Category: Machine Learning

  • MIL-OSI: 4BIO Capital leads oversubscribed $28.4 million Series A financing of March Biosciences

    Source: GlobeNewswire (MIL-OSI)

    March Bio is rapidly advancing its innovative autologous chimeric antigen receptor T-cell (CAR-T) therapy, MB-105, in development for the treatment of relapsed and refractory CD5 positive T-cell lymphoma.

    Series A was led by 4BIO Capital and Mission BioCapital with participation from KdT Ventures, Alexandria Venture Investments, Volnay Therapeutics, Modi Ventures, and Mansueto Investments.

    London, United Kingdom, 23 October 2024 – 4BIO Capital (“4BIO” or “the Group”), an international venture capital firm unlocking the treatments of the future by investing in advanced therapies and other emerging technologies, today announces that it has led a $28.4 million (£21.9 million) Series A Financing round of March Biosciences (“March Bio” or the “Company”).

    4BIO led the oversubscribed round alongside Mission BioCapital with participation from new investors KdT Ventures, Alexandria Venture Investments, Volnay Therapeutics, Modi Ventures and Mansueto Investments and existing investors TMC Venture Fund, Cancer Focus Fund and Small Ventures.

    Since its inception as a spinout of the Center for Cell and Gene Therapy (Baylor College of Medicine, Houston Methodist Hospital, Texas Children’s Hospital), March Bio has rapidly advanced its innovative autologous chimeric antigen receptor T-cell (CAR-T) therapy, MB-105, in development for the treatment of relapsed and refractory CD5 positive T-cell lymphoma. MB-105 is specifically engineered to overcome major hurdles related to T-cell targeting by overcoming T-cell fratricide while maintaining high potency against CD5 positive tumor cells. MB-105 has demonstrated a favorable safety profile and durable remissions in relapsed T-cell lymphoma patients in a Phase 1 clinical trial at Baylor College of Medicine, with plans to begin a Phase 2 clinical trial in early 2025. Proceeds from the financing will support the Phase 2 clinical development of MB-105 to expand on this data with optimized manufacturing processes.

    Owen Smith, Partner of 4BIO Capital, said, “For far too long, T-cell cancers have been an innovation desert with patients facing a dismal prognosis. March Bio’s innovative autologous CAR-T approach brings patients new hope. MB-105 is specifically engineered for relapsed and refractory CD5 positive T-cell lymphomas and I am delighted that this targeted approach combined with the incredible team led by Sarah is moving rapidly into Phase 2 to bring this exciting new treatment to patients. We are honored to be a co-lead investor in March Bio and to help support the company as it continues in its mission to bring transformative therapies to those in urgent need.”

    Sarah Hein, Co-Founder and Chief Executive Officer of March Biosciences, added, “This oversubscribed financing enables us to advance our first-in-class CAR-T therapy, MB-105, into a Phase 2 trial for T-cell lymphoma – an indication with an exceptionally poor prognosis and few treatment options. With the support and confidence of 4BIO and all of our investors, we are not only advancing our lead program but also expanding our pipeline, underscoring our commitment to delivering best-in-class therapies to patients that can change the treatment paradigm for these challenging cancers.”

    Owen Smith of 4BIO Capital and Cassidy Blundell of Mission BioCapital will be joining March Bio’s Board of Directors. The financing will also provide resources for the ongoing development of undisclosed pipeline products, as well as for general corporate proceeds.

    – End –

    Contacts

    4BIO Capital +44 (0) 203 427 5500
    info@4biocapital.com
       
    ICR Consilium
    Amber Fennell, Kris Lam, Jonathan Edwards
    +44 (0)20 3709 5700
    4biocapital@consilium-comms.com

    About 4BIO Capital

    4BIO Capital (“4BIO”) is an international venture capital firm focused on investing in advanced therapies, including genomic medicines and other emerging technologies, to unlock the treatments of the future. 4BIO’s objective is to invest in, support, and grow early-stage companies developing treatments in areas of high unmet medical need, with the ultimate goal of ensuring access to these potentially curative therapies for all patients. Specifically, it looks for viable, high-quality opportunities in cell and gene therapy, RNA-based therapy, targeted therapies, and the microbiome. The 4BIO team comprises leading advanced therapy scientists and experienced life science investors who have collectively published over 250 scientific articles in prestigious academic journals including Nature, The Lancet, Cell, and the New England Journal of Medicine. 4BIO has both an unrivalled network within the advanced therapy sector and a unique understanding of the criteria that define a successful investment opportunity in this space. For more information, connect with us on LinkedIn and X @4biocapital and visit http://www.4biocapital.com.

    About March Biosciences

    Houston-based March Biosciences, launched from the Center for Cell and Gene Therapy (Baylor College of Medicine, Houston Methodist Hospital, Texas Children’s Hospital), is dedicated to addressing challenging cancers unresponsive to current immunotherapies. Its lead asset, MB-105, is a CD5-targeted CAR-T cell therapy currently in Phase 1 trials in patients with refractory T-cell lymphoma and leukemia, with promising signals of efficacy and safety to date. A Phase 2 trial is expected to begin next early year. The company has raised over $50M to date, inclusive of this current financing and support from the Cancer Prevention & Research Institute of Texas (CPRIT) and the NIH SBIR program. Learn more at http://www.march.bio.

    The MIL Network

  • MIL-OSI Economics: Samsung R&D Institute, Bangalore Sets Up a State-of-the-Art Linguistics Lab focused on Artificial Intelligence and Machine Learning, Jointly with Garden City University, Bangalore

    Source: Samsung

     
    Samsung R&D Institute India – Bangalore (SRI-B) has collaborated with Garden City University (GCU), Bangalore to set up a ‘Samsung Student Ecosystem for Engineered Data (SEED) Lab’, providing students and faculty an exciting opportunity to delve into the world of AI/ML and data engineering.
     
    At the lab, students and faculty members of GCU will get hands-on experience through joint projects on emerging cutting-edge tech areas such as Natural Language Understanding, Speech and Text recognition and Machine Learning, with senior engineers at SRI-B.
     
    Samsung has already launched four SEED labs – two each in Karnataka and in Tamil Nadu (VIT- Vellore & VIT- Chennai) earlier, engaging more than 400 students in AI and data-related projects.
     
    “We’re at a time when technology is evolving faster than ever. We are collaborating with the local ecosystem where we strive to develop talent and upskill Indian engineers / linguists, to not only make them industry-ready, but also become the game changers of the future. Our strategic partnership with Garden City University will further advance our efforts and explore new opportunities in creating innovative products for India”, said Mohan Rao Goli, Chief Technology Officer, SRI-B.
     
    The Lab at GCU plans to leverage the capabilities of Linguists in executing AI and Multi-lingual, data-centric projects by building an end-to-end pipeline for data, which includes Text/Speech Data generation in global languages, engineering (curation, labelling, and more), data management and archival.
     
    “Collaboration with industries is crucial for universities to produce the workforce and innovators of the future. Our partnership with Samsung through the SEED (Student Ecosystem for Engineered Data) program aligns perfectly with the ethos of Garden City University. I am confident that this collaboration will greatly benefit our students while also strengthening Samsung’s industry-academia relationships. This marks a significant step forward for both parties”, shared Dr. Joseph V.G., Chancellor, Garden City University.
     
    The SEED Lab, which is a collaborative initiative between SRI-B and GCU for 5 years, is spread across 1,500 sq ft. In its initial phase, the Lab has been equipped with state-of-the-art Infrastructure for the Students to collaborate with Samsung in generating datasets. The lab also has a robust backend infrastructure to store, process, and archive large volumes of data, and can accommodate about 30 people.

    MIL OSI Economics

  • MIL-OSI China: Chinese high-tech zones collaborate to boost AI industry innovation

    Source: People’s Republic of China – State Council News

    BEIJING, Oct. 23 — Eleven major high-tech zones in China have jointly established a collaborative network to promote innovation in the country’s AI industry, China Science Daily has reported.

    A conference on the establishment of this network held early this week in Beijing revealed that the newly-founded network features 11 major high-tech zones nationwide, including Beijing’s Zhongguancun, also dubbed China’s “Silicon Valley,” and those in the cities of Shanghai, Nanjing, Suzhou, Hangzhou, Hefei, Qingdao, Wuhan, Shenzhen, Chengdu and Xi’an, according to the report published on Tuesday.

    Wu Jiaxi, deputy director of the planning department of the Ministry of Industry and Information Technology, expressed hope that the collaborative innovation network would cultivate fertile ground for AI innovation in China — via an open and inclusive approach.

    High-tech zones are the core carriers and major hubs for AI development in China, and they have become a significant force in AI innovation, said Wu.

    He also emphasized the importance of building a community for AI innovation and development through shared benefits, as well as deepening the domestic AI industry layout through an innovation-driven model.

    During the conference, network participants announced the Zhongguancun Initiative, which aims to accelerate the development of AI technologies in areas such as chips, algorithms and models.

    The Zhongguancun Initiative also seeks to establish a comprehensive innovation and entrepreneurship service system for the entire AI industry chain and to build mechanisms for the exchange of technology, industry, capital and talent.

    The initiative encourages the establishment of open AI platforms to maximize the sharing of AI development achievements and seeks the active participation of high-tech zones in the formulation of international and national standards.

    Furthermore, it emphasizes the importance of strengthening data security and privacy protection, as well as providing regular supervision and regulatory services for AI platform companies, to ensure the traceability and reliability of AI technologies.

    MIL OSI China News

  • MIL-OSI China: China to formulate action plan for manufacturing industry’s green, low-carbon development

    Source: People’s Republic of China – State Council News

    China to formulate action plan for manufacturing industry’s green, low-carbon development

    BEIJING, Oct. 23 — China’s Ministry of Industry and Information Technology (MIIT) will formulate an action plan for green and low-carbon development of the manufacturing industry, a spokesperson said Wednesday.

    The move aims to promote comprehensive green transformation in economic and social development, Tao Qing, spokesperson of the MIIT, told a press conference held by the State Council Information Office.

    The MIIT will also continue to promote research, development, innovation and industrialization of key technologies in the fields of integrated circuits, industrial software, artificial intelligence and satellite internet, and cultivate and develop emerging industries and future-oriented industries, said Tao.

    The ministry will expedite the cultivation of leading enterprises in the industrial ecosystem and improve the whole-cycle cultivation system for small and medium-sized enterprises that feature specialization, refinement, uniqueness and innovation.

    The spokesperson also highlighted establishing a national system for nurturing unicorn enterprises — and nurturing a group of quality enterprises specializing in digital economy.

    Zhao Zhiguo, the MIIT’s chief engineer, said at the same press conference that the ministry will cultivate and promote the low-altitude economy, accelerating the development of low-altitude logistics, urban and intercity air transportation, and the low-altitude cultural and tourism industries.

    MIL OSI China News

  • MIL-OSI Russia: “We managed to hold a real hackathon, when there is no pre-defined pipeline on how to get a solution”

    Translation. Region: Russian Federation –

    Source: State University Higher School of Economics – State University Higher School of Economics –

    From October 13 to 20, the HSE University held a hackathon “HSE AY Assistant Hakk: Pothon”, organized Faculty of Computer Science And Center for Artificial Intelligence HSE. 89 student teams from the country’s leading universities competed for prizes.

    The challenge asked participants to use LLM and other machine learning algorithms to create an AI assistant that would help student programmers and developers solve Python problems by understanding where an error was made in their code and offering step-by-step explanations and recommendations for fixing it without explicitly providing the corrected code.

    The competition lasted seven days, five of which were held online on the DS Works platform from the cloud technology provider Cloud.ru. The opening and final days were held in the HSE building on Pokrovsky Boulevard.

    16 teams that were among the top ranking teams based on the quantitative metrics obtained for their solution were allowed to defend their projects.

    The jury included experts from the Center for Artificial Intelligence,Sber’s basic department “Financial technologies and data analysis”, teachers of the Faculty of Computer Science and the projectDate Culture.

    The victory was won by the team “MISIS Computer” from the University of Science and Technology MISIS. The second place was taken by the team MMG from the Financial University under the Government of the Russian Federation. The bronze was won by the team Selling Pandas, consisting of first-year students of the program“Applied Mathematics and Computer Science” HSE Faculty of Computer Science. The winners received cash prizes of 250,000, 200,000 and 150,000 rubles, respectively.

    Vice-Rector of the National Research University Higher School of Economics Sergey Roshchin and Head of the Center for Artificial Intelligence Alexey Masyutin awarded the winners and shared their opinions on the hackathon.

    Sergey Roshchin

    — The Higher School of Economics is developing in order to respond to the challenges that occur in technology, business processes and various spheres of human life. The big digital world is a new reality in which we must learn to live and interact with artificial intelligence technologies. That is why we are actively building education so that absolutely all of our students, regardless of their field of study, master digital competencies. The Higher School of Economics is a recognized leader in training personnel in the field of AI. But we are going further and setting ourselves more ambitious goals, including automating routine tasks related to the development of AI technologies. We chose the hackathon format because it allows students to test and prove themselves by solving important and new problems. The competition participants spent a whole week developing a solution, and during this time, I am sure, they managed not only to find a worthy solution, but also to gain experience and develop their human capital. And the results obtained are a contribution to our digital future.

    Alexey Masyutin

    — “HSE AI Assistant Hack: Python” is unique in that it combines several important areas of HSE:teaching digital skills to students of all disciplines Andcreation of AI assistants, including in the educational process.

    This time we managed to hold a real hackathon, when there is no pre-defined pipeline on how to get a solution.

    Participants had the opportunity to adapt language models to help the student step-by-step understand the problem while writing code, rather than simply providing a ready-made solution.

    Based on the results of the defenses, variants were proposed with enrichment with synthetic data, and with advanced aroma engineering, and with RAG approaches, and even with additional LLM training. This exceeded our expectations.

    We intend to use the best solutions for implementation in HSE Smart LMS and provide an AI assistant for both students and teachers when learning Python.

    The teams that won prizes also shared their impressions.

    First place – the team “MISIS Computer”

    — The hackathon was really cool, our team has a lot of experience participating in hackathons, and we know firsthand what a quality organization is. This hackathon had a really great organization, a good leaderboard, clear metrics and, most importantly, active organizers and experts who promptly answered questions and were in touch. Special thanks to Maxim — for his openness and cool expertise on the task. The results of the hackathon will not pass by HSE, the organizers are going to implement the best solutions in the university systems. Thanks to the organizers, experts and participants for such an interesting competition! We will be back!

    Second place – MMG team

    — Our team took part in the hackathon with great pleasure. We were especially pleased that it was technical and research-based, without a business component, and that the task was very relevant and in demand. Despite the fact that for most of us such a deep dive into working with LLM was the first time, we successfully coped with it, mastered new technologies and gained valuable experience.

    It was an honor for us to represent the Financial University at this event. We would like to express special gratitude to the organizers for their constant support. They quickly resolved any difficulties that arose and were always in touch, which created comfortable conditions for work. We are glad that we were able to take part in this hackathon and take such a high place!

    Third place – Selling Pandas team

    — This was our first hackathon, which essentially consisted entirely of using fine-tuning LLMs (large language models). It was not easy, but it is precisely such competitions that bring the most pleasure, when you need to create a solution in a limited time in a practically new area for you.

    By the end of the hackathon, we didn’t even want it to end, as there were still ideas that we hadn’t managed to implement. We were also very pleased with the organization of the hackathon: they always provided clear information and promptly answered all questions. We are very happy that we managed to take the prize place.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI: Acquia Releases New AI Capabilities for Digital Asset Management

    Source: GlobeNewswire (MIL-OSI)

    BOSTON, Oct. 23, 2024 (GLOBE NEWSWIRE) — Acquia, the leader in open digital experience software, today announced several AI-powered enhancements to the company’s digital asset management solution, Acquia DAM, that enable creatives and marketers to increase productivity and extract more value from their digital content.

    Acquia Video Creator, powered by Moovly, is now available as an add-on module to the Acquia DAM and PIM (product information management) solutions. An advanced AI-powered solution, Acquia Video Creator allows users to easily produce professional-quality, brand-compliant videos using a simple drag-and-drop interface, existing assets from their digital asset library, customizable templates, and a vast library of graphics, animations, and video clips. Start entirely new projects, edit existing videos, and use AI features to generate scripts, voiceover, subtitles, transcripts, and translations. Acquia Video Creator also offers collaboration tools for internal sharing and review, enabling organizations to quickly create videos that can be used across websites, e-commerce channels, social media, events, and more.

    In addition, Acquia has expanded the AI-driven features available directly within Acquia DAM that make it easier to manage, find, and share video and image assets. AI Video Transcription now enables users to add an AI-generated video transcript that is stored on the video’s asset digest page, eliminating the need to send videos to a separate transcription service. The transcripts are time-stamped and available via general and advanced searches within the DAM, and can also be downloaded. Also, Automated Color Filtering removes human error that can arise in manual tagging by using AI to analyze the color profile of an image and provide filtering and search of specific HEX values, without any administrator work required.

    “AI creates new opportunities for creatives, content authors, and marketers to drive efficiency and create immersive digital experiences that drive greater customer engagement,” said Jake Athey, Vice President of Go-To-Market and Sales for Acquia DAM & PIM. “Our latest innovations accelerate campaign delivery by empowering teams to create content more easily, organize assets more accurately, and find relevant assets more quickly. They are just the start of a steady stream of forthcoming innovations that distinguish Acquia DAM for its ability to consistently increase business value.”

    About Acquia
    Acquia empowers ambitious digital innovators to craft the most productive, frictionless digital experiences that make a difference to their customers, employees, and communities. We provide the world’s leading open digital experience platform (DXP), built on open source Drupal, as part of our commitment to shaping a digital future that is safe, accessible, and available to all. With Acquia Open DXP, you can unlock the potential of your customer data and content, accelerating time to market and increasing engagement, conversion, and revenue. Learn more at https://acquia.com.

    All logos, company, and product names are trademarks or registered trademarks of their respective owners.

    Contact:
    Matt Krebsbach
    SVP, Thought Leadership & Brand Awareness
    pr@acquia.com

    The MIL Network

  • MIL-OSI: Trust Stamp Enhances Biometric Security with Palm-Enhanced Cryptographic Solution

    Source: GlobeNewswire (MIL-OSI)

    Atlanta, GA, Oct. 23, 2024 (GLOBE NEWSWIRE) — Trust Stamp (Nasdaq: IDAI), a global provider of advanced identity solutions, is pleased to announce the launch of a pioneering research initiative aimed at expanding its biometric cryptosystem, Stable IT2, to include contactless palm authentication. The Biometric Secure Module (BSM) project will further enhance security by integrating face and palm biometrics, providing a more resilient and privacy-centric authentication system.

    Cyber-crime is on the rise, with global costs projected to reach $10.5 trillion by 2025. Trust Stamp’s BSM project aims to address this growing concern by developing a biometric cryptosystem that offers high-entropy, secure authentication without the need to store sensitive biometric data. This ensures users’ data remains protected even in the event of a device breach, as no cryptographic keys are stored directly on the device.

    Project Biometric Secure Module (BSM) financed by Xjenza Malta, through the FUSION: R&I Technology Development Programme Lite, will span 18 months, with a start date of November 1, 2024. The funding covers 75% of the project cost, with the company contributing 25% from its own resources. By leveraging Trust Stamp’s proprietary Stable IT2 algorithm, the BSM will generate cryptographic keys directly from facial and palm biometric features. This innovative approach maintains high security while minimizing the risks associated with device compromises.

    Prof. Norman Poh, Chief Science Officer of Trust Stamp, emphasized the privacy advantages of this approach, stating, “By utilizing palm biometrics, we can generate secure keys from a biometric modality that is less publicly exposed than facial features. This provides an added layer of protection against unauthorized access.”

    Prof. Reuben Farrugia, Research Director at Trust Stamp, outlined the significance of the research, noting that this project aims to deliver a software development kit (SDK) for Android devices. This SDK will allow integration of the Stable IT2 process into mobile applications, enabling secure on-device authentication. Additionally, the development of Trust Stamp’s Orchestration Layer will provide seamless access to helper data, facilitating user-friendly biometric authentication.

    Trust Stamp’s BSM project represents a significant advancement in the field of biometrics, offering a robust solution that aligns with industry standards such as the FIDO Alliance’s recommendations. With the combination of face and palm recognition, Trust Stamp is poised to redefine digital identity security, particularly for financial institutions, digital wallets, and identity access management providers.

    About Trust Stamp: Trust Stamp is a global provider of AI-powered identity verification and authentication solutions. With a focus on privacy-first security, Trust Stamp offers innovative biometric technology to enhance digital identity management. For more information, visit http://www.truststamp.net.

    About Xjenza Malta: Xjenza Malta is the government agency responsible for promoting and coordinating scientific research, technological innovation, and science communication in Malta.

    Inquiries                                                                                                     Email: dgrima@truststamp.net
    Trust Stamp

    David Grima      
    Director of Product Innovation, Trust Stamp

    Safe Harbor Statement: Caution Concerning Forward-Looking Remarks 

    All statements in this release that are not based on historical fact are “forward-looking statements,” including within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The information in this announcement may contain forward-looking statements and information related to, among other things, the company, its business plan and strategy, and its industry. These statements reflect management’s current views with respect to future events-based information currently available and are subject to risks and uncertainties that could cause the company’s actual results to differ materially from those contained in the forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company does not undertake any obligation to revise or update these forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events.

    The MIL Network

  • MIL-OSI: Vimeo Delivers Spatial App Experience Built for Apple Vision Pro Enabling Users to View, Upload, and Share Spatial Videos

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) — Vimeo (NASDAQ: VMEO), the world’s most innovative video experience platform, today announced the launch of its groundbreaking app for Apple Vision Pro. This immersive app brings viewers into the content and empowers Vision Pro users to view, upload, and share their spatial videos with others to enjoy. The free app is now available to download on the visionOS App Store.

    With its ability to add remarkable depth and dimension to a scene, spatial video delivers an innovative way to tell powerful stories, as it offers a more engaging and immersive experience for both personal and professional use cases. Spatial videos can be recorded on Apple Vision Pro, the iPhone 16 line, iPhone 15 Pro and iPhone 15 Pro Max. Canon has also announced the development of a new stereoscopic lens, the RF-S7.8mm F4 STM DUAL Lens, compatible with the popular EOS R7 camera body that will capture gorgeous spatial video.

    With the Vimeo app for Vision Pro, users can relive previous moments and experiences in ways never before possible, or explore the growing library of content from the Vimeo community. After capturing spatial video, users can upload their content and share it privately or with the Vimeo community. Users can upload and catalog their spatial videos to their Vimeo library from the Vimeo app for iOS, visionOS, or vimeo.com. Professional content creators and video pros also gain an innovative new way to tell stories and engage with their audiences. Businesses can leverage spatial videos to bring their customers to new places, provide immersive training experiences for their employees, and even showcase new products in a truly unique way. Apple has announced an update to Final Cut Pro later this year that will enable creators to edit spatial videos on their Mac and add dynamic titles and effects to their projects.

    “Vimeo has always been known for supporting video creators with the highest quality formats and most innovative technologies to tell their stories,” said Philip Moyer, CEO at Vimeo. “The launch of our Apple Vision Pro app marks a significant milestone in our ongoing mission to push the boundaries of video experiences. This kind of spatial content is the future of storytelling, and we’re proud to be at the forefront of this revolution.”

    To celebrate the launch of its Vision Pro app, Vimeo has partnered with award-winning filmmaker and Staff Pick winner Jake Oleson to create exclusive content that demonstrates the experiences made possible by spatial video, and to inspire others to experiment with it themselves.  

    For more information and to download the Vimeo App on the visionOS App Store, please click here.

    About Vimeo
    Vimeo (NASDAQ: VMEO) is the world’s most innovative video experience platform. We enable anyone to create high-quality video experiences to better connect and bring ideas to life. We proudly serve our community of millions of users – from creative storytellers to globally distributed teams at the world’s largest companies – whose videos receive billions of views each month. Learn more at http://www.vimeo.com.

    Contact:
    Frank Filiatrault
    Director of Communications
    frank.filiatrault@vimeo.com

    The MIL Network

  • MIL-OSI: Global Manufacturer and Distributor Chooses Bridgeline’s AI-Powered HawkSearch

    Source: GlobeNewswire (MIL-OSI)

    WOBURN, Mass., Oct. 23, 2024 (GLOBE NEWSWIRE) — Bridgeline Digital, Inc. (NASDAQ: BLIN), a provider of AI-driven marketing technology, announced a leading manufacturer and distributor of life safety gear, equipment, and training for first responders and law enforcement selected HawkSearch to improve their on-site search and merchandising powered by Salesforce Commerce Cloud.

    The distributor will use HawkSearch to enhance website performance by delivering a more tailored search experience. They were particularly drawn to features like advanced merchandising for promoting or boosting specific products, burying out-of-stock items, and adjusting ranking and sort order. The scope also includes incorporating Instant Engage for surfacing trending items, categories, and content as soon as the user clicks on the search box.

    HawkSearch will also power product category landing pages for consistency between browsing and searching, along with natural language search capabilities. These enhancements will help deliver a more engaging customer experience, aligning with marketing goals and improving traffic, conversion rates, and order values.

    Ari Kahn, CEO of Bridgeline, said, “We’re excited to support this global leader in optimizing their search experience. HawkSearch will enhance their digital performance and help achieve key business outcomes.”

    About Bridgeline Digital

    Bridgeline helps companies grow online revenue by increasing traffic, conversion rates, and average order value. To learn more, please visit http://www.bridgeline.com.

    Contact:
    Danielle Colvin
    SVP of Marketing
    Bridgeline Digital
    press@bridgeline.com

    The MIL Network

  • MIL-OSI: One Stop Systems to Report Third Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    ESCONDIDO, Calif., Oct. 23, 2024 (GLOBE NEWSWIRE) — One Stop Systems, Inc. (“OSS” or the “Company”) (Nasdaq: OSS), a leader in rugged Enterprise Class compute for artificial intelligence (AI), machine learning (ML) and sensor processing at the edge, announced today that the Company will release its third quarter 2024 financial results before the market opens on Wednesday, November 6, 2024. A webcast and conference call will be held that same day at 10:00 a.m. ET to review the Company’s results.

    Conference Call and Webcast

    Domestic: 1-800-717-1738
    International: 1-646-307-1865
    Conference ID: 13748 (required for entry)
    Webcast:  https://viavid.webcasts.com/starthere.jsp?ei=1692609&tp_key=bc360380ca

    Conference Call Replay

    Domestic: 1-844-512-2921
    International: 1-412-317-6671
    Passcode: 1113748

    A replay of the call will be available after 1:00 p.m. ET on November 6, 2024, through November 20, 2024.

    About One Stop Systems
    One Stop Systems, Inc. (Nasdaq: OSS) is a leader in AI enabled solutions for the demanding ‘edge’. OSS designs and manufactures Enterprise Class compute and storage products that enable rugged AI, sensor fusion and autonomous capabilities without compromise. These hardware and software platforms bring the latest data center performance to harsh and challenging applications, whether they are on land, sea or in the air.

    OSS products include ruggedized servers, compute accelerators, flash storage arrays, and storage acceleration software. These specialized compact products are used across multiple industries and applications, including autonomous trucking and farming, as well as aircraft, drones, ships and vehicles within the defense industry.

    OSS solutions address the entire AI workflow, from high-speed data acquisition to deep learning, training and large-scale inference, and have delivered many industry firsts for industrial OEM and government customers.

    As the fastest growing segment of the multi-billion-dollar edge computing market, AI enabled solutions require-and OSS delivers-the highest level of performance in the most challenging environments without compromise.

    OSS products are available directly or through global distributors. For more information, go to http://www.onestopsystems.com. You can also follow OSS on X, YouTube, and LinkedIn.

    Forward-Looking Statements
    One Stop Systems cautions you that statements in this press release that are not a description of historical facts are forward-looking statements. These statements are based on the company’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by One Stop Systems or its partners that any of our plans or expectations will be achieved. Actual results may differ from those set forth in this press release due to the risk and uncertainties inherent in our business, including risks described in our prior press releases and in our filings with the Securities and Exchange Commission (SEC), including under the heading “Risk Factors” in our latest Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

    Media Contacts:
    Robert Kalebaugh
    One Stop Systems, Inc.
    Tel (858) 518-6154
    Email contact

    Investor Relations:
    Andrew Berger
    Managing Director
    SM Berger & Company, Inc.
    Tel (216) 464-6400
    Email contact

    The MIL Network

  • MIL-OSI: Global Cloud Storage Market Expected to Reach $234 Billion By 2028 as Tech Stocks Chase Big Opportunities in Big Data

    Source: GlobeNewswire (MIL-OSI)

    PALM BEACH, Fla., Oct. 23, 2024 (GLOBE NEWSWIRE) — FN Media Group News Commentary – The cloud storage market is witnessing significant growth due to the expanding realms of IoT and big data. Cloud storage services offer an agile, flexible, and scalable model for data storage on the Internet, managed and operated by service providers. This model provides enterprises with advantages such as rapid deployment, scalability, reduced CAPEX, and uninterrupted business continuity. A report from MarketsAndMarkets projected that the global Cloud Storage Market size is expected to grow to USD $234.9 Billion by 2028 at a Compound Annual Growth Rate (CAGR) of 18.8% during the forecast period. The report said: “The rising investments by governments and investors in tailored Cloud Storage solutions offerings along with the increasing need for flexible, scalable, efficient storage and disaster recovery, backup solutions and services, are expected to drive the market growth. The demand across enterprises worldwide for Cloud Storage solutions in a shift to cloud-based technologies from on premises is expected to drive the market growth. Surge in demand to provide remote work force with omnipresent access to data and files has been a key driving factor to foster market adoption largely.” Active tech companies in the markets this week include: Scope Carbon Corp. (OTCQB: SCPCF) (CSE: SCPE), Oracle Corporation (NYSE: ORCL), Snowflake (NYSE: SNOW), NVIDIA Corporation (NASDAQ: NVDA), Advanced Micro Devices, Inc. (NASDAQ: AMD).

    MarketsAndMarkets continued: “Based on use cases, Backup & Recovery will hold the highest market share in the Cloud Storage market during the forecast period. Backup & Recovery is crucial in safeguarding data and ensuring business continuity. These applications are purpose-built to address the unique challenges of modern, dynamic, and often distributed IT environments. By seamlessly integrating with cloud technologies and containerized workloads, they provide a layer of resilience that protects data against loss, corruption, or disasters. These solutions enable organizations to efficiently create backups, perform granular recoveries, and maintain data integrity, thereby supporting cloud applications and services reliable and uninterrupted operation. In an era where data is a paramount asset, Backup & Recovery applications in cloud storage are indispensable for mitigating risks and ensuring the availability and integrity of critical information.”

    Scope Carbon Corp. (CSE: SCPE) (OTCQB: SCPCF) Launches Subscription Model for Round-Trip Encrypted, Quantum-Resilient Cloud Storage for Individuals and Small Businesses Scope Carbon Corp. (“Scope” or the “Company”) is pleased to announce the official launch of its subscription model, now offering individuals and small businesses full access to its industry-leading round-trip encrypted and quantum-resilient decentralized cloud storage solutions.

    This launch builds on Scope Technologies’ commitment to providing top-tier, next-generation data security. With the QSE (Quantum Security Entropy) platform, individuals and small businesses can now leverage the same advanced encryption and decentralized storage infrastructure that Scope delivers to mid-sized and enterprise clients, ensuring their data remains safe from current and future cyber threats. The platform is designed for seamless scalability, allowing users to expand their storage and security needs as they grow, without compromising performance or protection. Additionally, QSE’s efficiency-driven model ensures competitive pricing, reflecting our ability to deliver premium security solutions with exceptional value. Readers are encouraged to visit Scope Technologies’ QSE platform at: https://www.qse.group/#services

    A New Era of Data Security for Individuals and Small Businesses

    Following the successful completion of platform updates and closed-group testing, individuals and small business users now have access to QSE’s cloud storage services, featuring:

    • Quantum-Proof Encryption: Utilizing quantum entropy to generate encryption keys that remain unbreakable, even by future quantum computing power.
    • Immutable, Decentralized Storage: A decentralized infrastructure ensures data is protected from ransomware, over-encryption, or tampering, offering a significant advantage over traditional cloud backups.
    • Seamless Integration: Easy-to-use APIs allow for quick setup and smooth integration with existing data systems, providing flexibility and scalability.
    • Accessible Pricing Plans: Tiered subscription options make enterprise-grade security affordable and accessible for both individuals and small businesses.

    “Data protection should not be a luxury,” said Sean Prescott, Founder and CTO of Scope Technologies Corp. “With this launch, we’re making the same round-trip, quantum-resistant encryption and decentralized storage vaults available to individuals and small businesses that we already provide to mid-sized and enterprise corporations. Now everyone can protect their data from today’s risks and the future challenges posed by quantum computing.” CONTINUED… Read this full release and more for Scope Technology at: https://www.financialnewsmedia.com/news-scpe/

    In other tech industry news of interest:

    Oracle Corporation (NASDAQ: ORCL) – To ease patient settlement and payment reconciliation, Oracle recently announced Oracle Health Payments. With the end-to-end payment solution, including gateway routing, processing, and acquiring under a single agreement, healthcare facilities can help reduce costly, unexpected service fees. It also makes it easier for patients to cover a copay, elective surgery, or an existing bill using a variety of payment options including, traditional chip and pin pay methods, or simply tapping to pay with the latest digital options including Apple Pay, Google Pay, and Samsung Pay.

    Payment processing costs can vary widely between payment providers, card brands, or payment types. Compliance and service fees can also make it difficult for healthcare facilities to estimate and factor these costs into their financial planning. Built on Oracle Cloud Infrastructure (OCI), Oracle Health Payments offers a payment card industry (PCI)-compliant, fixed-rate pricing model with no additional service or convenience fees. Integrated with Oracle’s point-of-sale hardware and Oracle Health Patient Accounting, Oracle Health Payments uses end-to-end encryption and tokenization, empowering health systems to securely capture payments and automate revenue posting, which helps reduce fraud and collection costs.

    Snowflake (NYSE: SNOW), the AI Data Cloud company, recently announced the launch of the AI Data Cloud for Travel and Hospitality, uniting Snowflake’s data platform, AI capabilities, and industry-specific solutions to deliver best-in-class data insights for the travel and hospitality industry. Snowflake empowers airlines, hotels, cruise lines, and travel technology providers to harness data and artificial intelligence to improve operations and power five-star customer experiences across the sector.

    As the travel and hospitality industry transitions from recovery to stable growth, businesses face new challenges and opportunities. Snowflake is uniquely positioned to support this growth, offering a unified platform that streamlines AI and ML development, providing top-tier security and governance capabilities, and democratizing data access. With robust data collaboration capabilities and effortless scalability, Snowflake enables organizations to harness their data’s full potential.

    NVIDIA Corporation (NASDAQ: NVDA) recently announced that it has contributed foundational elements of its NVIDIA Blackwell accelerated computing platform design to the Open Compute Project (OCP) and broadened NVIDIA Spectrum-X™ support for OCP standards.

    At this year’s OCP Global Summit, NVIDIA will be sharing key portions of the NVIDIA GB200 NVL72 system electro-mechanical design with the OCP community — including the rack architecture, compute and switch tray mechanicals, liquid-cooling and thermal environment specifications, and NVIDIA NVLink™ cable cartridge volumetrics — to support higher compute density and networking bandwidth.

    NVIDIA has already made several official contributions to OCP across multiple hardware generations, including its NVIDIA HGX™ H100 baseboard design specification, to help provide the ecosystem with a wider choice of offerings from the world’s computer makers and expand the adoption of AI.

    Advanced Micro Devices, Inc. (NASDAQ: AMD) and Intel Corp. (INTC) recently announced the creation of an x86 ecosystem advisory group bringing together technology leaders to shape the future of the world’s most widely used computing architecture. x86 is uniquely positioned to meet customers’ emerging needs by delivering superior performance and seamless interoperability across hardware and software platforms. The group will focus on identifying new ways to expand the x86 ecosystem by enabling compatibility across platforms, simplifying software development, and providing developers with a platform to identify architectural needs and features to create innovative and scalable solutions for the future.

    For over four decades, x86 has served as the bedrock of modern computing, establishing itself as the preferred architecture in data centers and PCs worldwide. In today’s evolving landscape—characterized by dynamic AI workloads, custom chiplets, and advancements in 3D packaging and system architectures—the importance of a robust and expanding x86 ecosystem is more crucial than ever.

    About FN Media Group:

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    DISCLAIMER: FN Media Group LLC (FNM), which owns and operates FinancialNewsMedia.com and MarketNewsUpdates.com, is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with any company mentioned herein. FNM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release. FNM is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. For current services performed FNM has been compensated forty nine hundred dollars for news coverage of the current press releases issued by Scope Technology Corp. by a non-affiliated third party. FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

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    The MIL Network

  • MIL-OSI Global: Why the margin of error matters more than ever in reading 2024 election polls – a pollster with 30 years of experience explains

    Source: The Conversation – USA – By Doug Schwartz, Director of the Quinnipiac Poll, Quinnipiac University

    A political opinion poll aims to get a representative sample of the wider public. borzaya/iStock / Getty Images Plus

    In just about any discussion of a poll about the very close presidential race between Vice President Kamala Harris and former President Donald Trump, you’ll hear the phrase “within the poll’s margin of error.” Those words signal that it is a tight race with no clear leader, even if one of them has a slightly larger percentage of support, like 48% to 47%.

    As the director of the Quinnipiac University Poll, which has been taking the pulse of the public on policy issues and elections for the past 30 years, I’ve noted that people have been paying more attention to this technical term since at least 2016.

    In that year, some polls in Florida, for example, indicated that Hillary Clinton was just a couple of percentage points ahead of Trump. Journalists and the public largely – and incorrectly – understood that apparent popular-vote lead to mean Clinton was likely to win.

    But those 1 or 2 percentage points were within their polls’ margins of error. And Clinton lost Florida. In a poll about a political race, the margin of error tells readers the likely range of results of an election.

    What is a margin of error?

    A poll is one or more questions asked of a small group of people and used to gauge the views of a larger group of people. The margin of error is a mathematical calculation of how accurate the poll results are – of how closely the answers given by the small group match the views held by the larger group.

    If everyone in the larger group were polled, there would be no margin of error. But it’s complicated, difficult and expensive to contact that many people. The U.S. Census Bureau spent US$13.7 billion over several years in its most recent effort to count every person in the United States every 10 years, and it still wasn’t able to include exactly everyone.

    Pollsters don’t have that kind of time – or money – so they use smaller samples of the population. They seek to identify representative samples in which all members of the larger group have a chance to be included in the poll.

    The group size is important

    The calculation of how close the poll is to the views of the larger population is based on the size of the group that is polled.

    For example, a sample of 600 voters will have a larger margin of error – about 4 percentage points – than a sample of 1,000 voters, which has a margin of error of just over 3 percentage points.

    The way the sample is chosen also matters: In 1936, the Literary Digest magazine polled people on the presidential election by mailing surveys to telephone owners, car owners and country club members. Everyone in this group was relatively affluent, so they were not representative of the whole U.S. voting population. Calculating a margin of error would have been meaningless because the sample did not capture all segments of the population.

    The larger the sample size, the smaller the margin of error.
    Zieben007 via Wikimedia Commons, CC BY-SA

    A concrete example

    Let’s use an example of how to understand the margin of error. If a poll shows that 47% of the polled group support Candidate A, and the margin of error is plus or minus 3 percentage points, that means that the percentage in the population supporting Candidate A is likely to be between 44% (47 minus 3) and 50% (47 plus 3).

    One quick note: Most polls report margins of error alongside another technical term, “confidence interval.” In the most rigorous reporting of polls, you might see a sentence near the end that says something like “The margin of error is plus or minus 3 percentage points, at a 95% confidence interval.” What all that means is this: Imagine if 100 different random samples of the same size were selected from the larger group, and then asked the same questions in the poll. The 95% confidence interval means that 95% of the time, those other polls’ responses would be within 3 percentage points of the answers reported in this one poll.

    Comparing support between candidates

    The concept of margin of error gets more complex when looking at the differences in support between two candidates. If a margin of error is plus or minus 3 percentage points, the margin of error on the difference between them is about double – or 6 percentage points, in this example.

    That’s because the margin of error here is a combined one, and refers to not just the percentage voting for Candidate A but also to the percentage voting for the other candidate.

    To look back at 2016 again, the final Quinnipiac University Poll in Florida before Election Day showed Clinton with 46% support and Trump with 45% support. The margin of error was 3.9 percentage points, which meant Clinton was likely to get between 42.1% and 49.9% of the vote, and Trump was likely to get between 41.1% and 48.9% of the vote.

    The actual result was that Trump won Florida with 48.6%, as compared with Clinton’s 47.4%. Those results were within our poll’s margin of error, meaning we were correct to declare it “too close to call” – and we would have been wrong to say Clinton was ahead.

    2024 will be a close election

    In the current election cycle, many media reports about polls are not including information about the margin of error.

    Leaving out that information, or downplaying its significance, may help media outlets provide a quick, simple picture about the state of the race. Technology can seem precise in the modern age of the internet and artificial intelligence.

    But polling is not as precise. It is an inexact science. It’s a pollster’s job to capture snapshots of the complexities of human nature at a particular time. People’s minds can change, and new information can arise as the campaigns unfold.

    With the presidential election in its final weeks, our polls have been finding a fairly tight and steady race, with most voters telling us their minds are made up. Because the difference between the presidential candidates is within the margin of error in swing states, the election polling in autumn 2024 is telling Americans to hold their breath and make sure they vote, because it is likely to be a squeaker.

    Doug Schwartz is affiliated with the American Association of Public Opinion Research (AAPOR).

    ref. Why the margin of error matters more than ever in reading 2024 election polls – a pollster with 30 years of experience explains – https://theconversation.com/why-the-margin-of-error-matters-more-than-ever-in-reading-2024-election-polls-a-pollster-with-30-years-of-experience-explains-240633

    MIL OSI – Global Reports

  • MIL-OSI Europe: Debates – Monday, 21 October 2024 – Strasbourg – Provisional edition

    Source: European Parliament

    Verbatim report of proceedings
     413k  815k
    Monday, 21 October 2024 – Strasbourg Provisional edition

       

    IN THE CHAIR: ROBERTA METSOLA
    President

     
    1. Resumption of the session

     

      President. – I declare resumed the session of the European Parliament adjourned on Thursday, 10 October 2024.

     

    2. Opening of the sitting

       

    (The sitting opened at 17:03)

     

    3. Statements by the President

     

      President. – Dear colleagues, on the results of the presidential election and referendum in Moldova, the people in Moldova have chosen their future: they chose hope, stability, opportunity. They chose Europe.

    (Applause)

    The European Parliament strongly condemns any activities and interferences in Moldova’s presidential election and constitutional referendum on EU integration.

    We are proud to be one of Moldova’s strongest allies and supporters. We understand that Moldova’s future lies within the European Union and we fully support its EU accession path.

    President Maia Sandu and her government have already made remarkable progress in implementing reforms. And while the road ahead may not always be easy, I want to assure our European Moldovan friends that the European Parliament will continue to be with them every step of the way.

    Also, dear colleagues, on 16 October we marked 7 years since the brutal assassination of Daphne Caruana Galizia, a Maltese investigative journalist who exposed corruption and organised crime. Those who thought they could silence her were wrong. In fact, her work sparked a movement that echoes in every corner where we pursue a Europe that protects journalists, that respects the rule of law.

    I am grateful to have known Daphne beyond her writing: as a woman battling the odds; as a mother who was so proud of the men her boys grew into; as a daughter, wife and sister who wanted more from her country. And she raised the bar for all of us in politics. But most of all, today I think about how we must keep Daphne’s memory alive; how the European Parliament will keep pushing for the truth, for justice and for accountability.

    It is for this reason that the European Parliament is proud to be hosting the fourth edition of the Daphne Caruana Galizia Prize for outstanding journalism. And I take this moment to encourage you to attend the award ceremony this Wednesday in the Daphne Caruana Galizia Press Room, to honour the bravery of all those who continue to carry her legacy forward.

    This House remembers her and we honour her legacy.

    (Applause)

     

    4. Approval of the minutes of the previous sitting

     

      President. – The minutes and the texts adopted of the sitting of 10 October 2024 are available. Are there any comments? No? The minutes are therefore approved.

     

    5. Composition of Parliament

     

      President. – The competent authorities of Poland have notified me of the election of Hanna Gronkiewicz-Waltz to the European Parliament, replacing Marcin Kierwiński with effect from 10 October 2024.

    I wish to welcome our new colleague and recall that she takes her seat in Parliament and its bodies in full enjoyment of her rights, pending the verification of her credentials.

     

    6. Composition of committees and delegations

     

      President. – The PfE Group has notified me of decisions relating to changes to appointments within the committees and delegations. These decisions will be set out in the minutes of today’s sitting and take effect on the date of this announcement.

     

    7. Negotiations ahead of Council’s first reading (Rule 73)

     

      President. – The TRAN Committee has decided to enter into interinstitutional negotiations ahead of Council’s first reading, pursuant to Rule 73 of the Rules of Procedure.

    The positions adopted by Parliament at first reading, which constitute the mandates for those negotiations, are available on the plenary webpage, and their titles will be published in the minutes of this sitting.

     

    8. Corrigenda (Rule 251)

     

      President. – The competent committees have transmitted nine corrigenda to texts adopted by Parliament.

    Pursuant to Rule 251, these corrigenda will be deemed approved unless, no later than 24 hours after their announcement, a request is made by a political group or Members reaching at least the low threshold that they be put to the vote.

    The corrigenda are available on the plenary webpage. Their titles will be published in the minutes of this sitting.

     

    9. Signing of acts adopted in accordance with the ordinary legislative procedure (Rule 81)




     

      Marc Botenga (The Left). – Madame la Présidente, vous savez que, sur la base de l’article 188, les députés européens gagnent facilement 14 000 euros par mois. Pourtant, chaque année, notre groupe demande de baisser ces salaires pour que les députés soient un tout petit peu plus en phase avec la réalité des travailleurs, qui, eux, peinent à boucler les fins de mois. Chaque année, ce vote permet de démasquer les députés qui, d’une part, prêchent l’austérité et la misère pour les travailleurs, mais, d’autre part, s’octroient, eux, un salaire généreux de 14 000 euros par mois.

    Mais aujourd’hui, en coulisses, vous nous dites que ce n’est plus acceptable et vous voulez empêcher ce vote – je sais bien, chers collègues, que vous ne voulez pas que l’on touche à vos privilèges. Vous nous dites que ces revenus sont garantis par d’autres textes. Mais justement, en refusant aujourd’hui de voter le budget nécessaire, nous pouvons ouvrir cette porte pour faire le premier pas et revoir tout cela.

    L’année dernière, vous aviez permis ces amendements. Qu’est-ce qui a changé, qui ne serait plus vrai aujourd’hui? Serait-ce parce que la campagne électorale est terminée? Madame la Présidente, je vous prie, revoyez cette décision. La politique sert à servir et non à se servir.

     
       

     

      President. – Thank you very much, Mr Botenga. I will give you the explanation.

    You file a point of order under Rule 188, which is actually a point of order, but I will answer you. The amendments tabled by your group on the lines and figures of the general budget 2025 concerning salaries and allowances, etc., have been examined and declared inadmissible, simply because we want to apply the rules.

    And I will tell you why: it is because they are in contradiction with the existing regulations, in other words, the Statute for Members of the European Parliament and the Council Regulation determining the emoluments of EU high-level public office holders, based on Articles 243 TFEU and 223 TFEU. So the right procedure would be to call on the responsible institutions to amend the mentioned regulations.

    However, you will have seen as well, in this spirit, that the corresponding amendment that you tabled to the resolution on the general budget calling for this change has been declared admissible, because that can be declared admissible.

     
       

     

      João Oliveira (The Left). – Senhora Presidente, quero expressar o meu total desacordo com a sua decisão discricionária e sem fundamento de recusar, sem justificação, a proposta de debate sobre o agravamento da situação humanitária em Gaza, na sequência das declarações do coordenador especial da ONU para o processo de paz no Médio Oriente. Na quinta-feira, a ONU declarou que mais de um milhão e oitocentos mil palestinianos enfrentam fome extrema. Ontem mesmo, aquele coordenador especial da ONU emitiu um comunicado falando de pesadelo, cenas horripilantes na zona norte, ataques israelitas implacáveis e uma crise humanitária cada vez pior e, cito, que «nenhum lugar é seguro em Gaza», condenando os contínuos ataques contra civis. Aquele responsável disse: «A guerra tem de parar agora».

    Apesar de tudo isto ter acontecido em condições que permitiam que o debate aqui fosse feito, a senhora presidente recusou aceitar sequer a proposta. Desafio-a a colocar à votação este pedido de debate. Enquanto continuarem a chover bombas em Gaza, a morrer crianças, mulheres e civis, este debate será sempre urgente e imprescindível.

     
       


     

      Virginie Joron (PfE). – Madame la Présidente, chers collègues, chers démocrates, chers légalistes, je souhaite faire un rappel au règlement. Son article 219 prévoit le respect de l’égalité des genres dans la composition des bureaux des commissions. Cette égalité n’est pourtant pas respectée, pas plus que le résultat des urnes, c’est-à-dire de la démocratie.

    En effet, Madame la Présidente, vous avez accepté de ne pas respecter la démocratie en accordant une dérogation au principe de l’égalité des genres pour M. Weber dans plusieurs bureaux de commissions, ignorant par là même plus de 20 millions de nos électeurs.

    Comment pouvez-vous accepter que la commission CONT, qui contrôle le budget de l’Union européenne – et qui doit donner l’exemple –, continue de ne pas respecter nos règles? Vous souhaitez exporter l’égalité des genres jusqu’au Kazakhstan ou encore lui consacrer une semaine en décembre, mais ce principe n’est déjà pas respecté au sein de la commission CONT, au cœur même de notre institution. En ne disposant pas d’une quatrième vice-présidence, la composition du bureau de la commission CONT viole notre règlement.

    Madame la Présidente, je vous remercie de faire le nécessaire pour mettre un terme à cette hypocrisie et respecter notre devise, «Unie dans la diversité».

     
       


     

      Manon Aubry (The Left). – Madame la Présidente, chers collègues, ça tombe bien, j’avais envie de vous parler de démocratie et de faire un rappel au règlement sur la base de l’article 154, qui traite des accords interinstitutionnels, pour évoquer l’état des négociations entre l’Union européenne et le Mercosur. Je vais commencer, chers collègues, par une question assez simple: qui trouve normal que le plus important accord de libre-échange jamais conclu par l’Union européenne soit en train d’être signé en catimini, sans que notre Parlement ait la moindre information, quelle qu’elle soit? Allez-y, dites-moi qui est d’accord avec cela et levez la main.

    Vous le voyez bien – et j’ai fait le compte –, cela fait exactement cinq ans que la Commission européenne n’a pas donné ni publié le moindre compte-rendu officiel sur l’état des négociations. Bien entendu, cet accord de libre-échange aura un impact désastreux sur nos agriculteurs, qui souffrent déjà, sur la santé et sur la planète.

    Mes chers collègues, c’est aussi un scandale démocratique. Comment accepter d’être ainsi tenus à l’écart? C’est pourquoi, Madame la Présidente, je vous prierais de demander des comptes à la Commission européenne afin qu’elle nous tienne enfin informés, parce qu’on ne peut pas se laisser ainsi «bananer». Il est temps!

     
       


     

      President. – As you can see, your colleagues agree with you. This is something that has been an outstanding issue and we can put pressure on the incoming Commission to respect the deadlines that we have set.

     

    10. Order of business


     

      Terry Reintke, on behalf of the Verts/ALE Group. – Madam President, dear colleagues, last Friday, an Italian court invalidated the detention of 16 asylum applicants sent to Albania by the Italian Government. Italy is a democracy, with an independent judiciary and courts that can freely rule on existing cases, also to stop illegal actions by the government. Still, members of the ruling far-right coalition, including members of the government, attacked this independent judiciary and the judges that ruled in this case.

    Colleagues, we cannot stay silent on this: rule of law, including separation of powers, is a key fundament of the European Union. We have waited for far too long regarding Hungary to speak up. We cannot make the same mistake again. That is why my group requests a debate with the following title: ‘Commission statement regarding the ruling of the Italian court related to the agreement between Italy and Albania on migration’.

     
       



     

      Tomas Tobé (PPE). – Madam President, I think it is clear and already stated that this request should not be supported. It’s very clear. It’s not about a protocol about Italy and Albania, as you say in what you’re asking for. Also, it’s not even a final decision in the court, and it’s also a decision based on an EU directive that actually will be replaced once the new migration pact is fully adopted.

    I think it’s also about the general question, because we had a request in plenary before, from the Patriots, about another decision. We could, of course, make this Chamber nothing else than debating different court decisions. I think when it comes to migration policy, we should be serious, we should be balanced, and we should use our time to actually debate real things and not only try to make court decisions that you may like or not like to be in favour of them.

    So that is why the EPP will reject this request.

     
       


     

      Fabienne Keller, au nom du groupe Renew. – Madame la Présidente, nous savons que le nouveau pacte sur la migration et l’asile et la politique migratoire ont occupé l’essentiel du Conseil européen de la fin de la semaine dernière. C’est un sujet de préoccupation pour nos concitoyens.

    Nous sommes fiers, tous ici dans cette Chambre, d’avoir adopté un pacte, d’avoir trouvé un équilibre pour traiter la question de la migration illégale, tout en respectant nos valeurs. Nous savons aussi, chers collègues, qu’il nous faudra encore deux années pour le mettre en œuvre. Nous ne pouvons dès lors pas accepter qu’un État membre utilise une voie détournée pour contourner ce que prévoit le pacte et les règles précises que nous avons définies ensemble.

    C’est pourquoi nous proposons de rebondir sur la proposition des Verts et d’ajouter la dimension «mise en œuvre du pacte» dans son ensemble, c’est-à-dire vis-à-vis de ses devoirs, de l’application de ses règles, mais aussi des garanties des droits de l’homme et du respect des droits fondamentaux que nous y avons intégrés. C’est dans cet esprit que nous proposons ce débat amendé.

     
       

     

      President. – Ms Reintke, do you agree with the alternative proposal? So the Green Group does not. Therefore, I will put the original request by the Green Group to a vote by roll call.

    (Parliament rejected the request)

    I now ask Ms Keller: do you want to keep your request? Yes, Ms Keller wants to keep the request, so the proposal from the Renew Group is now put to a vote by roll call.

    (Parliament rejected the request)

    So the agenda remains unchanged.

    The agenda is now adopted and the order of business is thus established.

     

    11. International Day for the Eradication of Poverty (debate)

     

      President. – The first item is the debate on Parliament’s statement on the International Day for the Eradication of Poverty (2024/2881(RSP)).

    Dear colleagues, last week, on 17 October, we marked the International Day of the Eradication of Poverty. Poverty is not inevitable. It is a challenge that we can – and we must – overcome. Across the world, far too many people still struggle. Far too many people do not have access to clean water, to clothing, shelter, health care or education. And far too many people are excluded from society, denied the possibility of a dignified job, not given the opportunities to achieve their potential. Given that 1 in 5 Europeans and 1 in 4 children under the age of 18 in the European Union is at risk of poverty or social exclusion, the reality is as serious as it is alarming.

    Here in the European Parliament, we refuse to be bystanders. We are proud of all the work we have done already in making our Europe a front-liner in the fight against poverty, and yet more work remains. Poverty is a symptom of inequality, and we understand the responsibility that we bear to ensure that every person – no matter who they are or where they come from – has a chance to live with dignity, with purpose.

    This is why the European Parliament is looking forward to seeing the European Union’s first anti-poverty strategy that was announced in the 2024-2029 Political Guidelines of the European Commission. This is a positive step forward. By investing in education, affordable housing and job creation, by ensuring our social safety net works, we can lift millions out of poverty.

    This House will continue turning our policies into concrete action, and we will continue to fight for fairness, for dignity and for opportunity for all.

     
       


     

      Gabriele Bischoff, im Namen der S&D-Fraktion. – Frau Präsidentin, werte Kolleginnen und Kollegen! In der Tat: Wir sprechen inzwischen von 100 Millionen Menschen, die in Europa, einem der reichsten Kontinente, von Armut und sozialer Ausgrenzung bedroht sind; Frau Präsidentin hat es gesagt: mehr als jeder fünfte Mensch hier in Europa. Und dieser Internationale Tag zur Abschaffung der Armut, der muss wirklich ein Weckruf hier sein, weil wir mehr brauchen.

    Ja, wir brauchen eine Armutsstrategie, aber wir brauchen auch konkrete Politiken, und eine davon ist in der Tat, dass wir ein festes Budget von 20 Milliarden in einem eigenen ESF+ für die Kindergarantie brauchen, um die 19 Millionen Kinder – 19 Millionen, denen die Zukunft gestohlen wurde – besser vor Armut zu schützen, und wir brauchen Maßnahmen.

    Aber wir dürfen nicht nur national bleiben, sondern nach den Verträgen ist Armutsbekämpfung auch das Hauptziel der europäischen Entwicklungspolitik. Das muss so bleiben und muss unser Kompass sein zur Bekämpfung der Armut auf der ganzen Welt.

     
       

     

      Malika Sorel, au nom du groupe PfE. – Madame la Présidente, chers collègues, 34 % des Européens renoncent à des soins médicaux, et nombre de jeunes, de nos jeunes, sont en grande souffrance. C’est la tiers-mondisation de nos nations. L’Europe d’Hippocrate, de Pasteur et de Marie Curie n’est même plus capable de soigner les siens, tandis qu’elle érige en dogme la préférence extra-européenne.

    Alors que la pauvreté touche chacune de nos nations, la Commission va verser 1,8 milliard d’euros à la Moldavie. De plus, l’immigration issue des couches sociales les plus pauvres bat des records. Pour Enrico Letta, aucune réforme, aucun progrès ne sera possible sans la participation des citoyens. Cette participation, je vous le dis, est impossible, car ces conditions ne sont pas réunies.

    Relisons Jean-Jacques Rousseau: «Voulons-nous que les peuples soient vertueux? Commençons donc par leur faire aimer la patrie: mais comment l’aimeront-ils si la patrie ne leur accorde que ce qu’elle ne peut refuser à personne?». Nous sommes là au cœur du mal qui détruit l’Europe. Chers collègues, j’aimerais comprendre: est-ce l’indifférence – ou pire: le cynisme – qui conduit à nous lamenter sur une pauvreté que nous organisons?

     
       

     

      Chiara Gemma, a nome del gruppo ECR. – Signora Presidente, onorevoli colleghi, la povertà non è soltanto una questione economica: è una piaga sociale che mina la dignità e la speranza delle persone. Combatterla è un dovere morale e una responsabilità politica che deve impegnarci tutti, senza eccezioni.

    C’è un aspetto che merita una particolare attenzione e che troppo spesso viene trascurato: la condizione delle persone con disabilità, che sono tra le più esposte al rischio di povertà. I dati parlano chiaro: il 28,8% delle persone con disabilità in Europa vive in condizioni di povertà e di esclusione sociale.

    Questo dato è inaccettabile, soprattutto se pensiamo che stiamo parlando di una categoria già vulnerabile, che deve affrontare non solo le difficoltà economiche, ma anche le barriere strutturali, culturali e sociali che la società impone.

    Non possiamo tollerare che in un’Europa che si proclama “paladina dei diritti umani e dell’inclusione”, quasi un terzo delle persone con disabilità viva in condizioni di disagio economico. La nostra forza si misura dalla capacità di includere chi è già più debole.

     
       

     

      Charles Goerens, au nom du groupe Renew. – Madame la Présidente, Monsieur le Commissaire, la lutte contre la pauvreté doit se manifester tant à l’intérieur qu’à l’extérieur de l’Union européenne. Cela étant, la pratique semble confirmer ce propos.

    L’Union européenne n’a certes pas réussi à éliminer la pauvreté, comme chacun de nous le souhaiterait. À sa décharge, rappelons que ses compétences sont insuffisantes pour régler ce problème. Les États membres, par contre, disposent de moyens ô combien supérieurs à ceux dont dispose la Commission. À ce propos, l’on constate que les États membres qui ont de meilleurs résultats en matière de lutte contre la misère chez eux sont souvent les mêmes que ceux qui s’impliquent le plus dans la coopération au développement en faveur des pays du Sud.

    Cette corrélation n’est pas anodine. Elle nous fait penser que la solidarité est indivisible. C’est donc une question de cohérence, une question d’équité, qui s’applique dans le même esprit tant à l’intérieur qu’à l’extérieur de l’Union européenne. Pour appuyer mon propos, il suffit de lire les rapports annuels du Programme des Nations unies pour le développement et d’en comparer les résultats à ceux obtenus en matière de lutte contre la misère au sein des États membres.

     
       


     

      Leila Chaibi, au nom du groupe The Left. – Madame la Présidente, Monsieur le Commissaire, chers collègues, en France, 1 jeune sur 4 vit sous le seuil de pauvreté, et 1 étudiant sur 2 est obligé de sauter un repas par jour. Vous vous souvenez de ces files d’attente interminables devant l’aide alimentaire pendant la pandémie de COVID-19? Ces images, elles avaient fait le tour du monde. C’était il y a quatre ans. Et que s’est il passé depuis? Rien.

    Pourquoi l’Union européenne ne demande-t-elle pas aux gouvernements de proposer le repas à 1 euro pour les étudiants? Pourquoi continuons-nous à agir comme si la pauvreté était un phénomène météorologique, une espèce de catastrophe naturelle? Non, la pauvreté ne tombe pas du ciel. Sans inégalités, il n’y a pas de pauvreté. Bernard Arnault, l’homme le plus riche du monde, a vu sa fortune dépasser les 200 milliards d’euros, soit plus que le PIB de la Slovaquie. Imaginez ce qu’on pourrait faire avec cette somme. On pourrait faire 200 000 hôpitaux, 40 000 écoles.

    Vous voulez agir contre la pauvreté? Taxez les plus riches, taxez les multinationales, allez chercher l’argent là où il est.

     
       

     

      Petar Volgin, от името на групата ESN. – Скъпи колеги, дълго време силните на деня обясняваха, че когато глобализацията окончателно победи, когато бъдат премахнати всички държавни граници и всички държавни пречки пред бизнеса, ние ще станем богати и щастливи. Разказваха ни, че когато милионерът стане милиардер, това ще направи и нас, обикновените хора богати. Защото нали според постулатите на така наречената „трикъл даун” икономика („trickle down economy“) или икономика на просмукването, приливът повдигал всички лодки. Само че действителността се оказа много по-различна.

    Да, богатите ставаха още по-богати, милионерите ставаха милиардери, но лодките на обикновенните хора не се повдигаха, даже много от тях потънаха. Колкото повече държавата минаваше на заден план, толкова повече се увеличаваха неравенствата и бедността. Има само един начин, по който може да бъде преодоляно това. Държавата отново трябва да стане активна. Тя трябва да създаде такива правила, които да помагат на работещите хора да живеят по-добре. Наднационалните институции няма да направят това. Те се грижат за интересите на мега корпорациите. Нужна ни е повече държава и по-малко транснационални институции.

     
       


     

     

      Georgiana Teodorescu (ECR), în scris. – Prin acțiunile sale, Uniunea Europeană s-a declarat responsabilă pentru înverzirea Globului, pentru eliminarea surplusului de carbon, pentru tot ce e „eco” și „bio” la nivel mondial, pentru salvarea migranților, precum și pentru încetarea unor războaie din afara granițelor UE.

    Totuși, când vine vorba de sărăcia în care trăiesc unii dintre europeni, mai ales despre construirea unor programe concrete și asigurarea unui buget corespunzător pentru acest lucru, rămânem la stadiul de discuții frumoase. Iată că marcăm o zi oficială pentru eradicarea sărăciei, în loc să o eradicăm efectiv. În România, unul din cinci cetățeni trăiește sub pragul sărăciei, cifrele fiind mult mai ridicate în rândul tinerilor. Pe acești oameni, ziua internațională a eradicării sărăciei nu îi ajută. Este nevoie de bani și de măsuri concrete.

    Sigur, e onorabil să avem o astfel de zi, nu ne opunem, dar haideți să ne concentrăm mai mult pe fapte și mai puțin pe discursuri pompoase, care au zero efect în asigurarea hranei copiilor săraci ai Europei sau în oferirea unor programe care să-i încurajeze să-și continue studiile.

     

    12. Address by Enrico Letta – Presentation of the report ‘Much More Than a Market’

     

      President. – The next item is the debate on the address by Enrico Letta – presentation of the report ‘Much more than a market’.

    We have today with us former Prime Minister of Italy Enrico Letta to present his report ‘Much more than a market’. Caro Enrico, welcome back to the European Parliament. Your report came at an extremely timely moment.

    As we embark on a new legislative term, this House recognises that the future of Europe will be defined by our ability to make ourselves more competitive; how we are able to grow our economies and pay back our debts, to fuel our innovation and turn seemingly impossible challenges into opportunities, to create jobs and futures with dignity. That is what our people are asking from us. It is why Europeans went to the polls last June, and what our voters are expecting us to deliver on.

    To do all this, we do not need to reinvent the wheel. We already have many tools in place. For over 30 years, the single market has been our Union’s unique growth model, a powerful engine of convergence and our most valuable asset. But we are again at a moment where the single market is in need of a boost.

    The time is now for us to renew our engagement to it, to deepen it, especially when it comes to energy, to finance, telecoms, banking, capital markets and services – to bring it back on par with the needs of the current context.

    Boosting it also means doing more to level the playing field, to reduce excessive bureaucracy and to cut red tape. This is how our single market works best. So, Mr Letta, dear Enrico, the European Parliament is eager to hear your findings and recommendations on how we can bolster our single market and make Europe more competitive.

     
       

     

      Enrico Letta, author of the report ‘Much more than a market’. – Madam President, esteemed Members, I would like to express my deepest gratitude to President Roberta Metsola, the Members of the European Parliament and the groups. It is a particularly emotional moment for me to do so in this Chamber once chaired by David Sassoli. The last time I spoke from this very place was to commemorate him some days after his death. His legacy and his commitment to European values continues to guide and inspire all of us.

    I must also express my deep gratitude to those who commissioned this report and entrusted me with the responsibility to undertake it: the Belgian and Spanish presidencies of the Council of the European Union, along with the President of the Commission and the President of the European Council. It is a great honour for me to be here today, especially after a year of engaging with the European Parliament: more than 20 meetings, groups, committees – the IMCO Committee in particular, subcommittees fostering meaningful dialogue and collaboration.

    This is a decisive moment for the life of the report. The pragmatic proposals it contains can only make a real impact if this very Chamber embraces and advances them.

    This report is not mine. I bear full responsibility for it, of course, but above all, it is the result of a collective exercise developed during a journey that spanned almost the entire European Union, reaching out also to candidate countries for accession and non-EU countries that share with us the single market. Throughout this journey across Europe, I visited 65 cities and took part in over 4 400 meetings, I engaged open social dialogue with all stakeholders. This was not an ideological pursuit, but a pragmatic endeavour. I traveled across Europe and engaged with all stakeholders to find common ground for tangible solutions. And there is one thing I want to stress out here: all the proposals contained in the report do not require Treaty changes. They are very concrete and can be implemented immediately.

    Madame la Présidente, par cette méthode j’ai cherché à honorer l’esprit même du projet d’intégration européenne. Un projet qui s’épanouit dans le dialogue entre les grands et les petits pays, entre les grandes villes et les petites communes, entre des modèles divers de relations industrielles, ainsi qu’entre différentes cultures et histoires. C’était la vision de Jacques Delors, à la mémoire duquel ce rapport est dédié.

    Jacques Delors visait à poser une base solide sur laquelle les grands idéaux européens pourraient prospérer. Il reconnaissait que la passion seule ne pouvait bâtir l’Europe. Il fallait des projets pragmatiques, qui améliorent concrètement la vie des citoyens. Jacques Delors croyait fermement que le succès de l’intégration européenne ne se mesurait pas à l’aune des bénéfices pour les États, mais à l’amélioration de la vie des citoyens. C’est cette approche que j’ai poursuivie et qui m’a inspiré en rédigeant ce rapport.

    The single market has been our greatest achievement. It has fuelled prosperity and it embodies our values. But it was born in a very different era, an era in which both the European Union and the world were smaller, simpler and far less interconnected. More than 20 years ago, we succeeded in integrating our currencies. We created the euro. We integrated this critical dimension which carries important emotional and practical significance for our citizens.

    However, we have not achieved the same level of integration in other key strategic sectors that, paradoxically, would have been far less difficult to integrate: sectors that are now vital for the future of the European economy, in particular. At the inception, three sectors were deliberately kept outside the single market, considered too strategic to extend beyond national borders: finance, electronic communications and energy. In reality, when it comes to these issues, Europe is merely a geographical expression. We are 27, not 1, on telecommunication. We have 27 financial markets, not 1 financial market. The exclusion of these sectors from the completion of the single market was motivated by the belief at that time that domestic control would better serve strategic interests.

    In an increasingly interconnected world and a vastly larger global market, the national dimension is no longer sufficient. It is becoming a ceiling in these sectors. We need to address this paradox, which is one of the main drivers of the current gap with other global powers, and we must act now. Inertia or inaction on this front risks reducing our choices to a single question: whether we want to become a colony of the United States or of China in ten years’ time. Telecommunications, energy and financial markets must be integrated, as we did for the euro. The integration of these sectors is a precondition for our competitiveness and security. There can be no security without independence in connectivity, energy and finance.

    In the report, I propose a roadmap for telecommunications to move from 27 separate markets to 1, from the approximately 80 operators of today to 10, 20 operators. I am not suggesting that we mimic the American or Chinese models here in Europe. These models do not adequately protect consumers as we aim to do in the European Union, but with a single telecoms market, 10, 20 operators can compete while ensuring consumer protection. At the same time, they will be larger and stronger on the global stage. That is what is not happening today with the fragmentation in 27 different markets.

    For energy, the key mission is to invest in interconnections. We must reduce the energy prices in Europe, and the only way is to maximise the diversification of energy sources through a highly interconnected European system. We win through cooperation, not through fragmentation. However, the most important sector to integrate is the financial one, which is in reality today the sum of 27 separate financial markets. This fragmentation is a major factor in Europe’s loss of competitiveness, creating the paradox of having a single currency, the euro, without a fully integrated financial market. We are falling behind the US, which has surged ahead in this sector over the last 15 years, and we are paying a steep price for it. Without a unified financial system, we will be unable to create a new paradigm for economic development, unable to innovate and unable to ensure our security.

    Having unified and significantly larger financial markets would allow Europe to invest in innovation and support its real economy. It would also enable Europe to effectively finance the Green Deal.

    During my journey, one topic has emerged as a priority everywhere: how to support and finance the just, green and digital transition. Let’s be very clear: the Green Deal remains the top priority for the coming years. It is no longer a question of whether Europe will pursue it, but rather how it will be achieved. The legislative term began with a debate on how to approach the Green Deal. In the report, I propose solutions for implementing it that reduce the potential social and economic consequences for Europe. We cannot allow the Green Deal to become a luxury that only the wealthy can afford in our societies. The social and economic dimensions of the Green Deal are essential.

    If we are committed to this, we must also clearly outline how we intend to finance it. Otherwise, we risk engaging in an unrealistic declaration of intent. Without a concrete plan on how to finance it, political backlash and delays are inevitable – outcomes that neither the EU nor the planet can afford. That is why all our energy must be focused on financially supporting the transition. We need an innovative set of tools that can leverage both public and private financing, as both are crucial to meet our massive investment needs.

    There are differing views within the European Union on how to address this funding challenge. We have to be honest: there are often opposing views on this matter. It makes no sense to ignore or hide these differences. But I firmly believe that the single market is not only a fundamental tool, but also the common ground where these diverse positions can converge.

    The initial priority should be to mobilise private capital, where the EU lags behind and has enormous untapped potential. Let me offer two clear as significant examples. Each year, EUR 300 billion of European savings cross the Atlantic to fuel the American financial markets and their real economy. This happens because our financial markets, fragmented as they are, are unable to absorb these resources. But the effect is a paradox. This money ultimately strengthens American companies, which then return to Europe to buy our European companies with our European savers’ money.

    We need a change in mindset. The current lack of integration of Europe’s financial markets is unacceptable. Take also the case of international payment systems: every day, each of us makes several credit or debit card transactions, billions of transactions in total. Yet Italians aren’t happy using a French system. The French aren’t happy using a German system. The Germans aren’t happy to use a Spanish one. As a result, we are all end up being happy to rely on an American system. This example alone highlights the inefficiency of our fragmented approach.

    We have to be pragmatic, not ideological. The fragmentation of Europe’s financial markets plays directly into the hands of other global players, keeping Wall Street and China satisfied and very happy. And this is why, in the report, I proposed the creation of the savings and investments union, building on the incomplete capital markets union. By fully integrating financial markets, the savings and investments union aims to close the gap in a sector where we have enormous potential and provide a concrete tool to finance our ambitions.

    What I want to emphasise is the importance of forging a strong link between the fair, green and digital transition and the financial integration of the single market. One of the main reasons the capital markets union failed to succeed is that it was seen as an end in itself. True financial market integration in Europe will only be achieved when both citizens and policymakers recognise that this integration is not just beneficial for the financial sector, but it is essential for achieving broader, more critical goals such as the fair, green and digital transition.

    Ultimately, progress in the area of private investments will enable us to tackle the role, structures and regulations governing public investments. As I have noted, this is a divisive issue, but it is essential that we confront it openly. Closing the current gap in private investments is a critical first step in moving this debate forward. The massive investment needs of the European Union require both private and public sources of funding. We must strike a balance between different sensibilities and pave the way for a more constructive, integrated and efficient funding strategy.

    This also extends to the debate on state aid. In the report, I have presented some ideas to overcome the current impasse. We need new solutions that can swiftly mobilise targeted national public support for industry, while also preventing fragmentation of the single market and ensuring a level playing field.

    Combining private resources and public investments, considering various instruments, is the only way to achieve a compromise in this chamber and within the European Council. Finance, energy and telecommunications are interconnected and serve as critical boost within a broader concept of security. However, the current geopolitical situation compels us to accelerate the strengthening of our common defence capabilities.

    Greater integration within our common market can serve as a pivotal tool to overcome existing duplications and inefficiencies, yet substantial investments are required. We need to act on this front, and we must do swiftly in order to preserve a crucial level of autonomy in our foreign security and defence policy.

    The EU must continue its unwavering support for Ukraine in its fight for freedom, while also striving to play a pivotal role in ending the conflict in the Middle East. Both are essential steps towards securing long-term peace and stability. To address this significant challenge, we must consider innovative financing mechanisms here as well. In the report, I propose several options, but I believe, and I want to underline here, the most pragmatic and impactful approach involves the use of the ESM, the European Stability Mechanism.

    One of the consequences of fragmentation and the lack of unity in key sectors is the difficulty we are facing in terms of innovation. The EU has not yet developed a robust industry capable of harnessing the benefits of the new wave of technological advancements. As a result, we have become increasingly reliant on external technologies that are now critical to European companies. It is essential that we unlock the full potential of the single market, and to do so, we need to leverage our unexploited common strength in research and development.

    The single market, as we know, was built on four fundamental freedoms: the free movement of goods, services, capital and people. However, this structure is outdated and too closely aligned with the 20th century vision. I believe something is missing in today’s complex and dynamic environment, something intangible yet vital. The economy of the future will be driven by innovation, knowledge and tangible assets, a dimension that is vital to our progress.

    In the report, I argue for the addition of a fifth freedom, one that encompasses a range of essential fields: research, data, skills, knowledge, education. This is possible within the framework of the existing Treaties, as demonstrated in the report. This new fifth freedom will not just be about facilitating the movement of research and innovation outputs; it will embed the drivers of research and innovation at the heart of the single market. With this framework, the EU will not only better position itself as a global leader in setting ethical standards for innovation, but also as a creator and pioneer of new technologies.

    The EU’s ability to innovate depends also on creating an ecosystem where businesses can thrive. This is why the simplification of the single market rules is a central theme. It is a topic that I have heard repeatedly during my travels. However, when we speak of simplification, too frequently, these words are not followed by concrete, actionable proposals. In the report, I present two pragmatic proposals to significantly ease businesses’ access to the benefits of the single market. The first proposal is that EU institutions should unequivocally prioritise the use of regulations over directives when setting single market rules. This would reduce uncertainty and eliminate barriers. The second proposal is the idea of the ’28th regime’ to operate within the single market, a virtual 28th state that companies could choose for smoother, more practical operation at the European level. Both these proposals cover regulatory aspects that help to reduce bureaucracy without in an in any way undermining social standards, on which we do not want to see any race to the bottom. I’m very happy to speak on behalf and in front of the Commission on these topics.

    I conclude, Madam President: Jacques Delors always insisted on the crucial point of the importance of a single market with convergence, and the success of the single market is fundamental. If we add to the freedom to move the freedom to stay, the freedom to stay is fundamental for the people who want to stay in their own regions, with the idea to be allowed to grow up there and to have services of general interest across all the EU regions and also in the periphery regions.

    My conclusion: President von der Leyen’s decision to outline an ambitious plan for reform and relaunch of the European project, drawing on some of these ideas from both my report and that of Mario Draghi opens a window of opportunity we cannot afford to miss. In a time when divisions among us – between countries, political parties and populations are growing – I stand before you to affirm that the single market is what keeps us united. We must rally around it and remain firm in our commitment to the relaunch and completion of the single market. The question before us is clear: if not now, when? Now more than ever, we must defend, strengthen and relaunch the single market.

    I hope that with all these arguments, I have convinced you that, as I wrote in the title of my report, the single market is really much more than a market.

     
       

       

    PRZEWODNICTWO: EWA KOPACZ
    Wiceprzewodnicząca

     
       

     

      President. – Thank you very much, Mr Letta.

     

    13. Empowering the Single Market to deliver a sustainable future and prosperity for all EU citizens (debate)


     

      Andreas Schwab, im Namen der PPE-Fraktion. – Frau Präsidentin, lieber Enrico Letta, Herr Kommissar! Zunächst einmal im Namen der EVP-Fraktion einen großen Glückwunsch für diese intensive Arbeit und auch für die Präsentation der Ergebnisse hier.

    Es ist deutlich geworden, dass der Bericht und auch Sie ganz persönlich, Herr Letta, nochmals in Erinnerung rufen, dass der Binnenmarkt der Motor unseres europäischen Wohlstandes ist. Das finde ich beachtlich, weil natürlich ein Stück weit in den vergangenen Jahren in Vergessenheit geraten ist, dass der wirtschaftliche Austausch – egal ob es um Waren oder Dienstleistungen, egal ob es um Autos oder um Tourismus geht – im Zentrum dessen steht, was uns als Europäerinnen und Europäer reich und viele auch zufrieden macht.

    Deswegen, glaube ich, muss man an dieser Stelle noch einmal sagen: Der Binnenmarkt kann eben am besten entscheiden, was die richtige Leistung ist. Deswegen sollten wir den Bürgerinnen und Bürgern auch die Möglichkeit geben, dass sie entscheiden können in einem offenen Markt in Europa, welche Leistung, welchen Tourismusort, welches Auto sie kaufen können. Dafür ist der Titel vielleicht ein bisschen gefährlich, denn mehr als ein Markt bedeutet ja im Umkehrschluss, dass wir einen echten Binnenmarkt vollständig schon haben. Da, glaube ich, müssen wir sagen, gibt es noch einiges zu tun.

    Es gibt noch einiges zu tun, damit Arbeitnehmerinnen und Arbeitnehmer problemlos von einem Land in ein anderes fahren können. Auch wenn sie das Recht, dort zu bleiben, wo sie sein wollen, behalten sollen, müssen sie die Freiheit genießen können – in der Überarbeitung der Verordnung (EG) Nr. 883/2004 –, die Grenze zu überschreiten. Deswegen, liebe Freundinnen und Freunde, meine Damen und Herren, glaube ich, die Anpassung an eine neue geopolitische Bedingung, die rasche Entbürokratisierung und die Kapitalmarktunion sind sicher Kernforderungen des Berichts, die wir alle unterstützen.

    Ich bin froh, dass Enrico Letta in die gleiche Richtung wie Mario Draghi gegangen ist. Deswegen, glaube ich, gilt es jetzt, dass die Europäische Kommission liefert: ein 28. Regime dort, wo es notwendig ist, eine neue Grundfreiheit und einen einheitlichen Telekommunikationsbinnenmarkt. Es gibt viel zu tun.

     
       

     

      Gabriele Bischoff, on behalf of the S&D Group. – Madam President and dear Enrico Letta, I think it is very important that we still keep a vision of what we could do and what is possible, but where we lack the courage so far to do so. Jacques Delors always said that no one falls in love with the common market. That was true in the past, it’s also true today, but you show that it’s not only a single market, but it is what it does for people, how it enables people. And therefore we really have to boost the common market indeed, but also – in the spirit of Jacques Delors – to always have in mind that this always needs a strong social dimension going for it, if we want to also convince the citizens that it’s in their interest to do so.

    But I also have to say I could comment on many things, because your report is very rich. I want to highlight the fifth freedom, a fair mobility, a new push here for innovation, and to deliver for our citizens.

     
       



     

      Svenja Hahn, im Namen der Renew-Fraktion. – Frau Präsidentin! Liebe Kollegen, wenn wir in der Welt über Werte wie Demokratie reden, hat man uns zugehört, weil wir ein attraktiver Markt waren. Der Binnenmarkt ist das Herzstück der EU – er hat uns wirtschaftlich stark werden und zusammenwachsen lassen. Doch der Binnenmarkt kränkelt vor sich hin, auch weil die Kommission zu wenig für seine Zukunft getan hat.

    Herr Letta gibt uns eine lange To-do-Liste mit: allem voran sind es massive Überregulierung, hohe Energiekosten, Steuern und Abgaben und on top noch ein mindset, das Innovation und unternehmerischem Erfolg misstraut. Das ist Gift für unseren Binnenmarkt, das ist Gift für Wirtschaftswachstum.

    Und wer jetzt die Lösung in neuen Steuern, Umverteilung und Subventionen sieht, ist doch aus der Zeit gefallen. Wir machen die EU nicht fit für die Zukunft mit Ideen von gestern, sondern mit strukturellen Reformen. Für mehr Wirtschaftswachstum brauchen wir jetzt einen radikalen Bürokratieabbau und eine Fastenkur für neue EU-Gesetze. Und es muss Schluss sein mit Protektionismus in unserem Binnenmarkt.

    Wachstum muss das Ziel sein, denn eine starke Wirtschaft schafft Arbeitsplätze, finanziert Bildung und unseren Sozialstaat und sorgt auch dafür, dass wir uns verteidigen können. Ein starker Binnenmarkt ist die Grundlage für unsere Gesellschaft, unseren Zusammenhalt und unsere Sicherheit.

     
       

     

      Anna Cavazzini, im Namen der Verts/ALE-Fraktion. – Frau Präsidentin, liebe Kolleginnen und Kollegen! Lieber Enrico Letta, erst einmal vielen Dank für deinen Bericht und die gute Zusammenarbeit mit diesem Haus, insbesondere mit dem Ausschuss für Binnenmarkt und Verbraucherschutz. Einige Leute sind ja fest davon überzeugt – und Gabriele hat es schon gesagt –, dass man sich nicht in einen EU-Binnenmarkt verlieben kann; einer davon hieß Jacques Delors.

    Aber ich muss schon sagen, dass die aktuelle Binnenmarktgesetzgebung ziemlich attraktiv ist, ein Schlüssel gegen die multiplen Krisen unserer Zeit. Mit dem Gesetz über digitale Dienste und dem Gesetz über digitale Märkte legen wir demokratische Regeln für die Onlinewelt fest. Mit der Gesetzgebung für die Kreislaufwirtschaft und dem Recht auf Reparatur machen wir Nachhaltigkeit zur Norm auf dem Binnenmarkt. Und – das ist wirklich ein Projekt zum Verlieben – das gemeinsame Ladekabel macht endlich Schluss mit unserem Kabelsalat in den Schubladen. Diese Beispiele zeigen, dass sich die Aufgabe, einen gemeinsamen europäischen Markt zu schaffen, in den letzten 30 Jahren weiterentwickelt hat.

    Von der Veränderung des Marktes mit seinen vier Freiheiten – Waren, Dienstleistungen, Kapital und Menschen – nutzen wir ihn heute immer mehr, um unsere gemeinsamen politischen Ziele zu erreichen: Souveränität, die Regulierung von großen Tech-Unternehmen, die Stärkung von Rechten von Verbrauchern und vor allem auch der Schutz unseres Planeten und des Klimas.

    Und das ist auch die Geschichte – finde ich –, die wir den Bürgern heute erzählen müssen. Tatsächlich wird sich niemand in die abstrakte Idee der wirtschaftlichen Integration verlieben. Aber die Bürgerinnen und Bürger in der EU wollen hohe Verbraucherschutzstandards, eine gesunde Wirtschaft, Umweltschutz; und der Binnenmarkt und unsere Binnenmarktregeln können all das liefern, wenn wir es richtig machen.

    Ich finde, wenn wir die Unterstützung unserer Bürger erhalten wollen, muss der Binnenmarkt sie schützen. Riesige Proteste in ganz Europa und zwei gescheiterte EU-Verfassungsreferenden waren damals die Folge, als die Kommission bei der Marktintegration mit der Dienstleistungsrichtlinie zu weit gegangen ist. Dieses Parlament hat damals, 2006, den Vorschlag geändert und ausgewogener gestaltet. Wir haben in den vergangenen Jahren erfolgreich für eine stärkere soziale Dimension des Binnenmarktes gekämpft und müssen dies auch weiterhin tun.

    Ja, viele unsinnige Hürden im Binnenmarkt müssen schnellstens abgebaut werden. Aber Marktintegration darf niemals, aber auch niemals zum Abbau von Schutzstandards führen.

     
       

     

      Νικόλας Φαραντούρης, εξ ονόματος της ομάδας The Left. – Κυρία Πρόεδρε, αγαπητέ κύριε Letta, σας καλωσορίζω στο Ευρωπαϊκό Κοινοβούλιο. Καλωσορίζουμε κάποιες από τις προτάσεις σας, όπως αυτές για μια κοινή φορολογική πολιτική ή για μια κοινή ευρωπαϊκή βιομηχανική πολιτική. Δεν με βρίσκει όμως σύμφωνο η περαιτέρω απορρύθμιση των εργασιακών σχέσεων και η αποκλειστική έμφαση μονάχα στην κινητικότητα των επενδύσεων.

    Επίσης, σας καλώ, εσάς και την Ευρωπαϊκή Επιτροπή, να λάβετε υπόψη σας το γεγονός ότι ένας βασικός πυλώνας της εσωτερικής αγοράς από δημιουργίας της Ευρωπαϊκής Ένωσης, η πολιτική ανταγωνισμού, οι κανόνες ανταγωνισμού και η αντιμονοπωλιακή νομοθεσία, σε πολλές χώρες της Ευρωπαϊκής Ένωσης και στην ίδια την Ευρωπαϊκή Ένωση δεν λειτουργεί. Υπάρχουν χώρες, όπως για παράδειγμα η δική μου χώρα, η Ελλάδα, όπου είναι απολύτως καρτελοποιημένοι κάποιοι κρίσιμοι κλάδοι της οικονομίας, όπως επίσης και κλάδοι βασικών κοινωνικών αγαθών. Γι’ αυτό, θα πρέπει να ενταθούν οι προσπάθειες, ξανά από την αρχή, ώστε οι βασικοί πυλώνες της εσωτερικής αγοράς, όπως είναι οι κανόνες ανταγωνισμού, να γίνονται σεβαστοί και εφαρμόζονται αυστηρά.

    Καλώ, λοιπόν, την Ευρωπαϊκή Επιτροπή, στο πλαίσιο του ευρωπαϊκού δικτύου ανταγωνισμού, να δείξει μεγαλύτερη προσοχή σε καρτελοποιημένες αγορές και να δώσει μεγαλύτερη έμφαση στην κοινωνική διάσταση της εσωτερικής αγοράς.

     
       

     

      René Aust, im Namen der ESN-Fraktion. – Frau Präsidentin! Der Binnenmarkt ist eine der größten Errungenschaften der europäischen Zusammenarbeit. Er ist ein lebendiges Beispiel dafür, wie souveräne Nationen gemeinsam ihre Ziele erreichen können, wenn sie ihre Kräfte in einem wichtigen Bereich bündeln. Der Binnenmarkt hat Innovationen angeregt und für zusätzlichen Wohlstand in Europa gesorgt.

    Doch heute sehen wir leider, dass sich die Europäische Union immer weiter von diesen zentralen Aufgaben entfernt. Statt sich auf ihre wenigen, aber entscheidenden Aufgaben zu konzentrieren, wie eben den Binnenmarkt, den Schutz unserer gemeinsamen europäischen Außengrenzen oder auch die Koordination einer gesamteuropäischen Verteidigungsgemeinschaft, mischt sie sich in immer mehr Lebensbereiche ein, in denen sie eigentlich nichts zu suchen hat.

    Anstatt den Schwerpunkt auf grenzüberschreitende Herausforderungen wie Handel, Wettbewerb, Innovation oder gemeinsame Sicherheitsstandards zu legen, wird die EU zunehmend zu einem Gemischtwarenladen, der sich um alles Mögliche kümmert, vom Weltklima bis zur Genderideologie, aber das Wesentliche vernachlässigt. Diese Überdehnung der EU-Aufgaben schreckt private Investoren und Entrepreneure ab und schadet damit ganz Europa. Doch jede Kritik an dieser Entwicklung wird sofort als antieuropäisch verunglimpft und sehr schnell in die Ecke der Europafeinde gesteckt.

    Dabei braucht Europa eine Rückbesinnung auf das, was wirklich wichtig ist, und nationale Souveränität ist eine Voraussetzung für eine funktionierende europäische Zusammenarbeit. Darum kann man uns Patrioten auch die Zukunft Europas anvertrauen, weil wir eben verstanden haben, dass mehr nicht immer besser ist. Wir wollen eine handlungsfähige Gemeinschaft europäischer Nationalstaaten, die den Binnenmarkt fortentwickelt, die Außengrenzen sichert und unseren Kontinent schützt.

     
       

     

      Lídia Pereira (PPE). – Senhora Presidente, a participação da União Europeia na economia global está a cair. As economias asiáticas ultrapassam‑nos a uma velocidade vertiginosa, tal como o relatório de Enrico Letta e o relatório de Mário Draghi o confirmam. As condições de vida dos europeus estão a degradar‑se. O PIB per capita nos Estados Unidos cresceu o dobro do europeu desde que foi criado o Mercado Único, em 1993. Portanto, não podemos continuar a ficar para trás.

    E o mais chocante é a nossa produção de bens essenciais, incluindo em áreas como a saúde, que desceu de 53 % para menos de 25 % em pouco mais de duas décadas. Estamos dependentes de outros, quando nunca precisámos tanto de garantir a nossa autonomia estratégica.

    Enrico Letta disse‑o ainda há pouco, mas continuamos, infelizmente, a ver mais de 300 mil milhões de EUR das poupanças dos europeus serem desviadas para fora da Europa. É trágico, porque estamos a financiar a economia dos outros, em vez de fortalecermos a nossa.

    Queremos ter um mercado mais competitivo, então precisamos de uma união bancária completa. Queremos proteger as poupanças dos nossos cidadãos e relançar a inovação, precisamos de uma união de mercado de capitais. E, acima de tudo, precisamos mesmo de reformar o mercado único europeu, acrescentando‑lhe a livre circulação do conhecimento, porque só com investigação e inovação seremos capazes de ter mais empresas competitivas a nível global.

    Creio que já temos relatórios o quanto basta. Precisamos mesmo é de decisões, e está na hora de as tomarmos.

    (A oradora aceita responder a uma pergunta «cartão azul»)

     
       

     

      João Oliveira (The Left), Pergunta segundo o procedimento «cartão azul». – Senhora Presidente, fazer a defesa do mercado único a partir da apologia da política de concorrência, ignorando a concentração e a centralização a que essa política e esse mercado têm conduzido, não nos serve de muito. Basta olhar para o setor bancário português e perceber que, sem o aprofundamento do mercado único, ficaram os bancos todos nas mãos de capital estrangeiro, com exceção da Caixa Geral de Depósitos, que, por ser pública, continua a ser nacional.

    Trazer aqui a defesa do mercado único a partir da ideia de que é isso que permite reduzir os preços – quando o setor energético mostra exatamente o contrário, com o aumento dos custos da energia – ou agora a partir do setor financeiro, achando que é isso que resolve os problemas, pode servir às multinacionais, mas não serve um país como Portugal, Senhora Deputada.

     
       


     

      Camilla Laureti (S&D). – Signora Presidente, onorevoli colleghi, grazie a Enrico Letta per il rapporto. Alexander Langer diceva che la conversione ecologica potrà affermarsi solo se apparirà socialmente desiderabile: per questo in Europa servono investimenti comuni, perché il Green Deal è una rivoluzione necessaria che impatta sul modello di sviluppo e sulla vita delle persone, e nelle persone può generare paura.

    Se sapremo realizzarlo, avremo i cittadini al nostro fianco, le aziende più competitive e un’Europa più forte. Gli Stati Uniti, la Cina e l’India stanno andando veloci e in questa direzione – l’Europa non può permettersi di restare indietro. La risposta è un sistema comunitario di aiuti di Stato: dobbiamo integrare i principi dell’economia circolare per spingere sostenibilità e competitività.

    La libertà di muoversi, dice anche Letta nel rapporto, deve essere una scelta – oggi non lo è. Un terzo della popolazione europea vive in regioni che da anni sono immobili: le aree interne d’Europa. Qui si vince la sfida della crescita sostenibile, fatta di investimenti comuni, capaci di garantire i servizi di interesse generale per non lasciare indietro nessuno.

     
       

     

      Enikő Győri (PfE). – Tisztelt Elnök Asszony! Az egységes piac az Unió legközérthetőbb értéke. Az olcsóbb repülés, vagy annak előnye, hogy otthoni szeretteinkkel ingyen telefonálhatunk, nem szorul magyarázatra. Persze szereztünk keserű tapasztalatokat is. Szolgáltatási irányelv, kiküldött munkavállalók, mobilitási csomag. Ezek elfogadásakor a Bizottság mindig a nyugat-európaiak érdekét tartotta előbbre valónak.

    Ahol az EU keleti fele versenyképesebb, ott nem akarta lebontani az akadályokat. A feladat tehát csak, hogy olyan területeken mélyítsük az egységes piacot, mely fokozza a versenyképességet, és földrajzi helytől függetlenül megkönnyíti a polgárok és cégek életét. Ne központosítsunk ott, ahol a kisebbek vagy fejletlenebbek rosszul állnak. Több összeköttetés tehát, de például az energia- vagy telekommunikációs szektor centralizáltásával bánjunk csínján, ne tűnjenek el a helyi szereplők, ne dráguljon a szolgáltatás. A pénzügyi piacok közötti átjárhatóság jó irány, de legyünk óvatosak a nemzeti felügyeletek egységesítésével, ne fojtsuk meg a kisebb nemzeti tőkepiacokat, amelyek nélkül nincs helyi ökoszisztéma.

    Elnök úr említette az ötödik szabadságot, a tudás mozgását. Ez nagyon klassz. Csak kérdezem, hogy az Európai Bizottság miért blokkolja a magyar kutatók részvételét a Horizont programban, vagy a magyar diákok mozgását az Erasmus program keretein belül? Regionális különbségek kiegyenlítése nélkül nincs versenyképesség. Az agyelszívás ellen tenni kell. Ösztönözni kell a helyben boldogulást. Tartsuk meg a kohéziós politikát, hiszen ezt az egységes piac ellensúlyozására találták ki, hol nehézségeket okozott. Ezt fenn kell tartani kondicionalitás nélkül, mert az durva politikai eszközzé vált a Bizottság kezében.

     
       

     

      Denis Nesci (ECR). – Signora Presidente, onorevoli colleghi, Presidente Letta, la relazione che discutiamo oggi mette in luce una delle sfide cruciali: il rafforzamento del mercato unico è senza dubbio un obiettivo fondamentale per il futuro dell’Unione europea.

    Tuttavia, non possiamo ignorare le criticità evidenti. Le eccessive regolamentazioni burocratiche rappresentano un ostacolo reale che rischia di soffocare l’innovazione e la crescita delle PMI. Se poi ci troviamo di fronte a perfidie come quella della direttiva ETS, giusto per citarne una, che mette a rischio la competitività delle infrastrutture portuali del Mediterraneo – come il porto di Gioia Tauro – con forti ricadute anche sul livello occupazionale, non parliamo di mercato unico, bensì di un distorto mercato unico.

    Per rilanciare la nostra competitività nell’ambito del mercato unico abbiamo bisogno di una politica economica adeguata e solidale, accompagnata da regole che vadano incontro alle esigenze di tutti gli Stati membri. Per questo è essenziale che il mercato unico non diventi un vantaggio riservato solo ad alcune aree: serve un mercato unico realmente inclusivo, che possa offrire opportunità anche alle regioni meno sviluppate, mettendo al centro l’uomo e non le “eco-follie”, e che sia a favore di famiglie, consumatori e imprese.

     
       

     

      Sandro Gozi (Renew). – Madame la Présidente, chers collègues, caro Enrico, le plus grand succès de l’Union, le marché unique, doit être renouvelé et complété. «Rico» Letta l’affirme avec force, et il a raison.

    Renouvelé, car il est impossible de réussir la transition écologique et numérique sans rendre le marché unique plus durable et plus simplifié pour les producteurs et pour les consommateurs. Complété, car il faut éliminer tous les obstacles qui empêchent les PME d’en profiter pleinement et qui nous empêchent d’avoir une union de l’énergie, des télécoms, des capitaux et des investissements. Le coût de la «non-Europe» est trop grand pour ne pas agir. L’approfondissement du marché européen pourrait générer jusqu’à 1,1 trillion d’euros de production économique supplémentaire par an.

    Il est aussi urgent – le rapport le dit très bien – de dégager les ressources sociales et économiques nécessaires à l’accompagnement du pacte vert et de la transition numérique.

    Enfin, nous devons développer une dimension extérieure du marché unique en lien avec notre politique commerciale. Dans ce cadre, nous devons également réformer les marchés publics, qui doivent aussi nous aider à réduire notre dépendance vis-à-vis des pays tiers. Cela doit être notre grande mission pour l’innovation et la compétitivité.

     
       


     

      Marcin Sypniewski (ESN). – Pani Przewodnicząca, Szanowni Państwo, jestem posłem od kilku miesięcy i jestem szczerze zdumiony, że w tym krótkim czasie po raz kolejny debatujemy nad nowym sprawozdaniem, które ma nam wskazać, jak mamy stać się bardziej konkurencyjni, bogatsi, silniejsi czy piękniejsi. Najwyraźniej oprócz biegunki legislacyjnej mamy również do czynienia z biegunką ekspertyz, analiz i sprawozdań. Zamiast tego polecam poczytać Rothbarda, Misesa czy Hayeka, których dzieła przetrwały próbę czasu we wskazywaniu, co jest dobre dla rozwoju gospodarczego i wolności jednostki.

    Noblista Fryderyk von Hayek wskazuje, że wiedza w swojej naturze jest rozproszona. To rynek za pośrednictwem cen przesyła informacje do przedsiębiorców i konsumentów. Dzięki temu rynek samodzielnie się stabilizuje i dostosowuje się do zmieniających się warunków i potrzeb. Politycy i urzędnicy nie są do tego w ogóle potrzebni. Alternatywą dla takiego spontanicznego i rozproszonego działania jest centralne planowanie, które wielokrotnie wprowadzane zawsze zawodziło, ponieważ politycy nigdy nie posiądą całości rozproszonej wiedzy.

    Rynek nie jest tabelką w Excelu, ale żywym, dynamicznie zmieniającym się organizmem, a prawdziwymi przywódcami na rynku są konsumenci. To ich wymagania starają się spełnić przedsiębiorcy. Rozwiązaniem, które ewentualnie pobudziłoby rynek, jest porzucenie praw własności intelektualnej w postaci chociażby patentów. Informacja może przecież znajdować się w kilku miejscach jednocześnie, bez wzajemnej szkody. Nie jest to dobro rzadkie, dlatego nie powinno być chronione jak własność prywatna. Własność intelektualna to sztuczny twór, a jej ochrona jest fikcją prawną. Chcecie bogactwa i dobrej przyszłości? Postawcie na rynek, a nie na biurokrację i na sprawozdania.

     
       


     

      Mohammed Chahim (S&D). – Voorzitter, de heer Letta is vrij helder in zijn analyse, net zoals de heer Draghi kort daarna. Het gaat echt ergens over, namelijk hoe kunnen we onze interne markt versterken? Hoe kunnen we de eenheid van Europa versterken? Hoe zorgen we ervoor dat we een sterke concurrentie krijgen binnen Europa, maar vooral ook met de rest van de wereld? En dit gebaseerd op een gelijk speelveld, op innovatie en op vergroening?

    Simpel gezegd zijn er twee stromingen in Europa: enerzijds conservatief rechts, dat de ontwikkelingen buiten de EU negeert, blind is voor de massale groene investeringen in de VS en wegkijkt van de modernisering van de Chinese economie; anderzijds een stroming die deze ontwikkelingen wil inhalen door meer – en niet minder – op Europese schaal samen te werken, te investeren in groene technologieën en ons niet te blijven blindstaren, zoals Draghi zei, op onze deels verouderde industrie.

    De keuze is simpel. Kiezen we voor modernisering en vergroening en dus voor vooruitgang? Of kiezen we voor nostalgie en stilstand?

    (De spreker stemt ermee in om te antwoorden op een “blauwe kaart”-vraag)

     
       



     

      Roman Haider (PfE). – Frau Präsidentin! Der Letta-Bericht benennt viele Probleme des Binnenmarkts richtig: steigende Energiepreise, mangelhafte Infrastruktur, vor allem bei den Hochleistungsbahnstrecken, Rückstand bei den Zukunftstechnologien, Überbürokratisierung vor allem. Das ist alles richtig; es ist nicht neu, aber es stimmt. So richtig aber die Analyse und die Diagnose im Letta-Bericht ist, so falsch sind leider die Vorschläge zur Verbesserung. Das war beim Draghi-Bericht so, und das ist auch beim Letta-Bericht so.

    Den beiden fällt zur Lösung der Probleme der EU nur eines ein: noch mehr EU, noch mehr Kompetenzen für Brüssel, noch mehr EU-Institutionen, eine neue Fiskalkapazität, die Kapitalunion, und dabei ist aber genau das das Problem. Noch mehr Kompetenzen für Brüssel bedeuten noch mehr Bürokratie, noch mehr unnütze Vorschriften, noch weniger Flexibilität für die Mitgliedstaaten.

    Es ist höchst an der Zeit für neue Wege, für weniger Zentralismus, für weniger EU, für mehr Flexibilität für die Mitgliedstaaten, mehr Subsidiarität und mehr Freiheit.

     
       

     

      Kosma Złotowski (ECR). – Pani Przewodnicząca! Panie Premierze! Od sukcesu jednolitego rynku zależy przyszłość Unii Europejskiej. Ten bardzo dobry projekt gospodarczy wciąż jest jednak daleki od ideału, gdyż ogranicza potencjał rozwojowy wszystkich państw członkowskich. Wreszcie możemy o tym głośno mówić.

    Istnieje wiele barier dla firm, zwłaszcza małych i średnich, które chcą prowadzić działalność ponad granicami w sektorze usług, transporcie, budownictwie czy handlu internetowym. Już zidentyfikowane problemy, takie jak geoblocking, gold-plating czy nadmierne i uciążliwe kontrole, skutecznie należy zwalczać. Europejski Zielony Ład jest wyłącznie kolejną taką barierą dla wzrostu gospodarczego.

    Nierealistyczne cele klimatyczne w takich obszarach jak rolnictwo, motoryzacja, transport czy budownictwo muszą zostać w tej kadencji Parlamentu zmienione. Zacznijmy w końcu deregulować, umożliwiać małym i średnim przedsiębiorstwom dostęp do rynków zagranicznych, wspierać innowacje i cyfryzację. To przełoży się na wzrost zatrudnienia oraz niższe ceny towarów i usług dla Europejczyków.

     
       

     

      Billy Kelleher (Renew). – Madam President, the Letta report and the Draghi report are a wake-up call for the European Union in terms of digitisation, the Green Deal, our knowledge economy, investing in innovation, research and development, ensuring that we have growth and competitiveness. The single market, the internal market, is a cornerstone on which all of this is built, and we have to protect it and ensure that it prospers and flourishes.

    The fact of the matter is, at the moment we are very short on capital in the European Union to invest in all of the above. So we have to advance the Capital Markets Union and the Banking Union to ensure that we have the capital to invest in the knowledge economy, in the Green Deal and other areas of research and development.

    The free movement of people, goods and services and capital is the cornerstone. Of course, we do have some in this Chamber who are even trying to undermine the basic principle of free movement of people. We have to be very conscious that we can’t cherry‑pick the Single Market – free movement of capital, goods, services and people is the cornerstone and we must all defend it to the last.

    More broadly, over the next number of months, we have to ensure that we respond to the Letta report and the Draghi report in what they observe are the challenges ahead for our competitiveness.

     
       


     

      Fulvio Martusciello (PPE). – Signora Presidente, onorevoli colleghi, come sottolineato nella sua relazione e in quella di Mario Draghi, un solido mercato unico europeo è essenziale per la competitività delle imprese, perché può stimolare la crescita economica e l’innovazione, garantendo accesso al mercato ed eliminando la burocrazia inutile.

    L’Europa però ha bisogno di una forte strategia industriale per le tecnologie e le catene del valore, che promuova competitività, sostenibilità e innovazione. Questa strategia deve sviluppare una visione coerente, che dia priorità ad un quadro normativo, con politiche basate su dati scientifici e valutazioni di impatto approfondite, fornendo alle imprese la stabilità di cui hanno bisogno. Da questo punto di vista riteniamo molto positive le lettere di missione sulla creazione di una vera e propria economia circolare competitiva.

    Negli ultimi decenni le aziende europee hanno infatti investito miliardi di euro in tecnologie all’avanguardia, hanno generato enormi progressi nell’eco-design di prodotti, nella sicurezza dei consumatori e nell’industria del riciclo, dove l’Italia e l’Europa detengono posizioni di leadership mondiale, sia in termini di innovazione industriale che di sostenibilità ambientale.

    Purtroppo, l’eccesso di regolamentazione degli ultimi anni ha generato un’enorme incertezza, spingendo interi settori industriali a posticipare i propri investimenti, compromettendo gli obiettivi di crescita complessivi, con spreco di tempo e di risorse.

    In questo mandato sarà dunque necessario evitare a tutti i costi di produrre ulteriori iniziative legislative motivate da logiche falsamente ambientaliste e non basate su evidenze scientifiche, che rischiano di penalizzare le imprese europee. Sarà imperativo garantire la conformità con le norme europee da parte dei Paesi terzi, garantendo standard che riducano la dipendenza dai fornitori esteri e rafforzino la competitività dell’industria e delle economie europee per affrontare le sfide delle concorrenze globali di Cina e Stati Uniti.

     
       

     

      Laura Ballarín Cereza (S&D). – Señora presidenta, señor Letta, señorías, treinta años después de su creación, el informe Letta nos brinda una oportunidad única para avanzar hacia el futuro del mercado único en tres aspectos clave:

    En primer lugar, inspirados por Jacques Delors, apoyamos su idea de añadir una nueva libertad a la libertad de movimiento, que es la libertad de permanecer en el rincón de la Unión Europea que queramos. No queremos solo una Unión donde podamos movernos libremente en busca de una vida mejor: también queremos cohesión, oportunidades y desarrollo en todas las regiones de la Unión Europea, y acceso a la vivienda para proteger las zonas rurales y las más pobladas.

    En segundo lugar, necesitamos profundizar en la integración del mercado de capitales y el de las telecomunicaciones porque, como bien dice el señor Letta, no es coherente que compartamos una moneda única, pero tengamos aún fronteras digitales y prefijos nacionales.

    Y, en tercer lugar, la quinta libertad, la del conocimiento y la innovación. Nos quedan cinco años para profundizar en el mercado único y hacer que más europeos se enamoren de esta idea, tal como quería Jacques Delors, en contra de la extrema derecha que está aquí en esta Cámara sentada.

     
       

     

      Roberts Zīle (ECR). – Priekšsēdētājas kundze! Godātais Lettes kungs, es pilnīgi piekrītu jūsu ziņojumam, ka vienotais tirgus ir kaut kas vairāk kā tirgus, un arī jūsu norādītām nepilnībām gan sektoru ziņā: finanses, enerģētika, telekomunikācijas un it īpaši privātā kapitāla izvietošana.

    Ja kopumā Eiropā ir 33 triljonu eiro uzkrātā kapitāla un katru gadu 300 miljardi eiro tiek investēti ārpus Eiropas Savienības, Amerikā un citās vietās, tad kaut kas nav kārtībā ar šo. Un ar publisko naudu vien mēs nespēsim izdarīt tos uzdevumus, kas ir nepieciešami Eiropas Savienībai gan militārās industrijas jomā, gan zaļā kursa, gan paplašināšanās, gan citās jomās.

    Jūsu ieteiktās zāles arī ļoti vērā ņemamas par piekto pamatbrīvību, par Uzkrājumu un investīciju savienību. Bet dažas zāles, kā, teiksim, radīt siltumnīcas apstākļos Eiropas čempionus, kas var kļūt par globāliem čempioniem, es ļoti baidos, ka tas to nesasniegs. Vēl jo vairāk tas var noplicināt no perifērijas gan naudas resursus, gan arī cilvēku – gudrāko cilvēku – resursus uz dažiem centriem Eiropā, kas varbūt nebūs Eiropas Savienības veiksmes stāsts.

     
       


     

      Regina Doherty (PPE). – Madam President, Mr Letta, you’re absolutely right when you say that the single market is the best tool that we have to increase opportunities, improve our well-being and the living standards for all of the citizens across the European Union. And we absolutely can’t take it for granted, because if we do, it’s going to fail. Your report, which is really welcome, helps to illuminate many of the current problems that we are seeing and that the single market is facing.

    Europe’s economy is not growing strongly enough. Our small businesses are not given the opportunity to grow and to scale up. Approximately 30 % of the high-value companies founded in the EU between 2008 and 2021 relocated their headquarters out of the EU, and mostly to the US. Some 60 % of the issues that we identified by businesses in 2002 still exist in the European market today, because progress on removing the barriers has been so slow, and it’s particularly true in the case of our service industry.

    We see the distorting effects of current rules around the EU state aid rules, which allow larger countries to subsidise businesses at the expense of smaller ones, like my own, Ireland. In 2023, almost 80 % of EU state aid came from just two Member States, and 85 % from three Member States.

    Europe will not be able to spend its way out to growth. Instead, we must reduce the unnecessary red tape and bureaucracy that everybody has been speaking about daily since I arrived here in June. But it’s also vital to avoid EU protectionism in the form of high external tariffs, a hostility towards investment from third countries and an over-reliance on those subsidies.

     
       

     

      Estelle Ceulemans (S&D). – Madame la Présidente, Monsieur Letta, Mesdames et Messieurs les Commissaires, chers collègues, il est aussi bon de rappeler que le rapport de M. Letta sera – Mme von der Leyen l’a elle-même dit – l’un des fils rouges de la prochaine Commission. Il était donc vraiment important que vous veniez nous le présenter et que nous puissions en débattre aujourd’hui.

    Merci, Monsieur Letta, de reprendre les mots de Jacques Delors, artisan du marché unique, qui nous dit que le marché n’est pas une fin en soi: il est là pour améliorer la vie des citoyens, qui ne sont pas que des consommateurs. Le marché unique a en effet permis de développer la prospérité et la compétitivité, mais il a aussi creusé les disparités et la pauvreté – comme cela a été dit dans le débat précédent, qui nous rappelle que, malheureusement, 1 Européen sur 5 fait face à un risque de pauvreté.

    Merci, donc, Monsieur Letta, de rappeler que le marché ne peut fonctionner que sur la base de politiques sociales fortes, et de rappeler aussi qu’il faut, sous cette législature, investir dans les deux transitions, pour qu’elles soient justes. Je voudrais rappeler aussi que nous attendons de la prochaine Commission qu’elle s’engage, tout comme l’a fait M. Nicolas Schmit, sur des matières sociales importantes.

     
       

     

      Adrian-George Axinia (ECR). – Doamnă președintă, piața unică europeană este o idee foarte bună, care, din păcate, în anumite domenii de activitate nu funcționează așa cum trebuie. Vă dau trei exemple: piața de energie, acolo unde România, care produce mai multă electricitate decât consumă, plătește cele mai mari facturi din Uniunea Europeană. A doua disfuncționalitate, care este încă nerezolvată, ține de agricultură. În continuare, cerealele și anumite produse alimentare exportate din Ucraina ajung pe piața românească, bulgărească sau poloneză și creează o concurență neloială producătorilor agricoli autohtoni.

    Merită subliniat și refuzul implementării procesului de convergență externă, care ar trebui să ducă la egalizarea subvențiilor pentru fermieri în toate țările Uniunii Europene. Nu în ultimul rând, recent, Curtea de Justiție a Uniunii Europene a declarat nelegale mai multe prevederi din pachetul de mobilitate orientate împotriva transportatorilor din România, ceea ce confirmă raportul Draghi. Există în continuare o suprareglementare a pieței unice și aceasta afectează competiția liberă. Aș mai puncta și faptul că uciderea spațiului Schengen de către țările care introduc controale generale la frontieră și statele care țin încă România și Bulgaria pe margine afectează în continuare buna funcționare a pieței unice.

     
       

     

      Ľudovít Ódor (Renew). – Vážená pani predsedajúca, tak ako vidíme aj z tejto diskusie, skutočný jednotný trh je niečo, na čom vieme stavať aj v tomto Parlamente, a musíme v najbližších rokoch urobiť maximum pre to, aby sme tento koncept rozšírili aj na ďalšie sektory. Rád by som upozornil na tri veci, ktoré sú pre mňa prioritné. Po prvé, svet sa zmenšil a trhy sa trošku zmenili. V digitálnom svete dominujú tí najlepší. Víťaz berie takmer všetko, dosť dobre už nestačí. Potrebujeme naozaj silných európskych globálnych hráčov, a nie desiatky trpaslíkov. Po druhé, svet inovácií je aj o riziku. Bohužiaľ, náš bankami dominovaný finančný systém, a ako aj občania preferujú menej rizika, a preto bez Únie, úspor a investícií, ako aj lepšej finančnej gramotnosti to tak aj zostane. Peniaze máme, no nevieme ich dostať k inovatívnym firmám. A po tretie, pri dobrých nápadoch a podnikaní nemôžeme tolerovať bariéry pri prechode každej vnútornej hranice.

     
       


     

      Marc Angel (S&D). – Madam President, the single market is the crown jewel of the European construction, and in my eyes gives the EU a competitive advantage. A stronger single market means a more competitive Europe.

    Mr Letta, as your excellent report shows, we can improve a lot and we must perfect it. We need better implementation of the existing rules. We need to ensure that it contributes to a more sustainable and a more social Europe, and we need to consider strengthening integration in crucial sectors, as a stronger single energy market, for example, driven notably by better interconnectivity, can lead to more secure and affordable energy and cheaper electricity bills for companies and our citizens.

    Furthermore, for the S&D Group, more integration means more competitiveness for our companies, better consumer protection and more prosperity for Europeans – while adopting national solutions will lead to more fragmentation and ultimately a weaker Europe.

    Further harmonisation of rules also means less bureaucracy and a reduced administrative burden for our companies, especially for SMEs, which will no longer have to navigate through a jungle of 27 different sets of national rules.

    So let us leverage the power of integration to tap into the full potential of the single market.

     
       

     

      Ivars Ijabs (Renew). – Madam President, thank you, Mr Letta, for your excellent report. Well, of course, the single market is a strength of the EU: it’s the main instrument. This is how we achieve our goals. But what are actually our goals today? Let me remind you that the Russian aggression in Ukraine is still going on. And the Russian attack on an EU country is possibly, still, a question of the nearest future.

    And that’s why I really like the part in your report which deals with a common market for security and defence industries. This is a real necessity for the EU right now. Some 80 % of the military help to Ukraine is right now spent on non-European materials.

    But how to achieve that common market? European investment in defence is lagging. It is very seriously hindered by red tape, by excessive regulatory requirements, by fragmentation. There is an immense potential of a single market in defence industry, but one must have a political will to implement it – and quickly. Time is running out.

     
       

     

      Salvatore De Meo (PPE). – Signora Presidente, onorevoli colleghi, la relazione Letta, unitamente a quella del Presidente Draghi, arrivano all’inizio di questa legislatura, che io vorrei diventasse riformatrice, ambiziosa, coraggiosa ma responsabile, perché l’Unione europea non sia più spettatrice in una scena globale ma diventi protagonista.

    E abbiamo gli strumenti per farlo: un mercato unico che in questi anni non solo è stato strumento di integrazione ma ha consentito la nostra crescita economica e la prosperità, uno strumento che va semplificato da un punto di vista burocratico, ma soprattutto rafforzato, per esprimere ulteriormente le sue potenzialità e affrontare le nuove opportunità.

    Così come è necessario arrivare a un mercato unico dell’energia, un mercato finanziario che permetta ovviamente di garantire condizioni di competitività. E allora noi abbiamo davanti a noi sfide importanti, per le quali solo un mercato unico forte potrà garantirci un futuro all’altezza delle nostre ambizioni climatiche, sociali e produttive.

     
       

     

      Jonás Fernández (S&D). – Señora presidenta, señor comisario, señor Letta, es un placer tenerle aquí en un momento en el que estamos empezando a definir las prioridades de este mandato y, sin duda, acelerar la integración del mercado único —especialmente en el ámbito de los servicios, donde aún tenemos relevantes problemas, como ha expuesto en su informe— es absolutamente necesario.

    Pero me va a permitir decirle que lo que más me ha llamado la atención del informe es la exigencia de evitar la huida de ahorro europeo a otras jurisdicciones. Porque algunos llevamos años en esta Cámara pidiendo reducir los superávits por cuenta corriente de algunos países —superávits por cuenta corriente que, en algunos casos, llegan a dos dígitos en relación con el PIB de esos países— y, ciertamente, en los debates que teníamos aquí en estos años, nadie o muy pocos me seguían.

    Y yo creo que es importante que, ahora que pedimos que el ahorro se invierta en Europa, seamos capaces de explicar a la Cámara que lo que estamos pidiendo es más demanda interna y reducir los superávits por cuenta corriente que ahogan el crecimiento de la Unión Europea.

     
       

     

      Biljana Borzan (S&D). – Poštovana predsjedavajuća, zajedničko tržište jedno je od najvećih europskih postignuća.

    Svaka kriza produbljuje nejednakosti na tržištu, bogati se još više bogate, siromašni postaju još siromašniji. Troškovi života najveći su problem u cijeloj Europskoj uniji, a nejednakosti između i unutar država članica u cijenama, plaćama, mirovinama i stopi siromaštva se samo povećavaju.

    Izvješće ističe zaštitu potrošača kao jedan od uvjeta za pošteno tržište, ali geoblocking, teritorijalne barijere, viši rast cijena hrane u istočnoj Europi samo su neki od gorućih problema. Izvješće hvali Zakon o osnaživanju potrošača u zelenoj tranziciji na koju sam i sama ponosna, ali rješenje je provedba naših pravila u svakom dijelu Europske unije. Više od 80 posto građana moje zemlje smatra da su potrošači nezaštićeni protiv tržišnih igrača.

    Moramo ojačati europske alate, potrošačke udruge, inspekcijski nadzor i svijest građana o vlastitim pravima. Ne smijemo biti oni tamo negdje u Bruxellesu. Mi moramo raditi za ljude.

     
       


       

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      Davor Ivo Stier (PPE). – Poštovana predsjedavajuća, gospodin Letta ispravno govori o tome što ubrzanje integracije unutarnjeg tržišta ima jednu geopolitičku važnost u današnjim uvjetima.

    Ja bih to nadopunio time što unutarnje tržište moramo isto tako i povezati s procesom proširenja. Pogledajmo, na primjer, situaciju na zapadnom Balkanu, ima puno političkih problema. Ne smijemo čekati da se oni riješe, da te zemlje postanu punopravne članice, nego bismo ih već prije mogli, doduše možda na jedan postupni način, ali već prije mogli integrirati u naše jedinstveno tržište. Kao što, na primjer, činimo kada je u pitanju roaming. Mislim da je to jedan dobar primjer, ali moramo to proširiti i na druge slobode.

    Na taj način će i ljudi u toj regiji imati svoje pravo na ostanak, a Europska unija će imati veći utjecaj i više će pridonijeti stabilnosti tog dijela europskog kontinenta.

     
       

     

      Maria Grapini (S&D). – Doamnă președintă, domnule comisar, domnule Letta, vă salut și în această săptămână. Aș spune multe. În primul rând vă felicit: este o radiografie corectă, dar nu numai o radiografie, sunt și măsuri concrete. V-aș întreba, estimați dumneavoastră oare cât din acest raport se va aplica? Pentru că, iată, noua comisie nu are un comisar, nu există un portofoliu pentru piața internă. Cine se ocupă atunci de piața internă? Cum să ne ducem la măsurile concrete pe care le-ați spus dumneavoastră? Ați spus că piața unică ne unește; este oare o piață unică acum?

    Sunt de acord să avem cea de a cincea libertate de mișcare, dar cel puțin o libertate de mișcare ne lipsește acum, domnule Letta. Știți oare cât a pierdut o țară care de 17 ani nu este în spațiul Schengen și are costuri la transport? Cât a pierdut economia țării mele? Apoi, avem acum, când vorbim, îngrădirea în interiorul spațiului Schengen a granițelor. Deci trebuie – toată piața unică, e adevărat, ați spus că ne unește – dar trebuie să luăm cu pragmatism măsuri care să ducă la rezultate și la o viață mai bună a oamenilor.

     
       

     

      Silvia Sardone (PfE). – Signora Presidente, onorevoli colleghi, le istituzioni europee hanno deciso di affidare ad Enrico Letta l’incarico di scrivere una relazione sul futuro dell’Europa. Eh, niente, fa già ridere così.

    Letta è l’ex leader del Partito democratico, ex premier della sinistra in Italia, volto di punta dei socialisti europei: rappresenta praticamente tutti i responsabili del disastro dell’Unione europea degli ultimi anni, tra l’altro sonoramente sconfitti in Italia.

    Per Letta la transizione verde è indispensabile e bisogna accompagnare agricoltori, imprese, industria dell’auto: esattamente ciò che però la sua maggioranza non ha fatto. Anzi, grazie a voi questi settori sono in crisi. Letta ci ricorda che l’Europa non deve cedere sul ruolo di leader nel settore manifatturiero: ma è proprio grazie ai vincoli, tasse e burocrazia volute dall’Europa che ci troviamo in questa condizione.

    Enrico Letta: uno che ha uno strano concetto di democrazia e ci ha tenuto a dire che i cordoni sanitari sono fondamentali per fermare le destre. Lui, proprio lui, che ha ribadito che servono più migranti regolari per lo sviluppo, andando contro diversi Paesi, anche socialisti, che finalmente dicono che bisogna fermare l’immigrazione.

    Insomma, veramente vogliamo farci dare lezioni da Letta, colui che dice che l’ex ministro Fornero è stato un ministro ottimo quando invece ha solo distrutto il nostro Paese?

     
       


     

      João Oliveira (The Left). – Senhora Presidente, visto a partir do conselho de administração de uma multinacional, o aprofundamento do mercado único pode parecer um filão; visto a partir da realidade dos trabalhadores e dos povos, das micro, pequenas e médias empresas, das possibilidades de desenvolvimento de um país como Portugal, o aprofundamento do mercado único é um pesado fardo que nos arrasta para o fundo.

    Há algumas décadas atrás, o militante do PCP e ex‑deputado deste Parlamento, Sérgio Ribeiro, antecipava que a transferência de instrumentos de política para a esfera supranacional, nomeadamente através da transferência da política monetária e financeira para o BCE, conduziria a uma política tendencialmente única. Por meio do mercado único e das políticas que lhe estão associadas, que o senhor Letta hoje adjetiva de motor de mudança da União Europeia, retirou‑se capacidade de decisão aos governos nacionais, abriu‑se mais espaço à concentração e centralização do capital, colocaram‑se sob ataque os direitos sociais e laborais.

    O aprofundamento do mercado único serve às multinacionais, mas não serve ao desenvolvimento económico nem à justiça social.

     
       

     

      Lukas Sieper (NI). – Madam President, dear honourable House, dear people of Europe, Mr Letta, before I came here to this Parliament, I finished my law studies at the University of Cologne. During this time, I put a lot of effort into learning the four European freedoms: the freedom to move people, services, goods and capital. And I can tell you, learning all the law-related details – especially the court rulings – that was a pain in the ass, indeed. Names like Dassonville or Cassis de Dijon, who will tell you here nothing, send a shiver down the spine of every law student.

    But at the same time, whenever I opened my books, I felt love for Europe. Because what is Europe if not the idea of freedom? And that’s why, Mr Letta, I would like to take the time to give you my deepest support for one of the main ideas of your report: the implementation of a fifth freedom – the freedom of research, innovation, knowledge and education. Because as Europe is an idea, ideas should roam free on this continent.

     
       

       

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      Giuseppe Lupo (S&D), per iscritto. – Penso che il Parlamento europeo debba condividere e sostenere la strategia della relazione Letta per modernizzare il mercato unico dell’UE.

    Condivido in particolare che, se vogliamo che il mercato unico migliori davvero la vita della gente, deve avere un’anima che è il dialogo sociale, che deve fare partecipare e coinvolgere le persone, la società, i corpi sociali intermedi, i sindacati dei lavoratori e delle imprese, rilanciando il dialogo sociale come lo ha voluto e praticato con successo Jacques Delors, anche grazie alla collaborazione dell’allora segretario della CES, Emilio Gabaglio.

    La grande sfida da affrontare, credo, sia adesso la promozione di una politica fiscale comune, per sostenere con condizioni fiscali di vantaggio le aree territoriali più deboli, superando le differenze dei sistemi fiscali nazionali che ostacolano la leale concorrenza.

     

    14. Implementation of the Single European Sky (debate)


     

      Jens Gieseke, Berichterstatter. – Sehr geehrte Frau Präsidentin, sehr geehrter Herr Kommissar Hoekstra, liebe Kolleginnen und Kollegen! 30 000 Flüge täglich, 600 Mio. Passagiere jährlich, über 500 000 Arbeitsplätze bei Fluggesellschaften, weniger als 17 000 Arbeitsplätze in der nationalen Verkehrskontrolle, überlastete Flughäfen, ein Flickenteppich an Strecken aufgrund der Flugsicherung entlang nationaler Grenzen – das ist das Bild des letzten europäischen Monopols: die Flugsicherungsdienste.

    Ich bin heute hier, um Sie zu bitten: Sagen Sie Ja zu kürzeren Strecken, zu mehr Effizienz, zu mehr Leistungen, zu mehr Zusammenarbeit, und Ja zu einem wirklich europäischen einheitlichen Luftraum. Warum gibt es kein Leistungsüberprüfungsgremium? Warum gibt es nicht ein gemeinsames Leistungssystem? Warum gibt es nicht einen europäischen Netzwerkmanager? Das sind alles wichtige Elemente, um die Leistungen der Flugsicherung zu verbessern und den Schaden für die Passagiere zu begrenzen. Fluglotsen behalten ihren Arbeitsplatz, sie werden weniger gestresst arbeiten, sie werden besser arbeiten, weil sie mit ihren Nachbarn zusammenarbeiten. Ich bin hier, um Ihnen zu sagen: Ja, wir können Flüge sicherer, kürzer, umweltfreundlicher und erschwinglicher für den Durchschnittsbürger der Europäischen Union machen.

    Wir haben hier ein riesiges Potenzial. Milliarden Euro wurden sowohl von der Europäischen Union als auch von privaten Interessenträgern im Rahmen des SESAR-Projektes investiert. SESAR liefert den digitalen europäischen Luftraum. Es liegt nun in unserer Hand, aber wir können uns nicht nur auf Investitionen in Technologien verlassen. Während der technologische Fortschritt durch das SESAR-Programm fortgeschritten ist, sind die Strukturreformen, die hier erforderlich sind, um sowohl die Kapazitäts- als auch die Umweltperformance zu erreichen, seit mehr als einem Jahrzehnt ins Stocken geraten und halten uns in der Vergangenheit fest. Hier haben die Mitgliedstaaten auch nicht mitgemacht, die standen auf der Bremse.

    Sehen Sie sich nun allein diesen Sommer an: Von Juni bis August haben die Flugsicherungen in Europa 16,9 Millionen – ich wiederhole: 16,9 Millionen – Minuten an Verspätungen im europäischen Netzwerk angehäuft. Das waren 41 % mehr als im gesamten Sommer 2023. Zum Vergleich: Im Jahr 2017 – im ganzen Jahr – gab es 15,9 Millionen Minuten. Wenn man die wetterbedingten Verspätungen herausnimmt, dann haben sich die Verspätungen im Vergleich zum Sommer 2023 um 82 % erhöht, und nur sieben nationale Flugsicherungen haben 85 % dieser Verspätungen verursacht.

    Das zeigt, dass die Situation von Jahr zu Jahr schlechter wird – leider –, insbesondere jetzt, da der Flugverkehr wieder das Niveau von vor der Pandemie erreicht hat. Diese Reform, die wir nun hier haben, die wird gebraucht, sie wird dringend gebraucht! Die Schaffung eines wirklich einheitlichen europäischen Luftraums wurde viel zu lange von den Mitgliedstaaten blockiert, die nicht bereit waren, sich auf eine Restrukturierung der Flugsicherung zum Wohle der Allgemeinheit, zum Wohle der Passagiere einzulassen.

    Dank der unermüdlichen Arbeit von Herrn Marian-Jean Marinescu, unserem Berichterstatter der EVP, für den einheitlichen europäischen Luftraum und für EASA in den letzten 16 Jahren werden wir nun in der Lage sein, diese neue Luftraumverordnung umzusetzen. Hier möchte ich aber auch an die großartige Arbeit von Herrn David Maria Sassoli, unserem verstorbenen Parlamentspräsidenten, erinnern, mit dem Herr Marinescu zusammen an der EASA-Grundverordnung gearbeitet hat. Ich möchte aber auch meinen sozialistischen Kollegen Bogusław Liberadzki nicht vergessen, der mit Herrn Marinescu stark zusammengearbeitet hat, so wie es jetzt Johan Danielsson mit mir tut.

    Gestatten Sie mir, Frau Präsidentin, die Mitgliedstaaten nun aufzufordern, die Fehler, die wir noch haben, nun zügig bei der Umsetzung umzuarbeiten. Es besteht ein riesiges Potenzial zum Wohle der Bürgerinnen und Bürger und um am Ende auch die Klimaziele einzuhalten. Also, wir müssen weiterarbeiten.

     
       

     

      Johan Danielsson, Föredragande. – Fru talman! Varje år genomförs omkring en miljard resor med flyg inom EU. Över tid har flyget blivit en allt viktigare del av vår vardag och vår ekonomi. För ett land som Sverige är en välfungerande flygtrafik avgörande. Vi har stora avstånd och är glest befolkade. Flyget knyter samman vårt land, vår kontinent och kopplar oss till omvärlden.

    Men sektorn står inför stora utmaningar. Under 2023 var nästan tre av tio flyg mer än 15 minuter försenade. Den genomsnittliga förseningen per flygning i Europa är cirka 18 minuter. Samtidigt står flyget globalt för omkring 2 till 3 % av våra totala koldioxidutsläpp.

    I dag liknar Europas luftrum ett stort pussel där varje land har sin egen bit, och tyvärr passar inte alla bitar ihop. Det leder till omvägar, till väntetider och till onödiga kostnader. Singel European Sky ska lösa delar av detta pussel. Efter mer än ett decennium av förhandlingar har vi äntligen nått fram till en överenskommelse.

    Lagstiftningen handlar om att göra flyget säkrare, punktligare och klimatvänligare. Det gynnar resenärer, det kommer att gynna industrin och det kommer att gynna klimatet. Och det är ett viktigt steg för att modernisera Europas luftrum.

    Jag vill tacka alla som arbetat med det här förslaget. Ett särskilt tack till tidigare föredragande Bogusław Liberadzki och Marian-Jean Marinescu, som jobbade med detta oförtröttligt under den föregående mandatperioden. Och så ett tack till Jens Gieseke, min medföredragande den här gången. Det visar vad vi kan åstadkomma om vi arbetar tillsammans över partigränserna i det här huset.

    Men låt mig vara tydlig: Singel European Sky är ingen revolution – det är en evolution. Det är en kompromiss som tar oss i rätt riktning. Vi kommer att se förbättringar och effektivitet och samordning. Men även om förändringarna kanske inte blev så stora som vi hade tänkt oss, innehåller det viktiga steg framåt.

    Vi stärker till exempel övervakningen på EU-nivå, vilket kommer att vara avgörande för att säkerställa att våra europeiska regler efterföljs. Förändringarna ger oss en god plattform att bygga vidare på mot ett enhetligt, effektivt och hållbart europeiskt luftrum.

    Enligt beräkningarna kan Singel European Sky bidra till att minska koldioxidutsläppen med upp till 10 % per flygning. Det här är ett viktigt steg och en del av lösningen för att också göra flyget mer hållbart.

    Men vi måste fortsätta arbetet på flera fronter. Vi kommer att behöva säkerställa en marknad för hållbara flygbränslen. Vi kommer att behöva fortsätta arbeta med ökad effektivitet i bränsleförbrukningen i flyget. Vi kommer också att se till att de fantastiska innovationer som är på väg fram, inte minst för att elektrifiera regionalflyget, kan få en praktisk omsättning på vår europeiska flygmarknad. Jag ser fram emot en bra debatt i dag och ett bra beslut senare i veckan. Och jag är hoppfull om att resultatet kommer att bli ett bättre europeiskt luftrum.

     
       

     

      Wopke Hoekstra, Member of the Commission. – Madam President, honourable Members, let me start by wholeheartedly thanking Mr Gieseke, Mr Danielsson and the TRAN Committee for all the great work that they have been doing. But let me also thank the former rapporteurs, Mr Marinescu and Mr Liberadzki, who might be with us virtually, for successfully concluding the interinstitutional negotiations with the Council on the regulation on the implementation of the Single European Sky.

    Ladies and gentlemen, our skies – and the two rapporteurs have said that – need fixing for the good of passengers, airlines and the environment. And to illustrate what is really at stake here, let me just recall this summer, when every second flight was delayed. Every second flight was delayed. And we all know how that feels and what it is like.

    Now some of those delays were unavoidable, for example because of bad weather conditions. But if you then go into the details, you will find that many of those delayed and cancelled flights could actually simply have been reduced by improving the way we manage air traffic today. And that is, of course, the ultimate aim. That is the ultimate aim of this new regulation.

    This agreement will update rules which are 15 years old. Let me be clear – and it was said here before – it is not as ambitious as the Commission, and I feel many in this room, would have wanted. And some would consider it far away from our original plan. But what is also true is that it does represent a clear step forward, and it improves the performance of the European airspace and the provision of air navigation services in the years to come.

    The new rules will strengthen the European network, tackling the fragmentation of European airspace, and they will reduce congestion and suboptimal flight routes, which today create delays for our passengers, extra fuel consumption and unnecessary CO2 emissions.

    Ladies and gentlemen, the agreement will also stimulate innovation and facilitate new services for air traffic management. It will create incentives to reduce the environmental footprint of aviation. For example, air navigation service providers will now have to introduce environment and climate performance targets on a wider range of services. The charges that airlines will need to pay for flying over our skies will be more favourable for those carriers emitting fewer CO2 emissions and with less impact on the environment.

    Finally, more know-how will be introduced when we regulate the performance of monopoly air navigation service providers. A new performance review board will be created to support the Commission, bringing independent expertise and improving the temporary solutions that we have today.

    Madam President, honourable Members, please allow me to conclude. More than 10 years have passed since the Commission presented what was then its original proposal. Believe me, it was not an easy task. In order to reap the benefits that the agreement brings, in my view it is now urgent that the Parliament finalises the adoption of the regulation by supporting the Council’s first reading position this week. Implementation work can then start as soon as possible.

    Thank you very much, once again, in particular to the TRAN Committee and the rapporteurs, and I’m very much looking forward to the continuation of our interaction today.

     
       

     

      Sophia Kircher, im Namen der PPE-Fraktion. – Sehr geehrte Frau Präsidentin, Herr Kommissar, liebe Kolleginnen und Kollegen! Wir reisen heute fast grenzenlos durch Europa. Doch über den Wolken, wo die Freiheit wohl grenzenlos scheint, stoßen wir im EU-Luftraum immer noch auf viele unsichtbare Grenzbalken – dadurch wird der europäische Luftverkehr stark eingeschränkt. Flugzeuge fliegen oft unnötige Umwege, weil veraltete nationale Vorschriften das erzwingen. Das führt zu Verspätungen, zu Kosten und 10 % mehr CO2-Ausstoß pro Jahr.

    Der Grund dafür: Der europäische Luftraum gleicht aktuell einem komplizierten Fleckerlteppich aus vielen nationalen Vorschriften. Statt eines gemeinsamen europäischen Systems mit einheitlichen Bestimmungen überwacht derzeit jeder Mitgliedstaat seinen Luftraum eigenständig, ohne eine ausreichende Zusammenarbeit mit anderen EU-Staaten.

    Mit diesem Gesetzespaket schaffen wir nun die Grundlage für mehr Zusammenarbeit mit anderen EU-Staaten, die wir so dringend brauchen, und somit werden wir in Zukunft günstiger, schneller und nachhaltiger fliegen können. Das ist eine Win-win-Situation für uns alle. Trotz dessen bleibt noch viel zu tun. Mit diesem Gesetzespaket gelingt uns ein wichtiger Schritt, aber es liegen noch viele Meilen vor uns.

     
       

     

      Matteo Ricci, a nome del gruppo S&D. – Signora Presidente, onorevoli colleghi, dopo oltre dieci anni di trattative, siamo finalmente giunti a un accordo sul cielo unico europeo, un tema che incide direttamente sulla vita quotidiana di milioni di cittadini.

    Tuttavia, dobbiamo essere chiari: il testo che adotteremo domani non è all’altezza delle aspettative. L’Europa ha bisogno di uno spazio aereo unificato con una gestione integrata e rotte dirette per ridurre ritardi, costi e soprattutto l’impatto ambientale.

    Oggi la frammentazione del nostro spazio aereo genera inefficienze gravi, costando ai passeggeri tempo e denaro. Ogni ritardo si traduce in maggiori emissioni e questo è un prezzo che il nostro pianeta non può più permettersi di pagare.

    Il regolamento che ci apprestiamo a votare promuove una maggiore cooperazione tra le autorità nazionali ma non impone regole vincolanti per una vera integrazione dello spazio aereo europeo. È un compromesso necessario, ma non sufficiente.

    Personalmente lo considero solo un primo passo. Non dobbiamo fermarci: l’Europa ha bisogno di un cielo unico europeo per essere più competitiva.

     
       

     

      Julien Leonardelli, au nom du groupe PfE. – Madame la Présidente, nous nous défions de tout projet qui penche vers le fédéralisme, à plus forte raison lorsqu’il est placé sous l’égide de la Commission européenne. Cela ne nous empêche pas d’être pragmatiques et responsables. Le projet de ciel unique européen vise, nous dit-on, à faciliter les trajets aériens à l’intérieur de l’Union européenne et à faire économiser 5 milliards d’euros par an de kérosène pour les compagnies aériennes.

    La Commission européenne ne pouvait que briller sur ce sujet technique, qui bénéficie d’un véritable consensus européen. Cette initiative, soutenue par une large majorité, ne devait être qu’une formalité. Mais la Commission, trop occupée à outrepasser ses compétences, en oublie ses objectifs premiers. Ce texte ne verra pas l’instauration d’un ciel unique européen, malgré des années de tractations. La montagne a accouché d’une souris. C’est en tout cas ce qui ressort des positions des professionnels du transport aérien, qui ne cachent pas leur déception à l’égard de ce texte.

    Le maintien d’un millefeuille à la fois administratif et technocratique ne plaît à personne. Pendant que l’Europe brasse du vent et se penche sur un texte ridicule, qui ne change rien tant ces changements sont insignifiants, les Etats-Unis, eux, produisent déjà en très grande partie la nouvelle génération de carburants par des subventions massives dans la recherche et l’industrie. En matière d’industrie comme d’énergie, les pays européens restent à la traîne, et la Commission européenne n’y est pas pour rien. Madame von der Leyen, sur la souveraineté faites preuve de plus de retenue, et sur le ciel unique montrez plus d’ambition.

     
       


       

    PREȘEDINȚIA: VICTOR NEGRESCU
    Vicepreședinte

     
       

     

      Jan-Christoph Oetjen, im Namen der Renew-Fraktion. – Herr Präsident, Herr Kommissar, verehrte Kolleginnen und Kollegen! Zehn Jahre hat es gedauert, dass wir dieses Gesetz, diesen einheitlichen europäischen Luftraum, auf den Weg gebracht haben. Nicht etwa, weil wir hier im Parlament lange gebraucht hätten, sondern es hat an den Mitgliedstaaten gelegen, die sich sehr lange hinter nationalen Kompetenzen versteckt haben. Diese nationalen Kompetenzen haben dazu gedient, zu kaschieren, dass es in den Mitgliedstaaten staatliche Monopole in der Flugsicherung gibt, die sie nicht angetastet sehen wollen. Und zur Wahrheit gehört: So richtig antasten tun wir sie jetzt auch nicht. Das, was wir machen, ist keine Reform, sondern ein Reförmchen, aber sie adressiert wichtige Themen.

    Wir kriegen endlich dieses performance review, das heißt endlich ein Benchmark für die Flugsicherung – ob sie gut funktionieren, ob sie genügend Leute haben, wie es klappt mit den Verspätungen, an denen – nicht immer, aber sehr häufig – eben auch die Flugsicherung mit Schuld ist.

    Wir haben eine Kapazitätsfrage, die sich dadurch adressieren lässt, und von daher können wir am Ende dieser Reform zustimmen. Aber sie ist weit von dem entfernt, was wir uns eigentlich erhoffen und was wir bräuchten, damit wir die Verspätungen in Europa endlich in den Griff bekommen.

     
       

     

      Merja Kyllönen, The Left-ryhmän puolesta. – Arvoisa puhemies, yhtenäisellä eurooppalaisella ilmatilalla on pitkä historia. Tavoitteena on vähentää viivytyksiä, lisätä turvallisuutta, lieventää ympäristövaikutuksia ja alentaa palvelujen tarjoamiseen liittyviä kustannuksia ilmailualalla. Euroopan ilmatilan pirstoutumisen vähentäminen tehokkaammalla ilmaliikenteen hallintajärjestelmällä on enemmän kuin tarpeellista. Vaikka politiikka on edennyt, niin SES ei ole onnistunut saavuttamaan täysin siltä odotettua edistystä. Tämän seurauksena Euroopan ilmatila on edelleen valitettavan pirstoutunut, kallis, tehoton ja kapasiteettiongelmat jatkuvat nopeasti kasvavan lentoliikenteen vuoksi. Työn on siis jatkuttava, paikoilleen emme voi jämähtää.

    Nykyinen sääntelykehys on pitkän aikavälin työ. Siinä on ollut mukana monenlaisia toimijoita. Siinä on ollut mukana monenlaista vääntöä sellaisia historian paloja, taisteluita, joita muun muassa Yhdistynyt kuningaskunta ja Espanja kävivät aikanaan, esimerkiksi Gibraltarin osalta. Kun Brexit poisti tämän esteen, komissio on muuttanut alkuperäistä ehdotustaan, ja hyvä niin.

    Jäsenvaltiot tarvitsevat laajaa yhteistyötä ja koordinointia toiminnallisissa ilmatilan lohkoissa, myös yhtenäisen eurooppalaisen ilmatilan sääntelykehyksen luomisen jälkeen. Tässä säädöksessä tunnustetaan olemassa olevien yhteistyöjärjestelyjen arvo ilmatilan hallinnan tehostamisessa ja lentoliikennevirtojen optimoinnissa tietyillä maantieteellisillä alueilla.

    Liikenteessä yleisesti, mutta lentoliikenteessä erityisesti, turvallisuusnäkökulma korostuu ja siksi kaikissa muutoksissa on mentävä ehdottomasti turvallisuusnäkökulma edellä. Safety first! Ja ihan pakko on sanoa rakkaat terveiset aina upealle taisteluparilleni Marinesculle. Ja rakkaat terveiset myös britti Jodie Fosterille, jota ei voi kyllä tämä talo unohtaa. Olisinpa videoinut parhaat palat uusille päättäjille. Piccolino, magnifico, amato David Sassoli.

     
       

     

      Siegbert Frank Droese, im Namen der ESN-Fraktion. – Herr Präsident! Seit 20 Jahren plant die EU einen einheitlichen Luftraum, aber wenig ist passiert. Wir teilen die Kritik der Airlines an dem Vorschlag der Kommission zum einheitlichen europäischen Luftraum. Es wird zu höheren Steuern führen, mehr Bürokratie, mehr Berichtspflichten – all das wollen wir nicht. Europa ist bisher schon ein sehr sicherer Luftraum. Warum also auf Biegen und Brechen die Kompetenzen der nationalen Flugsicherungsdienste beschneiden und alles in den EU-Topf werfen?

    Es muss nicht alles harmonisiert oder einheitlich zertifiziert werden. Wichtig dagegen wäre für uns die Abschaffung von Sanktionen, z. B. gegenüber Russland. Dann könnten Flugzeuge schneller und vor allem umweltschonender nach Asien fliegen und so CO2 reduzieren. Aber immer neue Steuern und Vorschriften vertreiben Fluggesellschaften aus Europa und verteuern das Fliegen unnötig. Wir wollen, dass auch in Zukunft sich der Arbeiter noch seinen wohlverdienten Urlaubsflug leisten kann und nicht nur die Eurokraten.

    Die Kommission könnte sich unserer Meinung nach mal mit wichtigen Dingen beschäftigen, beispielsweise mit der Migration, oder vielleicht gibt es in Zukunft auch Tausende von Abschiebeflügen zu organisieren – da würden wir gern mal einen schönen Vorschlag hören. Diesem Vorschlag, der hier vorliegt, können wir nicht zustimmen.

     
       

     

      Lukas Sieper (NI). – Herr Präsident, verehrte Damen und Herren! Der berühmte deutsche Lyriker Reinhard Mey sang einst „Über den Wolken, da muss die Freiheit wohl grenzenlos sein“, und in diesen Worten steckt aus europapolitischer Sicht endlos viel Wahrheit. Denn über den Wolken gibt es keine Grenzen, da ist man einfach irgendwo über Europa. Deswegen unterstütze ich die Aktualisierung des Einheitlichen Europäischen Luftraums, auch wenn sie halb so lange gedauert hat, wie ich auf dieser Welt bin.

    Gleichzeitig sollten wir aber nicht aufhören, wo wir jetzt angefangen haben, und über weitere Dinge nachdenken. Ich möchte Ihnen da zwei Sachen vorschlagen.

    Zum einen braucht es eine Gebührenanpassung für klimafreundliche Flüge. Wir haben in der Vergangenheit gemerkt, dass wir vor allen Dingen über so etwas die Entwicklung in der Gesellschaft steuern können, und der Klimawandel kennt nun mal keine Grenzen.

    Zum anderen benötigen wir einen einheitlichen europäischen Luft-Datenraum. Wir müssen also den Datenaustausch zwischen den Mitgliedstaaten im Luftverkehr optimieren und damit effizienter machen, denn auch Daten kennen keine Grenzen. Die Arbeit am Einheitlichen Europäischen Luftraum ist wertvoll – sie ist noch nicht vorbei.

     
       

     

      Alvise Pérez (NI). – Señor presidente, ¿de verdad este Parlamento no entiende lo que se pretende hoy aquí, imponiendo el Cielo Único Europeo?

    No se trata de fomentar la competencia, no se trata de mejorar ninguna descentralización ni de ahorrarnos un 10 % más de CO2. Esa es la gran farsa: ¿qué poder en Europa está más centralizado que la propia Comisión Europea? ¿Qué entidad ha centralizado más poder que la Comisión? Ninguna. ¿Y siguen de verdad creyéndose estas iniciativas en pro del supuesto medio ambiente?

    Lo que busca con esto la Comisión es que hasta nuestros cielos dependan de una nueva entidad europea bajo el control férreo de Von der Leyen con la excusa del CO2. El Cielo Único Europeo no es más que un instrumento para expandir la supervisión y la regulación comunitaria imponiendo aún más objetivos ambientales, aún más cargas y aún más tarifas contra los usuarios de este continente. La señora Von der Leyen demuestra un desprecio absoluto por la soberanía de los países, y esta Cámara, también.

    Y aquí, un orgulloso español les responde que el desprecio, evidentemente, es mutuo. Solo que hay una diferencia esencial: quien parasita y esclaviza a nuestro país es ella, mientras que nosotros solo anhelamos libertad.

    Si queremos preocuparnos por el cielo europeo, defendámonos de las intrusiones y las amenazas militares por cielo, mar y aire con las que Marruecos y todas las falsas ONG del sur de Europa están atentando contra nuestro país.

    Esta no era la Europa que nos prometieron. Esta es una Europa mesiánica en la que no nos reconocemos.

     
       

       

    Intervenții la cerere

     
       

     

      Maria Grapini (S&D). – Domnule președinte, domnule comisar, stimați colegi, zece ani am fost în Comisia pentru transport și am tot dezbătut nevoia de îmbunătățire a Cerului unic european. Transportul prin aviație este extrem de important. Vorbeam mai devreme la raportul domnului Letta despre conectivitate, despre libera circulație. Domnule comisar, am patru zboruri pe săptămână – nu numai datorită condițiilor meteorologice sunt întârzieri. Întârzierile, așa cum ați spus și dumneavoastră, sunt frecvente și din alte cauze: lipsa de organizare, să stai pe pistă să aștepți că nu ai culoar de zbor.

    Asta înseamnă că este nevoie să aplicăm acest regulament și îl susțin, pentru că s-a lucrat la el, îmbunătățește Cerul unic european și cred că avem nevoie de un transport reformat și pe aviație pentru, sigur, eficiență economică în piața internă și, de ce nu, pentru protejarea drepturilor pasagerilor. Prețurile nu se schimbă când ai întârziere, dar ajungi foarte târziu la destinație și câteodată îți pierzi practic întâlnirile pe care ți le-ai programat.

     
       

     

      Γεάδης Γεάδη (ECR). – Κύριε Πρόεδρε, η εισήγηση για δημιουργία ενιαίου ευρωπαϊκού ουρανού αποτελεί μια προσπάθεια για βελτίωση της ασφάλειας, της αποδοτικότητας και της περιβαλλοντικής βιωσιμότητας των αεροπορικών υπηρεσιών, όπως έχει αναφερθεί.

    Όμως, πώς μπορούμε να μιλάμε για ασφάλεια όταν κλείνουμε τα μάτια στις παρανομίες; Θα γίνω πιο συγκεκριμένος. Η λειτουργία του παράνομου αεροδρομίου της κατεχόμενης Τύμπου στην Κύπρο θέτει σε κίνδυνο τις πτήσεις και χιλιάδες πολίτες καθημερινώς, αφού ελλοχεύει τεράστιος κίνδυνος για αεροπορικά ατυχήματα.

    Διερωτώμαι: δεν θα αντιδρούσατε αν λίγα μέτρα από το αεροδρόμιο της Φρανκφούρτης, δίπλα από το αεροδρόμιο στο Παρίσι, πλησίον του αεροδρομίου της Ρώμης, των Βρυξελλών, της Μαδρίτης, του Βερολίνου, λειτουργούσε ένα παράνομο αεροδρόμιο με δικούς του κανόνες; Φυσικά.

    Επομένως, ας αφήσουμε τα λόγια και ας περάσουμε στις πράξεις, που δεν είναι ο συντονισμός και η επικοινωνία με κατοχικές αρχές —κάτι που θα οδηγούσε στην κανονικοποίηση της παρανομίας— αλλά η απαγόρευση της λειτουργίας του, που θα συνοδεύεται με αυστηρότατες κυρώσεις σε αεροπορικές εταιρείες που χρησιμοποιούν το παράνομο αεροδρόμιο.

     
       

     

      João Oliveira (The Left). – Senhor Presidente, é certo que esta nova versão do Regulamento Céu Único Europeu não vai tão longe como a posição que o Parlamento Europeu havia aprovado, com tudo o que ela representava de ataque sem equívocos à soberania nacional, numa abordagem abertamente mercantilista e de liberalização ainda maior do setor aéreo, visando a sua concentração e centralização. Mas, esses não deixam de ser traços que persistem no documento final, mesmo que de forma matizada, traços que rejeitamos.

    Em nome do que esta proposta não é, não faltará certamente quem procure ir além dela, nomeadamente em Portugal, dando continuidade e consequência às ameaças que têm recaído sobre a NAV, com vista ao desmembramento da sua atividade, com prejuízo para a soberania nacional e para a economia.

    Pela nossa parte, daqui reafirmamos que continuaremos a intervir, rejeitando o caminho de liberalização do controlo aéreo e em defesa da NAV, empresa pública estratégica para o desenvolvimento nacional.

     
       

       

    (Încheierea intervențiilor la cerere)

     
       


     

      Wopke Hoekstra, Member of the Commission. – Mr President, ladies and gentlemen, dear Members, let me mention two quick points in response. The first one is on sovereignty. For those who are concerned about the impacts on the sovereignty of Member States over their airspace, let me be clear, and let me underline that all the provisions aim to foster better coordination within Europe. Member States will continue to decide whether and which parts of their airspace they open or they close. Full stop. It’s that simple. So I feel sovereignty will continue to be fully in place.

    Secondly, in response to the Members who have been speaking, let me reiterate what I said in the first term, and that is that more is needed. More needs to be done, and more today would have been better. But politics is also quite often the art of the possible. We are where we are today. Let’s seal this now and then let’s move forward from there.

     
       

     

      Jens Gieseke, Berichterstatter. – Herr Präsident, Herr Kommissar Hoekstra, liebe Kolleginnen und Kollegen! Ich danke für diesen konstruktiven Austausch. Obwohl das natürlich ganz rechts und ganz links schwerfällt, bei so einem sachlichen Thema konstruktiv mitzuarbeiten, glaube ich, dass wir insgesamt eine gute Debatte hatten.

    Der einheitliche europäische Luftraum zeigt einmal mehr unser europäisches und auch unser EVP-Engagement für die kontinuierliche Unterstützung der Fluggäste, der Luftfahrtindustrie, der Forschung und Entwicklung, auch im Luftfahrt- und im Raumfahrtsektor, sowie auch die Einhaltung der Umweltversprechen. Wir streben ganz sicher nach effizienteren Flugsicherungsdiensten, weniger Verspätungen, einem geringeren ökologischen Fußabdruck und auch geringeren Kosten für Passagiere und Fluggesellschaften.

    Der einheitliche europäische Luftraum ist ein erster Schritt vorwärts, um die Engpässe im Luftraum zu beseitigen, um endlich einen wirklich einheitlichen EU-Raum zu schaffen, ohne die nationale Souveränität zu beeinträchtigen. Das wird dann auch zu weniger Kosten und zu einer besseren Umweltleistung führen.

    Ich glaube, morgen kann wirklich ein guter Tag werden für Europa. Von daher mein klarer Appell an alle Kolleginnen und Kollegen, morgen pünktlich zur Abstimmung zu kommen und für diese Neufassung zu stimmen. Ich stimme mit dem Kommissarsanwärter, aktuellen Kommissar und demnächst hoffentlich wiedergewählten Kommissar Hoekstra überein: Das ist ein erster Schritt heute, es werden weitere in den nächsten fünf Jahren folgen müssen. Aber für die EVP kann ich sagen: Wir sind bereit, diese Arbeit fortzusetzen. Unsere Bürger werden es sicherlich danken.

     
       

     

      Johan Danielsson, Föredragande. – Herr talman! Jag blir glad över det engagemang som visats under debatten. Avslutningsvis vill jag betona att vårt arbete inom flygsektorn inte slutar här. Vi har, som många konstaterat, fortfarande mycket att göra för att säkerställa en rättvis och hållbar flygsektor i Europa.

    Smidiga gränsöverskridande transporter är viktiga men får aldrig ske på bekostnad av arbetstagares rättigheter. Under denna mandatperiod hoppas jag därför att vi kan ta itu också med andra viktiga frågor som berör sektorn.

    En revidering av EU:s förordning om luftfartstjänster står högt på agendan. För det första måste vi stärka reglerna kring så kallad wet leasing, där flygbolag hyr in plan med besättning. Wet leasing ska naturligtvis kunna användas för att möta oförutsedda händelser, men inte för att konkurrera med löner och arbetsvillkor.

    Utvecklingen – där på ytan seriösa flygbolag skapar dotterbolag med enda syftet att pressa tillbaka personalens arbetsvillkor – är inte värdig och måste få ett slut. För det andra behöver vi tydligare definitioner kring personalens hemmabas. Vi har sett hur bolag i dag utnyttjar skillnader i nationell lagstiftning för att pressa ner lönekostnaderna. Också detta måste få ett slut.

    Med det sagt återstår nu att genomföra Single European Sky. Det kommer att kräva fortsatt hårt arbete från EU-kommissionen i övervakningen av de regler som vi nu ändå får på plats, för att säkerställa att det verkligen blir ett steg framåt och inte ett slag i luften. Jag hoppas att alla är här och röstar för förslaget i morgon.

     
       

     

      President. – The debate is closed.

    The vote will take place tomorrow.

     

    15. A stronger Europe for safer products to better protect consumers and tackle unfair competition: boosting EU oversight in e-commerce and imports (debate)


     

      Didier Reynders, membre de la Commission. – Monsieur le Président, Mesdames et Messieurs les députés, je suis ravi d’être parmi vous aujourd’hui pour débattre des défis que pose le commerce électronique, tant en matière de protection des consommateurs que de concurrence loyale ou de durabilité. Ces dernières années, des milliards de colis individuels ont été expédiés directement aux consommateurs de l’Union, notamment par voie aérienne, et de nouveaux acteurs du commerce électronique, principalement installés en dehors de l’Union, dominent désormais le marché. Quatre milliards de colis devraient être livrés en 2024.

    La Commission est consciente que cet afflux de marchandises achetées en ligne pose des défis en matière de conformité au cadre juridique applicable et de sécurité, de concurrence déloyale et de durabilité. En effet, bon nombre de ces produits s’avèrent dangereux, non conformes ou contrefaits.

    En raison de l’urgence de la situation, nous devons identifier une réponse européenne collective pour garantir la sécurité et la conformité des produits vendus sur ces plateformes de commerce électronique situées dans des pays tiers, pour préserver les consommateurs de pratiques commerciales déloyales et pour assurer des conditions de concurrence justes et équitables aux entreprises européennes.

    The Commission is ready to act in cooperation with the market surveillance authorities, the consumer protection and customs authorities, as well as with the digital services coordinators under the DSA to effectively enforce Union legislation and increase the controls on those platforms and products. We have instruments at our disposal that we are already using.

    First, the Digital Services Act is a powerful tool and it is a priority to enforce this regulation. The Commission is fully committed to ensuring strong and effective enforcement against very large online platforms, notably marketplaces not complying with all rules, which risk fines up to 6% of their global turnover. The DSA gives the Commission unprecedented enforcement powers that are already available. The recent enforcement action by the Commission, which resulted in TikTok’s commitment to withdraw its ‘lite rewards’ system from the EU market, as it raised concerns of addictiveness, is a good example of what the DSA can deliver for the whole European Union.

    More specifically, regarding e-commerce, the Commission has already launched an investigation in relation to AliExpress’ practices, including on suspicions related to the risk of dissemination of illegal products and the possible negative impact to consumer protection. We have also recently designated Temu and Shein as very large online platforms under the DSA, and already launched investigative actions in relation to these two online marketplaces. Consumer protection and compliance by online marketplaces is and will remain one of our enforcement priorities. We take this responsibility seriously and will not refrain to act decisively. The Commission will also coordinate closely with the digital services coordinators, which are responsible for the smaller online marketplaces, to ensure that smaller online marketplaces also follow the rules, and that these rules are consistently applied in the European Union. The European Board for Digital Services is crucial in this respect.

    Second, customs authorities are the first line of defence when it comes to products imported from third countries. They are also key actors in the supply chain to identify and suspend the release of non-compliant and dangerous goods. The customs reform, proposed by the Commission in 2023, is currently being discussed by the European Parliament and the Council. Under this proposed reform, the implementation of an EU customs data hub would enable risk management at EU level, making the enforcement of compliance with product requirements more targeted and effective. Additionally, the proposal includes an abolition of the current threshold that exempts goods valued at less than EUR 150 from customs duties. These measures would be important tools for combating fraud and abuse. However, customs authorities cannot act alone. It is crucial for them to collaborate with market surveillance authorities and digital services coordinators to combine their tools, capacity and expertise.

    Third, the Consumer Protection Cooperation Network, under the coordination of the Commission, has carried out several enforcement actions in recent years against key market players, such as Amazon and AliExpress, to bring them into line with EU consumer protection legislation. In May, the consumer organisation BEUC informed the Commission about practices of the e-commerce platform Temu and its alleged non-compliance with, among others, EU consumer laws. The Commission has immediately informed the CPC Network about this complaint, and discussions under that format are ongoing. Compliance by major e-commerce players, including those targeting European consumers from third countries, is a top priority for the Commission and national authorities. The Commission will continue to fully support and coordinate the enforcement work of the network.

    Looking ahead, it will be essential to further tackle challenges with e-commerce platforms and strengthen measures to prevent non-EU compliant products from entering the EU market. This would include ensuring an optimal articulation between the General Product Safety Regulation, the Market Surveillance Regulation and the Digital Services Act. To further improve online product safety and compliance with relevant rules, it will be our priority to fully use the enforcement toolbox provided for under these regulations, for example, by organising product safety control to check and improve compliance of the e-commerce sector with EU product safety requirements, organising joint product sampling and testing activities involving online mystery shopping, and facilitating further the cooperation between market surveillance and customs authorities to give an unified response to the challenges of e-commerce.

    To ensure that manufacturers outside the EU comply with all rules, the new GPSR also introduces a new obligation to appoint a responsible person for their products. This will guarantee traceability and responsibility for any goods sold on the open market. To address the issue at its source, it is also paramount to continue cooperating with manufacturing third countries. We are, for example, committed to continue the awareness-raising and training activities on EU product safety rules with Chinese companies. Apart from legal obligations, it is also important to explore voluntary cooperation mechanisms, such as the product safety pledge, which has enabled the removal of close to 60 000 unsafe products listings in the past six months.

    It will also be crucial to further improve the current enforcement framework for cross-border infringement of EU consumer law, in order to preserve the level playing field in the Union and the competitiveness of EU businesses. To achieve this aim, we will continue to explore possible approaches to strengthen the Commission’s role in specific circumstances that affect consumers throughout the Union and to further improve the enforcement cooperation among national authorities. Moreover, the Commission encouraged the swift adoption of some proposed legislative initiatives, namely the ‘VAT in the digital age’ package and the customs reform, that aim to structurally improve the transparency and control on the flow of goods entering and leaving the union, starting by e-commerce goods.

    I thank you for your attention. Of course, I am now looking forward to our debate and to try to collect your proposals, remarks, or maybe some criticism.

     
       

     

      Andreas Schwab, im Namen der PPE-Fraktion. – Herr Präsident, Herr Kommissar, liebe Kolleginnen und Kollegen! Onlineplattformen haben die Art und Weise, wie Verbraucher einkaufen, grundlegend geändert. Verbraucherinnen und Verbraucher sind nicht mehr auf lokale Anbieter beschränkt, sondern können Waren bei internationalen Händlern einkaufen, wodurch ihre Auswahl erweitert wird und sie oft bessere Preise finden. Sie haben ja gerade angesprochen, Herr Kommissar: 4 Milliarden Pakete allein in diesem Jahr zeigen, dass die europäischen Verbraucherinnen und Verbraucher an internationalen Produkten interessiert sind und auf den besten Preis achten. Aber viele Drittstaatenplattformen stehen in der Kritik wegen mangelhafter Produktqualität, unzureichender Kontrollen und damit unfairer Wettbewerbsbedingungen.

    Deswegen ist es gut, Herr Kommissar, dass Sie den Dreiklang aus Maßnahmen, die greifen können, dargestellt haben. Zoll: Wir haben nach wie vor 27 unterschiedliche Zollsysteme, obwohl das einheitliche europäische Zollrecht angewendet werden muss, und es wird leider unterschiedlich angewendet. Wir haben zum Zweiten die Marktaufsichtsbehörden, die alle in nationaler Hand sind und unterschiedlich stark ausgestattet sind, und wir haben das Gesetz über digitale Dienste. Und hier, Herr Kommissar, hätte ich mir etwas mehr erwartet, denn das Gesetz über digitale Dienste wird jetzt schon zum zweiten Mal gegenüber Temu in Anwendung gebracht – aber immer mit der Bitte um Auskunftserteilung und nicht mit Entscheidungen.

    Hier müssen wir schneller vorankommen, denn mit dem Gesetz über digitale Dienste und dem Gesetz über digitale Märkte hat das Europäische Parlament hier – dieses Haus – in den vergangenen Jahren wichtige Schritte unternommen, um das Vertrauen der Bürger in die Sicherheit des Internets zu stärken und um europäischen Unternehmen fairen Wettbewerb anzubieten. Daran wollen wir festhalten, und deshalb ist die Europäische Kommission gefordert, hier Schritte folgen zu lassen.

     
       

     

      Laura Ballarín Cereza, en nombre del Grupo S&D. – Señor presidente, señor comisario, un 71 % de la población europea compra bienes y servicios en línea. El comercio en línea es cómodo, es barato, pero tiene muchos riesgos. Por ello, regularlo bien es ya inaplazable.

    Sabemos que plataformas de comercio electrónico, como Amazon, Aliexpress, Temu o Shein, están afectando a nuestro comercio en tres aspectos clave.

    En primer lugar, en la seguridad de productos que consumimos: juguetes, ropa, etc. Todos conocemos esos productos que nos llegan a casa y que no cumplen las condiciones mínimas.

    En segundo lugar, en el enorme impacto que tienen sobre el comercio local de nuestros municipios, que está siendo asfixiado por la competencia desleal de estas plataformas a nuestras pymes europeas.

    Y, en tercer lugar, en el medio ambiente, porque sabemos que estas empresas abandonan a su suerte toneladas de paquetes devueltos por clientes en Europa y en otros continentes, lo que pone en riesgo la salud de todo el planeta.

    Para eso tenemos leyes, apliquémoslas: más controles en las aduanas, y comercio y consumo responsable para proteger nuestro medio ambiente, a nuestros consumidores y nuestro comercio local.

     
       

     

      Virginie Joron, au nom du groupe PfE. – Monsieur le Président, chers collègues, Monsieur le Commissaire, nous voici en marche vers cinq ans de teutonneries supplémentaires. On avait espéré en 2019 que le premier mandat von der Leyen ferait état d’une gestion saine et honnête. Mais on a eu le matraquage des automobilistes, un dérapage budgétaire et les fourberies de Pfizer.

    Ce soir, nous parlons donc de la surveillance européenne des marchés du commerce en ligne, pendant que nos commerces de proximité ferment les uns après les autres. La vente de produits dangereux, illicites, contrefaits ou volés est encore légion sur les grandes plateformes. Cette lutte, c’était pourtant ce que vous aviez promis lors de l’adoption de toutes les législations précédentes sur la question. Votre slogan? «Le règlement sur les services numériques protégera vos enfants.» Aujourd’hui, ce n’est plus un règlement sur les services numériques, mais un règlement sur la surveillance numérique qui a été mis en place, sous l’impulsion du démissionnaire Thierry Breton. Les associations de consommateurs ont signalé en avril dernier le géant chinois Temu, parce qu’il n’assurait pas l’identification des vendeurs. C’est l’article 30 du règlement sur les services numériques. Ces mêmes associations ont fait état de cas où le consommateur est manipulé par des prix qui changent ou qui ne correspondent pas au produit choisi. C’est l’article 25 du règlement sur les services numériques. On a eu la directive de 1998 sur les indications de prix, la directive de 2005 sur les pratiques commerciales prohibées, les nouvelles règles de sécurité des jouets ou encore la réforme du code des douanes.

    Mais la réalité, c’est une jungle de normes qui empêchent nos entreprises françaises ou européennes de se développer, et des pays tiers, comme la Chine, leader mondial du commerce électronique, qui contournent sans problème nos règles – dixit un inspecteur de l’OLAF – ou, pis, qui bénéficient d’exemptions des frais de douane pour les achats dont la valeur ne dépasse pas 150 euros. Une jungle où, finalement, c’est Bruxelles qui tire une balle dans le pied du commerce électronique européen.

     
       

     

      Piotr Müller, w imieniu grupy ECR. – Panie Przewodniczący! Panie Komisarzu! Szanowni Państwo! Regulacje dotyczące bezpieczeństwa produktów w Europie są niezwykle ważne. One powodują, że z jednej strony konsumenci są bezpieczni, a z drugiej strony, że standaryzujemy pewnego rodzaju rozwiązania produkcyjne w Europie, co oczywiście też przynosi wymierne korzyści i bezpieczeństwo dla konsumentów. Jednak widzimy tę rosnącą konkurencję ze strony w szczególności rynków azjatyckich i moją obawą jest to, że te przepisy w praktyce nie będą obowiązywały właśnie wobec tych krajów, które dostają się na rynek europejski w sposób inny niż produkcja na naszym rodzimym rynku.

    W związku z tym mam pytanie do Pana Komisarza, jakie działania tutaj można byłoby podjąć (chociażby być może zapisując w nowej perspektywie budżetowej, nad którą będziemy pracować, dodatkowe środki dla urzędów, dla instytucji krajowych i unijnych, ale przede wszystkim krajowych, bo one najczęściej kontrolują jakość produktów), aby właśnie rzeczywista kontrola tych produktów, które pochodzą w szczególności z Azji, miała miejsce.

     
       

     

      Svenja Hahn, im Namen der Renew-Fraktion. – Herr Präsident! Wenn Spielzeuge für Babys so leicht auseinanderfallen, dass sie daran ersticken können, dann haben Eltern zu Recht Angst. Vor allem, wenn Untersuchungen zeigen, dass mehr als die Hälfte von Spielzeugen aus Drittländern wie China gefährlich ist.

    Wenn Designs von kleinen europäischen Designern kopiert werden und die Klamotten aus fragwürdiger Produktion mit giftigen Chemikalien belastet sind und dann auch noch über Plattformen wie Temu und Shein zu Billigpreisen verschleudert werden, dann leiden wir Verbraucher, unsere Umwelt und unsere Unternehmen, die sich an Recht und Gesetz halten.

    Illegale und unsichere Produkte dürfen nicht in unseren Binnenmarkt kommen, am besten, weil sie bereits vor Verkauf gestoppt werden. Die Kommission und die Mitgliedstaaten müssen geltendes Recht rigoros durchsetzen: das Gesetz über digitale Dienste und die neuen Regeln zu Produktsicherheit. Wir müssen gemeinsam unsere Marktüberwachung und unseren Zoll stärken. Vor allem die Digitalisierung des Zolls muss schneller vorangehen, damit wir die digitale Voranmeldung und auch den Wegfall der Freigrenze für illegale Produkte haben können, damit wir illegale Produkte aus unserem Markt fernhalten können.

    Ich baue darauf, dass die Kommission zügig einen Aktionsplan mit den Mitgliedstaaten umsetzen wird, damit unsere Kleinsten sicher sind, damit Shopping weder zur Ausbeutung von Umwelt noch von Menschen führt und Wettbewerb fair ist.

     
       

     

      Saskia Bricmont, au nom du groupe Verts/ALE. – Monsieur le Président, Monsieur le Commissaire, vous l’avez dit: Temu, Shein, AliExpress, Amazon et de plus petites plateformes inondent le marché européen de produits à faible coût. Mais, derrière ces bas prix, il y a des coûts énormes, notamment des techniques de manipulation en ligne incitant à l’hyperconsommation ou des produits de mauvaise qualité pouvant s’avérer dangereux pour la santé et la sécurité.

    Une enquête a même révélé que 80 % des jouets testés ayant été importés par le biais de ces plateformes ne respectaient pas les normes de sécurité européennes. Cela induit aussi une concurrence déloyale pour les entreprises européennes qui respectent les normes sociales, environnementales, de produits, de sécurité. Ces normes existent au niveau européen pour de bonnes raisons: la protection des consommateurs, des travailleurs, de l’environnement. Elles doivent donc être respectées par tout le monde, y compris par les entreprises importatrices et par les plateformes de pays tiers.

    Des centaines de milliers de colis arrivent chez nous tous les jours, en un clic et sans avoir fait l’objet de contrôles. Autant de produits potentiellement dangereux, qui ne respectent pas les normes européennes. Cette concurrence déloyale touche tous les secteurs et constitue souvent un frein au développement de filières locales durables et sociétalement responsables. C’est le cas notamment du secteur textile, où la concurrence déloyale de l’«ultrafast fashion» venant des plateformes chinoises menace l’émergence d’un secteur textile durable en Europe.

    L’Union européenne est bien là pour protéger les consommateurs et nos entrepreneurs: il faut donc assurer effectivement le respect des règles, la transparence et l’information des consommateurs, mais aussi des contrôles douaniers renforcés et les moyens nécessaires à de tels contrôles, des droits de douane même pour les achats de moins de 150 euros, et un renforcement des sanctions à l’égard des plateformes qui ne respectent pas les règles.

     
       

     

      Hanna Gedin, för The Left gruppen. – Herr talman! Jag ska börja med att säga att jag är glad att vi har den här diskussionen, för situationen är ohållbar.

    Från Vänstern har vi länge krävt ett stramare regelverk för e-handelsplattformar. Ett test som nyligen gjordes av leksaksbranschen visar att åtta av tio leksaker som importeras till EU och kan köpas på olika internetsajter riskerar att kväva eller förgifta barn – kväva och förgifta våra barn.

    De uppfyller inte EU:s säkerhetskrav. Vår uppgift som lagstiftare är att se till att minska risken för olyckor, att se till att medborgarna är trygga och säkra. Det gör vi genom att premiera miljövänliga och säkra produkter, samtidigt som vi ser till att arbetsvillkoren för dem som producerar de här sakerna är bra.

    Det är inte bara barn och andra konsumenter i Europa som riskerar att skadas. Det finns återkommande indikationer på att många av de här produkterna, förutom att de är skadliga, dessutom är tillverkade genom tvångsarbete.

    Kommissionen måste agera – inte bara för att den här slapphäntheten mot utländska internetsajter konkurrerar med lägre standarder och sämre arbetsvillkor än varor som produceras i enlighet med EU-lagstiftning. Dagens regelverk leder faktiskt till stora risker för alla medborgare – inte minst för våra barn. Lösningen måste vara att även utländska sajter får samma skyldigheter som inhemska aktörer, att tullen får större resurser och att varor som importeras, till exempel från Kina, inte längre ska subventioneras när det kommer till exempelvis fraktkostnader.

     
       

     

      Zsuzsanna Borvendég, a ESN képviselőcsoport nevében. – Tisztelt Elnök Úr! A helyi termelők által helyben előállított termékek védik a környezetet és a nemzetgazdaságot is erősítik, vagyis minden szempontból a társadalom jólétét szolgálják. Emiatt kezdett pártom, a Mi Hazánk Mozgalom hazai termelői vásárokat szervezni Magyarországon, ezzel is népszerűsítve a jó minőségű helyi termékek fogyasztását. Az élelmiszeripar különösen veszélyeztetett ezen a területen. Vissza kell szorítani a globális élelmiszerláncok sokszor gyenge minőségű, földrészeken át utaztatott, agyonvegyszerezett termékeinek dömpingjét.

    A multik gazdasági érdekei nem írhatják felül az emberek egészséges élethez való jogát, de meg kell akadályozni azt is, hogy politikai elfogultság alapján olyan mezőgazdasági termékeknek nyissunk szabad utat, amelyek nem felelnek meg az EU-s előírásoknak, ahogy az számos ukrán termék esetében megtörténik. Azonnali hatállyal meg kell tiltani a harmadik országokból érkező hamisított méz importját is. Ennek érdekében egy előterjesztést is készítettem, amelyet az ESN frakció benyújtott, de az AGRI bizottság napirendre sem volt hajlandó ezt tűzni. Kérem, gondolják ezt át újra!

     
       


     

      Christel Schaldemose (S&D). – Hr. Formand, kommissær. Flere og flere handler på nettet. Legetøj, tøj, gaver. Det er nemt, det er bekvemt, og det er praktisk. Men hvis man handler på platforme som Temu, så kan det altså skade både din sundhed, vores miljø og den europæiske konkurrenceevne, og alt for mange af f.eks. Temu’s produkter de lever simpelthen ikke op til de europæiske regler. De er sundhedsskadelige, miljøskadelige, og så er de også ødelæggende for vores konkurrencesituation for vores europæiske virksomheder. Derfor er der brug for, at der sker noget. Vi har fået mange nye regler, men vi har brug for, at de bliver håndhævet. Derfor vil jeg gerne opfordre EU-Kommissionen til at komme i gang med at håndhæve reglerne og gøre det lidt hurtigere, end det, der sker i dag. Vi har fået nogle gode regler i det, jeg sagde. Spørgsmålet er, om de er gode nok, spørgsmålet er, om der skal mere til. Noget af det, som jeg tror, vi skal kigge på, er, om vi egentlig ikke burde give disse handelsplatforme et importøransvar, så de fik et meget konkret og direkte ansvar for at sikre, at de produkter, de sælger, overholder de europæiske regler. Så hurtigere og bedre, og hvis ikke det er nok, så tror jeg, at vi skal se på, om der skal endnu flere strammere regler til.

     
       

     

      Ernő Schaller-Baross (PfE). – Tisztelt Elnök Úr! A termékbiztonság egyre sürgetőbb kérdés Európában, különösen az e-kereskedelem gyors ütemű terjedése révén. Mondjuk ki őszintén, a piacfelügyelet rendszere ma nem elég hatékony, hogy lépést tartson a digitális világ kihívásaival. A fellépés hiánya komoly kockázatot jelent polgáraink biztonságára nézve, és hosszú távon veszélyezteti Európa versenyképességét is. Az e-kereskedelem gyors üteme és a határokon átnyúló eladások miatt a tagállami hatóságoknak nehéz feladatuk van, hogy minden egyes terméket ellenőrizzenek.

    Így a fogyasztók biztonsága gyakran veszélybe kerül, és a szabályozás átláthatóságának fenntartására s kihívásokkal szembesül. Az Európai Parlament nem blokkolhatja tovább a háromoldalú tárgyalásokat, kezdje el a munkát. Kezdje el a termékbiztonságot érintő javaslatok, többek között a játékbiztonságról szóló szabályok tárgyalását is. Ne hagyjuk, hogy a késlekedés ára az európai polgárok vagy gyermekeink biztonsága legyen! Tegyük meg a szükséges lépéseket közösen, hogy Európa továbbra is az innováció és a biztonságos termékek kontinense lehessen. A jelenlévő vagy nem jelenlévő TISZA párti képviselőknek pedig azt üzenem, hogy ne féljenek, ha kérdést tesznek föl ebben a Házban, ebben a teremben válaszolni is lehet.

     
       

     

      Denis Nesci (ECR). – Signor Presidente, onorevoli colleghi, la protezione dei consumatori e la lotta alla concorrenza sleale, soprattutto nel commercio online, sono una questione prioritaria per l’Europa.

    Troppi prodotti non conformi agli standard europei continuano a entrare nel nostro mercato attraverso l’e-commerce, mettendo a rischio la sicurezza dei consumatori e penalizzando le nostre aziende, in particolare le piccole e medie imprese italiane ed europee.

    Non possiamo più accettare che le nostre imprese siano costrette a competere ad armi impari con prodotti di bassa qualità provenienti da paesi che non rispettano le nostre regole. Le aziende che rispettano rigorosamente la normativa europea su sicurezza e qualità sono penalizzate da una concorrenza sleale.

    Dobbiamo rafforzare i controlli alle frontiere, garantire che i prodotti importati rispettino gli stessi standard che le nostre imprese sono tenute a seguire. Chiediamo che l’Unione europea intervenga con decisione: è fondamentale che le piattaforme di e-commerce non diventino un canale privilegiato per la vendita di prodotti non conformi. Questo è un punto essenziale per difendere la sovranità economica italiana e quella europea, proteggendo il nostro tessuto produttivo.

    Come abbiamo spesso sottolineato, la nostra economia non può continuare a subire le conseguenze di politiche commerciali che favoriscono attori esterni a scapito delle nostre eccellenze.

     
       


     

      Majdouline Sbai (Verts/ALE). – Monsieur le Président, chers collègues, en dix ans, le chiffre d’affaires du commerce électronique a été multiplié par trois. Rien qu’en France, le chiffre d’affaires du site Shein se monte à 1,63 milliard d’euros. C’est un tsunami économique.

    Alors oui, oui à la protection des consommateurs, oui à la fin de l’exonération des droits de douane en dessous de 150 euros d’achats, oui à une enquête précise sur les soupçons de subventions chinoises et de concurrence déloyale, oui à la fin de la publicité mensongère, oui, encore oui au contrôle sur la toxicité, la propriété intellectuelle et la sécurité des données personnelles.

    Oui, mais quand? Combien d’enseignes et de marques européennes auront fermé entre-temps? Combien de chaussures pour enfants intoxiquées au plomb aurons-nous achetées? Combien de jeunes auront adopté des comportements de consommation détestables pour notre avenir?

    Alors, oui à tout cela, mais quand? Je vous le dis: agissons maintenant!

     
       

     

      Leila Chaibi (The Left). – Monsieur le Président, chers collègues, des ballons de baudruche à gonfler soi-même bourrés de substances cancérigènes, des jouets comprenant des pièces qui peuvent être avalées, des casques de moto pour enfants qui, en fait ne protègent pas du tout, des détecteurs de fumée qui ne détectent pas la fumée… Ces produits dangereux ne sont pas des exceptions: ils pullulent sur des plateformes de vente en ligne comme Amazon, Temu ou Wish. Les associations de consommateurs les ont testées, et le constat est alarmant.

    Comment est-il possible que ces objets puissent envahir le marché européen? La réponse est simple. Pour les géants du commerce électronique, la priorité c’est: les profits, et le marché européen, c’est le jackpot.

    C’est un triple jackpot, en réalité. D’abord, un jackpot sur les normes de sécurité, car ces plateformes ignorent les normes de sécurité en vigueur chez nous. Elles inondent l’Union européenne de produits qui ne respectent pas les réglementations en matière de sécurité, et mettent donc les Européens en danger.

    C’est un jackpot sur les conditions de travail, car ces produits sont fabriqués dans des conditions inacceptables, en exploitant les travailleurs et en détruisant la planète.

    C’est un jackpot sur les obligations fiscales, car, pour couronner le tout, ces plateformes trouvent le moyen d’échapper à leurs obligations fiscales. Et tout cela permet à ces plateformes de commerce électronique de casser les prix et d’écraser nos entreprises européennes, qui ne peuvent pas rivaliser face à cette concurrence déloyale.

    Chers collègues, il est temps de sonner la fin de la récré pour Amazon, pour Temu, pour Alibaba et compagnie. L’Union européenne passe beaucoup de temps à discuter, à légiférer sur le poids des pommes ou sur la pulpe des poires. Je ne dis pas que ce n’est pas intéressant, que ce n’est pas important, mais je crois qu’il y a plus important et plus urgent en matière de normalisation au sein du marché unique.

    Les plateformes de commerce électronique doivent assumer leurs responsabilités et se soumettre à nos règles communes. Elles doivent être tenues pour responsables des produits qu’elles vendent, comme n’importe quel commerçant en réalité. Si elles veulent jouer dans notre cour, alors elles doivent se conformer à nos règles. Pas de passe-droit. La santé et la sécurité des Européennes et des Européens passent avant leurs profits.

     
       

     

      Kateřina Konečná (NI). – Pane předsedající, kolegyně a kolegové, hračky pro batolata, které se snadno rozbijí na malé kousky, u nichž hrozí vdechnutí, nefungující plynové alarmy či hračky a kosmetika obsahující nebezpečné chemikálie – zkrátka produkty, které ohrožují spotřebitele a které jsou v Evropské unii zakázány vyrábět i prodávat.

    Jenže e-shopy až do této chvíle dokáží naše pravidla zdatně obcházet a společně s nimi je obchází i výrobci ze zemí mimo Evropskou unii. Tyto zdraví i život ohrožující výrobky, jež často cílí na děti, nadále zaplavují evropský trh díky e-shopům a nízkým nákladům na jejich výrobu. Budu ráda, pokud konečně tuto skulinu, jednou provždy, odstraníme. On-line platformy musí také nést odpovědnost za produkty, které na svých stránkách nabízejí. Jejich stahování musí mít jasná pravidla. Informační systémy musí být lépe připraveny a pokuty za jejich prodávání musí být značně vyšší, než byly dosud. Jsem ráda, že alespoň zde se věci mají s novými pravidly ubírat správným směrem.

     
       

     

      Kamila Gasiuk-Pihowicz (PPE). – Panie Komisarzu! Koledzy, koleżanki! Unia Europejska jest liderem we wprowadzaniu regulacji chroniących konsumentów na rynku cyfrowym, a jednocześnie miliony Europejczyków korzystają z niespełniających standardów Unii Europejskiej produktów. Dlaczego? Po pierwsze dlatego, że europejski rynek jest zalewany przez chińskie subsydiowane towary sprzedawane po bezkonkurencyjnie niskich cenach. 2023 rok 2 miliardy paczek, 2024 rok dwa razy tyle paczek – 4 miliardy.

    Po drugie wjeżdżają niebezpieczne produkty. W liście, który otrzymałam od 100 producentów zabawek z Polski, wskazano na sprawozdanie Toy Industries of Europe, z którego dowiadujemy się, że 18 z 19 zabawek kupionych na platformie Temu stanowi rzeczywiste zagrożenie dla bezpieczeństwa dzieci. Po trzecie chińskie platformy sprzedażowe stosują agresywny marketing i manipulują klientami. Często informacje o tym, kto sprzedaje i za ile sprzedaje wymagają dziesiątki kliknięć, a i tak na koniec są podawane po chińsku.

    Co możemy zrobić, żeby przywrócić uczciwą konkurencję? Po pierwsze wprowadzić poza nielicznymi wyjątkami cła na paczki o wartości do 150 euro. Po drugie Komisja musi skutecznie i szybko egzekwować istniejące prawo. Po trzecie działania organów nadzoru krajowych i unijnych muszą być skoordynowane. Musimy to zatrzymać, zanim będzie za późno, zanim miliony produktów niespełniających standardów bezpieczeństwa trafią do naszych domów, do rąk naszych dzieci, zanim setki tysięcy miejsc w Europie znikną. Musimy to zrobić teraz.

     
       

     

      Maria Grapini (S&D). – Domnule președinte, stimați colegi, discutăm de protecția consumatorului și concurența loială în piață, domnule comisar. Sigur, am dezbătut astăzi și dezbatem comerțul online. Avem foarte multe reglementări, le-ați enumerat și dumneavoastră. Întreb: poate un cetățean, un consumator care a achiziționat online un produs să se apere dacă produsul e defect, dacă se îmbolnăvește, dacă produsul nu este conform? Avem reglementare de la etichetare până la dreptul la repararea produselor.

    Totuși, în piața internă sunt extrem de multe produse neconforme din țări terțe și – sigur nu vă dau, cred, o noutate – și în comerțul online avem produse din țări terțe pentru că acordurile nu sunt bine comercial făcute. Nu este subliniată respectarea standardelor de produs, cele europene, și atunci întrebarea este: cum le aplicăm? Reformarea vămilor – pentru prima dată vom avea o autoritate europeană pentru vămi. Problema este de aplicare, nu de reglementare. Am rămas în urmă cu implementarea și cred că aici trebuie să punem accent împreună cu statele membre, evident, ca să protejăm cu adevărat consumatorii.

     
       

     

      Gilles Pennelle (PfE). – Monsieur le Président, nous ne pouvons bien évidemment, au groupe des Patriotes pour l’Europe, que saluer l’intention de protéger les consommateurs européens. Cependant, le rapport Letta nous démontre que nous assistons à une augmentation des fraudes, à une augmentation de la concurrence déloyale et à ces fameuses importations de produits dangereux.

    Alors certes, on a beaucoup parlé des jouets. Je voudrais aussi parler des médicaments, par exemple, qui sont extrêmement dangereux pour la santé lorsqu’ils sont achetés sur des sites que personne ne contrôle. Dans la réalité, vous récoltez, à la Commission et dans cette Union européenne, les fruits de votre politique. C’est le résultat du dogme suprême du libre-échange qui nous amène là où nous en sommes.

    En effet, comment contrôler cette jungle qu’est devenu aujourd’hui le commerce électronique, où les géants du numérique règnent en maîtres. Je pense que les solutions ne sont, comme d’habitude, pas celles que vous proposez. Les solutions sont nationales. Il faut renforcer les douanes nationales pour contrôler ces importations de produits dangereux.

    Je voudrais, puisqu’il me reste quelques secondes, rappeler que, dans la plus grande opacité, dans le plus grand secret, la Commission européenne négocie actuellement le traité de libre-échange avec le Mercosur. Mais, là aussi, nous allons probablement importer des produits dangereux, des viandes de très mauvaise qualité, nourries par des produits interdits dans l’Union européenne.

    Finalement, vous êtes face à vos contradictions. Il est temps de changer de politique.

     
       

     

      Francesco Torselli (ECR). – Signor Presidente, onorevoli colleghi, oggi l’Unione europea sta subendo un vero e proprio attacco da parte di certe nazioni straniere a colpi di prodotti non conformi, di bassissima qualità, spesso anche pericolosi per il consumatore finale.

    Un attacco che sfrutta due falle esistenti nel nostro sistema di difesa: la prima, la possibilità di aggirare facilmente le regole da parte di certe piattaforme online; e la seconda, il fatto che l’Europa negli ultimi anni ha promulgato una serie di regolamenti autolesionisti, che spesso sembravano più favorire chi stava fuori dall’Europa piuttosto che le nostre imprese.

    È essenziale che oggi l’Unione europea intensifichi i controlli alle frontiere, protegga i consumatori, contrasti la concorrenza sleale. Dobbiamo migliorare la cooperazione, responsabilizzare le piattaforme online. Cooperazione e responsabilità: queste sono le ricette per un’Europa più forte che contrasti il commercio illegale.

     
       

     

      Nikola Minchev (Renew). – Mr President, the European Union is a global leader in setting high standards with the aim of ensuring quality and protecting our consumers. ‘Made in the EU’ is not just a label; it’s an unmatched guarantee of quality and safety. Yet we allow unreasonably cheap, low-quality, sometimes even dangerous, products to flood our markets, undercutting our industries. This must change.

    We need stronger enforcement of anti-dumping measures to defend the integrity of our single market. The European Commission has made recent strides, improving trade defence instruments by over 40 % to allow faster investigations and duties on unfair imports. But more action and especially enforcement of the existing rules is needed.

    Take my own country, Bulgaria. As the EU’s sixth largest exporter of electric bikes, our manufacturers face competition from cheap, lower quality imports from non-EU countries. These imports threaten to destabilise the growing sector. Robust enforcement, like recent EU actions against Chinese e-bikes, is essential to protect jobs, innovation and fair competition across Europe.

     
       

     

      Anna Cavazzini (Verts/ALE). – Herr Präsident, liebe Kolleginnen und Kollegen! Der Teddybär auf der Onlineplattform Temu, der sieht süß und flauschig aus und kostet auch nur zwölf Euro. Aber wenn die Verbraucherinnen und Verbraucher diesen Teddy bestellen, besteht die 95-prozentige Wahrscheinlichkeit, dass er den europäischen Vorgaben für Produktsicherheit nicht entspricht. In anderen Worten: Das Kuscheltier ist gefährlich: Seine Augen können verschluckt werden, oder das Fell ist vielleicht giftig.

    Dem immer schneller wachsenden Anteil des Onlinehandels, besonders mit Billigprodukten aus China, stehen Zoll und Marktüberwachung hier in Europa hilflos gegenüber. Dieses Jahr gehen Schätzungen zufolge vier Milliarden Pakete in die Europäische Union ein, die unter der Zollgrenze von 150 Euro liegen, und sie landen direkt bei den Verbraucherinnen und Verbrauchern.

    Es ist allerhöchste Zeit, unseren hohen europäischen Verbraucherschutz auch im Onlinehandel durchzusetzen. Die Kommission muss das Gesetz über digitale Dienste konsequent umsetzen und Online-Marktplätze mehr in die Verantwortung nehmen. Die EU-Zollreform ist der Schlüssel, um Kontrollen an unseren Grenzen zu verbessern. Das Parlament hat seine Hausaufgaben gemacht; der Rat schleicht und blockiert, und wir verlieren kostbare Zeit.

    Wir brauchen endlich mehr rechtliche und finanzielle Verantwortung für die Onlineplattformen. Den großen Wurf hat leider die konservative Seite dieses Parlaments in der letzten Legislatur blockiert; jetzt erkennen alle, glaube ich, dass es ein Fehler war.

     
       

     

      Christian Doleschal (PPE). – Herr Präsident, Herr Kommissar, liebe Kolleginnen und Kollegen! Ein T-Shirt für drei Euro, eine Jacke für sieben oder ein Kinder-Plüschtier für wenige Cents: E-Commerce-Händler wie Temu oder Shein überfluten mit aggressiven Vermarktungsstrategien und Dumpingpreisen unsere Märkte. Allein 2023 exportierten Shein und Temu zusammen täglich 9000 Tonnen Fracht nach Europa. Mit ihren unlauteren Praktiken setzen sie unsere Onlinehändler, aber auch unsere Geschäfte in unseren schönen Innenstädten unter enormen Druck. Während diese sich an strenge europäische Vorschriften halten, verstoßen Temu und Shein gegen Vorgaben zur Produktsicherheit, Arbeitsbedingungen, Nachhaltigkeit, Urheberrecht und Datenschutz – ohne spürbare Konsequenzen.

    Doch eigentlich mangelt es nicht an Regeln, sondern an deren konsequenter Durchsetzung. E-Commerce-Plattformen wie Temu oder Shein nutzen geschickt Lücken in der Marktüberwachung und bei der Wareneinfuhr zu ihrem Vorteil. Fehlende innereuropäische Vernetzung beim Datenaustausch, unzureichende Zollkontrollen und die aktuell noch gültigen Zollbestimmungen begünstigen die oftmals ungeprüfte Einfuhr von Waren aus dem Ausland in massenhaften Paketen mit geringem Warenwert.

    Ja, es ist wichtig, die Aufhebung der Zollbefreiung von Waren unter 150 Euro im Rahmen der EU-Zollreform anzuregen, und dafür danke ich der Kommission. Wir müssen sehen, dass diese neuen Regeln so schnell wie möglich in Kraft treten und durchgesetzt werden. Es geht nicht darum, Protektionismus zu fördern, vielmehr geht es um fairen Wettbewerb – wenn unsere Innenstädte leer gefegt und unsere europäischen Onlinehändler zerstört sind, ist es zu spät.

     
       

     

      Bernd Lange (S&D). – Herr Präsident, Herr Kommissar, liebe Kolleginnen und Kollegen! Die Temu-Schlagzeile „Shoppen wie ein Millionär“ müsste man wahrscheinlich umdichten in „Verkaufen wie ein Milliardär“. Wir haben gehört, vier Milliarden Päckchen kommen dieses Jahr von den Onlineplattformen Temu, Shein und AliExpress, und da frage ich mich schon, Herr Kommissar: Warum haben wir da nicht eine Gleichbehandlung mit Verkäufen innerhalb der Europäischen Union?

    Ich möchte ja nicht den Markt zumachen, überhaupt nicht. Aber es kann doch nicht sein, wenn wir innerhalb der Europäischen Union RAPEX haben, andere Möglichkeiten haben und wenn da ein Laden Produkte verkauft, die nicht akzeptabel sind, wird der Laden zugemacht, und hier fragen wir immer nur nach Informationen und machen im Grunde nicht klar, wenn ein Produkt auf der Plattform ist, und das ist mehrmals passiert, dass diese Plattform eben nicht mehr liefern kann.

    Oder auch – Sie sagen, die 150 Euro müssen fallen. Fallen die 2028, wie die Kommission vorschlägt, oder eben früher? Und was ist mit dem Rat und der Zollreform? Auch hier passiert zu wenig. Nicht nur klagen, sondern auch handeln für einen fairen Wettbewerb.

     
       

     

      Valérie Deloge (PfE). – Monsieur le Président, quand on entend parler de contrefaçons, on ne pense pas tout de suite à la nourriture. Pourtant, rien qu’en 2023, ce sont 1 150 000 produits alimentaires contrefaits qui ont été saisis en France. Yaourts, pâtes, fromages, mais aussi vin, cognac, huîtres et petits pots pour bébé: tout y passe. Ces produits sont faits pour ressembler à s’y méprendre aux originaux, mais ils ne répondent pas à nos normes et peuvent causer des risques pour notre santé. Pis: ces contrefaçons sont souvent 20 % à 70 % moins chères que les originaux. Nombreux sont les consommateurs qui les achètent, pensant profiter d’offres attrayantes sur des lots de déstockage.

    Cette situation est aussi dangereuse qu’intolérable. Elle signifie que nos agriculteurs et nos transformateurs ne sont pas seulement en concurrence avec les pays étrangers qui inondent notre marché à cause d’accords de libre-échange irresponsables, ils sont aussi en concurrence avec ces fraudes, qui ternissent l’image des filières et véhiculent une image négative des produits.

    Après les manifestations de l’an dernier, vous avez dit entendre la colère du monde agricole. Vous prétendez vouloir rétablir la réputation des agriculteurs et défendre les filières européennes: voici une bonne occasion de le faire. Traquez ces produits, contrôlez l’entrée des marchandises de mauvaise qualité ou qui ne répondent pas à nos normes et rendez au consommateur l’assurance qu’en achetant des produits européens ils achèteront de la qualité. La colère des agriculteurs, elle, est toujours là. À vous maintenant de prouver que vous pouvez vraiment agir.

     
       

     

      Nicolas Bay (ECR). – Monsieur le Président, à quoi bon avoir les normes les plus strictes et les plus exigeantes du monde si c’est pour laisser notre marché être inondé par des importations qui ne les respectent pas? À quoi bon étouffer nos producteurs par la paperasse, les taxes, les règles, si c’est pour laisser leurs concurrents tricher?

    Face à la concurrence déloyale, l’Union doit autant protéger ses consommateurs que défendre ses entreprises et ses producteurs. La réciprocité et des conditions équitables de concurrence sont nécessaires pour que le commerce soit bénéfique à tous. Il est impératif de multiplier les contrôles sur les importations et il est surtout impératif de ne pas nouer des accords commerciaux déséquilibrés. Le traité avec le Mercosur, en particulier, que la Commission cherche à conclure dans la précipitation, sacrifiera comme toujours nos agriculteurs. C’est une telle certitude, d’ailleurs, qu’un fonds est déjà prévu pour les indemniser.

    Nos producteurs sont les plus respectueux à la fois des consommateurs, de leurs animaux et de l’environnement. Leurs produits sont les meilleurs au monde. Ils ne veulent pas vivre de la charité. Ils veulent vivre du plus vieux et du plus noble des métiers: le travail de la terre, le travail de nos pères. Libérons-les et laissons-les se battre à armes égales en cessant d’organiser la concurrence déloyale, qui les condamne à la disparition.

     
       

     

      Anna Stürgkh (Renew). – Herr Präsident! Ja, bei fast jeder Diskussion zur EU fällt ein Wort wie das Amen im Gebet: Regulierung. Die EU als Regulierungsweltmeister und die Regulierung als quasi Endgegner der Innovation, ganz nach dem Motto „Du, glückliches Europa, reguliere“. Dabei steckt ja hinter den Regulierungen eigentlich ein wichtiges Ziel: nämlich Menschen und Unternehmen zu schützen und sie zu unterstützen, sicherzugehen, dass sie nicht Produzentinnen und Produzenten ausgeliefert werden, die Gesetze mit Füßen treten und Profit am Ende sogar noch mit dem Leben ihrer Konsumentinnen und Konsumenten machen.

    Dafür müssen wir aber die richtige Regulierung machen, und dafür müssen wir uns auch trauen, manchmal hinderliche Regulierungen wegzulassen. Wir müssen Menschen die Sicherheit geben, dass die Produkte, die sie in Europa auch online kaufen, nicht ihre Gesundheit oder ihr Leben gefährden. Wir müssen dafür sorgen, dass die Regeln, die für europäische Produzentinnen und Produzenten gelten, auch für Produkte gelten, die in unserem Land aus Drittstaaten in unsere Haushalte kommen. Wir müssen sichergehen, dass europäische Regeln auch europäisch gelten und nicht 27-mal unterschiedlich ausgelegt werden.

    Die Ziele sind richtig, der Weg noch holprig. Aber ja, „Du glückliches Europa – reguliere“.

     
       


     

      Δημήτρης Τσιόδρας (PPE). – Κύριε Πρόεδρε, αγαπητοί συνάδελφοι, οι Ευρωπαίοι πολίτες σε πολλές περιπτώσεις νιώθουν απροστάτευτοι από αθέμιτες πρακτικές, αλλά και από τον τρόπο με τον οποίο γίνονται πολλές συναλλαγές, ιδιαίτερα στο νέο ψηφιακό περιβάλλον.

    Στο ηλεκτρονικό εμπόριο πολλές φορές οι καταναλωτές δεν αισθάνονται ότι έχουν τον πλήρη έλεγχο των συναλλαγών τους λόγω των πολύπλοκων κανόνων και των ρητρών που περιλαμβάνονται στα περιβόητα ψιλά γράμματα. Σε πολλές περιπτώσεις υπάρχουν συγκαλυμμένες χρεώσεις, ενώ ο σχεδιασμός πολλών ψηφιακών υπηρεσιών δημιουργεί εθισμό στα παιδιά και οδηγεί σε πρόσθετες χρεώσεις μέσω βιντεοπαιχνιδιών. Παράλληλα, κάθε χρόνο, καταναλωτές στην Ευρωπαϊκή Ένωση αγοράζουν, χωρίς να το γνωρίζουν, προϊόντα τα οποία δεν πληρούν τα ευρωπαϊκά πρότυπα ποιότητας και ασφάλειας.

    Ένα άλλο σημαντικό θέμα είναι ότι μεγάλες πολυεθνικές εταιρείες εκμεταλλεύονται τη δεσπόζουσα θέση τους στην αγορά για να επιβάλουν γεωγραφικούς εφοδιαστικούς περιορισμούς, επιβάλλοντας αδικαιολόγητα υψηλές τιμές. Ο πρωθυπουργός Κυριάκος Μητσοτάκης έχει στείλει στην Επιτροπή μια σχετική επιστολή και πιστεύω ότι θα πρέπει να επιληφθεί του θέματος. Είναι αναγκαία η αυστηρή τήρηση των κανόνων και, όπου χρειάζεται, περαιτέρω αυστηροποίηση της νομοθεσίας και συνεργασία των αρχών, προκειμένου οι Ευρωπαίοι καταναλωτές να αισθάνονται ότι προστατεύονται.

     
       

     

      Biljana Borzan (S&D). – Gospodine predsjedavajući, potrošačke organizacije čak 17 država prijavile se Europskoj komisiji najnoviji kineski div Temu. Propituje se sigurnost proizvoda, štetnost za zdravlje, pa čak i prodajni lanac u smislu prodaje ilegalnih proizvoda. Temu i dalje prodaje, ljudi i dalje kupuju.

    Prije nekoliko godina 18 potrošačkih organizacija prijavilo je Tik Tok europskim tijelima radi štetnog utjecaja na maloljetnike, koji čine 30 posto njihovih korisnika. Narušavanje mentalnog zdravlja, izazivanje ovisnosti, poticanje nezdravih navika i ponašanja kod djece gorući su problemi koji traže hitnu reakciju. Unatoč tome, promjene na platformi su minimalne.

    Kako prisiliti internetske divove da poštuju europska pravila? Treba dati veće ovlasti Europskoj komisiji u slučaju povrede potrošačkih prava. Pokažimo građanima da nisu sami, da je udar na naše ljude, udar i na naše institucije i da će one brzo i efikasno odgovoriti ondje gdje ih najviše boli. One koji rade greške – udarimo ih po džepu.

     
       

     

      Philippe Olivier (PfE). – Monsieur le Président, la question de la sécurité des produits n’est pas toujours affaire de développement juridique ou de normes, mais de contrôles. Elle pose la question des portes d’entrée de l’Europe, et les portes d’entrée de l’Europe, ce sont les ports. Sur Le Havre, sur 6 000 conteneurs, seuls 5 sont contrôlés. D’une manière générale, tous les ports européens tendent à être pris en main par les mafias, soit par la peur et par la menace, soit par la corruption. Personne ne s’en préoccupe.

    Comment croire que le libre-échange puisse être vertueux quand même les règles les plus élémentaires de surveillance sont en pratique bafouées aux endroits où les contrôles devraient être implacables? Que dire des matières premières qui sont vendues en Europe par des pays qui ne les possèdent pas, mais qui les volent? La République démocratique du Congo est ainsi pillée par son voisin, le Rwanda, et l’Europe commet des actes de recel en achetant à Kigali de telles matières premières.

    Si vous souhaitez ramener un peu d’éthique dans le commerce sans limites et sans règles, rétablissez les contrôles nécessaires.

     
       


     

      Henrik Dahl (PPE). – Hr. Formand. Tak for ordet. Kinesiske online platforme som Temu og Sheen presser det europæiske marked med produkter, der for det første er lodret ulovlige og for det andet er farlige. Disse produkter er for det første en risiko for forbrugerne, men de er også en direkte trussel imod det indre marked. Temu undergraver systematisk de regler, vi har bygget op for at beskytte de europæiske borgere. De regler overholder de europæiske virksomheder i modsætning til Temu. Når Temu udnytter huller i lovgivningen, så får de en unfair konkurrencefordel, som de bruger til at udkonkurrere europæiske virksomheder. EU har skabt et robust regelsæt for forbrugersikkerhed, men uden en effektiv håndhævelse er de regler ikke noget værd. Vi skal ikke tolerere, at kinesiske platforme systematisk bryder reglerne og underminerer europæiske virksomheder. Derfor er det på tide at tage kampen op mod de aktører, der misbruger systemet, skader forbrugerne og fører en form for økonomisk krig imod Europa. Europa skal være stærkt, og derfor skal Europa sanktionere de kinesiske virksomheder, som bevidst bryder reglerne.

     
       

     

      Pierre Jouvet (S&D). – Monsieur le Président, chers collègues, pour éviter un anniversaire ou un Noël sans cadeaux, des parents achètent à bas prix des jouets sur des sites chinois. Comment leur en vouloir, quand les fins de mois sont devenues si difficiles? C’est pourtant un cadeau empoisonné, parce que ces jouets sont certes peu chers, mais très probablement toxiques. D’après des tests menés en laboratoire, près de 80 % d’entre eux sont dangereux.

    En plus de ces jouets toxiques, combien de parfums irritants, de lunettes de soleil inefficaces, de jeans de contrefaçon seront vendus par ces plateformes chinoises qui inondent le marché? Temu, Shein, AliExpress importeront près de 4 milliards d’articles en Europe cette année. Ce chiffre a triplé en trois ans. Ces plateformes profitent du seuil douanier de 150 euros sur les colis internationaux pour échapper à tout contrôle. Ces entreprises violent les droits des consommateurs et nuisent aux fabricants européens, qui, eux, respectent les normes sociales et environnementales.

    L’Europe doit se réveiller et faire respecter un principe simple: «Notre marché, nos règles.»

     
       

     

      Zala Tomašič (PPE). – Gospod predsednik. V skladu s Temujevo politiko zasebnosti se osebni podatki, kot so ime, priimek, naslov, zgodovina nakupov in lokacija, lahko delijo s tretjimi oglaševalci, ponudniki storitev in poslovnimi partnerji. Temu včasih ponuja storitve, Temu včasih ponuja izdelke celo brezplačno. Ampak potrebno se je zavedati, da nič ni brezplačno.

    V zameno platforma pridobiva osebne podatke in spremlja obnašanje potrošnikov na spletu. Obstajajo pa tudi skrbi, da se ti podatki potem prodajajo tudi naprej. Le malokateri potrošnik pa se tega tudi zaveda.

    Poleg tega je kvaliteta teh izdelkov vprašljiva. Slišali smo že, kako otroške igrače takoj razpadejo na majhne dele, kako detektorji dima dima ne zaznajo. Ampak problem so tudi kozmetični izdelki, ki lahko pustijo nepopravljive poškodbe sluznice in kože.

    Močno podpiram prosti trg in konkurenčnost na trgu, vendar pa moramo zaščititi tako potrošnike pred zlorabo osebnih podatkov in škodljivimi izdelki kot tudi naše podjetnike pred nelojalno konkurenco.

     
       

     

      Maria Guzenina (S&D). – Arvoisa puhemies, komission edustajat, EU:n pitäisi olla maailman turvallisin alue ostaa tavaraa. Meillä on tiukat standardit sille, millaisia tuotteita täällä saa myydä, joten miten ihmeessä on mahdollista, että tuoreissa testeissä jopa 80 prosenttia leluista, joita myydään muun muassa kiinalaisissa verkkokaupoissa, eivät täyttäneet lelujen turvallisuusvaatimuksia. Kyse on kuluttajien, erityisesti lasten terveydestä. Kyse on ympäristömme suojelemisesta. Kyse on turvallisuudesta ja kyse on eurooppalaisten yritysten mahdollisuudesta pärjätä.

    Kiinalaiset säännöistä piittaamattomat jättimäiset verkkokaupat toimittavat kiihtyvällä vauhdilla tavaroita Eurooppaan. Suomen tullin mukaan kiinalaisten pakettien valtava määrä vaarantaa jo tullinkin toimintakyvyn.

    Tuoteturvallisuusdirektiivi, se on hyvä alku, mutta on tärkeää, että me emme lisää vastuullisten eurooppalaisten yritysten sääntelyä, vaan meidän pitää varmistaa, että kiinalaiset kaupat noudattavat eurooppalaisia sääntöjä.

    Tämän asian ratkaisemisella on kiire. Komission on tehtävä tässä tehtävänsä. Euroopan on oltava yhtenäinen tässä asiassa. Kyse on eurooppalaisten terveydestä.

     
       

     

      Niels Flemming Hansen (PPE). – Mr President, dear Commissioner, honourable colleagues, e-commerce has rapidly expanded, offering consumers access to products from around the globe. A recent study found that 30 out of 38 products from the Temu platform failed to meet European safety standards, posing a serious risk to consumers. Some 30 out of 38, my dear friends: that’s 78 %.

    This is not about protectionism. It’s about ensuring fairness and safety. Non-compliance puts the consumers at risk and creates an uneven playing field, especially for European SMEs that follow EU rules. SMEs, which are the backbone of our economy, will suffer the most.

    The scale of e-commerce makes it impossible for national customs to manage alone. In Germany, it’s estimated that there are around 400 000 packages a day from China; 78 % of that is 320 000 packages.

    Finally, this is a test of the EU’s ability to address the challenges of a globalised marketplace. We must be decisive, not only to protect our consumers, but to prove that Europe can enforce its own rules and uphold fairness in the single market.

     
       

     

      Pierfrancesco Maran (S&D). – Signor Presidente, onorevoli colleghi, caro Commissario, come ha ben sottolineato, è necessario sistemare alcuni aspetti del mercato online e questo va fatto rapidamente.

    Oggi il 70% dei cittadini europei compra beni e servizi online. Eppure esistono due mercati: uno per chi rispetta le regole e uno per chi non le rispetta e le aggira. In molti abbiamo sottolineato come alcuni soggetti sono certamente protagonisti delle violazioni.

    Operatori come Temu, Shein, AliExpress – che insieme contano 300 milioni di utenti in Europa – immettono sul mercato migliaia di prodotti non sicuri a prezzi stracciati. Loro lo sanno bene e sanno che possono farlo, perché non mettiamo ancora in campo azioni strutturali che li rendano corresponsabili.

    Questo è il punto di lavoro principale, perché non possiamo pensare di andare ad inseguire ogni consegna alle dogane. È necessario agire alla fonte nei loro confronti, perché si adoperino per una svolta nei loro comportamenti commerciali.

    Lo dobbiamo ai cittadini europei, che devono sapere che i prodotti che comprano sono sempre sicuri e non essere tentati dalla convenienza del low cost senza regole. E lo dobbiamo alle aziende che invece rispettano le regole e che meritano di non avere questa concorrenza.

     
       


     

      Elisabeth Grossmann (S&D). – Herr Präsident, Herr Kommissar, meine sehr geehrten Damen und Herren! Die Digitalisierung und der wachsende E-Commerce haben unsere Märkte grundlegend verändert, und es ist unerlässlich, dass wir als EU entschlossen handeln, um Sicherheit und Fairness zu gewährleisten. Der europäische Handel gerät durch das Onlineangebot aus dem EU-Ausland zunehmend unter Druck, und große Plattformen, vorwiegend aus China, überschwemmen gerade den europäischen Markt mit Billigangeboten und nutzen die bestehenden Schlupflöcher aus, was den Wettbewerb verzerrt und europäische Unternehmen stark benachteiligt und auch europäische Arbeitsplätze kostet und natürlich auch europäische Wertschöpfung.

    Und ich sage Ihnen: Es ist nicht fünf vor zwölf, es ist fünf nach zwölf, weil es hat sich bereits das Kaufverhalten der Menschen erheblich verändert, und es sind bereits zahlreiche Unternehmen im Produktionsbereich und auch im Handelsbereich insolvent. Und hier haben wir in Zukunft mitunter auch ein Problem mit der Versorgungssicherheit.

    Deshalb ist dringendes Handeln, rasches Handeln geboten. Es ist mit dem Gesetz über digitale Dienste und dem Gesetz über digitale Märkte einiges gelungen – aber diese Gesetze gehören auch konsequent umgesetzt, und zwar sofort.

     
       

       

    IN THE CHAIR: ESTEBAN GONZÁLEZ PONS
    Vice-President

     
       

     

      Regina Doherty (PPE). – Mr President, Commissioner, EU consumer rights are worth absolutely nothing unless they are effectively enforced. We have made some progress with the General Product Safety Regulation, which is going to come into effect later on this year, and we are working on ambitious reforms, but it’s not just about laws.

    The EU’s many market surveillance authorities have to work together in order to take risk-based market surveillance seriously, because when it comes to illegal products coming into EU countries, we should be really, really vigilant. According to the Commission, last year, 2.3 billion items worth less than EUR 150 entered the EU last year. And we’re facing what could only be described as a flood of cheap products. Member State authorities are frequently overwhelmed and sometimes just to verify whether something meets a product safety standard is next to impossible. So we need to support these authorities and make sure that they have the resources they need to do their work online markets such as China’s Temu must meet the standards that we uphold every single European company to in order to have the right to operate in the EU market.

    We don’t want protectionism, we don’t want to reduce global trade. We just want to make sure that the level playing field is level and that the people who are consuming the goods are safe from them.

     
       

     

      Salvatore De Meo (PPE). – Signor Presidente, onorevoli colleghi, in questi mesi ricorre insistentemente il tema della competitività, soprattutto in quest’Aula. Però leggiamo dalla recente relazione Letta che il 75% dei prodotti pericolosi in circolazione in Europa deriva da Paesi terzi ed è un dato in crescita preoccupante.

    Potete ben capire che questo non solo mette a rischio la competitività delle nostre imprese ma anche la salute dei nostri consumatori, ai quali invece dobbiamo garantire prodotti sicuri con controlli rigorosi, in particolare quelli acquistati sull’e-commerce, piattaforme esplose durante il periodo del COVID.

    Dobbiamo intervenire con urgenza per contrastare l’eccessiva presenza di prodotti dei Paesi terzi, che attraverso le piattaforme riescono a raggiungere con comodità milioni di utenti in tempi rapidissimi. Questa situazione crea una concorrenza sleale che penalizza le nostre imprese, che invece sono obbligate a rispettare norme sempre più stringenti, mentre molti prodotti sono importati senza i dovuti controlli.

    E allora particolare attenzione va rivolta soprattutto ai giocattoli, oppure ai farmaci, perché rivolti ai bambini e alle persone che hanno bisogno di cure. Dobbiamo garantire standard di sicurezza.

    In questo contesto, l’unione doganale può fare ovviamente molto di più e auspichiamo che, ovviamente, la riforma che è stata avviata possa essere portata a termine per garantire una vigilanza più stringente sulle importazioni, proteggendo il nostro mercato e soprattutto i nostri cittadini.

    Solo così potremo assicurare una concorrenza equa e un futuro di crescita e sicurezza per tutti.

     
       

       

    Catch-the-eye procedure

     
       



     

      Lukas Sieper (NI). – Herr Präsident, sehr geehrte Menschen Europas, Hohes Haus! Wir haben heute bereits über die Wichtigkeit des europäischen Binnenmarkts gesprochen. Umso glücklicher bin ich über diese Debatte, denn wir müssen unseren Binnenmarkt auch schützen. Wir können es nicht akzeptieren, wenn Produkte den Markt fluten, die unter Missachtung der Menschenrechte, teilweise sogar von uigurischen Zwangsarbeitern in Konzentrationslagern hergestellt werden. Wir können es nicht hinnehmen, wenn Produkte den Markt fluten, die unseren Sicherheitsstandards nicht gerecht werden. Wir können es nicht tatenlos geschehen lassen, wenn diese Produkte von autoritären Staaten gezielt subventioniert werden.

    Wir können es uns nicht leisten, wenn diese Produkte von internationalen Großkonzernen unter bewusstem Ausnutzen verschiedener Steuersysteme innerhalb der EU vertrieben werden. Schließlich: Wir können es uns nicht leisten, wenn der Binnenmarkt zerstört wird, indem er von ausländischer Konkurrenz ausgespielt wird.

    Die Menschen wollen einen starken Binnenmarkt, nicht einen auf Wish bestellt; und das fängt, wie viele meiner Kollegen zu Recht betont haben, beim Zollsystem an.

     
       


       

    (End of catch-the-eye procedure)

     
       

     

      Didier Reynders, membre de la Commission. – Monsieur le Président, Mesdames et Messieurs les députés, je voudrais d’abord vous remercier pour ce débat sur le marché intérieur et la manière dont des produits arrivent sur ce marché intérieur. Les plateformes jouent un rôle de plus en plus important en la matière. J’entends bien l’ensemble des remarques sur les règles – qui, pour une grande part, existent, même s’il y a encore du travail à faire – et sur le besoin d’un contrôle renforcé.

    Je dirais tout d’abord que nous devons mieux utiliser les outils qui arrivent et qui sont parfois déjà à notre disposition. Je voudrais féliciter les autorités chargées de la protection des consommateurs dans les États membres, que nous avons organisées en réseau. Ce réseau d’acteurs, le réseau CPC, fait déjà aujourd’hui, en relation avec les associations de consommateurs, un travail sur le terrain remarquable pour détecter et retirer des produits régulièrement, non seulement des magasins, mais aussi des plateformes en ligne. Nous avons d’ailleurs développé au sein de la Commission un outil numérique qui permet de vérifier que ces produits ne reviennent pas sur les plateformes.

    Je ne dis pas que nous détectons l’ensemble des produits ou que nous retirons l’ensemble des produits dangereux, que ce soit pour la sécurité proprement dite ou pour la santé des consommateurs, mais je voudrais saluer ce travail, sur lequel il faudra d’ailleurs à nouveau se pencher. Beaucoup ont évoqué le rôle particulier des douanes. Je voudrais confirmer que la Commission souhaite avancer en la matière. Le dossier est entre les mains des colégislateurs pour l’instant. Plusieurs ont évoqué la limite des 150 euros: nous souhaitons l’abolir. J’espère que nous pourrons aboutir prochainement à un accord entre les colégislateurs sur ce sujet. Le travail des douanes est un travail important dans le cadre de la protection des consommateurs.

    Le règlement sur les services numériques est en vigueur. Des pouvoirs ont été octroyés à la Commission, des pouvoirs que nous avons commencé à utiliser, y compris dans les domaines que vous avez évoqués et en particulier dans le cadre de plateformes qui inondent l’Union européenne de produits à bas prix. Le règlement général sur la sécurité des produits, que j’ai évoqué tout à l’heure, entrera en vigueur le 13 décembre. À travers ce règlement, comme plusieurs d’entre vous l’ont évoqué, la responsabilité personnelle des plateformes pourra être mise en cause, non seulement celle des grandes plateformes, mais aussi celle des plus petites, puisque nous avons prévu qu’une personne responsable devait être désignée dans l’Union européenne lorsque des produits sont effectivement importés sur le marché. Mais, je le répète, ce règlement général, que nous avons souhaité mettre en place pour remplacer une directive, entre en vigueur le 13 décembre prochain. Je vous invite donc à utiliser, pour le moment, les outils à disposition ou dont disposeront bientôt les différents acteurs chargés de la protection des consommateurs.

    Pour ce qui est de la poursuite du dialogue avec nos partenaires, j’ai mis en place au cours de la législature écoulée un dialogue avec les autorités américaines, notamment en matière de protection des produits. En ce qui concerne la politique des consommateurs, il y a aux États-Unis trois agences différentes, et la commission américaine chargée de la sécurité des produits est en dialogue constant avec la Commission européenne. Nous développons un dialogue similaire avec le Royaume-Uni, le Canada, le Japon, ou la Corée du Sud.

    Pour la première fois, nous avons tenu, à Paris, au sein de l’OCDE, une réunion ministérielle concernant la politique des consommateurs. Et l’OCDE, pour une fois, s’est penchée non plus seulement sur la production, mais aussi sur la consommation, et donc, réellement, sur la sécurité des produits pour les consommateurs. On voit que ce thème progresse. Nous avons d’ailleurs tenu à Bruxelles, très récemment, une semaine consacrée à la sécurité des produits, avec l’ensemble des acteurs internationaux.

    Il est vrai que nous devons aussi poursuivre le travail entamé avec la Chine. Nous le faisons par un dialogue direct, nous le faisons aussi, parfois, en collaboration avec des partenaires internationaux – nous avons mené une action trilatérale avec nos collègues américains. Je ne suis pas naïf, mais on doit continuer à tenter de convaincre nos partenaires chinois qu’il s’agit aussi d’un enjeu de réputation pour leurs produits et pour leurs entreprises, et probablement pour un nombre croissant de consommateurs chinois, qui souhaitent eux-mêmes une plus grande sécurité de leurs produits. C’est un travail qui a aussi été entamé au cours de ces dernières années.

    Enfin, vous avez évoqué des cas concrets de sécurité des produits sur des plateformes, mais aussi de produits à bas prix – je pense à Temu ou à Shein. Je l’ai dit, des actions sont en cours. Nous avons saisi le réseau des agences chargées de la protection des consommateurs sur ce sujet. Le réseau CPC y travaille. Le règlement sur les services numériques est lui aussi à l’œuvre dans le cadre de procédures visant ces plateformes, lesquelles ne posent pas seulement un problème de sécurité de produits ou de santé des consommateurs, mais aussi, vous l’avez rappelé, de concurrence déloyale, en raison de prix très faibles, de prix particulièrement bas. Elles ne sont pas seulement en concurrence avec la production de nouveaux produits en Europe, elles le sont aussi avec le marché de seconde main.

    Nous avons, avec certains d’entre vous, beaucoup travaillé au développement du droit à la réparation, qui concerne chaque consommateur et qui permet par ailleurs de renforcer le marché de seconde main. Il est clair que nous devons la protéger contre l’évolution de la concurrence déloyale, tout en demandant bien entendu au secteur de la seconde main de garantir la sécurité de ses produits au même titre que le respect d’un certain nombre de règles européennes.

    Alors, bien entendu, je ne voudrais pas conclure sans évoquer un ou deux aspects, notamment une remarque plus personnelle. La Commission a vu ses compétences directes renforcées: aussi bien celles qu’elle détient, depuis longtemps, dans le domaine de la concurrence que celles acquises plus récemment dans celui des plateformes – à travers le règlement sur les services numériques.

    Pour ce qui est des consommateurs, il est peut-être temps aussi de se poser la question, au-delà du réseau des acteurs nationaux, d’une action possible et plus directe de la Commission pour des cas qui le méritent – des cas manifestement transfrontaliers et qui concernent l’ensemble des consommateurs européens. Cela nécessite des moyens, bien entendu. C’est donc un débat qui reviendra, je l’espère, dans les prochaines années: le travail en la matière ne doit plus se limiter aux agences nationales, il doit aussi advenir à l’échelon de la Commission.

    Je terminerai en vous disant que plusieurs ont évoqué la nécessité d’agir vite. J’ai notamment entendu des remarques sur la manière dont on produit un certain nombre de biens vendus sur le marché européen, parfois en violation des règles environnementales ou des droits de l’homme. Nous avons mis cinq ans à faire adopter une directive sur le devoir de vigilance. Maintenant, il faut en entamer la mise en œuvre.

    J’espère donc que la détermination de l’ensemble des acteurs – des colégislateurs comme des États membres – sera très grande pour agir: pas uniquement quand un produit arrive sur le marché européen, mais aussi sur les chaînes d’approvisionnement, en réfléchissant à la manière de faire respecter les règles environnementales aussi bien que celles en matière de droits de l’homme, tant par les entreprises européennes que par les entreprises de pays tiers qui viennent sur le marché intérieur – y compris à travers des plateformes.

    Beaucoup reste à faire, mais je crois que des règles sont en place. Il faut maintenant les rendre effectives et, surtout, renforcer le contrôle, pour une part à l’échelon européen – lorsque c’est nécessaire.

     
       

     

      President. – The debate is closed.

     

    16. One-minute speeches on matters of political importance


     

      Φρέντης Μπελέρης (PPE). – Κύριε Πρόεδρε, αγαπητοί συνάδελφοι, θα ήθελα να μοιραστώ μαζί σας μια όμορφη πρωτοβουλία στην Ελλάδα και συγκεκριμένα στη Φουρνά Ευρυτανίας, ένα ελληνικό χωριό όπου Δήμος, Περιφέρεια και Εκκλησία συνεργάζονται αρμονικά, προσφέροντας μια καλύτερη ζωή σε μέλη νέων οικογενειών με στόχο να τους πείσουν να εγκατασταθούν στον τόπο τους. Θέλω να σας πω ότι αυτές ακριβώς τις μικρές νίκες πρέπει να αναζητούμε απέναντι στη δημογραφική κρίση· τις μάχες, δηλαδή, που δίνονται μεμονωμένα, ώστε η ευρωπαϊκή ύπαιθρος να μη «σβήσει».

    Ας δούμε όμως και τη μεγάλη εικόνα. Είναι αναγκαία η άμεση επανεκκίνηση της ευρωπαϊκής περιφέρειας. Αυτό θα το πετύχουμε με την αξιοποίηση επιτυχημένων πολιτικών και σωστή αναδιάρθρωση του ευρωπαϊκού προϋπολογισμού. Η Ευρώπη δεν πρέπει να επανέλθει στις διαφορετικές ταχύτητες με τις οποίες εξαπλώνεται το δημογραφικό πρόβλημα στα 27 κράτη μέλη, αλλά να χρηματοδοτήσει δράσεις με την ίδια ένταση και να δώσει ουσιαστικά κίνητρα.

    Κλείνοντας, κύριοι συνάδελφοι, οφείλουμε να φροντίσουμε ώστε να μη νιώθουν οι περιφέρειες και τα νησιά μας απομονωμένα. Κάθε κουκκίδα στον ευρωπαϊκό χάρτη που διασυνδέουμε με μια άλλη, είναι αυτομάτως μια μεγάλη κατάκτηση προς τον κοινό μας στόχο: να δώσουμε ξανά πνοή στην ήπειρό μας.

     
       

     

      Gabriela Firea (S&D). – Domnule președinte, vinerea trecută, tocmai a trecut, a marcat Ziua Europeană de Luptă împotriva Traficului de Persoane, o zi care ne amintește cât de fragilă este siguranța pentru multe femei și mulți copii din Europa. Din păcate, traficul de persoane, care este strâns legat de violența domestică, continuă să fie o problemă gravă. Observăm la nivelul Uniunii Europene că se fac pași importanți. A fost adoptată o versiune revizuită a directivei antitrafic, cu măsuri mai stricte pentru combaterea noilor forme de exploatare, inclusiv a celor din mediul online. Programe precum Fondul pentru azil, migrație și integrare și Programul „Cetățeni, egalitate, drepturi și valori” sprijină victimele și încearcă să prevină traficul de persoane.

    Totuși, nu este suficient și este clar că avem nevoie de o mai bună coordonare între statele membre și de o utilizare mai eficientă a fondurilor, inclusiv prin Mecanismul de redresare și reziliență. Este vital să investim mai mult în educație, în prevenție și mai ales în protecția reală a victimelor, iar cei care comit aceste crime să fie aduși în fața justiției, pentru că asta înseamnă să facem dreptate: să-i protejăm pe cei vulnerabili și să nu lăsăm nicio victimă fără voce.

     
       

     

      Julien Sanchez (PfE). – Monsieur le Président, mes chers collègues, le récent rapport de la Cour des comptes européenne sur le fonds fiduciaire d’urgence en faveur de la stabilité et de la lutte contre les causes profondes de la migration irrégulière et du phénomène des personnes déplacées en Afrique, fonds doté rappelons-le de 5 milliards d’euros d’argent public de nos concitoyens, est édifiant et accablant.

    Si les besoins sont réels et la situation préoccupante, les exemples de gaspillage sans aucun contrôle sont hélas innombrables et choquants. Oui, la Commission européenne gère notre argent avec amateurisme et légèreté. Ainsi, en Gambie, des bénéficiaires ont reçu deux fois la même aide pour des projets agricoles qui, en plus, sont des projets fictifs. En Afrique subsaharienne, des mixeurs ont été distribués dans des écoles qui n’ont même pas accès à l’électricité. Il y a des dizaines d’exemples dans ce rapport, que j’invite chacun à lire.

    J’ai trois questions. Ce programme existe-t-il juste pour se donner bonne conscience? Comment peut-on balancer des milliards et se désintéresser à ce point de l’utilisation réelle et concrète de ces fonds? Enfin: n’avez-vous pas honte de voir l’argent des contribuables ainsi dilapidé? Comment tout cela est-il possible, et pourquoi les gens qui laissent faire cela ne sont-ils pas limogés?

     
       






     

      Barry Andrews (Renew). – Mr President, Commissioner and colleagues, we are broadly agreed across this House that nothing we do or say would reward Russia for its aggression and its contempt for human rights. Equally, we are broadly agreed that we would not do or say anything that would reward Iran for its aggression. Yet we are now slowly embarking on a policy to do just that, under the banner of so-called normalisation of relations with Assad’s Syria. This will send a clear message to Russia and Iran.

    Having stood by those who sought freedom, having passed countless resolutions condemning Assad’s prisons and gulags and executions, and his use of chemical warfare, and looking for an end to impunity, now we quietly return to restore normal relations at a time that can only send one clear message: the EU will stand by those who seek freedom, but if autocrats have the patience and seek the protection of Iran and Russia, they might just succeed.

     
       

     

      Vicent Marzà Ibáñez (Verts/ALE). – Señor presidente, mientras en este Parlamento, hace unos años, y en el Consejo, justo este mes, se ha aprobado una normativa, la nueva Directiva de calidad del aire ambiente, mucho más restrictiva de acuerdo con los criterios científicos, en la ciudad de Elx, en nuestra tercera ciudad valenciana, el Gobierno da rienda suelta a la contaminación y lo que hace es destruir carriles bici, pervertir la zona de bajas emisiones promoviendo el uso del coche y, además, poner en peligro doce millones de euros de fondos europeos que no va a ejecutar con el fin para el que fueron asignados.

    Por eso, desde aquí queremos lanzar esta denuncia, en relación con todas las denuncias ciudadanas que están luchando contra esta situación en Elx, en la tercera ciudad valenciana, y pedimos a la Comisión Europea que tome cartas en el asunto. Le queremos preguntar si va a seguir permitiendo que se destinen fondos europeos contra la salud de los ilicitanos y las ilicitanas.

     
       



     

      Katarína Roth Neveďalová (NI). – Vážený pán predsedajúci, v týchto dňoch si pripomíname osemdesiate výročie Slovenského národného povstania, ktoré vypuklo 29. augusta 1944, a osemdesiate výročie karpatsko-duklianskej operácie, ktorá bola najväčšou horskou bitkou druhej svetovej vojny a najväčšou bitkou v Československu. Bohužiaľ, dnes nás opustil jeden z posledných žijúcich partizánov na Slovensku, pán Karol Kuna, ktorý sa dožil 96 rokov, a tých pamätníkov Slovenského národného povstania máme stále menej a menej. Rada by som citovala pána Kunu, ktorý povedal: Keby nebolo toľkých, ktorí pretrhli putá zotročenia, dnes by sme nežili v slobodnej krajine. Slovenskí partizáni bojovali za hodnoty odboja proti fašizmu, ako bola sloboda, spravodlivosť a rovnosť, a len vďaka nim bolo nakoniec Československo a Slovenská republika slobodnou krajinou, ktorá stála na strane víťazov. Rada by som dnes vzdala česť týmto ľuďom, ktorí padli za našu slobodu. V Slovenskom národnom povstaní padlo približne desaťtisíc ľudí, ktorí boli nielen vojaci, nielen partizáni, ale takisto civilisti, ktorí pomáhali týmto ľuďom prežiť v horách. A takisto pri duklianskej operácii padlo asi 150 tisíc ľudí. Buď stratili svoj život, svoje zdravie, alebo boli zajatí. Česť ich pamiatke.

     
       



     

      Michele Picaro (ECR). – Signor Presidente, onorevoli colleghi, il turismo dentale nei paesi extra-UE è un fenomeno in crescita che solleva importanti preoccupazioni per la salute pubblica.

    Negli ultimi anni molti pazienti europei, in particolare italiani, si sono rivolti a destinazioni come Albania e Turchia per trattamenti odontoiatrici a prezzi competitivi. Tuttavia, un’indagine della British Dental Association ha evidenziato che il 70% dei pazienti che hanno cercato cure all’estero ha sperimentato eventi avversi gravi, come infezioni e ascessi o difficoltà masticatoria, condizioni che hanno compromesso non solo la loro salute, ma anche la durata di protesi e impianti, vanificando così il vantaggio economico iniziale.

    Le norme sanitarie in questi Paesi spesso mancano di una regolamentazione rigorosa. Per questo è necessario promuovere campagne informative che forniscano ai cittadini dati chiari e affidabili sui rischi e i benefici delle cure odontoiatriche all’estero. Informare i pazienti riguardo alle normative sanitarie dei Paesi di destinazione, alla formazione del personale medico, agli standard di qualità delle strutture è cruciale per consentire scelte consapevoli.

    Per tale ragione è imperativo che il Parlamento europeo consideri queste problematiche e promuova iniziative per garantire la sicurezza e la qualità delle cure odontoiatriche. Al contrario, si tratta di garantire ad ogni paziente scelte informate, sicure e supportate da normative adeguate. Solo così potremo garantire e proteggere la salute dei cittadini e mantenere la fiducia nel sistema sanitario.

     
       

     

      Ciaran Mullooly (Renew). – Mr President, reports along the corridors of this building say a trade deal with the Mercosur countries has all but been agreed by our Commission, and talk of compensation for Irish farmers and others is widespread. But I come here this evening to give you one message, and a message back to those who send those briefs. No way! No way will we accept this.

    A study by the Irish Government Department of Enterprise in 2021 indicated that Ireland’s beef sector would lose between EUR 44 million and EUR 55 million if the EU-Mercosur deal goes ahead.

    We are the fifth largest beef exporter in the world and the biggest EU exporter, with more than 90 % traded internationally on an annual basis.

    It is not acceptable that Ireland and key other European Member States incur high environmental food-safety traceability charges, while third countries just sail in here and are simply allowed to avoid such costs and undercut our beef in prime EU markets.

    This Parliament has and must insist on one rule for everyone equally applied to the Mercosur countries, and until this equality rule applies, Ireland says no deal and no sell-out!

     
       




     

      Christophe Clergeau (S&D). – Monsieur le Président, chers collègues, jeudi matin, j’étais dans ma ville de Nantes, aux côtés des salariés de General Electric, qui s’apprête à supprimer près de 400 emplois dans son usine et son centre de recherche-développement consacrés à la production d’éoliennes maritimes.

    Il y a plus de dix ans, alors que j’étais vice-président de ma région, j’avais œuvré à la naissance de cette filière et montré aux citoyens que l’écologie pouvait créer des centaines d’emplois: d’ouvriers, de techniciens et d’ingénieurs. Aujourd’hui, je vois ces emplois disparaître parce que l’Europe et la France sont incapables de développer des projets éoliens en mer à un tarif qui permettrait de rémunérer une chaîne de valeur et des emplois européens, incapables d’imposer un contenu européen là où il y a pourtant un soutien public important.

    Nos usines risquent de fermer alors que nous en aurons besoin pour équiper les nouveaux parcs éoliens en mer. Pendant ce temps, les Chinois construisent des usines en Écosse et en Italie pour assembler des éoliennes essentiellement fabriquées en Chine. Nous parlons de politique industrielle et de compétitivité, mais, dans la vie réelle, nous laissons s’effondrer les filières des industries vertes et nous sacrifions les emplois.

    L’Europe va-t-elle enfin se réveiller, ou va-t-elle s’enferrer dans ce lent suicide collectif? Il est temps de réagir et de lutter.

     
       

     

      Mélanie Disdier (PfE). – Monsieur le Président, mes chers collègues, si je m’adresse à vous aujourd’hui, c’est pour vous parler d’une filière en danger: celle du bois.

    En 2020, toutes les grandes centrales syndicales et patronales du secteur de l’industrie de transformation du bois ont pris l’initiative d’une déclaration commune pour dire stop à l’exportation massive de grumes en Asie, et particulièrement en Chine. L’exportation du bois non transformé prend des proportions inquiétantes, et pas uniquement pour le chêne – comme c’est le cas dans la forêt de Mormal, qui m’est chère. Toutes les essences sont concernées ou le seront à court terme. Les menuisiers, artisans, constructeurs, fabricants de parquets sont très nombreux à s’alarmer, car ils sont inquiets pour leur avenir. Si les scieries sont privées d’approvisionnement, c’est toute la filière qui va être touchée à court terme.

    Dans un contexte de pénurie de matériaux, il est donc suicidaire de laisser perdurer la situation sans réagir. Le bois est devenu une ressource stratégique, qui fait partie intégrante de notre souveraineté, et une clé de la neutralité carbone. Il est grand temps que l’Union européenne s’empare de ce dossier. Des milliers d’emplois sont en jeu en France et en Europe.

     
       

     

      Dick Erixon (ECR). – Herr talman! Efter polisrazzior i Öst- och Sydeuropa tidigare i år beslagtogs Rolexklockor, guld, diamanter, smycken, lägenheter, villor, kryptovaluta, Lamborghini, Porsche och en Audi Q8.

    Ett enda kriminellt gäng misstänks ha stulit över sex miljarder kronor från coronafonden Next Generation, med hjälp av experter på bidragsansökningar, AI-verktyg och bluffbolag. När socialdemokrater och moderater släppte igenom coronafonden lovades rigorösa kontroller. Så blev det inte. Den överdimensionerade EU-budgeten göder korruption och slöseri, men hjälper även kriminella som hittat en ny kassako att mjölka genom ekobrottslighet.

    Bidragen är så stora och mottagarna så många att rigorösa kontroller inte är möjliga. Detta måste få ett slut.

     
       

     

      João Oliveira (The Left). – Senhor Presidente, o inquérito pós‑eleitoral feito pelo Parlamento Europeu mostrou que a principal preocupação dos povos é o custo de vida. Este Parlamento deveria estar a discutir as soluções para esse problema, mas nenhum outro grupo político aceitou fazer esse debate. Nenhum outro grupo político quis discutir as opções para combater o aumento do custo de vida, as medidas de controlo e fixação dos preços dos bens essenciais, medidas de combate aos preços especulativos que garantem lucros milionários dos grupos da distribuição da energia e dos combustíveis, das telecomunicações ou da banca.

    Deveríamos também estar a discutir as consequências das novas regras da governação económica. Em Portugal, o Governo acabou de apresentar uma proposta de Orçamento do Estado que mostra bem os impactos dessas novas regras, que mostra os condicionamentos e restrições orçamentais, as limitações nos serviços públicos e nas funções sociais do Estado, as restrições ao investimento; tudo isso em contraste com as políticas de privilégio aos grupos económicos e às multinacionais. Também este debate foi travado, porque, para grande parte deste Parlamento, verdadeiramente as condições de vida dos povos pouco interessam.

     
       

     

      Juan Fernando López Aguilar (S&D). – Señor presidente, señor comisario, la solidaridad y la cohesión son el modelo social europeo y si hay una amenaza que pende sobre ese modelo es la dificultad de acceso a la vivienda que recorre toda Europa.

    Este último fin de semana en Canarias, de nuevo, miles de personas han vuelto a salir a la calle para protestar contra lo que consideran que es un exceso de presión turística, porque en Canarias se ha producido un incremento de población de un 30 % en los últimos veinte años y porque, además, se han declarado en los últimos años 60 000 ofertas alojativas extrahoteleras, lo que equivale a doce hoteles con 250 camas cada uno. Pero no se han realizado las inversiones correspondientes ni en hospitales, ni en residencias, ni en redes eléctricas, ni en aeropuertos, ni en conexiones marítimas, ni tampoco en el ciclo del agua y en relación con los vertidos al mar.

    Y tenemos puestas nuestras esperanzas en la próxima Comisión Von der Leyen, en la que va a haber por fin un comisario encargado de vivienda, el danés Dan Jørgensen, que podrá movilizar fondos europeos contra los fondos de inversión, contra los fondos buitre, para generar, por fin, oferta de vivienda en alquiler o en venta que permita la emancipación de la gente joven y el acceso a la vivienda de la clase trabajadora. Eso significará una oportunidad de restaurar el modelo social europeo con una política de vivienda europea.

     
       

     

      Csaba Dömötör (PfE). – Tisztelt Elnök Úr! A legutóbbi uniós csúcson a felek arra jutottak, hogy fokozni kell az erőfeszítéseket az uniós versenyképesség növelésére. Ezzel egyet is értünk, de azt is szomorúan állapíthatjuk meg, hogy hiányzik a szókimondó párbeszéd arról, hogy mi is okozza Európa egyre nagyobb leszakadását a versenyképességi versenyben. Sok okot azonosíthatunk, de a legfontosabb mégiscsak az, hogy elszálltak az energiaárak.

    Azért szálltak el, mert Európa a brüsszeli intézmények nyomására ideológiai okokból hátat fordított a vezetékes gáznak. A helyette beszerzett cseppfolyós gáz jóval drágább. A zöld energia a legtöbb esetben sajnos szintén drágább, és ez drasztikus terhet ró az európai vállalatokra, kicsikre és nagyokra is. Nem véletlen, hogy egyre több vállalat helyezi át a termelését máshová. A Draghi-jelentés szerint Európában ma kétszer-háromszor magasabbak az áramárak az Egyesült Államokhoz képest, a gázárak pedig négyszer-ötször. Ha ez tartósan így marad, akkor Európa maradék versenyképessége is megy a levesbe. Nem kell beletörődnünk, hogy ez így legyen, újratervezésre van szükség.

     
       

     

      Thierry Mariani (PfE). – Monsieur le Président, le Liban est en danger de mort. Ni l’Union européenne ni la France ne sont à la hauteur du drame humain qui s’y joue. Face à cette guerre impitoyable, l’Union européenne s’entête dans ses certitudes et refuse de venir en aide à Damas, qui est pourtant en première ligne pour gérer l’accueil des réfugiés dans cette crise.

    Chaque jour, des milliers de personnes traversent la frontière pour chercher refuge et protection en Syrie. Aujourd’hui, ce sont déjà près de 240 000 personnes qui ont fait le choix de passer en Syrie, considérant que ce pays est un territoire sûr. Mais l’Europe et la France restent immobiles, tandis que l’Italie, elle, plaide pour renouer le dialogue avec la République arabe syrienne. La situation au Liban ne fait qu’empirer, et avec elle, si rien n’est fait, plane la menace d’une nouvelle vague migratoire de réfugiés vers l’Europe.

    Les Syriens, derrière Bachar el-Assad, ont résisté vaillamment aux islamistes qu’une partie d’entre vous, dans cet hémicycle, avait soutenus. Il est urgent de renouer les liens avec la Syrie. C’est l’intérêt des réfugiés qu’elle accueille, mais également des pays de la région, et c’est aussi l’intérêt de l’Europe.

     
       



     

      Marko Vešligaj (S&D). – Poštovani predsjedavajući, uvažene kolege, ruralna područja čine 83 posto teritorija Europske unije, a u njima živi 137 milijuna ljudi.

    Ova područja su ključna za proizvodnju temeljnih resursa poput hrane i energije. Ipak, unatoč njihovoj važnosti, ruralne zajednice sustavno se marginaliziraju konkretnim politikama i programima financiranja. Da, postoje dokumenti poput Ruralnog pakta i dugoročne vizije za ruralna područja, koje su dobre smjernice, ali njihova implementacija je spora, a problemi se gomilaju.

    Iseljavanje, manjak javnih usluga, neadekvatna infrastruktura svakodnevica su lokalnih zajednica u ruralnim prostorima, a nedostatak podrške viših razina vlasti stvara neodrživu situaciju. Danas je dodatno ruralna Europa uslijed klimatskih promjena suočena i s prirodnim katastrofama, od klizanja tla, suša, poplava do potresa i požara.

    I za takve situacije trebamo brže i jednostavnije financijske mehanizme. Zato je nužno osigurati izravna i lako dostupna europska sredstva kao garanciju razvoja i održivosti ruralnih područja i ostanka ljudi u njima.

     
       



     

      Angéline Furet (PfE). – Monsieur le Président, sous couvert d’un humanisme totalement dévoyé et de faux bons sentiments, des politiciens traîtres aux peuples européens promeuvent une idéologie fanatique qu’ils ont érigée en dogme: l’immigrationnisme.

    Malheureusement, cette volonté de suicide altruiste imposée aux Européens a des conséquences concrètes au quotidien. La ville du Mans, en France, en est un triste exemple. L’immigration y a plus que doublé en quinze ans et, avec elle, les délits et les crimes. Augmentation des vols de plus de 300 %, augmentation des viols de plus de 500 % et augmentation des attaques au couteau, elle, de 1 000 %, carrément. Oui, dix fois plus qu’avant l’arrivée sur notre sol de ces étrangers délinquants, de ces criminels importés aux frais des Européens que vous appelez les «migrants».

    Le sang des victimes de cette abomination est sur les mains des membres de la Commission européenne qui ont ordonné cette submersion et sur les mains des députés qui l’ont votée.

     
       


     

      President. – That concludes this item.

     

    17. Agenda of the next sitting

     

      President. – The next sitting is tomorrow, Tuesday, 22 October 2024 at 09:00. The agenda has been published and is available on the European Parliament website.

     

    18. Approval of the minutes of the sitting

     

      President. – The minutes of the sitting will be submitted to Parliament for its approval tomorrow, at the beginning of the afternoon.

     

    19. Closure of the sitting

       

    (The sitting closed at 22:02)

     

    MIL OSI Europe News

  • MIL-OSI: Enphase Energy Reports Financial Results for the Third Quarter of 2024

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., Oct. 22, 2024 (GLOBE NEWSWIRE) — Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world’s leading supplier of microinverter-based solar and battery systems, announced today financial results for the third quarter of 2024, which included the summary below from its President and CEO, Badri Kothandaraman.

    We reported quarterly revenue of $380.9 million in the third quarter of 2024, along with 48.1% for non-GAAP gross margin. We shipped 1,731,768 microinverters, or approximately 730.0 megawatts DC, and 172.9 megawatt hours of IQ® Batteries.

    Financial highlights for the third quarter of 2024 are listed below:

    • Quarterly revenue of $380.9 million
    • GAAP gross margin of 46.8%; non-GAAP gross margin of 48.1% with net IRA benefit
    • Non-GAAP gross margin of 38.9%, excluding net IRA benefit of 9.2%
    • GAAP operating income of $49.8 million; non-GAAP operating income of $101.4 million
    • GAAP net income of $45.8 million; non-GAAP net income of $88.4 million
    • GAAP diluted earnings per share of $0.33, non-GAAP diluted earnings per share of $0.65
    • Free cash flow of $161.6 million; ending cash, cash equivalents, and marketable securities of $1.77 billion

    Our revenue and earnings for the third quarter of 2024 are provided below, compared with the prior quarter:

    (In thousands, except per share and percentage data)

      GAAP   Non-GAAP
      Q3 2024   Q2 2024   Q3 2023   Q3 2024   Q2 2024   Q3 2023
    Revenue $ 380,873     $ 303,458     $ 551,082     $ 380,873     $ 303,458     $ 551,082  
    Gross margin   46.8 %     45.2 %     47.5 %     48.1 %     47.1 %     48.4 %
    Operating expenses $ 128,383     $ 135,367     $ 144,024     $ 81,612     $ 81,706     $ 99,027  
    Operating income $ 49,788     $ 1,799     $ 117,989     $ 101,411     $ 61,080     $ 167,593  
    Net income $ 45,762     $ 10,833     $ 113,953     $ 88,402     $ 58,824     $ 141,849  
    Basic EPS $ 0.34     $ 0.08     $ 0.84     $ 0.65     $ 0.43     $ 1.04  
    Diluted EPS $ 0.33     $ 0.08     $ 0.80     $ 0.65     $ 0.43     $ 1.02  
                                                   

    Total revenue for the third quarter of 2024 was $380.9 million, compared to $303.5 million in the second quarter of 2024. Our revenue in the United States for the third quarter of 2024 increased approximately 43%, compared to the second quarter of 2024. The increase was due to higher shipments to distributors as inventory returned to normal levels. Our revenue in Europe decreased approximately 15% for the third quarter of 2024, compared to the second quarter of 2024. The decline in revenue was the result of a further softening in European demand.

    Our non-GAAP gross margin was 48.1% in the third quarter of 2024, compared to 47.1% in the second quarter of 2024. Our non-GAAP gross margin, excluding net IRA benefit, was 38.9% in the third quarter of 2024, compared to 41.0% in the second quarter of 2024.

    Our non-GAAP operating expenses were $81.6 million in the third quarter of 2024, compared to $81.7 million in the second quarter of 2024. Our non-GAAP operating income was $101.4 million in the third quarter of 2024, compared to $61.1 million in the second quarter of 2024.

    We exited the third quarter of 2024 with $1.77 billion in cash, cash equivalents, and marketable securities and generated $170.1 million in cash flow from operations in the third quarter of 2024. Our capital expenditures were $8.5 million in the third quarter of 2024, compared to $9.6 million in the second quarter of 2024.

    In the third quarter of 2024, we repurchased 434,947 shares of our common stock at an average price of $114.48 per share for a total of approximately $49.8 million. We also spent approximately $6.3 million dollars by withholding shares to cover taxes for employee stock vesting that reduced the diluted shares by 59,607 shares.

    We shipped 172.9 megawatt hours of IQ Batteries in the third quarter of 2024, compared to 120.2 megawatt hours in the second quarter of 2024. We are now shipping our third generation of IQ Batteries, the IQ® Battery 5P™, to the United States, Puerto Rico, Mexico, Canada, Australia, the United Kingdom, Italy, France, the Netherlands, Luxembourg, and Belgium. More than 9,000 installers worldwide are certified to install our IQ Batteries, compared to more than 7,400 installers worldwide in the second quarter of 2024.

    During the third quarter of 2024, we shipped approximately 1,176,000 microinverters from our contract manufacturing facilities in the United States that we booked for 45X production tax credits. We began shipping IQ8HC™ Microinverters with higher domestic content, produced at our contract manufacturing facilities in the United States. We expect to begin shipping our commercial microinverters, and batteries with higher domestic content, produced at our United States contract manufacturing facilities in the fourth quarter of 2024.

    During the third quarter of 2024, we launched AI-based software that is designed to optimize energy use by integrating solar and consumption forecasting with electricity tariff. This is intended to help consumers maximize savings as energy markets become increasingly complex, such as with dynamic electricity rates in parts of Europe and NEM 3.0 in California. We are gearing up to launch our second-generation IQ® EV charger, the 3-Phase IQ Battery with backup, and the IQ® Balcony Solar Kit all for the European market – pushing the boundaries of innovation. Finally, our fourth-generation energy system, featuring the IQ® Meter Collar, 10 kWh IQ Battery, and enhanced IQ® Combiner, is expected to debut in the United States in early 2025, targeting a substantial reduction in installation costs.

    BUSINESS HIGHLIGHTS

    On Oct. 16, 2024, Enphase Energy announced that it started shipping IQ8™ Microinverters to support newer, high-powered solar panels in select countries and territories, including the Netherlands, Austria, New Caledonia, and Malta.

    On Oct. 9, 2024, Enphase Energy announced that it is expanding its support for grid services programs – or virtual power plants (VPPs) – in New Hampshire, North Carolina, and California, powered by the new IQ Battery 5P.

    On Oct. 3, 2024, Enphase Energy announced the launch of its IQ8X™ Microinverters in Australia, and that all IQ8 Microinverters activated starting Oct. 1, 2024 in Australia come with an industry-leading 25-year limited warranty, currently the longest standard residential warranty in the Australian market.

    On Sept. 24, 2024, Enphase Energy announced the launch of its most powerful Enphase® Energy System™ to-date, featuring the new IQ Battery 5P and IQ8 Microinverters, for customers in India.

    On Sept. 16, 2024, Enphase Energy announced that it started shipping the IQ Battery 5P in Belgium. Enphase also introduced IQ® Energy Management, its new AI-based energy management software to enable support for dynamic electricity rates and the integration of third-party EV chargers and heat pumps in Belgium.

    On Sept. 10, 2024, Enphase Energy announced initial shipments of IQ8HC Microinverters supplied from contract manufacturing facilities in the United States with higher domestic content than previous models. The microinverters have SKUs with a “DOM” suffix, indicating the increased amount of domestic content.

    On Sept. 4, 2024, Enphase Energy announced a solution for expanding legacy net energy metering (NEM) solar energy systems in California without penalty using new Enphase Energy Systems configurations with IQ® Microinverters, IQ Batteries, and Enphase Power Control.

    On Aug. 27, 2024, Enphase Energy announced the availability of pre-orders for IQ Battery 5Ps produced in the United States. Pre-orders are also available for IQ8HC Microinverters, IQ8P-3P™ Microinverters, and IQ8X Microinverters produced in the United States with higher domestic content.

    On Aug. 19, 2024, Enphase Energy announced that it started shipping the IQ Battery 5P in the Netherlands. Enphase also introduced IQ Energy Management, its new energy management software to enable support for dynamic electricity rates and the integration of third-party EV chargers and heat pumps in the Netherlands.

    On Aug. 8, 2024, Enphase Energy announced the launch of its new North American Charging Standard (NACS) connectors for its entire line of IQ EV Chargers. NACS connectors and charger ports have recently become the industry standard embraced by several major automakers for electric vehicles (EVs).

    On Aug. 5, 2024, Enphase Energy announced that it started shipping IQ8P™ and IQ8HC Microinverters to support newer, high-powered solar panels in select countries throughout the Caribbean.

    On Aug. 1, 2024, Enphase Energy announced that it started shipping IQ8 Microinverters to support newer, high-powered solar modules in select countries throughout Europe, including France, Germany, Spain, Bulgaria, Estonia, Slovakia, and Croatia.

    FOURTH QUARTER 2024 FINANCIAL OUTLOOK

    For the fourth quarter of 2024, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:

    • Revenue to be within a range of $360.0 million to $400.0 million, which includes shipments of 140 to 160 megawatt hours of IQ Batteries
    • GAAP gross margin to be within a range of 47.0% to 50.0% with net IRA benefit
    • Non-GAAP gross margin to be within a range of 49.0% to 52.0% with net IRA benefit and 39.0% to 42.0% excluding net IRA benefit. Non-GAAP gross margin excludes stock-based compensation expense and acquisition related amortization
    • Net IRA benefit to be within a range of $38.0 million to $41.0 million based on estimated shipments of 1,300,000 units of U.S. manufactured microinverters
    • GAAP operating expenses to be within a range of $135.0 million to $139.0 million
    • Non-GAAP operating expenses to be within a range of $81.0 million to $85.0 million, excluding $54.0 million estimated for stock-based compensation expense, acquisition related expenses and amortization

    For 2024, GAAP and non-GAAP annualized effective tax rate with IRA benefit, excluding discrete items, is expected to be within a range of 17.0% to 19.0%.

    Follow Enphase Online

    Use of non-GAAP Financial Measures

    Enphase Energy has presented certain non-GAAP financial measures in this press release. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this press release. Non-GAAP financial measures presented by Enphase Energy include non-GAAP gross profit, gross margin, operating expenses, income from operations, net income, net income per share (basic and diluted), net IRA benefit, and free cash flow.

    These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Enphase Energy’s results of operations as determined in accordance with GAAP. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Enphase Energy uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. Enphase Energy believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

    As presented in the “Reconciliation of Non-GAAP Financial Measures” tables below, each of the non-GAAP financial measures excludes one or more of the following items for purposes of calculating non-GAAP financial measures to facilitate an evaluation of Enphase Energy’s current operating performance and a comparison to its past operating performance:

    Stock-based compensation expense. Enphase Energy excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash in nature. Moreover, the impact of this expense is significantly affected by Enphase Energy’s stock price at the time of an award over which management has limited to no control.

    Acquisition related expenses and amortization. This item represents expenses incurred related to Enphase Energy’s business acquisitions, which are non-recurring in nature, and amortization of acquired intangible assets, which is a non-cash expense. Acquisition related expenses and amortization of acquired intangible assets are not reflective of Enphase Energy’s ongoing financial performance.

    Restructuring and asset impairment charges. Enphase Energy excludes restructuring and asset impairment charges due to the nature of the expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of fees paid for cash-based severance costs and asset write-downs of property and equipment and acquired intangible assets, and other contract termination costs resulting from restructuring initiatives.

    Non-cash interest expense. This item consists primarily of amortization of debt issuance costs and accretion of debt discount because these expenses do not represent a cash outflow for Enphase Energy except in the period the financing was secured and such amortization expense is not reflective of Enphase Energy’s ongoing financial performance.

    Non-GAAP income tax adjustment. This item represents the amount adjusted to Enphase Energy’s GAAP tax provision or benefit to exclude the income tax effects of GAAP adjustments such as stock-based compensation, amortization of purchased intangibles, and other non-recurring items that are not reflective of Enphase Energy ongoing financial performance.

    Non-GAAP net income per share, diluted. Enphase Energy excludes the dilutive effect of in-the-money portion of convertible senior notes as they are covered by convertible note hedge transactions that reduce potential dilution to our common stock upon conversion of the Notes due 2025, Notes due 2026, and Notes due 2028, and includes the dilutive effect of employee’s stock-based awards and the dilutive effect of warrants. Enphase Energy believes these adjustments provide useful supplemental information to the ongoing financial performance.

    Net IRA benefit. This item represents the advanced manufacturing production tax credit (AMPTC) from the IRA for manufacturing microinverters in the United States, partially offset by the incremental manufacturing cost incurred in the United States relative to manufacturing in Mexico, India, and China. The AMPTC is accounted for by Enphase Energy as an income-based government grants that reduces cost of revenues in the condensed consolidated statements of operations.

    Free cash flow. This item represents net cash flows from operating activities less purchases of property and equipment.

    Conference Call Information

    Enphase Energy will host a conference call for analysts and investors to discuss its third quarter 2024 results and fourth quarter 2024 business outlook today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The call is open to the public by dialing (833) 634-5018. A live webcast of the conference call will also be accessible from the “Investor Relations” section of Enphase Energy’s website at https://investor.enphase.com. Following the webcast, an archived version will be available on the website for approximately one year. In addition, an audio replay of the conference call will be available by calling (877) 344-7529; replay access code 2677879, beginning approximately one hour after the call.

    Forward-Looking Statements

    This press release contains forward-looking statements, including statements related to Enphase Energy’s expectations as to its fourth quarter of 2024 financial outlook, including revenue, shipments of IQ Batteries by megawatt hours, gross margin with net IRA benefit and excluding net IRA benefit, estimated shipments of U.S. manufactured microinverters, operating expenses, and annualized effective tax rate with IRA benefit; its expectations regarding the expected net IRA benefit; its expectations on the timing and introduction of new products and updates to existing products; its expectations for global capacity of microinverters; its ability to support grid services in new locations; the ability of its AI-based software to help consumers maximize savings as energy markets become increasingly complex; and the capabilities, advantages, features, and performance of its technology and products. These forward-looking statements are based on Enphase Energy’s current expectations and inherently involve significant risks and uncertainties. Enphase Energy’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of certain risks and uncertainties including those risks described in more detail in its most recently filed Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other documents on file with the SEC from time to time and available on the SEC’s website at http://www.sec.gov. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.

    A copy of this press release can be found on the investor relations page of Enphase Energy’s website at https://investor.enphase.com.

    About Enphase Energy, Inc.

    Enphase Energy, a global energy technology company based in Fremont, CA, is the world’s leading supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power—and control it all with a smart mobile app. The company revolutionized the solar industry with its microinverter-based technology and builds all-in-one solar, battery, and software solutions. Enphase has shipped approximately 78.0 million microinverters, and over 4.5 million Enphase-based systems have been deployed in more than 160 countries. For more information, visit https://enphase.com/.

    © 2024 Enphase Energy, Inc. All rights reserved. Enphase Energy, Enphase, the “e” logo, IQ, IQ8, and certain other marks listed at https://enphase.com/trademark-usage-guidelines are trademarks or service marks of Enphase Energy, Inc. Other names are for informational purposes and may be trademarks of their respective owners.

    Contact:

    Zach Freedman
    Enphase Energy, Inc.
    Investor Relations
    ir@enphaseenergy.com

    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
    (Unaudited)
     
      Three Months Ended Nine Months Ended
      September 30,
    2024
      June 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    Net revenues $ 380,873     $ 303,458     $ 551,082     $ 947,670     $ 1,988,216  
    Cost of revenues   202,702       166,292       289,069       516,825       1,076,490  
    Gross profit   178,171       137,166       262,013       430,845       911,726  
    Operating expenses:                  
    Research and development   47,843       48,871       54,873       150,925       172,045  
    Sales and marketing   49,671       51,775       55,357       154,753       178,383  
    General and administrative   30,192       33,550       33,794       98,924       104,456  
    Restructuring and asset impairment charges   677       1,171             3,755       870  
    Total operating expenses   128,383       135,367       144,024       408,357       455,754  
    Income from operations   49,788       1,799       117,989       22,488       455,972  
    Other income, net                  
    Interest income   19,977       19,203       19,669       58,889       49,235  
    Interest expense   (2,237 )     (2,220 )     (2,196 )     (6,653 )     (6,571 )
    Other income (expense), net   (16,785 )     (7,566 )     1,883       (24,264 )     2,276  
    Total other income, net   955       9,417       19,356       27,972       44,940  
    Income before income taxes   50,743       11,216       137,345       50,460       500,912  
    Income tax provision   (4,981 )     (383 )     (23,392 )     (9,962 )     (82,895 )
    Net income $ 45,762     $ 10,833     $ 113,953     $ 40,498     $ 418,017  
    Net income per share:                  
    Basic $ 0.34     $ 0.08     $ 0.84     $ 0.30     $ 3.06  
    Diluted $ 0.33     $ 0.08     $ 0.80     $ 0.30     $ 2.92  
    Shares used in per share calculation:                  
    Basic   135,329       135,646       136,165       135,621       136,491  
    Diluted   139,914       136,123       143,863       136,236       145,081  
                                           
    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited)
     
      September 30, 
    2024
      December 31, 
    2023
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 256,325   $ 288,748
    Marketable securities   1,510,299     1,406,286
    Accounts receivable, net   232,225     445,959
    Inventory   158,837     213,595
    Prepaid expenses and other assets   203,195     88,930
    Total current assets   2,360,881     2,443,518
    Property and equipment, net   148,444     168,244
    Operating lease, right of use asset, net   28,120     19,887
    Intangible assets, net   51,152     68,536
    Goodwill   214,292     214,562
    Other assets   185,448     215,895
    Deferred tax assets, net   275,854     252,370
    Total assets $ 3,264,191   $ 3,383,012
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable $ 112,417   $ 116,164
    Accrued liabilities   189,819     261,919
    Deferred revenues, current   129,556     118,300
    Warranty obligations, current   35,755     36,066
    Debt, current   99,931    
    Total current liabilities   567,478     532,449
    Long-term liabilities:      
    Deferred revenues, non-current   354,210     369,172
    Warranty obligations, non-current   148,477     153,021
    Other liabilities   62,392     51,008
    Debt, non-current   1,200,261     1,293,738
    Total liabilities   2,332,818     2,399,388
    Total stockholders’ equity   931,373     983,624
    Total liabilities and stockholders’ equity $ 3,264,191   $ 3,383,012
               
    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)
     
      Three Months Ended   Nine Months Ended
      September 30, 
    2024
      June 30, 
    2024
      September 30, 
    2023
      September 30, 
    2024
      September 30, 
    2023
    Cash flows from operating activities:                  
    Net income $ 45,762     $ 10,833     $ 113,953     $ 40,498     $ 418,017  
    Adjustments to reconcile net income to net cash provided by operating activities:                  
    Depreciation and amortization   20,103       20,484       19,448       60,724       53,867  
    Net amortization (accretion) of premium (discount) on marketable securities   (2,904 )     (1,030 )     5,094       (1,109 )     (12,611 )
    Provision for doubtful accounts   2,704       1,897       653       4,471       1,282  
    Asset impairment   17,568       6,241       903       24,141       903  
    Non-cash interest expense   2,173       2,157       2,114       6,462       6,254  
    Net loss (gain) from change in fair value of debt securities   741       1,931       (1,910 )     1,730       (5,408 )
    Stock-based compensation   45,940       52,757       43,814       159,530       157,635  
    Deferred income taxes   (5,276 )     (14,076 )     (11,499 )     (27,644 )     (38,295 )
    Changes in operating assets and liabilities:                  
    Accounts receivable   49,414       82,183       (34,752 )     208,956       (118,249 )
    Inventory   17,231       31,825       (8,003 )     54,758       (24,406 )
    Prepaid expenses and other assets   (64,149 )     (42,810 )     (15,383 )     (117,856 )     (57,376 )
    Accounts payable, accrued and other liabilities   32,088       (23,944 )     9,903       (58,140 )     117,128  
    Warranty obligations   7,053       15       8,151       (4,855 )     57,420  
    Deferred revenues   1,690       (1,401 )     13,369       (5,265 )     105,169  
    Net cash provided by operating activities   170,138       127,062       145,855       346,401       661,330  
    Cash flows from investing activities:                  
    Purchases of property and equipment   (8,533 )     (9,636 )     (23,848 )     (25,540 )     (90,326 )
    Purchases of marketable securities   (319,190 )     (300,053 )     (470,766 )     (1,091,511 )     (1,743,674 )
    Maturities and sale of marketable securities   215,241       282,063       494,804       994,677       1,406,608  
    Investments in private companies               (15,000 )           (15,000 )
    Net cash used in investing activities   (112,482 )     (27,626 )     (14,810 )     (122,374 )     (442,392 )
    Cash flows from financing activities:                  
    Partial settlement of convertible notes   (5 )                 (7 )      
    Repurchase of common stock   (49,794 )     (99,908 )     (110,000 )     (191,698 )     (310,000 )
    Proceeds from issuance of common stock under employee equity plans   14       6,769       719       7,969       1,315  
    Payment of withholding taxes related to net share settlement of equity awards   (6,286 )     (7,473 )     (8,465 )     (73,801 )     (93,100 )
    Net cash used in financing activities   (56,071 )     (100,612 )     (117,746 )     (257,537 )     (401,785 )
    Effect of exchange rate changes on cash and cash equivalents   2,638       (374 )     (1,900 )     1,087       (322 )
    Net increase (decrease) in cash and cash equivalents   4,223       (1,550 )     11,399       (32,423 )     (183,169 )
    Cash and cash equivalents—Beginning of period   252,102       253,652       278,676       288,748       473,244  
    Cash and cash equivalents —End of period $ 256,325     $ 252,102     $ 290,075     $ 256,325     $ 290,075  
                                           
    ENPHASE ENERGY, INC.
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    (In thousands, except per share data and percentages)
    (Unaudited)
     
      Three Months Ended   Nine Months Ended
      September 30, 
    2024
      June 30, 
    2024
      September 30, 
    2023
      September 30, 
    2024
      September 30, 
    2023
    Gross profit (GAAP) $ 178,171     $ 137,166     $ 262,013     $ 430,845     $ 911,726  
    Stock-based compensation   2,948       3,730       2,708       10,860       9,775  
    Acquisition related amortization   1,904       1,890       1,899       5,685       5,686  
    Gross profit (Non-GAAP) $ 183,023     $ 142,786     $ 266,620     $ 447,390     $ 927,187  
                       
    Gross margin (GAAP)   46.8 %     45.2 %     47.5 %     45.5 %     45.9 %
    Stock-based compensation   0.8       1.3       0.6       1.1       0.5  
    Acquisition related amortization   0.5       0.6       0.3       0.6       0.2  
    Gross margin (Non-GAAP)   48.1 %     47.1 %     48.4 %     47.2 %     46.6 %
                       
    Operating expenses (GAAP) $ 128,383     $ 135,367     $ 144,024     $ 408,357     $ 455,754  
    Stock-based compensation(1)   (42,992 )     (49,027 )     (41,106 )     (148,670 )     (147,860 )
    Acquisition related expenses and amortization   (3,102 )     (3,463 )     (3,891 )     (10,027 )     (11,429 )
    Restructuring and asset impairment charges   (677 )     (1,171 )           (3,755 )     (901 )
    Operating expenses (Non-GAAP) $ 81,612     $ 81,706     $ 99,027     $ 245,905     $ 295,564  
                       
    (1)Includes stock-based compensation as follows:                  
    Research and development $ 19,790     $ 20,210     $ 19,285     $ 64,550     $ 64,528  
    Sales and marketing   14,237       16,784       13,297       49,199       49,231  
    General and administrative   8,965       12,033       8,524       34,921       34,101  
    Total $ 42,992     $ 49,027     $ 41,106     $ 148,670     $ 147,860  
                       
    Income from operations (GAAP) $ 49,788     $ 1,799     $ 117,989     $ 22,488     $ 455,972  
    Stock-based compensation   45,940       52,757       43,814       159,530       157,635  
    Acquisition related expenses and amortization   5,006       5,353       5,790       15,712       17,115  
    Restructuring and asset impairment charges   677       1,171             3,755       901  
    Income from operations (Non-GAAP) $ 101,411     $ 61,080     $ 167,593     $ 201,485     $ 631,623  
                       
    Net income (GAAP) $ 45,762     $ 10,833     $ 113,953     $ 40,498     $ 418,017  
    Stock-based compensation   45,940       52,757       43,814       159,530       157,635  
    Acquisition related expenses and amortization   5,006       5,353       5,790       15,712       17,115  
    Restructuring and asset impairment charges   677       1,171             3,755       901  
    Non-cash interest expense   2,173       2,157       2,114       6,462       6,254  
    Non-GAAP income tax adjustment   (11,156 )     (13,447 )     (23,822 )     (30,775 )     (61,413 )
    Net income (Non-GAAP) $ 88,402     $ 58,824     $ 141,849     $ 195,182     $ 538,509  
                       
    Net income per share, basic (GAAP) $ 0.34     $ 0.08     $ 0.84     $ 0.30     $ 3.06  
    Stock-based compensation   0.34       0.39       0.32       1.17       1.15  
    Acquisition related expenses and amortization   0.04       0.04       0.04       0.12       0.13  
    Restructuring and asset impairment charges   0.01       0.01             0.03       0.01  
    Non-cash interest expense   0.02       0.02       0.02       0.05       0.04  
    Non-GAAP income tax adjustment   (0.10 )     (0.11 )     (0.18 )     (0.23 )     (0.44 )
    Net income per share, basic (Non-GAAP) $ 0.65     $ 0.43     $ 1.04     $ 1.44     $ 3.95  
                       
    Shares used in basic per share calculation GAAP and Non-GAAP   135,329       135,646       136,165       135,621       136,491  
                       
    Net income per share, diluted (GAAP) $ 0.33     $ 0.08     $ 0.80     $ 0.30     $ 2.92  
    Stock-based compensation   0.33       0.38       0.32       1.17       1.17  
    Acquisition related expenses and amortization   0.04       0.04       0.04       0.12       0.12  
    Restructuring and asset impairment charges   0.01       0.01             0.03       0.01  
    Non-cash interest expense   0.02       0.02       0.02       0.05       0.04  
    Non-GAAP income tax adjustment   (0.08 )     (0.10 )     (0.16 )     (0.24 )     (0.40 )
    Net income per share, diluted (Non-GAAP)(2) $ 0.65     $ 0.43     $ 1.02     $ 1.43     $ 3.86  
                       
    Shares used in diluted per share calculation GAAP   139,914       136,123       143,863       136,236       145,081  
    Shares used in diluted per share calculation Non-GAAP   135,839       136,123       138,535       136,236       139,753  
                       
    Income-based government grants (GAAP) $ 46,552     $ 24,329     $ 18,532     $ 89,498     $ 20,583  
    Incremental cost for manufacturing in U.S.   (11,396 )     (5,950 )     (4,085 )     (22,228 )     (4,491 )
    Net IRA benefit (Non-GAAP) $ 35,156     $ 18,379     $ 14,447     $ 67,270     $ 16,092  
                       
    Net cash provided by operating activities (GAAP) $ 170,138     $ 127,062     $ 145,855     $ 346,401     $ 661,330  
    Purchases of property and equipment   (8,533 )     (9,636 )     (23,848 )     (25,540 )     (90,326 )
    Free cash flow (Non-GAAP) $ 161,605     $ 117,426     $ 122,007     $ 320,861     $ 571,004  
                                           

    (2) Calculation of non-GAAP diluted net income per share for the three and nine months ended September 30, 2023 excludes convertible Notes due 2023 interest expense, net of tax of less than $0.1 million from non-GAAP net income.

    This press release was published by a CLEAR® Verified individual.

    The MIL Network

  • MIL-OSI: Hanmi Reports 2024 Third Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, Oct. 22, 2024 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the third quarter of 2024.

    Net income for the third quarter of 2024 was $14.9 million, or $0.49 per diluted share, compared with $14.5 million, or $0.48 per diluted share, for the second quarter of 2024. The return on average assets for the third quarter of 2024 was 0.79% and the return on average equity was 7.55%, compared with a return on average assets of 0.77% and the return on average equity of 7.50% for the second quarter of 2024.

    CEO Commentary
    “Our third quarter results were strong, with solid performance across all key operating metrics in the third quarter,” said Bonnie Lee, President and Chief Executive Officer of Hanmi.  “Net interest margin increased five basis points to 2.74% driven by higher yields on interest-earning assets and lower funding costs. Loans grew by 2% driven by a 27% increase in loan production and total deposits were up led by 5% growth in noninterest-bearing demand deposits. These results reflect the continued success of our relationship banking model and our portfolio diversification strategy.”

    “During the quarter, we remained focused on our disciplined credit administration practices and are pleased to report that we resolved several criticized and nonaccrual loans and recognized a recovery on a previously charged-off loan. We also proactively moved three loans to the special mention category to monitor them more closely. These loans are current, and we are confident they are well protected.”

    “Hanmi is well-positioned for a strong close to 2024 with a robust balance sheet, ample liquidity, healthy capital ratios, and a solid loan pipeline. Our team remains committed to delivering the solutions our customers need and results our shareholders expect,” concluded Lee.

    Third Quarter 2024 Highlights: 

    • Third quarter net income was $14.9 million, or $0.49 per diluted share, compared with $14.5 million, or $0.48 per diluted share for the second quarter of 2024. The increase reflects a $2.0 million, or 9.4%, increase in pretax, preprovision income, propelled by a 2.9% increase in net interest income.
    • Loans receivable were $6.26 billion at September 30, 2024, up 1.3% from the end of the second quarter of 2024, driven by a 27% increase in loan production to $347.8 million with a weighted average interest rate of 7.92%.
    • Deposits were $6.40 billion at September 30, 2024, up 1.2% from the end of the second quarter of 2024; noninterest-bearing demand deposits were 32.0% of total deposits. During the quarter, noninterest bearing demand deposits grew 4.7%, while time deposits declined 3.2% from the prior quarter.
    • Net interest income for the third quarter was $50.1 million, up 2.9% from the second quarter of 2024, driven by strong operational performance. Net interest margin (taxable equivalent) expanded five basis points to 2.74%, as the average yield on loans increased to 6.00%, while the cost of interest-bearing deposits remained unchanged at 4.27%.
    • Noninterest expense was $35.1 million for the third quarter, down 0.6% from the second quarter of 2024, primarily reflecting the absence of the second quarter $0.3 million branch consolidation charge.
    • Credit loss expense for the third quarter was $2.3 million, compared with $1.0 million for the prior quarter. The allowance for credit losses increased $1.4 million to $69.2 million at September 30, 2024, or 1.11% of loans. For the third quarter, net loan charge-offs of $0.9 million included a $1.1 million charge-off on a nonaccrual loan transferred to held-for-sale and a $1.7 million recovery of a nonaccrual loan.
    • Asset quality included several notable actions: nonaccrual loans fell 18.8% to $15.2 million and included pay-offs of $6.8 million while criticized assets increased, with downgrades to special mention of three loans totaling $129.8 million, offset by the move to the held-for-sale nonaccrual loan category of the previously identified $28.3 million completed construction loan, upgrades of $6.1 million, and additional loan pay-offs of $1.3 million. Subsequent to the end of the third quarter, the Bank completed the sale of the nonaccrual loan.

    For more information about Hanmi, please see the Q3 2024 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at http://www.hanmi.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at http://www.sec.gov. Also, please refer to “Non-GAAP Financial Measures” herein for further details of the presentation of certain non-GAAP financial measures.

    Quarterly Highlights
    (Dollars in thousands, except per share data)

      As of or for the Three Months Ended     Amount Change  
      September 30,     June 30,     March 31,     December 31,     September 30,     Q3-24     Q3-24  
      2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
                                             
    Net income $ 14,892     $ 14,451     $ 15,164     $ 18,633     $ 18,796     $ 441     $ (3,904 )
    Net income per diluted common share $ 0.49     $ 0.48     $ 0.50     $ 0.61     $ 0.62     $ 0.01     $ (0.13 )
                                             
    Assets $ 7,712,299     $ 7,586,347     $ 7,512,046     $ 7,570,341     $ 7,350,140     $ 125,952     $ 362,159  
    Loans receivable $ 6,257,744     $ 6,176,359     $ 6,177,840     $ 6,182,434     $ 6,020,785     $ 81,385     $ 236,959  
    Deposits $ 6,403,221     $ 6,329,340     $ 6,376,060     $ 6,280,574     $ 6,260,072     $ 73,881     $ 143,149  
                                             
    Return on average assets   0.79 %     0.77 %     0.81 %     0.99 %     1.00 %     0.02       -0.21  
    Return on average stockholders’ equity   7.55 %     7.50 %     7.90 %     9.70 %     9.88 %     0.06       -2.33  
                                             
    Net interest margin   2.74 %     2.69 %     2.78 %     2.92 %     3.03 %     0.05       -0.29  
    Efficiency ratio (1)   59.98 %     62.24 %     62.42 %     58.86 %     51.82 %     -2.26       8.16  
                                             
    Tangible common equity to tangible assets (2)   9.42 %     9.19 %     9.23 %     9.14 %     8.89 %     0.23       0.53  
    Tangible common equity per common share (2) $ 24.03     $ 22.99     $ 22.86     $ 22.75     $ 21.45       1.04       2.58  
                                             
    (1)       Noninterest expense divided by net interest income plus noninterest income.  
    (2)       Refer to “Non-GAAP Financial Measures” for further details.  


    Results of Operations

    Net interest income for the third quarter was $50.1 million, up 2.9% from $48.6 million for the second quarter of 2024. The increase was primarily due to an increase in loan interest income. The increase in loan interest income was a result of increases in loan yields and average balances. The yield on average loans for the third quarter increased slightly to 6.00% from 5.99% for the second quarter of 2024. Average loans were $6.11 billion for the third quarter of 2024, up 0.4% from $6.09 billion for the second quarter. The cost of interest-bearing deposits was 4.27% for the third quarter of 2024, unchanged from the prior quarter. Average interest-bearing deposits were $4.40 billion for the third quarter, up 0.3%, from $4.38 billion for the prior quarter. Net interest margin (taxable equivalent) for the third quarter was 2.74%, compared with 2.69% for the second quarter of 2024.

      For the Three Months Ended (in thousands)     Percentage Change  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
    Net Interest Income 2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
                                             
    Interest and fees on loans receivable(1) $ 92,182     $ 90,752     $ 91,674     $ 89,922     $ 85,398       1.6 %     7.9 %
    Interest on securities   5,523       5,238       4,955       4,583       4,204       5.4 %     31.4 %
    Dividends on FHLB stock   356       357       361       341       317       -0.3 %     12.3 %
    Interest on deposits in other banks   2,356       2,313       2,604       2,337       4,153       1.9 %     -43.3 %
    Total interest and dividend income $ 100,417     $ 98,660     $ 99,594     $ 97,183     $ 94,072       1.8 %     6.7 %
                                             
    Interest on deposits   47,153       46,495       45,638       40,277       36,818       1.4 %     28.1 %
    Interest on borrowings   1,561       1,896       1,655       2,112       753       -17.7 %     107.3 %
    Interest on subordinated debentures   1,652       1,649       1,646       1,654       1,646       0.2 %     0.4 %
    Total interest expense   50,366       50,040       48,939       44,043       39,217       0.7 %     28.4 %
    Net interest income $ 50,051     $ 48,620     $ 50,655     $ 53,140     $ 54,855       2.9 %     -8.8 %
                                             
    (1)      Includes loans held for sale.  
      For the Three Months Ended (in thousands)     Percentage Change  
    Average Earning Assets and   Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
    Interest-bearing Liabilities 2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
    Loans receivable (1) $ 6,112,324     $ 6,089,440     $ 6,137,888     $ 6,071,644     $ 5,915,423       0.4 %     3.3 %
    Securities   986,041       979,671       969,520       961,551       955,473       0.7 %     3.2 %
    FHLB stock   16,385       16,385       16,385       16,385       16,385       0.0 %     0.0 %
    Interest-bearing deposits in other banks   183,027       180,177       201,724       181,140       317,498       1.6 %     -42.4 %
    Average interest-earning assets $ 7,297,777     $ 7,265,673     $ 7,325,517     $ 7,230,720     $ 7,204,779       0.4 %     1.3 %
                                             
    Demand: interest-bearing $ 83,647     $ 85,443     $ 86,401     $ 86,679     $ 94,703       -2.1 %     -11.7 %
    Money market and savings   1,885,799       1,845,870       1,815,085       1,669,973       1,601,826       2.2 %     17.7 %
    Time deposits   2,427,737       2,453,154       2,507,830       2,417,803       2,438,112       -1.0 %     -0.4 %
    Average interest-bearing deposits   4,397,183       4,384,467       4,409,316       4,174,455       4,134,641       0.3 %     6.3 %
    Borrowings   143,479       169,525       162,418       205,951       120,381       -15.4 %     19.2 %
    Subordinated debentures   130,403       130,239       130,088       129,933       129,780       0.1 %     0.5 %
    Average interest-bearing liabilities $ 4,671,065     $ 4,684,231     $ 4,701,822     $ 4,510,339     $ 4,384,802       -0.3 %     6.5 %
                                             
    Average Noninterest Bearing Deposits                                        
    Demand deposits – noninterest bearing $ 1,908,833     $ 1,883,765     $ 1,921,189     $ 2,025,212     $ 2,136,156       1.3 %     -10.6 %
                                             
    (1)      Includes loans held for sale.                     
      For the Three Months Ended     Yield/Rate Change  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
    Average Yields and Rates 2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
    Loans receivable(1)   6.00 %     5.99 %     6.00 %     5.88 %     5.73 %     0.01       0.27  
    Securities (2)   2.27 %     2.17 %     2.07 %     1.93 %     1.79 %     0.10       0.48  
    FHLB stock   8.65 %     8.77 %     8.87 %     8.25 %     7.67 %     -0.12       0.98  
    Interest-bearing deposits in other banks   5.12 %     5.16 %     5.19 %     5.12 %     5.19 %     -0.04       -0.07  
    Interest-earning assets   5.48 %     5.46 %     5.47 %     5.34 %     5.19 %     0.02       0.29  
                                             
    Interest-bearing deposits   4.27 %     4.27 %     4.16 %     3.83 %     3.53 %     0.00       0.74  
    Borrowings   4.33 %     4.50 %     4.10 %     4.07 %     2.48 %     -0.17       1.85  
    Subordinated debentures   5.07 %     5.07 %     5.06 %     5.09 %     5.07 %     0.00       0.00  
    Interest-bearing liabilities   4.29 %     4.30 %     4.19 %     3.88 %     3.55 %     -0.01       0.74  
                                             
    Net interest margin (taxable equivalent basis)   2.74 %     2.69 %     2.78 %     2.92 %     3.03 %     0.05       -0.29  
                                             
    Cost of deposits   2.97 %     2.98 %     2.90 %     2.58 %     2.33 %     -0.01       0.64  
                                             
    (1)      Includes loans held for sale.  
    (2)      Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.  

    Credit loss expense for the third quarter was $2.3 million, compared with $1.0 million for the second quarter of 2024. Third quarter credit loss expense included a $2.3 million credit loss expense for loan losses. Third quarter net loan charge-offs were $0.9 million, compared with second quarter net loan charge-offs of $1.8 million. Third quarter net loan charge-offs included a $1.1 million charge-off on a nonaccrual loan transferred to held-for-sale and a $1.7 million recovery on a nonaccrual loan.

    Noninterest income for the third quarter increased $0.3 million to $8.4 million, or 4.7%, from $8.1 million for the second quarter of 2024. Third quarter noninterest income included a $0.9 million gain from the sale and leaseback of a branch property, while second quarter noninterest income included a $0.3 million death benefit on bank-owned life insurance. Gains on sales of SBA loans were $1.5 million for the third quarter of 2024, compared with $1.6 million for the second quarter of 2024. The volume of SBA loans sold in the third quarter decreased to $23.0 million, from $23.5 million for the second quarter of 2024, while trade premiums were 8.54% for the third quarter of 2024, unchanged from the second quarter. Mortgage loans sold in the third quarter were $20.9 million, with a premium of 2.32%, compared with $19.5 million and 2.00% for the second quarter, resulting in income of $0.3 million for the third quarter, compared with $0.4 million for the prior quarter.

      For the Three Months Ended (in thousands)     Percentage Change  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
    Noninterest Income 2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
    Service charges on deposit accounts $ 2,311     $ 2,429     $ 2,450     $ 2,391     $ 2,605       -4.9 %     -11.3 %
    Trade finance and other service charges and fees   1,254       1,277       1,414       1,245       1,155       -1.8 %     8.6 %
    Servicing income   817       796       712       772       838       2.6 %     -2.5 %
    Bank-owned life insurance income (expense)   320       638       304       (29 )     280       -49.8 %     14.3 %
    All other operating income   1,008       908       928       853       1,178       11.0 %     -14.4 %
    Service charges, fees & other   5,710       6,048       5,808       5,232       6,056       -5.6 %     -5.7 %
                                             
    Gain on sale of SBA loans   1,544       1,644       1,482       1,448       1,172       -6.1 %     31.7 %
    Gain on sale of mortgage loans   324       365       443                   -11.2 %     100.0 %
    Gain on sale of bank premises   860                         4,000       100.0 %     -78.5 %
    Total noninterest income $ 8,438     $ 8,057     $ 7,733     $ 6,680     $ 11,228       4.7 %     -24.8 %

    Noninterest expense for the third quarter decreased by $0.2 million to $35.1 million from $35.3 million for the second quarter of 2024. The decrease reflects primarily the absence of the $0.3 million branch consolidation expense recognized in the second quarter of 2024. The efficiency ratio for the third quarter was 60.0%, compared with 62.2% for the second quarter of 2024.

      For the Three Months Ended (in thousands)     Percentage Change  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
      2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
    Noninterest Expense                                        
    Salaries and employee benefits $ 20,851     $ 20,434     $ 21,585     $ 20,062     $ 20,361       2.0 %     2.4 %
    Occupancy and equipment   4,499       4,348       4,537       4,604       4,825       3.5 %     -6.8 %
    Data processing   3,839       3,686       3,551       3,487       3,490       4.2 %     10.0 %
    Professional fees   1,492       1,749       1,893       1,977       1,568       -14.7 %     -4.8 %
    Supplies and communication   538       570       601       613       552       -5.6 %     -2.5 %
    Advertising and promotion   631       669       907       990       534       -5.7 %     18.2 %
    All other operating expenses   2,875       3,251       3,160       3,252       2,852       -11.6 %     0.8 %
    Subtotal   34,725       34,707       36,234       34,985       34,182       0.1 %     1.6 %
                                             
    Branch consolidation expense         301                         -100.0 %     0.0 %
    Other real estate owned expense   77       6       22       15       16       1183.3 %     381.3 %
    Repossessed personal property expense   278       262       189       211       47       6.1 %     491.5 %
    Total noninterest expense $ 35,080     $ 35,276     $ 36,445     $ 35,211     $ 34,245       -0.6 %     2.4 %

    Hanmi recorded a provision for income taxes of $6.2 million for the third quarter of 2024, compared with $6.0 million for the second quarter of 2024, representing an effective tax rate of 29.5% and 29.3%, respectively.

    Financial Position
    Total assets at September 30, 2024 increased 1.7%, or $126.0 million, to $7.71 billion from $7.59 billion at June 30, 2024. The sequential quarter increase was due to a $125.3 million increase in loans and loans held-for-sale, and a $31.3 million increase in securities, offset partially by a $25.3 million decrease in cash and due from banks.

    Loans receivable, before allowance for credit losses, were $6.26 billion at September 30, 2024, up from $6.18 billion at June 30, 2024.

    Loans held-for-sale were $54.3 million at September 30, 2024, up from $10.5 million at June 30, 2024. At the end of the third quarter, loans held-for-sale consisted of $8.8 million of the guaranteed portion of SBA 7(a) loans, $18.3 million of residential mortgage loans and the $27.2 million nonaccrual loan. Subsequent to the end of the third quarter, the Bank completed the sale of this nonaccrual loan.

      As of (in thousands)     Percentage Change  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
      2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
    Loan Portfolio                                        
    Commercial real estate loans $ 3,932,088     $ 3,888,505     $ 3,878,677     $ 3,889,739     $ 3,773,015       1.1 %     4.2 %
    Residential/consumer loans   939,285       954,209       970,362       962,661       926,326       -1.6 %     1.4 %
    Commercial and industrial loans   879,092       802,372       774,851       747,819       728,792       9.6 %     20.6 %
    Equipment finance   507,279       531,273       553,950       582,215       592,652       -4.5 %     -14.4 %
    Loans receivable   6,257,744       6,176,359       6,177,840       6,182,434       6,020,785       1.3 %     3.9 %
    Loans held for sale   54,336       10,467       3,999       12,013       11,767       419.1 %     361.8 %
    Total $ 6,312,080     $ 6,186,826     $ 6,181,839     $ 6,194,447     $ 6,032,552       2.0 %     4.6 %
      As of  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,  
      2024     2024     2024     2023     2023  
    Composition of Loan Portfolio                            
    Commercial real estate loans   62.3 %     62.9 %     62.7 %     62.8 %     62.5 %
    Residential/consumer loans   14.9 %     15.4 %     15.7 %     15.5 %     15.4 %
    Commercial and industrial loans   13.9 %     13.0 %     12.5 %     12.1 %     12.1 %
    Equipment finance   8.0 %     8.5 %     9.0 %     9.4 %     9.8 %
    Loans receivable   99.1 %     99.8 %     99.9 %     99.8 %     99.8 %
    Loans held for sale   0.9 %     0.2 %     0.1 %     0.2 %     0.2 %
    Total   100.0 %     100.0 %     100.0 %     100.0 %     100.0 %

    New loan production was $347.8 million for the third quarter of 2024 at an average rate of 7.92%, while payoffs were $77.6 million during the quarter at an average rate of 6.63%.

    Commercial real estate loan production for the third quarter of 2024 was $110.2 million. Commercial and industrial loan production was $105.1 million, SBA loan production was $51.6 million, equipment finance production was $40.1 million, and residential mortgage loan production was $40.8 million.

      For the Three Months Ended (in thousands)  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,  
      2024     2024     2024     2023     2023  
    New Loan Production                            
    Commercial real estate loans $ 110,246     $ 87,632     $ 60,085     $ 178,157     $ 106,151  
    Commercial and industrial loans   105,086       59,007       50,789       52,079       67,907  
    SBA loans   51,616       54,486       30,817       48,432       36,109  
    Equipment finance   40,066       42,594       39,155       57,334       71,075  
    Residential/consumer loans   40,758       30,194       53,115       53,465       55,026  
    Subtotal   347,772       273,913       233,961       389,467       336,268  
                                 
                                 
    Payoffs   (77,603 )     (148,400 )     (86,250 )     (77,961 )     (62,140 )
    Amortization   (151,674 )     (83,640 )     (90,711 )     (106,610 )     (116,411 )
    Loan sales   (43,868 )     (42,945 )     (55,321 )     (29,861 )     (22,496 )
    Net line utilization   9,426       1,929       (4,150 )     (11,609 )     (70,238 )
    Charge-offs & OREO   (2,668 )     (2,338 )     (2,123 )     (1,777 )     (9,369 )
                                 
    Loans receivable-beginning balance   6,176,359       6,177,840       6,182,434       6,020,785       5,965,171  
    Loans receivable-ending balance $ 6,257,744     $ 6,176,359     $ 6,177,840     $ 6,182,434     $ 6,020,785  

    Deposits were $6.40 billion at the end of the third quarter of 2024, up $73.9 million, or 1.2%, from $6.33 billion at the end of the prior quarter. Driving the change was a $91.8 million increase in noninterest-bearing demand deposits and a $64.0 million increase in money market and savings deposits, partially offset by a $78.3 million decrease in time deposits. Noninterest-bearing demand deposits represented 32.0% of total deposits at September 30, 2024 and the loan-to-deposit ratio was 97.7%.

      As of (in thousands)     Percentage Change  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
      2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
    Deposit Portfolio                                        
    Demand: noninterest-bearing $ 2,051,790     $ 1,959,963     $ 1,933,060     $ 2,003,596     $ 2,161,238       4.7 %     -5.1 %
    Demand: interest-bearing   79,287       82,981       87,374       87,452       88,133       -4.5 %     -10.0 %
    Money market and savings   1,898,834       1,834,797       1,859,865       1,734,658       1,576,006       3.5 %     20.5 %
    Time deposits   2,373,310       2,451,599       2,495,761       2,454,868       2,434,695       -3.2 %     -2.5 %
    Total deposits $ 6,403,221     $ 6,329,340     $ 6,376,060     $ 6,280,574     $ 6,260,072       1.2 %     2.3 %
      As of  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,  
      2024     2024     2024     2023     2023  
    Composition of Deposit Portfolio                            
    Demand: noninterest-bearing   32.0 %     31.0 %     30.3 %     31.9 %     34.5 %
    Demand: interest-bearing   1.2 %     1.3 %     1.4 %     1.4 %     1.4 %
    Money market and savings   29.7 %     29.0 %     29.2 %     27.6 %     25.2 %
    Time deposits   37.1 %     38.7 %     39.1 %     39.1 %     38.9 %
    Total deposits   100.0 %     100.0 %     100.0 %     100.0 %     100.0 %

    Stockholders’ equity at September 30, 2024 was $736.7 million, up $29.6 million from $707.1 million at June 30, 2024. The increase was due to third quarter net income, net of dividends paid, adding $7.3 million to stockholders’ equity for the period. Additionally, there was a $20.7 million decrease in unrealized after-tax losses on securities available for sale and a $2.2 million decrease in unrealized after-tax losses on cash flow hedges, all due to changes in interest rates during the third quarter of 2024. Hanmi also repurchased 75,000 shares of common stock, or $1.4 million, during the quarter at an average share price of $19.10. At September 30, 2024, 1,255,000 shares remain under Hanmi’s share repurchase program. Tangible common stockholders’ equity was $725.7 million, or 9.42% of tangible assets, at September 30, 2024, compared with $696.0 million, or 9.19% of tangible assets at the end of the prior quarter. Please refer to the Non-GAAP Financial Measures section below for more information.

    Hanmi and the Bank exceeded minimum regulatory capital requirements, and the Bank continues to exceed the minimum for the “well capitalized” category. At September 30, 2024, Hanmi’s preliminary common equity tier 1 capital ratio was 11.95% and its total risk-based capital ratio was 15.04%, compared with 12.11% and 15.24%, respectively, at the end of the prior quarter.

      As of     Ratio Change  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
      2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
    Regulatory Capital ratios (1)                                        
    Hanmi Financial                                        
    Total risk-based capital   15.04 %     15.24 %     15.20 %     14.95 %     15.07 %     -0.20       -0.03  
    Tier 1 risk-based capital   12.29 %     12.46 %     12.40 %     12.20 %     12.30 %     -0.17       -0.01  
    Common equity tier 1 capital   11.95 %     12.11 %     12.05 %     11.86 %     11.95 %     -0.16       0.00  
    Tier 1 leverage capital ratio   10.56 %     10.51 %     10.36 %     10.37 %     10.27 %     0.05       0.29  
    Hanmi Bank                                        
    Total risk-based capital   14.28 %     14.51 %     14.50 %     14.27 %     14.42 %     -0.23       -0.14  
    Tier 1 risk-based capital   13.24 %     13.47 %     13.44 %     13.26 %     13.42 %     -0.23       -0.18  
    Common equity tier 1 capital   13.24 %     13.47 %     13.44 %     13.26 %     13.42 %     -0.23       -0.18  
    Tier 1 leverage capital ratio   11.43 %     11.41 %     11.29 %     11.32 %     11.25 %     0.02       0.18  
                                             
    (1)      Preliminary ratios for September 30, 2024  


    Asset Quality

    Loans 30 to 89 days past due and still accruing were 0.24% of loans at the end of the third quarter of 2024, compared with 0.22% at the end of the prior quarter.

    Criticized loans totaled $160.0 million at September 30, 2024, up from $70.9 million at the end of the second quarter of 2024.

    During the third quarter, the Bank moved the previously identified $28.3 million completed construction loan for a memory-care and assisted-living facility from the special mention category to the held-for-sale nonaccrual category. In addition, the Bank recognized a $1.1 million charge-off on this loan. Subsequent to the end of the third quarter, the Bank completed the sale of this nonaccrual loan.

    Also, during the third quarter, the Bank downgraded to special mention two commercial real estate loans in the hospitality industry for $109.7 million and a commercial and industrial loan in the health care industry for $20.1 million.  Pay-offs of $8.1 million decreased criticized loans (and classified loans), while upgrades of $6.1 million also decreased criticized loans (and special mention loans). Offsetting the decrease in classified loans were additions of $2.5 million.

    Nonperforming loans were $15.5 million at September 30, 2024, down from $19.2 million at the end of the prior quarter. The decrease primarily reflects pay-offs of $6.8 million, where the pay-off of a previously identified $3.9 million nonperforming loan resulted in a $1.7 million recovery.  Offsetting the decrease were additions of $3.1 million.

    Nonperforming assets were $16.3 million at the end of the third quarter of 2024, down from $20.0 million at the end of the prior quarter. As a percentage of total assets, nonperforming assets were 0.21% at September 30, 2024, and 0.26% at the end of the prior quarter.

    Gross charge-offs for the third quarter of 2024 were $3.8 million, compared with $2.3 million for the preceding quarter. Charge-offs included $1.1 million on the previously identified $28.3 million completed construction loan. Recoveries of previously charged-off loans were $2.9 million in the third quarter of 2024, and included a $1.7 million recovery on a previously identified $3.9 million commercial loan in the health care industry. As a result, net charge-offs were $0.9 million for the third quarter of 2024, compared with net charge-offs of $1.8 million for the prior quarter.

    The allowance for credit losses was $69.2 million at September 30, 2024, compared with $67.7 million at June 30, 2024. Specific allowances for loans decreased $1.6 million, while the allowance for quantitative and qualitative considerations increased $3.1 million. The ratio of the allowance for credit losses to loans was 1.11% at September 30, 2024 and 1.10% at June 30, 2024.

      As of or for the Three Months Ended (in thousands)     Amount Change  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,     Q3-24     Q3-24  
      2024     2024     2024     2023     2023     vs. Q2-24     vs. Q3-23  
    Asset Quality Data and Ratios                                        
                                             
    Delinquent loans:                                        
    Loans, 30 to 89 days past due and still accruing $ 15,027     $ 13,844     $ 15,839     $ 10,263     $ 9,545     $ 1,183     $ 5,482  
    Delinquent loans to total loans   0.24 %     0.22 %     0.26 %     0.17 %     0.16 %     0.02       0.08  
                                             
    Criticized loans:                                        
    Special mention $ 131,575     $ 36,921     $ 62,317     $ 65,314     $ 76,473     $ 94,654     $ 55,102  
    Classified   28,377       33,945       23,670       31,367       33,134       (5,568 )     (4,757 )
    Total criticized loans $ 159,952     $ 70,866     $ 85,987     $ 96,681     $ 109,607     $ 89,086     $ 50,345  
                                             
    Nonperforming assets:                                        
    Nonaccrual loans $ 15,248     $ 19,245     $ 14,025     $ 15,474     $ 15,783     $ (3,997 )   $ (535 )
    Loans 90 days or more past due and still accruing   242                               242       242  
    Nonperforming loans*   15,490       19,245       14,025       15,474       15,783       (3,755 )     (293 )
    Other real estate owned, net   772       772       117       117       117             655  
    Nonperforming assets** $ 16,262     $ 20,017     $ 14,142     $ 15,591     $ 15,900     $ (3,755 )   $ 362  
                                             
    Nonperforming assets to assets*   0.21 %     0.26 %     0.19 %     0.21 %     0.22 %     -0.05       -0.01  
    Nonperforming loans to total loans   0.25 %     0.31 %     0.23 %     0.25 %     0.26 %     -0.06       -0.01  
                                             
    * Excludes a $27.2 million nonperforming loan held-for-sale.                     
    ** Excludes repossessed personal property of $1.2 million, $1.2 million, $1.3 million, $1.3 million, and $1.3 million as of Q3-24, Q2-24, Q1-24, Q4-23, and Q3-23, respectively  
      As of or for the Three Months Ended (in thousands)  
      Sep 30,     Jun 30,     Mar 31,     Dec 31,     Sep 30,  
      2024     2024     2024     2023     2023  
    Allowance for credit losses related to loans:                            
    Balance at beginning of period $ 67,729     $ 68,270     $ 69,462     $ 67,313     $ 71,024  
    Credit loss expense (recovery) on loans   2,312       1,248       404       (2,880 )     5,167  
    Net loan (charge-offs) recoveries   (878 )     (1,789 )     (1,596 )     5,029       (8,878 )
    Balance at end of period $ 69,163     $ 67,729     $ 68,270     $ 69,462     $ 67,313  
                                 
    Net loan charge-offs (recoveries) to average loans (1)   0.06 %     0.12 %     0.10 %     -0.33 %     0.60 %
    Allowance for credit losses to loans   1.11 %     1.10 %     1.11 %     1.12 %     1.12 %
                                 
    Allowance for credit losses related to off-balance sheet items:                            
    Balance at beginning of period $ 2,010     $ 2,297     $ 2,474     $ 2,463     $ 2,476  
    Credit loss expense (recovery) on off-balance sheet items   (26 )     (287 )     (177 )     11       (13 )
    Balance at end of period $ 1,984     $ 2,010     $ 2,297     $ 2,474     $ 2,463  
                                 
    Unused commitments to extend credit $ 739,975     $ 795,391     $ 792,769     $ 813,960     $ 848,886  
                                 
    (1)      Annualized               


    Corporate Developments

    On July 25, 2024, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2024 third quarter of $0.25 per share. Hanmi paid the dividend on August 21, 2024, to stockholders of record as of the close of business on August 5, 2024.

    Earnings Conference Call
    Hanmi Bank will host its third quarter 2024 earnings conference call today, October 22, 2024, at 2:00 p.m. PT (5:00 p.m. ET) to discuss these results. This call will also be webcast. To access the call, please dial 1-877-407-9039 before 2:00 p.m. PT, using access code Hanmi Bank. To listen to the call online, either live or archived, please visit Hanmi’s Investor Relations website at https://investors.hanmi.com/ where it will also be available for replay approximately one hour following the call.

    About Hanmi Financial Corporation
    Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at http://www.hanmi.com.

    Forward-Looking Statements
    This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

    Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

    • a failure to maintain adequate levels of capital and liquidity to support our operations;
    • general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
    • volatility and deterioration in the credit and equity markets;
    • changes in consumer spending, borrowing and savings habits;
    • availability of capital from private and government sources;
    • demographic changes;
    • competition for loans and deposits and failure to attract or retain loans and deposits;
    • inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
    • our ability to enter new markets successfully and capitalize on growth opportunities;
    • the current or anticipated impact of military conflict, terrorism or other geopolitical events;
    • the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
    • risks of natural disasters;
    • legal proceedings and litigation brought against us;
    • a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
    • the failure to maintain current technologies;
    • risks associated with Small Business Administration loans;
    • failure to attract or retain key employees;
    • our ability to access cost-effective funding;
    • changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
    • fluctuations in real estate values;
    • changes in accounting policies and practices;
    • changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
    • the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
    • strategic transactions we may enter into;
    • the adequacy of and changes in the methodology for computing our allowance for credit losses;
    • our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
    • changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
    • our ability to control expenses; and
    • cyber security and fraud risks against our information technology and those of our third-party providers and vendors.

    In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

    Investor Contacts:
    Romolo (Ron) Santarosa
    Senior Executive Vice President & Chief Financial Officer
    213-427-5636

    Lisa Fortuna
    Investor Relations
    Financial Profiles, Inc.
    lfortuna@finprofiles.com
    310-622-8251

     

    Hanmi Financial Corporation and Subsidiaries
    Consolidated Balance Sheets (Unaudited)
    (Dollars in thousands)

      September 30,     June 30,     Percentage     September 30,     Percentage  
      2024     2024     Change     2023     Change  
    Assets                            
    Cash and due from banks $ 287,767     $ 313,079       -8.1 %   $ 289,006       -0.4 %
    Securities available for sale, at fair value   908,921       877,638       3.6 %     817,242       11.2 %
    Loans held for sale, at the lower of cost or fair value   54,336       10,467       419.1 %     11,767       361.8 %
    Loans receivable, net of allowance for credit losses   6,188,581       6,108,630       1.3 %     5,953,472       3.9 %
    Accrued interest receivable   21,955       23,958       -8.4 %     20,715       6.0 %
    Premises and equipment, net   21,371       21,955       -2.7 %     20,707       3.2 %
    Customers’ liability on acceptances   67       551       -87.8 %     1,386       -95.2 %
    Servicing assets   6,683       6,836       -2.2 %     7,156       -6.6 %
    Goodwill and other intangible assets, net   11,031       11,048       -0.2 %     11,131       -0.9 %
    Federal Home Loan Bank (“FHLB”) stock, at cost   16,385       16,385       0.0 %     16,385       0.0 %
    Bank-owned life insurance   56,851       56,534       0.6 %     56,364       0.9 %
    Prepaid expenses and other assets   138,351       139,266       -0.7 %     144,809       -4.5 %
    Total assets $ 7,712,299     $ 7,586,347       1.7 %   $ 7,350,140       4.9 %
                                 
    Liabilities and Stockholders’ Equity                            
    Liabilities:                            
    Deposits:                            
    Noninterest-bearing $ 2,051,790     $ 1,959,963       4.7 %   $ 2,161,238       -5.1 %
    Interest-bearing   4,351,431       4,369,377       -0.4 %     4,098,834       6.2 %
    Total deposits   6,403,221       6,329,340       1.2 %     6,260,072       2.3 %
    Accrued interest payable   52,613       47,699       10.3 %     50,286       4.6 %
    Bank’s liability on acceptances   67       551       -87.8 %     1,386       -95.2 %
    Borrowings   300,000       292,500       2.6 %     162,500       84.6 %
    Subordinated debentures   130,478       130,318       0.1 %     129,860       0.5 %
    Accrued expenses and other liabilities   89,211       78,880       13.1 %     82,677       7.9 %
    Total liabilities   6,975,590       6,879,288       1.4 %     6,686,781       4.3 %
                                 
    Stockholders’ equity:                            
    Common stock   34       34       0.0 %     34       0.0 %
    Additional paid-in capital   589,567       588,647       0.2 %     586,169       0.6 %
    Accumulated other comprehensive income   (55,140 )     (78,000 )     29.3 %     (99,422 )     44.5 %
    Retained earnings   340,718       333,392       2.2 %     308,007       10.6 %
    Less treasury stock   (138,470 )     (137,014 )     -1.1 %     (131,429 )     -5.4 %
    Total stockholders’ equity   736,709       707,059       4.2 %     663,359       11.1 %
    Total liabilities and stockholders’ equity $ 7,712,299     $ 7,586,347       1.7 %   $ 7,350,140       4.9 %

     


    Hanmi Financial Corporation and Subsidiaries

    Consolidated Statements of Income (Unaudited)
    (Dollars in thousands, except share and per share data)

      Three Months Ended  
      September 30,     June 30,     Percentage     September 30,     Percentage  
      2024     2024     Change     2023     Change  
    Interest and dividend income:                            
    Interest and fees on loans receivable $ 92,182     $ 90,752       1.6 %   $ 85,398       7.9 %
    Interest on securities   5,523       5,238       5.4 %     4,204       31.4 %
    Dividends on FHLB stock   356       357       -0.3 %     317       12.3 %
    Interest on deposits in other banks   2,356       2,313       1.9 %     4,153       -43.3 %
    Total interest and dividend income   100,417       98,660       1.8 %     94,072       6.7 %
    Interest expense:                            
    Interest on deposits   47,153       46,495       1.4 %     36,818       28.1 %
    Interest on borrowings   1,561       1,896       -17.7 %     753       107.3 %
    Interest on subordinated debentures   1,652       1,649       0.2 %     1,646       0.4 %
    Total interest expense   50,366       50,040       0.7 %     39,217       28.4 %
    Net interest income before credit loss expense   50,051       48,620       2.9 %     54,855       -8.8 %
    Credit loss expense   2,286       961       137.9 %     5,154       -55.6 %
    Net interest income after credit loss expense   47,765       47,659       0.2 %     49,701       -3.9 %
    Noninterest income:                            
    Service charges on deposit accounts   2,311       2,429       -4.9 %     2,605       -11.3 %
    Trade finance and other service charges and fees   1,254       1,277       -1.8 %     1,155       8.6 %
    Gain on sale of Small Business Administration (“SBA”) loans   1,544       1,644       -6.1 %     1,172       31.7 %
    Other operating income   3,329       2,707       23.0 %     6,296       -47.1 %
    Total noninterest income   8,438       8,057       4.7 %     11,228       -24.8 %
    Noninterest expense:                            
    Salaries and employee benefits   20,851       20,434       2.0 %     20,361       2.4 %
    Occupancy and equipment   4,499       4,607       -2.3 %     4,825       -6.8 %
    Data processing   3,839       3,686       4.2 %     3,490       10.0 %
    Professional fees   1,492       1,749       -14.7 %     1,568       -4.8 %
    Supplies and communications   538       570       -5.6 %     552       -2.5 %
    Advertising and promotion   631       669       -5.7 %     534       18.2 %
    Other operating expenses   3,230       3,561       -9.3 %     2,915       10.8 %
    Total noninterest expense   35,080       35,276       -0.6 %     34,245       2.4 %
    Income before tax   21,123       20,440       3.3 %     26,684       -20.8 %
    Income tax expense   6,231       5,989       4.0 %     7,888       -21.0 %
    Net income $ 14,892     $ 14,451       3.1 %   $ 18,796       -20.8 %
                                 
    Basic earnings per share: $ 0.49     $ 0.48           $ 0.62        
    Diluted earnings per share: $ 0.49     $ 0.48           $ 0.62        
                                 
    Weighted-average shares outstanding:                            
    Basic   29,968,004       30,055,913             30,251,961        
    Diluted   30,033,679       30,133,646             30,292,872        
    Common shares outstanding   30,196,755       30,272,110             30,410,582        

     


    Hanmi Financial Corporation and Subsidiaries

    Consolidated Statements of Income (Unaudited)
    (Dollars in thousands, except share and per share data)

      Nine Months Ended  
      September 30,     September 30,     Percentage  
      2024     2023     Change  
    Interest and dividend income:                
    Interest and fees on loans receivable $ 274,608     $ 249,888       9.9 %
    Interest on securities   15,717       12,356       27.2 %
    Dividends on FHLB stock   1,075       888       21.1 %
    Interest on deposits in other banks   7,270       9,012       -19.3 %
    Total interest and dividend income   298,670       272,144       9.7 %
    Interest expense:                
    Interest on deposits   139,286       94,431       47.5 %
    Interest on borrowings   5,112       4,755       7.5 %
    Interest on subordinated debentures   4,948       4,828       2.5 %
    Total interest expense   149,346       104,014       43.6 %
    Net interest income before credit loss expense   149,324       168,130       -11.2 %
    Credit loss expense   3,474       7,210       -51.8 %
    Net interest income after credit loss expense   145,850       160,920       -9.4 %
    Noninterest income:                
    Service charges on deposit accounts   7,189       7,756       -7.3 %
    Trade finance and other service charges and fees   3,945       3,586       10.0 %
    Gain on sale of Small Business Administration (“SBA”) loans   4,669       4,253       9.8 %
    Other operating income   8,425       11,904       -29.2 %
    Total noninterest income   24,228       27,499       -11.9 %
    Noninterest expense:                
    Salaries and employee benefits   62,870       61,336       2.5 %
    Occupancy and equipment   13,643       13,737       -0.7 %
    Data processing   11,076       10,208       8.5 %
    Professional fees   5,134       4,278       20.0 %
    Supplies and communications   1,710       1,866       -8.4 %
    Advertising and promotion   2,207       2,114       4.4 %
    Other operating expenses   10,160       7,777       30.6 %
    Total noninterest expense   106,800       101,316       5.4 %
    Income before tax   63,278       87,103       -27.4 %
    Income tax expense   18,772       25,695       -26.9 %
    Net income $ 44,506     $ 61,408       -27.5 %
                     
    Basic earnings per share: $ 1.47     $ 2.01        
    Diluted earnings per share: $ 1.47     $ 2.01        
                     
    Weighted-average shares outstanding:                
    Basic   30,048,748       30,296,991        
    Diluted   30,117,269       30,338,678        
    Common shares outstanding   30,196,755       30,410,582        

     


    Hanmi Financial Corporation and Subsidiaries

    Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
    (Dollars in thousands)

      Three Months Ended  
      September 30, 2024     June 30, 2024     September 30, 2023  
            Interest   Average           Interest   Average           Interest   Average  
      Average     Income /   Yield /     Average     Income /   Yield /     Average     Income /   Yield /  
      Balance     Expense   Rate     Balance     Expense   Rate     Balance     Expense   Rate  
    Assets                                              
    Interest-earning assets:                                              
    Loans receivable (1) $ 6,112,324     $ 92,182     6.00 %   $ 6,089,440     $ 90,752     5.99 %   $ 5,915,423     $ 85,398     5.73 %
    Securities (2)   986,041       5,523     2.27 %     979,671       5,238     2.17 %     955,473       4,204     1.79 %
    FHLB stock   16,385       356     8.65 %     16,385       357     8.77 %     16,385       317     7.67 %
    Interest-bearing deposits in other banks   183,027       2,356     5.12 %     180,177       2,313     5.16 %     317,498       4,153     5.19 %
    Total interest-earning assets   7,297,777       100,417     5.48 %     7,265,673       98,660     5.46 %     7,204,779       94,072     5.19 %
                                                   
    Noninterest-earning assets:                                              
    Cash and due from banks   54,843                 55,442                 59,994            
    Allowance for credit losses   (67,906 )               (67,908 )               (70,173 )          
    Other assets   251,421                 252,410                 240,145            
                                                   
    Total assets $ 7,536,135               $ 7,505,617               $ 7,434,745            
                                                   
    Liabilities and Stockholders’ Equity                                              
    Interest-bearing liabilities:                                              
    Deposits:                                              
    Demand: interest-bearing $ 83,647     $ 31     0.15 %   $ 85,443     $ 32     0.15 %   $ 94,703     $ 32     0.13 %
    Money market and savings   1,885,799       17,863     3.77 %     1,845,870       17,324     3.77 %     1,601,826       12,485     3.09 %
    Time deposits   2,427,737       29,259     4.79 %     2,453,154       29,139     4.78 %     2,438,112       24,301     3.95 %
    Total interest-bearing deposits   4,397,183       47,153     4.27 %     4,384,467       46,495     4.27 %     4,134,641       36,818     3.53 %
    Borrowings   143,479       1,561     4.33 %     169,525       1,896     4.50 %     120,381       753     2.48 %
    Subordinated debentures   130,403       1,652     5.07 %     130,239       1,649     5.07 %     129,780       1,646     5.07 %
    Total interest-bearing liabilities   4,671,065       50,366     4.29 %     4,684,231       50,040     4.30 %     4,384,802       39,217     3.55 %
                                                   
    Noninterest-bearing liabilities and equity:                                              
    Demand deposits: noninterest-bearing   1,908,833                 1,883,765                 2,136,156            
    Other liabilities   171,987                 162,543                 159,127            
    Stockholders’ equity   784,250                 775,078                 754,660            
                                                   
    Total liabilities and stockholders’ equity $ 7,536,135               $ 7,505,617               $ 7,434,745            
                                                   
    Net interest income       $ 50,051               $ 48,620               $ 54,855      
                                                   
    Cost of deposits             2.97 %               2.98 %               2.33 %
    Net interest spread (taxable equivalent basis)             1.19 %               1.16 %               1.64 %
    Net interest margin (taxable equivalent basis)             2.74 %               2.69 %               3.03 %
                                                   
    (1)       Includes average loans held for sale        
    (2)       Income calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.  

     


    Hanmi Financial Corporation and Subsidiaries

    Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
    (Dollars in thousands)

      Nine Months Ended  
      September 30, 2024     September 30, 2023  
            Interest   Average           Interest   Average  
      Average     Income /   Yield /     Average     Income /   Yield /  
      Balance     Expense   Rate     Balance     Expense   Rate  
    Assets                              
    Interest-earning assets:                              
    Loans receivable (1) $ 6,113,214     $ 274,608     6.00 %   $ 5,933,525     $ 249,888     5.63 %
    Securities (2)   978,439       15,717     2.17 %     969,146       12,356     1.73 %
    FHLB stock   16,385       1,076     8.77 %     16,385       888     7.25 %
    Interest-bearing deposits in other banks   188,290       7,269     5.16 %     247,581       9,012     4.87 %
    Total interest-earning assets   7,296,328       298,670     5.47 %     7,166,637       272,144     5.08 %
                                   
    Noninterest-earning assets:                              
    Cash and due from banks   56,217                 62,354            
    Allowance for credit losses   (68,305 )               (71,236 )          
    Other assets   249,517                 237,111            
                                   
    Total assets $ 7,533,757               $ 7,394,866            
                                   
    Liabilities and Stockholders’ Equity                              
    Interest-bearing liabilities:                              
    Deposits:                              
    Demand: interest-bearing $ 85,158     $ 92     0.14 %   $ 100,997     $ 88     0.12 %
    Money market and savings   1,849,053       51,740     3.74 %     1,506,776       29,687     2.63 %
    Time deposits   2,462,779       87,454     4.74 %     2,355,923       64,656     3.67 %
    Total interest-bearing deposits   4,396,990       139,286     4.23 %     3,963,696       94,431     3.19 %
    Borrowings   158,419       5,112     4.31 %     194,530       4,755     3.27 %
    Subordinated debentures   130,244       4,948     5.06 %     129,632       4,828     4.97 %
    Total interest-bearing liabilities   4,685,653       149,346     4.26 %     4,287,858       104,014     3.24 %
                                   
    Noninterest-bearing liabilities and equity:                              
    Demand deposits: noninterest-bearing   1,904,611                 2,223,891            
    Other liabilities   166,372                 140,070            
    Stockholders’ equity   777,121                 743,047            
                                   
    Total liabilities and stockholders’ equity $ 7,533,757               $ 7,394,866            
                                   
    Net interest income       $ 149,324               $ 168,130      
                                   
    Cost of deposits             2.95 %               2.04 %
    Net interest spread (taxable equivalent basis)             1.21 %               1.84 %
    Net interest margin (taxable equivalent basis)             2.74 %               3.14 %
                                   
    (1)       Includes average loans held for sale  
    (2)       Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.  


    Non-GAAP Financial Measures

    Tangible Common Equity to Tangible Assets Ratio

    Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). This non-GAAP measure is used by management in the analysis of Hanmi’s capital strength. Tangible common equity is calculated by subtracting goodwill and other intangible assets from stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from stockholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Hanmi. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

    The following table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:

    Tangible Common Equity to Tangible Assets Ratio (Unaudited)
    (In thousands, except share, per share data and ratios)

      September 30,     June 30,     March 31,     December 31,     September 30,  
    Hanmi Financial Corporation 2024     2024     2024     2023     2023  
    Assets $ 7,712,299     $ 7,586,347     $ 7,512,046     $ 7,570,341     $ 7,350,140  
    Less goodwill and other intangible assets   (11,031 )     (11,048 )     (11,074 )     (11,099 )     (11,131 )
    Tangible assets $ 7,701,268     $ 7,575,299     $ 7,500,972     $ 7,559,242     $ 7,339,009  
                                 
    Stockholders’ equity (1) $ 736,709     $ 707,059     $ 703,100     $ 701,891     $ 663,359  
    Less goodwill and other intangible assets   (11,031 )     (11,048 )     (11,074 )     (11,099 )     (11,131 )
    Tangible stockholders’ equity (1) $ 725,678     $ 696,011     $ 692,026     $ 690,792     $ 652,228  
                                 
    Stockholders’ equity to assets   9.55 %     9.32 %     9.36 %     9.27 %     9.03 %
    Tangible common equity to tangible assets (1)   9.42 %     9.19 %     9.23 %     9.14 %     8.89 %
                                 
    Common shares outstanding   30,196,755       30,272,110       30,276,358       30,368,655       30,410,582  
    Tangible common equity per common share $ 24.03     $ 22.99     $ 22.86     $ 22.75     $ 21.45  
                                 
    (1)      There were no preferred shares outstanding at the periods indicated.  

    The MIL Network

  • MIL-OSI: National Bank Holdings Corporation Announces Third Quarter 2024 Financial Results and Increase to Quarterly Dividend

    Source: GlobeNewswire (MIL-OSI)

    DENVER, Oct. 22, 2024 (GLOBE NEWSWIRE) — National Bank Holdings Corporation (NYSE: NBHC) reported:

                                   
        For the quarter(1)   For the year(1)
        3Q24   2Q24   3Q23   2024   2023
    Net income ($000’s)   $ 33,105     $ 26,135     $ 36,087     $ 90,631     $ 108,927  
    Earnings per share – diluted   $ 0.86     $ 0.68     $ 0.94     $ 2.36     $ 2.85  
    Return on average assets     1.32 %     1.06 %     1.46 %     1.22 %     1.50 %
    Return on average tangible assets(2)     1.43 %     1.17 %     1.58 %     1.33 %     1.61 %
    Return on average equity     10.33 %     8.46 %     12.26 %     9.70 %     12.71 %
    Return on average tangible common equity(2)     14.84 %     12.44 %     18.38 %     14.14 %     18.81 %

                                                          

    (1 )   Ratios are annualized.
    (2 )   See non-GAAP reconciliations below.
           

    In announcing these results, Chief Executive Officer Tim Laney shared, “We delivered quarterly earnings of $0.86 per diluted share and a return on average tangible common equity of 14.84%. On the strength of our balance sheet, capital position and earnings, we are pleased to announce a 3.6% increase in our quarterly dividend to $0.29 per share. During the quarter, our disciplined approach to loan and deposit pricing drove 11 basis points of net interest margin expansion to 3.87%. Our teams delivered solid quarterly growth in our core banking fees, and we continued to leverage our diverse revenue streams across our franchise resulting in meaningful year-to-date fee income growth.”

    Mr. Laney added, “We continue to remain vigilant in monitoring our loan portfolio, delivering the lowest non-performing loan ratio since early 2023. Our teams adhere to prudent, disciplined approaches that limit concentrations in our loan book and our depositor base, and we regularly perform robust stress testing on our loan portfolio. We enter the fourth quarter from a position of strength and stability and expect to finish the year strong. We believe our Common Equity Tier 1 capital ratio of 12.88%, ample liquidity position, and diversified funding sources provide optionality for future growth.”

    Third Quarter 2024 Results
    (All comparisons refer to the second quarter of 2024, except as noted)

    Net income increased $7.0 million or 26.7% to $33.1 million or $0.86 per diluted share, compared to $26.1 million or $0.68 per diluted share. The quarter’s increase was driven by net interest income and fee income growth. Included in the prior quarter was $3.9 million of impairment related to venture capital investments. Fully taxable equivalent pre-provision net revenue increased $7.5 million or 20.6% to $43.7 million. The return on average tangible assets increased 26 basis points to 1.43%, and the return on average tangible common equity increased 240 basis points to 14.84%.

    Net Interest Income
    Fully taxable equivalent net interest income increased $4.2 million to $89.5 million, driven by a $74.7 million increase in average interest earning assets, a 12 basis point increase in average loan yields and one extra day in the quarter. The fully taxable equivalent net interest margin widened 11 basis points to 3.87%, driven by a 13 basis point increase in earning asset yields which was partially offset by a two basis point increase in the cost of funds.

    Loans
    Loans totaled $7.7 billion at September 30, 2024, consistent with the prior quarter. We generated quarterly loan fundings totaling $359.3 million, led by commercial loan fundings of $219.1 million. The average interest rate on the third quarter’s loan originations was 8.5%.

    Asset Quality and Provision for Credit Losses
    The Company recorded $2.0 million of provision expense for credit losses, compared to $2.8 million in the prior quarter. The current quarter’s provision expense was primarily driven by higher reserve requirements from changes in the CECL model’s underlying economic forecast. Annualized net charge-offs decreased four basis points to 0.18% of average total loans and included the resolution of one previously reserved credit during the quarter. Non-performing loans decreased three basis points to 0.31% of total loans at September 30, 2024, and non-performing assets decreased four basis points to 0.32% of total loans and OREO at September 30, 2024. The allowance for credit losses as a percentage of loans totaled 1.23% at September 30, 2024, compared to 1.25% in the prior quarter.

    Deposits
    Average total deposits increased $21.3 million to $8.4 billion during the third quarter 2024. The loan to deposit ratio totaled 90.8% at September 30, 2024. Average transaction deposits (defined as total deposits less time deposits) totaled $7.4 billion, consistent with the prior quarter. The mix of transaction deposits to total deposits was 88% at September 30, 2024, consistent with June 30, 2024.

    Non-Interest Income
    Non-interest income increased $4.4 million to $18.4 million driven by increases in our diversified sources of fee revenue. Service charges increased $0.6 million, swap fee income increased $0.3 million and trust fee income increased $0.1 million. These increases were partially offset by a $0.3 million decrease in mortgage banking income. Included in the prior quarter was $3.9 million of impairment related to venture capital investments.

    Non-Interest Expense
    Non-interest expense totaled $64.2 million during the third quarter, compared to $63.1 million in the prior quarter. Salaries and benefits increased $0.4 million driven by one additional payroll day in the quarter. Professional fees increased $0.4 million and data processing increased $0.3 million driven by our continued investments in technology. These increases were partially offset by a decrease in occupancy and equipment of $0.4 million. The fully taxable equivalent efficiency ratio, excluding other intangible assets amortization, improved 387 basis points to 57.7% for the third quarter.

    Income tax expense increased $1.2 million to $6.8 million, compared to $5.6 million in the prior quarter, due to the third quarter’s higher pre-tax income. The effective tax rate was 17.0%, compared to 17.7% for the second quarter.

    Capital
    Capital ratios continue to be strong and in excess of federal bank regulatory agency “well capitalized” thresholds. The tier 1 leverage ratio totaled 10.44%, and the common equity tier 1 capital ratio totaled 12.88% at September 30, 2024. Shareholders’ equity totaled $1.3 billion at September 30, 2024, increasing $44.4 million. The third quarter’s net income drove $22.2 million of growth in retained earnings, and changes in the interest rate environment led to a $17.9 million improvement in accumulated other comprehensive loss.

    Common book value per share increased $1.09 to $34.01 at September 30, 2024. Tangible common book value per share increased $1.17 to $24.91 as this quarter’s earnings and a decrease in accumulated other comprehensive loss outpaced the quarterly dividend.

    Dividend Announcement
    The quarterly cash dividend will increase 3.6% from $0.28 per share to $0.29 per share. The dividend will be payable on December 13, 2024 to shareholders of record at the close of business on November 29, 2024. This is the eighth consecutive semiannual increase to the quarterly dividend since early 2021.

    Year-Over-Year Review
    (All comparisons refer to the first nine months of 2023, except as noted)

    Net income totaled $90.6 million, or $2.36 per diluted share, compared to net income of $108.9 million, or $2.85 per diluted share, for the first nine months of 2023. The decrease over the same period prior year was largely driven by lower net interest income, due to an increase in cost of funds outpacing the increase in interest income. Partially offsetting this decrease was a 4.7% increase in non-interest income driven by our diversified sources of fee revenue. Fully taxable equivalent pre-provision net revenue totaled $120.5 million, compared to $144.9 million. The return on average tangible assets totaled 1.33%, compared to 1.61%, and the return on average tangible common equity was 14.14%, compared to 18.81%.

    Fully taxable equivalent net interest income totaled $260.5 million, compared to $276.9 million. Average earning assets increased $165.0 million, including average loan growth of $296.4 million, which was partially offset by a decrease in average investment securities of $70.2 million. The fully taxable equivalent net interest margin narrowed 32 basis points to 3.80%, as the increase in earning asset yields was more than offset by an increase in the cost of funds. Average interest bearing liabilities increased $555.3 million due to higher deposit balances, and the cost of funds totaled 2.31%, compared to 1.40% in the same period prior year.

    Loans outstanding totaled $7.7 billion, increasing $236.1 million or 3.2%. New loan fundings over the trailing twelve months totaled $1.5 billion, led by commercial loan fundings of $1.0 billion.  

    The Company recorded $4.8 million of provision expense for credit losses for the first nine months of 2024, compared to provision expense of $3.7 million in the same period prior year. Annualized net charge-offs totaled 0.13% of average total loans during the first nine months of 2024, compared to 0.02% of average total loans during the first nine months of 2023. Non-performing loans decreased 13 basis points to 0.31% of total loans at September 30, 2024, and non-performing assets decreased 17 basis points to 0.32% of total loans and OREO at September 30, 2024. The allowance for credit losses as a percentage of loans totaled 1.23% at September 30, 2024, compared to 1.25% at September 30, 2023.

    Average total deposits increased $418.6 million or 5.3% to $8.3 billion, and average transaction deposits increased $369.2 million or 5.3%. The mix of transaction deposits to total deposits was 88%, consistent with September 30, 2023.

    Non-interest income totaled $50.1 million, an increase of $2.3 million or 4.7%, driven by increases in our diversified sources of fee revenue. Other non-interest income increased $5.2 million, or 63.6%, and included increases in SBA loan income, trust income, Cambr income and swap fee income. Mortgage banking income decreased $2.7 million as the sustained higher-interest rate environment has lowered mortgage volume.

    Non-interest expense totaled $190.1 million, an increase of $10.2 million or 5.7%, largely due to ongoing investments in technology. Salaries and benefits increased $7.6 million, occupancy and equipment increased $2.4 million and data processing increased $2.3 million. Other intangible assets amortization increased $0.6 million due to our Cambr acquisition in April of 2023. These increases were partially offset by a decrease of $2.5 million in professional fees.

    Income tax expense totaled $19.9 million, a decrease of $7.9 million from the same period prior year, driven by lower pre-tax income. The effective tax rate was 18.0% for the first nine months of 2024, compared to 20.3%.

    Conference Call
    Management will host a conference call to review the results at 11:00 a.m. Eastern Time on Wednesday, October 23, 2024. Interested parties may listen to this call by dialing (888) 204-4368 using the participant passcode of 3279876 and asking for the NBHC Q3 2024 Earnings Call. The earnings release and a link to the replay of the call will be available on the Company’s website at http://www.nationalbankholdings.com by visiting the investor relations area.

    About National Bank Holdings Corporation
    National Bank Holdings Corporation is a bank holding company created to build a leading community bank franchise, delivering high quality client service and committed to stakeholder results. Through its bank subsidiaries, NBH Bank and Bank of Jackson Hole Trust, National Bank Holdings Corporation operates a network of over 90 banking centers, serving individual consumers, small, medium and large businesses, and government and non-profit entities. Its banking centers are located in its core footprint of Colorado, the greater Kansas City region, Utah, Wyoming, Texas, New Mexico and Idaho. Its comprehensive residential mortgage banking group primarily serves the bank’s core footprint. Its trust and wealth management business is operated in its core footprint under the Bank of Jackson Hole Trust charter. NBH Bank operates under a single state charter through the following brand names as divisions of NBH Bank: in Colorado, Community Banks of Colorado and Community Banks Mortgage; in Kansas and Missouri, Bank Midwest and Bank Midwest Mortgage; in Texas, Utah, New Mexico and Idaho, Hillcrest Bank and Hillcrest Bank Mortgage; and in Wyoming, Bank of Jackson Hole and Bank of Jackson Hole Mortgage. Additional information about National Bank Holdings Corporation can be found at http://www.nationalbankholdings.com

    For more information visit: cobnks.com, bankmw.com, hillcrestbank.com, bankofjacksonhole.com, or nbhbank.com, or connect with any of our brands on LinkedIn.

    About Non-GAAP Financial Measures
    Certain of the financial measures and ratios we present, including “tangible assets,” “return on average tangible assets,” “tangible common equity,” “return on average tangible common equity,” “tangible common book value per share,” “tangible common book value, excluding accumulated other comprehensive loss, net of tax,” “tangible common book value per share, excluding accumulated other comprehensive loss, net of tax,” “tangible common equity to tangible assets,” “non-interest expense excluding other intangible assets amortization,” “efficiency ratio excluding other intangible assets amortization,” “net income excluding the impact of other intangible assets amortization expense, after tax,” “pre-provision net revenue,” and “fully taxable equivalent” metrics, are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). We refer to these financial measures and ratios as “non-GAAP financial measures.” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.

    These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance. A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.

    Forward-Looking Statements
    This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain words such as “anticipate,” “believe,” “can,” “would,” “should,” “could,” “may,” “predict,” “seek,” “potential,” “will,” “estimate,” “target,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” or similar expressions that relate to the Company’s strategy, plans or intentions. Forward-looking statements involve certain important risks, uncertainties and other factors, any of which could cause actual results to differ materially from those in such statements. Such factors include, without limitation, the “Risk Factors” referenced in our most recent Form 10-K filed with the Securities and Exchange Commission (SEC), other risks and uncertainties listed from time to time in our reports and documents filed with the SEC, and the following factors: the impact of potential regulatory changes to capital requirements, treatment of investment securities and FDIC deposit insurance levels and costs; our ability to execute our business strategy, including our digital strategy, as well as changes in our business strategy or development plans; business and economic conditions; effects of any potential government shutdowns; economic, market, operational, liquidity, credit and interest rate risks associated with the Company’s business, including increased competition for deposits due to prevailing market interest rates and banking sector volatility; effects of any changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; changes imposed by regulatory agencies to increase capital standards; effects of inflation, as well as interest rate, securities market and monetary supply fluctuations; changes in the economy or supply-demand imbalances affecting local real estate values; changes in consumer spending, borrowings and savings habits; changes in the fair value of our investment securities due to market conditions outside of our control; financial or reputational impacts associated with the increased prevalence of fraud or other financial crimes; with respect to our mortgage business, the inability to negotiate fees with investors for the purchase of our loans or our obligation to indemnify purchasers or repurchase related loans if the loans fail to meet certain criteria, or higher rate of delinquencies and defaults as a result of the geographic concentration of our servicing portfolio; the Company’s ability to identify potential candidates for, obtain regulatory approval for, and consummate, integrate and realize operating efficiencies from, acquisitions, consolidations and other expansion opportunities; our ability to integrate acquisitions or consolidations and to achieve synergies, operating efficiencies and/or other expected benefits within expected timeframes, or at all, or within expected cost projections, and to preserve the goodwill of acquired financial institutions; the Company’s ability to realize anticipated benefits from enhancements or updates to its core operating systems from time to time without significant change in client service or risk to the Company’s control environment; the Company’s dependence on information technology and telecommunications systems of third-party service providers and the risk of systems failures, interruptions or breaches of security, including those that could result in disclosure or misuse of confidential or proprietary client or other information; the Company’s ability to achieve organic loan and deposit growth and the competition for, and composition of, such growth; changes in sources and uses of funds; increased competition in the financial services industry; regulatory and financial impacts associated with the Company growing to over $10 billion in consolidated assets; increases in claims and litigation related to our fiduciary responsibilities in connection with our trust and wealth management business; the effect of changes in accounting policies and practices as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board (“FASB”) and other accounting standard setters; the share price of the Company’s stock; the Company’s ability to realize deferred tax assets or the need for a valuation allowance, or the effects of changes in tax laws on our deferred tax assets; the effects of tax legislation, including the potential of future increases to prevailing tax rules, or challenges to our positions; continued consolidation in the financial services industry; ability to maintain or increase market share and control expenses; costs and effects of changes in laws and regulations and of other legal and regulatory developments, including, but not limited to, changes in regulation that affect the fees that we charge, the resolution of legal proceedings or regulatory or other government inquiries, and the results of regulatory examinations, reviews or other inquiries, and changes in regulations that apply to us as a Colorado state-chartered bank and a Wyoming state-chartered bank; technological changes, including with respect to the advancement of artificial intelligence; the timely development and acceptance of new products and services, including in the digital technology space our digital solution 2UniFi; changes in our management personnel and the Company’s continued ability to attract, hire and maintain qualified personnel; ability to implement and/or improve operational management and other internal risk controls and processes and reporting system and procedures; regulatory limitations on dividends from our bank subsidiaries; changes in estimates of future credit reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; financial, reputational, or strategic risks associated with our investments in financial technology companies and initiatives; widespread natural and other disasters, pandemics, dislocations, political instability, acts of war or terrorist activities, cyberattacks or international hostilities through impacts on the economy and financial markets generally or on us or our counterparties specifically; a cybersecurity incident, data breach or a failure of a key information technology system; impact of reputational risk; other risks and uncertainties listed from time to time in the Company’s reports and documents filed with the Securities and Exchange Commission; and success at managing the risks involved in the foregoing items. The Company can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements. The forward-looking statements are made as of the date of this press release, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.

    Contacts:
    Analysts/Institutional Investors:
    Emily Gooden, Chief Accounting Officer and Investor Relations Director, (720) 554-6640, ir@nationalbankholdings.com
    Nicole Van Denabeele, Chief Financial Officer, (720) 529-3370, ir@nationalbankholdings.com

    Media:
    Jody Soper, Chief Marketing Officer, (303) 784-5925, Jody.Soper@nbhbank.com 

    NATIONAL BANK HOLDINGS CORPORATION
    FINANCIAL SUMMARY
    Consolidated Statements of Operations (Unaudited)
    (Dollars in thousands, except share and per share data)

                                 
      For the three months ended   For the nine months ended
      September 30,       June 30,       September 30,       September 30,       September 30, 
      2024   2024   2023   2024   2023
    Total interest and dividend income $ 138,003   $ 132,447   $ 126,110   $ 402,182   $ 360,712
    Total interest expense   50,350     48,873     38,333     146,925     88,262
    Net interest income   87,653     83,574     87,777     255,257     272,450
    Taxable equivalent adjustment   1,816     1,711     1,575     5,220     4,432
    Net interest income FTE(1)   89,469     85,285     89,352     260,477     276,882
    Provision expense for credit losses   2,000     2,776     1,125     4,776     3,725
    Net interest income after provision for credit losses FTE(1)   87,469     82,509     88,227     255,701     273,157
    Non-interest income:                            
    Service charges   4,912     4,295     4,849     13,598     13,394
    Bank card fees   4,832     4,882     4,993     14,292     14,721
    Mortgage banking income   2,981     3,296     4,688     8,932     11,614
    Other non-interest income   5,664     1,556     4,835     13,290     8,124
    Total non-interest income   18,389     14,029     19,365     50,112     47,853
    Non-interest expense:                            
    Salaries and benefits   37,331     36,933     35,027     110,784     103,231
    Occupancy and equipment   9,697     10,120     9,167     29,758     27,366
    Professional fees   2,111     1,706     2,215     5,463     7,951
    Data processing   4,398     4,117     3,546     12,581     10,257
    Other non-interest expense   8,648     8,222     8,640     25,523     25,693
    Other intangible assets amortization   1,977     1,977     2,008     5,962     5,378
    Total non-interest expense   64,162     63,075     60,603     190,071     179,876
                                 
    Income before income taxes FTE(1)   41,696     33,463     46,989     115,742     141,134
    Taxable equivalent adjustment   1,816     1,711     1,575     5,220     4,432
    Income before income taxes   39,880     31,752     45,414     110,522     136,702
    Income tax expense   6,775     5,617     9,327     19,891     27,775
    Net income $ 33,105   $ 26,135   $ 36,087   $ 90,631   $ 108,927
    Earnings per share – basic $ 0.86   $ 0.68   $ 0.95   $ 2.37   $ 2.87
    Earnings per share – diluted   0.86     0.68     0.94     2.36     2.85

                                                          

    (1 )      Net interest income is presented on a GAAP basis and fully taxable equivalent (FTE) basis, as the Company believes this non-GAAP measure is the preferred industry measurement for this item. The FTE adjustment is for the tax benefit on certain tax exempt loans using the federal tax rate of 21% for each period presented.
           

    NATIONAL BANK HOLDINGS CORPORATION
    Consolidated Statements of Financial Condition (Unaudited)
    (Dollars in thousands, except share and per share data)

                           
      September 30, 2024   June 30, 2024      December 31, 2023   September 30, 2023
    ASSETS                      
    Cash and cash equivalents $ 180,796     $ 144,993     $ 190,826     $ 291,291  
    Investment securities available-for-sale   708,987       691,076       628,829       620,445  
    Investment securities held-to-maturity   538,157       554,686       585,052       600,501  
    Non-marketable securities   72,353       72,987       90,477       87,817  
    Loans   7,714,495       7,722,153       7,698,758       7,478,438  
    Allowance for credit losses   (95,047 )     (96,457 )     (97,947 )     (93,446 )
    Loans, net   7,619,448       7,625,696       7,600,811       7,384,992  
    Loans held for sale   16,765       18,787       18,854       19,048  
    Other real estate owned   1,432       1,526       4,088       3,416  
    Premises and equipment, net   191,889       177,456       162,733       153,553  
    Goodwill   306,043       306,043       306,043       306,043  
    Intangible assets, net   60,390       62,356       66,025       68,283  
    Other assets   297,023       315,245       297,326       330,894  
    Total assets $ 9,993,283     $ 9,970,851     $ 9,951,064     $ 9,866,283  
    LIABILITIES AND SHAREHOLDERS’ EQUITY                      
    Liabilities:                      
    Non-interest bearing demand deposits $ 2,268,801     $ 2,229,432     $ 2,361,367     $ 2,483,174  
    Interest bearing demand deposits   1,407,667       1,420,942       1,480,042       1,358,445  
    Savings and money market   3,768,211       3,703,810       3,367,012       3,314,895  
    Total transaction deposits   7,444,679       7,354,184       7,208,421       7,156,514  
    Time deposits   1,052,449       1,022,741       981,970       992,494  
    Total deposits   8,497,128       8,376,925       8,190,391       8,149,008  
    Securities sold under agreements to repurchase   19,517       19,465       19,627       20,273  
    Long-term debt   54,433       54,356       54,200       54,123  
    Federal Home Loan Bank advances         35,000       340,000       316,770  
    Other liabilities   130,208       237,461       134,039       162,524  
    Total liabilities   8,701,286       8,723,207       8,738,257       8,702,698  
    Shareholders’ equity:                      
    Common stock   515       515       515       515  
    Additional paid in capital   1,164,395       1,161,804       1,162,269       1,160,706  
    Retained earnings   491,849       469,630       433,126       410,243  
    Treasury stock   (302,277 )     (303,880 )     (306,702 )     (307,026 )
    Accumulated other comprehensive loss, net of tax   (62,485 )     (80,425 )     (76,401 )     (100,853 )
    Total shareholders’ equity   1,291,997       1,247,644       1,212,807       1,163,585  
    Total liabilities and shareholders’ equity $ 9,993,283     $ 9,970,851     $ 9,951,064     $ 9,866,283  
    SHARE DATA                      
    Average basic shares outstanding   38,277,042       38,210,869       38,013,791       37,990,659  
    Average diluted shares outstanding   38,495,091       38,372,777       38,162,538       38,134,338  
    Ending shares outstanding   37,988,364       37,899,453       37,784,851       37,739,776  
    Common book value per share $ 34.01     $ 32.92     $ 32.10     $ 30.83  
    Tangible common book value per share(1) (non-GAAP)   24.91       23.74       22.77       21.43  
    Tangible common book value per share, excluding accumulated other comprehensive loss(1) (non-GAAP)   26.56       25.86       24.79       24.10  
    CAPITAL RATIOS                      
    Average equity to average assets   12.80 %     12.57 %     11.97 %     11.93 %
    Tangible common equity to tangible assets(1)   9.81 %     9.35 %     8.96 %     8.50 %
    Tier 1 leverage ratio   10.44 %     10.20 %     9.74 %     9.56 %
    Common equity tier 1 risk-based capital ratio   12.88 %     12.41 %     11.89 %     11.61 %
    Tier 1 risk-based capital ratio   12.88 %     12.41 %     11.89 %     11.61 %
    Total risk-based capital ratio   14.79 %     14.32 %     13.80 %     13.49 %

                                                          

    (1 )      Represents a non-GAAP financial measure. See non-GAAP reconciliations below.
           

    NATIONAL BANK HOLDINGS CORPORATION
    Loan Portfolio
    (Dollars in thousands)

    Period End Loan Balances by Type

                             
              September 30, 2024       September 30, 2024
              vs. June 30, 2024       vs. September 30, 2023
      September 30, 2024   June 30, 2024   % Change   September 30, 2023   % Change
    Originated:                        
    Commercial:                        
    Commercial and industrial $ 1,894,830   $ 1,906,095   (0.6 )%   $ 1,784,188   6.2 %
    Municipal and non-profit   1,096,843     1,063,706   3.1 %     1,012,967   8.3 %
    Owner-occupied commercial real estate   949,330     921,122   3.1 %     827,679   14.7 %
    Food and agribusiness   257,743     248,401   3.8 %     258,609   (0.3 )%
    Total commercial   4,198,746     4,139,324   1.4 %     3,883,443   8.1 %
    Commercial real estate non-owner occupied   1,113,796     1,116,424   (0.2 )%     1,026,133   8.5 %
    Residential real estate   933,644     923,313   1.1 %     897,804   4.0 %
    Consumer   13,600     14,385   (5.5 )%     16,700   (18.6 )%
    Total originated   6,259,786     6,193,446   1.1 %     5,824,080   7.5 %
                             
    Acquired:                        
    Commercial:                        
    Commercial and industrial   116,683     124,104   (6.0 )%     156,012   (25.2 )%
    Municipal and non-profit   282     288   (2.1 )%     305   (7.5 )%
    Owner-occupied commercial real estate   221,928     232,890   (4.7 )%     247,701   (10.4 )%
    Food and agribusiness   43,733     48,061   (9.0 )%     61,551   (28.9 )%
    Total commercial   382,626     405,343   (5.6 )%     465,569   (17.8 )%
    Commercial real estate non-owner occupied   720,384     752,040   (4.2 )%     787,926   (8.6 )%
    Residential real estate   349,916     369,003   (5.2 )%     398,187   (12.1 )%
    Consumer   1,783     2,321   (23.2 )%     2,676   (33.4 )%
    Total acquired   1,454,709     1,528,707   (4.8 )%     1,654,358   (12.1 )%
    Total loans $ 7,714,495   $ 7,722,153   (0.1 )%   $ 7,478,438   3.2 %
                                 

    Loan Fundings(1)

                                 
      Third quarter   Second quarter   First quarter   Fourth quarter   Third quarter
      2024   2024   2024   2023   2023
    Commercial:                            
    Commercial and industrial $ 93,711   $ 241,910   $ 53,978     $ 135,954   $ 89,297
    Municipal and non-profit   35,677     28,785     14,564       79,650     18,657
    Owner occupied commercial real estate   70,517     102,615     35,128       75,631     67,322
    Food and agribusiness   19,205     11,040     (7,204 )     10,646     16,191
    Total commercial   219,110     384,350     96,466       301,881     191,467
    Commercial real estate non-owner occupied   91,809     83,184     73,789       107,738     88,434
    Residential real estate   47,322     36,124     29,468       48,925     42,514
    Consumer   1,010     1,547     234       1,849     1,689
    Total $ 359,251   $ 505,205   $ 199,957     $ 460,393   $ 324,104

                                                          

    (1 )      Loan fundings are defined as closed end funded loans and net fundings under revolving lines of credit. Net fundings (paydowns) under revolving lines of credit were $16,302, $19,281, ($59,523), $16,954 and ($12,877) for the periods noted in the table above, respectively.
           

    NATIONAL BANK HOLDINGS CORPORATION
    Summary of Net Interest Margin
    (Dollars in thousands)

                                                           
        For the three months ended   For the three months ended   For the three months ended
        September 30, 2024   June 30, 2024   September 30, 2023
        Average               Average      Average               Average      Average               Average
        balance   Interest   rate   balance   Interest   rate   balance   Interest   rate
    Interest earning assets:                                                      
    Originated loans FTE(1)(2)   $ 6,251,827     $ 108,403     6.90 %   $ 6,074,199     $ 101,794     6.74 %   $ 5,803,157     $ 92,813     6.35 %
    Acquired loans     1,487,002       22,660     6.06 %     1,541,576       23,464     6.12 %     1,671,595       26,115     6.20 %
    Loans held for sale     18,078       319     7.02 %     16,862       318     7.59 %     22,154       383     6.86 %
    Investment securities available-for-sale     790,268       5,132     2.60 %     802,830       5,101     2.54 %     761,892       3,783     1.99 %
    Investment securities held-to-maturity     548,120       2,344     1.71 %     564,818       2,419     1.71 %     611,712       2,685     1.76 %
    Other securities     26,213       405     6.18 %     25,093       377     6.01 %     39,115       701     7.17 %
    Interest earning deposits     70,946       556     3.12 %     92,388       685     2.98 %     130,239       1,205     3.67 %
    Total interest earning assets FTE(2)   $ 9,192,454     $ 139,819     6.05 %   $ 9,117,766     $ 134,158     5.92 %   $ 9,039,864     $ 127,685     5.60 %
    Cash and due from banks   $ 86,887                 $ 100,165                 $ 104,308              
    Other assets     777,758                   771,475                   737,568              
    Allowance for credit losses     (96,369 )                 (97,741 )                 (92,831 )            
    Total assets   $ 9,960,730                 $ 9,891,665                 $ 9,788,909              
    Interest bearing liabilities:                                                      
    Interest bearing demand, savings and money market deposits   $ 5,134,650     $ 40,146     3.11 %   $ 5,109,924     $ 39,681     3.12 %   $ 4,535,183     $ 27,211     2.38 %
    Time deposits     1,039,563       9,220     3.53 %     1,015,371       8,536     3.38 %     992,755       6,212     2.48 %
    Securities sold under agreements to repurchase     17,146       5     0.12 %     17,449       5     0.12 %     19,288       6     0.12 %
    Long-term debt     54,383       519     3.80 %     54,307       518     3.84 %     54,074       519     3.81 %
    Federal Home Loan Bank advances     32,641       460     5.61 %     9,505       133     5.63 %     316,723       4,385     5.49 %
    Total interest bearing liabilities   $ 6,278,383     $ 50,350     3.19 %   $ 6,206,556     $ 48,873     3.17 %   $ 5,918,023     $ 38,333     2.57 %
    Demand deposits   $ 2,226,807                 $ 2,254,454                 $ 2,553,619              
    Other liabilities     180,667                   187,499                   149,068              
    Total liabilities     8,685,857                   8,648,509                   8,620,710              
    Shareholders’ equity     1,274,873                   1,243,156                   1,168,199              
    Total liabilities and shareholders’ equity   $ 9,960,730                 $ 9,891,665                 $ 9,788,909              
    Net interest income FTE(2)         $ 89,469               $ 85,285               $ 89,352      
    Interest rate spread FTE(2)                 2.86 %                 2.75 %                 3.03 %
    Net interest earning assets   $ 2,914,071                 $ 2,911,210                 $ 3,121,841              
    Net interest margin FTE(2)                 3.87 %                 3.76 %                 3.92 %
    Average transaction deposits   $ 7,361,457                 $ 7,364,378                 $ 7,088,802              
    Average total deposits     8,401,020                   8,379,749                   8,081,557              
    Ratio of average interest earning assets to average interest bearing liabilities     146.41 %                 146.91 %                 152.75 %            

                                                          

    (1 )      Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan.
    (2 )      Presented on a fully taxable equivalent basis using the statutory tax rate of 21%. The tax equivalent adjustments included above are $1,816, $1,711 and $1,575 for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
           

    NATIONAL BANK HOLDINGS CORPORATION
    Summary of Net Interest Margin
    (Dollars in thousands)

                                   
      For the nine months ended September 30, 2024   For the nine months ended September 30, 2023
      Average              Average   Average              Average
      balance   Interest   rate   balance   Interest   rate
    Interest earning assets:                              
    Originated loans FTE(1)(2) $ 6,124,757     $ 311,112   6.79 %   $ 5,656,309     $ 258,528   6.11 %
    Acquired loans   1,546,482       70,413   6.08 %     1,718,523       79,526   6.19 %
    Loans held for sale   15,661       862   7.35 %     23,494       1,189   6.77 %
    Investment securities available-for-sale   781,454       14,336   2.45 %     786,087       11,655   1.98 %
    Investment securities held-to-maturity   563,975       7,277   1.72 %     629,507       8,364   1.77 %
    Other securities   28,771       1,398   6.48 %     46,480       2,513   7.21 %
    Interest earning deposits   84,920       2,004   3.15 %     120,633       3,369   3.73 %
    Total interest earning assets FTE(2) $ 9,146,020     $ 407,402   5.95 %   $ 8,981,033     $ 365,144   5.44 %
    Cash and due from banks $ 96,510               $ 110,902            
    Other assets   768,521                 724,305            
    Allowance for credit losses   (97,327 )               (91,110 )          
    Total assets $ 9,913,724               $ 9,725,130            
    Interest bearing liabilities:                              
    Interest bearing demand, savings and money market deposits $ 5,064,386     $ 116,240   3.07 %   $ 4,197,603     $ 55,070   1.75 %
    Time deposits   1,015,081       25,340   3.33 %     965,750       14,545   2.01 %
    Securities sold under agreements to repurchase   17,839       16   0.12 %     19,863       17   0.11 %
    Long-term debt   54,307       1,555   3.82 %     53,997       1,555   3.85 %
    Federal Home Loan Bank advances   89,918       3,774   5.61 %     449,060       17,075   5.08 %
    Total interest bearing liabilities $ 6,241,531     $ 146,925   3.14 %   $ 5,686,273     $ 88,262   2.08 %
    Demand deposits $ 2,253,986               $ 2,751,537            
    Other liabilities   170,005                 141,110            
    Total liabilities   8,665,522                 8,578,920            
    Shareholders’ equity   1,248,202                 1,146,210            
    Total liabilities and shareholders’ equity $ 9,913,724               $ 9,725,130            
    Net interest income FTE(2)       $ 260,477             $ 276,882    
    Interest rate spread FTE(2)             2.81 %               3.36 %
    Net interest earning assets $ 2,904,489               $ 3,294,760            
    Net interest margin FTE(2)             3.80 %               4.12 %
    Average transaction deposits $ 7,318,372               $ 6,949,140            
    Average total deposits   8,333,453                 7,914,890            
    Ratio of average interest earning assets to average interest bearing liabilities   146.53 %               157.94 %          

                                                          

    (1 )      Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan.
    (2 )      Presented on a fully taxable equivalent basis using the statutory tax rate of 21%. The tax equivalent adjustments included above are $5,220 and $4,432 for the nine months ended September 30, 2024 and September 30, 2023, respectively.
           

    NATIONAL BANK HOLDINGS CORPORATION
    Allowance for Credit Losses and Asset Quality
    (Dollars in thousands)

    Allowance for Credit Losses Analysis

                     
      As of and for the three months ended
      September 30, 2024   June 30, 2024   September 30, 2023
    Beginning allowance for credit losses $ 96,457     $ 97,607     $ 92,581  
    Charge-offs   (3,505 )     (4,605 )     (540 )
    Recoveries   95       499       280  
    Provision expense for credit losses   2,000       2,956       1,125  
    Ending allowance for credit losses (“ACL”) $ 95,047     $ 96,457     $ 93,446  
    Ratio of annualized net charge-offs to average total loans during the period   0.18 %     0.22 %     0.01 %
    Ratio of ACL to total loans outstanding at period end   1.23 %     1.25 %     1.25 %
    Ratio of ACL to total non-performing loans at period end   403.68 %     370.18 %     281.36 %
    Total loans $ 7,714,495     $ 7,722,153     $ 7,478,438  
    Average total loans during the period   7,714,765       7,582,506       7,443,869  
    Total non-performing loans   23,545       26,057       33,212  
                           

    Past Due and Non-accrual Loans

                     
      September 30, 2024   June 30, 2024   September 30, 2023
    Loans 30-89 days past due and still accruing interest $ 31,253     $ 27,159     $ 8,144  
    Loans 90 days past due and still accruing interest   9,509       3,498       154  
    Non-accrual loans   23,545       26,057       33,212  
    Total past due and non-accrual loans $ 64,307     $ 56,714     $ 41,510  
    Total 90 days past due and still accruing interest and non-accrual loans to total loans   0.43 %     0.38 %     0.45 %
                           

    Asset Quality Data

                     
      September 30, 2024   June 30, 2024   September 30, 2023
    Non-performing loans $ 23,545     $ 26,057     $ 33,212  
    OREO   1,432       1,526       3,416  
    Total non-performing assets $ 24,977     $ 27,583     $ 36,628  
    Total non-performing loans to total loans   0.31 %     0.34 %     0.44 %
    Total non-performing assets to total loans and OREO   0.32 %     0.36 %     0.49 %
                           

    NATIONAL BANK HOLDINGS CORPORATION
    Key Metrics(1)

                                 
      As of and for the three months ended   As of and for the nine months ended
      September 30,    June 30,    September 30,    September 30,    September 30, 
      2024   2024   2023   2024   2023
    Return on average assets   1.32 %     1.06 %     1.46 %     1.22 %     1.50 %
    Return on average tangible assets(2)   1.43 %     1.17 %     1.58 %     1.33 %     1.61 %
    Return on average equity   10.33 %     8.46 %     12.26 %     9.70 %     12.71 %
    Return on average tangible common equity(2)   14.84 %     12.44 %     18.38 %     14.14 %     18.81 %
    Loan to deposit ratio (end of period)   90.79 %     92.18 %     91.77 %     90.79 %     91.77 %
    Non-interest bearing deposits to total deposits (end of period)   26.70 %     26.61 %     30.47 %     26.70 %     30.47 %
    Net interest margin(3)   3.79 %     3.69 %     3.85 %     3.73 %     4.06 %
    Net interest margin FTE(2)(3)   3.87 %     3.76 %     3.92 %     3.80 %     4.12 %
    Interest rate spread FTE(4)   2.86 %     2.75 %     3.03 %     2.81 %     3.36 %
    Yield on earning assets(5)   5.97 %     5.84 %     5.53 %     5.87 %     5.37 %
    Yield on earning assets FTE(2)(5)   6.05 %     5.92 %     5.60 %     5.95 %     5.44 %
    Cost of interest bearing liabilities   3.19 %     3.17 %     2.57 %     3.14 %     2.08 %
    Cost of deposits   2.34 %     2.31 %     1.64 %     2.27 %     1.18 %
    Non-interest income to total revenue FTE(9)   17.05 %     14.13 %     17.81 %     16.13 %     14.74 %
    Non-interest expense to average assets   2.56 %     2.56 %     2.46 %     2.56 %     2.47 %
    Efficiency ratio   60.51 %     64.62 %     56.56 %     62.24 %     56.16 %
    Efficiency ratio excluding other intangible assets amortization FTE(2)   57.65 %     61.52 %     53.90 %     59.28 %     53.74 %
    Pre-provision net revenue $ 41,880     $ 34,528     $ 46,539     $ 115,298     $ 140,427  
    Pre-provision net revenue FTE(2)   43,696       36,239       48,114       120,518       144,859  
                                 
    Total Loans Asset Quality Data(6)(7)(8)                            
    Non-performing loans to total loans   0.31 %     0.34 %     0.44 %     0.31 %     0.44 %
    Non-performing assets to total loans and OREO   0.32 %     0.36 %     0.49 %     0.32 %     0.49 %
    Allowance for credit losses to total loans   1.23 %     1.25 %     1.25 %     1.23 %     1.33 %
    Allowance for credit losses to non-performing loans   403.68 %     370.18 %     281.36 %     403.68 %     281.36 %
    Net charge-offs to average loans   0.18 %     0.22 %     0.01 %     0.13 %     0.02 %

                                                          

    (1 )      Ratios are annualized.
    (2 )      Ratio represents non-GAAP financial measure. See non-GAAP reconciliations below.
    (3 )   Net interest margin represents net interest income, including accretion income on interest earning assets, as a percentage of average interest earning assets.
    (4 )      Interest rate spread represents the difference between the weighted average yield on interest earning assets, including FTE income, and the weighted average cost of interest bearing liabilities. Ratio represents a non-GAAP financial measure.
    (5 )   Interest earning assets include assets that earn interest/accretion or dividends. Any market value adjustments on investment securities or loans are excluded from interest earning assets.
    (6 )   Non-performing loans consist of non-accruing loans and modified loans on non-accrual.
    (7 )   Non-performing assets include non-performing loans and other real estate owned.
    (8 )   Total loans are net of unearned discounts and fees.
    (9 )   Non-interest income to total revenue represents non-interest income divided by the sum of net interest income FTE and non-interest income. Ratio represents a non-GAAP financial measure.
           

    NATIONAL BANK HOLDINGS CORPORATION
    NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
    (Dollars in thousands, except share and per share data)

    Tangible Common Book Value Ratios

                             
        September 30, 2024   June 30, 2024      December 31, 2023   September 30, 2023
    Total shareholders’ equity   $ 1,291,997     $ 1,247,644     $ 1,212,807     $ 1,163,585  
    Less: goodwill and other intangible assets, net     (358,754 )     (360,732 )     (364,716 )     (366,724 )
    Add: deferred tax liability related to goodwill     13,203       12,871       12,208       11,876  
    Tangible common equity (non-GAAP)   $ 946,446     $ 899,783     $ 860,299     $ 808,737  
                             
    Total assets   $ 9,993,283     $ 9,970,851     $ 9,951,064     $ 9,866,283  
    Less: goodwill and other intangible assets, net     (358,754 )     (360,732 )     (364,716 )     (366,724 )
    Add: deferred tax liability related to goodwill     13,203       12,871       12,208       11,876  
    Tangible assets (non-GAAP)   $ 9,647,732     $ 9,622,990     $ 9,598,556     $ 9,511,435  
                             
    Tangible common equity to tangible assets calculations:                        
    Total shareholders’ equity to total assets     12.93 %     12.51 %     12.19 %     11.79 %
    Less: impact of goodwill and other intangible assets, net     (3.12 )%     (3.16 )%     (3.23 )%     (3.29 )%
    Tangible common equity to tangible assets (non-GAAP)     9.81 %     9.35 %     8.96 %     8.50 %
                             
    Tangible common book value per share calculations:                        
    Tangible common equity (non-GAAP)   $ 946,446     $ 899,783     $ 860,299     $ 808,737  
    Divided by: ending shares outstanding     37,988,364       37,899,453       37,784,851       37,739,776  
    Tangible common book value per share (non-GAAP)   $ 24.91     $ 23.74     $ 22.77     $ 21.43  
                             
    Tangible common book value per share, excluding accumulated other comprehensive loss calculations:                        
    Tangible common equity (non-GAAP)   $ 946,446     $ 899,783     $ 860,299     $ 808,737  
    Accumulated other comprehensive loss, net of tax     62,485       80,425       76,401       100,853  
    Tangible common book value, excluding accumulated other comprehensive loss, net of tax (non-GAAP)     1,008,931       980,208       936,700       909,590  
    Divided by: ending shares outstanding     37,988,364       37,899,453       37,784,851       37,739,776  
    Tangible common book value per share, excluding accumulated other comprehensive loss, net of tax (non-GAAP)   $ 26.56     $ 25.86     $ 24.79     $ 24.10  
                                     

    NATIONAL BANK HOLDINGS CORPORATION
    (Dollars in thousands, except share and per share data)
    Return on Average Tangible Assets and Return on Average Tangible Equity

                                   
        As of and for the three months ended   As of and for the nine months ended
        September 30,       June 30,       September 30,       September 30,       September 30, 
        2024      2024      2023      2024      2023
    Net income   $ 33,105     $ 26,135     $ 36,087     $ 90,631     $ 108,927  
    Add: impact of other intangible assets amortization expense, after tax     1,517       1,516       1,541       4,575       4,128  
    Net income excluding the impact of other intangible assets amortization expense, after tax (non-GAAP)   $ 34,622     $ 27,651     $ 37,628     $ 95,206     $ 113,055  
                                   
    Average assets   $ 9,960,730     $ 9,891,665     $ 9,788,909     $ 9,913,724     $ 9,725,130  
    Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill     (346,757 )     (349,030 )     (356,083 )     (348,717 )     (342,826 )
    Average tangible assets (non-GAAP)   $ 9,613,973     $ 9,542,635     $ 9,432,826     $ 9,565,007     $ 9,382,304  
                                   
    Average shareholders’ equity   $ 1,274,873     $ 1,243,156     $ 1,168,199     $ 1,248,202     $ 1,146,210  
    Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill     (346,757 )     (349,030 )     (356,083 )     (348,717 )     (342,826 )
    Average tangible common equity (non-GAAP)   $ 928,116     $ 894,126     $ 812,116     $ 899,485     $ 803,384  
                                   
    Return on average assets     1.32 %     1.06 %     1.46 %     1.22 %     1.50 %
    Return on average tangible assets (non-GAAP)     1.43 %     1.17 %     1.58 %     1.33 %     1.61 %
    Return on average equity     10.33 %     8.46 %     12.26 %     9.70 %     12.71 %
    Return on average tangible common equity (non-GAAP)     14.84 %     12.44 %     18.38 %     14.14 %     18.81 %
                                             

    Fully Taxable Equivalent Yield on Earning Assets and Net Interest Margin

                                   
        As of and for the three months ended   As of and for the nine months ended
        September 30,    June 30,    September 30,    September 30,    September 30, 
        2024   2024   2023   2024   2023
    Interest income   $ 138,003        $ 132,447        $ 126,110        $ 402,182     $ 360,712  
    Add: impact of taxable equivalent adjustment     1,816       1,711       1,575       5,220       4,432  
    Interest income FTE (non-GAAP)   $ 139,819     $ 134,158     $ 127,685     $ 407,402     $ 365,144  
                                   
    Net interest income   $ 87,653     $ 83,574     $ 87,777     $ 255,257     $ 272,450  
    Add: impact of taxable equivalent adjustment     1,816       1,711       1,575       5,220       4,432  
    Net interest income FTE (non-GAAP)   $ 89,469     $ 85,285     $ 89,352     $ 260,477     $ 276,882  
                                   
    Average earning assets   $ 9,192,454     $ 9,117,766     $ 9,039,864     $ 9,146,020     $ 8,981,033  
    Yield on earning assets     5.97 %     5.84 %     5.53 %     5.87 %     5.37 %
    Yield on earning assets FTE (non-GAAP)     6.05 %     5.92 %     5.60 %     5.95 %     5.44 %
    Net interest margin     3.79 %     3.69 %     3.85 %     3.73 %     4.06 %
    Net interest margin FTE (non-GAAP)     3.87 %     3.76 %     3.92 %     3.80 %     4.12 %
                                             

    Efficiency Ratio and Pre-Provision Net Revenue

                                   
        As of and for the three months ended   As of and for the nine months ended
           September 30,       June 30,       September 30,       September 30,       September 30, 
           2024      2024      2023      2024      2023
    Net interest income   $ 87,653     $ 83,574     $ 87,777     $ 255,257     $ 272,450  
    Add: impact of taxable equivalent adjustment     1,816       1,711       1,575       5,220       4,432  
    Net interest income FTE (non-GAAP)   $ 89,469     $ 85,285     $ 89,352     $ 260,477     $ 276,882  
                                   
    Non-interest income   $ 18,389     $ 14,029     $ 19,365     $ 50,112     $ 47,853  
                                   
    Non-interest expense   $ 64,162     $ 63,075     $ 60,603     $ 190,071     $ 179,876  
    Less: other intangible assets amortization     (1,977 )     (1,977 )     (2,008 )     (5,962 )     (5,378 )
    Non-interest expense excluding other intangible assets amortization (non-GAAP)   $ 62,185     $ 61,098     $ 58,595     $ 184,109     $ 174,498  
                                   
    Efficiency ratio     60.51 %     64.62 %     56.56 %     62.24 %     56.16 %
    Efficiency ratio excluding other intangible assets amortization FTE (non-GAAP)     57.65 %     61.52 %     53.90 %     59.28 %     53.74 %
    Pre-provision net revenue (non-GAAP)   $ 41,880     $ 34,528     $ 46,539     $ 115,298     $ 140,427  
    Pre-provision net revenue, FTE (non-GAAP)     43,696       36,239       48,114       120,518       144,859  

    The MIL Network

  • MIL-OSI: Range Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    FORT WORTH, Texas, Oct. 22, 2024 (GLOBE NEWSWIRE) — RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its third quarter 2024 financial results.

    Third Quarter 2024 Highlights –

    • Cash flow from operating activities of $246 million
    • Cash flow from operations, before working capital changes, of $250 million
    • Capital spending of $156 million, approximately 24% of the 2024 budget
    • Pre-hedge NGL realizations of $25.96 per barrel – premium of $4.10 over Mont Belvieu equivalent
    • Natural gas differentials, including basis hedging, averaged ($0.50) per mcf to NYMEX
    • Production averaged 2.20 Bcfe per day, approximately 68% natural gas
    • Repurchased 800,000 shares at an average of $30.10 per share

    Dennis Degner, the Company’s CEO, commented, “This month marks the 20th anniversary of Range drilling the first commercial Marcellus shale well. The Marcellus and Utica now produce nearly one-third of U.S. natural gas, and the U.S. has become the leading global supplier of safe, clean, affordable natural gas. We are tremendously proud of the role Range has played in this hugely impactful achievement and we are even more excited about what the future holds as global energy demand increases, improving the quality of life for billions of people living in energy poverty. We expect the lowest cost, lowest emissions intensity natural gas producers, like Range, will play an increasingly important role in meeting that growing demand.

    Range has successfully demonstrated the economic durability and sustainability of its high-quality inventory through recent years’ commodity cycles. Despite cyclically low natural gas prices in the third quarter, Range once again returned capital to shareholders, invested in the business and further strengthened our financial position. With an advantaged full-cycle cost structure and an inventory measured in decades, we believe Range is well-positioned to grow its presence as a reliable energy provider while consistently delivering value to shareholders.”

    Financial Discussion

    Except for generally accepted accounting principles (“GAAP”) reported amounts, specific expense categories exclude non-cash impairments, unrealized mark-to-market adjustment on derivatives, non-cash stock compensation and other items shown separately on the attached tables. “Unit costs” as used in this release are composed of direct operating, transportation, gathering, processing and compression, taxes other than income, general and administrative, interest and depletion, depreciation and amortization costs divided by production. See “Non-GAAP Financial Measures” for a definition of non-GAAP financial measures and the accompanying tables that reconcile each non-GAAP measure to its most directly comparable GAAP financial measure.

    Third Quarter 2024 Results

    GAAP revenues and other income for third quarter 2024 totaled $615 million, GAAP net cash provided from operating activities (including changes in working capital) was $246 million, and GAAP net income was $51 million ($0.21 per diluted share).  Third quarter earnings results include a $47 million mark-to-market derivative gain due to decreases in commodity prices.

    Non-GAAP revenues for third quarter 2024 totaled $680 million, and cash flow from operations before changes in working capital, a non-GAAP measure, was $250 million.  Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $117 million ($0.48 per diluted share) in third quarter 2024.

    The following table details Range’s third quarter 2024 unit costs per mcfe(a):

    Expenses   3Q 2024
    (per mcfe)
      3Q 2023
    (per mcfe)
        Increase (Decrease)
                   
    Direct operating(a)   $ 0.12   $ 0.11     9%  
    Transportation, gathering, processing and compression(a)   1.51   1.42     6%  
    Taxes other than income   0.03   0.02     50%  
    General and administrative(a)   0.16   0.15     7%  
    Interest expense(a)   0.14   0.15     (7%)  
    Total cash unit costs(b)   1.96   1.86     5%  
    Depletion, depreciation and amortization (DD&A)   0.45   0.45     0%  
    Total unit costs plus DD&A(b)   $ 2.41   $ 2.31     4%  

    (a)   Excludes stock-based compensation, one-time settlements, and amortization of deferred financing costs.
    (b)   Totals may not be exact due to rounding.

    The following table details Range’s average production and realized pricing for third quarter 2024(a):

      3Q24 Production & Realized Pricing  
        Natural Gas
    (Mcf)
      Oil (Bbl)   NGLs
    (Bbl)
      Natural Gas
    Equivalent (Mcfe)
           
                     
    Net production per day     1,502,106       5,594       111,465     2,204,460
                     
    Average NYMEX price   $ 2.16     $ 75.58     $ 21.86    
    Differential, including basis hedging     (0.50)       (11.55)       4.10    
    Realized prices before NYMEX hedges     1.66       64.03       25.96     2.61
    Settled NYMEX hedges     0.82       5.70       0.14     0.58
    Average realized prices after hedges     $ 2.48       $ 69.73       $ 26.09     $ 3.18 

    (a)   Totals may not be exact due to rounding

    Third quarter 2024 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements) averaged $3.18 per mcfe.

    • The average natural gas price, including the impact of basis hedging, was $1.66 per mcf, or a ($0.50) per mcf differential to NYMEX. The Company is improving its full-year 2024 natural gas differentials versus NYMEX to a range of ($0.39) to ($0.40) per mcf.
    • Range’s pre-hedge NGL price during the quarter was $25.96 per barrel, approximately $4.10 above the Mont Belvieu weighted equivalent. The Company is improving it full year NGL differentials to a premium of +$2.10 – +$2.35 for the year, implying fourth quarter 2024 differentials in the +$1.00 to +$2.00 range.
    • Crude oil and condensate price realizations, before realized hedges, averaged $64.03 per barrel, or $11.55 below WTI (West Texas Intermediate). Range continues to expect condensate differentials to average $10.00-$13.00 below WTI.

    Capital Expenditures and Operational Activity

    Third quarter 2024 drilling and completion expenditures were $146 million. In addition, during the quarter, approximately $10 million was invested in acreage leasehold, gathering systems and other. Total capital spending through third quarter was $501 million, representing approximately 76% of Range’s capital budget for 2024.
      
    The table below summarizes expected 2024 activity. Two wells in northeast Pennsylvania originally scheduled to turn-in-line (TIL) in mid-2024 have been completed but are now scheduled to TIL in early 2025 to maximize water recycling savings and take advantage of expected natural gas price improvements.  

          YTD Wells TIL 3Q 2024   Remaining
    2024
      2024
    Planned TIL
    SW PA Super-Rich     9     9
    SW PA Wet     18   9   27
    SW PA Dry     3   8   11
    NE PA Dry        
    Total Wells     30   17   47


    Financial Position and Repurchase Activity

    As of September 30, 2024, Range had net debt outstanding of approximately $1.44 billion, consisting of $1.72 billion of senior notes and $277 million in cash. During the third quarter, Range repurchased in the open market $3.0 million principal amount of 4.875% senior notes due 2025 at a discount.

    During the third quarter, Range repurchased 800,000 shares at an average price of approximately $30.10. The Company has approximately $1.0 billion of availability under the share repurchase program.

    Guidance – 2024

    Updated Capital & Production Guidance

    Range’s 2024 all-in capital budget is $645 million – $670 million. Annual production is now expected to be ~2.17 Bcfe per day for 2024, an increase of approximately 2% over the last three years of maintenance as a result of well performance and optimized gathering and compression. Liquids are expected to be over 30% of production.

    Updated Full Year 2024 Expense Guidance

    Direct operating expense: $0.11 – $0.12 per mcfe
    Transportation, gathering, processing and compression expense: $1.48 – $1.50 per mcfe
    Taxes other than income: $0.03 – $0.04 per mcfe
    Exploration expense: $22 – $28 million
    G&A expense: $0.17 – $0.18 per mcfe
    Net Interest expense: $0.13 – $0.14 per mcfe
    DD&A expense: $0.45 – $0.46 per mcfe
    Net brokered gas marketing expense: $8 – $12 million
       

    Updated 2024 Price Guidance

    Based on recent market indications, Range expects to average the following price differentials for its production.

    FY 2024 Natural Gas:(1) NYMEX minus $0.39 to $0.40
    FY 2024 Natural Gas Liquids:(2) MB plus $2.10 to $2.35 per barrel
    FY 2024 Oil/Condensate: WTI minus $10.00 to $13.00

    (1) Including basis hedging
    (2) Mont Belvieu-equivalent pricing based on weighting of 53% ethane, 27% propane, 8% normal butane, 4% iso-butane and 8% natural gasoline.

    Hedging Status

    Range hedges portions of its expected future production volumes to increase the predictability of cash flow and maintain a strong, flexible financial position. Please see the detailed hedging schedule posted on the Range website under Investor Relations – Financial Information.

    Range has also hedged basis across the Company’s numerous natural gas sales points to limit volatility between benchmark and regional prices. The combined fair value of natural gas basis hedges as of September 30, 2024, was a net loss of $16.9 million.    

    Conference Call Information

    A conference call to review the financial results is scheduled on Wednesday, October 23 at 8:00 AM Central Time (9:00 AM Eastern Time). Please click here to pre-register for the conference call and obtain a dial in number with passcode.

    A simultaneous webcast of the call may be accessed at http://www.rangeresources.com. The webcast will be archived for replay on the Company’s website until November 23rd.

    Non-GAAP Financial Measures

    To supplement the presentation of its financial results prepared in accordance with generally accepted accounting principles (GAAP), the Company’s earnings press release contains certain financial measures that are not presented in accordance with GAAP. Management believes certain non-GAAP measures may provide financial statement users with meaningful supplemental information for comparisons within the industry. These non-GAAP financial measures may include, but are not limited to Net Income, excluding certain items, Cash flow from operations before changes in working capital, realized prices, Net debt and Cash margin.

    Adjusted net income comparable to analysts’ estimates as set forth in this release represents income or loss from operations before income taxes adjusted for certain non-cash items (detailed in the accompanying table) less income taxes. We believe adjusted net income comparable to analysts’ estimates is calculated on the same basis as analysts’ estimates and that many investors use this published research in making investment decisions and evaluating operational trends of the Company and its performance relative to other oil and gas producing companies. Diluted earnings per share (adjusted) as set forth in this release represents adjusted net income comparable to analysts’ estimates on a diluted per share basis. A table is included which reconciles income or loss from operations to adjusted net income comparable to analysts’ estimates and diluted earnings per share (adjusted). On its website, the Company provides additional comparative information on prior periods along with non-GAAP revenue disclosures.

    Cash flow from operations before changes in working capital represents net cash provided by operations before changes in working capital and exploration expense adjusted for certain non-cash compensation items. Cash flow from operations before changes in working capital (sometimes referred to as “adjusted cash flow”) is widely accepted by the investment community as a financial indicator of an oil and gas company’s ability to generate cash to internally fund exploration and development activities and to service debt. Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operations, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity. A table is included which reconciles net cash provided by operations to cash flow from operations before changes in working capital as used in this release. On its website, the Company provides additional comparative information on prior periods for cash flow, cash margins and non-GAAP earnings as used in this release.

    The cash prices realized for oil and natural gas production, including the amounts realized on cash-settled derivatives and net of transportation, gathering, processing and compression expense, is a critical component in the Company’s performance tracked by investors and professional research analysts in valuing, comparing, rating and providing investment recommendations and forecasts of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Due to the GAAP disclosures of various derivative transactions and third-party transportation, gathering, processing and compression expense, such information is now reported in various lines of the income statement. The Company believes that it is important to furnish a table reflecting the details of the various components of each income statement line to better inform the reader of the details of each amount and provide a summary of the realized cash-settled amounts and third-party transportation, gathering, processing and compression expense, which were historically reported as natural gas, NGLs and oil sales. This information is intended to bridge the gap between various readers’ understanding and fully disclose the information needed.

    Net debt is calculated as total debt less cash and cash equivalents. The Company believes this measure is helpful to investors and industry analysts who utilize Net debt for comparative purposes across the industry.

    The Company discloses in this release the detailed components of many of the single line items shown in the GAAP financial statements included in the Company’s Annual or Quarterly Reports on Form 10-K or 10-Q. The Company believes that it is important to furnish this detail of the various components comprising each line of the Statements of Operations to better inform the reader of the details of each amount, the changes between periods and the effect on its financial results.
      
    We believe that the presentation of PV10 value of our proved reserves is a relevant and useful metric for our investors as supplemental disclosure to the standardized measure, or after-tax amount, because it presents the discounted future net cash flows attributable to our proved reserves before taking into account future corporate income taxes and our current tax structure. While the standardized measure is dependent on the unique tax situation of each company, PV10 is based on prices and discount factors that are consistent for all companies. Because of this, PV10 can be used within the industry and by credit and security analysts to evaluate estimated net cash flows from proved reserves on a more comparable basis.

    RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused in the Appalachian Basin. The Company is headquartered in Fort Worth, Texas.  More information about Range can be found at http://www.rangeresources.com.

    Included within this release are certain “forward-looking statements” within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that are not limited to historical facts, but reflect Range’s current beliefs, expectations or intentions regarding future events.  Words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “outlook”, “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” and similar expressions are intended to identify such forward-looking statements.

    All statements, except for statements of historical fact, made within regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as those regarding future well costs, expected asset sales, well productivity, future liquidity and financial resilience, anticipated exports and related financial impact, NGL market supply and demand, future commodity fundamentals and pricing, future capital efficiencies, future shareholder value, emerging plays, capital spending, anticipated drilling and completion activity, acreage prospectivity, expected pipeline utilization and future guidance information, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management’s assumptions and Range’s future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements. Further information on risks and uncertainties is available in Range’s filings with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K. Unless required by law, Range undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.

    The SEC permits oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions as well as the option to disclose probable and possible reserves. Range has elected not to disclose its probable and possible reserves in its filings with the SEC. Range uses certain broader terms such as “resource potential,” “unrisked resource potential,” “unproved resource potential” or “upside” or other descriptions of volumes of resources potentially recoverable through additional drilling or recovery techniques that may include probable and possible reserves as defined by the SEC’s guidelines. Range has not attempted to distinguish probable and possible reserves from these broader classifications. The SEC’s rules prohibit us from including in filings with the SEC these broader classifications of reserves. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of actually being realized. Unproved resource potential refers to Range’s internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques and have not been reviewed by independent engineers. Unproved resource potential does not constitute reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System and does not include proved reserves. Area wide unproven resource potential has not been fully risked by Range’s management. “EUR”, or estimated ultimate recovery, refers to our management’s estimates of hydrocarbon quantities that may be recovered from a well completed as a producer in the area. These quantities may not necessarily constitute or represent reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System or the SEC’s oil and natural gas disclosure rules. Actual quantities that may be recovered from Range’s interests could differ substantially. Factors affecting ultimate recovery include the scope of Range’s drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals, field spacing rules, recoveries of gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates and other factors. Estimates of resource potential may change significantly as development of our resource plays provides additional data.

    In addition, our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price or drilling cost changes. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at http://www.rangeresources.com or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this Form 10-K on the SEC’s website at http://www.sec.gov or by calling the SEC at 1-800-SEC-0330.

    SOURCE: Range Resources Corporation

    Range Investor Contact:

    Laith Sando, Vice President – Investor Relations
    817-869-4267
    lsando@rangeresources.com

    Range Media Contact:

    Mark Windle, Director of Corporate Communications
    724-873-3223
    mwindle@rangeresources.com 

       
    RANGE RESOURCES CORPORATION  
                                       
    STATEMENTS OF INCOME                  
    Based on GAAP reported earnings with additional                  
    details of items included in each line in Form 10-Q                  
    (Unaudited, In thousands, except per share data)                  
      Three Months Ended September 30,     Nine Months Ended September 30,  
      2024     2023     %     2024     2023     %  
    Revenues and other income:                                  
    Natural gas, NGLs and oil sales (a) $ 533,277     $ 526,718           $ 1,578,728     $ 1,731,382        
    Derivative fair value income   47,124       38,394             110,530       530,095        
    Brokered natural gas, marketing and other (b)   31,289       43,325             91,513       162,092        
    ARO settlement loss (b)         (1 )           (26 )     (1 )      
    Interest income (b)   3,188       1,279             9,507       4,016        
    Other (b)   155       9             193       5,477        
    Total revenues and other income   615,033       609,724       1 %     1,790,445       2,433,061       -26 %
                                       
    Costs and expenses:                                  
    Direct operating   24,799       22,123             68,744       72,162        
    Direct operating – stock-based compensation (c)   486       439             1,454       1,280        
    Transportation, gathering, processing and compression   306,154       277,207             878,524       830,880        
    Taxes other than income   5,117       4,756             15,459       19,643        
    Brokered natural gas and marketing   32,017       45,723             96,425       156,470        
    Brokered natural gas and marketing – stock-based compensation (c)   571       483             1,862       1,604        
    Exploration   6,988       6,658             17,506       18,087        
    Exploration – stock-based compensation (c)   346       312             1,005       935        
    Abandonment and impairment of unproved properties   4,723       11,012             8,618       44,308        
    General and administrative   32,674       29,581             97,818       93,366        
    General and administrative – stock-based compensation (c)   8,639       8,446             27,099       26,461        
    General and administrative – lawsuit settlements   213       66             691       938        
    Exit costs   7,649       10,684             28,058       71,661        
    Deferred compensation plan (d)   (1,930 )     8,997             5,715       29,546        
    Interest expense   27,958       29,260             85,430       89,886        
    Interest expense – amortization of deferred financing costs (e)   1,343       1,339             4,060       4,032        
    Gain on early extinguishment of debt   (11 )                 (254 )     (439 )      
    Depletion, depreciation and amortization   91,137       87,619             265,872       259,197        
    Gain on sale of assets   (69 )     (109 )           (222 )     (353 )      
    Total costs and expenses   548,804       544,596       1 %     1,603,864       1,719,664       -7 %
                                       
    Income before income taxes   66,229       65,128       2 %     186,581       713,397       -74 %
                                       
    Income tax expense                                  
    Current   1,282       601             5,263       3,000        
    Deferred   14,291       15,097             9,820       149,289        
        15,573       15,698             15,083       152,289        
                                       
    Net income $ 50,656     $ 49,430       2 %   $ 171,498     $ 561,108       -69 %
                                       
                                       
    Net Income Per Common Share                                  
    Basic $ 0.21     $ 0.20           $ 0.71     $ 2.30        
    Diluted $ 0.21     $ 0.20           $ 0.70     $ 2.27        
                                       
    Weighted average common shares outstanding, as reported                                  
    Basic   240,865       241,338       0 %     240,832       239,455       1 %
    Diluted   242,623       243,937       -1 %     242,802       242,144       0 %
                                       
                                       
    (a) See separate natural gas, NGLs and oil sales information table.  
    (b) Included in Brokered natural gas, marketing and other revenues in the 10-Q.  
    (c) Costs associated with stock compensation and restricted stock amortization, which have been reflected in the categories associated with the direct personnel costs, which are combined with the cash costs in the 10-Q.  
    (d) Reflects the change in market value of the vested Company stock held in the deferred compensation plan.  
    (e) Included in interest expense in the 10-Q.  
    RANGE RESOURCES CORPORATION  
               
    BALANCE SHEET          
    (In thousands) September 30,     December 31,  
      2024     2023  
      (Unaudited)     (Audited)  
    Assets          
    Current assets $ 495,220     $ 528,794  
    Derivative assets   197,810       442,971  
    Natural gas and oil properties, successful efforts method   6,348,836       6,117,681  
    Other property and equipment   2,084       1,696  
    Operating lease right-of-use assets   118,988       23,821  
    Other   78,365       88,922  
    Total assets $ 7,241,303     $ 7,203,885  
               
    Liabilities and Stockholders’ Equity          
    Current liabilities $ 1,214,860     $ 580,469  
    Asset retirement obligations   2,395       2,395  
    Derivative liabilities   6,649       222  
    Senior notes   1,089,131       1,774,229  
    Deferred tax liabilities   571,095       561,288  
    Derivative liabilities   684       107  
    Deferred compensation liabilities   62,883       72,976  
    Operating lease liabilities   30,811       16,064  
    Asset retirement obligations and other liabilities   123,406       119,896  
    Divestiture contract obligation   271,302       310,688  
    Total liabilities 3,373,216     3,438,334  
               
    Common stock and retained deficit   4,360,303       4,213,585  
    Other comprehensive income   600       647  
    Common stock held in treasury   (492,816 )     (448,681 )
    Total stockholders’ equity   3,868,087       3,765,551  
      $ 7,241,303     $ 7,203,885  
                     
    RECONCILIATION OF TOTAL DEBT AS REPORTED         
    TO NET DEBT, a non-GAAP measure         
    (Unaudited, in thousands)                
      September 30,     December 31,        
      2024     2023     %  
                     
    Total debt, net of deferred financing costs, as reported $ 1,706,514     $ 1,774,229       -4 %
    Unamortized debt issuance costs, as reported   11,626       14,159        
    Less cash and cash equivalents, as reported   (277,450 )     (211,974 )      
    Net debt, a non-GAAP measure $ 1,440,690     $ 1,576,414       -9 %
                                       
    RECONCILIATION OF TOTAL REVENUES AND                  
    OTHER INCOME TO TOTAL REVENUES AS                  
    ADJUSTED, a non-GAAP measure                  
    (Unaudited, in thousands)                  
      Three Months Ended September 30,     Nine Months Ended September 30,  
      2024     2023     %     2024     2023     %  
                                       
    Total revenues and other income, as reported $ 615,033     $ 609,724       1 %   $ 1,790,445     $ 2,433,061       -26 %
    Adjustment for certain special items:                                  
    Total change in fair value related to derivatives                                  
    prior to settlement loss (gain)   65,141       39,048             252,165       (341,599 )      
    ARO settlement loss         1             26       1        
    Total revenues, as adjusted, non-GAAP $ 680,174     $ 648,773       5 %   $ 2,042,636     $ 2,091,463       -2 %

    RANGE RESOURCES CORPORATION
     
                           
    CASH FLOWS FROM OPERATING ACTIVITIES            
    (Unaudited, in thousands)            
                           
      Three Months Ended
    September 30,
        Nine Months Ended
    September 30,
     
      2024     2023     2024     2023  
                           
    Net income   50,656       49,430       171,498       561,108  
    Adjustments to reconcile net cash provided from continuing operations:                      
    Deferred income tax expense   14,291       15,097       9,820       149,289  
    Depletion, depreciation and amortization   91,137       87,619       265,872       259,197  
    Abandonment and impairment of unproved properties   4,723       11,012       8,618       44,308  
    Derivative fair value income   (47,124 )     (38,394 )     (110,530 )     (530,095 )
    Cash settlements on derivative financial instruments   112,265       77,442       362,695       188,496  
    Divestiture contract obligation, including accretion   7,604       10,606       27,933       71,380  
    Allowance for bad debts                      
    Amortization of deferred financing costs and other   927       997       3,352       3,591  
    Deferred and stock-based compensation   8,260       18,763       37,597       60,166  
    Gain on sale of assets   (69 )     (109 )     (222 )     (353 )
    Gain on early extinguishment of debt   (11 )           (254 )     (439 )
                           
    Changes in working capital:                      
    Accounts receivable   24,617       (29,566 )     101,530       288,415  
    Other current assets   20,596       (6,522 )     (1,809 )     (9,520 )
    Accounts payable   (21,334 )     (8,147 )     (27,052 )     (84,291 )
    Accrued liabilities and other   (20,619 )     (37,976 )     (122,424 )     (249,455 )
    Net changes in working capital   3,260       (82,211 )     (49,755 )     (54,851 )
    Net cash provided from operating activities   245,919       150,252       726,624       751,797  
                           
                           
                           
    RECONCILIATION OF NET CASH PROVIDED FROM OPERATING  
    ACTIVITIES, AS REPORTED, TO CASH FLOW FROM OPERATIONS  
    BEFORE CHANGES IN WORKING CAPITAL, a non-GAAP measure  
    (Unaudited, in thousands)                      
      Three Months Ended
    September 30,
        Nine Months Ended
    September 30,
     
      2024     2023     2024     2023  
    Net cash provided from operating activities, as reported $ 245,919     $ 150,252     $ 726,624     $ 751,797  
    Net changes in working capital   (3,260 )     82,211       49,755       54,851  
    Exploration expense   6,988       6,658       17,506       18,087  
    Lawsuit settlements   213       66       691       938  
    Non-cash compensation adjustment and other   313       335       397       383  
    Cash flow from operations before changes in working capital – non-GAAP measure $ 250,173     $ 239,522     $ 794,973     $ 826,056  
                           
                           
                           
    ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING  
    (Unaudited, in thousands)                      
      Three Months Ended
    September 30,
        Nine Months Ended
    September 30,
     
      2024     2023     2024     2023  
    Basic:                      
    Weighted average shares outstanding   241,676       244,446       242,133       244,179  
    Stock held by deferred compensation plan   (811 )     (3,108 )     (1,301 )     (4,724 )
    Adjusted basic   240,865       241,338       240,832       239,455  
                           
    Dilutive:                      
    Weighted average shares outstanding   241,676       244,446       242,133       244,179  
    Dilutive stock options under treasury method   947       (509 )     669       (2,035 )
    Adjusted dilutive   242,623       243,937       242,802       242,144  

    RANGE RESOURCES CORPORATION
     
                                       
    RECONCILIATION OF NATURAL GAS, NGLs AND OIL SALES  
    AND DERIVATIVE FAIR VALUE INCOME (LOSS) TO  
    CALCULATED CASH REALIZED NATURAL GAS, NGLs AND  
    OIL PRICES WITH AND WITHOUT THIRD-PARTY  
    TRANSPORTATION, GATHERING, PROCESSING AND  
    COMPRESSION COSTS, a non-GAAP measure  
    (Unaudited, In thousands, except per unit data)  
      Three Months Ended September 30,     Nine Months Ended September 30,  
      2024     2023     %     2024     2023     %  
    Natural gas, NGLs and Oil Sales components:                                  
    Natural gas sales $ 234,139     $ 246,976           $ 715,266     $ 913,915        
    NGLs sales   266,186       238,211             750,547       695,368        
    Oil sales   32,952       41,531             112,915       122,099        
    Total Natural Gas, NGLs and Oil Sales, as reported $ 533,277     $ 526,718       1 %   $ 1,578,728     $ 1,731,382       -9 %
                                       
    Derivative Fair Value Income, as reported $ 47,124     $ 38,394           $ 110,530     $ 530,095        
    Cash settlements on derivative financial instruments – (gain) loss:                                  
    Natural gas   (107,923 )     (82,472 )           (355,030 )     (196,847 )      
    NGLs   (1,409 )                 (3,310 )            
    Oil   (2,933 )     5,030             (4,355 )     8,351        
    Total change in fair value related to commodity derivatives prior to settlement, a non GAAP measure $ (65,141 )   $ (39,048 )         $ (252,165 )   $ 341,599        
                                       
    Transportation, gathering, processing and compression components:                                  
    Natural Gas $ 153,063     $ 142,202           $ 456,215     $ 436,912        
    NGLs   152,624       134,754             420,975       393,281        
    Oil   467       251             1,334       687        
    Total transportation, gathering, processing and compression, as reported $ 306,154     $ 277,207           $ 878,524     $ 830,880        
                                       
    Natural gas, NGL and Oil sales, including cash-settled derivatives: (c)                                  
    Natural gas sales $ 342,062     $ 329,448           $ 1,070,296     $ 1,110,762        
    NGLs sales   267,595       238,211             753,857       695,368        
    Oil Sales   35,885       36,501             117,270       113,748        
    Total $ 645,542     $ 604,160       7 %   $ 1,941,423     $ 1,919,878       1 %
                                       
    Production of natural gas, NGLs and oil during the periods (a):                                  
    Natural Gas (mcf)   138,193,783       133,305,469       4 %     406,943,086       396,367,927       3 %
    NGLs (bbls)   10,254,759       9,748,012       5 %     29,392,292       28,368,181       4 %
    Oil (bbls)   514,659       587,488       -12 %     1,717,958       1,818,773       -6 %
    Gas equivalent (mcfe) (b)   202,810,291       195,318,469       4 %     593,604,586       577,489,651       3 %
                                       
    Production of natural gas, NGLs and oil – average per day (a):                                  
    Natural Gas (mcf)   1,502,106       1,448,972       4 %     1,485,194       1,451,897       2 %
    NGLs (bbls)   111,465       105,957       5 %     107,271       103,913       3 %
    Oil (bbls)   5,594       6,386       -12 %     6,270       6,662       -6 %
    Gas equivalent (mcfe) (b)   2,204,460       2,123,027       4 %     2,166,440       2,115,347       2 %
                                       
    Average prices, excluding derivative settlements and before third-party                                  
    transportation costs:                                  
    Natural Gas (per mcf) $ 1.69     $ 1.85       -9 %   $ 1.76     $ 2.31       -24 %
    NGLs (per bbl) $ 25.96     $ 24.44       6 %   $ 25.54     $ 24.51       4 %
    Oil (per bbl) $ 64.03     $ 70.69       -9 %   $ 65.73     $ 67.13       -2 %
    Gas equivalent (per mcfe) (b) $ 2.63     $ 2.70       -3 %   $ 2.66     $ 3.00       -11 %
                                       
    Average prices, including derivative settlements before third-party                                  
    transportation costs: (c)                                  
    Natural Gas (per mcf) $ 2.48     $ 2.47       0 %   $ 2.63     $ 2.80       -6 %
    NGLs (per bbl) $ 26.09     $ 24.44       7 %   $ 25.65     $ 24.51       5 %
    Oil (per bbl) $ 69.73     $ 62.13       12 %   $ 68.26     $ 62.54       9 %
    Gas equivalent (per mcfe) (b) $ 3.18     $ 3.09       3 %   $ 3.27     $ 3.32       -2 %
                                       
    Average prices, including derivative settlements and after third-party                                  
    transportation costs: (d)                                  
    Natural Gas (per mcf) $ 1.37     $ 1.40       -2 %   $ 1.51     $ 1.70       -11 %
    NGLs (per bbl) $ 11.21     $ 10.61       6 %   $ 11.33     $ 10.65       6 %
    Oil (per bbl) $ 68.82     $ 61.70       12 %   $ 67.49     $ 62.16       9 %
    Gas equivalent (per mcfe) (b) $ 1.67     $ 1.67       0 %   $ 1.79     $ 1.89       -5 %
                                       
    Transportation, gathering and compression expense per mcfe $ 1.51     $ 1.42       6 %   $ 1.48     $ 1.44       3 %
                                       
    (a) Represents volumes sold regardless of when produced.  
    (b) Oil and NGLs are converted at the rate of one barrel equals six mcfe based upon the approximate relative energy content of oil to natural gas, which may not be indicative of the relationship of oil and natural gas prices.  
    (c) Excluding third-party transportation, gathering, processing and compression costs.  
    (d) Net of transportation, gathering, processing and compression costs.  

    RANGE RESOURCES CORPORATION
     
                                       
    RECONCILIATION OF INCOME BEFORE INCOME  
    TAXES AS REPORTED TO INCOME BEFORE INCOME TAXES  
    EXCLUDING CERTAIN ITEMS, a non-GAAP measure  
    (Unaudited, In thousands, except per share data)  
      Three Months Ended
    September 30,
        Nine Months Ended
    September 30,
     
      2024     2023     %     2024     2023     %  
                                       
    Income from operations before income taxes, as reported   66,229       65,128       2 %     186,581       713,397       -74 %
    Adjustment for certain special items:                                  
    Gain on the sale of assets   (69 )     (109 )           (222 )     (353 )      
    ARO settlement loss         1             26       1        
    Change in fair value related to derivatives prior to settlement   65,141       39,048             252,165       (341,599 )      
    Abandonment and impairment of unproved properties   4,723       11,012             8,618       44,308        
    Gain on early extinguishment of debt   (11 )                 (254 )     (439 )      
    Lawsuit settlements   213       66             691       938        
    Exit costs   7,649       10,684             28,058       71,661        
    Brokered natural gas and marketing – stock-based compensation   571       483             1,862       1,604        
    Direct operating – stock-based compensation   486       439             1,454       1,280        
    Exploration expenses – stock-based compensation   346       312             1,005       935        
    General & administrative – stock-based compensation   8,639       8,446             27,099       26,461        
    Deferred compensation plan – non-cash adjustment   (1,930 )     8,997             5,715       29,546        
                                       
    Income before income taxes, as adjusted   151,987       144,507       5 %     512,798       547,740       -6 %
                                       
    Income tax expense, as adjusted                                  
    Current (a)   1,282       601             5,263       3,000        
    Deferred (a)   33,675       32,636             112,681       122,981        
                                       
    Net income, excluding certain items, a non-GAAP measure $ 117,030     $ 111,270       5 %   $ 394,854     $ 421,759       -6 %
                                       
    Non-GAAP income per common share                                  
    Basic $ 0.49     $ 0.46       7 %   $ 1.64     $ 1.76       -7 %
    Diluted $ 0.48     $ 0.46       4 %   $ 1.63     $ 1.74       -6 %
                                       
    Non-GAAP diluted shares outstanding, if dilutive   242,623       243,937             242,802       242,144        
                                       
    (a) Taxes are estimated to be approximately 23% for 2023 and 2024.  

    RANGE RESOURCES CORPORATION
     
                           
    RECONCILIATION OF NET INCOME, EXCLUDING  
    CERTAIN ITEMS AND ADJUSTED EARNINGS PER  
    SHARE, non-GAAP measures  
    (In thousands, except per share data)  
      Three Months Ended September 30,     Nine Months Ended September 30,  
      2024     2023     2024     2023  
                           
    Net income, as reported $ 50,656     $ 49,430     $ 171,498     $ 561,108  
    Adjustments for certain special items:                      
    Gain on sale of assets   (69 )     (109 )     (222 )     (353 )
    ARO settlement loss         1       26       1  
    Gain on early extinguishment of debt   (11 )           (254 )     (439 )
    Change in fair value related to derivatives prior to settlement   65,141       39,048       252,165       (341,599 )
    Abandonment and impairment of unproved properties   4,723       11,012       8,618       44,308  
    Lawsuit settlements   213       66       691       938  
    Exit costs   7,649       10,684       28,058       71,661  
    Stock-based compensation   10,042       9,680       31,420       30,280  
    Deferred compensation plan   (1,930 )     8,997       5,715       29,546  
    Tax impact   (19,384 )     (17,539 )     (102,861 )     26,308  
                           
    Net income, excluding certain items, a non-GAAP measure $ 117,030     $ 111,270     $ 394,854     $ 421,759  
                           
    Net income per diluted share, as reported $ 0.21     $ 0.20     $ 0.70     $ 2.27  
    Adjustments for certain special items per diluted share:                      
    Gain on sale of assets                      
    ARO settlement loss                      
    Gain on early extinguishment of debt                      
    Change in fair value related to derivatives prior to settlement   0.27       0.16       1.04       (1.41 )
    Abandonment and impairment of unproved properties   0.02       0.05       0.04       0.18  
    Lawsuit settlements                      
    Exit costs   0.03       0.04       0.12       0.30  
    Stock-based compensation   0.04       0.04       0.13       0.13  
    Deferred compensation plan   (0.01 )     0.04       0.02       0.12  
    Adjustment for rounding differences                      
    Tax impact   (0.08 )     (0.07 )     (0.42 )     0.11  
    Dilutive share impact (rabbi trust and other)                     0.04  
                           
    Net income per diluted share, excluding certain items, a non-GAAP measure $ 0.48     $ 0.46     $ 1.63     $ 1.74  
                           
    Adjusted earnings per share, a non-GAAP measure:                      
    Basic $ 0.49     $ 0.46     $ 1.64     $ 1.76  
    Diluted $ 0.48     $ 0.46     $ 1.63     $ 1.74  

    RANGE RESOURCES CORPORATION
     
                           
    RECONCILIATION OF CASH MARGIN PER MCFE, a non-GAAP measure  
    (Unaudited, In thousands, except per unit data)  
      Three Months Ended
    September 30,
        Nine Months Ended
    September 30,
     
      2024     2023     2024     2023  
                           
    Revenues                      
    Natural gas, NGLs and oil sales, as reported $ 533,277     $ 526,718     $ 1,578,728     $ 1,731,382  
    Derivative fair value income, as reported   47,124       38,394       110,530       530,095  
    Less non-cash fair value loss (gain)   65,141       39,048       252,165       (341,599 )
    Brokered natural gas and marketing and other, as reported   34,632       44,612       101,187       171,584  
    Less ARO settlement         1       26       1  
    Cash revenues   680,174       648,773       2,042,636       2,091,463  
                           
    Expenses                      
    Direct operating, as reported   25,285       22,562       70,198       73,442  
    Less direct operating stock-based compensation   (486 )     (439 )     (1,454 )     (1,280 )
    Transportation, gathering and compression, as reported   306,154       277,207       878,524       830,880  
    Taxes other than income, as reported   5,117       4,756       15,459       19,643  
    Brokered natural gas and marketing, as reported   32,588       46,206       98,287       158,074  
    Less brokered natural gas and marketing stock-based compensation   (571 )     (483 )     (1,862 )     (1,604 )
    General and administrative, as reported   41,526       38,093       125,608       120,765  
    Less G&A stock-based compensation   (8,639 )     (8,446 )     (27,099 )     (26,461 )
    Less lawsuit settlements   (213 )     (66 )     (691 )     (938 )
    Interest expense, as reported   29,301       30,599       89,490       93,918  
    Less amortization of deferred financing costs   (1,343 )     (1,339 )     (4,060 )     (4,032 )
    Cash expenses   428,719       408,650       1,242,400       1,262,407  
                           
    Cash margin, a non-GAAP measure $ 251,455     $ 240,123     $ 800,236     $ 829,056  
                           
    Mmcfe produced during period   202,810       195,319       593,605       577,490  
                           
    Cash margin per mcfe $ 1.24     $ 1.23     $ 1.35     $ 1.44  
                           
                           
    RECONCILIATION OF INCOME BEFORE INCOME TAXES  
    TO CASH MARGIN, a non-GAAP measure  
    (Unaudited, in thousands, except per unit data)  
      Three Months Ended
    September 30,
        Nine Months Ended
    September 30,
     
      2024     2023     2024     2023  
                           
    Income before income taxes, as reported $ 66,229     $ 65,128     $ 186,581     $ 713,397  
    Adjustments to reconcile income before income taxes                      
    to cash margin:                      
    ARO settlements         1       26       1  
    Derivative fair value income   (47,124 )     (38,394 )     (110,530 )     (530,095 )
    Net cash receipts on derivative settlements   112,265       77,442       362,695       188,496  
    Exploration expense   6,988       6,658       17,506       18,087  
    Lawsuit settlements   213       66       691       938  
    Exit costs   7,649       10,684       28,058       71,661  
    Deferred compensation plan   (1,930 )     8,997       5,715       29,546  
    Stock-based compensation (direct operating, brokered natural gas and marketing and general and administrative)   10,042       9,680       31,420       30,280  
    Interest – amortization of deferred financing costs   1,343       1,339       4,060       4,032  
    Depletion, depreciation and amortization   91,137       87,619       265,872       259,197  
    Gain on sale of assets   (69 )     (109 )     (222 )     (353 )
    Gain on early extinguishment of debt   (11 )           (254 )     (439 )
    Abandonment and impairment of unproved properties   4,723       11,012       8,618       44,308  
    Cash margin, a non-GAAP measure $ 251,455     $ 240,123     $ 800,236     $ 829,056  

    The MIL Network

  • MIL-OSI Asia-Pac: TRAI releases a consultation paper on ‘the Terms and Conditions of Network Authorisations to be Granted Under the Telecommunications Act, 2023’.

    Source: Government of India

    Posted On: 22 OCT 2024 9:35PM by PIB Delhi

    The Telecom Regulatory Authority of India (TRAI) has today released a consultation paper on ‘the Terms and Conditions of Network Authorisations to be Granted Under the Telecommunications Act, 2023’.

    The Department of Telecommunications (DoT), through a letter dated 26.07.2024, informed TRAI that the Telecommunications Act, 2023 has been published in the Official Gazette of India; Section 3(1)(b) of the Act provides for obtaining an authorisation by any person intending to establish, operate, maintain or expand telecommunication network, subject to such terms and conditions, including fees or charges, as may be prescribed. Through the said letter dated 26.07.2024, DoT, under Section 11(1)(a) of the TRAI Act 1997, requested TRAI to provide its recommendations on terms and conditions, including fees or charges, for authorisation to establish, operate, maintain or expand telecommunication network as per the provisions of the Telecommunications Act, 2023.

    Subsequently, through another letter dated 17.10.2024, DoT requested TRAI to consider an authorisation for satellite communication network under section 3(1)(b) of the Telecommunications Act, 2023.

    In this regard, a consultation paper on ‘the Terms and Conditions of Network Authorisations to be Granted Under the Telecommunications Act, 2023’ has been placed on the TRAI’s website (www.trai.gov.in) for seeking comments/ counter comments from stakeholders. Written comments and counter comments on the issues raised in the consultation paper are invited from stakeholders by 12.11.2024 and 19.11.2024, respectively.

    The Comments/ counter-comments may be sent, preferably in electronic form, at advmn@trai.gov.in. For any clarification/ information, Shri Akhilesh Kumar Trivedi, Advisor (Networks, Spectrum & Licensing), TRAI may be contacted at telephone number +91-11-20907758.

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    SB/DP/ARJ

    (Release ID: 2067198) Visitor Counter : 67

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: Department of Posts starts a proof of concept for transmission of mail through drone

    Source: Government of India

    Posted On: 22 OCT 2024 8:30PM by PIB Delhi

    Keeping pace with the latest developments in the Courier Express & Parcel (CEP) market, Department of Posts has started a proof of concept (POC) on 21stOctober, 2024 for transmission of mail through drone between Chowkham Post Office (PO) and Wakro Branch Post Office (BO) located in Namsai and Lohit district, respectively of Arunachal Pradesh, when a drone from Chowkham PO airlifted at 10.40 AM and landed at Wakro BO at 11.02 AM, carrying the mail for the BO.  In the return journey, drone airlifted from Wakro BO at 11.44 AM and landed at Chowkham PO at 12.08 PM. Department of Posts has entered into a tie up with SKYE AIR Mobility Private Limited for carrying out the POC.  Wakro BO is located at a distance of 45 km from Chowkham PO.   However, due to mountainous terrain, existing transmission time for mail between Chowkham PO to Wakro BO is around 2 hrs to 2 ½ hrs. as mail is being carried through the buses of Arunachal Pradesh State Transport services. Transmission of mail through environment friendly drones has reduced the transmission time of mail between Chowkham PO and Wakro BO to 22 mts. – 24 mts.  Transmission of mail through drone will not only reduce the transmission time in conveyance of mail, but will also bring reliability in transmission of mail as well as real-time tracking of mail in difficult mountainous areas for the Department.   This POC will help the Department in improving the delivery services in areas under Wakro BO.   Department of Posts will expand the usage of drones for transmission of mail in other difficult and mountainous areas upon the successful conduct of POC.

    *****

    SB/DP/ARJ

    (Release ID: 2067172) Visitor Counter : 36

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: NESTS launches ‘Amazon Future Engineer Program’ for Eklavya Model Residential Schools

    Source: Government of India (2)

    Posted On: 22 OCT 2024 7:00PM by PIB Delhi

    National Education Society for Tribal Students (NESTS) today launched the Third Phase of the ‘Amazon Future Engineer Program’ in 50 Eklavya Model Residential Schools (EMRS) spread across Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Odisha, Telangana and Tripura. The third phase would include an orientation on blockchain, artificial intelligence, coding, block programming and AI sessions.

    The Commissioner, NESTS Shri Ajeet Kumar Srivastava also inaugurated the four-day in-person teachers’ training workshop as well as the EMRS Coders Expo, an exhibition of Top 20 Coding Projects from EMRSs during the previous academic year, in New Delhi.

     

    Speaking at the event, Sh. Ajeet Kumar Srivastava, Commissioner, NESTS highlighted the importance of empowering tribal educators with the skills necessary to teach emerging technologies. Further, during the ceremony, the Commissioner, NESTS felicitated the Top 3 Student Coding Projects for their creativity and innovation, along with the Top 3 IT Teachers for their dedication and guidance throughout the year.

    The third phase of the Amazon Future Engineer Program will be rolled out across 410 proposed EMRSs in India. The Amazon Future Engineer Program has been running for two years, has already introduced over 7,000 students in grades 6 to 8 to the fundamentals of computer science and block programming, with over 50 teachers trained in the previous phases. The third phase will expand the curriculum to include blockchain, artificial intelligence, and coding for students in grades 6 to 9. Additionally, project-based virtual sessions will be provided for class 10 students, further aligning with the CBSE AI Skills Curriculum.

    NESTS remains committed to fostering technological literacy and modernizing education for tribal students across the nation. Through these capacity-building programs, NESTS aims to ensure that tribal students are well-prepared for future careers in STEM fields, contributing to India’s technological advancement.

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    PSF

    (Release ID: 2067127) Visitor Counter : 37

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: First regional workshop under the Panchayat Sammelan series on “Ease of Living: Enhancing Service Delivery at the Grassroots” held at NIRD&PR, Hyderabad.

    Source: Government of India (2)

    First regional workshop under the Panchayat Sammelan series on “Ease of Living: Enhancing Service Delivery at the Grassroots” held at NIRD&PR, Hyderabad.

    Government committed to transform every Panchayat into a hub of efficient, transparent, and responsive services: Shri Vivek Bharadwaj, Secretary, Ministry of Panchayati Raj

    Posted On: 22 OCT 2024 4:25PM by PIB Hyderabad

     The Ministry of Panchayati Raj organized the first regional workshop under the Panchayat Sammelan series on “Ease of Living: Enhancing Service Delivery at the Grassroots” today at the National Institute of Rural Development and Panchayati Raj (NIRD&PR), Hyderabad. Shri Vivek Bharadwaj, Secretary, Ministry of Panchayati Raj participated as chief guest and inaugurated this workshop. Addressing the event, he emphasized that government is committed to transform every panchayat into a hub of efficient, transparent, and responsive services. Noting that Sammelan represents a key milestone in this ongoing process , Shri Bharadwaj stressed that effective service delivery with “seva bhaav” (spirit of service) is key to strengthening rural self-reliance and voluntary tax compliance.

     

    He also highlighted the direct correlation between quality service delivery and citizens willingness to pay taxes, enabling Panchayats to achieve self-reliance through self-generated revenue. He added, that successful service delivery models should be documented and shared to inspire other Panchayats. States with exemplary service delivery frameworks should collaborate with others for model replication. Shri Vivek Bharadwaj  also said that the Ministry of Panchayati Raj has approved the provision of 22,164 computers to Gram Panchayats across various states where computers were previously unavailable. This step will significantly enhance access to online services in rural areas. Shri Bharadwaj also mentioned that ministry has also sanctioned the construction of 3,301 Gram Panchayat Bhawans, which will include co-located Common Service Centres (CSCs), further strengthening digital infrastructure at the grassroots level.

     

    Addressing the participants, Dr. G. Narendra Kumar, Director General, NIRD&PR, emphasized that Panchayat representatives and functionaries are tasked with driving positive change at the grassroots level. “By equipping the Panchayat representatives and officials with cutting-edge tools and knowledge, we are setting the stage for a governance revolution that begins from the ground up,” he added.

     

     

    Earlier in his opening remarks, Shri Alok Prem Nagar, Joint Secretary, Ministry of Panchayati Raj, highlighted various digital interventions including ServicePlus of NIC and RapidPro of UNICEF.  He further emphasized that the workshop’s innovative use of technology and focus on collaborative learning has set a new benchmark for future Regional Workshops in the series of Panchayat Sammelan. Informing that that the Hyderabad Panchayat Sammelan is being live streamed in eleven languages through the Bhashini platform, including Bengali, English, Gujarati, Hindi, Kannada, Malayalam, Marathi, Odia, Punjabi, Tamil, and Telugu, he said that this linguistic outreach demonstrates the Ministry’s commitment to inclusive governance and effective knowledge dissemination across diverse linguistic communities.

     

    Shri Lokesh Kumar D. S., Secretary, Panchayat Raj and Rural Development Department, Government of Telangana thanked the Ministry of Panchayati Raj for organising this workshop in Hyderabad. This workshop, was organised as a the first in a series of four regional workshops under Panchayat Sammelan. The primary objective of this programme focused to deliberate on innovative approaches and share experiences for enhancing service delivery at the grassroots level. Representatives from Andhra Pradesh, Telangana, Gujarat, Jharkhand, Madhya Pradesh, Mizoram, and Odisha participated in this workshop and shared their insights on challenges and opportunities in service delivery.

     

    The sessions explored the theme of ease of living through leveraging technology for rural service delivery. The National Informatics Centre (NIC) demonstrated the bespoke Service Plus platform, configurable for online service delivery. Presentations from the Wadhwani Foundation, Bhashini, and UNICEF showcased the potential of Artificial Intelligence and Digital Public Goods (DPGs) in streamlining communication and service delivery at the local level.  NIRD&PR also conducted a session on Benchmarking Rural Service Delivery, providing valuable frameworks for evaluating and enhancing service effectiveness. Panchayat Sammelan provided the participants with enhanced knowledge and actionable strategies to enhance the governance and service delivery mechanism at the Panchayat level.

     

    ***

    (Release ID: 2067045) Visitor Counter : 32

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: Union Minister Jyotiraditya M. Scindia launches ‘International Incoming Spoofed Calls Prevention System’

    Source: Government of India

    Union Minister Jyotiraditya M. Scindia launches ‘International Incoming Spoofed Calls Prevention System’

    Another step by Department of Telecom (DoT) to protect Citizens from cyber frauds

    The system identifies and blocks the incoming international calls posing as Indian phone numbers

    System identified and blocked about 1.35 crore calls as spoofed calls in last 24 hrs, which are 90 % of all the incoming international calls

    Posted On: 22 OCT 2024 6:28PM by PIB Delhi

    Shri Jyotiraditya M. Scindia, Minister of Communications and Development of North Eastern Region today launched ‘International Incoming Spoofed Calls Prevention System’, in the presence of Minister of State for Communications & Rural Development Dr Pemmasani Chandra Sekhar. The launch ceremony was attended by Secretary Telecom and other senior officers. This is another milestone of DoT’s efforts towards building a safe digital space and protecting citizens from cyber-crime.

    Of late, cyber criminals have been committing cyber-crimes by making international spoofed calls displaying Indian mobile numbers (+91-xxxxxxxxx).  These calls appear to be originating within India but are actually being made from abroad by manipulating the calling line identity (CLI) or commonly known as phone number.

    These spoofed calls have been used for financial scams, impersonating government officials, and creating panic.  There have also been cases of cyber-crime threatening disconnection of mobile numbers by DoT/TRAI officials, fake digital arrests, drugs/narcotics in courier, impersonation as police officials, arrest in sex racket etc.

    Department of Communications (DoT) and Telecom Service (TSPs) have collaborated and devised a system to identify and block such incoming international spoofed calls from reaching the Indian telecom subscribers. The system was made operational and it has been observed that within 24 hours of operation of the system, about 1.35 crore or 90% from all the incoming international calls with Indian phone numbers were identified as spoofed calls and blocked by TSPs from reaching Indian telecom subscribers. Indian telecom subscribers should see a significant reduction in such spoofed calls with +91-xxxxxxx numbers with implementation of this system.

    Despite such best efforts, there could be cases where fraudsters succeed through other means. For such calls, you can help by reporting such suspected fraud communications at Chakshu facility on Sanchar Saathi (http://www.sancharsaasthi,gov.in ). The DoT remains committed to proactively combating cybercrime.

    For those who have already lost money or been victims of cybercrime, please report the incident at the cybercrime helpline number 1930 or website  https://www.cybercrime.gov.in

    <><><>

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    SB/DP/ARJ

    (Release ID: 2067113) Visitor Counter : 20

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: SAIL receives prestigious SHRM HR Excellence Awards

    Source: Government of India

    Posted On: 22 OCT 2024 5:34PM by PIB Delhi

    Steel Authority of India Limited (SAIL) has been awarded with SHRM – HR Excellence Awards for ‘Excellence in Inclusion, Equity & Diversity’ and ‘Excellence in Managing the Distributed Workforce’ categories at the prestigious SHRM India Annual Conference 2024 held in New Delhi, recently.

    The awards are a testimony to the pioneering HR practices and initiatives being undertaken across SAIL, at its various Plants and Units spread nationwide, for inclusive growth of workforce in the organization. The company regards its employees as fundamental to its success and at the heart of all its operations. SAIL has been continually undertaking various steps for better employee motivation and engagement.

    Shri Piyush Goyal, Hon’ble Minister of Commerce and Industry and Shri Jayant Chaudhary, Hon’ble Minister of State (I/C) for Skill Development and Entrepreneurship, addressed the audience during the above conference. Many industry stalwarts also shared their views and insights on the occasion. During one of the interactive sessions, Shri K.K. Singh, Director (Personnel), SAIL spoke about innovative HR practices at SAIL and also highlighted the importance of HR in building a resilient Workforce in the contemporary ‘Competitive Business Environment’.

    *******

    MG

    (Release ID: 2067076) Visitor Counter : 11

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: Dr. Jitendra Singh Urges Optimal Use of AI in Government Working

    Source: Government of India

    Dr. Jitendra Singh Urges Optimal Use of AI in Government Working

    AI Session at PMO Unites Officials cross Ranks, Promotes Inclusive Learning Under Mission Karmayogi

    Minister Calls for Responsible Use of AI in Governance, Highlights PM’s Mission Karmayogi Vision

    Posted On: 22 OCT 2024 5:28PM by PIB Delhi

    Union Minister of State (Independent Charge) for Science and Technology, Minister of State (Independent Charge) for Earth Sciences, MoS PMO, Department of Atomic Energy, Department of Space, Personnel, Public Grievances and Pensions, Dr. Jitendra Singh emphasised the need for the optimal use of Artificial Intelligence (AI) in government working to enhance efficiency and productivity.

    Speaking at a special session on AI organised for the staff of the Prime Minister’s Office (PMO) at South Block here, Dr. Jitendra Singh highlighted the critical role AI can play in revolutionizing governance, streamlining operations, and improving decision-making processes across various government departments. The session, which saw participation from officers across all levels—from Section Officers to the Principal Secretary to the Prime Minister to the Union Minister—was a unique demonstration of breaking hierarchical barriers within the PMO, with officials learning the same advanced concepts alongside each other.

    Addressing the session, which included senior officials like Principal Secretary to the Prime Minister Mr. P.K. Mishra and Advisors to the PM, Mr. Amit Khare, Mr. Tarun Kapoor and other senior officers, Dr. Jitendra Singh underscored that AI has the power to automate routine tasks, freeing up government officials to focus on more strategic areas of governance. He highlighted how AI could transform key sectors like healthcare, agriculture, and public service delivery, ensuring that government departments become more efficient and public services more responsive to citizen needs.

    The session was part of the ongoing “National Learning Week” under Mission Karmayogi, an ambitious capacity-building initiative spearheaded by Prime Minister Narendra Modi, aimed at empowering government employees with the knowledge and skills required to navigate the complexities of modern governance. The initiative focuses on creating a more agile, transparent, and effective bureaucracy, and today’s session on AI was a step in that direction.

    Dr. Jitendra Singh praised the Prime Minister’s vision for Mission Karmayogi, stating that it not only enhances the skills of individual officers but also promotes a collaborative and inclusive learning environment, where traditional hierarchies are dissolved in favour of collective learning and growth.

    Dr. Jitendra Singh also emphasised the importance of deploying AI responsibly, stressing the need to safeguard data privacy, particularly in sensitive areas of government functioning. “While AI holds immense potential for enhancing productivity, it must be implemented with caution to ensure confidentiality and data security,” the Minister said, adding that strong security measures are necessary to protect AI systems from cyber threats and unauthorised access. He also called attention to the ethical considerations in the use of AI, urging that fairness and transparency be maintained while avoiding biases in decision-making.

    Participants at the session discussed AI’s role in advancing India’s national infrastructure, security, and economic growth. The collective learning atmosphere encouraged open dialogue on how AI can be leveraged to strengthen India’s digital backbone, improve public service delivery, and support the country’s long-term vision for sustainable growth. The session also marked the beginning of India’s first practical AI data bank, designed to accelerate technological growth over the next decade.

    One of the key discussions at the session was on the role of AI in building smart physical and digital infrastructure, essential for India’s long-term growth. Experts at the session highlighted that AI will reshape national security and public infrastructure, calling for more innovation in front-end technologies—a crucial area where India is seeking to enhance its capabilities.

    AI’s potential to drive industrial transformation, improve the quality of education, and generate employment was also explored. Participants underscored the importance of scaling successful AI use cases, particularly in manufacturing and healthcare, to ensure that the benefits of AI reach a broader population.

    A significant highlight of the session was the call for the development of India’s first practical AI data bank. This initiative is expected to unlock AI’s potential for accelerated growth over the next decade, positioning India as a leader in practical AI applications. The roadmap for AI’s growth focused on a balanced model of development that ensures human-centricity, environmental sustainability, and resilience.

    The session also touched upon AI’s role in addressing geopolitical challenges, noting how AI technologies are influencing global power dynamics. The participants emphasised that India must develop an AI framework that responds to these evolving dynamics, ensuring that the country remains competitive on the global stage.

    The event concluded with a vision for India in 2035 and beyond to 2047, emphasising the importance of citizen empowerment through AI. The focus was on creating an inclusive AI ecosystem that supports growth, transforms governance, and ensures equitable development for all sectors of society.

    As per the Prime Minister’s call, the National Learning Week will focus on learning through various forms of engagement by individual participants, as well as Ministries, Departments, and Organizations. During this week, each Karmayogi will commit to completing at least 4 hours of competency-based learning.

    In concluding his address, Dr. Jitendra Singh reiterated the government’s commitment to harnessing AI for nation-building, assuring that all efforts would be made to integrate AI responsibly into various government functions. He encouraged every government official to take full advantage of the opportunities provided by Mission Karmayogi, as the initiative continues to redefine governance by breaking down barriers, fostering inclusivity, and equipping India’s bureaucracy with the tools of tomorrow.

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    NKR/KS/AG

    (Release ID: 2067071) Visitor Counter : 42

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: BSNL Unveils New Logo and Launches Seven Groundbreaking Services, Strengthening Its Commitment to Secure, Affordable, and Reliable Connectivity

    Source: Government of India

    Posted On: 22 OCT 2024 5:26PM by PIB Delhi

    Bharat Sanchar Nigam Limited (BSNL), has proudly unveiled its new logo, which represents its renewed focus on delivering secure, affordable, and reliable connectivity to every corner of Bharat. The logo was launched by Hon. Union Minister of Communications & Development of NE Region Sri Jyotiraditya M Scindia in presence of Hon. MOS for Communications & Rural Development Dr Pemmasani Chandra Sekhar. The launch ceremony was held at Bharat Sanchar Bhavan and was attended by Secretary Telecom, CMD BSNL& senior Officers from DoT, BSNL, CDoT, ITI & TCIL.

    Alongside the new logo, BSNL has announced seven pioneering initiatives, aimed at revolutionizing how India connects, communicates, and enhances its digital security.

    New Logo – Vibrancy, Trust, and Nationwide Reach

    BSNL’s new logo symbolizes strength, trust, and accessibility. The green and white arrows surrounding India emphasize the company’s expansive nationwide reach, while the vibrant orange backdrop signifies warmth and inclusivity. The bold tagline ‘Connecting Bharat‘ highlights BSNL’s unwavering mission to bridge the digital divide by offering a modern, reliable telecom network that connects both urban and rural India.

    Seven New Initiatives Built on Three Key Pillars

    Security:

    1. Spam! Free Network

    BSNL’s spam-blocking solution automatically filtering out phishing attempts and malicious SMS and creates a safer communication environment for user swithout the need to issue alerts to customers, ensuring seamless and secure communication for all users.

    Affordability:

     

    1. BSNL National Wi-Fi Roaming

    BSNL is launching a first-of-its-kind seamless Wi-Fi roaming service for its FTTH customers, enabling high-speed internet access at BSNL hotspots at no extra charge, thus minimizing data costs for users.

     

    1. BSNL IFTV

    A first for India, BSNL’s fiber-based intranet TV service offers 500+ live channels and Pay TV through its FTTH network. This service will be accessible for all BSNL FTTH subscribers without additional charges. The data used for the TV viewing will not be consuming the FTTH Data pack.

     

    1. Any Time SIM (ATS) Kiosks

    A first of it kind- Automated SIM kiosks allow users to purchase, upgrade, port or replace SIMs on 24/7basis , leveraging UPI/QR-enabled payments with seamless KYC integration and multi-lingual access.

     

    Reliability:

     

    1. Direct-to-Device Service

    India’s first Direct-to-Device (D2D) connectivity solution converges satellite and terrestrial mobile networks to deliver seamless, reliable connectivity. This groundbreaking technology is particularly useful in emergency situations and isolated regions, and can enable UPI payments in such areas.

    1. ‘Public Protection & Disaster Relief’ – as a solution

    BSNL’s scalable, secure network for disaster response is India’s first guaranteed encrypted communication for government and relief agencies during crises, enhancing national disaster management capabilities. The robust network design guarantees uninterrupted connectivity and also uses innovative drone-based and balloon-based systems to extend coverage during disasters.

     

    1. First Private 5G in Mines

    BSNL introduces reliable, low-latency, 5G connectivity for mining operations in partnership with C-DAC, leveraging Made-in-India equipment and BSNL’s technological expertise. This service enables advanced AI and IoT applications, in underground mines and large opencast mine which require high speed low latency connectivity, such as safety analytics, real-time remote control of AGVs, AR enabled remote maintenance, fleet tracking & optimization, etc.

    These launches signal BSNL’s continuing commitment in transforming India’s telecom landscape, ensuring that secure, affordable and reliable connectivity remains accessible to all.

    *****

    SB/DP/ARJ

    (Release ID: 2067066) Visitor Counter : 80

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: MoS Dr Chandra Sekhar Pemmasani addresses concluding session of two day Workshop on Modern Technologies in Survey-Resurvey for Urban Land Records at New Delhi today

    Source: Government of India (2)

    MoS Dr Chandra Sekhar Pemmasani addresses concluding session of two day Workshop on Modern Technologies in Survey-Resurvey for Urban Land Records at New Delhi today

    More than administrative tools, accurate land records are the back bone of socio economic planning, public service delivery and conflict resolution: Dr Pemmasani

    International workshop explored range of innovations including advances in survey-Resurvey techniques, Geo spatial tools, Drone and Aircraft technologies and GIS integrated solutions: MoS Dr Pemmasani

    Posted On: 22 OCT 2024 5:16PM by PIB Delhi

    Minister of State for Rural development Dr Chandra Sekhar Pemmasani addressed concluding session of   two day Workshop on Modern Technologies in Survey-Resurvey for Urban Land Records at Dr. Ambedkar International Centre (DAIC), New Delhi today.  Minister of state during his speech emphasized that more than administrative tools, accurate land records are the back bone of socio economic planning, public service delivery and conflict resolution .This  international workshop explored range of innovations including advances in survey-Resurvey techniques, geo spatial tools, drone and aircraft technologies and GIS integrated solutions. The collective insights shared in this workshop will act as bedrock for building smarter and more efficient urban management system in India. This event has brought together global experts and leaders united in the mission to explore innovative solution for urban land survey, he added.

    Dr. Pemmasani said that as rural land records evolved urban land management must also rise to meet the demand of rapid urbanisation of cities and land administration must keep pace to ensure equitable development. We now stand at a pivotal moment in urban governance where technology meets opportunity. More than tools like Drones, aircraft based survey and satellite imagery offer unparalleled precisions, these technologies provide Ortho rectified images (ORI) , geo referenced maps  that are both accurate and truth to the earth surface. By deploying these tools we reduce human errors increase efficiency and collect consistent up-to-date data in the most challenging urban environment with tall buildings, dense vegetation and complex land usage patterns. Integrating these images into GIS platforms will turn data into actionable insights enabling urban planning real estate development infra structure management, and even disaster preparedness with unprecedented precisions.

    The union minister of State added over the past decade, India, under the visionary Leadership of  Prime Minister Shri Narendra Modi has made significant strides with initiatives such as the Digital India Land Records Modernization Programme (DILRMP). He added that India has digitized Records of Rights (RoR) across over 6.25 lakh villages, launched the Unique Land Parcel Identification Number (ULPIN), also known as Bhu-Aadhaar, and created seamless integration between revenue and registration systems. However, as rural land records evolve, urban land management must also rise to meet the demands of rapid urbanization. Cities are expanding vertically and horizontally, and land administration must keep pace to ensure equitable development. He emphasized that urban land management is not just a technical exercise but is the foundation of economic growth, industrial development, and social harmony.

     Dr Pemmasani said that moreover by creating spatially enabled land records we can resolve longstanding issues such as overlapping ownership claims, inconsistent land valuations and boundary disputes. The time has come to move beyond traditional costly and time consuming surveys and adapt these advanced technologies for a new era in urban governance.  Union minister of state  pleased to learn that this workshop features impactful case studies  and representative from several countries across the globe US, South Korea, Spain, Germany, India and other countries shared experiences overcoming the challenges of urban land management . This workshop is not the end but the beginning of a transformative journey. The insights gained here will shape national programme to modernize urban land records.  We envision the creation of pilot projects across select cities combined with capacity building initiatives for local bodies and state officials. As we leave this workshop let us Carrie with a shared commitment to apply the knowledge technologies and solutions discussed here. Together we will create a transparent efficient and equitable system of urban land management, he added.  Dr Pemmasani emphasised that urban land management is not just a technical exercise and it is the foundation of economic growth, industrial development and social harmony.

    Union minister congratulated the entire department of land resources and the all officials for this one of a kind movement and presenting the modern India’s capabilities to the rest of the world.

    The Department of Land Resources has sanctioned a pilot programme called the “National geospatial Knowledge-based land Survey of urban Habitations (NAKSHA)” with a view to create Land Records in about 130 cities in all the States / UTs within an expected time of one year to be followed by more phases to complete the whole exercise in about 4900 Urban Local Bodies within an expected period of 5 years.

    The workshop was organized with a view to consult experts of other countries on creation and collation of land records, discuss and understand the global best practices in usage of new and emerging technologies for the benefit of the stakeholders, especially the representatives of State Governments. The workshop facilitated discussions on Advanced Land Mapping with Accurate and Efficient Ortho Rectified Image Generation using aerial photography for mapping urban land parcels and properties. The speakers from Industry partners and international experts from USA, Spain, South Korea, France, Germany, Netherlands, UK, Japan and Australia presented their views during the workshop. The workshop facilitated presentations on successful case studies innovative approaches, policy frameworks, technological advancements and stakeholder involvement.

    The workshop has been an excellent gathering of experts and leaders from across the globe and from within the country and one of its kind on the important topic of Urban land survey. It facilitated discussions on the advancements and innovations in modern technologies in survey-resurvey for urban land records and also showcased cutting-edge technologies by both Indian and international firms that can revolutionize land administration in urban areas of our country.

    *****

    SS

    (Release ID: 2067061) Visitor Counter : 45

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: Raksha Mantri & his Singaporean counterpart co-chair 6th India-Singapore Defence Ministerial Dialogue in New Delhi

    Source: Government of India

    Raksha Mantri & his Singaporean counterpart co-chair 6th India-Singapore Defence Ministerial Dialogue in New Delhi

    Agreed to further step up defence cooperation including industry collaboration in niche domains

    Acknowledge long-standing ties based on shared outlook on regional peace, stability & security

    Posted On: 22 OCT 2024 4:29PM by PIB Delhi

    Raksha Mantri Shri Rajnath Singh and Minister of Defence of Singapore Dr Ng Eng Hen co-chaired the sixth India-Singapore Defence Ministerial Dialogue in New Delhi on October 22, 2024. Both Ministers acknowledged the deep and long-standing bilateral defence relations based on shared outlook on regional peace, stability and security.

     

    This meeting assumes significance in the backdrop of India marking a decade of its Act East policy, in which Singapore has played a key role in promoting economic cooperation & cultural ties, and developing strategic connectivity with countries in the region.

    Both Ministers expressed satisfaction at the growing defence cooperation between the two countries. There have been regular engagements between the Armed Forces of the two countries in recent years.

     

    As 2025 marks 60 years of establishment of diplomatic relations between India and Singapore, both Ministers agreed to further step up defence cooperation and agreed to achieve new feats. They also agreed to extend bilateral agreement on Joint Military Training Army for the next five years.

    Recognising that both nations are natural partners for commencing co-development and co-production of defence equipment, both sides agreed to enhance industry cooperation, including exploring collaboration in niche domains such as automation and Artificial Intelligence. The two Ministers also decided to take forward the cooperation in emerging areas like cyber security.

     

    Shri Rajnath Singh thanked Dr Ng Eng Hen for Singapore’s support as country coordinator for India in ASEAN Defence Ministers’ Meeting – Plus from 2021 to 2024. The Defence Minister of Singapore acknowledged that India is a strategic voice for Asia’s peace and stability. The bilateral relationship was recently elevated to Comprehensive Strategic Partnership during the visit of Prime Minister Shri Narendra Modi to Singapore.

    Prior to the Dialogue, the visiting dignitary was accorded a ceremonial welcome and a Tri-Service Guard of Honour.

     

    Earlier, the Singaporean Defence Minister laid a wreath and paid homage to the fallen heroes at the National War Memorial, New Delhi.

     

    Dr Ng Eng Hen is on a visit to India from October 21-23, 2024.

     

    VK/SR/Savvy

    (Release ID: 2067046) Visitor Counter : 55

    MIL OSI Asia Pacific News

  • MIL-OSI Canada: Deputy Prime Minister announces action to protect and create good-paying jobs for Canadian workers

    Source: Government of Canada News

    Workers are at the heart of Canada’s economy. For our economy and for every generation to reach their full potential, Canadian workers need good-paying jobs. We’re doing this by making investments that increase productivity, boost innovation, and accelerate the flow of capital into Canada. And we’re doing everything we can to protect Canadian workers from unfair competition.

    October 22, 2024 – Ottawa, Ontario – Department of Finance Canada
     

    Workers are at the heart of Canada’s economy. For our economy and for every generation to reach their full potential, Canadian workers need good-paying jobs. We’re doing this by making investments that increase productivity, boost innovation, and accelerate the flow of capital into Canada. And we’re doing everything we can to protect Canadian workers from unfair competition.

    Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, alongside the Honourable Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages, and the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant, announced further action to protect and create jobs for Canadian workers.

    First, the Deputy Prime Minister and Minister of Finance announced that effective today, imports of certain Chinese-made steel and aluminum products are subject to a 25 per cent tariff. These tariffs will help level the playing field to protect Canadian workers whose job security is being put at risk by China’s unfair, intentional, and state-directed trade practices of oversupply and overcapacity, as well as its lack of robust environmental and labour standards. Through this action in lockstep with key trading partners, Canada is also preventing trade diversion with these tariffs.

    Recognizing that Canadian businesses may need time to adjust, the federal government is prepared to offer tariff relief in certain, exceptional circumstances to help make sure that Canadian workers aren’t punished as new supply chains are established. Canadian businesses can apply for relief by emailing remissions-remises@fin.gc.ca. Requests received before November 8, 2024, will be processed on a priority basis.

    Second, the Minister of Employment, Workforce Development and Officials Languages announced further robust reforms to the Temporary Foreign Worker Program to ensure the labour market is fair for Canadian workers. Some employers are using the Temporary Foreign Worker Program to hire from abroad at lower wages than what they would pay Canadians. This undercuts Canadians’ wage growth and the number of available jobs, puts temporary foreign workers into precarious situations, and erodes confidence in our immigration system.

    To protect Canadian workers from unfair wage competition, starting November 8, 2024, the hourly wage criteria for the high-wage stream will be raised to 20 per cent above the median hourly wage—between $5 per hour and $8 per hour—depending on the province or territory. This will incentivize employers to hire Canadians before turning to the program and encourage greater wage growth. And to crack down on employers who provide false information on their applications, starting October 28, 2024, the government is implementing stringent new data verification processes, which will ensure only genuine and legitimate job offers are approved.

    Third, the Ministers launched new measures to secure Canada’s artificial intelligence (AI) advantage, including the $200 million Regional Artificial Intelligence Initiative. AI is already unlocking growth and job opportunities in industries across the economy and helping many Canadian workers become more productive. In the past year, job growth in AI increased by nearly one third in Canada—among the highest growth of any sector. And most AI jobs pay well above the average income.

    Today, the government is launching two key parts of its $2.4 billion AI package to ensure the economic benefits of AI reach all corners of our country. Through the new $200 million Regional Artificial Intelligence Initiative, Canada’s Regional Development Agencies will support AI start-ups to bring new technologies to market, and drive AI adoption by small businesses in critical sectors across the economy, such as agriculture, clean technology, health care, and manufacturing. In addition, the National Research Council of Canada Industrial Research Assistance Program is receiving $100 million to help small- and medium-sized businesses scale up and increase productivity by building and deploying new AI solutions.

    The federal government’s economic plan is taking action to protect and create good-paying jobs for Canadian workers. We are protecting workers from unfair Chinese competition and from having their wages undercut. And we are investing in the technologies that create good-paying jobs, accelerate innovation, and boost productivity, so workers can focus on what they do best. This is all part of our plan to raise wages, increase living standards, and build a Canada that’s fairer for every generation.

    Katherine Cuplinskas
    Deputy Director of Communications
    Office of the Deputy Prime Minister and Minister of Finance
    Katherine.Cuplinskas@fin.gc.ca

    MIL OSI Canada News

  • MIL-OSI USA: United States Announces more than $17 million for New Initiatives to Improve the Health of Cambodian People

    Source: USAID

    Today, Administrator Samantha Power, in Siem Reap, announced new U.S. initiatives to support the health and wellbeing of the Cambodian people.

    Administrator Power announced a new five-year program to bolster Cambodia’s fight against tuberculosis (TB), a disease which claims thousands of lives in Cambodia every year. USAID’s Community Mobilization Initiatives to End Tuberculosis 2 (COMMIT 2) program will be implemented by KHANA, the Khmer HIV/AIDS NGO Alliance. USAID has committed $4 million for the first year of the program. Today’s announcement is one of USAID’s largest direct local awards ever to a Cambodian organization. Through this program, USAID will partner with Cambodia to accelerate active case finding by working in and with local communities to improve TB screening and diagnosis, improve digital reporting of TB cases, and increase access to TB preventive therapy.

    The Administrator also announced a commitment of over $1 million to advance efforts to end childhood lead poisoning in Cambodia, in partnership with UNICEF and the Royal Government of Cambodia. This commitment will support a first-of-its kind national survey to evaluate the levels of heavy metals like lead and arsenic in children, pregnant women, the environment, and products. Survey results will support the Royal Government of Cambodia in making evidence-based decisions to improve policy, standards, and regulations around heavy metals so that more Cambodians can live healthier, more productive lives. In September 2024, the United States and Cambodia were among the more than 20 countries making commitments to fighting global lead exposure as founding members of the new Partnership for a Lead-Free Future.

    Finally, Administrator Power announced $12 million in new funding to support a range of demining activities, including landmine clearance and risk education for local communities. To date, U.S. partners have cleared more than 1.5 million landmines and unexploded ordnances (UXOs) from approximately 230,000 acres of land in Cambodia, and continuing this work will help save lives and create a safer, healthier Cambodia.

    Improving health security in Cambodia is an integral part of the U.S. Indo-Pacific strategy. Reducing the prevalence of infectious diseases, like TB, and supporting equitable access to healthcare advance our shared interest of enhancing health and safety for our communities. These investments underscore USAID’s commitment to helping Cambodia improve health outcomes, including by ending TB as a health threat by 2030, prevent lead exposure in mothers and children, and strengthen capacity to confront future public health threats.

    MIL OSI USA News

  • MIL-OSI: Peapack-Gladstone Financial Corporation Reports Third Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    BEDMINSTER, N.J., Oct. 22, 2024 (GLOBE NEWSWIRE) — Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the “Company”) announces its third quarter 2024 financial results.

    This earnings release should be read in conjunction with the Company’s Q3 2024 Investor Update, a copy of which is available on our website at http://www.pgbank.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at http://www.sec.gov.

    During the third quarter of 2024, deposits grew $279 million, to $5.9 billion, which represents an annualized growth rate of 20%. Nearly half of the deposit growth during the quarter was attributed to an increase in noninterest-bearing demand deposit balances which grew $130 million to $1.1 billion. Strong core relationship growth throughout 2024 has allowed the Company to repay all outstanding short-term borrowings and strengthen its liquidity position.  The Company also saw an increase in loan demand during the third quarter. Outstanding loan balances increased by $51 million to $5.3 billion as of September 30, 2024.

    The Company recorded net income of $7.6 million and diluted earnings per share (“EPS”) of $0.43 for the quarter ended September 30, 2024 compared to net income of $7.5 million and EPS of $0.42 for the quarter ended June 30, 2024.

    Net interest income increased $2.6 million, or 8%, on a linked quarter basis to $37.7 million during the third quarter of 2024 compared to $35.0 million in the second quarter.  The growth in net interest income was driven by continued improvement in the net interest margin. The net interest margin increased to 2.34% for the quarter ended September 30, 2024 compared to 2.25% for the quarter ended June 30, 2024 and 2.20% for the quarter ended March 31, 2024.

    Douglas L. Kennedy, President and CEO said, “Our expansion into the metro New York market, leading with our ‘Single Point of Contact’ private banking strategy, continues to deliver results ahead of plan. Our third quarter results reflect this success through strong core deposit growth, continued improvement in net interest income and enhanced liquidity profile. Our New York Commercial Private Banking initiative is currently managing over $730 million in customer relationship deposits, which includes 31% in noninterest-bearing demand deposits. We expect that our expansion will become accretive to earnings in early 2025.”

    Mr. Kennedy also noted, “During the third quarter of 2024, Moody’s reaffirmed our investment grade ratings with a stable outlook after a thorough analysis of our business model and balance sheet. We are fully aware of the headwinds created by the current interest rate environment, and we are confident in our ability to manage through any of these issues that may arise as we execute our private banking strategy, which over time will deliver shareholder value.”

    The following are select highlights for the period ended September 30, 2024:

    Wealth Management:

    • AUM/AUA in our Wealth Management Division totaled a record $12.1 billion at September 30, 2024 compared to $10.9 billion at December 31, 2023.
    • Gross new business inflows for Q3 2024 totaled $140 million ($130 million managed).
    • Wealth Management fee income was $15.2 million in Q3 2024, which amounted to 27% of total revenue for the quarter.

    Commercial Banking and Balance Sheet Management:

    • Year-to-date total deposits have increased by $661 million, to $5.9 billion at September 30, 2024 compared to $5.3 billion at December 31, 2023. The Company intentionally allowed $121 million in high cost, non-core relationship deposits to roll off during the first nine months of 2024. Excluding this deposit run-off, core relationship deposits have grown by $782 million during 2024.
    • The Company has repaid $404 million in short-term borrowings as of September 30, 2024.
    • Total loans declined $116 million to $5.3 billion at September 30, 2024 from $5.4 billion at December 31, 2023. However, outstanding loans increased by $51 million during the three-month period ended September 30, 2024 after experiencing contraction during the first six months of 2024.
    • Commercial and industrial lending (“C&I”) drove a majority of the growth during the third quarter. C&I balances represent 42% of the total loan portfolio at September 30, 2024. A strong pipeline of new business has been built heading into Q4.
    • Fee income on unused commercial lines of credit totaled $845,000 for Q3 2024.
    • The net interest margin (“NIM”) was 2.34% in Q3 2024, an increase of 9 basis points compared to 2.25% at Q2 2024.
    • Noninterest-bearing demand deposits increased by $130 million during the third quarter of 2024 and represented 18% of total deposits as of September 30, 2024.

    Capital Management:

    • Tangible book value per share increased 6% to $32.00 per share at September 30, 2024 compared to $30.31 at December 31, 2023. Book value per share increased 5% to $34.57 per share at September 30, 2024 compared to $32.90 at December 31, 2023.
    • During the third quarter, the Company repurchased 100,000 shares of common stock at a total cost of $2.6 million, or an average cost of $25.92 per share. During the first nine months of 2024, the Company repurchased 300,000 shares of common stock at a cost of $7.2 million. For the full year 2023, the Company repurchased 455,341 shares at a cost of $12.5 million.
    • At September 30, 2024, the Tier 1 Leverage Ratio stood at 10.99% for Peapack-Gladstone Bank (the “Bank”) and 9.33% for the Company. The Common Equity Tier 1 Ratio (to Risk-Weighted Assets) was 13.75% for the Bank and 11.67% for the Company at September 30, 2024. These ratios remain significantly above well capitalized standards, as capital continues to benefit from net income generation.

    SUMMARY INCOME STATEMENT DETAILS:

    The following tables summarize specified financial details for the periods shown.

    Nine Months Ended September 30, 2024 Year Compared to Nine Months Ended September 30, 2023

        Nine Months Ended     Nine Months Ended                
        September 30,     September 30,       Increase/  
    (Dollars in millions, except per share data) (unaudited)   2024     2023       (Decrease)  
    Net interest income   $ 107.10     $ 119.41       $ (12.31 )     (10 )%
    Wealth management fee income     45.98       41.99         3.99       10  
    Capital markets activity     2.30       2.45         (0.15 )     (6 )
    Other income     10.91       11.55         (0.64 )     (6 )
    Total other income     59.19       55.99         3.20       6  
                               
    Total Revenue     166.29       175.40         (9.11 )     (5 )%
                               
    Operating expenses     127.82       110.68         17.14       15  
    Pretax income before provision for credit losses     38.47       64.72         (26.25 )     (41 )
    Provision for credit losses     5.76       9.06         (3.30 )     (36 )
    Pretax income     32.71       55.66         (22.95 )     (41 )
    Income tax expense     8.96       15.40         (6.44 )     (42 )
    Net income   $ 23.75     $ 40.26       $ (16.51 )     (41 )%
    Diluted EPS   $ 1.34     $ 2.23       $ (0.89 )     (40 )%
                               
    Return on average assets     0.49 %     0.84 %       (0.35 )      
    Return on average equity     5.42 %     9.66 %       (4.24 )      

    September 2024 Quarter Compared to Prior Year Quarter

        Three Months Ended       Three Months Ended              
        September 30,       September 30,     Increase/  
    (Dollars in millions, except per share data) (unaudited)   2024       2023     (Decrease)  
    Net interest income   $ 37.68       $ 36.52     $ 1.16       3 %
    Wealth management fee income     15.15         13.98       1.17       8  
    Capital markets activity     0.44         0.61       (0.17 )     (28 )
    Other income     3.35         4.76       (1.41 )     (30 )
    Total other income     18.94         19.35       (0.41 )     (2 )
                               
    Total Revenue     56.62         55.87       0.75       1 %
                               
    Operating expenses     44.65         37.41       7.24       19  
    Pretax income before provision for credit losses     11.97         18.46       (6.49 )     (35 )
    Provision for credit losses     1.22         5.86       (4.64 )     (79 )
    Pretax income     10.75         12.60       (1.85 )     (15 )
    Income tax expense     3.16         3.84       (0.68 )     (18 )
    Net income   $ 7.59       $ 8.76     $ (1.17 )     (13 )%
    Diluted EPS   $ 0.43       $ 0.49     $ (0.06 )     (12 )%
                               
    Return on average assets annualized     0.46 %       0.54 %     (0.08 )      
    Return on average equity annualized     5.12 %       6.20 %     (1.08 )      

    September 2024 Quarter Compared to Linked Quarter

        Three Months Ended     Three Months Ended                
        September 30,     June 30,       Increase/  
    (Dollars in millions, except per share data) (unaudited)   2024     2024       (Decrease)  
    Net interest income   $ 37.68     $ 35.04       $ 2.64       8 %
    Wealth management fee income     15.15       16.42         (1.27 )     (8 )
    Capital markets activity     0.44       0.59         (0.15 )     (25 )
    Other income     3.35       4.55         (1.20 )     (26 )
    Total other income     18.94       21.56         (2.62 )     (12 )
                               
    Total Revenue     56.62       56.60         0.02       0 %
                               
    Operating expenses     44.65       43.13         1.52       4  
    Pretax income before provision for credit losses     11.97       13.47         (1.50 )     (11 )
    Provision for credit losses     1.22       3.91         (2.69 )     (69 )
    Pretax income     10.75       9.56         1.19       12  
    Income tax expense     3.16       2.03         1.13       56  
    Net income   $ 7.59     $ 7.53       $ 0.06       1 %
    Diluted EPS   $ 0.43     $ 0.42       $ 0.01       2 %
                               
    Return on average assets annualized     0.46 %     0.47 %       (0.01 )      
    Return on average equity annualized     5.12 %     5.22 %       (0.10 )      

    SUPPLEMENTAL QUARTERLY DETAILS:

    Wealth Management

    AUM/AUA in the Bank’s Wealth Management Division reached a record high of $12.1 billion at September 30, 2024 compared to $10.9 billion at December 31, 2023.  For the September 2024 quarter, the Wealth Management Team generated $15.2 million in fee income, compared to $16.4 million for the June 30, 2024 quarter and $14.0 million for the September 2023 quarter. The equity markets continued to improve during 2024, contributing to the increase in AUM/AUA along with gross new business inflows of $547 million.

    John Babcock, President of the Bank’s Wealth Management Division, noted, “Q3 2024 saw continued strong client inflows totaling new accounts and client additions of $140 million ($130 million managed). Our new business pipeline is healthy, and we continue to remain focused on delivering excellent service and advice to our clients. Our highly skilled wealth management professionals, our fiduciary powers and expertise, our financial planning capabilities combined with our high-touch client service model distinguishes us in our market and continues to drive our growth and success.”

    Loans / Commercial Banking

    Total loans declined $116 million, or 2%, to $5.3 billion at September 30, 2024 compared to December 31, 2023, primarily driven by repayments, maturities and tighter lending standards. Most of the decline in outstanding loans during the first nine months of 2024 was related to reductions in multifamily and commercial real estate balances. Total C&I loans and leases at September 30, 2024 were $2.2 billion or 42% of the total loan portfolio.

    Mr. Kennedy noted, “Based on a more constructive economic backdrop, we recently began building our pipeline of C&I loans and leases and believe that loan demand will continue to show improvement as we look forward to coming periods ahead. We are proud to have built a leading middle market commercial banking franchise, as evidenced by our C&I Portfolio, Treasury Management services, Corporate Advisory and SBA businesses. We anticipate these business lines fit perfectly with our private banking business model and will generate solid production going forward. During the quarter we originated loans that carried an average spread of more than 4% above our cost of funds.  Having this capability will help us in the near term as the real estate market adjusts to changing market conditions.”

    Net Interest Income (NII)/Net Interest Margin (NIM)

    The Company’s NII of $37.7 million and NIM of 2.34% for Q3 2024 increased $2.6 million and 9 basis points from NII of $35.0 million and NIM of 2.25% for the linked quarter (Q2 2024), and increased $1.2 million and 6 basis points from NII of $36.5 million and NIM of 2.28% compared to the prior year period (Q3 2023). Our single point of contact private banking strategy continues to deliver lower cost core deposit relationships. Noninterest-bearing checking deposits increased by $130 million during the third quarter of 2024, which also drove the improvement in NIM.

    Funding / Liquidity / Interest Rate Risk Management

    Total deposits increased $661 million to $5.9 billion at September 30, 2024 from $5.3 billion at December 31, 2023.  The change in deposit balances included a decline in brokered deposits and non-core deposit relationships.  The overall growth in deposits has strengthened balance sheet liquidity and reduced reliance on outside borrowings and other non-core funding sources. There were no outstanding overnight borrowings at September 30, 2024, compared to $404 million at December 31, 2023.

    At September 30, 2024, the Company’s balance sheet liquidity (investments available for sale, interest-earning deposits and cash) totaled $1.2 billion, or 18% of assets. The Company maintains additional liquidity resources of approximately $3.0 billion through secured available borrowing facilities with the Federal Home Loan Bank and the Federal Reserve Discount Window.  The available funding from the Federal Home Loan Bank and the Federal Reserve are secured by the Company’s loan and investment portfolios. The Company’s total on and off-balance sheet liquidity totaled $4.2 billion, which amounts to 293% of the total uninsured/uncollateralized deposits currently on the Company’s balance sheet.

    Income from Capital Markets Activities

    Noninterest income from Capital Markets activities (detailed below) totaled $435,000 for the September 2024 quarter compared to $586,000 for the June 2024 quarter and $613,000 for the September 2023 quarter.

        Three Months Ended     Three Months Ended     Three Months Ended  
        September 30,     June 30,     September 30,  
    (Dollars in thousands, except per share data) (unaudited)   2024     2024     2023  
    Gain on loans held for sale at fair value (Mortgage banking)   $ 15     $ 34     $ 37  
    Gain on sale of SBA loans     365       449       491  
    Corporate advisory fee income     55       103       85  
    Total capital markets activity   $ 435     $ 586     $ 613  

    Other Noninterest Income (other than Wealth Management Fee Income and Income from Capital Markets Activities)        

    Other noninterest income was $3.4 million for Q3 2024 compared to $4.6 million for Q2 2024 and $4.8 million for Q3 2023. Q3 2024 included $225,000 of income recorded by the Equipment Finance Division related to equipment transfers to lessees upon the termination of leases, compared to $1.6 million in Q2 2024 and $2.3 million in Q3 2023, respectively. Additionally, Q3 2024 included $845,000 of unused line fees compared to $786,000 for Q2 2024 and $794,000 for Q3 2023.

    Operating Expenses

    The Company’s total operating expenses were $44.6 million for the third quarter of 2024, compared to $43.1 million for the second quarter of 2024 and $37.4 million for the quarter ended September 2023. The third quarter of 2024 reflects the full run rate of expenses associated with the Company’s expansion into New York City.

    Mr. Kennedy noted, “We continue to make investments related to our strategic decision to expand into New York City and are confident that these investments will position us for future growth and profitability, which will ultimately translate to increased shareholder value.  We continue to look for opportunities to create efficiencies and manage expenses throughout the Company while investing in enhancements to the client experience.”

    Income Taxes

    The effective tax rate for the three months ended September 30, 2024 was 29.4%, as compared to 21.2% for the June 2024 quarter and 30.5% for the quarter ended September 30, 2023.  The June 2024 quarter included a one-time benefit related to the Company’s deferred tax assets associated with a surtax imposed by the State of New Jersey in June 2024. Excluding such benefit, the effective tax rate for the June 2024 quarter would have been approximately 29.0%.

    Asset Quality / Provision for Credit Losses

    Nonperforming assets remained elevated at $80.5 million, or 1.18% of total assets, at September 30, 2024, as compared to $82.1 million, or 1.26% of total assets, at June 30, 2024. Loans past due 30 to 89 days and still accruing were $31.4 million, or 0.59% of total loans, at September 30, 2024 compared to $34.7 million, or 0.66% of total loans, at June 30, 2024. Criticized and classified loans totaled $261.1 million at September 30, 2024, reflecting a decrease of $8.0 million as compared to $269.1 million at June 30, 2024. The Company currently has no loans or leases on deferral and still accruing.

    For the quarter ended September 30, 2024, the Company’s provision for credit losses was $1.2 million compared to $3.9 million for the June 2024 quarter and $5.9 million for the September 2023 quarter. The provision for credit losses in the third quarter of 2024 was driven by overall slower loan growth along with additional specific reserves related to certain isolated credits, of $1.8 million partially offset by a recovery of approximately $2.1 million. The higher provision for the second quarter of 2024 was primarily driven by charge-offs related to the sale of two problem loans, which were approaching foreclosure and transferred to other real estate owned.

    At September 30, 2024, the allowance for credit losses was $71.3 million (1.34% of total loans), compared to $68.0 million (1.29% of total loans) at June 30, 2024, and $68.6 million (1.25% of total loans) at September 30, 2023.

    Mr. Kennedy noted, “We are starting to see some of our asset quality metrics improve, which supports our position that most of our credit issues are isolated to a small number of specific borrowers and sponsors. We continue to work through each credit one at a time while building up reserve coverage. All of the multifamily loans that matured or repriced in 2024 have continued to make their scheduled payments despite the higher rate environment.”

    Capital

    The Company’s capital position increased during the third quarter of 2024 due to net income of $7.6 million, which was partially offset by the repurchase of 100,000 shares through the Company’s repurchase program at a total cost of $2.6 million and the quarterly dividend payment totaling $882,000. Additionally, during the third quarter of 2024, capital benefited from a reduction in accumulated other comprehensive losses of $13.5 million, net of tax. The total accumulated other comprehensive loss declined to $54.8 million as of September 30, 2024 ($57.6 million loss related to the available for sale securities portfolio partially offset by a $2.8 million gain on the cash flow hedges). 

    Tangible book value per share increased 6% to $32.00 at September 30, 2024 from $30.31 at December 31, 2023. Tangible book value per share is a non-GAAP financial measure. See the reconciliation tables included in this release for further detail. Book value per share increased 5% to $34.57 per share at September 30, 2024 compared to $32.90 at December 31, 2023. The Company’s and Bank’s regulatory capital ratios as of September 30, 2024 remain strong and reflect increases from December 31, 2023 levels. Where applicable, such ratios remain well above regulatory well capitalized standards.

    The Company employs quarterly capital stress testing modeling of an adverse case and severely adverse case. In the most recently completed stress test (as of June 30, 2024), under the severely adverse case, and no growth scenario, the Bank remains well capitalized over a two-year stress period.

    On September 25, 2024, the Company declared a cash dividend of $0.05 per share payable on November 22, 2024 to shareholders of record on November 7, 2024.

    ABOUT THE COMPANY

    Peapack-Gladstone Financial Corporation is a New Jersey based bank holding company with total assets of $6.8 billion and assets under management/administration of $12.1 billion as of September 30, 2024.  Founded in 1921, Peapack-Gladstone Bank is a commercial bank that provides Private Banking customized solutions through its wealth management, commercial and retail solutions, including residential lending and online platforms, to businesses, not for profits and consumers.  Peapack Private, the bank’s wealth management division, offers comprehensive financial, tax, fiduciary and investment advice and solutions to individuals, families, privately-held businesses, family offices and not-for-profit organizations, which help them to establish, maintain and expand their legacy. Together, Peapack-Gladstone Bank and Peapack Private offer an unparalleled commitment to client service. Visit http://www.pgbank.com and http://www.peapackprivate.com for more information.

    FORWARD-LOOKING STATEMENTS

    The foregoing may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about new and existing programs and products, investments, relationships, opportunities and market conditions. These statements may be identified by such forward-looking terminology as “expect,” “look,” “believe,” “anticipate,” “may” or similar statements or variations of such terms. Actual results may differ materially from such forward-looking statements. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to:

    • our ability to successfully grow our business and implement our strategic plan, including our ability to generate revenues to offset the increased personnel and other costs related to the strategic plan;
    • the impact of anticipated higher operating expenses in 2024 and beyond;
    • our ability to successfully integrate wealth management firm and team acquisitions;
    • our ability to successfully integrate our expanded employee base;
    • an unexpected decline in the economy, in particular in our New Jersey and New York market areas, including potential recessionary conditions;
    • declines in our net interest margin caused by the interest rate environment and/or our highly competitive market;
    • declines in the value in our investment portfolio;
    • impact from a pandemic event on our business, operations, customers, allowance for credit losses and capital levels;
    • higher than expected increases in our allowance for credit losses;
    • higher than expected increases in credit losses or in the level of delinquent, nonperforming, classified and criticized loans or charge-offs;
    • inflation and changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and lead to higher operating costs;
    • decline in real estate values within our market areas;
    • legislative and regulatory actions (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Basel III and related regulations) that may result in increased compliance costs;
    • successful cyberattacks against our IT infrastructure and that of our IT and third-party providers;
    • higher than expected FDIC insurance premiums;
    • adverse weather conditions;
    • the current or anticipated impact of military conflict, terrorism or other geopolitical events;
    • our inability to successfully generate new business in new geographic markets, including our expansion into New York City;
    • a reduction in our lower-cost funding sources;
    • changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio;
    • our inability to adapt to technological changes;
    • claims and litigation pertaining to fiduciary responsibility, environmental laws and other matters;
    • our inability to retain key employees;
    • demands for loans and deposits in our market areas;
    • adverse changes in securities markets;
    • changes in New York City rent regulation law;
    • changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
    • changes in accounting policies and practices; and/or
    • other unexpected material adverse changes in our financial condition, operations or earnings.

    A discussion of these and other factors that could affect our results is included in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2023. Except as may be required by the applicable law or regulation, we undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

    Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

    Contact:
    Frank A. Cavallaro, SEVP and CFO
    Peapack-Gladstone Financial Corporation
    T: 908-306-8933

    (Tables to follow)

    PEAPACK-GLADSTONE FINANCIAL CORPORATION
    SELECTED CONSOLIDATED FINANCIAL DATA
    (Dollars in Thousands, except per share data)
    (Unaudited)

        For the Three Months Ended  
        Sept 30,     June 30,     March 31,     Dec 31,     Sept 30,  
        2024     2024     2024     2023     2023  
    Income Statement Data:                              
    Interest income   $ 83,203     $ 79,238     $ 79,194     $ 80,178     $ 78,489  
    Interest expense     45,522       44,196       44,819       43,503       41,974  
    Net interest income     37,681       35,042       34,375       36,675       36,515  
    Wealth management fee income     15,150       16,419       14,407       13,758       13,975  
    Service charges and fees     1,327       1,345       1,322       1,255       1,319  
    Bank owned life insurance     390       328       503       357       310  
    Gain on loans held for sale at fair value
    (Mortgage banking)
        15       34       56       18       37  
    Gain on loans held for sale at lower
    of cost or fair value
              23                    
    Gain on sale of SBA loans     365       449       400       239       491  
    Corporate advisory fee income     55       103       818       39       85  
    Other income     1,162       2,938       1,306       1,339       3,541  
    Fair value adjustment for CRA equity security     474       (84 )     (111 )     585       (404 )
    Total other income     18,938       21,555       18,701       17,590       19,354  
                                   
    Total revenue     56,619       56,597       53,076       54,265       55,869  
                                   
    Salaries and employee benefits     31,050       29,884       28,476       24,320       25,264  
    Premises and equipment     5,633       5,776       5,081       5,416       5,214  
    FDIC insurance expense     870       870       945       765       741  
    Other expenses     7,096       6,596       5,539       7,115       6,194  
    Total operating expenses     44,649       43,126       40,041       37,616       37,413  
    Pretax income before provision for credit losses     11,970       13,471       13,035       16,649       18,456  
    Provision for credit losses     1,224       3,911       627       5,026       5,856  
    Income before income taxes     10,746       9,560       12,408       11,623       12,600  
    Income tax expense     3,159       2,030       3,777       3,024       3,845  
    Net income   $ 7,587     $ 7,530     $ 8,631     $ 8,599     $ 8,755  
                                   
    Per Common Share Data:                              
    Earnings per share (basic)   $ 0.43     $ 0.42     $ 0.49     $ 0.48     $ 0.49  
    Earnings per share (diluted)     0.43       0.42       0.48       0.48       0.49  
    Weighted average number of common
    shares outstanding:
                                 
    Basic     17,616,046       17,747,070       17,711,639       17,770,158       17,856,961  
    Diluted     17,700,042       17,792,296       17,805,347       17,961,400       18,010,127  
    Performance Ratios:                              
    Return on average assets annualized (ROAA)     0.46 %     0.47 %     0.54 %     0.53 %     0.54 %
    Return on average equity annualized (ROAE)     5.12 %     5.22 %     5.94 %     6.13 %     6.20 %
    Return on average tangible equity annualized (ROATCE) (A)     5.54 %     5.67 %     6.45 %     6.68 %     6.75 %
    Net interest margin (tax-equivalent basis)     2.34 %     2.25 %     2.20 %     2.29 %     2.28 %
    GAAP efficiency ratio (B)     78.86 %     76.20 %     75.44 %     69.32 %     66.97 %
    Operating expenses / average assets annualized     2.73 %     2.70 %     2.51 %     2.33 %     2.31 %

    (A) Return on average tangible equity is calculated by dividing tangible equity by annualized net income. See Non-GAAP financial measures reconciliation included in these tables.
    (B) Calculated as total operating expenses as a percentage of total revenue. For Non-GAAP efficiency ratio, see the Non-GAAP financial measures reconciliation included in these tables.

    PEAPACK-GLADSTONE FINANCIAL CORPORATION
    SELECTED CONSOLIDATED FINANCIAL DATA
    (Dollars in Thousands, except per share data)
    (Unaudited)

        For the Nine Months Ended              
        September 30,     Change  
        2024     2023     $     %  
    Income Statement Data:                        
    Interest income   $ 241,635     $ 223,832     $ 17,803       8 %
    Interest expense     134,537       104,418       30,119       29 %
    Net interest income     107,098       119,414       (12,316 )     -10 %
    Wealth management fee income     45,976       41,989       3,987       9 %
    Service charges and fees     3,994       3,897       97       2 %
    Bank owned life insurance     1,221       912       309       34 %
    Gain on loans held for sale at fair value (Mortgage banking)     105       73       32       44 %
    Gain on loans held for sale at lower of cost or fair value     23             23     N/A  
    Gain on sale of SBA loans     1,214       2,194       (980 )     -45 %
    Corporate advisory fee income     976       180       796       442 %
    Other income     5,406       7,147       (1,741 )     -24 %
    Fair value adjustment for CRA equity security     279       (404 )     683       -169 %
    Total other income     59,194       55,988       3,206       6 %
                             
    Total revenue     166,292       175,402       (9,110 )     -5 %
                             
    Salaries and employee benefits     89,410       76,204       13,206       17 %
    Premises and equipment     16,490       14,317       2,173       15 %
    FDIC insurance expense     2,685       2,181       504       23 %
    Other expenses     19,231       17,977       1,254       7 %
    Total operating expenses     127,816       110,679       17,137       15 %
    Pretax income before provision for credit losses     38,476       64,723       (26,247 )     -41 %
    Provision for credit losses     5,762       9,065       (3,303 )     -36 %
    Income before income taxes     32,714       55,658       (22,944 )     -41 %
    Income tax expense     8,966       15,403       (6,437 )     -42 %
    Net income   $ 23,748     $ 40,255     $ (16,507 )     -41 %
                             
                             
    Per Common Share Data:                        
    Earnings per share (basic)   $ 1.34     $ 2.25     $ (0.91 )     -40 %
    Earnings per share (diluted)     1.34       2.23       (0.89 )     -40 %
    Weighted average number of common shares outstanding:                        
    Basic     17,691,309       17,876,316       (185,007 )     -1 %
    Diluted     17,746,560       18,091,524       (344,964 )     -2 %
    Performance Ratios:                        
    Return on average assets (ROAA)     0.49 %     0.84 %     (0.35 )%     -41 %
    Return on average equity (ROAE)     5.42 %     9.66 %     (4.24 )%     -44 %
    Return on average tangible equity (ROATCE) (A)     5.88 %     10.55 %     (4.67 )%     -44 %
    Net interest margin (tax-equivalent basis)     2.26 %     2.54 %     (0.28 )%     -11 %
    GAAP efficiency ratio (B)     76.86 %     63.10 %     13.76 %     22 %
    Operating expenses / average assets     2.65 %     2.31 %     0.34 %     15 %

    (A) Return on average tangible equity is calculated by dividing tangible equity by annualized net income. See Non-GAAP financial measures reconciliation included in these tables.
    (B) Calculated as total operating expenses as a percentage of total revenue.  For Non-GAAP efficiency ratio, see the Non-GAAP financial measures reconciliation included in these tables.

    PEAPACK-GLADSTONE FINANCIAL CORPORATION
    CONSOLIDATED STATEMENTS OF CONDITION
    (Dollars in Thousands)
    (Unaudited)

        As of  
        Sept 30,     June 30,     March 31,     Dec 31,     Sept 30,  
        2024     2024     2024     2023     2023  
    ASSETS                              
    Cash and due from banks   $ 8,129     $ 5,586     $ 5,769     $ 5,887     $ 7,400  
    Federal funds sold                              
    Interest-earning deposits     484,529       310,143       189,069       181,784       180,469  
    Total cash and cash equivalents     492,658       315,729       194,838       187,671       187,869  
    Securities available for sale     682,713       591,884       550,870       550,617       521,005  
    Securities held to maturity     103,158       105,013       106,498       107,755       108,940  
    CRA equity security, at fair value     13,445       12,971       13,055       13,166       12,581  
    FHLB and FRB stock, at cost (A)     12,459       12,478       18,079       31,044       34,158  
                                   
    Residential mortgage     591,374       579,057       581,426       578,427       585,295  
    Multifamily mortgage     1,784,861       1,796,687       1,827,165       1,836,390       1,871,853  
    Commercial mortgage     578,559       600,859       615,964       637,625       622,469  
    Commercial and industrial loans     2,247,853       2,185,827       2,235,342       2,284,940       2,321,917  
    Consumer loans     78,160       69,579       66,827       62,036       57,227  
    Home equity lines of credit     38,971       37,117       35,542       36,464       34,411  
    Other loans     389       172       184       238       265  
    Total loans     5,320,167       5,269,298       5,362,450       5,436,120       5,493,437  
    Less: Allowance for credit losses     71,283       67,984       66,251       65,888       68,592  
    Net loans     5,248,884       5,201,314       5,296,199       5,370,232       5,424,845  
                                   
    Premises and equipment     25,716       24,932       24,494       24,166       23,969  
    Accrued interest receivable     31,973       33,534       32,672       30,676       22,889  
    Bank owned life insurance     47,837       47,716       47,580       47,581       47,509  
    Goodwill and other intangible assets     45,198       45,470       45,742       46,014       46,286  
    Finance lease right-of-use assets     1,020       1,055       1,900       2,087       2,274  
    Operating lease right-of-use assets     41,650       38,683       16,035       12,096       12,800  
    Due from brokers           3,184                    
    Other assets     47,081       71,387       60,591       53,752       76,456  
    TOTAL ASSETS   $ 6,793,792     $ 6,505,350     $ 6,408,553     $ 6,476,857     $ 6,521,581  
                                   
    LIABILITIES                              
    Deposits:                              
    Noninterest-bearing demand deposits   $ 1,079,877     $ 950,368     $ 914,893     $ 957,687     $ 947,405  
    Interest-bearing demand deposits     3,316,217       3,229,814       3,029,119       2,882,193       2,871,359  
    Savings     103,979       105,602       108,305       111,573       117,905  
    Money market accounts     902,562       824,158       775,132       740,559       761,833  
    Certificates of deposit – Retail     515,297       502,810       486,079       443,791       422,291  
    Certificates of deposit – Listing Service     7,454       7,454       7,704       7,804       9,103  
    Subtotal “customer” deposits     5,925,386       5,620,206       5,321,232       5,143,607       5,129,896  
    IB Demand – Brokered     10,000       10,000       10,000       10,000       10,000  
    Certificates of deposit – Brokered           26,000       145,480       120,507       119,463  
    Total deposits     5,935,386       5,656,206       5,476,712       5,274,114       5,259,359  
    Short-term borrowings                 119,490       403,814       470,576  
    Finance lease liability     1,388       1,427       3,104       3,430       3,752  
    Operating lease liability     44,775       41,347       17,630       12,876       13,595  
    Subordinated debt, net     133,489       133,417       133,346       133,274       133,203  
    Due to brokers           9,981                    
    Other liabilities     71,140       74,650       75,892       65,668       82,140  
    TOTAL LIABILITIES     6,186,178       5,917,028       5,826,174       5,893,176       5,962,625  
    Shareholders’ equity     607,614       588,322       582,379       583,681       558,956  
    TOTAL LIABILITIES AND                              
    SHAREHOLDERS’ EQUITY   $ 6,793,792     $ 6,505,350     $ 6,408,553     $ 6,476,857     $ 6,521,581  
    Assets under management and / or administration at
    Peapack-Gladstone Bank’s Private Wealth Management
    Division (market value, not included above-dollars in billions)
      $ 12.1     $ 11.5     $ 11.5     $ 10.9     $ 10.4  

    (A) FHLB means “Federal Home Loan Bank” and FRB means “Federal Reserve Bank.”

    PEAPACK-GLADSTONE FINANCIAL CORPORATION
    SELECTED BALANCE SHEET DATA
    (Dollars in Thousands)
    (Unaudited)

        As of  
        Sept 30,     June 30,     March 31,     Dec 31,     Sept 30,  
        2024     2024     2024     2023     2023  
    Asset Quality:                              
    Loans past due over 90 days and still accruing   $     $     $ 35     $     $  
    Nonaccrual loans     80,453       82,075       69,811       61,324       70,809  
    Other real estate owned                              
    Total nonperforming assets   $ 80,453     $ 82,075     $ 69,846     $ 61,324     $ 70,809  
                                   
    Nonperforming loans to total loans     1.51 %     1.56 %     1.30 %     1.13 %     1.29 %
    Nonperforming assets to total assets     1.18 %     1.26 %     1.09 %     0.95 %     1.09 %
                                   
    Performing modifications (A)(B)   $ 51,796     $ 26,788     $ 12,311     $ 248     $ 248  
                                   
    Loans past due 30 through 89 days and still accruing   $ 31,446     $ 34,714     $ 73,699     $ 34,589     $ 9,780  
                                   
    Loans subject to special mention   $ 113,655     $ 140,791     $ 59,450     $ 71,397     $ 53,328  
                                   
    Classified loans   $ 147,422     $ 128,311     $ 117,869     $ 84,372     $ 94,866  
                                   
    Individually evaluated loans   $ 79,972     $ 81,802     $ 69,530     $ 60,710     $ 70,184  
                                   
    Allowance for credit losses (“ACL”):                              
    Beginning of quarter   $ 67,984     $ 66,251     $ 65,888     $ 68,592     $ 62,704  
    Provision for credit losses (C)     1,227       3,901       615       5,082       5,944  
    (Charge-offs)/recoveries, net (D)     2,072       (2,168 )     (252 )     (7,786 )     (56 )
    End of quarter   $ 71,283     $ 67,984     $ 66,251     $ 65,888     $ 68,592  
                                   
    ACL to nonperforming loans     88.60 %     82.83 %     94.85 %     107.44 %     96.87 %
    ACL to total loans     1.34 %     1.29 %     1.24 %     1.21 %     1.25 %
    Collectively evaluated ACL to total loans (E)     1.16 %     1.14 %     1.15 %     1.13 %     1.10 %

    (A) Amounts reflect modifications that are paying according to modified terms.
    (B) Excludes modifications included in nonaccrual loans of $3.7 million at September 30, 2024, $3.2 million at June 30, 2024, $3.2 million at March 31, 2024, $3.0 million at December 31, 2023 and $3.1 million at September 30, 2023.
    (C) Excludes a credit of $3,000 at September 30, 2024, a provision of $10,000 at June 30, 2024, a provision of $12,000 at March 31, 2024, a credit of $55,000 at December 31, 2023 and a credit of $88,000 at September 30, 2023 related to off-balance sheet commitments.
    (D) Net charge-offs for the quarter ended December 31, 2023 included charge-offs of $2.2 million of a previously established reserve to loans individually evaluated on one multifamily loan and $5.6 million on one equipment finance relationship.
    (E) Total ACL less reserves to loans individually evaluated equals collectively evaluated ACL.

    PEAPACK-GLADSTONE FINANCIAL CORPORATION
    SELECTED BALANCE SHEET DATA
    (Dollars in Thousands)
    (Unaudited)

        As of  
        September 30,     December 31,     September 30,  
        2024     2023     2023  
    Capital Adequacy                              
    Equity to total assets (A)         8.94 %         9.01 %         8.57 %
    Tangible equity to tangible assets (B)         8.33 %         8.36 %         7.92 %
    Book value per share (C)       $ 34.57         $ 32.90         $ 31.37  
    Tangible book value per share (D)       $ 32.00         $ 30.31         $ 28.77  
                                   
    Tangible equity to tangible assets excluding other comprehensive loss*         9.07 %         9.28 %         9.06 %
    Tangible book value per share excluding other comprehensive loss*       $ 35.11         $ 33.97         $ 33.36  

    *Excludes other comprehensive loss of $54.8 million for the quarter ended September 30, 2024, $64.9 million for the quarter ended December 31, 2023, and $81.7 million for the quarter ended September 30, 2023. See Non-GAAP financial measures reconciliation included in these tables.

    (A) Equity to total assets is calculated as total shareholders’ equity as a percentage of total assets at quarter end.
    (B) Tangible equity and tangible assets are calculated by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. Tangible equity as a percentage of tangible assets at quarter end is calculated by dividing tangible equity by tangible assets at quarter end. See Non-GAAP financial measures reconciliation included in these tables.
    (C) Book value per common share is calculated by dividing shareholders’ equity by quarter end common shares outstanding.
    (D) Tangible book value per share excludes intangible assets. Tangible book value per share is calculated by dividing tangible equity by quarter end common shares outstanding. See Non-GAAP financial measures reconciliation tables.

        As of
        September 30,   December 31,   September 30,
        2024     2023     2023  
    Regulatory Capital – Holding Company                              
    Tier I leverage   $ 615,486     9.33 %   $ 600,444     9.19 %   $ 592,061     9.05 %
    Tier I capital to risk-weighted assets     615,486     11.67       600,444     11.43       592,061     11.13  
    Common equity tier I capital ratio
    to risk-weighted assets
        615,474     11.67       600,432     11.43       592,043     11.13  
    Tier I & II capital to risk-weighted assets     800,961     15.19       785,413     14.95       784,777     14.76  
                                   
    Regulatory Capital – Bank                              
    Tier I leverage (E)   $ 724,038     10.99 %   $ 707,446     10.83 %   $ 702,517     10.75 %
    Tier I capital to risk-weighted assets (F)     724,038     13.75       707,446     13.48       702,517     13.22  
    Common equity tier I capital ratio
    to risk-weighted assets (G)
        724,026     13.75       707,434     13.47       702,499     13.22  
    Tier I & II capital to risk-weighted assets (H)     789,954     15.00       773,083     14.73       768,979     14.47  

    (E) Regulatory well capitalized standard (including capital conservation buffer) = 4.00% ($264 million)
    (F) Regulatory well capitalized standard (including capital conservation buffer) = 8.50% ($448 million)
    (G) Regulatory well capitalized standard (including capital conservation buffer) = 7.00% ($369 million)
    (H) Regulatory well capitalized standard (including capital conservation buffer) = 10.50% ($553 million)

    PEAPACK-GLADSTONE FINANCIAL CORPORATION
    LOANS CLOSED
    (Dollars in Thousands)
    (Unaudited)

        For the Quarters Ended  
        Sept 30,     June 30,     March 31,     Dec 31,     Sept 30,  
        2024     2024     2024     2023     2023  
    Residential loans retained   $ 26,955     $ 16,087     $ 11,661     $ 5,895     $ 21,310  
    Residential loans sold     1,853       2,361       4,025       1,449       2,503  
    Total residential loans     28,808       18,448       15,686       7,344       23,813  
    Commercial real estate     4,300       2,600       11,500       21,375       3,900  
    Multifamily     11,295       4,330       1,900       5,725       3,000  
    Commercial (C&I) loans (A) (B)     242,829       103,065       145,803       145,397       176,845  
    SBA     9,106       8,200       2,790       7,326       300  
    Wealth lines of credit (A)     11,675       10,950       3,850       350       6,875  
    Total commercial loans     279,205       129,145       165,843       180,173       190,920  
    Installment loans     8,137       1,664       6,868       2,946       6,999  
    Home equity lines of credit (A)     10,421       4,787       2,103       4,174       6,275  
    Total loans closed   $ 326,571     $ 154,044     $ 190,500     $ 194,637     $ 228,007  
        For the Nine Months Ended  
        Sept 30,     Sept 30,  
        2024     2023  
    Residential loans retained   $ 54,703     $ 90,971  
    Residential loans sold     8,239       5,052  
    Total residential loans     62,942       96,023  
    Commercial real estate     18,400       66,125  
    Multifamily     17,525       59,812  
    Commercial (C&I) loans (A) (B)     491,697       543,631  
    SBA     20,096       23,963  
    Wealth lines of credit (A)     26,475       34,050  
    Total commercial loans     574,193       727,581  
    Installment loans     16,669       23,672  
    Home equity lines of credit (A)     17,311       15,303  
    Total loans closed   $ 671,115     $ 862,579  

    (A) Includes loans and lines of credit that closed in the period but not necessarily funded.
    (B) Includes equipment finance.

    PEAPACK-GLADSTONE FINANCIAL CORPORATION
    AVERAGE BALANCE SHEET
    (Tax-Equivalent Basis, Dollars in Thousands)
    (Unaudited)

        For the Three Months Ended  
        September 30, 2024     September 30, 2023  
        Average     Income/     Annualized     Average     Income/     Annualized  
        Balance     Expense     Yield     Balance     Expense     Yield  
    ASSETS:                                    
    Interest-earning assets:                                    
    Investments:                                    
    Taxable (A)   $ 865,892     $ 6,107       2.82 %   $ 806,861     $ 5,170       2.56 %
    Tax-exempt (A) (B)                       1,198       11       3.67  
                                         
    Loans (B) (C):                                    
    Mortgages     579,949       5,834       4.02       580,951       5,208       3.59  
    Commercial mortgages     2,381,771       27,362       4.60       2,502,351       27,746       4.44  
    Commercial     2,159,648       37,588       6.96       2,298,723       37,357       6.50  
    Commercial construction     22,371       507       9.07       12,346       282       9.14  
    Installment     73,440       1,267       6.90       56,248       967       6.88  
    Home equity     38,768       814       8.40       34,250       680       7.94  
    Other     239       6       10.04       234       7       11.97  
    Total loans     5,256,186       73,378       5.58       5,485,103       72,247       5.27  
    Federal funds sold                                    
    Interest-earning deposits     326,707       3,982       4.88       136,315       1,463       4.29  
    Total interest-earning assets     6,448,785       83,467       5.18 %     6,429,477       78,891       4.91 %
    Noninterest-earning assets:                                    
    Cash and due from banks     7,521                   6,954              
    Allowance for credit losses     (70,317 )                 (63,625 )            
    Premises and equipment     25,530                   23,880              
    Other assets     139,042                   85,582              
    Total noninterest-earning assets     101,776                   52,791              
    Total assets   $ 6,550,561                 $ 6,482,268              
                                         
    LIABILITIES:                                    
    Interest-bearing deposits:                                    
    Checking   $ 3,214,186     $ 31,506       3.92 %   $ 2,813,080     $ 24,318       3.46 %
    Money markets     833,325       6,419       3.08       771,781       4,458       2.31  
    Savings     104,293       117       0.45       118,718       75       0.25  
    Certificates of deposit – retail     512,794       5,540       4.32       415,665       3,459       3.33  
    Subtotal interest-bearing deposits     4,664,598       43,582       3.74       4,119,244       32,310       3.14  
    Interest-bearing demand – brokered     10,000       134       5.36       10,000       136       5.44  
    Certificates of deposit – brokered     7,913       106       5.36       102,777       1,183       4.60  
    Total interest-bearing deposits     4,682,511       43,822       3.74       4,232,021       33,629       3.18  
    Borrowings                       470,616       6,569       5.58  
    Capital lease obligation     1,401       15       4.28       3,863       46       4.76  
    Subordinated debt     133,449       1,685       5.05       133,163       1,730       5.20  
    Total interest-bearing liabilities     4,817,361       45,522       3.78 %     4,839,663       41,974       3.47 %
    Noninterest-bearing liabilities:                                    
    Demand deposits     1,016,014                   990,854              
    Accrued expenses and other liabilities     124,399                   86,598              
    Total noninterest-bearing liabilities     1,140,413                   1,077,452              
    Shareholders’ equity     592,787                   565,153              
    Total liabilities and shareholders’ equity   $ 6,550,561                 $ 6,482,268              
    Net interest income         $ 37,945                 $ 36,917        
    Net interest spread                 1.40 %                 1.44 %
    Net interest margin (D)                 2.34 %                 2.28 %

    (A) Average balances for available for sale securities are based on amortized cost.
    (B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.
    (C) Loans are stated net of unearned income and include nonaccrual loans.
    (D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.

    PEAPACK-GLADSTONE FINANCIAL CORPORATION
    AVERAGE BALANCE SHEET
    (Tax-Equivalent Basis, Dollars in Thousands)
    (Unaudited)

        For the Three Months Ended  
        September 30, 2024     June 30, 2024  
        Average     Income/     Annualized     Average     Income/     Annualized  
        Balance     Expense     Yield     Balance     Expense     Yield  
    ASSETS:                                    
    Interest-earning assets:                                    
    Investments:                                    
    Taxable (A)   $ 865,892     $ 6,107       2.82 %   $ 801,715     $ 5,168       2.58 %
    Tax-exempt (A) (B)                                    
                                         
    Loans (B) (C):                                    
    Mortgages     579,949       5,834       4.02       576,944       5,582       3.87  
    Commercial mortgages     2,381,771       27,362       4.60       2,420,570       26,881       4.44  
    Commercial     2,159,648       37,588       6.96       2,191,370       37,067       6.77  
    Commercial construction     22,371       507       9.07       21,628       489       9.04  
    Installment     73,440       1,267       6.90       67,034       1,143       6.82  
    Home equity     38,768       814       8.40       36,576       748       8.18  
    Other     239       6       10.04       200       6       12.00  
    Total loans     5,256,186       73,378       5.58       5,314,322       71,916       5.41  
    Federal funds sold                                    
    Interest-earning deposits     326,707       3,982       4.88       207,287       2,418       4.67  
    Total interest-earning assets     6,448,785       83,467       5.18 %     6,323,324       79,502       5.03 %
    Noninterest-earning assets:                                    
    Cash and due from banks     7,521                   7,537              
    Allowance for credit losses     (70,317 )                 (67,568 )            
    Premises and equipment     25,530                   24,820              
    Other assets     139,042                   99,838              
    Total noninterest-earning assets     101,776                   64,627              
    Total assets   $ 6,550,561                 $ 6,387,951              
                                         
    LIABILITIES:                                    
    Interest-bearing deposits:                                    
    Checking   $ 3,214,186     $ 31,506       3.92 %   $ 3,094,386     $ 29,252       3.78 %
    Money markets     833,325       6,419       3.08       791,385       6,016       3.04  
    Savings     104,293       117       0.45       105,825       96       0.36  
    Certificates of deposit – retail     512,794       5,540       4.32       504,313       5,367       4.26  
    Subtotal interest-bearing deposits     4,664,598       43,582       3.74       4,495,909       40,731       3.62  
    Interest-bearing demand – brokered     10,000       134       5.36       10,000       134       5.36  
    Certificates of deposit – brokered     7,913       106       5.36       98,642       1,242       5.04  
    Total interest-bearing deposits     4,682,511       43,822       3.74       4,604,551       42,107       3.66  
    Borrowings                       27,247       381       5.59  
    Capital lease obligation     1,401       15       4.28       2,869       22       3.07  
    Subordinated debt     133,449       1,685       5.05       133,377       1,686       5.06  
    Total interest-bearing liabilities     4,817,361       45,522       3.78 %     4,768,044       44,196       3.71 %
    Noninterest-bearing liabilities:                                    
    Demand deposits     1,016,014                   945,231              
    Accrued expenses and other liabilities     124,399                   97,470              
    Total noninterest-bearing liabilities     1,140,413                   1,042,701              
    Shareholders’ equity     592,787                   577,206              
    Total liabilities and shareholders’ equity   $ 6,550,561                 $ 6,387,951              
    Net interest income         $ 37,945                 $ 35,306        
    Net interest spread                 1.40 %                 1.32 %
    Net interest margin (D)                 2.34 %                 2.25 %

    (A) Average balances for available for sale securities are based on amortized cost.
    (B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.
    (C) Loans are stated net of unearned income and include nonaccrual loans.
    (D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.

    PEAPACK-GLADSTONE FINANCIAL CORPORATION
    AVERAGE BALANCE SHEET
    (Tax-Equivalent Basis, Dollars in Thousands)
    (Unaudited)

        For the Nine Months Ended  
        September 30, 2024     September 30, 2023  
        Average     Income/           Average     Income/        
        Balance     Expense     Yield     Balance     Expense     Yield  
    ASSETS:                                    
    Interest-earning assets:                                    
    Investments:                                    
    Taxable (A)   $ 820,594     $ 16,411       2.67 %   $ 801,535     $ 14,541       2.42 %
    Tax-exempt (A) (B)                       1,637       49       3.99  
                                         
    Loans (B) (C):                                    
    Mortgages     578,187       16,836       3.88       556,220       14,433       3.46  
    Commercial mortgages     2,420,772       81,783       4.50       2,495,175       80,503       4.30  
    Commercial     2,196,921       112,214       6.81       2,247,803       106,182       6.30  
    Commercial construction     20,981       1,425       9.06       7,903       536       9.04  
    Installment     68,605       3,524       6.85       49,214       2,416       6.55  
    Home equity     37,255       2,298       8.22       33,914       1,903       7.48  
    Other     218       19       11.62       260       22       11.28  
    Total loans     5,322,939       218,099       5.46       5,390,489       205,995       5.10  
    Federal funds sold                                    
    Interest-earning deposits     225,070       7,922       4.69       147,071       4,452       4.04  
    Total interest-earning assets     6,368,603       242,432       5.08 %     6,340,732       225,037       4.73 %
    Noninterest-earning assets:                                    
    Cash and due from banks     8,384                   8,388              
    Allowance for credit losses     (68,337 )                 (62,753 )            
    Premises and equipment     24,917                   23,850              
    Other assets     109,152                   76,992              
    Total noninterest-earning assets     74,116                   46,477              
    Total assets   $ 6,442,719                 $ 6,387,209              
                                         
    LIABILITIES:                                    
    Interest-bearing deposits:                                    
    Checking   $ 3,088,218     $ 88,192       3.81 %   $ 2,739,115     $ 63,018       3.07 %
    Money markets     794,297       17,959       3.01       893,567       13,185       1.97  
    Savings     106,200       302       0.38       128,437       148       0.15  
    Certificates of deposit – retail     498,353       15,762       4.22       386,488       7,650       2.64  
    Subtotal interest-bearing deposits     4,487,068       122,215       3.63       4,147,607       84,001       2.70  
    Interest-bearing demand – brokered     10,000       394       5.25       15,311       469       4.08  
    Certificates of deposit – brokered     78,042       2,950       5.04       51,916       1,584       4.07  
    Total interest-bearing deposits     4,575,110       125,559       3.66       4,214,834       86,054       2.72  
    Borrowings     87,224       3,848       5.88       331,170       13,249       5.33  
    Capital lease obligation     2,491       75       4.01       4,179       149       4.75  
    Subordinated debt     133,377       5,055       5.05       133,090       4,966       4.98  
    Total interest-bearing liabilities     4,798,202       134,537       3.74 %     4,683,273       104,418       2.97 %
    Noninterest-bearing liabilities:                                    
    Demand deposits     959,571                   1,066,162              
    Accrued expenses and other liabilities     101,247                   82,215              
    Total noninterest-bearing liabilities     1,060,818                   1,148,377              
    Shareholders’ equity     583,699                   555,559              
    Total liabilities and shareholders’ equity   $ 6,442,719                 $ 6,387,209              
    Net interest income         $ 107,895                 $ 120,619        
    Net interest spread                 1.34 %                 1.76 %
    Net interest margin (D)                 2.26 %                 2.54 %

    (A) Average balances for available for sale securities are based on amortized cost.
    (B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.
    (C) Loans are stated net of unearned income and include nonaccrual loans.
    (D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.

    PEAPACK-GLADSTONE FINANCIAL CORPORATION
    NON-GAAP FINANCIAL MEASURES RECONCILIATION

    Tangible book value per share and tangible equity as a percentage of tangible assets at period end are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. We calculate tangible book value per share by dividing tangible equity by common shares outstanding, as compared to book value per common share, which we calculate by dividing shareholders’ equity by common shares outstanding at period end. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios.

    The efficiency ratio is a non-GAAP measure of expense control relative to recurring revenue. We calculate the efficiency ratio by dividing total noninterest expenses, excluding other real estate owned provision, as determined under GAAP, by net interest income and total noninterest income as determined under GAAP, but excluding net gains/(losses) on loans held for sale at lower of cost or fair value and excluding net gains on securities from this calculation, which we refer to below as recurring revenue. We believe that this provides a reasonable measure of core expenses relative to core revenue.

    We believe these non-GAAP financial measures provide information that is important to investors and useful in understanding our financial position, results and ratios because our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titles measures reported by other companies. A reconciliation of the non-GAAP measures of tangible common equity, tangible book value per share and efficiency ratio to the underlying GAAP numbers is set forth below.

    (Dollars in thousands, except per share data)

        Three Months Ended  
        Sept 30,     June 30,     March 31,     Dec 31,     Sept 30,  
    Tangible Book Value Per Share   2024     2024     2024     2023     2023  
    Shareholders’ equity   $ 607,614     $ 588,322     $ 582,379     $ 583,681     $ 558,956  
    Less: Intangible assets, net     45,198       45,470       45,742       46,014       46,286  
    Tangible equity   $ 562,416     $ 542,852     $ 536,637     $ 537,667     $ 512,670  
    Less: other comprehensive loss     (54,820 )     (68,342 )     (67,760 )     (64,878 )     (81,653 )
    Tangible equity excluding other comprehensive loss   $ 617,236     $ 611,194     $ 604,397     $ 602,545     $ 594,323  
                                   
    Period end shares outstanding     17,577,747       17,666,490       17,761,538       17,739,677       17,816,922  
    Tangible book value per share   $ 32.00     $ 30.73     $ 30.21     $ 30.31     $ 28.77  
    Tangible book value per share excluding other comprehensive loss   $ 35.11     $ 34.60     $ 34.03     $ 33.97     $ 33.36  
    Book value per share     34.57       33.30       32.79       32.90       31.37  
                                   
    Tangible Equity to Tangible Assets                              
    Total assets   $ 6,793,792     $ 6,505,350     $ 6,408,553     $ 6,476,857     $ 6,521,581  
    Less: Intangible assets, net     45,198       45,470       45,742       46,014       46,286  
    Tangible assets   $ 6,748,594     $ 6,459,880     $ 6,362,811     $ 6,430,843     $ 6,475,295  
    Less: other comprehensive loss     (54,820 )     (68,342 )     (67,760 )     (64,878 )     (81,653 )
    Tangible assets excluding other comprehensive loss   $ 6,803,414     $ 6,528,222     $ 6,430,571     $ 6,495,721     $ 6,556,948  
                                   
    Tangible equity to tangible assets     8.33 %     8.40 %     8.43 %     8.36 %     7.92 %
    Tangible equity to tangible assets excluding other comprehensive loss     9.07 %     9.36 %     9.40 %     9.28 %     9.06 %
    Equity to assets     8.94 %     9.04 %     9.09 %     9.01 %     8.57 %

    (Dollars in thousands)

        Three Months Ended  
        Sept 30,     June 30,     March 31,     Dec 31,     Sept 30,  
    Return on Average Tangible Equity   2024     2024     2024     2023     2023  
    Net income   $ 7,587     $ 7,530     $ 8,631     $ 8,599     $ 8,755  
                                   
    Average shareholders’ equity   $ 592,787     $ 577,206     $ 581,003     $ 561,055     $ 565,153  
    Less: Average intangible assets, net     45,350       45,624       45,903       46,167       46,468  
    Average tangible equity   $ 547,437     $ 531,582     $ 535,100     $ 514,888     $ 518,685  
                                   
    Return on average tangible common equity     5.54 %     5.67 %     6.45 %     6.68 %     6.75 %
        For the Nine Months Ended  
        Sept 30,     Sept 30,  
    Return on Average Tangible Equity   2024     2023  
    Net income   $ 23,748     $ 40,255  
                 
    Average shareholders’ equity   $ 583,699     $ 555,559  
    Less: Average intangible assets, net     45,625       46,825  
    Average tangible equity     538,074       508,734  
                 
    Return on average tangible common equity     5.88 %     10.55 %

    (Dollars in thousands)

        Three Months Ended  
        Sept 30,     June 30,     March 31,     Dec 31,     Sept 30,  
    Efficiency Ratio   2024     2024     2024     2023     2023  
    Net interest income   $ 37,681     $ 35,042     $ 34,375     $ 36,675     $ 36,515  
    Total other income     18,938       21,555       18,701       17,590       19,354  
    Add:                              
    Fair value adjustment for CRA equity security     (474 )     84       111       (585 )     404  
    Less:                              
    Gain on loans held for sale at lower of cost or fair value           (23 )                  
    Income from life insurance proceeds     (55 )           (181 )            
    Total recurring revenue     56,090       56,658       53,006       53,680       56,273  
                                   
    Operating expenses     44,649       43,126       40,041       37,616       37,413  
    Total operating expense     44,649       43,126       40,041       37,616       37,413  
                                   
    Efficiency ratio     79.60 %     76.12 %     75.54 %     70.07 %     66.48 %

    (Dollars in thousands)

        For the Nine Months Ended  
        Sept 30,     Sept 30,  
    Efficiency Ratio   2024     2023  
    Net interest income   $ 107,098     $ 119,414  
    Total other income     59,194       55,988  
    Add:            
    Fair value adjustment for CRA equity security     (279 )     404  
    Less:            
    Gain on loans held for sale at lower of cost or fair value     (23 )      
    Income from life insurance proceeds     (236 )      
    Total recurring revenue     165,754       175,806  
                 
    Operating expenses     127,816       110,679  
    Less:            
    Accelerated Expense for Retirement           1,965  
    Branch Closure Expense           175  
    Total operating expense     127,816       108,539  
                 
    Efficiency ratio     77.11 %     61.74 %

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