THE BOARD OF DIRECTORS OF PARENT COMPANY “BANCO DI DESIO E DELLA BRIANZA S.P.A.” APPROVED THE CONSOLIDATED FINANCIAL STATEMENTS AND THE INDIVIDUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED AT 31 DECEMBER 2009
- INCREASE IN THE VOLUME OF DEPOSITS (DIRECT + 11.9%, INDIRECT + 4.3%) AND LOANS
(+ 7.9%, with an increase of more than 20% in types of mortgages and personal loans)
- FURTHER STRENGTHENING OF SHAREHOLDERS’ EQUITY (+8.6%); Tier 1 and Core Tier 1
increase to 10.4%
- CONTINUED EXPANSION OF THE DISTRIBUTION NETWORK (8 new branches, +5.0%)
- PROFIT FOR THE PERIOD -15.1% (INCREASE IN ADJUSTMENTS TO LOANS +34.0%)
- PROPOSED DIVIDEND, UNCHANGED COMPARED WITH THE PREVIOUS YEAR
EUR 0.105 per ordinary share
EUR 0.126 per savings share
BALANCE SHEET FIGURES FOR 2009
KEY CONSOLIDATED FIGURES AS AT 31 DECEMBER 2009
Direct deposits from customers EUR 7,234.0 million (+11.9%)
Indirect deposits from ordinary customers EUR 8,140.4 million (+4.3%)
Net loans to customers EUR 6,160.2 million (+7.9%)
Positive net interbank position EUR 756.3 million (+37.7%)
Shareholders’ equity pertaining to the Parent Company EUR 757.4 million (+8.6%) (1)
Tier 1 and Core Tier 1 10.4%
Parent Company Profit for the period EUR 53.5 million (-15.1%)
Total profitability pertaining to the Parent Company EUR 71.8 million (+40.7%) (2)
KEY FIGURES IN THE INDIVIDUAL FINANCIAL STATEMENTS OF THE PARENT COMPANY AS AT 31 DECEMBER 2009
Direct deposits from customers EUR 5,697.6 million (+10.2%)
Indirect deposits from ordinary customers EUR 6,236.8 million (+10.1%)
Net loans to customers EUR 4,686.1 million (+5.1%)
Positive net interbank position EUR 663.0 million (+36.1%)
Shareholders’ equity EUR 731.3 million (+8.9%)
Tier 1 and Core Tier 1 18.3%
Profit for the period EUR 58.1 million (-11.4%)
Total profitability EUR 73.4 million (+42.3%) (2)
(1) including profit for the period;
(2) according to the statement requested by Banca d’Italia (Bank of Italy) as a result of the update to Circular no. 262/2005
The Board of Directors of Parent Company Banco di Desio e della Brianza S.p.A., which met on 25 March 2010, approved the Consolidated financial statements and the Individual financial statements as at 31 December 2009, prepared in conformance with international accounting standards (IAS/IFRS) and the provisions issued by Banca d’Italia with Circular no. 262 of 22 December 2005 and subsequent updates.
The Board previously resolved to convene the Ordinary Shareholders’ Meeting in first call on 29 April 2010, 11.00 am, at the Desio offices, and 30 April 2010, at the same time and in the same place, in second call.
Balance sheet data
Total customer assets under management increased as at the year-end to roughly EUR 25.4 billion, up by EUR 3 billion compared to the previous year, equal to a 13.4% rise, attributable to both direct (+11.9%) and indirect deposits (+14.1%). Direct deposits rose to EUR 7.2 million, up by EUR 0.7 million, while indirect deposits on the whole recorded an increase of EUR 2.2 billion, reaching approximately EUR 18.2 billion; deposits by “ordinary” customers rose by EUR 0.3 billion, the equivalent of a 4.3% rise, attributable to the performance of the asset management sector, partially adjusted by that of the assets under administration sector, despite being affected by the financial crisis, while deposits by "institutional" customers increased by EUR 1.9 billion, mainly due to volumes involving the depositary bank service.
The total value of loans to customers stood at EUR 6.2 billion, with an annual increase of 7.9%, 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 index, determined by the “non-performing loans/ net loans” ratio increased to 1.09%, compared with 0.68% in the previous year and, in any case, remained low and essentially unchanged in comparison to the 1.07% recorded in September 2009.
Total Group financial assets stood at EUR 0.9 billion, an increase of EUR 0.1 billion compared to the figure in the previous year.
The net interbank position improved, showing a positive balance of roughly EUR 0.8 billion, compared with around EUR 0.6 billion at the end of 2008.
Shareholders’ equity, including profit for the period, amounted to EUR 757.4 million, an annual rise of EUR 59.8 million.
In terms of the consolidated capital ratios at 31 December 2009, calculated in accordance with the supervisory regulations in force, Tier 1 and Core Tier 1 stood at 10.4% and Tier 2 at 11.8%, up compared with those in the previous year.
Income statement data
The year closed with a profit for the period pertaining to the Parent Company of EUR 53.5 million, compared to EUR 63.1 million in the previous year, down by 15.1%.
The performance of the main items in the reclassified Income Statement showed the following:
The items typical of operations showed a balance consistent with that of the previous period (-0.1%), standing at EUR 344 million.
The item comprising the profit/loss on trading, hedging and disposal/repurchase of financial assets and liabilities measured at fair value showed an increase of EUR 8.1 million (primarily due to trading activities and the profit on the disposal/repurchase of financial assets available for sale), profits from investments in associated companies amounting to EUR 3.1 million, profit/loss from insurance management totalling EUR 2.8 million and other operating income/charges of EUR 1.5 million recorded an increase; vice-versa, the decrease recorded by net interest income (- 6.9%) and net commissions (-1.2%) brought operating income down by a total of EUR 0.4 million compared with 2008. As regards financial asset investments, among 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 226.5 million, with an annual increase of 6%.
Consequently, operating profit/loss at the end of the period amounted to EUR 117.5 million, down by 10.1%, or EUR 13.1 million.
Operating profit/loss after tax
Net adjustments for impairment of loans together with losses on the disposal or repurchase of loans, equal to EUR 60.3 million (compared to EUR 45.8 million in the previous period), with less of an impact in the second half of the year, net allocations to provisions for risks and charges of roughly EUR 1.8 million, the positive balance of net adjustments for impairment of other financial transactions of EUR 0.1 million and income taxes for the period on current operations of EUR 26.4 million determined an operating profit after tax of EUR 29.1 million, down by 40.8%.
Non-recurring operating profit/loss after tax
Non-recurring operating profit after taxes 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 Public Offer promoted by Banca Popolare di Milano, equal to EUR 21.9 million (equal to EUR 29.9 million at individual Parent Company level) net of EUR 8 million for consolidation adjustments, then adjusted for the related taxes amounting to EUR 0.4 million. In addition, the tax redemption of off-book excesses deducted within the EC tax return framework through the payment of substitute tax in three annual instalments, as provided for under art. 1, paragraph 48 of Law 244/2007, as well as the realignment of differences between statutory and tax values that emerged during the first application of international accounting standards (FTA), deriving from the elimination of amortisation and funds allocated, with the lump sum payment of said substitute tax, as required by art. 15, paragraph 3, letter b) of Law Decree 185/08, had a positive effect on the profit for the period equal to EUR 3.1 million. Non-recurring operating profit after taxes therefore amounted to EUR 24.6 million.
Parent Company Profit (Loss) for the period
By adding operating profit after taxes to non-recurring operating profit and profits pertaining to third parties, the Parent Company Profit (Loss) for the period amounts to EUR 53.5 million, compared with EUR 63.1 million in the previous year, down by 15.1%, despite the increase in adjustments to loans (+34%), which was 2/3 covered by the growth in profits and the wait and see policy adopted with regard to financial assets investments.
It should be pointed out that the total profitability pertaining to the Parent Company at 31 December 2009, based on the concept introduced by revised IAS 1, “the presentation of financial statements”, and in application of the statement requested by Banca d’Italia as a result of the update to circular no. 262/2005, amounted to EUR 71.8 million compared to EUR 51 million in the previous year, taking into consideration the significant capital gain of EUR 17.3 million still latent in the income statement of the year just concluded given it represents an equity reserve.
The country-wide development of the Group’s distribution network increased the number of branches to 169 at 31 December 2009, up by 8 compared with the previous year, while 1,808 staff were employed, up by 34, a rise of 1.9% compared to last year's figure.
PROPOSED ALLOCATION OF NET PROFIT AND THE PARENT COMPANY’S INDIVIDUAL FINANCIAL STATEMENTS
The Board of Directors will propose to the Ordinary Shareholders’ Meeting 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 share.
The proposed allocation of profit, if approved, will allow EUR 44.1 million to be allocated to the equity reserves.
In compliance with the Stock Exchange timetable, the dividend shall be paid on 6 May 2010. The coupon detachment, for security listing purposes, will instead take place on 3 May 2010.
The tables relating to the consolidated Balance Sheet, consolidated reclassified Income Statement and the consolidated Statement of Comprehensive Income are attached as well as those of Parent Company Banco di Desio e della Brianza S.p.A..
The consolidated financial statements and individual financial statements are subject to an audit by PricewaterhouseCoopers S.p.A., which is currently in progress.
Desio, 25 March 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, paragraph 2, of 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