THE BOARD OF DIRECTORS OF PARENT COMPANY “BANCO DI DESIO E DELLA BRIANZA S.P.A.”
APPROVED THE CONSOLIDATED INTERIM REPORT AS AT 31 MARCH 2011
- INCREASE IN LOANS (+6.1% on a yearly basis, with constant support to families and SMEs, in particular through mortgages) AND TOTAL DEPOSITS (+1.1% on a yearly basis)
- FURTHER STRENGHTENING OF SHAREHOLDERS’ EQUITY (+3.1% on a yearly basis); Tier1 and Core Tier 1 increase to 11.4%
- CONTINUED EXPANSION OF THE DISTRIBUTION NETWORK (6 new openings on a yearly basis, bringing the total number of branches to 177)
- OPERATING PROFIT UP (+10.9% on a yearly basis, accompanied by a lesser impact on adjustments to loans)
- CONSOLIDATED NET PROFIT FOR THE YEAR PERTAINING TO THE PARENT COMPANY EUR 23.6 million
KEY CONSOLIDATED FIGURES AS AT 31 MARCH 2011 (1)
Total deposits from customers EUR 18.51 billion (+1.1%) (2)
of which Direct Deposits EUR 6.75 billion
Net loans to customers EUR 6.56 billion (+6.1%)
Shareholders’ equity pertaining to the Parent Company EUR 810.4 million (+3.1%) (3)
Tier1 and Core Tier1 11.4 % (previously 11.0%)
Net operating profit EUR 16.1 million
Consolidated net profit for the year pertaining to the Parent Company EUR 23.6 million
(1) changes over last period at 31 March 2010;
(2) not including depositary bank assets;
(3) including profit for the period
The Board of Directors of the Parent Company Banco di Desio e della Brianza S.p.A., met on 12 May 2011, approved the Consolidated Interim Report as at 31 March 2011, drawn up pursuant to art. 154-ter of Legislative Decree 58/1998 and prepared in accordance with applicable international accounting standards recognised in the European Union according to the EU Regulation no.1606 of 19 July 2002 (and, in particular, IAS 34 – Interim financial statements), as well as the Bank of Italy's provisions with Memorandum no. 262 of 22 December 2005 and subsequent amendments.
Consolidated balance sheet data
Total customer assets under management at the end of the first quarter amounted to EUR 18.5 billion, increasing by EUR 0.2 billion over the previous period, or a 1.1% rise.
The balance of direct deposits as at 31 March 2011 amounted to EUR 6.7 billion, decreasing by 0.9%, equal to EUR 0.1 billion, over the last balance, attributable to decreased amounts due to customers because of lower liquidity of institutional customers/the depositary bank. Indirect deposits generally increased by EUR 0.3 billion, equal to 2.3% of the previous balance, reaching EUR 11.8 billion. The growth is attributable both to the deposits from “ordinary” customers, connected to the positive trend of the administered savings area, and to deposits from institutional customers net of the volumes involving depositary bank “servicing”.
The total value of loans to customers as at 31 March 2011 reached EUR 6.6 billion, increasing by 6.1% over the previous period, highlighting the Group’s constant support to families and SMEs in a difficult economic and financial context, in particular through mortgages.
The credit risk ratio calculated on net non performing loans/ net loans increased to 1.43%, compared to 1.21% of the first quarter of the previous financial year, as a natural consequence of the economic situation, still showing quite a low figure.
Total Group financial assets stood at EUR 0.9 billion, increasing by EUR 0.1 billion over the final figure of the previous period.
The net interbank position improved by EUR 0.1 billion, compared to EUR 0.4 billion of the end of the first quarter of the previous financial year.
Shareholders’ equity, including profit for the year, amounted to EUR 810.4 million, increasing by EUR 24.6 million over the figure of the first quarter of 2010.
The consolidated capital ratios as at 31 March 2011, calculated in accordance with the supervisory regulations in force, showed a further increase; Tier 1 and Core Tier 1 stood at 11.4% while Tier 2 reached 12.7%.
Consolidated income statement data
The first quarter closed with a profit for the period pertaining to the Parent Company of EUR 23.6 million, compared to EUR 29 million of the previous year.
The performance of the main items in the reclassified Income Statement showed the following:
The income typical of operations shows a similar trend to the income of the previous period (-1.5%), standing at EUR 82.8 million.
Particularly noteworthy are increases of EUR 1.4 million in net interest income (+3.0%), of EUR 1 million in Other operating income/charges and of EUR 0.6 million of Profit/loss from insurance management; conversely, other items decreased, in particular Net commissions by EUR 2.5 million (-8.3%, mainly because of a stop in the Parent Company’s depositary bank activity), hedging and disposal/repurchase of financial assets and liabilities measured at fair value by EUR 1.6 million (attributable to profit from disposal/repurchase of available-for-sale financial assets), as well as the profits from investments in associated companies by EUR 0.1 million.
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 53.7 million, decreasing by 2.0%.
Operating profit/loss after tax
The operating profit/loss at the end of the period consequently amounted to EUR 29.1 million, compared to EUR 29.3 million of the previous period; the Net adjustments for impairment of loans of EUR 3.3 million (EUR 6.4 million in the first quarter of the previous year), the positive balance of the net adjustments for impairment of other financial transactions for EUR 0.1 million and net provisions for risks and charges for EUR 0.1 million, as well as the Income taxes for the period of EUR 9.7 million, led to Operating profit/loss after tax of EUR 16.1 million, up by 10.9%.
Non-recurring operating profit/loss after tax
The non-recurring operating profit amounted to 7.7 million and mainly consists of the partial release 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). Conversely, at the end of the previous period, the balance, still consisting of the partial release of the aforementioned allowance, amounted to EUR 14.6 million.
Parent Company profit (Loss) for the period
By adding the operating profit after taxes to non-recurring operating profit after taxes, the Parent Company Profit (Loss) for the period amounts to EUR 23.6 million, net of minority interest for EUR 0.2 million. The result shows EUR 5.4 million less over the previous year (-18.7%), which, however, benefited from EUR 6.9 million more relating to the non-recurring profit/loss after taxes.
The territorial development of the Group’s distribution network led to a total number of 177 branches at the end of the first quarter of the year, with a rise of six units over the final figure at the end of March of the previous year; whereas there are 1862 employees, up by 21 compared to the last period.
The schedules relating to the consolidated Balance Sheet and Reclassified Income Statement as at 31 March 2011 are hereby attached.
Desio, 12 maggio 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.