Credito Valtellinese: further growing year

Net profit considerable increase (+38%), dividends attain 630 lire per share

During its meeting on February 28 last, Credito Valtellinese Board of Directors approved the asset and liability statement for 1996.

The main aggregates show a general increase. In fact, economic input increased by 10.8 per cent, from 2,272 to 2,517 billion, direct incomes from customers increased by 11.1 per cent, from 3,079 to 3,421 billion, financial incomes increased by 7 per cent, from 3,748 to 4,014 billion.

As regards the profit and loss account, results are very positive too: the interest margin increased by 2.4 per cent (from 158.9 to 162.7 billion), while the intermediation margin increased by 11.5 per cent, from 230.3 to 256.7 billion.

In particular, net commissions saw a 43.8% annual increase, from 30.6 to 44 billion.

The careful policy aimed at reorganising the business production processes consequently recovering and improving the operating performance and organising flexibility allowed to control the administrative cost increase. In spite of a considerable increase in the intermediation volume, the commercial network development and the staff cost increase, administrative costs increased by 3.6 per cent only (from 148 to 153.3 billion).

The gross operating margin increased by 25.6 per cent, attaining 103.4 billion, while profit from ordinary activities increased by 53.8 per cent, attaining 64.6 billion.

Such results were attained after entering appropriations and adjustments in respect of credits amounting to 33.6 billion (in comparison with 36.8 billion in 1995), adopting prudent methods. Net unpaid bill influence on investments was essentially unchanged and limited (2.12 per cent, compared to 1.88 per cent in 1995). The bank also entered value recoveries amounting to 10 billion (in comparison with 8.4 billion in 1995). Gross profits - obtained after entering a negative balance concerning the extraordinary management amounting to -2.3 billion (+15.9 billion in 1995) - totalled 62.3 billion (+40.5%), while net profits increased by 38 per cent, attaining 25 billion.

During the General meeting first convocation, on April 18 next, and during the second convocation, on April 19, the Bank will approve a profit disposition plan, which provides for a 630-lira dividend per share (in comparison with 600 lire in 1995). Dividends will be paid on 31,710,654 outstanding securities at the end of the year. Outstanding securities saw a 21.5% increase, namely 5.6 million securities (outstanding securities on December 31 1995 were 26,105,281), as a result of "Credito Valtellinese 7% 1995-1998" bond issue nearly total conversion and a considerable exercise of the warrants.

In compliance with regulations provided by Consob, dividends will be paid as from May 5 1997.