Credito Valtellinese Group: Consolidated quarterly report at 30.09.06 approved.
Positive development of economic performance: net profit of € 51.6 million (+15.9%), gross operating profit of € 105.1 million (+23.1%)
Constant growth in main asset items: direct deposits of € 11.7 billion (+11.3%), loans to customers of € 10.9 billion (+10.3%)
| (figures shown in €/000) | First 9 months 2006 | First 9 months 2005 | Change |
| Profit for the period | 51,590 | 44,499 | 15.9% |
| Interest margin | 251,304 | 222,067 | 13.2% |
| Brokerage margin | 411,955 | 370,132 | 11.3% |
| Net result of financial operations | 377,776 | 340,200 | 11.1% |
| Gross operating profit | 105,121 | 85,390 | 23.1% |
| (figures shown in millions of euros) | 30.9.2006 | 31.12.2005 | Change |
| Direct deposits from customers | 11,672 | 10,489 | 11.3% |
| Indirect deposits from customers | 12,249 | 11,587 | 5.7% |
| Overall deposits | 23,921 | 22,076 | 8.4% |
| Loans to customers | 10,877 | 9,863 | 10.3% |
Sondrio, November 14 2006 - The Board of Directors of Credito Valtellinese - parent company of the Credito Valtellinese Group - chaired by Giovanni De Censi, met today to review and approve the consolidated quarterly report at September 30 2006. The figures for the first nine months of the year confirm the positive economic performance and constant increase in the main asset items, in line with the Group's planning.
The income statement for the first nine months of the year shows an interest margin of € 251.3 million, 13.2% up on the same period of 2005, which is largely due to the progressive increase in managed assets. Net commissions, which totalled € 139.9 million, recorded a 5.5% increase and helped generate a brokerage margin of € 412 million, up by 11.3% on the same period of 2005.
Net value adjustments to financial assets, mainly loans, totalling € 34.2 million generated a net profit from financial operations of € 377.8 million, showing an increase of over 11% compared to the same period of 2005.
Operating costs for the first nine months of the year totalled € 272.7 million and recorded a 7% increase compared to € 254.8 million in the same period of 2005. The gross operating profit totalled € 105.1 million in the first nine months, up by 23.1%.
Profit on shares valued at net equity, equal to € 9,3 million (+15%), taxes - estimated at € 55.1 million (+26.4%) - and profits from minority interests totalling € 8.8 million (+29.6%), generated consolidated profit for the period of € 51.6 million, showing an increase of 15.9% compared to the first nine months of 2005.
At September 30 2006, overall deposits totalled € 23,921 million, up by 8.4% compared to € 22,076 million at the end of December 2005. Direct deposits from customers amounted to € 11,672 million, up by 11.3% compared to € 10,489 million, while indirect deposits, equal to € 12,249 million, recorded a 5.7% increase compared to the end of 2005. With regard to the latter, managed savings, which amounted to € 5,971 million remained largely unchanged compared to December 31 2005 while administered savings, totalling € 6,278 million, increased by 10.6%.
Loans to customers totalled € 10,877 million, showing a 10.3% improvement on the figure of € 9,863 million recorded in December 2005.
Net doubtful debts totalled € 180 million compared to € 169 million at the end of 2005. Other net doubtful debts amounted to € 224 million compared to € 216 million, which can be largely attributed to outstanding loans.
The ratio of net doubtful debts to loans to customers remained unchanged compared to December 2005, standing at 1.7%. The ratio of other net doubtful debts to loans to customers stood at 2.1% compared to 1.8% at the end of December.
At September 30 2006, the Group's staff numbered 3,326. The commercial network comprised 362 branches, 7 of which started up during the quarter in question. Credito Artigiano has opened 4 new branches: Branch No. 23 in Milan, Arcore and Magenta in Milan province and the Empoli branch in Florence province. Banca dell'Artigianato e dell'Industria opened a new branch at Villafranca di Verona. Credito Siciliano continued with the streamlining of its branch network already started last year and closed the Aciplatani branch in Catania province and opened two new branches in Catania - Branch No. 9 - and in Sciacca in Agrigento province.
SIGNIFICANT EVENTS SUBSEQUENT TO SEPTEMBER 30 2006
Development of the local network. The Group's local network underwent expansion during the period subsequent to September 30 2006 with the opening of a branch of Banca dell'Artigianato e dell'Industria in Bassano del Grappa (Vicenza province), while the parent company, Credito Valtellinese, opened its new branch in Brembate di Sopra (Bergamo province) on November 13 2006. On the same date, Credito Siciliano opened a branch in Ispica (Ragusa province) while the branch at Vallelunga Pratameno in Caltanisetta province was closed down. Therefore, at the date of drafting of this report, the Group's branches totalled 364.
"Banca della Ciociaria" Project On October 31 2006, as part of the strategic partnership project entered into in October 2005 by Credito Valtellinese and Banca della Ciociaria - aimed at developing working relations in the geographical area of the centre of Italy - new agreements were signed which will allow the parent company to increase its holding in Banca della Ciociaria from 10% to 37.9%. The maximum price set for acquisition of the holding in question equalled € 20.6 million.
The agreements entered into also provided for the following:
- definition of shared rules of governance through the stipulation of agreements with some Banca della Ciociaria shareholders;
- a possible, additional increase in Credito Valtellinese's holding in the share capital of Banca della Ciociaria by exercising an option to buy granted by the shareholders undersigning the aforementioned agreements.
Purchase of SIA shares from ABI (Italian Banking Association) On October 13 2006, Credito Valtellinese Group, by taking part in the sales offer formulated by ABI, acquire 535,947 shares in SIA - Società Interbancaria per l'Automazione S.p.A. - at the price of € 7 per share for total spending of € 3,751,629. Therefore the Group's total holding amounted to 1,180,239 shares, equal to 3.39% of the capital of SIA S.p.A..
Participation in 10th "PattiChiari" initiative: "Cambio conto - come cambiare il conto". (I'm changing my account - how to change account) The new initiative entitled "Cambio Conto - Come cambiare il Conto Corrente" (I'm changing account - how to change current account) of ABI's "PattiChiari" project was launched on October 16 2006. The Credito Valtellinese Group immediately lent its support to the aforementioned initiative whose aim is to encourage "account mobility" and the transfer of services from one credit institute to another.
FORECAST DEVELOPMENT OF OPERATIONS
The Board of Directors of Credito Valtellinese feels that the Group's operations over the rest of 2006 may continue at a steady, constant pace of growth and achieve economic and equity goals absolutely in line with budget forecasts.
For further information, contact:
Enzo Rocca
Management Administration
Telephone 0342 522647
Email: rocca.enzo@creval.it
Tiziana Camozzi
Institutional Communication Service
Telephone 02 80637471
Email: camozzi.tiziana@creval.it
Accounting schedules: consolidated and reclassified balance sheet and income statement
- available in Italian
