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 2010 CONCURRENTLY IT APPROVED THE MERGER OF 100% OF “Banco Desio Toscana S.p.A.” and “Banco Desio Veneto S.p.A” INTO THE PARENT COMPANY
- INCREASE IN LOANS (+ 5.1% with special support to families and SMEs through mortgages and personal loans) AND TOTAL DEPOSITS (+1.0%)
- CONTINUED STRENGTHENING OF SHAREHOLDERS’ EQUITY (+3.4%); Tier 1 and Core Tier 1 increase to 11.1%
- FURTHER EXPANSION OF A DISTRIBUTION NETWORK (6 new branches, bringing the total number to 175)
- OPERATING PROFIT UP (+ 31.5%, accompanied by a lesser impact on adjustments to loans, though the ratio of total value adjustments and total loans to customers remains unchanged)
- NET PROFIT IS STEADY at EUR 52.6 million
- PROPOSED DIVIDEND UNCHANGED COMPARED WITH THE PREVIOUS YEAR:
EUR 0.105 per ordinary share
EUR 0.126 per savings share
BALANCE SHEET FIGURES FOR 2010
KEY CONSOLIDATED FIGURES AS AT 31 DECEMBER 2010
Total deposits from customers EUR 18.51 billion (+1.0%) (1)
of which direct deposits EUR 6.91 billion
Net loans to customers EUR 6.48 billion (+5.1%)
Shareholders’ equity pertaining to the Parent Company EUR 783.0 million (+3.4%) (2)
Tier 1 and Core Tier 1 11.1% (previously 10.4%)
Net operating profit EUR 38.2 million
Parent Company Profit for the period EUR 52.6 million
KEY FIGURES IN THE INDIVIDUAL FINANCIAL STATEMENTS OF THE PARENT COMPANY AS AT 31 DECEMBER 2010
Total deposits from customers EUR 14.96 billion (+1.1%)(1)
of which direct deposits EUR 5.35 billion
Net loans to customers EUR 4.89 billion (+4.3%)
Shareholders’ equity EUR 754.4 million (+3.2%)(2)
Tier 1 and Core Tier 1 20.0% (previously 18.3%)
Net operating profit EUR 33.9 million
Profit for the period EUR 49.1 million
(1) not including depositary bank assets:
(2) including profit for the period
The Board of Directors of the Parent Company Banco di Desio e della Brianza S.p.A., met on 22 March 2011 and approved the consolidated and individual financial statements as at 31 December 2010.
The Board previously resolved to convene the Ordinary Shareholders’ Meeting in first call on 28 April 2011, 11.00 am, at the Desio offices, and 29 April 2011, at the same time and in the same place, in second call.
Consolidated balance sheet data
Total customer assets under management increased as at the year-end to roughly EUR 18.5 billion, up by EUR 0.2 billion compared to the previous year, or a 1% rise. The balance of direct deposits amounted to EUR 6.9 billion, posting an annual drop of 4.5% or approximately EUR 0.3 billion, attributable to decreased amounts due to customers of EUR 0.4 billion (mainly due to lower liquidity of institutional customers/the depositary bank) which increased the outstanding securities and financial liabilities measured at fair value by EUR 0.1 billion. Conversely, indirect deposits increased by EUR 0.5 billion over the 12 months to reach 4.6% of the previous balance or EUR 11.6 billion; the deposits from “ordinary” customers increased to EUR 8.4 billion posting a EUR 0.2 billion growth of 2.8%, with the contribution from the administered as well as the managed savings areas despite the difficult financial environment, while for institutional customers there was an increase of approximately EUR 0.3 billion
compared to the balance last year, net of the volumes involving depositary bank “servicing,” of 9.7%.
The total value of loans to customers amounted to approximately EUR 6.5 billion, an increase of EUR 0.3 billion or 5.1% of the 2009 figure, attributable to medium/long-term loans, particularly mortgage loans.
Total Group financial assets stood at EUR 1 billion, an increase of approximately EUR 0.9 billion compared to the figure in the previous year.
The net interbank position improved by approximately EUR 0.1 billion, compared with approximately EUR 0.8 billion the previous year.
Shareholders’ equity, including profit for the year, amounted to EUR 783 million, an annual rise of EUR 25.7 million over the final figure for 2009.
In terms of the consolidated capital ratios at 31 December 2010, calculated in accordance with the supervisory regulations in force, Tier 1 and Core Tier 1 stood at 11.1% and Tier 2 at 12.5%, up compared to the previous year.
Dati economici consolidati
The year closed with a profit for the period pertaining to the Parent Company of EUR 52.6 million, or EUR 0.9 million lower than in the previous year, (-1.7%) which had the benefit of higher non-recurring results net of taxes (EUR 9.4 million).
The performance of the main items in the reclassified Income Statement showed the following:
The total balance consisting of items typical of operations amounted to EUR 341 million at the end of the year, down by EUR 3 million compared to last year or a 0.9% drop.
At EUR 184.3 million and 54.1% of the total, net interest income was down by EUR 8.4 million (-4.4%) as were profit/loss on trading, hedging and disposal/repurchase of financial assets and liabilities measured at fair value by EUR 0.8 million, the profits from investments in associated companies by EUR 0.3 million and Other operating income/charges by EUR 0.3 million; on the other hand, there were increases in Net commissions of EUR 4.1 million (+3.3%) and Profit/loss from insurance management of EUR 2.8 million, which partially offset the performance of the previously mentioned items.
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 233.3 million, an annual increase of 3%.
Operating profit/loss at the end of the period amounted to EUR 107.7 million compared to EUR 117.5 million in the comparative period.
Operating profit/loss after tax
The Net adjustments for impairment of loans of EUR 40.4 million (lower than the EUR 60 million the previous year, though the ratio between total value adjustments and total loans to customers remained unchanged), the positive effect of net provisions for risks and charges of EUR 0.6 million and the Income taxes for the period of EUR 29.7 million, led to Operating profit/loss after tax of EUR 38.2 million, up by 31.5% compared to 2009.
Non-recurring operating profit/loss after tax
The non-recurring operating profit amounts to EUR 15.2 million and mainly consists of the partial release of EUR 14.7 million of the allowance which totals EUR 37.8 million that was established at the end of 2008 against the risk of partial revision of the price collected for the disposal of 70% of Chiara Vita S.p.A. by the Parent Company as contractually provided within the company’s business plan (2012). At the end of the previous year, the result was attributable to the capital gain from the disposal by the Parent Company of 21.191% of the share capital of Anima S.G.R.p.A. of EUR 21.9 million (EUR 29.9 million at the individual level), net of the EUR 8 million for consolidation adjustments, which was then adjusted for the relative taxes of EUR 0.4 million, and the effect from the tax redemption of off-book surpluses and the realignment between the tax and statutory values upon first time application of the International Accounting Standards, amounting to a total of EUR 3.2 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 52.6 million for 2010, approximately EUR 0.9 million less than in the previous year (-1.7%), which as indicated above benefited from a EUR 9.4 million non-recurring difference net of taxes.
The distribution network expanded in 2010 as well despite the difficult macroeconomic environment, with the group expanding by six branches to reach 175 branches at the end of the year. There were 1846 employees, down by 38 compared to the total for last year (a 2.1% drop).
Proposed allocation of the net profit of 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 shares.
The proposed allocation of profit, if approved, will allow approximately EUR 35.1 million to be allocated to the equity reserves.
In compliance with the Stock Exchange timetable, the dividend shall be paid on 5 May 2011. The coupon detachment, for security listing purposes, the coupon detachment will instead take place on 2 May 2011.
The schedules relating to the balance sheet and reclassified income statement and of Parent Company Banco di Desio e della Brianza S.p.A. are hereby attached.
The consolidated financial statements and individual financial statements are subject to an audit by PricewaterhouseCoopers S.p.A., which is currently in progress.
MERGER BY INCORPORATION OF 100% OWNED SUBSIDIARIES “BANCO DESIO TOSCANA S.P.A.” AND “BANCO DESIO VENETO S.P.A.” INTO THE PARENT COMPANY
The Parent Company Banco di Desio e della Brianza S.p.A. proceeded to the reorganization of the Group so as to ensure optimal rationalization of the bank networks in relation to its focus on retail banking. On 22 March 2011 the Board of Directors of Banco di Desio e della Brianza approved the merger by incorporation of 100% owned Banco Desio Toscana S.p.A. and Banco Desio Veneto S.p.A. into the Parent Company itself.
It is anticipated that conclusion of the mergers will take place during this year subject to the release of the necessary authorizations by the Supervisory Authority.
Desio, 22 March 2011
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 the Consolidated Law on Finance, the accounting information contained in this press release corresponds to the company’s documents, books and accounting records.