Credito Valtellinese banking Group boosts consolidated results:
Sondrio, Tuesday March 27 2001
The Board of Directors of the Parent Bank examined today Credito Valtellinese banking Group's consolidated results for the year 2000. The period between January and December 2000 saw a considerable improvement of the traditional branches of activity (i.e. Deposits and Investments), as well as a better range of services - including innovative services based on the new technologies - that the Group has been offering to its clientele.
As at December 31 2000, direct deposits from customers totalled close to L. 10,900 billion, with an increase by 12% in comparison with the previous year, while indirect deposits attained L. 14,197 billion, compared with L. 13,543 billion of 1999 (+ 4.8%).
In particular, customers' securities held for custody and administration at the Group member banks amounted to L. 8,111 billion, compared with L. 7,735 billion of '99 (+4.9%). Assets administrations and funds, which the customers deposited with the member banks, attained L. 6,086 billion compared with L. 5,808 billion as at December 31 1999 (+4.8%).
This is highly representative of the great interest that the Group's clientele constantly showed in all forms of saving management; as at December 31 2000, in fact, the indirect deposits-savings administrations ratio was 42.9%.
Most importantly, assets held for administration (consisting of the clientele's both direct and indirect deposits) attained L. 25,097 billion, with an increase by 7.8% (L. 1,817 billion) compared with end '99 (i.e. L. 23,280 billion)
As at December 31 2000, sums receivable from customers totalled close to L. 8,600 billion, with an increase by 19.2% (i.e. L. 1,383 billion) compared with consistencies as at December 31 1999 (L. 7,217 billion).
Unpaid bills amounted to L. 257.7 billion, with an impact on net investments of 3%, compared with 3.4% as at December 31 1999 (consistency: L. 247 billion).
As regards the ordinary management, such an improvement in the Group's performance and results had a positive impact on the consolidated profit and loss account.
The interest margin attained L. 389.8 billion, with an increase by 10.7% in comparison with end '99 (L. 352.3 billion)
Net proceeds from services - consisting of net commissions and other proceeds - totalled L. 257.9 billion, with an increase by 24.5% in comparison with '99 (L. 207.1 billion).
The brokerage margin amounted to L. 669.6 billion, increasing by 21.7% (+ L. 119.2 billion) with respect to '99 (L. 550.4 billion). Such an improvement shows the Parent Bank and the other member companies' capacity to keep an eye on their profitability. To increase and strengthen profitability, thanks in particular to the most fruitful and reliable item of the aggregate - that is net proceeds from services - is the strategy that Credito Valtellinese banking Group intends to push forward in order to improve its performance in the years to come
Operating costs amounted to L. 430.4 billion, with only a slight increase (+7.7%) with respect to '99 and less impact on the brokerage margin (64.3% compared with 72.6% in '99). The increase was mainly due to the integration of the two Sicilian banks and of Banca dell'Artigianato e dell'Industria of Brescia, which have been adjusting their information system to the Group's IT standards, as well as to costs associated with the considerable development of the branch network and of the Internet channel, which the Group sustained in 2000.
Value adjustments in respect of tangible ad intangible fixed assets amounted to L. 59.1 billion, with an increase by 14.3% in comparison with '99 (L. 51.7 billion)
Value recoveries associated with the gross operating income led to a considerable increase in ordinary profits, which attained L. 125.2 billion, compared with L. 50.2 billion in 1999 (+149.5%).
Gross profits totalled L. 138.7 billion, compared with L. 113.6 billion end of '99 (+22.1%), in confirmation of the Group's constant commitment to preserving assets and profitability in the years to come.
As a result of a decrease in extraordinary incomes (-78.7%) and of a greater pressure of taxation (+44.4%) consolidated net profits for the period totalled L. 39.7 billion, compared with L. 41.2 billion as at December 31 1999 (-3.6%).
2000 was a momentous year, as Banca dell'Artigianato e dell'Industria of Brescia joined Credito Valtellinese banking Group and Aperta Gestioni Patrimoniali SA, a Swiss fiduciary and asset management company was formed in Lugano.
The first quarter of the year also saw the strategic alliance with Banca Popolare Sant'Angelo. This allowed the Group, which was already playing a very important role in the eastern part of Sicily, to extend its influence to the western provinces as well, becoming actually a point of reference within the economy of the whole island.
At end of the year the Group's staff numbered 2,229 employees (+4.2%), while its branch network numbered in all 213 counters.
- Ordinary profits: + 149.5%
- Gross profits before taxes: +22.1%
- Assets held for administration attain L. 25,097 billion, with a 7.8% annual increase
- 50,000 customers benefit from banc@perta line of products and services offered via the
Internet
Not to be forgotten finally that an increasing number of customers benefit from banc@perta line of products and services provided via the Internet. End of 2000, the number of banc@perta users totalled close to 50,000 customers, with a 236% annual increase (as of today, there are about 58,000 banc@perta users).
