PRESS RELEASE
CONSOLIDATED RESULTS AS AT 30 SEPTEMBER 2015 REFORM OF COOPERATIVE
BANKS: THE BOD APPROVES THE COMPULSORY AMENDMENTS TO THE ARTICLES
OF ASSOCIATION
COMMERCIAL RESULTS ACCELERATING FURTHER:
· · ·
2015 EXCEEDED EUR 589 MILLION, INCREASING BY 107% Y/Y (THE
SUBROGATIONS INVOLVE LESS THAN 15%)
MORTGAGES TO PRIVATE INDIVIDUALS GRANTED IN THE FIRST NINE MONTHS
OF NEW LOANS TO BUSINESSES ON THE UP FOR MORE THAN COMPARED TO THE
SAME PERIOD LAST YEAR ASSET UNDER MANAGEMENT NET INFLOWS EXCEEDED
Y/Y
EUR 878 MILLION INCREASING BY 57.5%
EUR 760 MILLION, INCREASING BY + 73%
CORE OPERATING RESULTS CONFIRMED A GOOD TREND, WITH A SIGNIFICANT
INCREASE IN NET FEE AND COMMISSION INCOME INCOME OPERATING COSTS
FURTHER DECREASED THE COST OF CREDIT RISK DECREASED
(+ 5.7% Y/Y), WHICH MORE THAN OFFSET THE REDUCTION IN NET INTEREST
(-2.7% Y/Y)
(159 BASIS POINTS, 171 BPS AS AT 30 JUNE)
THE SOUND EQUITY WAS CONFIRMED WELL ABOVE THE MINIMUM REGULATORY
REQUIREMENTS: COMMON EQUITY TIER
1 RATIO OF 11.7% PHASED IN
-
Operating income: EUR 656 million Operating costs: EUR 373 million
Operating profit: EUR 282 million Pre-tax profit from continuing
operations: EUR 51 million Post-tax profit from continuing
operations: EUR 46 million Profit for the period: EUR 63
million
-
Loans and receivables with customers: EUR 18.9 billion (- 0.5%
compared to the end of December 2014) Direct funding: EUR 21.6
billion (+ 3.9% compared to the end of December 2014) Indirect
funding: EUR 12.1 billion (+ 0.9% compared to the end of December
2014) Managed funds: EUR 6.6 billion (+12% compared to the end of
December 2014)
-
PRESS RELEASE
Sondrio, 10 November 2015 - The Board of Directors of Credito
Valtellinese approved the consolidated results as at 30 September
2015, which reflect the first positive signs from the real economy.
The trend of loans and receivables improved and the cost of credit
risk confirmed a gradual normalisation. Operating margins from
customers confirmed a positive trend, supported by the resilience
of the net interest income and by positive trend in commission
revenues.
Statement of financial position aggregates As at 30 September 2015,
loans and receivables with customers stood at EUR 18.9 billion,
down 0.5% compared to EUR 19 billion as at 31 December 2014. The
trend improved during the year and remained different. Loans to
households increased by 5.2%, those to manufacturing businesses
increased by 1.6%, the commercial activities and services increased
by 0.2%, whereas construction companies are still in decline,
because of the ongoing uncertainty on the outlook for the sector,
even if transactions in residential construction are recovering.
The new mortgages to private individuals in the first nine months
of the year exceeded EUR 589 million and more than doubled compared
to the same period last year, with a percentage of subrogations
limited to less than 15% (system average 30%). With reference to
the same period, loans to businesses increased by 57.5%, better
than the system average (+16%). The demand for new investments by
manufacturing companies increased. Positive signs are confirmed
also with regard to credit quality. New non-performing loans slowed
down, especially for the less risky categories. At the end of the
period, Non-Performing Exposure (NPE), net of impairment losses,
totalled EUR 3.4 billion, slightly up (+0.7%) compared to the end
of June 2015, with a coverage ratio of 38.1%. Bad loans totalled
EUR 1,220 million, increasing by 2% compared to EUR 1,196 million
as at 30 June 2015, with a coverage ratio of 55.6%. Based on the
new definitions of non-performing exposure (NPE), unlikely to pay
loans reached EUR 1,699 million, compared to EUR 1,638 million,
with a coverage ratio of 22.6%, whereas EUR 439 million, compared
to EUR 500 million at the close of last half year, are represented
by past-due non-performing loans. Direct funding amounted to EUR
21.6 billion, up by 3.9% compared to December 2014. Net of the
component referring to central counterparties, the funding stood at
EUR 18.9 billion, compared to EUR 20.5 billion as at December 2014,
decreasing mainly towards asset under management. Indirect funding
amounted to EUR 12.1 billion, with a significant growth (+12%) of
"assets under management", which totalled EUR 6.6 billion. Asset
under management net infolows exceeded EUR 760 million, increasing
by +73% y/y, favoured by a market that encourages the customers'
propensity to diversify the financial saving. Financial assets
amounted to EUR 5.2 billion. Of these, EUR 4.9 billion were
represented by Italian government securities, mainly classified in
the AFS (Available for sale) portfolio, with a duration of
approximately 2.9 years, considering interest-rate risk hedging.
The valuation reserve on AFS securities, recorded among equity
items net of tax effects, was positive by EUR 32 million compared
to EUR -49 million at the end of June 2015. The negative reserve
relating
PRESS RELEASE
to Government bonds amounted to EUR -10 million compared to EUR -95
million at the end of June 2015. The liquidity position further
improved. The net balance of overall liquidity at three months is
currently equal to EUR 4.8 billion. The exposure to the ECB for
refinancing operations TLTRO (Targeted Longer-Term Refinancing
Operations) is unchanged and stands at EUR 1.5 billion. The
liquidity requirements LCR and NSFR were already well above the
minimum levels required by Basel 3 for 2018.
Equity and capital ratios As at 30 September 2015, equity
attributable to owners of the parent amounted to EUR 2.1 billion.
In pursuance of the transitional regime in force since 2014, the
common equity TIER1 (CET1), which includes the share of the profit
for the first half of 2015 allocated to reserves, amounted to EUR
1.9 million in connection with risk-weighted assets (RWAs) of EUR
16.2 billion. The capital ratios amounted to: - 11.7% for the
phased in Common Equity Tier1 ratio, - 11.7% for the phased in
Tier1 ratio, - 13.8% for the phased in Total capital ratio.
Income statement In the first nine months of 2015, the net interest
income stood at EUR 352 million, decreasing by 2.9%, compared to
EUR 363 million of the corresponding period last year. However, the
result for the third quarter of 2015 of EUR 114 million was
substantially unchanged compared to 3Q 2014. Net interest income
from customers showed a good performance, albeit the interest rates
remained at low levels, thanks to the positive effects of
persistent repricing actions of funding. The commercial spread
further improved, reaching 2.60%. Net fee and commission income
amounted to EUR 209 million, up by 5.7% year on year (+ 3.9% third
quarter of 2015 compared to 3Q14), due to the particularly strong
trend of the fee and commissions of the finance area (placement of
managed funds and bancassurance), which recorded an increase of
approximately 20.7%. Commissions for loan transactions +3.3% and
payment systems +1.1% are also recovering, whereas those for
current account management decreased - 4.4%. Net trading and
hedging income and profit on sales/repurchases stood at EUR 66
million, compared to EUR 111 million of the prior year,
characterised by non-recurring results. Net gains on
equity-accounted investments contributed by EUR 11 million compared
to EUR 13 million of the same period of 2014.
PRESS RELEASE
Operating income totalled EUR 656 million, down compared to EUR 701
million of the first nine months of 2014, considering, however,
that the figure includes non-recurring income from financial
activities. Operating costs totalled EUR 373 million decreasing by
2.7% compared to the corresponding period of 2014. The decrease is
more significant (-3.8%) with regard to personnel expenses, more
limited (-0.7%) for other administrative expenses. The operating
profit reached EUR 282 million, compared to EUR 317 million of the
first nine months of 2014. The comparison is also of little
significance, considering that the corresponding period last year
included non-recurring income from financial activities. Net
impairment losses on loans and receivables and other financial
assets totalled EUR 225 million. The cost of credit risk stood at
159 basis points and moved towards a phase of gradual
normalisation. Provisions for risks and charges stood at EUR 5.7
million, including the contribution to the Resolution Fund and to
the Deposit Guarantee Schemes envisaged by the European regulations
of EUR 6.2 million. Pre-tax profit from continuing operations
amounted to EUR 51 million, compared to EUR 19 million in the first
nine months of 2014, which were however considerably affected by
adjustment to loans, also related to the exercise of the Asset
Quality Review then in progress. Income taxes, estimated in EUR 5.7
million compared to EUR 9.2 million of the same period last year,
incorporate an extraordinary tax benefit related to ACE ("Aid to
economic growth" as per Article 1 of Italian Law Decree 201/2011)
of about 5 million on the top of the ordinary ACE benefit accrued
as at 30 September 2015 for EUR 6.5 million. Considering the gains
of EUR 20 million, net of taxes, related to the sale of 100% of
Finanziaria San Giacomo carried out in the second quarter of 2015
and of profit attributable to noncontrolling interests of EUR 3
million, the profit for the period was EUR 63 million, compared to
EUR 7 million recorded in the first nine months of 2014.
PRESS RELEASE
Current-year outlook The first positive signs from the real economy
increased in strength. Industrial production increased in
September, the recovery in consumption increased in strength:
retail sales were the best in two years. Unemployment decreased and
employment increased, also due to the measures adopted by the
Government, thus continuing to support household consumption. The
economic indicators confirm the strengthening of recovery in our
country. GDP increased for the first time from the beginning of the
total debt crisis by 1.5% year on year. The more favourable
economic conditions give greater visibility to the results of the
whole financial year. A stable recovery of loans to customers is
expected, in particular to Private individuals and SMEs, with
consequent positive effects on economic margins. The margins of
commercial banking will still be supported by the improvement of
spread from customers, with a further reduction in funding costs,
and by the increase in net fee and commission income, offsetting
the lower contribution from interest on securities portfolio.
REFORM OF COOPERATIVE BANKS: THE BOD AMENDMENTS TO THE ARTICLES OF
ASSOCIATION
APPROVES
THE
COMPULSORY
The Board of Directors approved today the amendments to Articles
27, 29 and 36 of the Articles of Association, in accordance with
the provisions of the 9th update to Circular 285 "Supervisory
Provisions for banks" of 9 June 2015 and of the implementing
instructions of the Supervisory Authorities. Since these were
changes to regulatory provisions, the amendments were decided by
the Board of Directors of the Bank, pursuant to Article 36,
paragraph 4, of the Articles of Association, after obtaining the
required authorisation of the Bank of Italy. The measures concerned
(i) the increase to 10 of the maximum number of proxies that can be
granted to each shareholder for attending the meetings of Creval
(Article 27), (ii) the repeal of the provision relating to the
shareholder quality for being eligible for the office of director
(Article 29), as well as (iii) the decision-making authority of the
Board of Directors, in order to ensure the calculation of the
shares (and of any other equity instruments issued) in the common
equity regulatory capital of the Bank, with regard to the
limitation or deferral, in all or in part, of the repayment of the
equity instruments belonging to the shareholder exercising the
right of withdrawal or being excluded (Article 36). After the entry
in the competent Companies Registry, the amended articles of
association will be published on the website of Creval. The
publication will be reported with a special notice.
PRESS RELEASE
Declaration of the Manager in charge of financial reporting The
Manager in charge of financial reporting, Simona Orietti, hereby
declares that, pursuant to Article 154-bis, paragraph 2 of the
Consolidated Finance Act, the accounting information provided in
this report matches the information reported in the company's
documents, books and accounting records. Signed Simona Orietti
The Managing Director, Miro Fiordi, will present the consolidated
results as at 30 September 2015 to the financial community, during
a conference call scheduled for today 10 November at 3.00 p.m.
(CET).
Financial statement highlights and the reclassified consolidated
Statement of financial position and Income Statement are set
below.
Company contacts Investor relations Telephone + 39 02 80637471
Email: investorrelations@creval.it Media relations Telephone +39 02
80637403 Email: mediarelations@creval.it
PRESS RELEASE
FINANCIAL STATEMENT HIGHLIGHTS AND PERFORMANCE INDICATORS
STATEMENT OF FINANCIAL POSITION thousands of EUR)
Loans and receivables with customers Financial assets and
liabilities Equity Investments Total assets Direct funding from
customers Indirect funding from customers of which: - Managed funds
Total funding Equity 6,551,354 33,621,085 2,104,105 6,602,765
34,178,168 2,010,927 5,848,254 32,708,901 2,020,106 -0.78% -1.63%
4.63% 12.02% 2.79% 4.16%
(in
30/09/2015
30/06/2015
31/12/2014
change (1)
1.68% -8.67% 3.12% -0.75% -1.56% -1.75%
change (2)
-0.54% -25.04% -84.44% -6.78% 3.91% 0.85%
18,903,168 4,901,787 31,248 26,859,928 21,556,385 12,064,700
18,590,813 5,367,230 30,303 27,062,432 21,898,623 12,279,545
19,004,863 6,539,442 200,797 28,813,556 20,745,569 11,963,332
(1) Calculated compared to 30/06. (2) Calculated compared to 31/12
of the previous year. As at 30 September 2015, the investment in
Istituto Centrale delle Banche Popolari was classified as "150.
Non-current assets held for sale and disposal groups" by 18.39%,
whereas the remaining 2% was included under item "100. Equity
investments".
SOLVENCY RATIOS Common Equity Tier 1 capital/Risk-weighted assets
(CET1 capital ratio) Tier 1 capital/Risk-weighted assets (Tier1
capital ratio) Total own funds/Risk-weighted assets (Total capital
ratio)
30/09/2015 (*) 11.7% 11.7% 13.8%
30/06/2015 11.5% 11.5% 13.8%
31/12/2014 11% 11% 14%
(*) Figures calculated provisionally pending the submission to the
Supervisory Authority.
FINANCIAL STATEMENT RATIOS Indirect funding from customers / Total
funding Managed funds / Indirect funding from customers Direct
funding from customers / Total liabilities Customer loans / Direct
funding from customers Customer loans / Total assets
30/09/2015 35.9% 54.3% 80.3% 87.7% 70.4%
30/06/2015 35.9% 53.8% 80.9% 84.9% 68.7%
31/12/2014 36.6% 48.9% 72.0% 91.6% 66.0%
PRESS RELEASE
CREDIT RISK
30/09/2015
30/06/2015
31/12/2014
change (1) 2.01% 0.72%
change (2) 10.70% 2.29% 5.20%
Net bad loans (in thousands of EUR) Other net doubtful loans (in
thousands of EUR) Net non-performing loans (in thousands of EUR)
Net bad loans / Loans and receivables with customers Other net
doubtful loans / Loans and receivables with customers Net
non-performing loans / Loans and receivables with customers
Coverage ratio of bad loans Coverage ratio of other doubtful loans
Coverage ratio of non-performing loans Cost of credit (*)
1,219,889 2,138,084 3,357,973 6.5% 11.3% 17.8% 55.6% 20.1% 38.1%
1.59%
1,195,809 2,138,160 3,333,969 6.4% 11.5% 17.9% 55.8% 19.0% 37.6%
1.71%
1,101,939 2,090,157 3,192,096 5.8% 11.0% 16.8% 56.0% 18.9% 37.2%
3.41%
(1) Calculated compared to 30/06. (2) Calculated compared to 31/12
of the previous year. (*) Calculated as the ratio between net
impairment losses on loans and year-end loans.
ORGANISATIONAL DATA
30/09/2015
30/06/2015
31/12/2014
change (1) 0.07% -1.11%
change (2) -3.65% -1.11%
Number of employees Number of branches (1) Calculated compared to
30/06. (2) Calculated compared to 31/12 of the previous year.
4,119 533
4,116 539
4,275 539
OTHER FINANCIAL INFORMATION
01/01/2015 30/09/2015 57.0% 69
2014
01/01/2014 30/09/2014 54.8% 68
Cost/Income ratio Personnel expenses(*)/Number of employees
55.8% 69
2014 figure calculated net of non-recurring expenses related to the
implementation of the "Solidarity Fund" and of the impairment of
the customer lists; figure of the first nine months of 2014
restated in accordance with the provisions of IFRS 5. (*) Costs non
chargeable to employees removed.
PRESS RELEASE
RECLASSIFIED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS (in thousands of EUR) 30/09/2015 151,563 89,049 5,101,448
793,524 18,903,168 31,248 661,188 176,947 951,793 26,859,928
31/12/2014 194,289 61,787 6,789,606 839,489 19,004,863 200,797
663,968 3,191 1,055,566 28,813,556 change -21.99% 44.12% -24.86%
-5.48% -0.54% -84.44% -0.42% n.s. -9.83% -6.78%
Cash and cash equivalents Financial assets held for trading
Available-for-sale financial assets Loans and receivables with
banks Loans and receivables with customers Equity Investments
Property, equipment and investment property and intangible assets
(1) Non-current assets held for sale and disposal groups (3) Other
assets (2) Total assets
(1) Include the items "120. Property, equipment and investment
property" and "130. Intangible assets". (2) Include the items "140.
Tax assets" and "160. Other assets". (3) As at 30 September 2015,
the investment in Istituto Centrale delle Banche Popolari was
classified as "150. Non-current assets held for sale and disposal
groups" by 18.39%, whereas the remaining 2% was included under item
"100. Equity investments". LIABILITIES AND EQUITY Due to banks
Direct funding from customers (1) Financial liabilities held for
trading Hedging derivatives Liabilities associated with disposal
groups Other liabilities Provisions for specific purpose (2) Equity
attributable to non-controlling interests Equity (3) Total
liabilities and equity (in thousands of EUR) 30/09/2015 1,834,858
21,556,385 2,483 286,227 868,430 203,369 4,071 2,104,105 26,859,928
31/12/2014 4,837,374 20,745,569 3,233 308,718 573 635,058 258,471
4,454 2,020,106 28,813,556 change -62.07% 3.91% -23.20% -7.29%
-100.00% 36.75% -21.32% -8.60% 4.16% -6.78%
(1) Include the items "20. Due to customers" and "30. Securities
issued". (2) Include the items "80. Tax liabilities", "110.
Post-employment benefits" and "120. Provisions for risks and
charges". (3) Includes items "140. Valuation reserves", "170.
Reserves", "180. Share premium reserve", "190. Share Capital",
"200. Treasury shares" and "220. Profit for the period".
PRESS RELEASE
RECLASSIFIED CONSOLIDATED INCOME STATEMENT
ITEMS (in thousands of EUR) Q3 2015 01/01/2015 30/09/2015 Q3 2014
01/01/2014 30/09/2014 change (6) -0.19% 3.87% -85.08% -28.58% 0.28%
-4.07% -5.22% -0.62% -3.08% -3.54% -4.88% -29.14% 79.86% -99.75%
change (7) -2.94% 5.72% 50.64% -18.10% -40.71% 9.76% -6.41% -3.76%
-0.65% -4.23% -2.74% -10.87% -26.66% 24.82% -99.71%
Net interest income Net fee and commission income Dividends and
similar income Net gains on equity-accounted investments (1) Net
trading and hedging income (expense) and profit (loss) on
sales/repurchases Other operating net income (5) Operating income
Personnel expenses Other administrative expenses (2)
Depreciation/amortisation and net impairment losses on property,
equipment and investment property and intangible assets (3)
Operating costs Operating profit Net impairment losses on loans and
receivables and other financial assets Net accruals to provisions
for risks and charges Net gains on sales of investments (4) Pre-tax
profit from continuing operations Income taxes Post-tax profit from
continuing operations Profit (loss) from discontinued operations
Profit for the period attributable to non-controlling interests
Profit for the period
114,361 67,868 1 851 15,157 4,612 202,850 (72,070) (42,204) (9,044)
(123,318) 79,532 (66,859) (1,858) 36 10,851 1,809 12,660 (783)
11,877
351,894 209,148 1,990 10,942 65,877 15,858 655,709 (216,836)
(130,051) (26,573) (373,460) 282,249 (225,174) (5,713) 42 51,404
(5,745) 45,659 20,070 (2,985) 62,744
114,584 65,340 5,705 21,223 4,599 211,451 (76,041) (42,469) (9,331)
(127,841) 83,610 (94,351) (1,033) 14,488 2,714 2,380 5,094 (401)
(638) 4,055
362,561 197,828 1,321 13,361 111,110 14,448 700,629 (225,310)
(130,906) (27,747) (383,963) 316,666 (307,043) (4,577) 14,331
19,377 (9,162) 10,215
n.s. 165.28% -23.99% 148.53% -37.30% n.s. n.s. 38.64% n.s.
(863) -100.00% (2,153) 7,199 22.73% 192.90%
(1) Net gains on equity-accounted investments include net
gains/losses on equity-accounted investments included in item 240
"Net gains on investments". (2) Other administrative expenses
include recoveries of taxes and other recoveries recognised in item
220 "Other operating net income" (EUR 43,504 thousand in the first
nine months of 2015 and EUR 43,064 thousand in the first nine
months of 2014). (3) Depreciation/amortisation and net impairment
losses on property, equipment and investment property and
intangible assets include items 200 "Depreciation and net
impairment losses on property, equipment and investment property",
210 "Amortisation and net impairment losses on intangible assets"
and the accumulated depreciation of costs incurred for leasehold
improvements, included in item 220 "Other operating net income"
(EUR 2,104 thousand in the first nine months of 2015 and EUR 2,842
thousand in the first nine months of 2014). (4) Net gains on sales
of investments include the residual amount of item 240 "Net gains
on investments" not included among profit of equity-accounted
investments, non-recurring income deriving from the conferment of
the business unit in Alba Leasing recognised in item 220 "Other
operating net income" (EUR 14,305 thousand as at 30 September
2014), together with item 270 "Net gains on sales of investments".
(5) Other income and costs correspond to item 220 "Other operating
net income" net of the above reclassifications. (6) Calculated as
compared to Q3 of the previous year. (7) Calculated as compared to
01/01-30/09 of the previous year. The corresponding prior year
figures were restated, in accordance with the provisions of IFRS 5,
as a result of the agreement signed on 22 December 2014 with the
Cerved Group whose subject matter was the development of a
long-term industrial partnership for the management of
non-performing loans. This agreement also included the sale of the
subsidiary Finanziaria San Giacomo S.p.A. that took place on 1
April 2015.