Net profit at €867.5 m (-21.3% Q/Q) leading to a net profit of €3.8 bn in FY14 and to a RoAC of 10.8%. Main contributors to 4Q14 net profit are Commercial Bank Italy with €459.0 m and 24.9% RoAC, CEE & Poland with €212.0 m and 9.2% RoAC and CIB with €399.1 m and 21.1% RoAC.
Net operating profit up to €1.4 bn (-28.7% Q/Q) supported by a strong cost discipline partially offsetting pressure on revenues and higher LLP. Net operating profit amounting to €6.8 bn in FY14 (+29.9% FY/FY).
Revenues amount to €5.5 bn in 4Q14 (+1.0% Q/Q, -2.1% Y/Y) and to €22.2 bn in FY14 (-2.0% FY/FY). Key contributors to 4Q14 revenues are Commercial Bank Italy with €2.0 bn (+0.9% Q/Q, +4.2% Y/Y), CEE & Poland with over €1.3 bn despite FX impacts (-8.2% Q/Q and -12.3% Y/Y at constant FX) and CIB with €1.0 bn (+27.1% Q/Q, -2.6% Y/Y).
Net interest income stands at €3.1 bn in 4Q14 (-0.9% Q/Q, -0.3% Y/Y) exceeding €12 bn in FY14 (+3.4% FY/FY) thanks to the re-pricing of liabilities which more than offset volume dynamics of loans and deposits and to the decrease in market rates during the year.
Customer loans broadly stable at €423.2 bn (+0.5% Q/Q), with commercial loans slightly increasing (+0.4% Q/Q) despite FX impacts affecting CEE & Poland, where loans increased by 6.4% Q/Q at constant FX. Institutional and market counterparts up at €38.2 bn (+2.3% Q/Q).
New medium-long term lending flows in Commercial Bank Italy confirm the positive trend registered in the past quarters, with €4.6 bn new loans granted in 4Q14 (+64.9% Q/Q, +93.4% Y/Y). Total new lending in FY14 reached €13.2 bn (+64.0% FY/FY), higher than €11.1 bn run-offs, driven by household mortgages (+111.6% FY/FY) and corporate loans (+104.9% FY/FY).
Direct funding (8) increased to €452.6 bn (+1.8% Q/Q) with commercial deposits growing (+2.8% Q/Q) despite FX impact affecting CEE & Poland, where deposits increased by 12.0% Q/Q at constant FX. Institutional and market counterparts up to €56.5 bn (+1.9% Q/Q).
Fees and commissions amount to €1.8 bn in 4Q14 (+1.5% Q/Q, +2.7% Y/Y), equal to €7.4 bn in FY14 (+4.3% FY/FY) supported in particular by investment services fees (+9.5% FY/FY).
Dividends and other income (9) land at €305.6 m (+50.5% Q/Q, +42.2% Y/Y), almost €1 bn in FY14 decreasing by -18.5% FY/FY mainly related to the sale of Yapi Kredi Sigorta occurred in 3Q13.
Trading income to €340 m (-12.3% Q/Q, -42.5% Y/Y) affected by currencies devaluation and lower volatility.
Total costs at €3.4 bn (+3.6% Q/Q, -5.9% Y/Y) demonstrating high efficiency in managing expenses, with total cost reduced to €13.2 bn in 2014 (-2.9% FY/FY) and to a cost income ratio of 59.7% in FY14, in line with the Group's cost reduction targets. In FY14, the number of branches decreased by 466 units (-5.8% FY/FY, excluding Yapi Kredi) and the number of FTE (10) decreased by c. -3,000 (-2.3% FY/FY).
Loan loss provisions (LLP) at €754.3 m in 4Q14, compared to €254.4 m in 3Q14 which was affected by positive one-offs. LLP reach €2.1 bn in FY14 (-43.2% FY/FY) leading to a cost of risk of 50bps.