Credito Valtellinese Group: approves the consolidated quarterly report at 30.9.2005 in accordance with the new IAS/IFRS
| (figures shown in €/000) | Q3 2005 | First 9 months 2005 | Q3 2004 | First 9 months 2004 |
| Net profit for the period | 14,163 | 44,886 | 12,834 | 39,778 |
| Interest margin | 83,617 | 230,619 | 67,518 | 196,810 |
| Brokerage margin | 135,731 | 388,546 | 113,713 | 334,566 |
| Gross operating profit | 32,347 | 88,156 | 25,758 | 68,885 |
| (figures shown in €/000) | 30.9.2005 | 1.1.2005 | diff. % |
| Direct deposits | 10,271,536 | 9,724,577 | +5.6% |
| Indirect deposits | 11,560,667 | 10,455,668 | +10.6% |
| Overall deposits | 21,832,203 | 20,180,245 | +8.2% |
| Loans | 9,301,576 | 8,271,023 | +12.5% |
PRELIMINARY NOTE CONCERNING APPLICATION OF INTERNATIONAL ACCOUNTING STANDARDS
In compliance with the new law provisions and regulations, Credito Valtellinese Group's quarterly report has been drawn up by applying the new IAS/IFRS and observing the regulations set forth in Annex 3D to Consob Ruling 11971/99.
Credito Valtellinese Group has applied the standards concerning financial instruments and insurance contracts (IAS 32, 39 and IFRS 4) as from January 1 2005 in compliance with IFRS 1 - First-time Adoption of International Financial Reporting Standards.
In the reclassified statements and following notes related to total assets, the figures at 30.09.2005 have been compared with similar figures at June 30 2005 and January 1 2005 which include the effects of adoption of IAS 32 and 39 and IFRS 4. The trend related to the income statement entries has been affected by the aforementioned accounting set-up.
Sondrio, November 8 2005 - The Board of Directors of Credito Valtellinese, the parent company of Credito Valtellinese Group, today reviewed and approved the consolidated report at September 30 2005, the first report drafted in accordance with IAS/IFRS.
The quarter's figures reflect the further growth in the main balance sheet and income statement items, in keeping with the ongoing, steady increase in operating volumes and performance which characterizes the group's business.
OPERATING PERFORMANCE
An analysis of the income statement figures shows that the interest margin for the third quarter of 2005 amounted to 83.6 million euros, while the figure for the first nine months of the year totaled 230.6 million euros, up by 33.8 million euros on the first nine months of 2004.
The brokerage margin of Q3 2005 was 135.7 million euros compared to 388.5 million euros for the first nine months of the year (16.1% up on the first nine months of 2004).
The net operating profit for the first nine months of 2005 amounted to 348.5 million euros, up by 41.6 million euros on the first nine months of the previous year.
The differences in the aforementioned margins are due in part to the different method used to post doubtful receivables provided for by IAS 39. Specifically, there was more interest receivable and value adjustments to outstanding receivables amounting to 10.2 million euros and 9.4 million euros respectively.
The operating costs for Q3 2005 amounted to 87.2 million euros while the total for the first nine months of 2005 stood at 260.3 million euros.
The quarter's gross operating profit amounted to 32.3 million euros (+25.6%) while the total for the first nine months of the year stood at 88.2 million euros (+28%).
The profit for the first nine months of the year amounted to 44,9 million euros (+12.8% compared to 39.8 million euros for the same period of 2004) and to 14.2 million euros in Q3 2005 (+10.4% compared to 12.8 million euros in Q3 2004).
TOTAL ASSETS
Direct deposits amounted to 10,271.5 million euros at September 30 2005, virtually on par with 10,239.6 million euros reported at June 30 2005, and up by 5.6% compared to 9,724.6 million euros at January 1 2005.
Indirect deposits from customers at September 30 2005 amounting to 11,560.7 million euros, saw an increase of 357.6 million euros compared to June 30 2005 (+3.2%), and of 1,105 million euros compared to January 1 2005 (+10.6%).
An analysis of the total assets shows that administered savings amounted to 5,778.1 million euros (+3.9% compared to June 30 2005 and +10.1% compared to January 1 2005). Managed savings composed of common investment funds and customers' managed assets totaled 4,659.3 million euros (+1.9% compared to June 30 2005 and +10.7% compared to 4,208.7 million euros at January 1 2005), while insurance savings stood at 1,123.2 million euros, showing a 4.8% increase compared to the figures at June 30 2005 and a 12.4% increase compared to January 1 2005.
The assets managed by the group for customers, composed of total direct deposits plus indirect deposits, amounted to 21,832.2 million euros at September 30 2005 compared to 21,442.7 million euros at June 30 2005 (1.8%) and 20,180.2 million euros at January 1 2005.
An analysis of loans shows that loans disbursed to customers totaled 9,301.6 million euros at September 30 2005, up by 2% compared to 9,119.4 million euros reported at June 30 2005 and up by 12.5% compared to 8,271 million euros at January 1 2005.
The group's consolidated net equity at September 30 2005 amounted to 693.5 million euros, showing a 1.6% increase compared to 682.7 million euros at June 30 2005 and a 15.3% increase compared to 601.7 million euros at January 1 2005.
IMPORTANT EVENTS SUBSEQUENT TO SEPTEMBER 30 2005 AND FORESEEABLE EVOLUTION OF OPERATIONS
Important events concerning the group which occurred in the period subsequent to the close of the quarter in question included the following:
- Further consolidation of the group's network with the opening of two new Banca dell'Artigianato e dell'Industria branches in Bussolengo (VR) and Camisano Vicentino (VI), as well as the opening on November 7 2005 of the parent company Credito Valtellinese's 100th branch n Traona in Sondrio province. To date, the group's network comprises 344 branches while the Banc@perta line which includes the group's complete range of online products and services numbers 215,388 customers; said gratifying figure is confirmed by reputable sector rankings which put the group in sixth position in the national list for the use of Internet banking application in the retail sector.
- Signing of the "termination agreement" by the parent company and Julius Baer Holding on October 12 2005 which ratified early termination by mutual consent of the joint venture agreement concerning the holding in Julius Baer Creval Private Banking SpA, and regulated re-acquisition by Credito Valtellinese of the Swiss group's total holding in the bank in question. As a result of the aforementioned operation, Credito Valtellinese increased its own holding in JBCPB's share capital from 48.4% to 89.4%, while Julius Baer Holding A.G. retained a 10% share in the capital; said share is scheduled to be transferred to Credito Valtellinese by July 2006.
- Stipulation of an agreement between the parent company Credito Valtellinese and Banca di Ciociaria S.p.A. related to the development of working synergies and business partnership areas in the area where Banca di Ciociaria S.p.A. operates. The agreements reached provide for the acquisition by Credito Valtellinese of a 10% share in its partner's capital at a price of approximately 6.9 million euros. Actual transfer of the share package is subject to issue of the necessary authorization by supervisory authorities as well as fulfillment of the pre-emption procedure provided for in the bank's articles of association. Implementation of the agreement will allow Banca di Ciociaria S.p.A. to develop its own commercial offer, using the know how and vast range of services and products provided by Credito Valtellinese; on the other hand, once the partnership has been established, Credito Valtellinese will have the opportunity to consolidate its presence and visibility in central Italy.
For further information, contact:
Administration
Telephone: +39 0342/522647 - +39 02/80637813
Email: rocca.enzo@creval.it
Alberto Della Penna
General Office
Telephone:+39 0342/522664
Email: dellapenna.alberto@creval.it
Reclassified Balance Sheet and Income Statement attached. (available in Italian)
