THE BOARD OF DIRECTORS OF THE PARENT COMPANY “BANCO DI DESIO E DELLA BRIANZA S.P.A.” APPROVED THE CONSOLIDATED INTERIM REPORT ON OPERATIONS AS OF 31 MARCH 2010
- NET PROFITS STABLE (+0.8% on an annual basis, notwithstanding the reduced contribution of non-recurring operating income)
- INCREASE IN THE VOLUME OF DEPOSITS AND LOANS (+8.8% on an annual basis, with an increase greater than 20% of the categories of personal mortgages and loans) AND OF THE VOLUME OF DEPOSITS AND LOANS (DIRECT +2.3%. INDIRECT +1.3% on an annual basis)
- ADDITIONAL STRENGTHENING OF SHAREHOLDERS’ EQUITY (+8.1% on an annual basis);
Tier1 and Core Tier1 rise to 11.0%
- CONTINUED EXPANSION OF THE DISTRIBUTION NETWORK (8 new branch offices, +4.9% on an annual basis)
CONSOLIDATED FIGURES AS OF 31 MARCH 2010 (1)
Direct deposits from customers EUR 6,807.4 million (+2.3%)
Indirect deposits from ordinary customers EUR 8,363.9 million (+2.7%)
Net loans to customers EUR 6,188.9 million (+8.8%)
Positive net interbank position EUR 392.0 million (-53.8%)
Shareholders’ equity pertaining to the Parent Company EUR 785.8 million (+8.1%) (2)
Tier1 and Core Tier1 11.0%
Profit for the period pertaining to the Parent Company EUR 29.0 million (+0.8%)
Comprehensive income pertaining to the Parent Company EUR 30.8 million (+4.2%)
(1) variations compared to the data of the comparison period as of 31 March 2009;
(2) including profit for the period;
The Board of Directors of the Parent Company Banco di Desio e della Brianza S.p.A. meeting on the date of 13 May 2010, approved the Consolidated Interim Report as of 31 March 2010, prepared pursuant to Art. 154-ter of Italian Legislative Decree 58/1998 and drawn up in accordance with the applicable international accounting recognized in the European Community pursuant to the Community Regulation no. 1606 of 19 July 2002 (and in particular IAS 34 - Interim Financial reporting), and to the Bank of Italy’s provisions set out in Circular no. 262 of 22 December 2005, as amended.
Key figures as of 31 March 2010
Balance sheet data
Total customer assets under management increased as at first quarter to roughly EUR 25.2 billion, up by EUR 0.4 billion compared to the same period of the previous year, or equal to a 1.5% rise, attributable to both direct (+2.3%)
and indirect deposits (+1.3%). Direct deposits rose to EUR 6.8 billion, up by EUR 0.2 billion, while indirect deposits reached approximately EUR 18.4 billion; with this item as well experiencing an increase of approximately EUR 0.2 billion, substantially attributable to deposits by ordinary customers but also to the performance of the asset management sector as well as that of the assets under administration sector, despite being affected by the financial crisis.
The total value of loans to customers stood at EUR 6.2 billion, with an annual increase of 8.8% compared to the previous year, further proof of the Group’s support to families and SMEs in the difficult economic and financial situation, attributable to the increase of more than 20% in types of mortgages and personal loans.
The credit risk indicator, determined by the non-performing loans/net loans ratio increased to 1.21%. compared to 0.94% in the first quarter of the previous year, as a natural consequence of the economic climate, always displaying in any case a contained value.
Total Group financial assets stood at approximately EUR 1 billion, with an increase of EUR 0.2 billion compared to the figures of the previous year’s statement of the same period.
The net interbank position improved by roughly EUR 0.4 billion, compared with around EUR 0.8 billion registered at the end of the first quarter of the previous year.
Shareholders’ equity, including profit for the period, amounted to EUR 785.8 million, an increase of EUR 58.9 million over the same period of the previous year.
The equity ratios consolidated on 31 March 2010 and calculated in accordance with current supervisory regulations, resulted as growing even further; with Tier 1 and Core Tier 1 rising to 11.0% whilst Tier 2 reached 12.5%.
Income statement data
The first quarter of the year closed with a profit for the period pertaining to the Parent Company of approximately EUR 29 million, compared to approximately EUR 28.8 million in the previous year.
The performance of the main items in the reclassified Income Statement showed the following:
The items typical of operations showed a balance substantially consistent with that of the previous period (-0.8%), reaching EUR 84 million.
Particularly noteworthy are the increases in net commissions amounting to EUR 3.4 million (12.6%), profits from insurance management EUR 2.8 million (77.3%). The item comprising profit/loss on trading, hedging and disposal/repurchase of financial assets and liabilities measured at fair value showed an increase of EUR 0.9 million (primarily due to trading activities and profits from the disposal/repurchase of financial assets available for sale), and profits from investments in associated companies amounting to EUR 0.1 million and other operating income/charges of EUR 0.2 million. On the contrary decreases were recorded for net interest income of EUR 4.7 million (-9.4%) which particularly felt the effects of the difficult economic situation being experienced by the markets. As regards financial asset investments, amongst other things, a wait and see policy was adopted.
Total operating charges, which include personnel expenses, other administrative expenses and net adjustments to property, plant and equipment and intangible assets, showed a balance of EUR 54.7 million, with an increase of 4.8%.
Operating profit/loss after tax
The operating profit/loss at the end of the financial period consequently results as being equal to EUR 29.3 million, with a decrease of 5.2% amounting to EUR 1.6 million; net value adjustments for impairment of loans of EUR 6.4 million, a reduction of more than 60% compared the previous period. The positive balance of net adjustments for impairment of other financial transactions and the net allocations to provisions for risks and charges, respectively equal to EUR 0.2 million and EUR 0.3 million, as well as the income taxes for the period on current operations of EUR 8.9 million resulted in an operating profit after tax of EUR 14.5 million, with an increase of 102.3%.
Non-recurring operating profit/loss after tax
The non-recurring operating profit/loss after tax was mainly determined at the end of the first quarter of the year by the partial release equal to EUR 14.6 million from the overall fund of EUR 37.8 million set up at the end of 2008 in to deal with a risk of the partial revision of the price collected for the sale of 70% of Chiara Vita S.p.A. by the Parent Company as contractually foreseen at the end of the Company’s industrial plan (2012). The value of release was determined on the basis of the estimate of the substantial achievement of the of the objectives as regards the industrial plan at the end of 2012. At the end of the previous period, the profit after tax was mainly determined by the capital gain collected on the disposal of 21.191% of the share capital of Anima SGRp.A. by the Parent Company, in compliance with the voluntary bid promoted by Banca Popolare di Milano, equal to EUR 21.9 million (EUR 29.9 million at individual Parent Company level) net of EUR 8 million for consolidation adjustments, then adjusted for related taxes amounting to EUR 0.4 million
Parent Company Profit (Loss) for the period
The sum of the operating profit after tax and the non-recurring operating profit after tax therefore determines the profit pertaining to the Parent Company for the period equal to EUR 29 million, net of the profits pertaining to minority interests of EUR 0.2 million. The result is substantially in line with that of the first quarter of the previous year (+0.8%), which however benefited by a greater non-recurring operating profit after tax of EUR 6.8 million.
It should be pointed out that the Comprehensive income pertaining to the Parent Company as of 31 March 2010 is based on the concept introduced by revised IAS 1, “Presentation of financial statements” and in application of the statement requested by the Bank of Italy in the update to Circular no. 262/2005, amounted to EUR 30.8 million compared to EUR 29.6 million in the previous year.
The country-wide development of the Group’s distribution network increased the number of branches to 171 as at the end of the first quarter of the year with a growth of 8 units compared to the report at the end of March of the previous year while 1,841 staff were employed, a rise of 45 persons equal to 2.5% compared to last year's figure.
Desio, 13 May 2010 BANCO DI DESIO E DELLA BRIANZA S.p.A.
The Manager in charge of drawing up the company accounting documents, Piercamillo Secchi hereby declares that pursuant to art. 154-bis, subsection 2, Legislative Decree no. 58/1998 (Consolidated Law on Finance) the accounting information contained in this press release corresponds to the company’s documents, books and accounting records.
Manager in charge of drawing up the company accounting documents