Credito Artigiano: Half-yearly report as of 30.6.2006 approved.
Annualised net profit for the period up 30%
| (figures shown in €/000) | 30.6.2006 | 30.6.2005 | Change |
| Profit for the period | 16,339 | 12,570 | +30% |
| Interest margin | 61,091 | 53,161 | +14.9% |
| Brokerage margin | 93,523 | 82,862 | +12.9% |
| Net results of financial management | 84,306 | 72,837 | +15.7% |
| Gross operating profit | 26,043 | 20,245 | +28.6% |
| (figures shown in millions of euros) | 30.6.2006 | 31.12.2005 | Change |
| Direct deposits | 4,355 | 3,922 | + 11% |
| Indirect deposits | 4,504 | 4,469 | +0.8% |
| Overall deposits | 8,859 | 8,391 | +5.6% |
| Loans to customers | 4,094 | 3,716 | +10.2% |
Milan, 5 September 2006 - The Board of Directors of Credito Artigiano, with Mr. Angelo Palma presiding, met today to approve the half yearly report as at 30 June 2006, which was prepared for the first time according to new IAS/IFRS international accounting standards. The report confirms that brokered volumes have risen in a gradual, balanced manner, and that the main economic indicators have improved in keeping with pre-established goals.
Regarding the profit and loss account, compared to the same period of last year, the interest margin stands at € 61.1 million, up from € 53.2 million, a 14.9% annualised growth rate.
Net commissions total € 29.8 million against € 27 million, a 9.9% improvement in correlation with the very positive dynamics of commissions on financial brokerage as well as the still significant, although less marked, development of commissions for current accounts and payment services and on loan operations.
The net profit from trading activity and profit on the sale of other financial assets for a total of € 2.5 million were important factors in reaching a brokerage margin of € 93.5 million, a 12.9% annualised increase.
Net adjustments to financial activities, mainly receivables, for a total value of € 9.2 million establish the net financial operating result at € 84.3 million, an increase of 15.7% compared to € 72.8.
Operating costs stand at € 58.3 million, up from € 52.6 million, a 10.8% annualised increase. In greater detail, staff costs increased by 12.6%, rising from € 24.1 million to € 27.1 million, and other administrative costs increased 7.5%, up from € 29.5 million to € 31.8 million. The largest increase in expenditures, i.e. for staff costs, is to be ascribed to the hiring of new employees for recently opened branches in new areas.
In fact, the geographical network was further expanded this year by the opening of seven branches: two new branches in Milan, one in Rome, Cernusco sul Naviglio, Magenta, Arcore, and Empoli, in line with established goals for strengthening the bank's presence in areas where it has traditionally operated and its gradual entry into the Provinces of Lombardy and Tuscany where it currently does not. The geographical network currently counts 105 branches.
Allocations to provisions for risks and charges--destined to hedge the risk of a negative outcome of the legal action to place securities in default and for bankruptcy revocatory action--total € 2.8 million (€ 1.9 million in June 2005) and value adjustments to tangible and intangible assets stand at € 2.4 million (€ 2 million in June 2005).
Profitability indices have shown further improvement: the ratio of operating costs to brokerage margin stands at 62.4%, compared to 63.4% in the first half of 2005.
The gross profit from operations reached € 26 million, a 28.6% annualised increase.
If profits from shareholdings measured at shareholders' equity totalling € 3 million and tax charges (estimated at € 12.8 million) are considered, then the net profit for the period totals € 16.3 million, a 30% annualised increase.
At the end of the first half of 2006, direct deposits stood at € 4,355 million, an 11% increase over € 3,922 million last December, while indirect deposits remained more or less stable at € 4,504 million. The "managed" component, including investment insurance policies, totals € 2,070 million.
Overall deposits totalled € 8,859 million, a 5.6% increase from € 8,391 million.
Loans to customers stand at € 4,094 million, an increase of more than 10% from € 3,716 million at the end of December 2005. The medium-to-long term component was even more dynamic, reaching € 1,648 million, up 14% from 1,441 million.
Non-performing loans totalled € 19.6 million (+ 12.5% from € 17.4 million in December 2005), equal to 0.48% of total loans to customers, a value which is substantially the same as in December, and a 68.4% coverage index, up from 67.6%.
Other doubtful loans stand at € 78.1 million (+ 32% from € 59.3 million in December 2005, mostly due to the increase in overdue loans), equal to 1.9% of total loans, a slight increase from 1.6% in December.
The above-mentioned indicators depict a contained credit risk profile that has remained substantially stable over time in the presence of a physiological increase in bad loans.
Relevant Events After 30.06.06 and Predicted Course of Management
No relevant events took place after the end of the first half of the year with significant consequences for the bank's economic, asset or financial situation or for the representation thereof.
Evolution of bank management in recent months makes it possible to hypothesise that further progress will be made in terms of economic results by following a path of balanced, sustainable growth in the medium term.
For further information, contact:
Tiziana Camozzi
Institutional Communication and Press Service
Telephone 02 80637471
Email: camozzi.tiziana@creval.it
Vittorio Pellegatta
Administrative Offices
Telephone 02 80637365
Email: pellegatta.vittorio@creval.it
Accounting schedules: consolidated and reclassified balance sheet and income statement
(Please note that review is still underway by the external auditing firm).
