(Adds further details, results excluding PPA effect, analyst comments, share
price)
MILAN (Thomson Financial) - Italian cooperative bank UBI Banca said
full-year net profit rose 10.4 pct from a year earlier, driven by a solid growth
in volumes and good profitability, and proposed a dividend at the top end of
analysts' forecasts.
Net profit rose to 940.6 mln eur from a pro forma of 851.9 mln and the
proposed dividend rose 19 pct to 0.95 eur per share, at the top end of the
0.80-0.95 eur range forecast by analysts.
Revenues rose 4.2 pct to 4.459 bln eur, driven by 10.9 pct rise in net
interest income, which outweighed a 0.7 pct rise in net commissions and lower
trading income, while gross operating profit rose 8.3 pct to 1.901 bln, it said.
However, the bank -- formed last April by the merger of BPU and Banca
Lombarda -- said the results include the allocation of the acquisition purchase
price (PPA effect), which had an 81 mln eur negative impact on the net result.
Following the release of the results, Mediobanca, which repeated its
'outperform' rating and 19 eur target price on the stock, and other analysts
said excluding the PPA effect the results were above their expectations.
Excluding the PPA effect, net profit rose to 1.021 bln eur from 933 mln a
year earlier, operating profit to 2.051 bln from 1.905 bln, and revenues to
4.547 bln from 4.366 bln.
According to seven analysts polled by Thomson Financial News, net profit was
expected at 981 mln eur, gross operating profit at 2.004 bln, and revenues at
4.566 bln.
The bank said capital adequacy significantly improved with the Core Tier 1
ratio rising to 6.86 pct at the end of 2007 from 6.28 pct at the end of 2006.
It also repeated it has no direct exposure to US subprime-related
instruments and US monolines.
Looking ahead, UBI confirmed targets for profits and dividend set in its
business plan to 2010.
UBI said net interest income in 2008 should grow at a lower pace than in
2007 but above the business plan target, while the trend in net commissions is
expected to be below the business plan target.
Operating costs are expected to grow slightly compared with 2007, while
integration costs should fall to 90 mln eur, it said.
At 11.17 am, UBI shares had risen 1.92 pct to 16.38 eur on the Milan stock
exchange.
danilo.masoni@thomson.com
dm/jlc/dm/slm
COPYRIGHT
Copyright Thomson Financial News Limited 2008. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|