Rome – Credito Sportivo, the Italian state-backed lender focused on supporting sports infrastructure and related initiatives, is projecting a net profit of €8 million in 2025, alongside a planned €600 million in new financing. The forecast comes as the bank demonstrates significant improvements in asset quality and financial stability, according to a report released Tuesday. This positive outlook reflects a strategic shift towards higher-yield investments and a successful reduction in non-performing loans, positioning the institution for continued growth and impact within Italy’s sports and social infrastructure landscape.
The bank’s strong performance last year saw a total funding intake exceeding €3.2 billion, bolstered by a €500 million five-year social bond and a €150 million credit line from the European Investment Bank (EIB). The EIB’s involvement underscores the bank’s alignment with broader European Union goals for sustainable and socially responsible investment. Credito Sportivo’s owned securities portfolio reached €1.5 billion, with a strategic move towards market-yield instruments designed to enhance future profitability.
Significant Reduction in Non-Performing Loans
A key driver of the improved financial health is a substantial decrease in non-performing loans (NPLs). Gross NPLs were reduced from €208.3 million to €52.4 million, whereas net NPLs fell from €79.5 million to €21 million. This translates to a gross NPL ratio dropping from 8.6% to 2.2%, and a net NPL ratio declining from 3.5% to 0.9%. These figures demonstrate a significant cleanup of the bank’s balance sheet and a strengthened capacity to absorb potential future credit risks.
The bank also maintains a robust capital and liquidity position. The Net Stable Funding Ratio (NSFR) stands at 151%, and the Liquidity Coverage Ratio (LCR) is at 1,652%. The Common Equity Tier 1 (CET1) ratio, a key measure of financial strength, is at 63.8%, well above regulatory requirements, although it experienced a slight decrease from 2024 due to the expansion of lending and financial portfolios.
Investing in Social Impact
Credito Sportivo’s activities are increasingly focused on projects with measurable social benefits. In the first year of its 2025-2030 strategic plan, the bank financed over 500 initiatives and infrastructure projects. These projects boast an average Social Return on Investment (SROI) of 4x, with estimated social benefits exceeding €5 billion. The bank highlights the positive impact on employment, territorial cohesion, and urban regeneration as key outcomes of its lending activities.
The focus on SROI is a growing trend in impact investing, where financial returns are considered alongside social and environmental benefits. The Global Impact Investing Network (GIIN) provides resources and standards for measuring and reporting on social impact, and Credito Sportivo’s adoption of the SROI metric demonstrates a commitment to transparency and accountability.
Financing Details and Strategic Focus
The €600 million in planned financing for 2025 will likely be directed towards a range of projects, including the construction and renovation of sports facilities, the development of sustainable tourism infrastructure, and initiatives that promote social inclusion through sport. The bank’s strategic plan emphasizes a commitment to supporting projects that contribute to the United Nations Sustainable Development Goals (SDGs), particularly those related to health, education, and sustainable cities and communities.
Credito Sportivo’s role extends beyond simply providing financing. The bank also offers advisory services to aid project developers navigate the complex regulatory landscape and ensure the long-term sustainability of their initiatives. This holistic approach positions the bank as a key partner in driving positive social and economic change across Italy.
The bank’s success in attracting funding through social bonds demonstrates investor appetite for investments that generate both financial returns and positive social impact. This trend is expected to continue as investors increasingly prioritize Environmental, Social, and Governance (ESG) factors in their investment decisions.
Looking ahead, Credito Sportivo is expected to continue its focus on sustainable financing and social impact investing. The bank’s next key milestone will be the release of its full-year 2024 results, providing a more detailed assessment of its financial performance and progress towards its strategic goals. Further updates on the implementation of the 2025-2030 strategic plan will be provided throughout the year.
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