Credito Valtellinese Group: Quarterly report at 31.03.07 approved
Positive development of economic performance:
net profit for the period at € 21.2 million (+32.2%)
gross operating profit of € 42.8 million (+26.5%)
the main equity aggregates show significant growth:
direct deposits at € 12.7 billion (+5.1%)
loans to customers of € 11.8 billion (+3.6%)
|(figures shown in €/000)||Q1 2007||Q1 2006||Change|
|Net profit for the period||21,243||16,068||+ 32.2 %|
|Interest margin||100,118||80,985||+ 23.6 %|
|Brokerage margin||153,426||133,964||+ 14.5 %|
|Net result of financial operations||138,042||124,146||+ 11.2 %|
|Gross operating profit||42,809||33,847||+ 26.5 %|
|(figures shown in millions of euros)||31,03,2007||31,12,2006|
|Overall deposits||24,796||24,445||+ 1.4 %|
|Direct deposits||12,689||12,074||+ 5.1 %|
|Indirect deposits||12,107||12,371||- 2.1 %|
|of which "managed"||6,059||6,043||+ 0.3 %|
|Loans to customers||11,775||11,367||+ 3.6 %|
Sondrio, 11 may, 2007 - The Board of Directors of Credito Valtellinese, Parent company of the Credito Valtellinese Banking Group - convened today in a meeting, having Mr. Giovanni De Censi as chairman, approved the quarterly report as of 31 march 2007, which confirms the positive evolution of the economic performance and the steady trend of growth in the main equity aggregates, in line with the strategic plan.
The first quarter income statement shows an interest margin of 100 million euro, up 23,6% over the same period of 2006, supported by the progressive growth of the volumes traded and by the positive trend of the interest rate curve subsequent to the recent ECB intervention. Net commissions, which totalled € 48.1 million, recorded a 3.3% increase and helped generate a brokerage margin of € 153.4 million, up by 14.5% on the same period of 2006.
Net value adjustments to financial assets, mainly loans, totalling € 15.4 million generated a net profit from financial operations of € 138 million, showing an increase of over 11% compared to the same period of 2006.
Operating costs amount to € 95.2 million and reflect a 5.5% increase compared with the € 90.3 million registered in the first quarter of 2006. Gross operating profit totalled € 42.8 million, with a 26.5% increase.
Profit on shares valued at net equity, equal to € 3.5 million (+27%), taxes - estimated at € 21.6 million (+16.7%) - and profits from minority interests totalling € 3.5 million (+31.8%), generated consolidated profit for the period of € 21.2 million, showing an increase of 32.2% compared to the first three months of 2006.
As of 31 march, 2007, the overall deposits amount to € 24,796 million, up 1.4% compared with the € 24,445 million registered at the end of December 2006. Direct deposits from customers increased by 5.1%, totalling € 12,689 million, compared to € 12,074 million, while indirect deposits amount to € 12,107 million (-2.1%). Assets under management, equal to € 6,059 million, are substantially unchanged compared with the level recorded at the end of year 2006.
Loans to customers totalled € 11,775 million, showing a 3.6% increase on the figure of € 11,367 million recorded in December 2006.
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%.
Net non performing loans amount to € 179 million, practically unchanged compared to December 2006, while other net doubtful debts for € 199 million declined slightly compared to the € 202 million of the previous year.
The ratio between bad debts and loans to customers is equal to 1.5%, while the ratio between other doubtful net debts and loans to customer is equal to 1.7%. Both these indicators show a low risk profile and an improvement over December 2006.
Relevant Events After 31 March 2007 and Predicted Course of Management.
On april 17, 2007, Credito Valtellinese and Banca Tercas - Cassa di Risparmio della Provincia di Teramo S.p.A. - Parent company of the banking group with the same name - entered into a strategic cooperation project aimed at pursuing, within the limits of the legal and operational independence of the two groups, common policies with reference to the market, product development and production, within a growth process consistent with the respective strategic guidelines. In further detail, the letter of intent signed with Fondazione Tercas - reference shareholder of the bank located in the Abruzzo region - calls for the Credito Valtellinese Group to acquire a stake in Banca Tercas, initially a 15.01% minority interest to be purchased prior to 31 July 2007 and to be increased at a later date up to a maximum of 20%, with the goal of supporting the growth of Tercas, also through specific commercial agreements with the Credito Valtellinese Group.
Following the maturity, on 19 April 2007, of the third and last tranche of the "Credito Valtellinese 2.8% 2004-2007 convertible debenture", no. 16,087,885 new shares have been issued. Consequently, the share capital was increased from € 272,913,873 to € 321,177,528, comprised of 107,059,176 shares with a par value of € 3 each.
On 6 April 2007, within the framework of the actions aimed at simplifying the structure of the Group, the deed of merger by incorporation of Crypto S.p.A. in Bankadati Servizi Informatici S.p.A. was entered into, effective as from 1 may 2007 and with accounting effects from 1st January 2007. This transaction, given that both companies are entirely owned by the Parent company Credito Valtellinese - 80% directly and 20% through the subsidiary Credito Artigiano - shall not have any impact of the economic, equity and financial positions.
Concerning the business outlook, it is probable that over the next few months further progress will be made in meeting forecasts and operating goals with balanced, sustainable growth in the medium term.