Credito Artigiano: approval of draft financial statement as at 31.12.2004
Summary (figures shown in €/000)
Milan, 1 March 2005 - The Board of Directors of Credito Artigiano, chaired by Mr. Angelo Palma, has examined and approved the draft financial statement as at 31 December 2004, with accounting figures showing a positive trend in primary combined assets and management profitability and pointing to a development process based on firmly rooted, stable growth conditions.
The interest margin, despite overall stability in market rates, stands at 95.4 million euros and shows a 9.7% increase for the year, due to constant growth in brokerage volume which helped make up for the reduction in spread margins.
Under income from services, one notes an increase in net commissions, which came in at 50.3 million euros, up more than 15% over the previous year's figure of 43.6 million. Profits from financial operations amounted to 3.3 million euros, as compared with 2.9 million euros the previous year, and were a determining factor in establishing the brokerage margin.
The brokerage margin stands at 154.4 million euros, rising 10.8% for the year.
Operating costs, which totalled 93.2 million euros, show a 3.5% increase over the previous year's figure of 90.1 million, fairly modest despite the effects of growth policies which were implemented and investments connected in part to updating the IT system in preparation for the introduction of Basel II and the impending application of IAS/IFRS international accounting standards. Specifically, personnel costs are up 7.7%, partly due to the expansion of the network, reaching 45.9 million euros as compared with the previous year's figure of 42.6 million; other administrative costs dropped from 47.5 million euros to 47.3 million euros. Adjustments to fixed assets totalled 9.9 million euros, almost unvaried since the previous year.
The gross operating profit was 51.3 million euros, showing a 30.3% increase as compared to 39.4 million euros.
Provisions and adjustments for receivables totalled 19 million euros, compared to the previous year's figure of 12 million euros. Specifically, net provisions for credit risk totalled 14.7 million euros, as compared with 10.8 million the year before, a 36% increase which reflects the persisting economic downturn and its possible negative impact on credit. Other provisions for risk and expenses amounted to 4.3 million euros, compared to 1.2 million in the previous financial period, and were essentially to offset projected losses in lawsuits, primarily due to bankruptcy revocation risks.
The profit on ordinary operations came in at 32.3 million euros, showing a 17.6% increase for the year.
Taking into account earnings from extraordinary operations, which showed profits of 0.9 million euros (1.2 million in the previous financial period), as well as 14.9 million in taxes (13.2 million the previous year), the net profit stood at 18.3 million euros, up 18.2% over the previous figure of 15.5 million euros.
As at 31 December 2004, total deposits reached 7728 million euros, an 8.5% increase over the previous year's figure of 7129 million euros. Direct deposits from clients came in at 3.610 million euros, up 9% for the year; indirect deposits reached 4128 million euros, an 8.1% increase. Managed assets rose from 1765 million euros to 1891 million, showing a 7.2% growth rate.
The trend in loans to customers was positive and was up 8.8%, amounting to 3069 million euros. The upturn in the mid-to-long-range component was even more noteworthy, with an increase of almost 22%, reaching 1000 million euros as compared with the December 2003 figure of 820 million.
At the Ordinary Shareholders' Meeting scheduled for 4 April 2005, and for 5 April, should a second session be necessary, the Board of Directors will present a proposal for the distribution of a €0.1126 dividend, entirely comprised of profits from the year, for each of the 132,517,760 shares with dividend entitlement starting on 1.1.2004, as opposed to €0.1093 for 122.719.280 shares with dividend entitlement starting on 1.1.2003, which will become payable on 14 April 2005 (registration date 11 April 2005).
Following the close of the financial year, the Board of Directors met on 25 January 2005 to examine and approve a plan to increase the share capital of Banca dell'Artigianato e dell'Industria S.p.A., which will be presented for approval by the EGM scheduled for 30 March 2005, and is aimed providing suitable stability in terms of economic conditions and equity to support its subsidiary's development programmes in Veneto. Credito Artigiano's pro rata contribution to the capital increase, which totals 80.9 million euros, will be for a maximum outlay of approximately 30 million euros. There have not been any other major events since the close of the financial year which have significantly affected the operations of the bank and its economic results.
Despite an operating context which is challenging and whose evolution is uncertain, especially with regard to economic growth prospects, the Board of Directors believes one may expect further improvements to be achieved in company results in terms of total assets, and a confirmation of the upturn in primary profit indicators which would be in keeping with trends over the past few years.
Accounting schedules: reclassified balance sheet and income statement (PDF file, 94 KB)
One should note that review is still underway by the external auditing firm.
For more information, contact:
Tiziana Camozzi
2004
2003
%
Net profit
18,3
15,5
+18,2%
Interest margin
95,4
86,9
+9,7%
Brokering margin
154,4
139,3
+10,9%
Gross operating profit
51,3
39,4
+30,3%
Profit or loss on ordinary operations
32,3
27,5
+17,6%
Direct deposits
3.610
3.312
+9%
Indirect deposits
4.128
3.817
+8,1%
Overall deposits
7.738
7.129
+8,5%
Loans
3.069
2.821
+8,8%
Proposed dividend: €0.1126 per share
Vittorio Pellegatta
Direzione Amministrativa
Telephone 02 80637365
Email: pellegatta.vittorio@creval.it
Servizio Comunicazione istituzionale
Telephone 02 80637471
Email: camozzi.tiziana@creval.it
