We ended this year 2017 with a Net Income Group Share growth of almost 15% reaching a new high of 77 .4 Million Euro. Despite countries disparities, we can affirm that the Group is heading in the direction set in the 3 years plan budget 2015-1018.
The Income growth is sustained by healthy fundamentals such as:
• Rigorous risks provisioning policies;
• Lower exposure on market activities and increase of the traditional banking business;
• Undergoing balance sheet transformation with the aim of better balancing the loan portfolio (less corporate more SME);
• Reviewing pricing policies either on interest income or on fees, adjusted by market, risk premium;
• Financial discipline on costs.
Despite the slight decline on interest margin due to the slower effect than expected of SME financing growth on one side, and the Government Bonds portfolio downsizing on the other side, the fee business surged by 11% to reach 148 Million Euro level.
The good performance of the debt collection units, help drive down the cost of risk by 31% to 47 Million Euro or 1.2% of the outstanding portfolio and therefore explain the income growth.