THE ORDINARY SHAREHOLDERS’ MEETING OF PARENT COMPANY “BANCO DI DESIO E DELLA BRIANZA S.P.A.” APPROVED THE INDIVIDUAL FINANCIAL STATEMENTS AS AT 31 DECEMBER 2009
THE INTERNATIONAL AGENCY FITCH RATINGS CONFIRMS ITS “A” RATING
- INCREASE IN THE VOLUME OF DEPOSITS AND LOANS;
- FURTHER STRENGTHENING OF SHAREHOLDERS’ EQUITY;
- CONTINUED EXPANSION OF THE DISTRIBUTION NETWORK;
- PARENT COMPANY INDIVIDUAL PROFIT FOR THE PERIOD -11.4%
(INCREASE IN ADJUSTMENTS TO LOANS +39.5%);
- DIVIDEND (UNCHANGED COMPARED TO THE PREVIOUS YEAR):
EUR 0.105 per ordinary share
EUR 0.126 per savings share
The Board of Directors of Banco di Desio e della Brianza S.p.A., which met on 29 April 2010, approved the Financial Statements as at 31 December 2009, drawn up pursuant to IAS/IFRS international accounting standards and to the Bank of Italy’s provisions set out in Circular no. 262 of 22 December 2005, as amended.
The international rating agency Fitch Ratings issued confirmation today of the ratings previously assigned to the Bank:
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KEY FIGURES OF THE PARENT COMPANY INDIVIDUAL FINANCIAL STATEMENTS 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%)
Comprehensive income EUR 73.4 million (+42.3%) (2)
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%)
Comprehensive income pertaining to the Parent Company EUR 71.8 million (+40.7%) (2)
(1) including profit for the period;
(2) according to the statement requested by the Bank of Italy in the update to Circular no. 262/2005
With regard to overall Group performance, a summary of the consolidated financial statements contained in the Press Release issued on 25 March 2010 following Board of Directors' approval is provided below.
Balance sheet data
Total customer assets under management increased as at 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 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 indicator, determined by the “non-performing loans/net loans” ratio increased to 1.09%, compared to 0.68% in the previous year, in any event remaining 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 previous year’s figure.
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, a year-on-year increase of EUR 59.8 million.
In terms of the consolidated capital ratios as 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 of 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 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 profit from 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, 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 226.5 million, with a year-on-year 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 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. In addition, the tax redemption of off-balance sheet excess deducted within the EC tax return framework through the payment of substitute tax in three annual instalments, as provided for under art. 1, subsection 48 of Italian Law 244/2007, as well as the realignment of differences between statutory and tax values emerging on first-time application (FTA) of international accounting standards, deriving from the derecognition of amortisation and provisions, with the lump sum payment of said substitute tax, as required by art. 15, subsection 3, paragraph b) of Italian Law Decree 185/08, had a positive EUR 3.1 million effect on profit for the period. 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 tax to non-recurring operating profit and profits pertaining to minority interests, 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 comprehensive income pertaining to the Parent Company as at 31 December 2009, 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 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 recognised in the latest income statement as an equity reserve.
The country-wide development of the Group’s distribution network increased the number of branches to 169 as 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.
ALLOCATION OF NET PROFIT OF THE PARENT COMPANY’S INDIVIDUAL FINANCIAL STATEMENTS
The Shareholders’ Meeting has approved the allocation of a EUR 0.105 dividend for each of the 117,000,000 ordinary shares and a EUR 0.126 dividend for each of the 13,202,000 savings shares, allowing allocation of a total EUR 44.1 million 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.
OTHER SHAREHOLDERS’ MEETING RESOLUTIONS
The Shareholders’ Meeting also approved the annual Group remuneration policy, drafted in compliance with supervisory instructions on corporate governance.
SUBSEQUENT RESOLUTIONS OF THE BOARD OF DIRECTORS
At its meeting held on conclusion of the Shareholders’ Meeting, the Board of Directors resolved to confirm membership of the Executive Committee for 2010 as follows: Agostino GAVAZZI, Guido POZZOLI, Stefano LADO, Nereo DACCI.
The Consolidated financial statements and the draft individual financial statements were audited by PricewaterhouseCoopers S.p.A. who expressed a positive opinion.
The tables relating to the Balance Sheet, reclassified Income Statement and the Statement of Comprehensive Income of the individual Parent Company Banco di Desio e della Brianza S.p.A. financial statements and the Group consolidated financial statements are attached.
Desio, 29 April 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