Credito Artigiano: Quarterly report at 31 March 2007 approved.
Net profit of € 9.5 million for the period (+ 20.1% year-on-year)
Gross operating profit of € 15.5 million (+23% year-on-year)
Direct deposits at € 4,948 million (+6.4% on December 2006)
Loans to customers of € 4,436 billion (+5% on December 2006)
| (figures shown in €/000) | 31.03.2007 | 31.03.2006 | Change |
| Net profit for the period | 9,530 | 7.932 | + 20,1 % |
| Interest margin | 36.689 | 30.342 | + 20,9 % |
| Brokerage margin | 52.893 | 46.314 | + 14,2 % |
| Net result of financial operations | 44.972 | 40.730 | + 10,4 % |
| Gross operating profit | 15.501 | 12.597 | + 23 %% |
| (figures shown in millions of euros) | 31.03.2007 | 31.12.2006 | |
| Overall deposits | 9.661 | 9.252 | + 4,4 % |
| Direct deposits | 4.948 | 4.652 | + 6,4 % |
| Indirect deposits | 4.713 | 4.600 | + 2,5 % |
| of which "managed" | 2.188 | 2.136 | + 2,4 % |
| Loans to customers | 4.436 | 4.226 | + 5 % |
Milan, 2 May 2007 - The Board of Directors of Credito Artigiano, chaired by Angelo Palma, approved the quarterly report at 31 March 2007, which shows balanced growth of balance sheet aggregates accompanied by further growth of the main income indicators in line with performance targets.
Earnings figures performed well over the period. The interest margin totalled € 36.7 million, compared to € 30.3 million at 31 March 2006, up 20.9% year-on-year, driven by gradual improvement in brokered volumes along with the positive performance of the interest rate curve following the recent rate changes by the ECB. Net commissions totalled € 15.1 million, against € 14.5 million, up 4.4% year-on-year. The net profit from trading activity and profit on the sale of other financial assets, € 1.1 million against € 1.5 million in March 2006, were important factors in reaching a brokerage margin of € 52.9 million, up 14.2% compared to € 46.3 million in 1Q of last year.
Net value adjustments to financial assets, essentially loans, totalled € 7.9 million, compared to € 5.6 million in March 2006. As a consequence, the net profit from financial operations stands at € 45 million, up 10.4% compared to € 40.7 million of 1Q 2006.
Operating costs stand at € 29.5 million, up from € 28.1 million, a 4.8% year-on-year increase. Breaking costs down item-by-item, personnel costs posted an increase of 10%, rising from € 13 million to € 14.3 million, whereas other administrative expenses held substantially steady at € 13.4 million. Provisions for risks and charges, which are intended to cover the risk of a negative outcome of suits brought against the company, and write-downs of tangible and intangible assets totalled € 2.1 million, both largely unchanged from the figures for 1Q 2006.
Gross operating profit reached € 15.5 million, registering an increase of more than 23% from the € 12.6 million posted in 1Q 2006.
If profits from shareholdings measured at shareholders' equity totalling € 2 million and tax charges (estimated at € 8 million) are considered, then the net profit for the period totals € 9.5 million compared to € 7.9 million at the end of March 2006, up more than 20% year-on-year.
Balance sheet aggregates showed further progress. At the end of March 2007, total deposits stood at € 9,661 million, marking 4.4% growth over the € 9,252 million at the end of 2006. Direct deposits from clients stood at € 4,498 million, showing an annual increase of 6.4% on € 4,652 million. Indirect deposits totalled € 4,713 million, up 2.5% from € 4,600 million in last December. Managed savings totalled € 2,188 million, an increase of 2.4% from € 2,136 million from last December; this growth may mainly be attributed to increased asset management, net deposits in which totalled € 55 million.
Loans to customers stood at € 4,436 million, a 5% improvement over € 4,226 million from December 2006. The long-term component totalled € 1,904 million, against € 1,816 million at 31.12.2006, showing growth of 4.8%.
Non-performing loans totalled € 90 million, unchanged from the end of 2006. Of these, € 36 million were classified as impaired, whereas € 54 million were classed as other doubtful loans. Net impaired loans made up 0.80% of total loans to customers, against 0.83% in December 2006, whereas other doubtful loans represented 1.22% of total loans to customers, down from 1.30%. Both indicators point to a contained credit risk profile, with a slight decrease compared with the same values from the end of 2006.
Shareholders' equity, including profit for 2006, totalled € 455.6 through 31 March, 2007, marking an increase of € 9.6 million over 31 December 2006, and corresponding to the net profit for the period.
Concerning the business outlook, it is probable that over the next few months further progress will be made in meeting operating goals with balanced, sustainable growth in the medium term.
Accounting schedules: reclassified balance sheet and income statement
Company Contacts:
Tiziana Camozzi
Institutional Communication and Press Service
Telephone 0280.637.471
Email: camozzi.tiziana@creval.it
Vittorio Pellegatta
Management Administration
Telephone 0280.637.365
Email: pellegatta.vittorio@creval.it
