Draft 2012 Financial statements approved
Draft separate and consolidated financial statements for the year ended 31 December 2012 approved • The overall consolidated net result of the period negative for € 32.6 million, which falls to € 11.3 million after minority interests. • The result is influenced by high loan loss provisions following the application of an extremely prudent valuation approach with a view to significantly raising the coverage of doubtful loans. • The Group's financial solidity is confirmed with a Core Tier 1 ratio of 8.27%, low leverage and a good liquidity position. • Core revenues have held up well with a good result from financial activities. • Costs are well down (-3%) as a result of structural action to improve efficiency. Net interest and other banking income of € 2,154.9 million, an increase of 2.6% on the end of 2011: net interest income has remained reasonably stable (-1.6%) despite the sharp fall in short-term market interest rates, whereas net commissions have increased significantly (+2%) and the net result from financial activities is positive Operating profit of € 1,182.9 million (-32.4% year-on-year) penalised by a significant increase in loan adjustments due to the continuing economic crisis Overall cost of credit for the year amounted to 199 bps compared with 71 bps in 2011 Significant increase in the coverage of overall doubtful loans to 36.8% and of non-performing loans to 54.9% (33.8% and 52.8% respectively at the end of 2011) Operating costs down by 3% on 2011 thanks to effective cost management and containment policies Cost/income ratio of 56.0%, a considerable decrease from 59.1% the previous year Continuation of the rationalization and simplification of the Group, in line with the objectives of the Business Plan, including the merger of Meliorbanca with the Parent Company |