s ability to cope with an exceptionally adverse economic context was confirmed, while maintaining the necessary attention to the future landscape, still characterized by profound uncertainty.

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Following the discussions with the Supervisory Body in accordance with the recent Recommendations received by the Supervisory Authority in December 2020, a dividend of € 0.06 per share is expected, to be distributed in April 2021. An additional dividend of € is expected. 0.06 per share, to be paid after 30 September 2021, always in compliance with the Recommendations in force today.

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