Credito Artigiano: Draft financial statements as at 31.12.06 approved.
Positive development of economic performance:
Net profit at € 34.1 million (+21.8%).
Gross operating profit of € 53 million (+24.6%)
Constant growth in main asset items:
Direct deposits at € 4,652 million (+18.6%).
Loans to customers of € 4,226 billion (+13.7%)
| (figures shown in millions of euros) | 31.12.2006 | 31.12.2005 | change |
| Profit for the year | 34.1 | 28 | + 21.8% |
| Interest margin | 128.2 | 108 | + 18.6% |
| Brokerage margin | 195.4 | 170 | + 14.8% |
| Net result of financial operations | 169.8 | 148.9 | + 14% |
| Gross operating profit | 53 | 42.6 | + 24.6% |
| Overall deposits | 9,252 | 8,391 | + 10% |
| Direct deposits | 4,652 | 3,922 | + 18.6% |
| Indirect deposits | 4,600 | 4,469 | + 2.9% |
| of which "managed" | 2,136 | 2,082 | + 2.6% |
| Loans to customers | 4,226 | 3,716 | + 13.7% |
| Net equity | 446 | 430 | + 3.6% |
| Dividend of 0.1635 per share | + 32% | ||
Milan, 01 March 2007 - The Board of Directors of Credito Artigiano, chaired by Mr. Angelo Palma, examined and approved the draft financial statements as at 31 December 2006, whose figures confirm that the business continued to grow at a steady, balanced pace in line with established targets.
Income indicators were on the rise. The interest margin registered an improvement of 18.6%, rising to € 128.2 million, versus € 108 million in 2005, essentially due to the increase in brokered volumes.
Net commissions stood at € 60.6 million, an increase of 6.5% from € 56.9 million in 2005.
The net result of trading activity was € 5.3 million, a 9.2% increase year-on-year. Profits on disposal of other financial assets totalled € 1.2 million.
The brokerage margin stood at € 195.4 million, up 14.8% from € 170.2 million in 2005.
Net value adjustments due to the impairment of financial assets, largely loans, totalled € 25.7 million, versus € 21.3 million in 2005.
In consequence, the net result of financial operations stood at € 169.8 million, a 14% increase year-on-year from € 148.9 million in 2005.
Operating costs stood at € 116.7 million, compared to € 106.3 million in 2005, up 9.8%. Specifically, personnel costs increased by 11.5%, reaching € 54.9 million compared to € 49.2 million of the previous year. Other administrative expenses, € 53.6 million, increased by 6.7% compared to € 50.3 million. The larger increase in personnel costs is mainly due to the gradual expansion of the operating network and the related need to take on more employees to staff recently opened branches in geographical areas where the bank was not historically present.
Provisions for risks and charges, essentially intended to cover the risk of a negative outcome of the dispute related to the trading of defaulted securities and for revocation actions in bankruptcy proceedings, totalled € 5.4 million, versus € 4.4 million for the previous year.
Value adjustments to tangible and intangible fixed assets came to a total of € 4.5 million, against € 4 million in 2005.
Efficiency indices have shown further improvement: the ratio of operating costs to the brokerage margin stood at 59.7%, as opposed to 62.5% in 2005, confirming the trend towards gradual improvement.
Gross operating profit totalled € 53 million euro, marking a 24.6% improvement over the € 42.6 million from the previous year.
Considering € 5.6 million in profit on equity investments measured with the net equity method and an estimated € 24.6 million in tax charges for the period, net profit totalled € 34.1 million, a 21.8% increase over € 28 million from the previous year.
The main equity aggregates showed significant growth: At 31 December 2006 total deposits reached € 9,252 million, up from € 8,391 million the previous year, an increase of more than 10%.
Direct deposits from clients stood at € 4,652 million, showing an annual increase of 18.6% on the previous year. Indirect deposits posted 2.9% growth, climbing to € 4,600 million from € 4,469 the previous year. The "managed" component rose from € 2,082 million to € 2,136 million, leading to a growth rate of 2.6%.
The trend in loans to customers was positive and up 13.7%, amounting to € 4,226 million. The upturn in the medium-to-long term component was even more noteworthy, which, standing at € 1,816 million, registered a growth of 28.2% compared to the € 1,441 million for the previous year.
Shareholders' equity at 31 December 2006, including valuation reserves and net profit for the year, posted a total of € 446 million, up from € 430 million the previous year.
At the shareholders' meeting, which has been convened with first call on 5 April 2007, the Board of Directors will propose that a dividend of € 0.1635 per share be distributed, an increase of 32% over the dividend of € 0.1240 from the previous year, to be paid on 19 April 2007 (ex-dividend date 16 April 2007).
After the end of the year, a deal was closed to acquire 12,000 shares of Crypto S.p.A., or 10% of the latter's share capital, from Credito Siciliano for the total price of € 84,540. This transaction is part of a larger project to reorganise the Group's IT area through a merger by incorporation of Crypto into Bankadati S.I.
No other events occurred after the end of the year with a significant impact on the company's income statement, balance sheet, or cash flow situation, nor on the presentation thereof.
In a larger economic context in which clear signs of recovery seem to point to a period of lasting growth, the Board of Directors considers it reasonable to believe that the company's results may show further progress in terms of equity aggregates and the continuation of the trends in the main income indicators shown in the last few years.
For more information, please contact
Vittorio Pellegatta
Management Administration
Telephone 0280.637.365
Email: pellegatta.vittorio@creval.it
Tiziana Camozzi
Institutional Communication Service
Telephone 0280.637.471
Email: camozzi.tiziana@creval.it
Accounting schedules: reclassified balance sheet and income statement
One should note that review is still underway by the external auditing firm.
