Banca dell'Artigianato e dell'Industria: Draft financial statements as at 31.12.06 approved
Positive development of economic performance: Gross profit from operations of € 1.3 million
Constant growth in main asset items: Direct deposits of € 365 million (+33.5% compared to 31.12.2005), indirect deposits of € 107.7 million (+45.8% compared to 31.12.2005), loans to customers of € 483 million (+45.2% compared to 31.12.2005)
| (figures shown in €/000) | 31.12.2006 | 31.12.2005 | Change |
| Interest margin | 14,169 | 8,876 | + 59.6% |
| Brokerage margin | 19,060 | 12,254 | + 55.5% |
| Net result of financial operations | 14,973 | 9,420 | + 58.9% |
| Gross operating profit | 1,304 | - 793 | |
| Profit for the year | 174 | - 19 | |
| (figures shown in €/000) | 31.12.2006 | 31.12.2005 | Change |
| Direct deposits | 364,925 | 273,284 | + 33.5% |
| Indirect deposits | 107,730 | 73,869 | + 45.8% |
| Overall deposits | 472,655 | 347,153 | + 36.2% |
| Loans to customers | 482,956 | 332,552 | + 45.2% |
Brescia, 20 February 2007 - The Board of Directors of Banca dell'Artigianato e dell'Industria, a member of the Credito Valtellinese Group, met today under Chairman Renato Gnutti to examine and approve the draft financial statements as at 31 December 2006, which show constant growth of equity aggregates and a correlated positive trend in income indicators, confirming the validity of the bank's strategy of expansion as part of the development project in the Veneto region and the gradual reinforcement in the Brescia area.
In 2006 six new branches were inaugurated, two in the Brescia area, three in the province of Verona, and one in the province of Vicenza, bringing the number of the bank's total branches up to 21. All branches are shaped by a structure with a strong market orientation in line with the common business model of the Credito Valtellinese Group, which aims to combine size with flexibility and the capacity to exploit the competitive advantage resulting from the proximity to the bank's roots in full.
Turning to the main equity aggregates as at 31 December 2006, direct deposits were up 33.5% to € 364.9 million, versus € 273.3 million in FY 2005. Indirect deposits, comprising assets under management and administration, totalled € 107.7 million, up 45.8% from € 73.9 million at the end of 2005. Assets under management rose sharply, climbing from € 41.3 million in 2005 to € 60.6 million in 2006, a 46.8% increase. Total deposits consequently stood at € 472.7 million, up 36.2% from € 347.2 million as at 31.12.2005.
Loans to customers showed a marked positive trend, reaching € 483 million (up 45.2% year-on-year), confirming that the BAI's core business clearly lies in its ability to provide financial support to a group of customers consisting largely of families and small and medium enterprises.
The evolution of the main income indicators is in line with the foregoing. The interest margin stood at € 14.2 million, up 59.6% from 31.12.2005, mainly due to the significant increase in the volume of banking activity. The significant improvement in the interest margin and the positive trend in net commissions on services, which were up 41% year-on-year to total € 4.7 million, lead to a brokerage margin of € 19.1 million, up 55.5% compared to the same period of FY 2005.
Net adjustments to financial assets, mainly receivables, for a total value of € 4.1 million establish the net result of financial operations at € 15 million, an increase of 59% compared to 2005.
Operating costs rose from € 10.2 million at the end of December 2005 to € 13.7 million, an increase of 33.8% that is essentially to be attributed to the increased weight of costs related to the bank's geographical expansion. In greater detail, personnel costs rose from € 5 million to € 7.2 million, whereas administrative expenses stood at € 5.2, up from € 4 million in 2005.
In 2006 the bank turned a gross operating profit of € 1.3 million, compared to a loss of € 0.8 million at the end of 2005, pointing to the bank's capacity to bear the planned increase in size with the greater volume of banking activity.
After an overall total of € 1.1 million in taxes, net profit stood at € 174 thousand.
The meeting of the bank's shareholders called to approve the financial statements has been convened in Brescia at the Park Hotel Ca' Noa at the address Via Triumplina 66 on 26 March 2007 at 5:30 PM.
For further information, contact:
Tiziana Camozzi
Institutional Communication Service
Telephone 0280.637.471
Email: camozzi.tiziana@creval.it
Vittorio Pellegatta
Management Administration
Telephone 0280.637.365
Email: pellegatta.vittorio@creval.it
Accounting schedules: reclassified balance sheet and income statement
One should note that review is still underway by the external auditing firm.
