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 2011
- INCREASED LOANS (+1.6%, offering specific support to households and SMEs through different types of mortgages and personal loans) AND DIRECT DEPOSITS (+2.0%)
- CONTINUED EXPANSION OF THE DISTRIBUTION NETWORK (10 new branches, bringing the total number of branches to 185)
- HIGHER NET OPERATING PROFIT (+7.8%)
- NET PROFIT of EUR 44.9 million (previously EUR 49.2 million), with a lower contribution of EUR 10.5 million of profit from non-recurring operations
- PROPOSED DIVIDEND, UNCHANGED COMPARED WITH THE PREVIOUS YEAR:
EUR 0.105 per ordinary share
EUR 0.126 per savings share
- STRONG CAPITAL SOLIDITY (Shareholders' Equity EUR 770.9 million); Tier 1 and Core Tier 1 at 10.7%
BALANCE SHEET FIGURES FOR 2011
KEY CONSOLIDATED FIGURES AS AT 31 DECEMBER 2011
Direct deposits EUR 7.04 billion (+2.0%)
Indirect deposits EUR 10.82 billion (-6.7%)
Net loans to customers EUR 6.58 billion (+1.6%)
Shareholders’ equity pertaining to the Parent Company EUR 770.9 million (-1.5%) (1)
Tier 1 and Core Tier 1 10.7% (previously 11.0%)
Net operating profit EUR 41.2 million (previously EUR 38.2 million)
Parent Company profit for the period EUR 44.9 million (previously EUR 52.6 million), with a lower contribution of profit from non-recurring operations
KEY FIGURES IN THE INDIVIDUAL FINANCIAL STATEMENTS OF THE PARENT COMPANY AS AT 31 DECEMBER 2011 (2)
Direct deposits EUR 6.06 billion (+0.7%)
Indirect deposits EUR 9.94 billion (-5.9%)
Net loans to customers EUR 5.78 billion (+0.8%)
Shareholders’ equity EUR 745.7 million (-0.3%)(1)
Tier 1 and Core Tier 1 17.0% (previously 20.0%)
Net operating profit EUR 35.5 million (previously EUR 34.0 million)
Profit for the period EUR 43.2 million (previously EUR 49.2 million), with a lower contribution of profit from non-recurring operations
(1) substantially attributable to the decreases in prices of government bonds and the effect of the mergers of Banco Desio Toscana S.p.A. and Banco Desio Veneto S.p.A. into Banco di Desio e della Brianza S.p.A.;
(2) The figures are compared with those of the “aggregated” situation pursuant to the note preceding the attached Individual Statements.
The Board of Directors of Parent Company Banco di Desio e della Brianza S.p.A., which met on 20 March 2012, approved the consolidated financial statements and the draft individual financial statements as at 31 December 2011.
The Board previously resolved to convene the Ordinary Shareholders’ Meeting in first call on 26 April 2012, 11:00 am, at the Desio offices, and 27 April 2012, at the same time and in the same place, in second call.
DConsolidated balance sheet data
Total customer assets under management amounted to approximately EUR 17.9 billion at the end of the year, with an increase of 2% in direct deposits and a decrease of 6.7% in indirect deposits, particularly affected by the international economic-financial crisis which had a significant influence on the price listings of securities and resulted in a decline of 3.5% in the global value of deposits.
The balance of direct deposits exceeded EUR 7 billion, up by approximately EUR 0.1 billion, due to the increase in outstanding securities and financial liabilities measured at fair value, partly adjusted by the performance of amounts due to customers.
Conversely, indirect deposits on the whole recorded a decrease of approximately EUR 0.8 billion in the twelve months, coming to approximately EUR 10.8 billion. Deposits by ordinary customers came to approximately EUR 7.7 billion, with a year-on-year downturn of approximately EUR 0.6 billion, equal to 7.7%, which concerned both the assets under administration and the asset management sectors. However, the asset management sector reported an increase in “bancassurance” assets, while deposits by institutional customers contracted by approximately EUR 0.1 billion, equal to 4.2%.
Lending to customers continued its growth trend, providing evidence of the Group's specific, extensive commitment to concretely supporting households and SMEs in the continuing difficult economic and financial scenario. The total value of loans to customers rose to approximately EUR 6.6 billion, a year-on-year increase of approximately EUR 0.1 billion, equal to 1.6%.
The Group’s total financial assets reached approximately EUR 1 billion, compared to EUR 1 recorded at the end of the previous year.
The net interbank position was positive and more or less at break-even.
Shareholders’ equity, including profit for the period, amounted to EUR 770.9 million, compared to EUR 783 million.
for 2010. the slight decrease is substantially attributable to the decreases which, in the last part of 2011, hit government bonds in the portfolio, penalised by the BTP-Bund spread and due to the effect of the mergers of subsidiaries Banco Desio Toscana S.p.A. and Banco Desio Veneto S.p.A. into Banco di Desio e della Brianza S.p.A.
In terms of the consolidated capital ratios at 31 December 2011, calculated in accordance with the supervisory regulations in force, Tier 1 and Core Tier 1 stood at 10.7% and Tier 2 at 10.7%, compared 11.0% in the previous year.
Consolidated income statement data
The year closed with a Parent Company profit for the period of EUR 44.9 million, marking a fall of EUR 7.7 million compared to the figure recorded for the previous year (-14.6%), which however benefitted from an additional EUR
10.5 million relating to profit from non-recurring operations after tax.
The performance of the main items in the reclassified Income Statement showed the following:
The balance of this aggregate, comprised of items typical of operations, rose to EUR 356.6 million at the end of the year, increasing by EUR 15.6 million on the previous year, corresponding to 4.6%. The positive performance is attributable to net interest income which, amounting to EUR 205.6 million, constitutes 57.6% of the aggregate and increased by EUR 21.2 million (+11.5%), profit/loss from insurance management, up by EUR 2.2 million on the previous year (+20.9%) and the contribution of other operating income/charges, up by EUR 2.9 million on the balance of the previous year (+63.9%). Vice versa, these increases in the overall balance were partially adjusted by the lower contributions from net commissions of EUR 7.5 million (-5.8%), profit/loss on trading, hedging and disposal/repurchase of loans, financial assets and liabilities of EUR 2.6 million (both items particularly affected by the financial-economic trend) and dividends and similar income as well as profits from investments in associated companies for a total of approximately EUR 1 million.
Operating charges, which include personnel expenses, other administrative expenses, net adjustments to property, plant and equipment and intangible assets, showed a total balance of around EUR 236.7 million, up EUR 3.4 million, compared to 2010, corresponding to 1.5%.
The operating profit/loss at the end of the period consequently amounted to EUR 119.9 million, compared to EUR 107.7 million of the previous period..
Operating profit (loss) after tax
Net adjustments for impairment of loans, amounting to EUR 39 million (EUR 40.3 million at the end of 2010), losses on disposal or repurchase of loans of EUR 0.6 million, net allocations to provisions for risks and charges of EUR 3.1 million, as well as the impact of income taxes for the period on current operations of EUR 36.1 million, determined an operating profit after tax of EUR 41.2 million, up by approximately EUR 3 million compared to the total for the previous year, corresponding to 7.8%.
Profit from non-recurring operations after tax
Profit from non-recurring operations after tax amounted to EUR 4.7 million, and consists of EUR 7.7 million from the partial release of the allocation 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 term of the company's business plan (2012), and EUR 3 million from the adjustments to the investment in Credito Privato Commerciale S.A. by subsidiary Brianfid-Lux S.A. The balance for the previous year mainly referred to the aforementioned partial release of the allocation established at the end of 2008, but for an amount of EUR 14.7 million.
Parent Company Profit (Loss) for the period
By adding the operating profit after tax to profit from non-recurring operations and minority interest, the Parent Company profit for 2011 amounted to EUR 44.9 million, marking a fall of EUR 7.7 million compared to the figure recorded for the previous year (-14.6%), which however benefitted from an additional EUR 10.5 million relating to profit from non-recurring operations after tax.
Despite the difficult macroeconomic scenario, the expansion of the distribution network also continued in 2011, allowing the Group to reach a total of 185 branches by the end of the year, a year-on-year increase of 10 branches.
There were 1,875 employees, up by 29 compared to the previous year's total.
Proposed allocation of net profit from the Parent Company’s draft 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, unchanged from the previous year.
The proposed allocation of profit, if approved, will allow approximately EUR 29.3 million to be allocated to the equity reserves.
In compliance with the Stock Exchange timetable, the dividend shall be paid on 10 May 2012. The coupon detachment, for security listing purposes, will instead take place on 7 May 2012.
The tables relating to the consolidated Balance Sheet and the consolidated reclassified Income Statement are attached as well as those of Parent Company Banco di Desio e della Brianza S.p.A.
The consolidated financial statements and the draft individual financial statements are subject to an audit by PricewaterhouseCoopers S.p.A., which is currently in progress.
Desio, 20 March 2012
BANCO DI DESIO E DELLA BRIANZA S.p.A.