THE BOARD OF DIRECTORS OF “BANCO DI DESIO E DELLA BRIANZA S.P.A.” APPROVED
THE CONSOLIDATED FINANCIAL STATEMENTS AND THE DRAFT INDIVIDUAL FINANCIAL STATEMENTS AS AT 31 DECEMBER 2008
NET PROFIT FROM CURRENT OPERATIONS ALMOST UNCHANGED COMPARED TO 2007 (-6.3%); DIVIDEND UNCHANGED; INCREASED SHAREHOLDERS’ EQUITY (+5.9%); NO SIGNIFICANT IMPAIRMENT; LOWER GAINS ON DISPOSAL OF EQUITY INVESTMENTS
FINANCIAL STATEMENT FIGURES FOR FY 2008
MAIN CONSOLIDATED FIGURES AS AT 31 DECEMBER 2008 (1)
Direct deposits from customers EUR 6,466.3 million (+15.1%)
Net loans to customers EUR 5,706.7 million (+12.2%)
Net interbank balance EUR 548.7 million (+452.4%)
Parent Company shareholders’ equity EUR 697.6 million (+5.2%) (2)
Tier1 and Core Tier1 9.8%
Operating income EUR 346.6 million (+5.2%)
of which Net interest income EUR 228.9 million (+14.2%)
Operating charges EUR 213.8 million (+5.0%)
Operating profit/loss EUR 132.8 million (+5.6%)
Profit from current operations after tax EUR 51.3 million (-10.9%)
Parent Company profit for the period EUR 63.1 million (prev. EUR 180.1 million, of which EUR
122.7 million of Profit from extraordinary operations after tax) (3)
(1) 2007 figures – to which percentage changes refer – were duly restated following the transfer of control of Chiara Vita S.p.A. in October 2008 and the corresponding deconsolidation, in order to ensure a more uniform year-on-year comparison between items;
(2) including profit for the period;
(3) the comparative figure as at 31 December 2007 includes the gain equal to EUR 119.4 million (after tax) from the Parent Company’s disposal of the share of 29.72% in Anima Sgrp.A. in July 2007.
MAIN FIGURES OF THE DRAFT INDIVIDUAL FINANCIAL STATEMENTS OF THE PARENT COMPANY AS AT 31 DECEMBER 2008
Direct deposits from customers EUR 5,171.2 million (+15.1%)
Net loans to customers EUR 4,456.9 million (+6.0%)
Net interbank balance EUR 486.4 million (+585.1%)
Shareholders’ Equity EUR 671.8 million (+5.9%) (2)
Tier1 and Core Tier1 13.1%
Operating income EUR 288.1 million (+2.6%)
of which Net interest income EUR 190.2 million (+10.2%)
Operating charges EUR 165.5 million (+1.2%)
Operating profit/loss EUR 122.6 million (+4.5%)
Profit from current operations after tax EUR 54.2 million (-6.3%)
Profit for the period EUR 65.5 million (prev. EUR 185.8 million, of which EUR 127.9 million of Profit from
extraordinary operations after tax) (4)
(4)the comparative figure as at 31 December 2007 includes the gain equal to EUR 127 million (after tax) from the Parent Company’s disposal of the share of 29.72% in Anima Sgrp.A. in July 2007.
Proposed dividend, unchanged compared to previous year:
EUR 0.105 for each ordinary share
EUR 0.126 for each savings share
The Board of Directors of Banco di Desio e della Brianza S.p.A., which met on 24 March 2009, approved the consolidated Financial Statements and the draft individual Financial Statements as at 31 December 2008, drawn up pursuant to IAS/IFRS international accounting standards and to the Bank of Italy’s provisions set out in Memorandum no. 262 of 22 December 2005.
The Board of Directors previously resolved to call the Ordinary Shareholders’ Meeting on 28 April 2009 in Desio, at 11 a.m. on first call and on 29 April 2009 on second call, at the same place and time.
It should be underlined that the Group decided not to take advantage of the amendment set out in IAS 39 concerning the classification of the trading securities portfolio. Consequently, the international accounting standards have been adopted also for the financial year under review.
Balance sheet data
Total customer assets under management recorded an annual increase in direct deposits equal to EUR 0.8 billion, totalling EUR 6.5 billion (+15.1%). Indirect deposits showed a downward trend – as also happened within the whole system – especially with regard to institutional customers that – with a reduction of EUR 4.4 billion, i.e. 35.3% – represent about 90% of the decrease of total indirect deposits. With regard to ordinary customers, deposits were down EUR 0.6 billion (6.9%) during the twelve-month period.
The total value of loans to customers was equal to EUR 5.7 billion, up 12.2% compared to the comparative period.
The credit risk index, determined by the “non-performing loans/net loans to customers” ratio, stood at 0.68%, compared to the comparative figure of 0.57%.
Total Group financial assets amounted to EUR 0.8 billion, down EUR 0.2 billion compared to the same period last year.
The net interbank position showed an upward trend, with a positive balance of about EUR 0.5 billion, compared to the negative balance of about EUR 0.1 billion at the end of 2007.
Shareholders’ Equity, including profit for the period, totalled EUR 697.6 million, up EUR 34.6 million compared to the previous year.
The consolidated capital ratios as at 31 December 2008 – which were calculated according to the current Basel II criteria of the supervisory regulations – showed a Tier1 and Core Tier1 equal to 9.8% and a Tier2 equal to 10.5%.
Income statement data
The Parent Company profit for the period was approximately EUR 63.1 million, the Net operating profit amounting to EUR 51.3 million.
The main items of the reclassified Income Statement showed the following trend:
The typical items of ordinary operations show a 5.2% overall increase on the previous year, reaching EUR 346.6 million. The growth is attributable to (i) the EUR 28.5 million increase in Net interest income, totalling EUR 228.9 million, which accounts for 66% of the total (i.e. 14.2%), (ii) the trend in Other operating income/charges of EUR 3.8 million and (iii) in the profit from insurance management of EUR 2.6 million, partly offset by the trend of the remaining items.
More specifically, profit from investments was affected by the lower income from Anima SGRp.A, which at the end of the financial year was still an associated company; the item comprising the Profit/loss on trading, hedging and disposal/repurchase of financial assets and liabilities measured at fair value highlights a drop of EUR 4.4. million, mainly attributable to the result of trading activities and a drop of EUR 11 million in net commissions which is correlated to the effects of the financial market turmoil, nonetheless mitigated by the increase in income from more
Total operating charges, which include Personnel expenses, Other administrative expenses and net adjustments to property, plant and equipment and intangible assets show a balance of EUR 213.8 million, reporting a yearly increase of 5%.
The operating result for the year is a profit of EUR 132.8 million, which highlights an annual growth of 5.6% equal to EUR 7.1 million.
Operating profit before tax
After deducting (i) net adjustments for impairment of loans, (ii) losses from disposal of investments or repurchase of loans, equal to EUR 45.8 million - almost entirely due to the amount of write-downs booked (as the losses recorded
were EUR 3.6 million) –, (iii) the Net adjustments for impairment of other financial transactions available for sale and of other financial transactions for a total of EUR 1.4 million, as well as (iv) the positive balance of EUR 0.2 million of
Net allocations to provisions for risks and charges, the net operating profit is equal to EUR 85.7 million.
Operating profit after tax
Considering the tax burden for the year associated with current operations and amounting to EUR 34.5 million, the operating profit after tax stands at approximately EUR 51.3 million, a 10.9% decrease compared to the result achieved in the previous financial year, equal to approximately EUR 6.3 million in absolute terms.
Extraordinary profit before and after tax
The extraordinary profit before tax amounts to EUR 12.4 million and is mainly represented by the capital gain associated with the disposal of 70% of Chiara Vita S.p.A. less EUR 49 million of directly attributable costs and the provision for risks and charges of EUR 37.8 million as, based on the typical contractual terms of similar transactions, it can be treated as realised only to the extent that the objectives of the Business Plan are achieved by the end of 2012. Considering the related tax of EUR 0.8 million, such result is equal to EUR 11.6 million and is comparable with that of the previous financial year which included the net capital gain at consolidated level, earned on the disposal of the 29.72% stake held in Anima SGRp.A., of approximately EUR 119.4 million.
Parent Company Profit for the period
Adding the operating profit after tax to the extraordinary profit and minority interest, the Parent company profit for the year 2008 is equal to EUR 63.1 million.
At 31 December 2008, the Group’s distribution network had reached a total of 161 branches, 13 units more than the previous year, whilst the headcount was 1,774 staff, an increase of 106 units, equal to 6.4%, compared to the figure of the comparative period.
Please note that the securities portfolio at the end of the financial year did not include any toxic assets and, as regards the exposure to the Lehman risk, the figures show the following:
- a debenture carried at EUR 0.1 million;
- a debt exposure generated by a derivative with a negative value of EUR 0.3 million;
- no interbank deposits.
PROPOSAL FOR THE ALLOCATION OF THE NET PROFIT SHOWN IN THE DRAFT FINANCIAL STATEMENTS OF THE PARENT COMPANY
The Board of directors will recommend that the Shareholders’ Meeting approves the distribution of a dividend of EUR 0.105 for each of the 117,000,000 ordinary shares and a dividend of EUR 0.126 for each of the 13,202,000 savings shares.
The profit allocation proposal, if approved, will allow the allocation of EUR 51.6 million to equity reserves.
In accordance with the Stock Exchange schedule, the dividend will be paid on 7 May 2009. Conversely, for listing purposes, the dividend registration date will be on 4 May 2009.
Please find attached the reclassified Consolidated Balance Sheet and Income Statement as well as the Balance Seet and Income Statement of the Parent Company Banco di Desio e della Brianza S.p.A.
The Consolidated financial statements and the draft Parent company’s financial statements are audited by PricewaterhouseCoopers S.p.A. whose audit procedures are currently being completed.
Desio, 24 march 2009
BANCO DI DESIO E DELLA BRIANZA S.p.A.
The Manager in charge of drawing up the company accounting documents hereby declares, pursuant to art. 154-bis, subsection 2 of Legislative Decree no. 58/1998 – the Consolidated Financial Act, that the accounting information provided herein matches the information reported in the company’s documents, books and accounting records.
Il Dirigente preposto alla redazione
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