Credito Artigiano: Draft financial statements as at 31.12.05 approved
| (figures shown in millions of euros) | 2005 | 2004 | Var. |
| Net profit | 23.1 | 18.3 | 26.2% |
| Interest margin | 105.4 | 95.4 | 10.6% |
| Brokerage margin | 174.7 | 154.4 | 13.2% |
| Gross operating profit | 64.1 | 51.3 | 24.9% |
| Profit or loss on ordinary operations | 41.8 | 32.3 | 29.4% |
| Overall deposits | 8,392 | 7,738 | 8.5% |
| Direct deposits | 3,923 | 3,610 | 8.7% |
| Indirect deposits | 4,469 | 4,128 | 8.3% |
| of which "managed" | 2,082 | 1,891 | 10.1% |
| Loans | 3,717 | 3,069 | 21.1% |
| Net equity | 399 | 328 | 21.7% |
Proposed dividend: € 0.1240 per share
Milan, 7 March 2006 - The Board of Directors of Credito Artigiano, chaired by Mr. Angelo Palma, examined and approved the draft financial statements as at 31 December 2005, whose figures have continued to grow confirming balanced and constant management development in the medium term.
The interest margin, despite overall stability in market rates, revealed an increase of 10.6%, standing at € 105.4 million against the € 95.4 million for the previous year, due to constant and balanced growth in brokerage volumes.
Under income from services, an increase in net commissions was noted, which came in at € 50.3 million, up more than 15% over the previous year's figure of € 50.3 million.
Profits from financial operations amounted to € 5 million, as compared with the € 3.3 million for previous year, and were a determining factor in establishing a positive financial result.
The brokerage margin stands at € 174.7 million, rising 13.2% for the year.
Operating costs totalled € 99.8 million compared to the € 93.2 million for the previous year, and saw a 7.1% increase, which was primarily due to a progressive increase in the territorial network, also taking into account expenses for the renewal of the industry-wide agreement
Specifically, personnel costs increased by 5%, at € 48.1 million compared to the € 45.8 million for the previous year. Other administrative expenses, equal to € 51.7, increased by 9% compared to € 47.3 million.
Adjustments to fixed assets totalled € 10.8 million, compared to € 9.9 million.
Gross operating profit was at € 64.1 million, an increase of almost 25% compared to the € 51.3 million for the previous year.
Provisions and adjustments for receivables totalled € 22.3 million, an 18% increase compared to the previous year's figure of € 19 million. Specifically, net provisions for credit risk totalled € 17.9 million (€ 14.7 million in 2004), increasing by 22.2%. Similarly, other provisions for risks and expenses totalled € 4.4 million, compared to the € 4.3 million for the previous year.
Profit on ordinary operations came in at € 32.3 million, showing a increase of slightly below 30% compared to the € 32.3 million for the previous year.
Taking into account earnings from extraordinary operations, which showed profits of € 0.6 million (€ 0.9 million in the previous financial period), as well as € 19.3 million in taxes - an increase of approximately 30% compared to the € 14.9 million for the previous year - net profit stood at € 23 million, up 26.2% over the previous figure of € 15.5 million.
As at 31 December 2005, total deposits stood at € 8.392 million, compared to the € 7.738 million for the previous year, an 8.5% increase.
Direct deposits from clients came in at € 3.923 million, up 8.7% for the year. Similarly, indirect deposits reached € 4,469 million, an 8.3% increase. Managed assets rose from € 1,891 million to € 2,082 million, showing a growth rate of over 10%.
The trend in loans to customers was positive and was up 21.1%, amounting to € 3,717 million. The upturn in the medium-to-long term component was even more noteworthy, which, standing at € 1,260 million, registered a growth of 26% compared to the € 1,000 million for the previous year.
At the close of the financial year, the Bank's net equity, without period results, was registered at € 399 million, compared to the € 328 million registered in the previous year. The € 71 million increase is primarily due to the conversion of the last tranche of the "Credito Artigiano T.V. 1999-2004 subordinated convertible" bond loan, which lead to a € 25 million increase, as well as a revaluation of real estate assets, carried out pursuant to Law 266/2005, which resulted in an increase in revaluation reserves equal to approximately € 46 million.
At the Ordinary Shareholders' Meeting, scheduled for 10 April 2006, the Board of Directors will propose the payment of a dividend of € 0.1240 per share - a 10% increase compared to the € 0.1126 for the previous year - which will nevertheless be paid for 142,395,680 shares compared to the 132,517,760 shares of the previous year. An increase, therefore, of more than 18% compared to total overall paid dividends, totalling € 17.7 million as opposed to € 14.9 million.
The dividend shall be disbursed on 21 April 2006 (coupon detachment date 18 April 2006).
The first tranche - equal to € 29.4 million - of the Mediocreval S.p.A. increase in share capital was underwritten following the close of the financial year, for a total overall sum of € 51.4 million, aimed at supplying support to the progressive development of operations in the medium-to-long term with adequate financial levels.
Pro-rata contribution to the abovementioned capital increase lead to an outlay of € 9.2 million to underwrite 1,531,830 new shares at a unit price of € 6 - of which € 3 in nominal value and the same amount in premium.
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 a still uncertain operating context, the Board of Directors believes that further improvements may 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.
Transition process to the new IAS/IFRS international accounting principles
The new IAS/IFRS international accounting principles shall be applied starting in the 2006 financial year, in accordance to the dispositions in Legislative Decree no. 38 dated 28 February 2005. Therefore, the quarterly report as at 31 March 2006 will be drafted according to the new accounting principles. The choices made due to this first application, and details of the effects of the transition, shall be illustrated in the same report.
For further information, contact:
Administrative Offices
Telephone +39 02 80637365
Email: pellegatta.vittorio@creval.it
Tiziana Camozzi
Institutional Communication Service
Telephone +39 02 80637471
Email: camozzi.tiziana@creval.it
Accounting schedules: consolidated and reclassified balance sheet and income statement
- available in italian -
(Please note that review is still underway by the external auditing firm and the Board of Statutory Auditors.)
