Statistical Bulletin no. 25/3 - Issuers - December 2024
 

Listed italian companies in the first half of 2024

Italian companies other than banks and insurance companies listed on stock market EXM reported profits of 15.7 billion in the first half of 2024, up 20.3 percent compared to the same period in 2023. This result was mainly attributable to an improvement in value added brought about by a reduction in operating costs (23.3 billion), which exceeded the decline in sales (16.3 billion). As of June 30, 2024, net asset reached 258.5 billion, registering an increase of 3 percent compared to the end of 2023.

Looking at the ratios, operating profitability showed signs of improvement, as evidenced by the increase in EBITDA Margin from 14.6 percent in 2022 to 21.5 percent in the first half of 2024. The Debt to Equity Ratio decreased from 159.2% in 2022 to 141.7% in 2024, indicating more prudent financial management and less reliance on debt. However, the Interest Coverage Ratio decreased significantly, falling from 865.1% in 2022 to 330.7% in 2024, suggesting an increasing impact of debt costs related to the ECB's rate hike cycle.

In contrast, Italian companies traded on the growth market EGMs recorded profits of 106 million euros, down 61 percent from the first half of 2023. This deterioration is related to the worsening of nonoperating and financial activities, which produced total losses of 847 million euros, compared to 773 million euros in the previous year. Despite this, net asset of these companies rose to 4.9 billion euros, marking a 1 percent increase from the end of 2023.

Small-cap companies suffered a decline in profitability, as evidenced by the ratios, with ROE falling from 10.7% in 2022 to 4.3% in the first half of 2024 and EBITDA Margin falling to 11.9%. These trends point to margin pressures and a slowdown in profit generation. Despite this, Debt to Equity remained stable (67%), demonstrating prudent debt management. The Interest Coverage Ratio, although down from 2022 (1218%), remains at reassuring levels (530% in 2024), ensuring solidity in interest expense coverage.

Italian banks listed on EXM reported profits of 14.9 billion euros, up 11 percent from the first half of 2023. This positive result was due to the increase in net interest income (2.4 billion) exceeding the increase in net fee income (1.1 billion). Net asset remained essentially stable at 192.3 billion euros compared to 191.7 billion euros at the end of 2023.

From the ratios, banks show robust growth in profitability, with ROE rising from 8.7% in 2022 to 15.5% in 2024, and ROA increasing from 0.6% to 1.2% over the same period. Operating efficiency improved significantly, with the Cost to Income ratio falling from 68.2% in 2022 to 52.8% in 2024, signalling a better ability to control costs over revenues. Net Interest Margin increased to 2.2%, reflecting a higher interest rate environment. Asset quality improved, with Cost of Risk declining to 0.21%, indicating a lower incidence of loan losses and confirming prudent risk management, which strengthens capital soundness and ability to cope with adverse macroeconomic dynamics.

The Report was prepared by:
Gaetano N. Finiguerra (supervisor) -  CONSOB, Head of Statistics Office, Research Department (g.finiguerra@consob.it)
Francesco Scalese - CONSOB, Statistics Office, Research Department (f.scalese@consob.it)

Davide Danzilli - CONSOB, Statistics Office, Research Department (d.danzilli@consob.it)

Thanks to Andrea Conforti  - CONSOB, (a.conforti@consob.it) and Factset for the support.

Editorial secretary: Andrea Cianciullo

For information and clarifications write to: Ufficio.Statistiche@consob.it