Credito Valtellinese Group: Consolidated financial statements and draft financial statements of the parent bank as at 31 December 2006 approved
Consolidated net profit at € 68.6 million (+23.6%)
Dividend of € 0.40
Total dividends of € 36.4 million (+15.9%)
Growth in main asset items:
Direct deposits at € 12,074 million (+15.1%)
Indirect deposits at € 12,371 million (+6.8%)
Loans to customers of € 11,367 million (+15.3%)
STOCK INCLUDED IN THE MIDEX INDEX OF BORSA ITALIANA
SHAREHOLDERS' MEETING CALLED FOR 21 APRIL 2007
|Consolidated figures (millions of euro)||31.12.2006||31.12.2005||Change|
|Net profit||68,6||55,5||+ 23,6%|
|Interest margin||347,4||297,2||+ 16,9%|
|Brokerage margin||564,6||500,3||+ 12,9%|
|Net result of financial operations||506,5||457,3||+ 10,8%|
|Operating costs||370,3||341,9||+ 8,3%|
|Gross operating profit||136,2||115,4||+ 18%|
|Direct deposits||12.074||10.489||+ 15,1%|
|Indirect deposits||12.371||11.587||+ 6,8%|
|Loans to customers||11.367||9.863||+ 15,3%|
|Net equity||882||756||+ 16,6%|
|Cost/income ratio (1)||65,6%||68,3%|
(1) Calculated as the ratio of operating costs to the brokerage margin
(2) Calculated a the ratio of the Parent Bank's share of net profit to shareholders' equity, excluding profit
Sondrio, 20 March 2007The Board of Directors of Credito Valtellinese, chaired by Giovanni De Censi, met today and approved the financial statements of the Parent Bank, Credito Valtellinese S.c., and the consolidated financial statements as at 31 December 2006, which were presented by the General Manager, Miro Fiordi.
At the same meeting, the Board expressed satisfaction that its stock had been admitted to trading on the Blue Chip Segment of the Mercato Telematico Azionario run by Borsa Italiana and included in the MIDEX index, which is made up of the largest companies on the exchange list in terms of capitalisation and liquidity, immediately after those included in the S&P/MIB index.
The results for the year, which outperformed the goals set in the 2006 Strategic Plan, included appreciable progress by profitability indicators and considerable growth of brokered volumes, driven by gradual, harmonious development of the operations of all Group banks. Consolidated net profit totalled € 68.6 million, up 23.6% over last year. The Parent Bank's net profit for the year totalled € 48.1 million, a 32.5% year-on-year increase.
The Board of Directors confirmed its intention of continue to deliver a high payout ratio and will propose the distribution of a dividend of € 0.40 per share to the shareholders' meeting, in line with last year's dividend, despite an increase in the number of shares making up share capital (+ 15.9%) due to the effect of the conversion in 2006 of the second tranche of the 2004/2007 2.80% Credito Valtellinese Convertible Bond Issue, which led to the issue of 12,502,809 new shares.
At the consolidated level, all earnings indicators showed improvement over the previous year.
The interest margin registered an improvement of 16.9%, rising to € 347.4 million, versus € 297.2 million, essentially due to the increase in brokered volumes. Net commissions totalled € 190.2 million, up 4% from € 182.9 million. The net result of trading activity was € 22.4 million, compared to € 16.4 million, a 37% increase year-on-year. Profits on disposal of other financial assets totalled € 3.4 million. The brokerage margin reached € 564.6 million, an improvement of 12.9% over the € 500.3 million recorded the previous year. Net value adjustments due to the impairment of financial assets, largely loans, totalled € 58 million, up 35.3% versus € 42.9 million in previous FY. In consequence, the net result of financial operations stood at € 506.5 million, a 10.8% increase year-on-year from € 457.3 million year-on-year. Operating costs stood at € 370.3 million, compared to € 341.9 million in 2006, up 8.3%. Specifically, personnel costs increased by 9.7%, reaching € 223 million compared to € 203.2 million of the previous year. Other administrative expenses, € 129.2 million, increased by 6% compared to € 121.9 million. The cost-to-income ratio stood at 65.6%, a further gradual improvement over 68.3% in 2005, due to the impact of the growth of operating income and a strict cost control policy, despite increased charges due to the expansion of the geographical network. Provisions for risks and charges, which are intended to cover the risk of negative outcomes of suits brought against the Group, totalled € 8.7 million, against € 7.6 million for the previous year. Value adjustments to tangible and intangible fixed assets came to a total of € 25.2 million, against € 21 million in 2006. Gross operating profit totalled € 136.2 million euro, marking a 18% improvement over the € 115.4 million from the previous year. Profit on shares measured at net equity, equal to € 13.3 million (+7%), taxes - estimated at € 70 million (+18%) - and profits from minority interests totalling € 12.5 million (+18.7%), generated consolidated profit for the period of € 68.6 million, up 23.6% year-on-year. ROE stood at 9.1%, up from 8.5% in 2005, despite the increase in shareholders' equity, including an additional € 87 million following the conversion of the second tranche of the 2004/2007 2.80% Credito Valtellinese Convertible Bond Issue.
The main balance sheet aggregates showed significant growth: total deposits came to € 24,445 million as at 31 December 2006, an increase of 10.7% over € 22,076 million for the previous year. Direct customer deposits performed even more positively, rising more than 15% to € 12,074 million. Indirect deposits marked an improvement of 6.8%, totalling € 12,371 million. The managed component grew at a rate of 2.2% and reached a total of € 6,043 million. The trend in loans to customers was positive and up 15.3%, amounting to € 11,367 million. Breaking the loan portfolio down by technical form shows that the medium and long-term component, which is made up of mortgages and finance leases, outperformed the other segments, registering a year-on-year increase of 16.8% to total € 4,096 million.
Non-performing loans, which amounted to € 382 million, net of value adjustments, represented 3.4% of total loans to customers (against 3.5% in 2005). In further detail, impaired loans totalled € 180.4 million and represented 1.6% of the total loan portfolio (against 1.7% in 2005), whilst other doubtful loans amounted to € 202 million, or 1.8% of total loans.
During 2006 the Credito Valtellinese Group's geographical network was further expanded by the opening of 22 new branches in line with the goals set in the Strategic Plan, bringing the total number of branches up to 368 at the end of 2006. The Group counted 3,344 employees on the same date.
No significant events occurred after the end of the year with a considerable impact on the Group's income statement, balance sheet, or cash flow statement or on the presentation thereof. It is nonetheless appropriate to report the following events, which had an affect on the Group's management in the first part of 2007:
FINANCIAL HIGHLIGHTS FOR CREDITO VALTELLINESE S.C.
|Consolidated figures (millions of euro)||31.12.2006||31.12.2005||Change|
|Net profit||48,1||36,3||+ 32,5%|
|Interest margin||120,6||103,8||+ 16,2%|
|Brokerage margin||204,4||182,4||+ 12,1%|
|Net result of financial operations||183,4||163,3||+ 12,3%|
|Operating costs||115,2||102,4||+ 12,5%|
|Gross operating profit||68,2||60,9||+ 11,9%|
|Direct deposits||4.799||4.097||+ 17,1%|
|Indirect deposits||4.682||4.145||+ 12,9%|
|Loans to customers||4.631||3.913||+ 18,4%|
|Net equity||870||761||+ 14,4%|
The financial statements of Credito Valtellinese S.c. at 31 December 2006 show significant growth of the main balance sheet aggregates and consistent positive performance of earnings indicators.The interest margin totalled € 120.6 million, up 16.2% year-on-year, and the brokerage margin totalled € 204.4 million, an increase of more than 12%. Write-downs of financial assets, mainly loans, totalled € 21 million, leading to a net profit on financial operations of € 183.4 million, growth of 12.3%. Operating costs stood at € 115.2 million (+12.5% year-on-year), bringing gross operating profit up to € 68.2 million, an increase of around 12%. Net profit totalled € 48.1 million, up 32.5% from € 36.3 million the previous year. As at December 31 2006 total deposits reached € 9,481 million, up from € 8,242 million the previous year, an increase of more than 15%. Direct deposits from clients stood at € 4,799 million, showing an annual increase of 17.1%. Indirect deposits marked an improvement of 12.9%, totalling € 4,682 million. The "managed" component rose from € 2,177 million to € 2,136 million, a growth rate of 4.1%. The trend in loans to customers was positive and up 18.4%, amounting to € 4,631 million.
MEETING OF THE SHAREHOLDERS OF CREDITO VALTELLINESE
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Restated Consolidated and Separate Balance Sheet and Income Statement of Credito Valtellinese S.c.
One should note that review is still underway by the external auditing firm.