Banca Lombarda e Piemontese
Annual report and consolidated financial statements
2000
BANCA LOMBARDA E PIEMONTESE SpA Capital stock: approved € 286,694,978 subscribed and paid-in: € 286,550,978 Reserves: € 852,562,710 Brescia Companies Register no. 135 Registered office and head office: Via Cefalonia 62, Brescia, Italy Parent Bank of the Banca Lombarda e Piemontese Banking Group Member of the Interbank Deposit Guarantee Fund
Report and consolidated financial statements of the Group Report and financial statements of Banca Lombarda e Piemontese S.p.A.
as of December 31, 2000 1
CONTENTS
KEY FIGURES 5 7 NOTICE OF CALLING TO THE ORDINARY AND EXTRAORDINARY GENERAL MEETING 9 BOARD OF DIRECTORS, BOARD OF STATUTORY AUDITORS AND SENIOR MANAGEMENT 10 POWERS OF THE BOARD OF DIRECTORS, EXECUTIVE COMMITTEE AND SENIOR MANAGEMENT REPORT ON OPERATIONS AND CONSOLIDATED FINANCIAL STATEMENTS OF 13 THE BANCA LOMBARDA E PIEMONTESE GROUP 14 REPORT ON OPERATIONS 14 MACRO-ECONOMIC SCENARIO 14 The international context 16 The financial markets 16 The banking industry 18 ACTIVITIES OF THE BANCA LOMBARDA E PIEMONTESE GROUP 19 Group structure 20 The acquisition of Banca Regionale Europea 21 The marketing strategy and innovation in products and channels 26 Equity investments 32 System of internal controls 33 Risk management 37 Transactions with Group companies and related parties 37 Consolidated companies 40 GROUP PERFORMANCE 40 Results for the year 41 Reclassified consolidated balance sheet 42 Reclassified consolidated statement of income 43 Balance sheet 46 Statement of income 48 Performance of Group companies 54 RATINGS 55 SIGNIFICANT SUBSEQUENT EVENTS 56 FUTURE OUTLOOK 57 REPORT OF THE INDEPENDENT AUDITORS 61 CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2000 62 Consolidated balance sheet 65 Consolidated statement of income 66 EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 67 Introduction 68 Part A: Accounting policies 80 Part B: Information on the consolidated balance sheet 116 Part C: Information on the consolidated statement of income 124 Part D: Other information 125 ATTACHMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS REPORT ON OPERATIONS AND FINANCIAL STATEMENTS OF BANCA LOMBARDA 143 E PIEMONTESE 144 REPORT ON OPERATIONS 146 ACTIVITIES OF BANCA LOMBARDA E PIEMONTESE 146 Resultat for the year 149 Balance sheet 150 Statement of income 151 Intercompany and related party transactions 153 Other information 156 SIGNIFICANT SUBSEQUENT EVENTS AND FUTURE OUTLOOK PROPOSAL FOR APPROVAL OF THE FINANCIAL STATEMENTS AND ALLOCATION 157 OF NET INCOME 159 REPORT OF THE BOARD OF STATUTORY AUDITORS 165 REPORT OF THE INDEPENDENT AUDITORS FINANCIAL STATEMENTS OF BANCA LOMBARDA E PIEMONTESE AS OF DECEMBER 31, 2000 169 170 Balance sheet 173 Statement of income 174 EXPLANATORY NOTES 175 Introduction 176 Part A: Accounting policies 185 Part B: Information on the balance sheet 214 Part C: Information on the statement of income 221 Part D: Other information 225 ATTACHMENTS TO THE FINANCIAL STATEMENTS
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738 BANKING BRANCHES Banco di Brescia Banca Regionale Europea Banca di Valle Camonica Banca di Genova e San Giorgio Banca Cassa di Risparmio di Tortona as of 12.31.2000
378 255 55 20 30
(billions of lire)
KEY FIGURES
BANCA LOMBARDA E PIEMONTESE GROUP
2000
1999 (pro forma)*
Direct customer deposits 37,300 Indirect customer deposits (at market value) and mathematical reserves 73,526 Total customers’ funds under administration 110,826 Loans to customers 33,898 Capital and reserves (prior to AGM resolutions and excluding net income) 2,299 Income from operating activities 726 Net income for the year 320 Number of employees 7,247 Number of branches in operation 738 FINANCIAL INDICATORS Roe 17.6% Margin on services/Net interest and other banking income 47% Cost-Income ratio 60% Net interest and other banking income/ Ave. no. of employees (Lire/mn) 339
34,036 68,442 102,478 30,250 1,864 381 176 7,255 719 14% 44% 68.7% 293
* the “historical” 1999 figures have been adapted to take account of the acquisition of 50.1% of the Banca Regionale Europea Group in March 2000.
BANCA LOMBARDA E PIEMONTESE S.p.A.
2000
1999
Equity investments Total assets Capital and reserves (prior to AGM resolutions and excluding net income) Net income for the year Dividend per share (lire)
4,120 8,701
2,141 4,531
2,194 291 650
1,761 254 550
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NOTICE OF CALLING TO THE ORDINARY AND EXTRAORDINARY GENERAL MEETING
The Stockholders are invited to the Ordinary and Extraordinary General Meeting to be held on April 26, 2001 at 4 p.m. at the head office in Via Cefalonia 62, Brescia in first calling and, if needed, in second calling at the Conference Center of the President Hotel, Via Roncadelle 48, Castelmella (BS), on Friday, April 27, 2001 at 10 a.m., to vote on the following AGENDA: ORDINARY PART 1) Financial statements as of December 31, 2000; Board of Directors’ report on operations and the report of the Board of Statutory Auditors; related resolutions. 2) Allocation of net income for 2000. 3) Appointment of independent auditors, in accordance with Art. 159 of Legislative Decree 58/98, to audit the statutory and consolidated financial statements, the interim report of Banca Lombarda e Piemontese S.p.A., and the consolidated interim report for the years 2001, 2002 and 2003. 4) Third-party liability insurance for the directors and statutory auditors of the Banca Lombarda e Piemontese Group, and accident insurance for the directors and statutory auditors of Banca Lombarda e Piemontese S.p.A.. EXTRAORDINARY PART 1) Authorization of the Board of Directors to raise capital stock on one or more occasions, excluding option rights in accordance with Art. 2441.5 of the Italian Civil Code, through the issue of up to 1,350,000 ordinary shares of Banca Lombarda e Piemontese S.p.A., par value Euro 1 each with regular dividend rights, serving a stock option plan reserved to the managing directors of the subsidiaries of Banca Lombarda e Piemontese and to the financial consultants of Banca Lombarda e Piemontese S.p.A. 2) Proposal to amend Art. 6 of the by-laws (change in capital stock due to the increase described above). 3) Authorization of the directors, with separate signing power, to make any changes required by the authorities as long as they do not substantially alter the resolutions in question. BANCA LOMBARDA E PIEMONTESE S.p.A. Chairman of the Board of Directors
Stockholders will be allowed to participate in the meeting if, at least five days prior to the date of the meeting, they have asked the authorized intermediaries (in the case of shares no longer in printed format managed by Monte Titoli S.p.A.) for the certificate required by current legislation. Attendance at the meeting (in the case of shares that are still in printed format) depends exclusively on the shares being delivered to an authorized intermediary in good time, within the above deadline, to allow them to be entered into the centrally
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administered electronic system in accordance with current legislation and the required certification to be issued. The documentation referring to the items on the agenda will be available to the stockholders, who are entitled to obtain a copy, and to the general public at the Bank’s head office and at Borsa Italiana S.p.A. by the deadline established by law. Specifically, the draft financial statements and the consolidated financial statements will be available at the Bank’s head office and at Borsa Italiana S.p.A. as from April 2, 2001. Brescia, March 30, 2001
The notice of calling to the AGM was published in the Gazzetta Ufficiale, Part II no. 70 of March 24, 2001.
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BOARD OF DIRECTORS
DIRECTORS AND OFFICERS
President
Gino Trombi *
Senior Vice President
Alberto Folonari *
Vice President
Giovanni Bazoli *
Managing Director
Corrado Faissola *
Secretary
Mario Cattaneo
Directors
Luigi Bellini, Piero Bertolotto*, Giuseppe Camadini *, Mario Cera, Alessandro Fenaroli, Virginio Fidanza, Attilio Franchi, Ugo Gussalli Beretta, Adolfo Lombardi, Giuseppe Lucchini, Felice Martinelli, Giovanni Minelli *, Francesco Passerini Glazel, Angelo Radici, Pierfrancesco Rampinelli Rota, Luciano Sorlini * * members of the Executive Committee
BOARD OF STATUTORY AUDITORS President
Sergio Pivato
Auditors
Angelo Coen, Filippo Rovetta
Alternate auditors
Vincenzo Broli, Marco Confalonieri
SENIOR MANAGEMENT
General Manager
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Bruno Degrandi
POWERS OF THE BOARD OF DIRECTORS, EXECUTIVE COMMITTEE AND SENIOR MANAGEMENT
In accordance with CONSOB’s recommendation no. 97001574 of February 20, 1997, the following disclosure describes the powers of the Board of Directors and senior management. This report lists the names of the Board members and the positions within the Bank held by each director. Pursuant to art. 18 of the by-laws, the Board of Directors is responsible for the ordinary and extraordinary administration of the Bank. To this end, it has the widest possible powers, except for those that by law must be exercised by the Stockholders in General Meeting. In the event of specific, individual matters of ordinary and extraordinary administration, the Board can delegate signature power to one or more of its members; and for certain categories of acts and matters of ordinary administration, it can even grant proxies to people who are not employed by the Bank. To facilitate the Bank’s normal operations, the Board can authorize employees to sign individually in relation to transactions decided upon by the Board. Pursuant to Art. 20 of the by-laws, the Board of Directors can appoint an Executive Committee with five to eight members, and delegate powers to it in accordance with Art. 18 of the by-laws. At present, the Executive Committee is made up of eight members appointed by board resolutions on January 29, 1999 and May 9, 2000. The Board of Directors has attributed to the Executive Committee all powers for the ordinary administration of the Bank, except for some that are the exclusive responsibility of the Board. In urgent cases, the Executive Committee can take certain decisions that are normally the responsibility of the Board of Directors. Any such decisions must be reported to the Board at its next meeting. Pursuant to Art. 21 of the by-laws, the President, or whoever is taking his place, legally represents the company versus third parties and in court, at any level of justice, with the right to appoint attorneys and legal counsel. The President, on the proposal of the Managing Director, if one has been appointed, can – in urgent cases – take decisions that are normally the responsibility of the Board of Directors and of the Executive Committee; any such decisions must be reported to the Board at its next meeting. The President allocates and distributes the amounts set aside by way of donations, according to the indications and manner decided by the Board of Directors. The Board of Directors has delegated the Managing Director the power to supervise the ordinary administration of the Bank, with the assistance of the General Manager, in compliance with guidelines formulated by the Board of
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Directors. He also has powers concerning operational matters, lines of credit, transactions in securities, personnel and organization, and the coordination of the activities of the Parent Bank and the companies forming part of the Group. With regard to the Parent Bank’s consent to the resolutions taken by Group companies in accordance with Art. 136 of Legislative Decree 385/93, the Board of Directors has given the President, the Vice President and the Managing Director the power to give such consent, with separate signing power, with the exception of resolutions taken by Banco di Brescia. Because of the overlapping positions of President, Vice President and Managing Director between Banca Lombarda and Banco di Brescia, the power to give consent to the resolutions taken by Banco di Brescia has been granted, with separate signing power, to Directors Mario Cattaneo, Alessandro Fenaroli and Giovanni Minelli. In compliance with Art. 22 of the by-laws, the General Manager is the chief executive officer, exercising his duties within the scope of the powers granted by the Board of Directors. The Board of Directors is periodically informed about the activities performed by persons to whom it has granted powers. The Vice President, Giovanni Bazoli, has been appointed by the Board of Directors as the liaison officer for the Banca Intesa stockholder syndicate.
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Report on operations and consolidated financial statements of the Banca Lombarda e Piemontese Group
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MACRO-ECONOMIC SCENARIO
REPORT ON OPERATIONS
The international context The year 2000 was a period of growth for the international economy. GDP in the United States rose by 5% on 1999, exceeding the already swift pace it had achieved in recent years. During the second half of 2000, however, the U.S. economy showed signs of hesitation, raising fears of the first abrupt halt in what has become a decade-long period of expansion. The “negative wealth effect,” caused by falling stock prices, began to erode the confidence of American households. During the last three months of 2000, industrial output and business investments fell off sharply, accentuating concerns of a slowdown. Other indicators confirmed the change of climate in the U.S. The labor productivity index during the last quarter rose by 2.4% year-on-year, far lower than previous months’ growth rates, which had assured the country good price control along with its lively economic growth. U.S. inflation came to about 3.4% for the year, but in January 2001 it hit 3.7%, most likely because of the substantial rise in labor costs per unit of product. As growth prospects dampened, the top American banks tightened their corporate lending policies, venture capital lost momentum, and there was a dramatic reduction in IPOs. In an effort to stimulate investments and consumer demand, the Federal Reserve cut interest rates at the start of 2001 and the new White House administration announced a tax cutting plan. These measures should have positive effects as early as the second half of this year. Whether suddenly or more gradually, the changes in the U.S. economy did not fail to affect the world’s other economic regions. In Japan, declining confidence and the downturn in foreign demand led companies to shy away from investments, which had been driving the country’s recovery. Weak demand, especially from consumers, has caused deflation in Japan since 1999. This makes it impossible for real interest rates to drop any further, generating what economists call a “liquidity trap”. At 5.8%, industrial output was much greater than in 1999 (0.8%), but began to decelerate rapidly in the third quarter. The jobless rate (4.7%) was stable with respect to the previous year, showing a
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slight increase starting in November. The emerging Asian economies did well, with average GDP growth of about 7%. However, the reduction in foreign demand that is likely to result from the slowdown in the U.S. economy could reduce these countries’ prospects for future growth. The economies in South America enjoyed a solid expansion and 4% GDP growth. The pace was especially lively in Mexico (+7%), which is the country most directly exposed to the downturn in the United States. In the euro zone, year-on-year GDP growth was around 3.5%, well above the +2.5% achieved in 1999. During the last quarter of the year, the worsening international context and the deterioration of household and business confidence caused a slowdown in the growth of industrial output, which averaged below the pace in the first six months. In December the index made a sound recovery, and together with the drop in unemployment, this lessened the uncertainty as to the size of the slowdown forecast for 2001. GDP growth in the euro zone was driven by both internal demand and exports. The latter, favored by the depreciation of the euro, compensated during the second half of the year for the rise in imports, and the trade surplus narrowed during the first six months but then stabilized as from July. On the whole, there was a reduction in the net outflow of capital from the euro zone. Specifically, net outflows for industrial investments fell substantially, more than offsetting the rise in net outflows for security investments, especially equities. The economic expansion that euro zone countries enjoyed also helped improve the national public accounts. The debt/GDP ratio (including Greece, which was recently admitted to the single currency) fell by about 2 percentage points with respect to 1999 (72%). On more than one occasion, however, the European Central Bank stated the urgent need to reform national pension systems if Europe is to continue down the road to recovery. The growth in output led to a one-point reduction in unemployment, which dropped from 9.6% as of December 1999 to 8.7% at the close of 2000. Average inflation was 2.3%, a sharp increase on 1999 (1.1%). The acceleration was caused chiefly by the rise in energy prices, whose impact peaked in November when the consumer price index reached 2.9%. In Italy, GDP growth of 2.9% kept the country at a substantial distance from the euro-zone figure of 3.5%. Investments and exports were the most dynamic components of demand, while the increase in consumption was more modest.
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The production sectors that enjoyed the highest growth rates were those associated with the telecommunications, residential construction and transport industries. Italy’s trade surplus gradually declined, due mainly to the rising cost of imported energy. In 2001, Italy’s growth is likely to stay below the euro-zone average. The negative impact of the U.S. economy could be counterbalanced by an upturn in domestic demand. Inflation in Italy was also pushed up by rising energy costs; the December figure of 2.8% compares with a euro-zone average of 2.6%.
The financial markets Despite expectations of a narrowing growth spread between the European Monetary Union and the United States, the euro did not recover against the dollar as hoped. Instead, it gradually weakened throughout the year, falling from $1.011 at the end of 1999 to $0.897 a year later and losing more than 11% for the period. The surge in inflation and the acceleration in monetary aggregates led the European Central Bank to touch up interest rates several times. For the year, the main refinancing rate increased by 175 bp. During the first half of the year, the interest rate curve was gradually flattened, but the trend reversed starting in September. At year end, the spread between interest rates on 10-year government bonds in the euro zone and on the corresponding bonds in the United States had slimmed to just 16 basis points. The uncertainty that affected the macroeconomic context throughout the year did not help the stock markets, which were highly volatile and performed badly during the latter part of the year. By December, the world’s principal stock markets had lost ground with respect to ‘99. The sectors suffering the greatest losses were energy, technology and telecommunications. The Italian Stock Exchange managed to close the year with a gain. The MIB Index went up 5.4%, while capitalization grew to Euro 790 billion and the number of listed companies continued to rise.
The banking industry In the euro zone, the number of financial and monetary institutions decreased by about 5%. In Italy, as of December 2000 there were 861 such institutions, 29 less than at the end of ‘99.
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Once again this year, Italian banks witnessed disparate growth rates for lending and for funding. Bank loans continued to accelerate, with year-on-year growth of about 13% in December. Short-term loans grew the fastest, as companies required more working capital and became involved in extraordinary finance operations. Medium- and long-term loans also picked up speed, fuelled by the demand for home mortgages. As for the various industrial sectors, bank loans grew most notably in the fields of telecommunications, transport and energy. Net non-performing loans continued their downward trend, accounting for about one percent less of the total lending volume. On the funding side, deposits by resident customers gained 4% for the year. More specifically, current accounts decelerated, while repurchase agreements enjoyed steady growth thanks to the rise in interest rates. With an increase of 10.7%, bonds were still one of the fastest-growing components of direct funding. The average cost of bank loans rose by over 130 bp in 2000. The average remuneration on deposits grew by about 70 bp, so the spread between lending and borrowing rates expanded by nearly 70 bp for the year. Indirect funding was essentially stable. Asset management still has attractive prospects for growth, but seems to have reached a plateau. The volatility on the stock markets and the rise in interest rates throughout the euro zone did not encourage the performance of the various investment lines. Italian-managed collective investment schemes based in Italy and abroad had assets of L. 1,065,000 billion at year end, an increase of 2% for the year. This is the net effect of a 4.6% decline for collective investment schemes based in Italy (L. 881,000 billion) and a steep acceleration for foreign-based funds and SICAVs (open-end investment companies), which nearly doubled their assets (+90.6%) to L. 117,000 billion. The distribution channel that contributed the most to net subscriptions was the financial consultancy network, which accounted for some two thirds of that gain. The traditional banking channels continued to sell insurance policies at a lively pace, and confirmed their leadership in terms of volumes under administration. As for the newer channels, much progress was made with virtual banking, online trading and Internet banking.
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ACTIVITIES OF THE BANCA LOMBARDA E PIEMONTESE GROUP
During the course of 2000, the Banca Lombarda Group carried out its activities in accordance with the progressive alignment of the various Group companies with the organisational model adopted. This entailed adjusting the structure to the formats of the multifunctional model and to the distinctive elements of a federated Group. The functions of strategy-setting, operational and risk control, administration, marketing and finance have been concentrated within the Parent Bank, Banca Lombarda. And since January 1, 2001, all of the infrastructure activities, information system, back office, procurement, logistics and general services are handled by Lombarda Sistemi e Servizi. This ensures: • standardization of strategy; • effectiveness in controlling and monitoring financial and operating risks; • cost savings by making the most of economies of scale and reducing duplicated tasks. The start-up of Lombarda Sistemi e Servizi is another important step in the reorganization of central services. The Group’s product companies and bank networks operate with a degree of independence that is designed to: • ensure consistency with the strategy set by the Parent Bank; • further sector and business specialization skills, representing the critical success factors characterizing each individual business area; • optimize commercial effectiveness and the ability of the sales networks to develop customers and customer loyalty. The commercial banks have separate legal status and maintain their original trademarks in order to preserve their historic link with local communities. The Group’s federal model also enhances its ability to absorb new members, as demonstrated by its rapid growth over the last two years with the acquisition of Cassa di Risparmio di Tortona and Banca Regionale Europea. The various measures to consolidate the organizational and IT structures of the bank networks were completed during the course of 2000. The information system that will be used by all Group banks was finalized and is now up and running at Banco di Brescia, Banca Regionale Europea, Banca di Valle Camonica and Banca di Genova e S. Giorgio. Cassa di Risparmio di Tortona is expected to migrate to the new system by the end of 2001. The information system used in the Finance Area was upgraded with the addition of new applications (on-line and after hours trading, Sicavs and derivatives, asset management, etc.), as was the system used by the Loans area, with a view to ongoing improvement in our ability to provide excellent customer service. The finishing touches were also put on the Parent Bank’s IT system for managing the Bank’s own securities and derivatives portfolio and the securities desk in Milan was rendered operative. Access to equity and bond markets through the Parent Bank was extended to all Group banks (with the exception of Cassa di Risparmio di Tortona. Interventions in the International area will be completed during the second half.
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The following schedule sets out the Group’s structure as of March 2001, showing all of the main companies in the Group as well as the more important equity investments. Banca Lombarda e Piemontese S.p.A. GROUP
Asset Management CAPITALGEST SGR S.p.A
Banks BANCO DI BRESCIA S.p.A
100%
SOLOFID S.p.A SIFRU Gestioni SIM S.p.A Parabanking and finance companies
BANCA DI VALLE CAMONICA S.p.A
SBS Leasing SpA CBI Factor SpA
BANCA REGIONALE EUROPEA S.p.A
50.11%
100%
100%
8.72% 74.24%
100%
100%
60.00%
BANCA CASSA DI RISPARMIO DI TORTONA S.p.A
98%
85.16%
SILF SrL Mercati Finanziari Sim S.p.A.
100%
Banca Lombarda Preferred Capital Co. LLC
100%
Other companies
80.30%
BANCA DI GENOVA E S. GIORGIO S.p.A
SBIM S.p.A. 2%
1%
84.15%
BANCA LOMBARDA International S.A.
SOLIMM S.p.A. Lombarda Sistemi e Servizi S.p.A.
95%
GE.SE.RI. S.p.A. in liquidazione
51%
Andros S.r.l.
100%
Immobiliare CRT S.r.l.
14.85%
Other equity investments Grifogest S.p.A. Lombarda Vita S.p.A. Banca Intesa S.p.A.
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49.00% 49.90% 2.67%
100%
98%
100%
THE ACQUISITION OF BANCA REGIONALE EUROPEA The acquisition of Banca Regionale Europea (BRE Banca) was completed on March 9, 2000. It was then consolidated as part of the Banca Lombarda Group at the end of June. The operation is of particular strategic importance as the Group now ranks as the tenth largest banking group on the Italian market, allowing it to expand into economically important marketplaces adjacent to its own. Banca Regionale Europea’s integration into the Group in accordance with its typical federal model promises important economic synergies in terms of cost savings and revenue growth. Costs will be reduced by changing Banca Regionale Europea’s structure to the model already adopted by the Group. Revenue-related synergies will be achieved by making available to Banca Regionale Europea’s network the products and services offered by the Group (Banca Regionale Europea branches already started offering some of the Group’s products during 2000). The business plan for the integration of Banca Regionale Europea envisaged three main interventions during 2000: • redefinition of the organizational structure at head office (organization chart, rules and procedures, work processes) according to the bank network model; • migration of the information system to the platform used by other Group banks, with consequent upgrade of the hardware at the sales network and at head office; • start-up of the new distribution model at the sales network to serve the “Corporate”, “Retail” and “Private” customer segments in different ways. Redefinition of the organizational structure During the course of the second half of 2000, various top management functions of Banca Regionale Europea were centralized at the Group’s offices. In particular, the functions that were centralized at Banca Lombarda included strategy-setting, planning, operational control and risk management, administration and certain operating aspects of banking finance and international relations. In the first few months of 2001, Lombarda Sistemi e Servizi, the Group’s service company, took over the planning functions for the process management and coordination of the information and infrastructure systems. In line with its mission as a commercial network, Banca Regionale Europea still carries on directly its traditional banking activity in deposits and loans, as well as performing local auditing functions, human resource management and control over credit quality. Migration of the information system The start-up of the new information system was a vital step in the develop-
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ment of the new distribution model. The change of platform took place at the end of November with a “big bang” approach. The migration was carried out according to plan and the outcome was positive, as there was no interruption in branch or head office operations. And the service levels of the new system are in line with expectations. Start-up of the new distribution model To further optimize the Bank’s commercial penetration, we launched a project to divisionalize the sales structure. This entails the branches specializing in two macro areas (Corporate Customers and Retail Customers), with further subdivisions into more specific segments. For each of the segments identified, we will create dedicated account managers who will have total responsibility for the marketing of all of the Bank’s product range to the customers in the portfolio assigned to them. By early 2001, the Corporate Units that will handle companies were already up and running. During the first half of 2001 the distribution model will also be extended to the Retail branches by setting up Zones and introducing the new branch organizational structure. The plan for the divisionalization of the sales network will be completed by creating a Private Banking division.
THE MARKETING STRATEGY AND INNOVATION IN PRODUCTS AND CHANNELS Rapid market changes and the introduction of new technologies, which transform the ways that businesses and customers communicate and interrelate, persuaded us to set up a new Marketing Strategy Development area within the Parent Bank. This new area coordinates what the Group is offering by way of products and services, fostering a process of ongoing innovation in response to market trends in constant evolution. In addition to strategic marketing for the Group, this area has also been assigned the mission of strengthening and enhancing the commercial role of the non-traditional sales networks, i.e. the virtual channels and financial consultants. In the Banca Lombarda Group’s sales strategy • the virtual channels are meant to perform a complementary role to that of the branches and financial consultants, integrating the services that they offer and facilitating relations with customers; • the network of financial consultants takes on a fundamental role in the acquisition of additional market shares, especially in those parts of the country where the Group does not have any traditional branches. The development of new sales and marketing channels in 2000 gave a further
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boost to the innovation of products and services. The innovation program that we prepared functions according to the profiles of the customer segments under examination and the methods of distribution, adjusting the pricing
and characteristics of the product to the specific sales channel.
The lines of products and services on offer The main innovations in the Group’s product lines were in the areas of asset management, bancassurance and payment services. In asset management, the Group reached a total of L. 27,300 billion by the end of 2000, up 3.2% on 1999. Third-party assets allocated to the various funds managed by Capitalgest, the Group’s asset management company, came to L. 16,967 billion, for an increase of 16.4% on 1999 (L. 14,580 billion). “Funds of funds” showed very strong growth, coming close to L. 12,000 billion by the end of the year. The preferences of investors led to a significant reinforcement of the equity component, which at the end of 2000 reached 42.7% of the total assets under management in Capitalgest’s funds. During the course of the year, we prepared a plan to rationalize the various lines, the purpose being to achieve a clearer differentiation of products based on customers’ financial status and risk profile. Taking advantage of the opportunities offered by recent changes in the regulations, we are planning to launch five new funds of funds in 2001. These are funds with a low entry threshold that offer a highly diversified asset allocation by investing in the funds of primary international institutional investors. The bancassurance sector confirmed itself in 2000 as the emerging area with an increase in technical reserves of more than L. 1,400 billion. The more innovative lines, offering unit and index linked products, attracted almost 90% of premiums, demonstrating that they have a very strong market appeal. The strategic importance of this business area led the Parent Bank to set up a captive business unit, i.e. one dedicated to handling life insurance policies solely for customers of the Group. This company, Lombarda Vita, was set up in June 2000 together with Cattolica Assicurazioni and began operating in early 2001. It will develop three segments in particular: • financial-type insurance policies, mainly unit or index linked and endowment products;
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• pension products, mainly Individual Pension Plans, which are completely new and structured on the basis of the principles that inspired open-ended pension funds; • pure risk policies, mainly term life policies, permanent invalidity and long term care (loss of self-sufficiency). In the area of payment services, apart from the virtual banking initiatives which we will discuss later on, a plan is currently being developed for the introduction of various types of credit cards, with the Parent Bank acting as the issuer. At the end of the year the number of credit cards in circulation showed a 24% penetration of the customer portfolio. There is therefore still plenty of room for growth with existing customers, with a number of business opportunities on offer through the direct issuance of such cards.
The development of new channels During the course of the year, marketing through the new virtual channels grew significantly. At the end of December 2000, there were 17,000 Bancoweb (Internet banking) users and 17,000 Remote Banking Multibanca links for businesses, 3,000 of which via Internet. At the same date, there were 44,000 users of the Banca in Linea (call center) service. The offer of virtual products and services became further enriched with the activation in January of the Borsaweb service (on-line trading via Internet), which had 14,000 users by the end of the year. The year also saw the start of a virtual banking project that will take a integrated multichannel approach, the purpose being to: • redefine the technical and organizational structure of the virtual channels; • reconfigure the role of the call center as a contact center which will operate in an integrated fashion with the Internet banking channel to consolidate one-to-one personalized relationships between the bank and its customers; • to reinforce the integration between the various channels: Internet banking, call center and financial consultants • to launch a telemarketing activity for the promotion of products and services. Around L. 50 billion is expected to be invested in this project by the end of 2001. The Parent Bank has also taken important initiatives in the field of e-commerce.
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“Brescia on line”, the city’s first B2C portal was launched together with leading partners in the publishing and public services sectors. During the course of the year, Banca Lombarda acquired a stake in “e@rchimede”, a company that operates as an incubator for Internet-related initiatives and for business start-ups in highly innovative sectors. At the beginning of 2001, the launch was announced of a B2B portal called Itradeplace.com, aimed at companies, especially those operating in the steel, textile, food and mechanical engineering industries. This initiative will be assisted by e@rchimede, which will act as a consultant. The identification of the corporate target clientele is based on the availability of these industries to attract a significant number of suppliers in a short period of time. This is fundamental to guarantee that the on-line market has a high level of liquidity, with benefits in terms of accelerating the incoming rate of revenues and reducing costs for the companies involved. A feasibility study has also been launched for the construction of an operating platform for the on-line placement of funds with retail customers and for the management of an area reserved for sales network support activities. The network of financial consultants had 177 members at the end of the year and the plan is to expand it by recruiting a further 400 new consultants over the next three years. Development of the network depends largely on the creation of an effective support structure. This will take the form of 40 consultancy branch offices located in areas where the Group does not already have a presence, as well as an enriched selection of new products, especially in the areas of asset management and pension plans. Moreover, in order to reinforce the consultants’ loyalty and recruiting capacity, an extraordinary stockholders’ meeting will be held to approve a stock option plan dedicated to them, which will involve issuing options for 1,350,000 Banca Lombarda ordinary shares.
Traditional distribution channels At the end of the year, the Group’s branch network consisted of 738 branches. An articulated territorial plan was also launched with a view to: • reshaping the geographical areas where Group banks operate so as to avoid overlaps, instead focusing all marketing efforts on local markets where the individual banks have their traditional roots. This objective was also pursued by transferring branches between Group banks, as explained below; • opening new branches after a careful choice based on criteria of territorial continuity with respect to the pre-existing network and considering the
24
effective potential for new branches to break even in a relatively short period of time. During the course of 2000, further steps were taken to consolidate the branch divisionalization model, which calls for specialization by macrosegment, namely Corporate, Retail and Private Customers. The model was almost entirely achieved at Banco di Brescia’s branches and its application at other Group banks is at an advanced stage of completion. The following table shows a geographical breakdown of the Group’s branches as of December 31, 2000.
Region
Province
EMILIA-ROMAGNA
Banca Credito di Tortona
Banca di GE e S. Giorgio
Banca di Banca Reg. Banco di Valle Camonica Europea Brescia
PARMA
5
PIACENZA Total EMILIA-ROMAGNA FRIULI-VENEZIA GIULIA
7
1
8
6
13
PORDENONE
3
3
UDINE
9
9
12 2
2
ROME
19
19
VITERBO
33
33
54
54
1
14
GENOVA
13
IMPERIA
4
3
SAVONA
2
3
19
6
Total LIGURIA LOMBARDY
26
10
6
19
35
38
5
184
227
COMO
1
4
5
CREMONA
3
4
7
LECCO
1
1
2
LODI
1
MANTUA
3
5
8
40
47
87
4
SONDRIO
Total LOMBARDY
46
7
4 ALESSANDRIA
1
42
VARESE
25
55
7 3
11
105
275
5
14 439 30
ASTI
2
CUNEO
118
NOVARA
3
1
4
7
4
12
TURIN
1
VERCELLI
25
5 1
BERGAMO
PAVIA
Total PIEDMONT
7
BRESCIA
MILAN
PIEDMONT
12
LATINA
Total LAZIO LIGURIA
5
7
Total FRIULI-VENEZIA GIULIA LAZIO
Total
2 118
2 26
137
2 5
168
Region
Province
TUSCANY
Banca Credito di Tortona
MASSA CARRARA
Total TUSCANY TRENTINO-ALTO ADIGE
Banca di GE e S. Giorgio
Banca di Banca Reg. Banco di Valle Camonica Europea Brescia
1
1
1
1
TRENTO
Total TRENTINO-ALTO ADIGE VENETO
2
2
2
2
PADUA
3
3
TREVISO
3
3
VENICE
2
2
VERONA
11
11
VICENZA
3
Total VENETO
22
LUXEMBOURG
LUXEMBOURG
1
Total LUXEMBOURG GRAND TOTAL
Total
1 1
30
20
55
255
3 22
378
1 738
EQUITY INVESTMENTS
During the course of the year, the Group’s portfolio of equity investments saw a number of important changes. The most significant event was undoubtedly the acquisition of a controlling interest in Banca Regionale Europea, an operation that took place in various phases. In March, Banca Lombarda acquired, in part directly and in part through Banco di Brescia, a controlling interest in Banca Regionale Europea from the Fondazioni of Cassa di Risparmio di Cuneo and Banca del Monte di Lombardia. This took its total voting interest in the capital stock to 52.35% and its total share of capital stock to 49.50%. The overall outlay was L. 2,410 billion. In execution of the resolution passed by the stockholders of Banca Lombarda on April 28, 2000, in May the above-mentioned Fondazioni transferred a further packet of shares in Banca Regionale Europea to Banca Lombarda in exchange for shares in the latter issued under a capital increase reserved exclusively for the Fondazioni. Following this transaction, the Banca Lombarda Group held 60% of the voting capital in Banca Regionale Europea and 56.73% of its overall capital. Banca Lombarda itself held 53% of the voting capital and 50.11% of overall capital. As part of a strategic plan to reinforce links with Società Cattolica di Assicurazione, our insurance partner, Banco di Brescia subsequently sold Cattolica its interest in Banca Regionale Europea. In order to diversify the sources of funding the Banca Regionale Europea acquisition, the Group formed Banca Lombarda Preferred Capital Company L.L.C. This company is domiciled in the state of Delaware (USA), and is a wholly-owned subsidiary of Banca Lombarda. Its sole purpose
26
is to issue special fund-raising instruments (preference shares) which are included in the calculation of capital for Bank of Italy reporting purposes. So far, the company has issued preference shares with a value of € 155 million of Euro. In June, Banca Lombarda, together with Società Cattolica di Assicurazione, took part in the formation of Lombarda Vita S.p.A., an insurance company, which is now operating for the current year in the life, accident and health insurance sectors. Banca Lombarda subscribed to 49.9% of the company’s capital stock for an outlay of L. 11.5 billion, of which L. 3 billion was paid in as of December 31, 2000. This transaction forms part of a strategy for partnership with Società Cattolica di Assicurazione, which also led to the acquisition of the interest in Banca Regionale Europea. Thanks to the know-how and administrative services provided by Società Cattolica Assicurazioni, Lombarda Vita will offer advanced forms of customized insurance to customers served by the Banca Lombarda Group’s branch network. In connection with the setting up of Lombarda Vita, agreements have been reached for the sale of the 20% stake in Augusta Vita. Effective December 31, 2000, this company sold the business divisions that were involved in the placement activity of the Banca Lombarda and Generali Groups’ distribution networks. In particular, the division involved in the Banca Lombarda Group’s sales and marketing activities was sold to Società Cattolica di Assicurazioni. As a result of these transfers, Augusta Vita showed particularly high net income in 2000 of L. 164 billion. In light of the growing diffusion of information and commercial services offered through the Internet, Banca Lombarda acquired a 20% interest in Brescia On Line and a 5.26% stake in e@rchimede, for outlays of L. 4.2 billion e di L.1.0 billion respectively. As mentioned previously, the company “Brescia On Line” runs a business-to-consumer portal with strong local features, while e@rchimede operates as an incubator for new entrepreneurial initiatives, especially those related to Internet. Banca Lombarda also agreed with Hopa and ASM (Azienda Servizi Municipalizzati) Brescia to set up Itradeplace, taking equal shares in the company that will create a business-to-business portal. Banca Lombarda’s investments in this project will amount to L. 0.6 billion. In December, Banca Lombarda sold its 46.32% interest in Banca della Valle d’Aosta for L. 20 billion, generating a capital gain of L. 3.4 billion. The reason for the disposal is the fact that the agreement originally signed with the Val d’Aosta Regional Authority was not implemented. This envisaged that Banca Lombarda and the Regional Authority would come to have
27
an equal stake in the bank. Partly as a result of Banca Regionale Europea joining the Group, we decided to reshape the commercial areas of the bank networks by transferring branches between companies and disposing of certain equity investments. This entailed: • the transfer by Banco di Brescia to Banca di Valle Camonica of the business division made up of 11 branches located in the province of Brescia. This took effect on July 1, 2000; • the sale to Banca Regionale Europea of the controlling interest held by Banca Lombarda in Banca Cassa di Risparmio di Tortona. The sale price was equal to the carrying value of the investment (L. 281.1 billion). The purpose of this transfer is to give Banca Regionale Europea a central role in coordinating the sales and marketing policy in Piedmont and the provinces of Pavia and Lodi. As part of the program to rationalize the number of companies in the Group, we also merged Immobiliare Dalmazia 2000 (previously Borghetto Magazzini Generali e Frigoriferi di Brescia) with Società Bresciana Immobiliare Mobiliare S.B.I.M. This operation was preceded by transferring to third parties the goods warehousing division of Immobiliare Dalmazia 2000 (excluding buildings and fixed installations). During the course of the year, we also began formalities to merge Immobiliare CRT with Banca Cassa di Risparmio di Tortona, which finished during the current year. The purpose of these operations is to create within the Group two real estate entities with distinct functions: S.B.I.M. will operate in the field of property management, while Solimm will handle the sale of buildings to recover loans granted by companies within the Group.
Human resource management During the first half of the year, work continued on implementing the innovations introduced by the new National Collective Labor Contract, stipulated between the Italian Bankers’ Association and the unions in the second half of 1999. This contract unites in a single labor contract all grades of staff working in banks that are members of the Italian Bankers’ Association (ABI) and the Association of Italian Co-operative Banks (ACRI). The new labor contract for executive grade staff was stipulated on December 1, 2000 and, like the other categories, the same contract now applies throughout the banking system. This is because the previous distinction between ABI and ACRI contracts is no longer valid (the only exception being cooperative credit banks which maintain their own regulations). Of particular importance was the application with effect from July by the
28
Parent Bank, Banca Lombarda, and Banco di Brescia of the regulations relating to the new grade of managerial supervisors which includes officials and former supervisors (i.e. “professional grade 4”). From December, together with the introduction of professional grades in Savings Banks, this new category of managerial supervisors was applied at Banca di Valle Camonica, Cassa di Risparmio di Tortona and S.B.S. Leasing; for Banca Regionale Europea and the other companies in the Group, this new category was introduced from January 1, 2001. Work continued on implementing the strategic plan, reducing the headcount and improving the distribution of resources between Group companies, initially by means of secondment, and then by transfering the employment contract of the individual or group of people. As part of an intense activity that involved handling labor relations on behalf of Group companies, agreement was reached with the trade union representatives of Banca Regionale Europea for the implementation of the plan to restructure its head office functions and network, centralizing certain activities at the Parent Bank and creating an operating hub at Cuneo. An important agreement was also signed with the trade unions by Banca Lombarda for the creation – starting on December 1, 2001 – of the new company Lombarda Sistemi e Servizi and the transfer to it of all of the activities relating to organization and systems, data processing, centralized back office services and logistics. For personnel of Banca Lombarda and Banco di Brescia, an agreement was signed with reference to the 1999 Corporate Bonus, for payment in 2000. This permitted all of these employees to participate in a generalized stock granting plan, paying in a different amount in cash. This operation was concluded on the basis of the mandate granted by the extraordinary stockholders’ meeting to the Board of Directors on January 11, 2001 with an increase in capital for the allocation of shares of par value 1 euro to 2,105 employees who decided to take part in the plan. Another agreement with the trade union representatives for the 2000 Corporate Bonus, payable in 2001, provides for the possibility for employees to take part in a similar stock grant by the Bank. Also as part of the Bank’s personnel incentive systems - to focus the staff’s attention on the creation of value for the company and for its stockholders, to align management’s objectives with those of the stockholders and to encourage corporate loyalty by providing incentives for key resources to stay with the Bank – a stock option plan was developed for the year 2000. This is based on the 1999 results and is directed at the executives of Banca Lombarda e Piemontese S.p.A. and other companies of the Group in which Banca Lombarda has a holding in excess of 95% (i.e. those of Banco di Brescia, S.B.S. Leasing and Capitalgest).
29
Lastly, the year 2000 also saw the start of a project to centralize Group personnel management by adopting a new procedure that was prepared for the introduction of the euro. So from January 1, 2001 all activities related to the preparation and processing of the wages and salaries of all Group company employees – except, for the time being, S.B.S. Leasing, C.B.I. Factor and Solofid/Sifru – will be carried out at the Parent Bank. At the end of the year, the Group had 7,247 employees, of whom 245 on fixed-term contracts and 436 on part-time contracts, compared with a total of 7,235 at the end of 1999.
The breakdown of employees is as follows: COMPANY
BANCA LOMBARDA
STAFF EMPLOYED
STAFF SECONDED FROM OTHER COMPANY
STAFF SECONDED TO OTHER COMPANIES
TOTAL STAFF
781
31
70
742
3,036
41
19
3,058
BANCO DI BRESCIA ((including the Luxembourg branch) BANCO DI BRESCIA (Luxembourg branch with employment contract under Luxembourg law) BANCA REGIONALE EUROPEA BANCA DI VALLE CAMONICA
4
4
2,290
6
16
2,280
373
4
20
357
BANCA CASSA DI RISPARMIO DI TORTONA
216
2
2
216
BANCA DI GENOVA E SAN GIORGIO
143
1
2
142
SBS LEASING
137
1
CBI FACTOR
124
138 124
S.I.L.F. S.r.l.
76
2
78
CAPITALGEST
34
21
55
BANCA LOMBARDA INTERNATIONAL
18
18
SOLOFID
7
3
10
ANDROS S.r.l.
5
1
6
SIFRU S.I.M.
3
1
4
7,247
114
TOTAL RESOURCES
(*) 15 employees are seconded to other equity investments or bodies.
30
129 (*)
7,232
The breakdown of employees by category as of December 31, 2000 is as follows: AZIENDA
PERSONALE
COMPANY
EXECUTIVES
MANAGEMENT SUPERVISORS (*)
PROFESSIONAL GRADES
TOTAL
50
248
483
781
42
865
2,129
3,036
2 3 1 4
96 37 47 19
4 275 176 95 114 18
4 373 216 143 137 18
1,712 80 66 20 5 5 3
2,290 124 76 34 7 5 3
5,185
7,247
BANCA LOMBARDA BANCO DI BRESCIA (including the Luxembourg branch) BANCO DI BRESCIA (Luxembourg branch with employment contract under Luxembourg law) BANCA DI VALLE CAMONICA BANCA CASSA DI RISPARMIO DI TORTONA BANCA DI GENOVA E SAN GIORGIO SBS LEASING BANCA LOMBARDA INTERNATIONAL
BANCA REGIONALE EUROPEA CBI FACTOR S.I.L.F. S.r.l. CAPITALGEST SOLOFID ANDROS S.r.l. SIFRU S.I.M. TOTAL RESOURCES
PERSONALE
PERSONALE
OFFICIALS
PROF. GRADE 4
39 8
248 18
2 1
6 1
291 18 10 6
152
1,910
PERSONALE
(*) The new category of Management Supervisors (in addition to the creation of Professional Grades at Savings Banks) and the enlargement of the executive category, as laid down in the National Collective Labor Contract of November 7, 1999,was applied from the following dates: • from July 1, 2000, Banca Lombarda and Banco di Brescia; • from December 1, 2000, Banca di Valle Camonica, Banca di Genova e San Giorgio and SBS Leasing; • from January 1, 2001, other companies; the Management Supervisor category does not have to be applied to the employees of Banca Lombarda International and the Luxembourg Branch of Banco di Brescia as they do not come under the Italian labor contract.
The average number of employees in each category during 2000 was as follows: COMPANY
BANCA LOMBARDA BANCO DI BRESCIA (including the Luxembourg branch) BANCO DI BRESCIA (Luxembourg branch with employment contract under Luxembourg law) BANCA DI VALLE CAMONICA BANCA CASSA DI RISPARMIO DI TORTONA BANCA DI GENOVA E SAN GIORGIO SBS LEASING BANCA LOMBARDA INTERNATIONAL
BANCA REGIONALE EUROPEA CBI FACTOR S.I.L.F. S.r.l. CAPITALGEST SOLOFID ANDROS S.r.l. SIFRU S.I.M. TOTAL RESOURCES (*) See previous date
31
EXECUTIVES
MANAGEMENT SUPERVISORS (*)
PROFESSIONAL GRADES
TOTAL
46
261
513
820
22
869
2,129
3,020
2 3 1 4
95 39 43 19
5 268 176 92 101 14
5 365 218 136 124 14
1,722 79 67 16 5 5 4
2,302 121 77 28 7 5 4
5,196
7,246
OFFICIALS
PROF. GRADE 4
27 8
260 18
1
6 2
293 16 10 5
114
1,936
During 2000, training activities for staff at the Group’s banks were stepped up. Courses were mainly in sales and marketing for the various professional grades with the following main aspects: • Banco di Brescia, training to consolidate the staff’s knowledge of the clientele segmentation model; • Banca Regionale Europea, initial training and further education as a result of the unification of the Group’s information system; • Lombarda Sistemi e Servizi, start of management skills training for those in charge of the various areas, sectors and functions. Considerable use was also made of self-study courses using multimedia instruments to integrate classroom teaching. Total training at the various banks amounted to 28,537 man/days (an increase of 107.3% on the previous year), broken down by Group company as follows: BANK
INTERNAL COURSES
SELF-STUDY
EXTERNAL COURSES
TOTAL
AVERAGE CLASSROOM DAYS
BANCA LOMBARDA
375
335
710
0.9
BANCO DI BRESCIA
8,883
2,730
168
11,781
3.9
BANCA REGIONALE EUROPEA
13,610
727
185
14,522
6.3
BANCA DI VALLE CAMONICA
1,261
43
1,304
3.6
BANCA CASSA DI RISPARMIO DI TORTONA
110
110
0.5
BANCA DI GENOVA E SAN GIORGIO
110
101
0.8
28,537
4.2
TOTAL MAN/DAYS
24,349
3,457
731
Lastly, the Parent Bank carried out personnel selection on behalf of all Group companies. This included people being hired for the first time, as well as staff searches for people with certain professional skills already on the job market.
SYSTEM OF INTERNAL CONTROLS The system of internal controls, as defined by the Bank of Italy, consists of the rules, procedures and organizational structures aimed at ensuring that corporate strategies are respected. These strategies in turn aim to achieve the ideal conditions for ensuring the stability and competitiveness of banks on the market. The regulatory framework established by the Bank of Italy, reflecting the principles defined by the Basle Committee on Banking Supervision, require that banks take steps to identify, measure and control risks, and evaluate the efficiency and effectiveness of the systems of internal control applying to individual processes. The federation-type business model established by the Banca Lombarda Group complies with these requirements; indeed, the process of risk control involves all functions throughout the entire Group, each contributing their specific skills, although the Parent Bank is responsible for directing and controlling the activities of Group companies. The Board of Directors and Senior Management define the strategies, policies and control objectives
32
with regard to all the risks identified. The Board also establishes the way that powers are delegated in order to ensure that the various levels of risk are managed in a careful and effective manner. The controls involve different roles for each of the Board of Directors, the Executive Committee, the Board of Statutory Auditors, the Senior Management and staff. More specifically, they involve: • line controls, aimed at ensuring the proper conduct of business, either carried out by the operating personnel and/or incorporated into the procedures and/or forming part of the back-office activities; • controls over risk management, aimed at defining methods for measuring risk, checking that established limits are respected by the various operating functions, controlling the consistency of operations in the individual business areas with the risk-return objectives assigned. These controls are the responsibility of a department (Risk Management) which is independent of the operational area. More specifically, the Risk Management department is responsible for ensuring an ongoing, timely control over the Group’s actual and forecast exposure to market, credit and country risk. • internal audit function, aimed at identifying anomalous trends and violations of procedures and regulations. It is responsible for checking that operating limits are respected and assessing the overall functioning of the system of internal controls. Internal auditing is the responsibility of the Group Auditing function within Banca Lombarda, which is a staff function reporting directly to Senior Management structure and independent from the operating functions that they monitor, either from Head Office or through on-site visits. It also carries out auditing activities for subsidiary companies with a considerable level of responsibility. All three levels of control operate autonomously at the bank networks and companies that have been delegated the task of selling products and services.
RISK MANAGEMENT The overall design of the risk management system, as defined in Banca Lombarda’s strategic plan, is based on the principles laid down for such matters by the Basle Committee for Banking Supervision and is in line with the instructions issued by the Bank of Italy. In particular, the functions of recording, measuring and controlling quantifiable risks on an integrated basis have been centralized in autonomous structures (Risk Management and Planning and Management Accounting) at the Parent Company, with the task of guaranteeing constant control over the
33
Group’s current and prospective exposure to market, lending and liquidity risks. Control over interest rate risk is carried out by means of gap analysis and sensitivity models. Sensitivity is measured in terms of duration (sensitivity of loans to parallel shifts in the curve of 100 bp). Gap analysis is carried out both with a view to the short term (within 12 months) and to the medium/long term (over 12 months). The analysis up to 12 months is carried out by groups of monthly maturities, while six-monthly groups are used up to 3 years and annual ones for maturities over 3 years. Liquidity is analyzed by considering the flows of capital falling due in monthly periods within the year. Asset & Liability Management (A&LM) reports are produced monthly. The gap analysis beyond a year is also carried out every ten days any time it is necessary to monitor the interest rate risk to ensure balance sheet items are hedged properly. Control over foreign exchange and interest rate risks is performed by the Parent Bank on the basis of the Finance Regulations approved by Banca Lombarda’s Board of Directors, which define the limits within which Group banks can develop their activities in the Finance Area so as to ensure an articulated and effective management of the various levels of risk. The limits that we decided to fix relate to: 1. Exposure to interbank markets 2. Exposure to exchange risk 3. Exposure to interest rate risk Two indicators were identified, particularly in relation to the last point: • the first is the ratio between sensitivity – understood as the maximum possible loss – of the unrestricted securities portfolio to stockholders’ equity. This reflects the potential impact on the statement of income of an adverse change in interest rates. Compliance with this indicator makes it possible to keep the volatility of the portion of income coming from the Finance Area below an acceptable level. The maximum limit for this indicator is 2% of stockholders’ equity for each bank. • the second indicator is the ratio between the value of on- and off-balance sheet assets and liabilities and stockholders’ equity. When calculating this ratio, all balance sheet items have to be marked to market, even those than are not negotiable, so that the possible exposure of all assets and liabilities to interest rate risk can be evaluated. The maximum limit for this indicator is 3% of stockholders’ equity for each bank. The method used for calculating sensitivity, both for the unrestricted securities
34
portfolio and for the entire balance sheet structure, is called parallel shift analysis. This method calculates the change in value in reaction to parallel shocks to the entire interest rate structure: we assume a shock of +100 bp. At present, this calculation is carried out by means of the A&LM tool. The subsidiary banks have adopted these same rules and have granted a mandate to Banca Lombarda to manage their securities portfolio and financial risks generally. This mandate establishes that the Finance Area has to operate within the limits laid down in the Regulations. As for lending risk, the procedure currently in use makes it possible to take account of the Group’s overall exposure to an individual customer of group of related customers. The credit limits are checked daily so as to check the global exposure to each authorized borrower. Control over the regularity of all positions is carried out by a specific central function at each of the subsidiary banks, with the power to classify loans in the way that suits them best if branches appear not to be monitoring the situation adequately. As regards the monitoring of performing loans, automated risk analysis procedures are used to highlight counterparties with anomalous profiles which are then examined individually. In order to measure the potential loss of value inherent in the performing loans portfolio and calculate the amount of the general provisions that need to be made, current procedures work out the amount of the writedown to be applied to individual counterparties and to the individual types of loans, based on the results of this automated risk analysis procedure. For those positions within performing loans which show anomalies, higher writedown rates are applied automatically. Those cases that are considered of greater risk are also written down on an analytical basis. The Group Credit Committee reviews each bank’s loan performance by geographical area, sector of the economy and customer segment, highlighting non-performing and anomalous situations, which is information of fundamental importance to decide on a prudent commercial growth strategy. As regards the management of credit limits for Italian and foreign institutional counterparties and country risk, there are IT procedures in place to monitor these risks. Ratings on institutional counterparties and countries are also obtained from outside agencies in order to have constant updates on their solvency. Particular importance is being given to the internal rating project. It is being
35
handled by the Parent Bank’s Risk Management Department, which is using Banco di Brescia during the initial analysis and testing stages. The purpose of the internal rating project is to set up a system of lending risk management and control which will be submitted for Bank of Italy authorization. The internal rating system will become an integral part of the various processes of customer credit line approval, lending policy management and pricing, and the measurement of the risk capital allocated. The project will be implemented using a step-by-step approach made up of various phases, at the end of which it will be possible to have a rating and measure the value at risk (VaR) for each and every customer, together with the related credit exposures. The approach will differ according to the customer segment in question, but the rating will always be measured on the same scale. Granting companies a rating entails making a preliminary estimate of the probability of default, the rate of recovery and therefore the expected loss by applying discriminating analysis. Based on key variables and indicators identified by applying this type of analysis, an algorithm will be defined for calculating the rating. As regards operating risk, internal control systems have been developed with the help of the Group Internal Auditing department, so as to reduce the risks of procedural malfunctions, material errors, or those caused by fraudulent behavior. As for legal risk, the Bank maintains constant control over the validity, effectiveness and enforceability of contracts under current regulations. As regards the validity and effectiveness of contracts, we usually adopt formats developed by our trade associations (ABI, ISDA, etc), adapting them if necessary to our own requirements. As regards the checking of signature powers, we obtain suitable documentation (by-laws, board resolutions, powers of attorney, etc) on each occasion that they are required.
36
TRANSACTIONS WITH GROUP COMPANIES AND RELATED PARTIES As already mentioned, the business plan for the Banca Lombarda Group envisages the centralization of many management functions and services within the Parent Bank. These transactions are regulated by individual agreements and the services provided by the Parent Bank are remunerated at market rates, taking account of the overhead costs incurred by Banca Lombarda, as well as the depreciation of the related capital investment. Transactions between related parties, as defined by Consob in recommendations 97001574 dated February 20, 1997, and 98015375 dated February 27, 1998, and Banca Lombarda and other Group companies relate to normal financial intermediation and related services. These transactions are monitored to identify possible conflicts of interest and are conducted on the usual terms for prime customers.
CONSOLIDATED COMPANIES The consolidated financial statements of the Banca Lombarda Group comprise the situation of Banca Lombarda, as the Parent Bank, and of those subsidiaries belonging to the banking group. These companies are listed below, distinguishing between those that are consolidated line-by-line, proportionally or using the equity method. The following changes have taken place in the scope of consolidation since December 31, 1999: • The line-by-line consolidation of Banca Regionale Europea S.p.A., Silf S.r.l. and Preferred Capital Company L.L.C.; • The change in the shareholding in C.B.I. FACTOR S.p.A., up from 78.19% to 85.156%, following the acquisition of the interests held by Banca del Piemonte S.p.A. and Banca Sella, as well as the absorption of Factor Nord by C.B.I. FACTOR; • The inclusion of Lombarda Sistemi e Servizi S.p.A., Grifogest S.p.A. and Pavia Impresa Sviluppo S.p.A., using the equity method; • The exclusion of Banca della Val d’Aosta, previously valued at equity, following its sale.. GE.SE.RI S.p.A has not been consolidated since it is in liquidation.
37
Name and location
Type of relation ship
Ownership interest Holder
%
A. Line by line 1. BANCA CASSA DI RISPARMIO DI TORTONA S.p.A. Tortona (Al) - Capital L. 75,000,000,000 Shares of L. 1,000,000 cad.
1
Banca Regionale Europea S.p.A.
60.00
2. BANCA DI GENOVA E SAN GIORGIO S.p.A. Genova - Capital L. 57,130,777,150 Shares of L. 2,350 cad.
1
Banca Lombarda S.p.A.
80.30
3. BANCA DI VALLE CAMONICA S.p.A. Breno (BS) - Capital L. 2,738,693,000 Shares of L. 1,000 cad.
1
Banca Lombarda S.p.A. Banco di Brescia S.p.A.
74.24 8.72
4. BANCA LOMBARDA INTERNATIONAL S.A. Luxembourg - Capital Euro 10,200,000 Shares of Euro 510 cad.
1
Banca Lombarda S.p.A. Banco di Brescia S.p.A. Banca di Genova e San Giorgio S.p.A.
84.15 14.85 1.00
5. BANCA LOMBARDA PREFERRED CAPITAL COMPANY LLC - Delaware (USA) - Capital Euro 1,000
1
Banca Lombarda S.p.A.
100.00
6. BANCA REGIONALE EUROPEA S.p.A. Cuneo - Capital L. 850,000,000,000 Shares of L. 1,000 cad.
1
Banca Lombarda S.p.A.
50.11
7. BANCO DI BRESCIA S.p.A. Brescia - Capital L. 812,500,000,000 Shares of L. 1,000 cad.
1
Banca Lombarda S.p.A.
100.00
8. CAPITALGEST S.G.R. S.p.A. Brescia - Capital L. 21,102,900,000 Shares of L. 10,000 cad.
1
Banca Lombarda S.p.A.
100.00
9. C.B.I. FACTOR S.p.A. Milan - Capital L. 69,453,500,000 Shares of L. 1,000 cad.
1
Banca Lombarda S.p.A.
85.156
10. IMMOBILIARE C.R.T. Srl Tortona (Al) - Capital L. 290,000,000 Shares of L. 10,000
1
Banca C.R.Tortona S.p.A.
100.00
11. S.B.I.M. S.p.A. Brescia - Capital L. 28,400,000,000 Shares of L. 1.000 cad.
1
Banca Lombarda S.p.A.
100.00
12. S.B.S LEASING S.p.A. Brescia - Capital L. 25,000,000,000 Shares of L.10,000 cad.
1
Banca Lombarda S.p.A.
98.00
13. SIFRU GESTIONI SIM S.p.A. Brescia - Capital L. 2,000,000,000 Shares of L. 1,000 cad.
1
Solofid S.p.A.
100,00
14. SILF Srl Cuneo - Capital Euro 10,300,000 In a single mount of Euro 10,300,000
1
Banca Regionale Europea S.p.A.
100.00
15. SOC.LOMBARDA IMMOBILIARE SOLIMM S.p.A. Brescia - Capital L. 5,000,000,000 Shares of L. 10,000 cad.
1
Banca Lombarda S.p.A. Banca di Genova e San Giorgio S.p.A.
98.00 2.00
16. SOLOFID S.p.A. Brescia - Capital L. 2,900,000,000 Shares of L. 1,000 cad.
1
Banca Lombarda S.p.A.
100.00
38
Name and location
Type of relation ship
Ownership interest Holder
%
1. LOMBARDA SISTEMI E SERVIZI S.p.A. Brescia - Capital L. 200,000,000 Shares of L. 1,000 cad.
1
Banca Lombarda S.p.A.
100.00
2. ANDROS Srl Cuneo - Capital L. 500,000,000 Shares of L. 1,000 cad. 3. GE.SE.RI S.p.A. - Cuneo Capital L. 626,422,411 Shares of L. 1 cad. Non group equity investments 4. AUGUSTA VITA S.p.A. Turin - Capital L. 75,000,000,000 Shares of L. 1,000 cad.
1
Banca Regionale Europea S.p.A.
51.00
1
Banca Regionale Europea S.p.A.
95.00
2
Banca Lombarda S.p.A.
20.00
5. GRIFOGEST S.p.A. Florence - Capital L. 5,000,000,000 Shares of L. 1,000,000 cad.
2
Banca Regionale Europea S.p.A.
49.00
6. CARALT S.p.A. Alessandria - Capital L. 5,000,000,000 Shares of L. 100,000 cad.
2
Banca C.R.Tortona S.p.A.
32.50
7. PAVIA SVILUPPO IMPRESE S.p.A. Pavia - Capital L. 2,000,000,000 Shares of L. 1,000 cad.
2
Banca Regionale Europea S.p.A.
40.00
8. PRISMA Srl Milan - Capital L. 1,000,000,000 Shares of L. 1,000 cad.
2
Banca Lombarda S.p.A.
20.00
1. FIDUCIARIA BANKNORD S.p.A. Milan - Capital L. 1,000,000,000 Shares of L. 500 cad.
2
Banco di Brescia S.p.A. Banca di Valle Camonica S.p.A.
30.00 10.00
2. LOMBARDA VITA S.p.A. Brescia - Capital Euro 10,300,000 Shares of 5 cad.
2
Banca Lombarda S.p.A.
49.90
3. BRESCIA ON LINE Srl Capital Euro 1,250,000 Shares of 1 cad.
2
Banca Lombarda S.p.A.
20.00
4. CENTRE DE SERVICES DE PARIS SAPA Capital FF 3,000,000 Shares of FF 100 cad.
2
Banca Regionale Europea S.p.A.
49.92
B. Equity method Group investments
C. Other significant investments valued at cost
1 = control as per art.2359.1.1 of the Italian Civil Code (majority of votes at ordinary stockholders’ meetings) 2 = associated company
39
Results for the year
GROUP PERFORMANCE
The schedules that follow give the reclassified consolidated balance sheet and statement of income of the Banca Lombarda Group as of December 31, 2000, with comparative figures as of December 31, 1999. As explained in the accounting policies, the figures as of December 31, 1999 have been adjusted to take account of the acquisition in March of a controlling interest in Banca Regionale Europea. The results of the companies included in the consolidation take account of the possibilities granted by Law no. 342 of November 21, 2000 (the so-called Appendix to the Budget Law 2000): • art. 22: freeing up of the reserve for possible loan losses with a transfer to the reserve for general banking risks by paying a substitute tax of 19%; • art. 10 et seq.: revaluation of property assets by paying a substitute tax of 15% for the assets not subject to depreciation and 19% for assets subject to depreciation. The Group opted to revalue property assets used for business purposes which can be disposed off within a reasonable period of time; • art. 23: the rate envisaged by art. 71.3.c of the Income Tax Consolidation Act (possibility to write down loans and make provisions for possible loan losses) has been raised from 0.50% to 0.60%.
40
RECLASSIFIED CONSOLIDATED BALANCE SHEET
(millions of lire) ASSETS _ Cash and deposits with central banks
31/12/2000
31/12/1999 pro forma (1)
Change Amount %
228,070
286,177
-58,107
-20.3
33,897,881
30,249,706
3,648,175
12.1
33,441,393
29,751,522
3,689,871
12.4
11,323
–
11,323
– -10.6
and post offices _ Loans to customers including: – loans – repurchase agreements – non-performing loans _ Due from bank _ Securities
445,165
498,184
-53,019
2,350,647
2,282,072
68,575
3.0
8,047,224
10,271,963
-2,224,739
-21.7
_ Equity investments _ Intangible and tangible fixed assets
832,256
747,377
84,879
11.4
1,103,318
960,416
142,902
14.9
1,512,303
229,118
1,283,185
–
3,951,613
2,835,438
1,116,175
39.4
51,923,312
47,862,267
4,061,045
8.5
31/12/2000
31/12/1999 pro forma (1)
37,299,817
34,035,507
3,264,310
9.6
32,331,959
29,287,503
3,044,456
10.4
4,114,685
4,144,419
-29,734
-0.7
_ Goodwill arising on consolidation and application of the equity method _ Other assets TOTAL ASSETS
(millions of lire) ASSETS
– Due to customers
Change Amount %
including: – deposits – repurchase agreements – other technical forms – Due to banks
853,173
603,585
249,588
41.4
3,765,837
4,886,264
-1,120,427
-22.9
– Specific provisions
1,076,489
911,529
164,960
18.1
– Other liabilities
4,247,066
4,008,885
238,181
5.9
901,496
866,217
35,279
4.1
2,013,637
1,113,451
900,186
80.8
2,298,883
1,863,974
434,909
23.3
320,087
176,440
143,647
81.4
51,923,312
47,862,267
4,061,045
8.5
– Minority interests – Subordinated liabilities – Stockholders’ equity: – Capital, reserves and retained earnings – Net income for the year TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
(1) “Historical” figures have been adjusted to take account of the acquisition of 50.1% of the Banca Regionale Europea Group in March 2000.
41
RECLASSIFIED CONSOLIDATED STATEMENT OF INCOME
(millions of lire) 31/12/2000
31/12/1999 pro forma (1)
Change Amount
%
10
Interest income
2,676,295
2,102,696
573,599
27.3
20
Interest expense
-1,491,069
-984,271
506,798
51.5
30
Dividends and other revenues
NET INTEREST INCOME
121,422
58,341
63,081
108.1
1,306,648
1,176,766
129,882
11.0
40
Commission income
993,500
771,549
221,951
28.8
50
Commission expense
-108,811
-83,545
25,266
30.2
70
Other operating income
197,007
175,215
21,792
12,4
110
Other operating expenses
Net income from services 60
Profits (losses) on financial transaction
NET INTEREST AND OTHER BANKING INCOME 80
-21,302
-10,020
11,282
112.6
1,060,394
853,199
207,195
24.3
90,137
75,979
14,158
18.6
2,457,179
2,105,944
351,235
16.7
-789,795
-776,351
13,444
1.7
Administrative costs – Payroll – Other administrative costs
-538,916
-531,110
7,806
1.5
Administrative costs
-1,328,711
-1,307,461
21,250
1.6
OPERATING INCOME
1,128,468
798,483
329,985
41.3
-245,837
-223,705
22,132
9.9
90
Adjustments to tangible and intangible fixed assets
100
Provisions for liabilities and charges
120
Adjustments to loans and provisions for guarantees and commitments
130
Writebacks of loans and provisions for guarantees and commitments
150
Adjustments to financial fixed assets
170
Income from investments carried at equity
INCOME FROM OPERATING ACTIVITIES
-22,867
-28,357
-5,490
-19.4
-232,295
-223,785
8,510
3.8
65,051
58,009
7,042
12.1
-483
-1,782
-1,299
–
33,814
2,561
31,253
–
725,851
381,424
344,427
90.3
190
Extraordinary income
84,325
109,846
-25,521
-23.2
200
Extraordinary charges
-19,529
-15,094
4,435
29.4
INCOME BEFORE INCOME TAXES
790,647
476,176
314,471
66.0
240
Income taxes
-371,781
-239,148
132,633
55.5
NET INCOME (before equity allocations)
418,866
237,028
181,838
76.7
230
Change in reserve for general banking risks
-26,909
-3,208
23,701
–
250
Minority interest in net income (loss) for the year
-71,870
-57,380
14,490
24.3
320,087
176,440
143,647
81.4
NET INCOME FOR THE YEAR
(1) “Historical” figures have been adjusted to take account of the acquisition of 50.1% of the Banca Regionale Europea Group in March 2000.
42
BALANCE SHEET
Assets under management Customer assets under administration, comprising both direct and indirect deposits, as well as the technical reserves relating to assurance policies placed by Group banks, amount to L. 110,826 billion as of December 31, 2000, an increase of L. 8,348 billion for the year. Both direct and indirect funding made progress, by respectively 9.6% and 7.4%.
Change in assets under management (billions of lire)
Direct customer deposits including repurchase agreements
31/12/2000 Amount % Weighting
31/12/1999 Amount % Weighting
Change Amount
37,300
33.7
34,036
33.2
3,264
9.6
4,115
3.7
4,144
4.0
-29
-0.7
33,185
29.9
29,892
29.2
3,293
11.0
%
Direct customer deposits (excluding repurchase agreements) – Due to customers (excluding 20,854
18.8
19,387
18.9
1,467
7.6
– Securities issued
repurchase agreements)
12,331
11.1
10,505
10.3
1,826
17.4
Indirect deposits
73,526
66.3
68,442
66.8
5,084
7.4
– Administered savings
42,216
38.1
39,370
38.4
2,846
7.2
– Managed savings
27,329
24.7
26,493
25.9
836
3.2
3,981
3.6
2,579
2.5
1,402
54.4
110,826
100.0
102,478
100.0
8,348
8.1
– Technical reserves Total assets under management
Direct deposits Direct deposits came to L. 37,300 billion. Net of repurchase agreements, which fell by 0.7%, the growth was even more pronounced (+11%). Securities issued climbed by 17.4%, thanks to important issues on the international markets and an increasingly wide range of “structured” products in keeping with the evergreater demands of customers. As for traditional funding, the drop in certificates of deposit and savings deposits was offset by the growth of current accounts (+12%). Indirect deposits grew by 7.2% thanks to the higher interest rates on government securities. As of December 31, 2000, assets in custody and administration amounted to L. 42,216 billion. Asset management totaled L. 27,329 billion, an increase of 3.2% for the year. Considering also the insurance-related
43
technical reserves, asset management gained 7.7% to L. 31,310 billion. In the bancassurance sector, most of the volume concerned life insurance policies. At year end the technical reserves amounted to L. 3,981 billion for an increase of 54.4%.
Deposits from banks and subordinated liabilities At L. 3,766 billion, interbank deposits were 22.9% lower than at the end of 1999. Subordinated liabilities increased by 80.8% to L. 2,014 billion. They comprised preference shares, and upper and lower tier II liabilities forming part of supplementary equity for supervisory purposes. The Group issued Euro 505 million in subordinated loans during the year, mostly to fund the acquisition of a controlling interest in Banca Regionale Europea.
Lending Total lending to customers amounted to L. 33,898 billion at the end of December, up 12.1% or L. 3,648 billion since the start of the year. Short-term loans were up 8.7%, and medium- and long-term loans by 19%. The increase in short-term loans is explained by the rising demand from companies, which needed more working capital as the economy regained strength. In medium- and long-term loans, most of the growth continued to concern households and small and medium-sized businesses, whose inclination to borrow - favored by the lower real cost of debt - seems to be approaching European standards. Within that context, mortgage and personal loans increased by 22.3% with respect to the previous year. Precise strategies for commercial penetration were defined for the retail customer segment with a view to capitalizing on the sector’s growing potential. More specifically, the procedures were simplified for granting personal and home-purchase loans, and the Bank launched new products that have been well received by its customers. The small/mid corporate segment, where our Group has traditionally operated, was managed with careful attention to the market. This policy was rendered more effective thanks to the new distribution model, involving the creation of Corporate Units. This strengthening of relations with operators has been accompanied by a policy of selective lending, focusing on geographic areas, economic sectors and market segments. As part of the process of improving the quality of the loans
44
portfolio, there was a gradual shift toward economic sectors with better growth and earnings prospects. Non-performing loans Net non-performing loans came to L. 445.2 billion, down L. 53 billion (-10.6%) on 1999. They fell to 1.31% of total lending, compared with 1.65% the previous year. Writedowns cover 41% of non-performing loans.
Securities The securities portfolio amounts to L. 8,047 billion, made up of L. 3,207 billion in investment securities and L. 4,840 billion in trading securities. Trading securities consist mainly of floating-rate government bonds. Fixedinterest and zero-coupon bonds account for about 18% of the trading portfolio. Investment securities, at L. 3,207 billion, consist two thirds of fixed-interest and zero-coupon government bonds, and one third of floating-rate bonds. Derivatives Trading in derivatives was geared toward achieving a high correlation between the earnings profiles of asset and liability items, as a measure of prudence intended to limit interest- and exchange-rate risk. As of December 31, 2000, most derivatives concerned hedging contracts designed to match financial assets and liabilities in terms of duration, maturity and reference parameters. STOCKHOLDERS’ EQUITY For additional details, see the tables and comments in the explanatory notes. Reconciliation of stockholders’ equity and net income for the year
Balances as of December 31, 2000, as per the Parent Bank Risk reserves considered part of equity Reserves for general banking and financial risks Reserves for accelerated depreciation Other consolidation adjustments and reclassifications Differences in book value: - consolidated companies - companies carried at equity Dividends collected during the year Dividends recorded on an accruals basis Balances as of December 31, 2000, as per the consolidated financial statements
45
Stockholders’ equity
Net income for the year
2,484,956 60,663 75,794 26,817
291,131 36,840 – 3,166
287,996 16,044 – -333,300
305,176 17,739 -665 -333,300
2,618,970
320,087
STATEMENT OF INCOME Net interest income for the year was L. 1,307 billion, up L. 130 billion (+11.0%) with respect to 1999. The increase was due to the higher volumes. Net income from services, made up of L. 1,060 billion in net commission income and L. 90 billion in net profits on financial transactions, totaled L. 1,150 billion, up L. 221 billion (+23.8%) with respect to 1999. Most of the increase came from the growth in asset management and bancassurance. More specifically, net commissions on mutual funds, portfolio management and assurance policies accounted for over 50% of total net commissions and nearly 40% of net income from services. Net interest and other banking income, the sum of net interest income and net income from services, came to L. 2,457 billion with an increase of L. 351 billion (16.7%) on 1999. About two thirds of the increase came from the growth of net income from services (+L. 221 billion, as specified above). Accordingly, net income from services rose from 44% to 47% of net interest and other banking income. Administrative costs rose slightly to L. 1,329 billion (+1.6%). Within that aggregate, payroll costs were up 1.7%, with most of the increase concerning some product companies enjoying a period of substantial growth. As a percentage of net interest and other banking income, payroll costs fell by around 5 points, from 37% in 1999 to 32% in 2000. Staff productivity, measured as net interest and other banking income per capita (i.e. divided by the average number of employees during the year), rose from L. 293 million to L. 339 million for a gain of 16%. Other administrative costs rose by 1.5%, due mainly to the rise in current expenses for upgrading the computer platform and developing the multichannel project. Total administrative costs, including payroll, fell substantially as a percentage of net interest and other banking income: from 62% in 1999 to 54% in 2000. Operating income, at L. 1,128 billion, increased by over 41% compared with the 1999 total of L. 798 billion. Adjustments to intangible and tangible fixed assets rose 9.9% with respect to the previous year, due especially to amortization of the entire residual goodwill on Augusta Vita (about L. 16 billion), which is due to be sold. The cost-income ratio, i.e. the proportion of net interest and other banking income absorbed by administrative costs plus depreciation and amortization
46
(excluding the amortization of positive differences arising on consolidation or application of the equity method, i.e. goodwill), fell from 68.7% in 1999 to 60% in 2000. Net adjustments to loans came to L. 167 billion, with little change on the previous year. As a proportion of total customer loans at the year end, they therefore decreased by 6 bp from 0.55% in 1999 to 0.49% in 2000. Income from investments carried at equity amounted to L. 34 billion, up L. 31 billion for the year. This substantial increase is explained by the rise in the net income of Augusta Vita, which benefited from the sale of certain business activities related to the distribution networks of the Banca Lombarda Group and the Generali Group. Income from operating activities was L. 726 billion, an increase of over 90% compared with 1999. Net extraordinary income came to L. 65 billion, L. 30 billion less than the previous year. The main reason for the decrease is that over L. 33 billion in deferred tax assets were booked in 1999. It should also be noted that sundry gains in 2000 include L. 26 billion from the use of loan loss provisions by consolidated companies, in accordance with Law 342/2000 (Art. 22), for which a corresponding provision was made to the reserve for general banking risks. Income taxes, at L. 371.8 billion, absorbed 47% of pre-tax income compared with 50% in 1999. The tax burden was reduced through application of the dual income tax (DIT) mechanism and by the fact that taxable income for regional tax (IRAP) purposes increased more slowly than that for national tax (IRPEG) purposes, due to the stability of payroll costs. Net income for the year was L. 320.1 billion, an increase of 81.4%. ROE, calculated on year-end equity and before the amortization of goodwill, improved sharply: from 14% in 1999 to 17.6% in 2000.
47
PERFORMANCE OF GROUP COMPANIES The performance of the principal Group companies during the year is described below, along with key balance sheet and statement of income figures. Brief comments are also provided for the remaining Group companies. Banco di Brescia Customer assets administered by Banco di Brescia amounted to L. 65,471 billion at the end of December 2000, an increase of 6.8% on 1999. The increase in these assets was due chiefly to indirect deposits and bancassurance, which climbed to L. 44,703 billion (+L. 3,606 billion or 8.8%). The shift of customer assets into professionally managed schemes was reflected in trends in traditional forms of deposit, which showed more limited growth of 2.8%, reaching L. 20,780 billion for the year. Financing activities were particularly lively, with loans to customers rising 14.5% to L. 19,496 billion. Non-performing loans continued to fall (from L. 237 to 201 billion between December 1999 and 2000), causing the quality of existing credit to improve, as demonstrated by the reduction in net non-performing loans as a percentage of total lending from 1.39% to 1.03%. In terms of results, net interest income climbed 17% to L. 672.5 billion. Net income from services grew 8.6% to L. 614.5 billion, thanks largely to asset management activities for private customers. Profits on financial transactions shrank by 62.3%, mostly because of the reduction in the securities portfolio and its nature as a stable investment. Operating income, after deducting administrative costs, came to L. 644 billion (+29%). The year closed with net income of L. 273 billion, up from L. 180 billion in 1999, after charging L. 237.3 billion in taxation. (billions of lire) Balance sheet Loans to customers Securities Equity investments Total assets Direct deposits from customers Indirect deposits and insurance policies - of which: asset management - of which: technical reserves Customer assets under administration Capital and reserves (excluding net income)
31/12/2000
31/12/1999
Change
% change
19,496 3,340 95 28,827 20,780 44,703 15,973 2,865 65,483 872
17,034 5,656 62 27,218 20,222 41,097 15,797 1,772 61,319 813
2,462 -2,316 33 1,609 557 3,606 176 1,093 4,163 59
14.5 -40.9 52.2 5.9 2.8 8.8 1.1 61.7 6.8 7.3
673 614 1,287 643 644 273
575 566 1,141 642 499 180
98 48 146 1 145 93
17.0 8.6 12.8 0.2 29.0 51.6
3,033 378
3,002 387
31 -9
1.0 -2.3
Statement of income Net interest income Net income from services Net interest and other banking income Administrative costs Operating income Net income Other information No, of employees No. of branches
48
Banca Regionale Europea Customer assets administered by Banca Regionale Europea amounted to L. 30,991 billion at the end of 2000, an increase of L. 1,576 billion or 5.4%. This reflects the growth of both direct deposits (L. 10,540 billion, +10.2%) and indirect deposits (L. 20,451 billion, +3.0%). Including deposits by the companies Grifogest and Zurich Investments, for which the bank serves as custodian, indirect funding amounted to L. 25,330 billion. Loans to customers increased 10.3% to L. 8,425 billion, mostly due to mortgage lending. At L. 116 billion, non-performing loans fell by 7.8%, and the quality of the loan portfolio improved with non-performing loans falling from 1.65% to 1.38% of total lending. In terms of results, net interest income rose from L. 426 to 467 billion, gaining 9.6% on the previous year. Net income from services totaled L. 284 billion, an increase of 30.7%. More specifically, net commissions came to L. 214 billion (+12.8%). Measures to reduce administrative costs, most notably payroll (-0.4%), helped boost operating income by more than 46%, to L. 321 billion. The year closed with net income of L. 116 billion, up 38% compared with 1999. (billions of lire) Balance sheet
31/12/2000
31/12/1999
Change
%
Loans to customers
8,425
7,637
788
10.3
Securities
2,599
3,232
-633
-19.6
345
63
282
449.5
Total assets
14,583
12,594
1,989
15.8
Direct deposits from customers
10,540
9,562
978
10.2
Indirect deposits and insurance policies
20,451
19,853
598
3.0
8,670
9,134
-464
-5.0
954
692
262
37.9
30,991
29,415
1,576
5.4
1,400
1,374
26
1.9
Net interest income
467
426
41
9.6
Net income from services
284
217
67
30.7
Equity investments
- of which: asset management - of which: technical reserves Customer assets under administration Capital and reserves (excluding net income) Statement of income
Net interest and other banking income
751
643
108
16.8
Administrative costs
430
423
6
1.5
Operating income
321
220
101
46.2
Net income
116
84
32
38.0
2,290
2,314
-24
-1.0
255
242
13
5.4
Other information No. of employees No. of branches
49
Banca di Valle Camonica For the sake of comparison with the previous year, the balance sheet and statement of income figures as of 31 December 1999 have been restated to include the activities of the 11 Banco di Brescia branches that have been transferred to Banca di Valle Camonica. Customer assets administered by the bank increased by 2.9% to L. 3,847 billion at the end of December, thanks to indirect deposits (L. 1,944 billion, +7.4%). Direct customer deposits fell 1.2% because of the reduction in the bond component. Loans to customers performed well, climbing 7.1% to L. 1,609 billion; growth in mortgage lending and personal loans was particularly lively, at +19.3%. Net non-performing loans fell by 21.2% to L. 39 billion, dropping from 3.3% to 2.4% of total customer loans. In the statement of income, net interest income rose 23%, and net income from services - thanks to the growth of net commissions - reached L. 43 billion (+6.7%). At L. 74 billion, overheads increased by 10.7%, due to the heading “other administrative costs”; payroll costs fell by 0.7%. Operating income came to L. 46 billion (+27.4%). Net income for the period totaled L. 9.7 billion (7.6% higher than in 1999) after charging L. 9 billion in taxes. (billions of lire) Figures as of 31.12.1999 are restated. Balance sheet Loans to customers Securities Equity investments Total assets Direct deposits from customers Indirect deposits and insurance policies - of which: asset management - of which: technical reserves Customer assets under administration Capital and reserves (excluding net income)
31/12/2000
31/12/1999
Change
%
1,609 421 – 2,271 1,903 1,944 1,272 114 3,847 139
1,503 438 1 2,278 1,925 1,810 1,217 87 3,735 110
106 -16 -1 -7 -22 134 55 27 112 29
7.1 -3.7 -67.2 -0.3 -1.2 7.4 4.5 31.0 2.9 26.7
76 43 119 74 46 10
62 40 102 66 36 9
14 3 17 7 10 1
23.0 6.7 16.6 10.7 27.4 7.6
373 55
356 43
17 12
4.8 27.9
Statement of income Net interest income Net income from services Net interest and other banking income Administrative costs Operating income Net income Other information No. of employees No. of branches
50
Banca Cassa di Risparmio di Tortona Customer assets administered by Cassa di Risparmio di Tortona increased by 4.7%, from L. 2,275 billion at the end of 1999 to L. 2,383 billion a year later. Customer deposits gained 4.9%, on the strength of bonds (+25.4%) and repurchase agreements (+27.3%). Savings deposits and short-term CDs fell by 12.6% and 15.3%, respectively. Indirect deposits grew by 4.6%, thanks especially to asset management and life assurance policies. Loans to customers were up 6.1%, due to mortgage loans (+13.1%) and current account overdrafts (+10.9%). The careful evaluation of positions at risk led to a further improvement in loan quality, with non-performing loans falling from 2.79% to 2.59% of the total lending portfolio. The increase in net interest income, along with the positive trend in net income from services, caused a 14.2% rise in net interest and other banking income. Administrative costs rose by 5%, and the operating profit by 32.3%, from L. 19.9 billion to L. 26.3 billion. At L. 11.4 billion, net income for the year was 51.2% higher than in 1999. (billions of lire) Balance sheet
31/12/2000
31/12/1999
Change
%
Loans to customers
794
748
45
6.1
Securities
325
275
51
18.5
26
25
–
1.6
Total assets
1,266
1,219
47
3.9
Direct deposits from customers
1,024
976
48
4.9
Indirect deposits and insurance policies
4.6
Equity investments
1,358
1,299
59
- of which: asset management
642
617
25
4.1
- of which: technical reserves
21
14
7
49.5
2,383
2,275
107
4.7
130
127
3
2.6
42
37
5
13.8
Customer assets under administration Capital and reserves (excluding net income) Statement of income Net interest income Net income from services
25
22
3
14.8
Net interest and other banking income
67
59
8
14.2
Administrative costs
41
39
2
5.0
Operating income
26
20
6
32.3
Net income
11
8
4
51.2
214
220
-6
-2.7
30
29
1
3.4
Other information No. of employees No. of branches
51
Banca di Genova e San Giorgio Customer assets administered by Banca di Genova e San Giorgio increased by 18.3%, to L. 2,000 billion. Both direct and indirect deposits made a contribution to this result, rising respectively to L. 663 billion (+23.8%) and L. 1,337 billion (+15.8%). Loans to customers soared 40.5% to L. 671 billion. The quality of credit continued to improve, with the proportion of net non-performing loans falling from 0.59% of total loans as of December 31, 1999 to 0.53% at the end of December 2000. The rise in business volumes had a welcome effect on the statement of income. Net interest income reached L. 50 billion, increasing 34.7% for the year. Administrative costs rose by 28.9% because of the need to support the growth in volumes. Operating income came to L. 20.8 billion (+43.6%), and net income to L. 6 billion (+3.8%). (billions of lire) Dati patrimoniali
31/12/2000
31/12/1999
Change
% change
Loans to customers
671
478
194
40.5
77
84
-8
-9.0
Securities Equity investments Total assets Direct deposits from customers
1
1
–
0.5
909
679
230
33.9
663
535
127
23.8
1,337
1,155
182
15.8
- of which: asset management
518
454
64
14.1
- of which: technical reserves
27
12
15
125.0
2,000
1,690
309
18.3
80
77
2
3.0
Net interest income
30
21
8
38.2
Net income from services
20
15
5
29.8
Indirect deposits and insurance policies
Customer assets under administration Capital and reserves (excluding net income) Statement of income
Net interest and other banking income
49
37
13
34.7
Administrative costs
28
22
6
28.9
Operating income
21
15
6
43.6
6
6
–
3.8
143
128
15
11.7
20
19
1
5.3
Net income Other information No. of employees No. of branches
52
Banca Lombarda International The financial statements of Banca Lombarda International report a very positive picture. Customer assets under administration climbed 13.9% to L. 3,344 billion. Both direct customer deposits and indirect deposits contributed to this result, rising by 13.3% (to L. 340 billion) and 14% (to L. 3,004 billion) respectively. Loans to customers were stable at L. 206 billion, and the securities portfolio stayed at L. 241 billion. In the statement of income, net interest income rose from L. 2.4 to L. 4.4 billion (+78.4%) and net income from services rose from L. 5.2 to 8.5 billion (+62.4%), particularly thanks to brokerage fees and performance commissions. Operating income came to L. 9.2 billion (+70%). The year closed with net income of L. 4 billion, up 79.2% on 1999. S.B.S. Leasing SBS Leasing signed 10,601 new lease contracts worth L. 1,704 billion, an increase of 35.7% in number and of 51.4% in volume. The growth in leases for operating assets was particularly significant (+63.7%). The total value of leased assets amounted to L. 2,763 billion, up 48.7% compared with December 1999. Non-performing positions fell as a percentage of total loans, from 0.22% at December 31, 1999 to 0.15% a year later. Income from lending rose 1.3% to L. 46.7 billion, while operating income fell by 6.2%. This decrease mainly reflected higher payroll costs and expenses incurred to help the company achieve its growth targets. Income from operating activities was L. 24.7 billion, up 3.6% on 1999. Net income decreased to L. 8.5 billion, due to a provision of L. 10 billion to the reserve for possible loan losses that was made exclusively for tax purposes. CBI Factor CBI Factor reported good results for 2000. The amount of operations performed during the year climbed by 14.25% to L. 5,902 billion. Loans fell by 7.7% to L. 1,478 billion, due to the lower proportion of purely financial operations. Net non-performing loans fell from L. 53.7 billion in 1999 to L. 48 billion in 2000, amounting to 3.25% of total loans (3.35% as of December 31, 1999). Net income, at L. 6.8 billion, improved by 15.1% on the previous year. Silf Under the three-year strategic plan that the Parent Bank drew up during the second half of 2000, from now on SILF will be a production company operating in the field of retail loans. Therefore, SILF is concentrating more on that sector and moving away from factoring and leasing. In 2000, loans to purchase consumer or operating assets grew by 23.4%, reaching L. 155 billion. The “vehicles and motorcycles” sector reported the
53
largest increase, reflecting the incentives introduced by legislation on environmentally-friendly fuels. The statement of income closed with net income of L. 164 million. Capitalgest Sgr The asset management company managed assets of L. 16,967 billion as of December 31, 2000, compared with L. 14,580 billion a year earlier. The increase of +16.4% contrasts with a decrease of 4.7% reported for Italian mutual funds as a whole. Eighteen of our twenty funds, representing more than 92% of total assets under management, outperformed the industry average in their categories. The rise in volumes also benefited the statement of income. Net commission income nearly tripled, partly thanks to sizeable performance-related commissions, and net income shot up from L. 11.4 billion in 1999 to L. 41.1 billion in 2000. Solofid e Sifru Gestioni Fiduciarie Sim The trust companies Solofid and Sifru Gestioni Fiduciarie SIM administered an aggregate of L. 921 billion in assets as of December 31, 2000, compared with L. 957 billion a year earlier. More specifically, Solofid administered L. 768 billion, in line with the previous year, and reported a loss of L. 118 million (compared with a profit of L. 41 million in 1999). Sifru Gestioni Fiduciarie SIM administered assets totaling L. 153 billion (-18.6%) and reported net income of L. 205 million, versus L. 75 million the previous year. Solimm closed the year with net income of L. 62 million. In 1999 it had net income of L. 4.2 billion because of substantial capital gains on the disposal of its properties. SBIM reported a loss of L. 767 million, versus a loss of L. 189 million the previous year, in relation to design expenses for its new headquarters. Immobiliare C.R.T. closed the year with a loss of L. 41 million, attributable to financial charges. RATINGS The rating agencies Moody’s and Fitch IBCA maintained their previous years’ ratings. Banca Lombarda was also rated highly by Standard & Poor’s. Agency
Short-term debt
Medium/long-term debt
Moody’s
P-1
A2
Fitch Ibca
F1
A
Standard & Poor’s
A-2
A-
54
SIGNIFICANT SUBSEQUENT EVENTS
With effect from January 1, 2001, Banca Lombarda has transferred its entire Systems and Services Division to Lombarda Sistemi e Servizi (formerly Assifutura, a wholly-owned subsidiary of the Parent Bank). The division transferred is in charge of information technology, process organization, back office duties, purchasing, and logistics for the Bank and other Group companies. The value of the assets transferred was L. 67 billion. Centralizing these at their own, independent company is a way to maximize economies of scale and achieve greater autonomy of action for the sake of efficient services. Lombarda Sistemi e Servizi was created from the company Assifutura, which changed its business purpose as it is no longer necessary to have a separate insurance agency given the new legislation on the sale of insurance policies. At the start of 2001, the capital stock of the Parent Bank was raised from Euro 280,438,803 to Euro 280,665,123 through the issue of 226,320 ordinary shares with a par value of one euro each and dividend rights as from January 1, 2000. The new shares are to service the stock granting plan approved by the stockholders’ meeting of January 11, 2001, as discussed in the section on human resources. Pursuant to agreements between the Parent Bank and the foundations selling the controlling interest in Banca Regionale Europea, concerning ways to protect the interests of the bearers of BRE savings shares, during the first two months of 2001 Banca Lombarda carried out its takeover bid for all 46,310,550 savings shares of Banca Regionale Europea. With the bid, it offered three ordinary Banca Lombarda shares plus L. 30,000 for every 25 savings shares of BRE. When the offer period ended on February 23, 2001, stockholders owning 45,601,700 shares of Banca Regionale Europea had taken up the offer, an acceptance rate of 98.47%. The investment came to L. 173.7 billion: L. 54.7 billion in cash and L. 119.0 billion for the issue of 5,472,204 ordinary Banca Lombarda shares with a par value of one euro each (total value L. 10.6 billion at par). In order to maintain the current balance among Banca Regionale Europea stockholders with voting rights, steps were taken to demonstrate to the other BRE stockholders with voting rights that Banca Lombarda was willing, subject to the successful outcome of the offer, to grant an
55
option for the purchase of some of the BRE savings shares taken over as a result of the offer. Such shares would be sold at a unit price equal to the valuation of the savings shares as determined during the offer, plus an extra amount obtained by dividing the documented costs incurred by Banca Lombarda for executing the operation by the number of savings shares acquired under the offer. In February, Banca Lombarda bought out 100% of Mercati Finanziari SIM from the Mittel Group, for an investment of L. 19.6 billion. Presently, the company works mainly as a securities broker. As a member of the Banca Lombarda Group, its operations will be redefined and extended to the brokerage of credit derivatives.
FUTURE OUTLOOK In 2001 the Group is likely to improve on the positive lending and funding results it achieved in the year 2000. As the economy continues to grow, the demand for loans should also rise. Most of the growth will take place in short-term loans to businesses, but households will also maintain a healthy demand for medium- and long-term loans. Funding is expected to grow more slowly than loans, but also more evenly between the short- and long-term components. Asset management still has considerable room for growth, mainly thanks to product innovation. The bancassurance sector has good prospects as well, which the Group will exploit by refurbishing the range of products. The rise in assets administered by the Group will support the growth of net interest income, which - along with income from services - will raise net income even further than the level it reached in 2000. The financial expenses required by the anti-usury measures passed with Legislative Decree 394 of December 29, 2000, which was converted into law on February 28, 2001, should have a negligible effect on the results of each subsidiary bank as well as on the consolidated statement of income. Brescia, March 14, 2001 The Board of Directors
56
Report of Independent Auditors
57
Consolidated financial statements as of December 31, 2000
61
CONSOLIDATED BALANCE SHEET (millions of lire) 31.12.2000
ASSETS 10 Cash and deposits with central banks and post offices
31.12.1999 pro-forma (1)
Change Amount
%
228,070
286,177
-58,107
-20.3
20 Treasury bills and other bills eligible for refinancing with central banks
2,110,581
2,680,616
-570,035
-21.3
30 Due from banks:
2,350,647
2,282,072
68,575
3.0
a) repayable on demand
1,287,545
367,657
919,888
250.2
b) other deposits
1,063,102
1,914,415
-851,313
-44.5
40 Loans to customers
33,897,881
30,249,706
3,648,175
12.1
3,855
12,255
-8,400
-68.5
including: – loans using public funds 50 Bonds and other debt securities:
5,750,505
7,351,267
-1,600,762
-21.8
a) public entities
3,784,856
4,968,913
-1,184,057
-23.8
b) banks
1,598,348
1,771,679
-173,331
-9.8
63,572
29,730
33,842
113.8
including: – own securities c) financial institutions
50,231
28,461
21,770
76.5
317,070
582,214
-265,144
-45.5
60 Shares, quotas and other forms of capital
186,138
240,080
-53,942
-22.5
70 Equity investments:
831,026
746,553
84,473
11.3
a) carried at equity
81,577
56,869
24,708
43.4
749,449
689,684
59,765
8.7
1,230
824
406
49.3
1,230
824
406
49.3
1,512,303
212,700
1,299,603
611.0
–
16,418
-16,418
-100.0
194,004
217,668
-23,664
-10.9
d) other issuers
b) other 80 Equity investments in Group companies: a) carried at equity 90 Goodwill arising on consolidation 100 Goodwill arising on application of the equity method 110 Intangible fixed assets including: – start-up costs – goodwill 120 Tangible fixed assets 150 Other assets 160 Accrued income and prepaid expenses: a) accrued income b) prepaid expenses
206
7,871
-7,665
-97.4
88,027
106,408
-18,381
-17.3
909,314
742,748
166,566
22.4
3,330,706
2,425,623
905,083
37.3
620,907
409,815
211,092
51.5
538,531
334,249
204,282
61,1
82,376
75,566
6,810
9.0
3,062
7,556
-4,494
-59.5
51,923,312
47,862,267
4,061,045
8.5
including: bond issue discount TOTAL ASSETS
1) Adjusted for comparison with the consolidated financial statements as of December 31, 2000, as detailed in the notes.
62
LIABILITIES AND STOCKHOLDERS’ EQUITY
31.12.2000
10 Due to banks:
31.12.1999 pro-forma (1)
Change Amount
%
3,765,837
4,886,264
-1,120,427
a) repayable on demand
1,150,020
1,315,440
-165,420
-12.6
b) time deposits or with notice period
2,615,817
3,570,824
-955,007
-26.7
24,968,121
23,530,301
1,437,820
6.1
19,466,822
17,902,391
1,564,431
8.7
5,501,299
5,627,910
-126,611
-2.2
12,331,696
10,505,206
1,826,490
17.4
10,488,186
8,719,180
1,769,006
20.3
1,413,061
1,542,781
-129,720
-8.4
430,449
243,245
187,204
77.0
5,791
14,855
-9,064
-61,0
3,637,317
3,643,756
-6,439
-0.2
20 Due to customers: a) repayable on demand b) time deposits or with notice period 30 Securities issued: a) bonds b) certificates of deposit c) other 40 Public funds administered 50 Other liabilities 60 Accrued expenses and deferred income:
-22.9
603,958
350,274
253,684
72.4
a) accrued expenses
561,972
318,310
243,662
76.5
b) deferred income
41,986
31,964
10,022
31.4
70 Provision for termination indemnities
363,221
345,790
17,431
5.0
80 Provisions for liabilities and charges:
713,268
565,739
147,529
26.1 12.3
a) pensions and similar commitments
66,830
59,496
7,334
554,462
395,916
158,546
40.0
91,976
110,327
-18,351
-16.6
157,564
130,134
27,430
21.1
2,013,637
1,113,451
900,186
80.8
49,178
49,178
–
–
28
28
–
–
140 Minority interests
901,496
866,217
35,279
4.1
150 Capital stock
543,005
251,059
291,946
116.3
160 Additional paid-in capital
615,262
403,412
211,850
52.5
170 Reserves:
927,781
834,007
93,774
11.2
256,828
231,419
25,409
11.0
–
–
–
–
670,953
602,588
68,365
11.3
6,062
196,155
-190,093
-96.9
3
1
2
–
320,087
176,440
143,647
81.4
51,923,312
47,862,267
4,061,045
8.5
b) taxation c) other 100 Reserve for general banking risks 110 Subordinated liabilities 120 Negative goodwill arising on consolidation 130 Negative goodwill arising on application of the equity method
a) legal reserve c) statutory reserves d) other reserves 180 Revaluation reserves 190 Retained earnings (accumulated losses) 200 Net income (loss) for the year TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
1) Adjusted for comparison with the consolidated financial statements as of December 31, 2000, as detailed in the notes.
63
GUARANTEES AND COMMITMENTS (millions of lire) 31.12.2000
10 Guarantees given:
2,462,183
31.12.1999 pro-forma (1)
2,150,269
Change Amount
%
311,914
14.5
including: – acceptances – other guarantees 20 Commitments
15,996
35,359
-19,363
-54.8
2,446,187
2,114,910
331,277
15.7
5,001,864
1,865,231
3,136,633
168.2
1) Adjusted for comparison with the consolidated financial statements as of December 31, 2000, as detailed in the notes.
64
CONSOLIDATED STATEMENT OF INCOME (millions of lire) 31.12.2000 10
31.12.1999 pro-forma (1)
Change Amount
%
Interest income and similar revenues including from: – loans to customers – debt securities
2,676,295
2,102,696
573,599
27.3
1,932,098 508,125
1,482,798 542,495
449,300 -34,370
30.3 -6.3
Interest expense and similar charges including on: – due to customers – securities issued
-1,491,069
-984,271
506,798
51.5
-490,786 -499,053
-319,712 -371,117
171,074 127,936
53.5 34.5
30
Dividends and other revenues 121,422 a) from shares, quotas and other forms of capital 79,744 b) from equity investments 41,678 c) from equity investments in Group companies –
58,341 8,630 48,267 1,444
63,081 71,114 -6,589 -1,444
108.1 – -13.7 –
40
Commission income
993,500
771,549
221,951
28.8
50
Commission expense
-108,811
-83,545
25,266
30.2
60
Profits (losses) on financial transactions
90,137
75,979
14,158
18.6
70
Other operating income
197,007
175,215
21,792
12.4
80
Administrative costs: a) payroll including: – wages and salaries – social security charges – termination indemnities – pensions and similar commitments b) other administrative costs
-1,328,711 -789,795
-1,307,461 -776,351
21,250 13,444
1.6 1,7
-540,429 -170,439 -40,316 -13,408 -538,916
-537,510 -165,349 -39,325 -19,990 -531,110
2,919 5,090 991 -6,582 7,806
0.5 3.1 2.5 -32.9 1.5
-245,837
-223,705
22,132
9.9
100 Provisions for liabilities and charges
-22,867
-28,357
-5,490
-19.4
110 Other operating expenses
-21,302
-10,020
11,282
112.6
-232,295
-223,785
8,510
3.8
65,051
58,009
7,042
12.1
-483
-1,782
-1,299
–
33,814
2,561
31,253
–
725,851
381,424
344,427
90.3
84,325
109,846
-25,521
-23.2
200 Extraordinary charges
-19,529
-15,094
4,435
29.4
210 Extraordinary income, net
64,796
94,752
-29,956
-31.6
230 Change in reserve for general banking risks
-26,909
-3,208
23,701
–
-371,781
-239,148
132,633
55.5
-71,870
-57,380
14,490
25.3
320,087
176,440
143,647
81.4
20
90 Adjustments to intangible and intangible fixed assets
120 Adjustments to loans and provisions for guarantees and commitments 130 Writebacks of loans and provisions for guarantees and commitments 150 Adjustments to financial fixed assets 170 Profit (loss) from investments carried at equity 180 Income from operating activities 190 Extraordinary income
240 Income taxes 250 Income (loss) attributable to minority interests 260 Net income for the year
1) Adjusted for comparison with the consolidated financial statements as of December 31, 2000, as detailed in the notes.
65
Introduction
EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Part A - Accounting policies Section 1 - Description of accounting policies Section 2 - Adjustments and provisions made for tax purposes Section 3 - Other information
Part B - Information on the consolidated balance sheet Section 1 - Loans Section 2 - Securities Section 3 - Equity investments Section 4 - Intangible and tangible fixed assets Section 5 - Other assets Section 6 - Payables Section 7 - Provisions Section 8 - Capital stock, equity reserves, reserve for general banking risks and subordinated liabilities Section 9 - Other liabilities Section 10 - Guarantees and commitments Section 11 - Concentration and distribution of assets and liabilities Section 12 - Administration and dealing on behalf of third parties
Part C - Information on the consolidated statement of income Section Section Section Section Section Section Section
1 2 3 4 5 6 7
-
Interest Commission Profits (losses) on financial transactions Administrative costs Adjustments, writebacks and provisions Other statement of income captions Other information on the statement of income
Part D - Other information Section 1 - Directors and Statutory Auditors
66
INTRODUCTION
The consolidated financial statements comprise the balance sheet, statement of income and these notes, and the report on operations for the year, pursuant to Decree 87/1992 which regulates the statutory and consolidated financial statements of banks and similar institutions. The explanatory notes, which form an integral part of these financial statements, provide all the information needed to present a true and fair view of the financial and operating situation, even though such information may not be specifically required by law. The following schedules are also provided: - Statement of changes in consolidated stockholders’ equity - Statement of changes in consolidated financial position The balance sheet and statement of income are also presented in euros to give an idea of what the Bank’s figures look like in the new European single currency. The consolidated financial statements have been audited by Arthur Andersen SpA in accordance with the stockholders’ resolution dated April 30, 1998 which appointed them as auditors for the three-year period 1998-2000. All information, unless otherwise specified, is presented in millions of lire.
67
PART A CONSOLIDATION METHODS AND ACCOUNTING POLICIES
The methods used to prepare the consolidated financial statements of the Banca Lombarda Group comply with current Italian law (Decree 87/1992) and with Bank of Italy Instructions (issued on January 16, 1995 and August 7, 1998). They take account of the accounting principles applied in Italy. The financial statements have been drawn up in such as way as to give preference to substance over form, where possible, recording transactions at the time of settlement rather than at the time of negotiation. The accounting policies used by the companies included in the consolidation are predominantly those of the Parent Bank. The financial statements as of December 31, 2000 of the Banca Lombarda Group are compared with a pro-forma set of financial statements as of December 31, 1999. This entailed restating the historical figures as of that date to reflect the acquisition of 50.1% of B.R.E. Banca and its subsidiaries. The attachments report the adjustments made in order to prepare the pro-forma version. They also include schedules showing the balance sheet and statement of income figures compared with the historical amounts, i.e. prior to the above adjustments. Scope of consolidation The consolidated financial statements comprise the financial statements of Banca Lombarda S.p.A., the Parent Bank, and of those subsidiary companies, which operate in the banking, financial and related sectors. Non-controlling investments, representing at least 20% of capital, in companies operating in the banking, financial and related sectors are carried at equity, as are other subsidiaries not operating in those sectors. Holdings of less than 20% are carried at cost.
CONSOLIDATION METHODS Consolidation line-by-line The assets, liabilities and off-balance sheet transactions of companies included within the scope of consolidation are consolidated on a line-by-line basis. The book value of investments is eliminated against the related stockholders’ equity at the time of acquisition or initial consolidation. The differences that emerge as a result of the above elimination are allocated, where possible, to the assets and liabilities of the subsidiaries concerned. Residual differences: - if positive, are classified as “goodwill arising on consolidation” and amortized over ten years on a straight-line basis. The portions relating to the acquisition of Banca Cassa di Risparmio di Tortona S.p.A. and Banca
68
Regionale Europea S.p.A. are being amortized over twenty years, in view of the benefits expected from the acquisition and the assumptions made when the purchase price was determined. - if negative, is classified as “negative goodwill arising on application of the equity method”, which forms part of consolidated stockholders’ equity. Equity method The book value of investments is compared with the Group’s share of the related stockholders’ equity at the time this method is first applied. The difference in these values: - if positive: a) where relating to depreciable assets, is classified among “equity investments” and depreciated using the rates applicable to the fixed assets concerned. b) where relating to goodwill, is classified as “goodwill arising on application of the equity method”. This value is generally amortized on a straight-line basis over five years. As far as Augusta Vita S.p.A. is concerned, following agreements for its disposal in 2001, the book value was brought into line with the Bank’s share of stockholders’ equity, writing off all of the difference during the year. Previously goodwill was amortized over a period of 10 years, which was considered an adequate length of time for the benefits of the acquisition to accrue. - if negative, is classified as “negative goodwill arising on application of the equity method”, which forms part of consolidated stockholders’ equity Elimination of intercompany transactions Amounts due to and from consolidated companies, off-balance sheet transactions and revenues and costs arising from such balances are eliminated, together with profits and losses from dealing transactions between the companies concerned, with the exception of transactions in securities as these are carried out at arm’s-length conditions and for a consideration. Minority stockholders The minority interests in equity and results of consolidated companies are classified separately in the consolidated financial statements. Dividends Dividends of the companies included in consolidation are not recorded in the consolidated statement of income.
69
Consolidating financial statements The consolidated financial statements are prepared using the financial statements of the individual Group companies, as prepared by their respective Boards of Directors for approval at stockholders’ meetings held before that of Banca Lombarda. S.B.S. Leasing S.p.A. is consolidated with reference to financial statements prepared using lease accounting methodology Accounting reference date The financial statements used for consolidation purposes were all prepared as of December 31, 2000, which is the accounting reference date of the Parent Bank.
Section 1 – Description of accounting policies 1) Loans, Guarantees and Commitments 1.1 Loans to customers Loans, including contractual and default interest, are stated at their estimated realizable value. This value is determined by writing down principal and interest to reflect expected losses. Estimated loan losses take into account the solvency of the debtor, considering any information obtained subsequent to year-end. In particular: loans are 1.assessed in detail to determine the expected loss on each account, considering: - non-performing loans, including both principal and interest, -significant problem loans (equal to or over L. 30 million), -other loans that, due to size or the particular characteristics of the debtor, are subject to specific review, -restructured loans earning less than the refinancing rate; 2. assessed with reference to the performance of the sectors concerned and historical-statistical data – the resulting adjustments being applied to the individual accounts concerned – to take account of the risk of loss inherent in normal banking activities: - loans to customers in sectors experiencing crisis or recovery conditions, - small problem loans (less than L. 30 million), - other performing loans. In assessing performing loans, account is taken of: - the creditworthiness of the customers, assigning lower writedown per-
70
centages to customer groups who qualify for a higher standing; - the ways in which lines of credit are used, lowering the level of writedowns of transactions that are self-liquidating and those with secured repayment plans. Loans involved in country risk are valued on a forfeit basis at rates applied throughout the banking system. The assessment of restructured loans earning less than the refinancing rate, i.e. 3-month Ribor, takes account of the loss arising from discounting to present, financial flows deriving from the difference between the agreed interest rate and the refinancing rate. The above adjustments are charged to the statement of income. The original value of loans is reinstated by crediting the “writeback” account, if the reasons for any writedowns cease to apply Default interest considered collectible is covered in the financial statements of consolidated companies by Reserves for possible loan losses, in order to defer the taxation of such income until collection. For consolidation purposes, such provisions are credited to stockholders’ equity, net of taxation, to the extent that they relate to prior periods, while the current year element is credited to the statement of income. The same applies to any difference between total loan writedowns booked during the year, i.e. the maximum amount allowed for tax purposes, and the adjustments needed to value loans at their estimated realizable value. These amounts were booked to the reserve for loan losses in the financial statements of the individual consolidated companies. 1.2 Explicit and implicit loans relating to lease contracts For consolidation purposes, leases are recorded under the finance leasing method. Implicit and explicit loans are stated at their estimated realizable value. Writedowns are made taking into account the solvency of the debtor.
1.3 Other amounts due Other amounts due are stated at nominal value, which represents their estimated realizable value. They include interest paid at the end of the period. Loans involved in country risk are valued on a forfeit basis at rates applied throughout the banking system. 1.4 Guarantees and commitments Guarantees given are stated at the value of the related commitment. Securities to be received are stated at the forward price contracted with the counterparties. Commitments to grant finance to counterparties and customers are stated
71
at the amount still to be drawn. The risk associated with guarantees given and commitments to grant funds is assessed on the basis applied in relation to cash lending. Doubtful positions are covered indirectly by the provisions for liabilities and charges. Any surplus provisions are released to the statement of income as writebacks.
2) Securities and off-balance sheet transactions (not including currency transactions) 2.1 Investment securities Investment securities are valued at specific cost, as adjusted to reflect the accrued difference between such cost and their redemption value upon maturity. Cost includes accrued issue discounts and rolled-up interest on securities that earn implicit interest. 2.2 Dealing securities These securities are held for dealing purposes or to cover treasury requirements. Dealing securities are valued at the lower of cost and market value. Cost is determined on a LIFO basis with annual layers, with the exception of Banca Regionale Europea S.p.A. – acquired in the first half of 2000 – which uses daily weighted average cost. In preparing the consolidated financial statements it was not possible to calculate the effect on stockholders’ equity and results for the year of this difference in accounting treatment. However, the necessary procedures to harmonize accounting principles are already underway. Cost includes accrued issue discounts and rolled-up interest on securities that earn implicit interest. Market value is determined as follows: - securities quoted on organized markets: the average of the prices struck during December; - securities not quoted in organized markets: the average of the prices struck during December for quoted securities with similar characteristics or otherwise, the prices quoted in unofficial markets or by specialist sources. In the absence of a reference price, the estimated realizable value is obtained by discounting to present value the flows of interest and expected payments using interest rates available. The original value of such securities is reinstated in future accounting periods if the reasons for any writedowns cease to apply.
72
2.3 Off-balance sheet transactions on securities The valuation of derivative contracts open at year-end depends on whether they hedge assets and liabilities that generate interest, or are held for dealing purposes. 1.Hedging contracts are valued on a basis consistent with that applied in relation to the hedged assets, liabilities and off-balance sheet positions (at cost for assets and liabilities whose valuation is not affected by market conditions, and at the lower of cost or market for assets and off-balance sheet items whose valuation is affected by market conditions). The results of these valuations are reflected in the statement of income as “Profits (losses) on financial transactions” and matched among “Other assets/liabilities” in the balance sheet. Overall, no gains are recorded as a result of these valuations. In the case of contracts hedging dealing securities that involve the payment of a single differential or margin (single-flow contracts), differentials are reflected in full in the statement of income in the accounting period in which they arise: - as “Interest income/expense”, when the underlying asset has a life of less than one year; - as “Profits (losses) on financial transactions” when the underlying asset has a life of more than one year. The differentials on other derivatives hedging assets and liabilities which generate interest, are reflected in the statements of income on an accruals basis as interest. 2. Dealing contracts are valued at the lower of purchase cost or market value: - differentials from dealing on own account are recorded as “Profits (losses) on financial transactions”; - commission income and expense arising from dealing on behalf of customers is recorded in the appropriate captions when collected. Commitments to the forward purchase (sale) of securities relative to contracts open at year-end are valued using the criteria adopted for the portfolio to which they belong. Writedowns and revaluations are included in the caption “Profits (losses) on financial transactions” within the statement of income.
3) Equity investments Equity investments are stated at purchase cost or their previously adjusted value, except where consolidated or carried at equity as described earlier.
73
Such amounts are written down by charges to the statement of income to reflect any permanent reductions in value.
4) Foreign currency assets and liabilities (including off-balance sheet transactions) Assets, liabilities and spot and forward off-balance sheet transactions denominated in foreign currency are translated to lire using the year-end exchange rates. The valuation of assets and liabilities linked to off-balance sheet transactions takes account of such transactions. The effect of any adjustments is recorded in the “profits on financial transactions” caption of the statement of income. Foreign currency revenues and expenses are stated using the exchange rates applying at the time they are recorded.
5) Tangible fixed assets Tangible fixed assets are recorded at purchase cost, including related charges, or their previously adjusted value. They are stated net of accumulated depreciation. Depreciation is provided on a straight-line basis using rates which write down the related assets over their residual economic useful lives. In cases where there is a permanent impairment of value, the asset is written down to reflect the loss, irrespective of how much has already been depreciated. The original value is written back if the reasons for the writedown no longer exist. Non-banking property that is not directly utilized by the Bank is not depreciated since its value is retained as a result of maintenance expenditure. Compared with the values shown in the books of the individual companies, accelerated depreciation charged solely to gain tax benefits has been reversed.
6) Intangible fixed assets These are stated at purchase cost, including related charges, and amortized systematically over the period they are expected to benefit. They include start-up and expansion costs, purchased goodwill and other costs benefiting future periods Where explicitly required by regulations, such costs are recorded in the financial statements of each consolidated company with the agreement of the Statutory Auditors. Intangible fixed assets are amortized over a maximum of five years, with the exception of the goodwill recorded on the merger of group companies. This is charged over ten years, which is considered to be the period that these costs
74
will benefit. In cases where there a permanent impairment of value, irrespective of the amortization already recorded, the asset is written down to reflect the loss. The original value is written back if the reasons for the writedown no longer exist. The VAT system adopted by Banca Regionale Europea S.p.A., an investment acquired during the first half of 2000, is that required by article 36-bis of Decree 633/72 and differs from the ordinary VAT system adopted by other companies in the Group. As a result, the cost of tangible and intangible fixed assets of B.R.E. Banca includes VAT. In its consolidated financial statements, this rule has not been adjusted to that of the Group as it is difficult to calculate the effect of this difference in accounting treatment on stockholders’ equity and the statement of income.
7 ) Other aspects 7.1 Accruals and deferrals Accruals and deferrals are recorded in order to match income and expenses in the accounting periods to which they relate. 7.2 Provision for termination indemnities The provision for termination indemnities covers the liability to all employees as of December 31, 2000, accrued in accordance with current legislation. In accordance with specific agreements, amounts accrued by the employees of certain Group companies recruited after April 28, 1993 are transferred to internal supplementary pension funds. In the case of Banca Regionale Europea S.p.A., the supplementary pension fund also includes a portion of the total provision which relates to employees hired before April 28, 1993 who exercised a specific option on the basis of company agreements. 7.3 Provisions for liabilities and charges Pension fund The staff pension funds of Banca Regionale Europea S.p.A. and Banca Cassa di Risparmio di Tortona S.p.A. represent the total amount of current and future commitments to retired and working personnel according to the regulations of the individual bank.
75
Provision for taxation The provision for taxation covers indirect taxes and income taxes payable, determined from a prudent assessment of the tax liability under current fiscal regulations. Deferred taxation has been recorded in accordance with the Bank of Italy’s instructions published in the Official Gazette No. 188 of August 12, 1999. Deferred tax assets and liabilities are calculated on the timing differences between the value of assets or liabilities for accounting purposes and the corresponding value for tax purposes. The deferred tax asset or liability is calculated using the rates expected to apply when the related timing differences reverse. In particular, deferred tax assets are recognized only when it is reasonably certain they will be recovered. Moreover, the deferred tax liabilities relating to the reserves in suspense for tax purposes have been excluded as it is highly unlikely that the transactions that might bring about their taxation will be carried out.
Other provisions Other provisions cover losses on guarantees given and commitments undertaken, as well as other known or likely losses whose timing and extent cannot be determined at year-end or by the date these financial statements are prepared. Provisions to cover the above liabilities reflect the best possible estimates made on the basis of the information available.
7.4 Reserve for general banking risks This reserve covers general business risks and therefore forms part of the equity reserves. Any net change during the period is reflected in the statement of income. 7.5 Subordinated liabilities and other securities issued These are recorded at their issue value, which corresponds to their nominal value except in the case of zero-coupon bonds, which include the related rolled-up interest. 7.6 Payables Payables are stated at face value. They include interest paid at period end.
76
Section 2 – Adjustments and provisions made for tax purposes 2.1 Adjustments recorded solely for tax purposes by consolidated companies have been eliminated on consolidation and the related deferred taxation has been provided at 41%. 2.1 Provisions recorded solely for tax purposes by consolidated companies exclusively concern those covering loan losses. Such provisions have been eliminated on consolidation and the related deferred taxation has been provided at 41%.
Section 3 – Other information The following is an explanation of when various balance sheet and statement of income items are booked. Amounts due from and to customers Current account transactions with customers are accounted for at the time they are carried out. Other transactions (bill portfolio, international transactions, securities, etc.) are booked on settlement. Amounts due from and to banks These are booked on settlement. Other receivables and payables Transactions are accounted for when carried out. Securities Transactions in securities and similar instruments are accounted for on settlement. Interest accrued and not yet collectible is booked as accrued income, except for securities with implicit interest, for which the interest is rolled-up. Repurchase agreements Repurchase agreements on securities for which there is a simultaneous commitment on the part of the assignee are considered to be the same as contangos; the amounts received and paid are therefore booked as payables and receivables. The cost of funding and the return on the investment, represented by the coupons and any issue discount accruing on the securities and by the differ-
77
ential between the spot price and the forward price of the same are booked on an accruals basis to the interest captions in the statement of income, accounting for the related accrued income and expense. Assets and liabilities in foreign currency Assets and liabilities in foreign currency are accounted for on settlement.
Information required by CONSOB resolution 1011405 of February 15, 2001 The following information is given in compliance with CONSOB resolution 1011405 of February 15, 2001: Capitalization of interest due The Italian banking system in general, and banks in the Group have received numerous requests to recalculate interest applied to current accounts. Customers think that such interest is unjustifiable because of so-called “anatocism” (the charging of interest on interest). The Constitutional Court recently passed sentence on certain aspects of the matter (sentence 425 of October 9, 2000), declaring illegitimate, due to misuse of power, that part of article 25.3 of the Decree of August 4, 1999, which sanctioned the effects to date of capitalizing interest. Together with the rest of the banking system, being convinced that Parliament will change the provision declared illegitimate by the Supreme Court, Group banks have decided not to recalculate interest and therefore not to make any provision. Tax benefits included in Decree 153 of May 17, 1999 In estimating current income taxes within the ambit of the Group, Banca Lombarda, Banca di Valle Camonica and Banca di Genova e San Giorgio, have taken into account the tax benefits provided by the above Decree. The total benefit in terms of taxes for the year 2000 comes to around L. 25.1 billion. Tax benefits booked as of December 31, 1999 amounted to around L. 27.1 billion. The Treasury and Finance Ministries issued a joint statement on April 3, 2000 announcing the suspension of these provisions following the European Commission’s request to this effect on March 23, 2000. These provisions will be suspended until the Commission has received the necessary explanations from the Italian government and has issued its opinion on whether the benefits in question are compatible with EC law. There were no further official statements on this subject after this date, nor were any measures taken to cancel or amend the regulations of Decree 153/1999. Since the EC has not put forward any legislative or regulatory measures, it is believed that at present, its position does not compromise
78
the Bank’s right to take advantage of the benefits in question, as granted by legal provisions that are still perfectly valid. It was therefore not considered necessary to make any provision for the distant risk of these benefits not being recognized some time in the future, given that there is total uncertainty as to both the timing and outcome of such an eventuality. Building trade reduced-rate mortgage loans (Law 133 of May 13, 1999) Of all the Group’s banks, only Banco di Brescia has granted a reduced-rate mortgage loan (one in total). In any case, the effects of article 29 of Law 133 on May 13, 1999 are not applicable. This article permits the bodies granting subsidies and the receivers of these subsidies, to ask the financing bank to renegotiate the loan should the interest rate applied be higher than that determined in compliance with Law 108/96 (the “anti-usury law”). Unassisted fixed-rate mortgage loans (Decree 394 of December 29, 2000) This decree is an interpretation of Law 108/96, which provides for a reduction in interest considered excessive (or “usurious”) compared with repayments on fixed-rate loans maturing after January 2, 2001. The value of such loans is immaterial with respect to the total assets of the banks in the Group and in any case the economic impact of this Decree, which should start emerging as from 2001, will be limited.
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Section 1 - Loans (captions 30 and 40)
PART B 1.1 Details of caption 30 “Due from banks”
INFORMATION ON THE CONSOLIDATED BALANCE SHEET
31.12.2000
31.12.1999
Changes
218,919
630,842
-411,923
b) notes eligible for refinancing at central banks
–
–
–
c) due on leasing contracts
–
–
–
174,316
–
174,316
–
–
–
31.12.2000
31.12.1999
Changes
a) due from central banks
d) repurchase agreements e) securities loaned
This caption includes:
Correspondent current accounts
128,780
76,289
52,491
Obligatory reserve with the Bank of Italy
218,919
630,842
-411,923
1,570,215
1,212,761
357,454
Loans
152,224
270,090
-117,866
Repurchase agreements
174,316
–
174,316
Deposits
Non-performing loans Other Totale due from banks
179
180
-1
106,014
91,910
14,104
2,350,647
2,282,072
68,575
Exposures to risk included in the caption “Due from banks” are shown in the following table:
A) Doubtful loans
Gross exposure
Total writedowns
Net exposure
386
-62
324 179
a.1
Non-performing loans
179
–
a.2
Problem loans
–
–
–
a.3
Loans being restructured
–
–
–
a.4
Restructured loans
a.5
Unsecured loans to countries at risk
B) Performing loans Total
80
–
–
–
207
-62
14
2,350,323
–
2,350,323
2,350,709
-62
2,350,647
Doubtful loans to banks as of December 31, 2000 Problem loans
Loans being restructured
Restructured loans
Unsecured loans to contry at risk
179 – – – –
– – – – –
– – – – –
– – – – –
11,711 – 207 – –
– – – – – – –
– – – – – – –
– – – – – – –
– – – – – – –
– 207 11,711 – – 430 –
– – 179 –
– – – –
– – – –
– – – –
– 11,281 207 –
Non performing loans
A. Gross exposure as of 1.1.2000 A.1. including: default interest B. Increases B.1. transfers from performing loans B.2. default interest B.3. transfers from other categories of doubtful loans B.4. other increases C. Decreases C.1. transfers for performing loans C.2. write-offs C.3. collections C.4. recovery through assignment C.5. transfers to other categories of doubtful loans C.6. other decreases D. Gross exposure as of 31.12.2000 D.1. including: default interest
Movements in writedowns during the year are as follows Non performign loans
A. Total writedowns as of 1.1.2000 A.1. including: default interest B. Increases B.1. writedowns B.1.1. including: default interest B.2. use of provisions for possible loan losses. B.3. transfers from other loan categories B.4. other increases C. Decreases C.1. writebacks C.1.1. including: default interest C.2. writebacks on collection C.2.1. including: default interest C.3. write-offs C.4. transfers to other loan categories C.5. other decreases D. Total writedowns as of 31.12.2000 D.1. including: default interest
81
Unsecured Restructured loans to loans countries at risk
Problem loans
Loans being restructured
– – –
– – –
– – –
– – –
– – – – – – – – – – – – – –
– – – – – – – – – – – – – –
– – – – – – – – – – – – – –
– – – – – – – – – – – – – –
129 – 62 62 – – – – 129 – – 129 – – – – 62 –
Performing loans – – – – – – – – – – – – – – – – –
1.2 Details of caption 40 “Loans to customers” 31.12.2000
31.12.1999
Changes
105,069
101,650
3,419
2,759,053
1,854,898
904,155
11,323
–
11,323
–
–
–
31.12.2000
31.12.1999
Changes
6,956,262
6,070,075
886,187
21,259,752
18,835,618
2,424,134
315,395
292,785
22,610
Due on leasing contracts (*)
2,759,053
1,854,898
904,155
Due on factoring transactions (*)
1,746,017
1,820,599
-74,582
a) notes eligible for refinancing at central banks b) due on leasing contracts c) repurchase agreements d) securities loaned
Loans to customers are analyzed by technical form below:
Current accounts Loans, grants, advances and mortgages Discounted notes
Non-performing loans
445,166
498,184
-53,018
Other
404,913
877,547
-472,634
33,886,558
30,249,706
3,636,852
11,323
–
11,323
33,897,881
30,249,706
3,648,175
Sub total Contangos and repurchase agreements Total
(*) Net of non-performing loans
The degree of risk in the loan book is shown in the following table:
Gross exposure
A) Doubtful loans
Total writedowns
Net exposure
1,182,417
-357,538
824,879
a.1
Non-performing loans
754,637
-309,471
445,166
a.2
Problem loans
361,475
-36,264
325,211
a.3
Loans being restructured
a.4
Restructured loans
a.5
–
–
–
64,043
-11,384
52,659
2,262
-419
1,843
33,213,009
-140,007
33,073,002
34,395,426
-497,545
33,897,881
Unsecured loans to countries at risk
B) Performing loans Total
82
Doubtful loans to customers as of December 31, 2000 Unsecured Non performing loans
Problem
Loans being
Restructured
loans to
loans
restructured
loans
countries at risk
A. Gross exposure as of 1.01.2000
822,718
450,127
12,102
62,047
1,109
A. 1. including: default interest
103,826
2,707
52
–
–
268,413
172,252
–
6,347
1,533
123,543
130,829
–
3,284
–
16,568
917
–
–
–
98,128
18
–
2,897
–
B. Increases B.1. transfers from performing loans B.2. default interest B.3. transfers from other categories of doubtful loans B.4. other increases
30,174
40,488
–
166
1,533
336,494
260,904
12,102
4,351
380
129
47,405
9,480
–
227
C.2. write-offs
199,002
582
–
–
–
C.3. collections
134,921
112,501
–
3,737
153
58
282
–
–
–
C. Decreases C.1. transfers to performing loans
C.4. recovery through assignment C.5. transfers to other categories of doubtful loans C.6. other decreases D. Gross exposure as of 31.12.2000 D.1. including: default interest
55
98,440
2,622
–
–
2,329
1,694
–
614
—
754,637
361,475
–
64,043
2,262
93,677
2,664
–
–
–
Movements in writedowns for the year are as follows: Unsecured Non performing loans
A. Gross exposure as of 1.01.2000 A.1. including: default interest B. Increases B.1. writedowns
Problem
Loans begin
Restructured
loans
restructured
loans to
Performing
loans countries at risk
loans
324,304
52,451
–
9,428
220
75,131
972
–
–
–
223
205,623
23,069
–
2,074
404
63,165
117,397
128,661
21,951
–
1,944
404
59,725
B.1.1. including: default interest
13,826
358
–
–
–
328
B.2. use of provisions for possible loan losses.
39,048
–
–
–
–
–
B.3. transfers from other loan categories
35,898
901
–
–
–
3,095
B.4. other increases C. Decreases C.1. writebacks C.1.1. including: default interest C.2. writebacks on collection C.2.1. including: default interest C.3. write-offs C.4. transfers to other loan categories C.5. other decreases D. Total writedowns as of 31.12.2000 D.1. including: default interest
83
2,016
217
–
130
–
345
220,456
39,256
–
118
205
40,555
3,581
3,220
107
–
23,823
96
320
–
–
–
–
15,792
477
–
11
205
9,963
4,245
66
–
–
–
–
199,225
466
–
–
–
216
–
33,567
–
–
–
2,945
1,858
1,526
–
–
–
3,608
309,471
36,264
–
11,384
419
140,007
38,321
403
–
–
–
8
1.3 Secured loans to customers 31.12.2000
31.12.1999
Changes
a) loans secured by mortgages
5,655,075
4,539,507
1,115,568
b) loans secured by pledges on:
1,662,583
1,145,028
517,555
64,972
26,311
38,661
1. cash deposits 2. securities
1,519,194
1,102,163
417,031
3. other instruments
78,417
16,554
61,863
c) loans granted by:
7,807,001
6,825,021
981,980
581
771
-190
1. governments 2. other public entities 3. banks 4. other operators Total
5,217
2,129
3,088
626,536
186,816
439,720
7,174,667
6,635,305
539,362
15,124,659
12,509,556
2,615,103
1.4 Non-performing loans (including default interest) Non-performing loans
31.12.2000
31.12.1999
Changes
445,166
498,184
-53,018
banks
179
179
–
Total
445,345
498,363
-53,018
31.12.2000
31.12.1999
Changes
15,867
30,427
-14,560
1,970
3,427
-1,457
17,837
33,854
-16,017
31.12.2000
31.12.1999
Changes
2,110,581 5,750,505
2,680,616 7,351,267
-570,035 -1,600,762
186,138 8,047,224
240,080 10,271,963
-53,942 -2,224,739
3,207,597 4,839,627
3,162,343 7,109,620
45,254 -2,269,993
customers
1.5 Default interest due
a) non-performing loans b) other loans Total
Section 2 - Securities (captions 20, 50 and 60) The securities portfolio is made up as follows:
Treasury bills and other bills eligible for refinancing with central banks (caption 20) Bonds and other debt securities (caption 50) Shares, quotas and other forms of capital (caption 60) Total including : - Investment securities - Dealing securities
The following are the details and changes required by law.
84
2.1 Investment securities 31.12.2000
1. Debt securities 1.1 Government securities - quoted - unquoted 1.2 Other
31.12.1999
Book value
Market value
Book value
Market value
3,204,593
3,238,703
3,162,343
3,327,639
2,306,810
2,332,460
2,306,916
2,454,444
2,306,810
2,332,460
2,306,916
2,454,444
–
–
–
–
897,783
906,243
855,427
873,195
- quoted
490,638
496,779
244,990
246,774
- unquoted
407,145
409,464
610,437
626,421
3,004
3,004
–
–
2. Equities - quoted - unquoted Total
–
–
–
–
3,004
3,004
–
–
3,207,597
3,241,707
3,162,343
3,327,639
Market value represents the average of stockmarket prices during the second half of 2000 determined with the same principles as for “dealing securities”. The difference of L. 34,110 million between book and market value is partly offset by unrealized net losses of L. 35,813 million on derivative contracts entered into for hedging purposes, as described in section 10.5 The total also includes an Augusta Vita 10-year endowment policy with yield linked to the results of Augusta Risparmio Auris for L. 111,046 million. Differences between redemption value on maturity and book value (net of withholding taxes on issue discounts) are as follows:
Government securities Mortgage institutions Property bonds Agricultural bonds Other bonds Other (Augusta policy) Total
85
Positive differences
Negative differences
33,505
24,048
287
9,073
40
3
5
139
12,233
765
–
1,637
46,070
35.665
2.2 Changes during the year in investment securities
A. Opening balance
3,162,343
B. Increases
2,145,166
B1) Purchases
1,680,773
B2) Writebacks
–
B3) Transfers from dealing securities
348,974
B4) Other (*)
115,419
C. Decreases
2,099,912
C1) Sales
1,811,166
C2) Redemptions
225,465
C3) Adjustments
–
including: permanent writedowns
–
C4) Transfers to dealing securities
10,069
C5) Other (*)
53,212
D. Closing balance
3,207,597
(*) Other concerns the recording of income from sales, capitalized issue discounts and the difference between purchase and redemption costs attributed to the statement of income.
Investment securities have been treated as fixed assets in accordance with CONSOB and Bank of Italy regulations on the basis of specific resolutions by the Boards of Directors of the individual companies concerned. The values at which they have been capitalized are as follows: - securities purchased during the year: at purchase cost; - securities transferred from the dealing portfolio: at book value, which at the time was not lower than their current market value; - transfers to the dealing portfolio have been carried out at book value. Changes during the year, by type of security, are analyzed as follows: Purchases
Transfers from dealing securites
Other changes net
Transfer to Redemptions/ dealing sales securities
849,994
333,258
40,721
10,069
1,316,191
–
–
–
–
–
792,054
15,716
-2,831
–
485,729
38,725
–
24,317
–
234,711
1,680,773
348,974
62,207
10,069
2,036,631
Government securities - quoted - unquoted Other - quoted - unquoted Total
86
Had these securities not been classified as investment securities and valued on the basis used for dealing securities (i.e. average price in December 2000 instead of the second half of 2000 and valuation at the lower of cost and market), this would have given rise to a net loss of L. 4,973 million, after taking account of the value of any underlying derivative contracts. Net income and stockholders’ equity as of 31 December2000 would therefore have been lower by L. 2,864 million (net of tax). 2.3 Titoli non immobilizzati 31.12.2000 Book value Market value
31.12.1999 Book value Market value
1. Debt securities 4,600,815 1.1 Government securities 3,077,934 - quoted 3,036,682 - unquoted 41,252 1.2 Other 1,522,881 - quoted 790,008 - unquoted 732,873 2. Equities 238,812 - quoted 150,197 - unquoted 88,615
4,611,597 3,079,269 3,037,980 41,289 1,532,328 795,943 736,385 243,093 153,543 89,550
6,883,673 5,034,840 4,973,528 61,312 1,848,833 1,215,765 633,068 225,947 210,068 15,879
6,922,927 5,037,209 4,975,895 61,314 1,885,718 1,238,173 647,545 236,359 219,250 17,109
Total
4,854,690
7,109,620
7,159,286
4,839,627
The difference between book and market values, L. 15,063 million, should be considered together with the net capital losses (L. 2,092 million) on derivative hedging contracts down in section 10.5 on repurchase agreements. 2.4 Changes during the year in dealing securities A. Opening balance B. Increases B1) Purchases - Debt securities - government securities - other - Equities B2) Writebacks and revaluations (1) B3) Transfers from the investment portfolio B4) Other (2) C. Decreases C1) Sales and redemptions - Debt securities - government securities - other - Equities C2) Adjustments (1) C3) Transfers to the investment portfolio C4) Other (2) D. Closing balance
7,109,620 35,456,372 35,228,592 30,419,010 23,311,992 7,107,018 4,809,582 53,198 10,069 164,513 37,726,365 37,272,999 32,357,787 24,860,208 7,497,579 4,915,212 77,835 348,974 26,557 4,839,627
(1) Writebacks and revaluations and writedowns have been recorded in the statement of income. (2) Other changes include income from dealing activities and amounts arising on the recording of capitalized issue discounts.
87
Section 3 – Equity investments (captions 70, 80) 3.1 Significant investments NAME AND LOCATION
Type (A)
Stock Net holders’ income/ equity loss B
Investment held by
Held %
Votes at ordinary meetings %
A. CONSOLIDATED COMPANIES A.1 Line-by-line 1. BANCA DI GENOVA
1
85,392
5,869
Banca Lombarda SpA
80.30
80.30
2. BANCA DI VALLE CAMONICA SpA- Breno (BS) Capital L. 2,738,693,000 in shares of L. 1,000 each
1
148,563
9,700
Banca Lombarda SpA Banco di Brescia SpA
74.24 8.72
74.24 8.72
3. BANCA CASSA DI
1
141,010
11,354
Banca Regionale
60.00
60.00
E SAN GIORGIO SpA – Genoa Capital L. 57,130,777,150 in shares of L. 2,350 each
RISPARMIO DI TORTONA SpA - Tortona (Al) Capital L. 75,000,000,000 in shares of L. 1,000,000 each 4. BANCA LOMBARDA PREFERRED
Europea SpA
1
-449
-451
Banca Lombarda SpA
100.00
100.00
CAPITAL COMPANY - LLC - Delaware (USA) Capital Euro 1,000 each 5. BANCA REGIONALE EUROPEA SpA - Cuneo Capital L. 850,000,000,000 in shares of L. 1,000 each
1
1,516,179 116,027
Banca Lombarda SpA
50.11
53.00
6. BANCO DI BRESCIA SpA –Brescia Capital L. 812,500,000,000 in shares of L. 1,000 each
1
1,145,199 273,101
Banca Lombarda SpA
100.00
100.00
7. BANCA LOMBARDA INTERNATIONAL S.A. Luxembourg Capital Euro 10,200,000 in shares of 510 each
1
Banca Lombarda SpA Banco di Brescia SpA Banca di Genova e San Giorgio SpA
84.15 14.85
84.15 14.85
1.00
1.00
8. CAPITALGEST SpA – Brescia Capital L. 21,102,900,000 in shares of L. 10,000 each
1
65,656
41,106
Banca Lombarda SpA
100.00
100.00
9. C.B.I. FACTOR SpA - MILANO Capital L. 69,453,500,000 in shares of L. 1,000 each
1
120,210
6,771
Banca Lombarda SpA
85.16
85.16
88
25,124
3,989
Book value
NAME AND LOCATION
Type (A)
Stock Net holders’ income/ equity loss (B)
Investment held by
Held %
Votes at ordinary meetings %
Book value
10. IMMOBILIARE C.R.T. Srl - Tortona (Al) Capital L. 290,000,000 in quotas of L. 10,000 each
1
316
-41
Banca Cassa di Risparmio di Tortona SpA
100.00
100.00
11. S.B.I.M. SpA – Brescia Capital L. 28,400,000,000 in shares of L. 1,000 each
1
50,519
-767
Banca Lombarda SpA
100.00
100.00
12. S.B.S LEASING SpA – Brescia (C) Capital L. 25,000,000,000 in shares of L.10,000 each
1
73,716
8,524
Banca Lombarda SpA
98.00
98.00
13. SIFRU GESTIONI-SIM SpA - Brescia Capital L. 2,000,000,000 in shares of L. 1,000 each
1
3,459
205
Solofid SpA
100.00
100.00
14. SOC. LOMBARDA IMMOBILIARE SOLIMM SpA – Brescia Capital L. 5,000,000,000 in shares of L. 10,000 each
1
5,368
62
Banca Lombarda SpA Banca di Genova e San Giorgio SpA
98.00 2.00
98.00 2.00
15. SOLOFID SpA – Brescia Capital L. 2,000,000,000 in shares of L. 1,000 each
1
3,609
-118
Banca Lombarda SpA
100.00
100.00
16. SILF Srl - Cuneo Capital Euro 10,300,000 in one quota of Euro L. 10,300,000
1
47,853
164
Banca Regionale Europea SpA
100.00
100.00
1. LOMBARDA SISTEMI E SERVIZI SpA (ex Assifutura Srl) Brescia Capital L. 200,000,000 in shares of L. 1,000 each
1
442
–
Banca Lombarda SpA
100.00
100.00
442
2. ANDROS Srl - Cuneo Capital L. 500,000,000 in quotas of L. 1,000 each.
1
1,468
198
Banca Regionale Europea SpA
51.00
51.00
699
3. GE.SE.RI SpA - Cuneo Capital L. 626,422,411 in shares of L. 1 each
1
93
-114
Banca Regionale Europea SpA
95.00
95.00
89
B. CARRIED AT EQUITY Group equity investments
Totale Group equity investments
89
1,230
NAME AND LOCATION
Type (A)
Stock Net holders’ income/ equity loss (B)
Investment held by
Held %
Votes at ordinary meetings %
Book value
9,696 -1.041
Banca Lombarda SpA
20.00
20.00
4,200
Other significant investments 1. BRESCIA ON LINE Srl - Brescia Capital Euro 1,250,000 in quotas of Euro 1 each 2. CARALT SpA - Alessandria Capital L. 5,000,000,000 in shares of L. 100,000 each
8
6,598
2.409
Banca Cassa di Risparmio di Tortona SpA
32.50
32.50
2,838
3. FIDUCIARIA BANKNORD SpA Milan (D) Capital L. 1,000,000,000 in shares of L. 500 each
8
281
-719
Banco di Brescia SpA B.di V.Camonica SpA
30.00 10.00
30.00 10.00
–
4. GRIFOGEST SpA - Florence Capital L. 5,000,000,000 In shares of L. 1,000,000 each
8
12,983
2.183
Banca Regionale Europea SpA
49.00
49.00
6,318
5. LOMBARDA VITA SpA Capital Euro 10,300,000 in shares of Euro 5 each
8
45,984
-50
Banca Lombarda SpA
49.90
49.90
2,986
6. PAVIA IMPRESA SVILUPPO SpA – Pavia Capital L. 2,000,000,000 In shares of L. 1,000 each
8
1,901
-99
Banca Regionale Europea SpA
40.00
40.00
780
7. AUGUSTA VITA SpA – Turin Capital L. 75,000,000,000 in shares of L. 1,000 each
8
161,125
4.880
Banca Lombarda SpA
20.00
20.00
64,255
8. PRISMA Srl – Milan Capital L. 1,000,000,000 in quotas of L. 1,000 each
8
1,031
5
Banca Lombarda SpA
20.00
20.00
200
Total
81,577
(A) Type of relationship: 1 = control as defined by article 2359(1.1) of the Italian Civil Code (majority of voting rights at ordinary stockholders’ meetings); 2 = control as defined by article 2359(1.2) of the Italian Civil Code (significant influence at ordinary stockholders’ meetings); 3 = control as defined by article 23(2.1) of the Tax Consolidation Law (agreements with other stockholders) 4 = other forms of control; 5 = single management as defined by article 26(1) of Decree 87/92; 6 = single management as defined by article 26(2) of Decree 87/92; 7 = joint control; 8 = affiliated company. (B) Amounts included with stockholders’ equity. (C) Stockholders’ equity and net income calculated using financial lease accounting methodology. (D) Figures as of 12.31.1999
90
3.2 Amounts due to and from Group companies
a) Assets 1. due from banks including: subordinated 2. due from financial institutions including: subordinated 3. due from other customers including: subordinated 4. bonds and other debt securities including: subordinated b) Liabilities 1. due to banks 2. due to financial institutions
31.12.2000
31.12.1999
Changes
5,534
588
4,946
–
–
–
–
–
–
–
588
-588
–
–
–
5,534
–
5,534
–
–
–
–
–
–
–
–
–
8,977
51,067
-42,090
–
–
–
–
–
–
8,977
51,067
-42,090
4. securities issued
–
–
–
5. subordinated liabilities
–
–
–
c) Guarantees and commitments
–
20,573
-20,573
1. guarantees given
–
20,573
-20,573
2. commitments
–
–
–
3. due to other customers
3.3 Due to and from affiliated companies (excluding Group companies)
a) Assets 1. due from banks including: subordinated 2. due from financial institutions including: subordinated 3. due from other customers including: subordinated 4. bonds and other debt securities including: subordinated b) Liabilities 1. due to banks 2. due to financial institutions 3. due to other customers 4. securities issued 5. subordinated liabilities c) Guarantees and commitments 1. guarantees given 2. commitments
91
31.12.2000
31.12.1999
Changes
243,141
334,992
-91,851
7,871
63,878
-56,007
–
–
–
209,655
257,102
-47,447
–
–
–
13,885
290
13,595
–
–
–
11,730
13,722
-1,992
–
–
–
916,273
358,933
557,340
6,044
4,744
1,300
31,469
108,627
-77,158
30,401
39,717
-9,316
848,359
205,845
642,514
–
–
–
10,270
13,235
-2,965
10,270
12,095
-1,825
–
1,140
-1,140
3.4 Equity investments (caption 70)
a) Investments in banks 1. quoted 2. unquoted b) Investments in financial institutions 1. quoted 2. unquoted c) Other 1. quoted 2. unquoted Total
31.12.2000
31.12.1999
Changes
679,293
645,831
33,462
623,044
567,451
55,593
56,249
78,380
-22,131
55,689
49,075
6,614
–
–
–
55,689
49,075
6,614
96,133
51,647
44,486
–
–
–
96,133
51,647
44,486
831,115
746,553
84,562
31.12.2000
31.12.1999
Changes
–
–
–
3.5 Investments in Group companies (caption 80)
a) Investments in banks 1. quoted
–
–
–
2. unquoted
–
–
–
–
–
–
b) Investments in financial institutions 1. quoted
–
–
–
2. unquoted
–
–
–
1.230
824
406
–
–
–
1,230
824
406
1,230
824
406
c) Other 1. quoted 2. unquoted Total
92
3.6
Changes during the year in equity investments
3.6.1 Investments in Group companies
A. Opening balance
824
B. Increases
515
B1. Purchases
–
B2. Writebacks
–
B3. Revaluations B4. Other
– 515
B5. Valuation as per article 19 Decree 87/92 C. Decreases
– 109
C1. Sales
–
C2. Adjustments C3. Other
109 –
D. Closing balance
1.230
E. Total revaluations
–
F. Total adjustments
507
G. Total adjustments for revaluations as per article 19 Decree 87/92
–
3.6.2 Other equity investments
A. Opening balance
746,553
B. Increases
118,204
B1. Purchases B2.Writebacks B3. Revaluations B4. Other
71,994 – 104 46,106
B5. Valuation as per article 19 Decree 87/92
–
C. Decreases
33,731
C1. Sales
21,930
C2. Adjustments C3. Other
251 11,550
D. Closing balance
831,026
E. Total revaluations
30,330
F. Total adjustments
8,993
93
Changes in these investments are detailed below: B) Associated companies
Opening
B.1
balance
Purchases
B.3
B.4
Writebacks Revaluations
B.2
other
C.2
C.3
Closing
%
Sales Adjustments
C.1
Other
balance
Held
changes
Banca della Valle d'Aosta SpA CARALT
15,769
4,231
2,744
20,000
94
2,838
Fiduciaria Banknord SpA Grifogest SpA Augusta Vita SpA Prisma Srl
32.50 30.00
5,782
536
6,318
24.55
32,382
31,873
64,255
20.00
200
20.00
780
20.04
192
Pavia Sviluppo Impresa
8 800
20
Lombarda Vita SpA
2,986
2,986
49.90
Brescia On line Srl
4,200
4,200
20.00
81,577
--
Total B
56,869
7,986
C) Other equity investments
Opening
B.1
balance
Purchases
94 36,648
B.3
B.4
Writebacks Revaluations
B.2
other
20,000
C.1
20
C.2
C.3
Closing
%
Sales Adjustments
Other
balance
Held
56 2,800 125 1,000 3,532 623,044
0.17 33.49 4.17 5.26 0.05 2.60
24,327
1.96
2,650
6.94
changes
Agemont SpA 56 Aia Tortona Ass. in partecipation 2,800 AQM 125 Archimede SpA Banca d'Italia 3,532 Banca Intesa SpA 567,451 Banca Mediocredito SpA
46,849
8,744
24,327
Banco Emiliano Romagnolo SpA CAB Lux Sicav
1,000
2,650 54
54
0.03
3,833
3,833
7.69
Centrale Bilanci Srl
168
168
1.67
Centre de services de Paris sa
296
296
49.92
Centro Factoring SpA
401
401
0.48
Centro fiduciario SpA
10
10
2.00
872
872
0.10
Compagnie Monegasque de Banque 16,788
16,788
4.50
Cedacrinord SpA
Centro Leasing SpA
Cooperativa Farmaceutica Srl Deutsche Morgan Grenfell
0.02 3,200
560
1,464
2,296
Ec Bic Piemonte (in liquidation) Efibanca SpA E-Mid
2.52 4.93
4,992
4,992
1.72
427
427
3.68
Ente Turismo Alba Bra Langhe
6.25
Equinox Investment Company Erogasud SpA
150
150
1.80
3,000
3,000
15.00
Eurocasse sim
0.14
Eurofidi
420
420
3.18
Euros SpA (ex Istinform SpA)
257
257
1.18
Eurovita Italcasse
137
137
0.15
Factor Nord SpA
94
2,183
2.183
C) Other equity investments
Opening
B.1
balance
Purchases
B.3
B.4
Writebacks Revaluations
B.2
other
C.2
C.3
Closing
%
Sales Adjustments
C.1
Other
balance
Held
changes
Fidipiemonte
150
150
0.86
Filse SpA
483
483
1.63
960
960
4.48
1,185
1,185
0.31
106
20.00
190
7.92
Finlombarda SpA Finpiemonte GAL Vallecamonica
106
GEC SpA
157
GEPO Gestione Portafoglio SpA
159
Help Rental Service Srl
550
Hopa SpA
29,696
Iccri SpA
3,691
Immobiliare Fiera
3,284
Immocri SpA
33
102 6,019 4
330
202
Informatica Servizi Organizzazione Srl 51
159
7.64
448
29.00
35,715
2.32
3,365
0.65
3,284
8.33
202
0.13
51
10.00
Innoinvest Piemonte Interbrennero SpA
11.34 84
84
Intesa Leasing SpA
432
432
0.45
Isfor 2000 SpA
700
700
10.00
106
11.31
315
315
2.86
2,832
2,832
2.31
506
0.03
89
0.09
Istifid SpA
16
Italfortune Int. Advisors S.A.
96
Ligur Capital SpA Linea Più SpA
7
Mediocredito Friuli SpA Mediocredito Lombardo SpA Merc.Mob. Nord-est SpA Monte Titoli SpA P.S.Tecnologico SpA Risparmio e Previdenza SpA
506 448
58
506
89 8,744
8,744
90
26
525
2,195
761
167
Seltering SpA
308
Servizi Interbancari SpA
931
Soc. Gestione per il Realizzo SpA
140
28
Unionfidi Liguria
Other minor investments
59
2.90
66
0.32
1,050
15.00
2,956
5.00
47
0.05
308
2.63
872
1.35
140
0.93
126
0.82
470
470
20.00
50
50
4.82
301
18
Total C
689,684
64,008
10
9,348
Total (B+C)
746,553
71,994
104
45,996
95
35
59
67
Tex Factor
113
5.71 64
66 525
S.W.I.F.T. Sc.
SSB SpA
1.00
10
Mediocredito Centrale SpA Mediocredito di Roma SpA
23
0.42
14
2
303
1,930
142
11,529
749,449
21,930
142
11,529
831,026
Section 4 – Tangible and intangible fixed assets
(captions 110 and 120)
4.1 Changes during the year in tangible fixed assets Property
Installation and furniture
Total
A. Opening balance
634,349
108,399
742,748
B. Increases
189,460
72,097
261,557
16,278
70,859
87,137
–
–
–
B1. Purchases B2. Writebacks B3. Revaluations
(1)
53,949
–
53,949
119,233
1,238
120,471
C. Decreases
44,633
50,358
94,991
C1. Sales
12,888
1,948
14,836
C2. Adjustments
29,586
48,386
77,972
29,586
48,384
77,970
–
2
2
B4. Other (2)
a) depreciation b) permanent writedowns
2,159
24
2,183
D. Closing balance
C3. Other
779,176
130,138
909,314
E. Total revaluations
544,382
4,691
549,073
F. Total adjustments
336,864
543,453
880,317
336,864
543,453
880,317
–
–
–
a) depreciation b) permanent writedowns
(1) Revaluations (Law 342/2000) concerned the following companies in the Group: - Banca Lombarda for banking premises (L. 5,594 million) and non-banking premises (for L. 1,800 million ); - Banco di Brescia for banking premises (for L. 9,524 million) and non-banking premises (for L. 12,911 million), - S.B.I.M. for a complex of industrial buildings (for L. 24,120 million). These are assets that are not strategic to the Group and are to be disposed of shortly. Revaluations were carried out based on independent expert appraisals and the estimates have been reduced for prudence sake to about 70% of their appraised value. The revalued amount has been added to the book value of each asset without adjusting the accumulated depreciation. It is believed that this method, as required by the regulations in question, is correct given that the intention is to dispose of these properties. (2) Of this amount, L. 110,000 million is the share of goodwill arising on the first-time consolidation of Banca Regionale Europea. This amount has been allocated to property and is that resulting from the independent expert appraisal.
96
4.2 Changes during the year in intangible fixed assets (caption 120) Software
Leasehold improvements
Goodwill
Other
Total
A. Opening balance
78,001
20,319
106,408
12,940
217,668
B. Increases
51,795
10,166
–
967
62,928 62,766
B1. Purchases
51,795
10,026
–
945
B2. Writebacks
–
–
–
–
–
B3. Revaluations
–
–
–
–
–
B4. Other C. Decreases
–
140
–
22
162
52,211
11,082
18,381
4,918
86,592
C1. Sales
–
363
–
–
363
C2. Adjustments
52,211
10,080
18,381
4,758
85,430
a) amortization
52,211
10,080
18,381
4,758
85,430
–
–
–
–
–
b) permanent writedowns C3. Other
–
639
–
160
799
77,585
19,403
88,027
8,989
194,004
E. Total revaluations
–
–
–
–
–
F. Total adjustments
44,129
4,076
92,312
8,184
148,701
a) amortization
44,129
4,076
92,312
8,184
148,701
–
–
–
–
–
D. Closing balance
b) permanent writedowns
Section 5 – Other assets
(captions 150 and 160)
5.1 Other assets (caption 150) 31.12.2000
31.12.1999
Changes
Other amounts due from the tax authorities (1)
956,134
757,142
198,992
Other items
347,784
296,289
51,495
Items in transit
146,705
83,586
63,119
Amounts to be collected
160,325
139,599
20,726
dealing transactions
596,212
5,712
590,500
Third-party checks
169,559
167,919
1,640
transactions (2)
290,767
757,571
-466,804
Balances to be allocated (3)
663,220
217,805
445,415
3,330,706
2,425,623
905,083
Value-date differences on exchange and
Amounts receivable in relation to securities
Total
(1) including deferred tax assets as detailed in the related table in section 7 "Provisions" (2 )the 1999 figure was principally due to transactions in mutual funds completed early in 2000. (3) a large part of these are bank transfers waiting to be cleared.
The above assets have not been written down as they are fully collectible.
97
5.2 Accrued income and prepaid expenses (caption 160) 31.12.2000
31.12.1999
Changes
92,727
99,698
-6,971
7,792
10,852
-3,060
84,609
53,232
31,377
–
16
-16
349,038
160,276
188,762
4,365
10,175
-5,810
538,531
334,249
204,282
174
962
-788
Accrued income: - interest on securities - interest on bank deposits and loans - Interest on loans to customers - income from repurchase agreements with banks - interest on derivative contracts - other Total accrued income
Prepaid expenses:: - insurance premiums - rentals and condominium expenses - substitute tax on release of goodwill
796
1,357
-561
22,764
27,545
-4,781
–
631
-631
- foreign forward contracts - bond issue discount - other Total prepaid expenses Total accrued income and prepaid expenses
9,571
7,556
2,015
49,071
37,515
11,556
82,376
75,566
6,810
620,907
409,815
211,092
31.12.1999
Changes
5.4 Distribution of subordinated assets 31.12.2000 a) due from banks
–
–
–
b) loans to customers
–
–
–
68,348
60,974
7,374
320
2,113
-1,793
31.12.2000
31.12.1999
Changes
69,817
113,718
-43,901
–
–
–
c) bonds and other debt securities including: own securities
Section 6 - Payables
(captions 10, 20, 30 and 40)
6.1 Due to banks (caption 10)
a) repurchase agreements b)securities loaned
98
Due to banks is analyzed by technical form as follows: 31.12.2000
31.12.1999
Changes
correspondent current accounts
1,225,061
1,147,301
77,760
deposits
1,554,400
3,038,506
-1,484,106
273,963
86,038
187,925
69,817
113,718
-43,901
642,596
500,701
141,895
3,765,837
4,886,264
-1,120,427
31.12.2000
31.12.1999
Changes
4,114,667
4,144,419
-29,752
–
–
–
mortgage loans (using EIB funds) repurchase agreements other technical forms Total
6.2 Due to customers (caption 20)
a) repurchase agreements b) securities loaned
Due to customers (caption 20) and securities issued (caption 30) are analyzed by technical form as follows:
Due to customers (caption 20)
31.12.2000
31.12.1999
Changes
current accounts
18,103,616
16,151,549
1,952,067
deposit accounts
2,327,114
2,873,993
-546,879
repurchase agreements
4,114,667
4,144,419
-29,752
assignors in factoring
411,295
349,430
61,865
other technical forms
11,429
10,910
519
Total
24,968,121
23,530,301
1,437,820
Securities issued (caption 30)
31.12.2000
31.12.1999
Changes
10,488,186
8,719,180
1,769,006
1,413,061
1,542,781
-129,720
56,236
–
56,236
368,245
243,245
125,000
5,968
–
5,968
12,331,696
10,505,206
1,826,490
Total due to customers and securities issued 37,299,817
34,035,507
3,264,3108
31.12.2000
31.12.1999
Changes
5,791
14,855
-9,064
Bonds Certificates of deposit Reverse convertible loans Bankers' drafts Commercial paper Total
6.3 Public funds administered (caption 40)
Funds used to finance revolving agricultural loans
99
Section 7 - Provisions
(captions 70, 80 and 90)
7.3 Provisions for liabilities and charges: other (caption 80c) This caption, and movements during the year, are as follows:
31.12.1999 Provision for guarantees given
Increases Provision Other
5,427
2,515
Decreases Uses Other
–
–
31.12.2000
–
7,942
Provision for legal disputes and other charges
70,930
13,642
–
-14,340
–
70,232
Provision for future charges
8,713
1,950
–
-9,645
–
1,018
Provision for charitable donations
6,547
6,500
500
-5,620
–
Provision for reorganization
2,000
–
–
–
14,600
–
7,927 –2,000
Provision for restructuring charges on manager
–
-14,600
––
–
2,857
Prevision for agents’ termination indemnities
2,110
775
–
-28
Other
–
–
–
–
Total
110,327
25,382
500
-44,233
–– –
91,976
Use of the provision for legal disputes and other charges refers to: - Banca Lombarda for L. 7,011 million and is principally for the payment of INVIM (L. 6,000 million) provided last year following the spin-off of property to Banco di Brescia. - Banca Regionale Europea for L. 2,936 million, and at the same time the reversal to income of provisions that are no longer required. Provisions for the year are determined by reviewing the adequacy of the various Group companies’ reserves needed to cover any losses, as discussed in the section on accounting policies. This also includes the provision to cover legal and other expenses relating to the event concerning Fiduciaria Banknord. The provision for future charges has been used in Banca Lombarda and in Banca della Valle Camonica following settlement of the outstanding amounts with a leasing company to which finance lease contracts had been transferred in the past. The provision for restructuring charges on merger pertaining to Banca Lombarda and Banco di Brescia was set-up in 1998 in connection with expected reorganization charges, and relates to the merger between CAB and Banca San Paolo. The provision has been completely utilized since after the setting up of Lombarda Sistemi Servizi (to which all of the software in use as of January 1, 2000 was transferred), the software still to be amortized which no longer had a useful life for the Banks, was completely written off.
100
7.4 Changes in provision for termination indemnities (caption 70) Balance as of 12.31.1999
Payments made during the year
Provision for the year
Balance as of 12.31.2000
-16,976
34,408
363,222
7.4 Changes in provision for taxation (caption 80b) Balance as of 12.31.1999
395,916
- Payments made during the year:
-194,561 -191,296
direct taxes indirect taxes
+ Provisions for : indirect taxes (included in caption 80 b of the statement of income) direct taxes (included in caption 240 of the statement of income): + Transfer from extraordinary reserve
Balance as of 12.31.2000
-3,265
349,590 504 349,086 3,517
554,462
"Deferred tax assets" refer to provisions for liabilities and charges and expenses which are not deductible in the year in which they are recorded for accounting purposes. They are shown under asset caption 130. "Deferred tax liabilities" refer to gains arising on the disposal of equity investments and buildings. They are shown under the provision for taxation. Staff pension funds The pension fund represents the amount of the commitments taken on by "BRE Banca" and "Banca CR Tortona" towards retired personnel or those still working. The size is determined according to actuarial criteria in proportion to the residual period of service and the pensions promised to those who are entitled to them. The amount totals L. 66,830 million and refers to: - L. 21,671 million to the fund of former Banca del Monte di Lombardia (B.R.E. Banca) - L. 36,210 million to the fund of former Cassa di Risparmio di Cuneo (B.R.E. Banca) - L. 8,949 million to the fund of Banca C.R. Tortona.
101
Deferred tax assets as of 31.12.2000 (1) Opening balance (2) Increases
121,751 22,144
2.1 Deferred tax assets arising in the year
22,021
2.2 Other
123
(3) Decreases
44,839
3.1 Deferred tax assets reversing in the year 3.2 Other
42,096 2,743
(4) Closing balance
99,056
Deferred tax liabilities as of 31.12.2000 (1) Opening balance (2) Increases
27,208 197,328
2.1 Deferred tax assets arising in the year
197,328
2.2 Other
—
(3) Decreases
184,913
3.1 Deferred tax assets reversing in the year 3.2 Other
184,671 242
(4) Closing balance
102
39,623
Section 8
- Capital stock, equity reserves, reserve for general banking risks, subordinated liabilities, (liability captions: 100, 110, 120, 130, 140, 150, 160, 170, 180, 200 – asset captions 90 and 100) 31.12.2000
31.12.99
Changes
Reserve for general banking risks (caption 100)
157,564
130,134
27,430
Capital stock (caption 150)
543,005
251,059
291,946
Additional paid-in capital (caption 160)
615,262
403,412
211,850
Reserves (caption 170)
927,781
834,007
93,774
A) Legal reserve
256,828
231,419
25,409
B) Other reserves:
670,953
602,588
68,365
- Extraordinary reserve
410,491
372,498
37,993
- Other reserves
260,462
230,090
30,372
6,062
196,155
-190,093
Negative goodwill arising on consolidation (caption 120) 49,178
49,178
–
28
–
including:
Revaluation reserves (caption 180):
Negative goodwill arising on application of the equity method (caption 130))
28
Retained earnings (accumulated losses) (caption 190)
3
1
2
320,087
176,440
143,647
Total stockholders' equity
2,618,970
2,040,414
578,556
Subordinated liabilities (caption 110)
2,013,637
1,113,451
900,186
901,496
866,217
35,279
Net income for the year (caption 200)
Minority interests (caption 140)
These captions are analyzed below: Reserve for general banking risks (caption 100) This has increased by L. 26,909 billion following the provision for the year made by the Parent Bank and by some subsidiary companies and L. 521 million for the higher share pertaining to the Group following a rise in its percentage holding in certain companies. Capital stock (caption 150) This is made up of 280,438,803 ordinary shares of par value of _ 1 issued by the Parent Bank (*) Additional paid-in capital (caption 160) This pertains to the Parent Bank (*) Legal reserve (caption 170 a) This pertains to the Parent Bank (*)
103
Other reserves (caption 170 b): - extraordinary reserve pertaining to the Parent Bank (*) - other reserves: details of changes are shown in the attachments. Revaluation reserves (caption 180) These pertain to the Parent Bank (*) (*) Details and movements in these captions are shown in the Explanatory notes of the Parent Bank (section 8).
Subordinated liabilities These are made up of: Preference shares (Tier I): 1. Banca Lombarda Preferred Capital Company LLC 2000/2010 of € 155 million, equating to L. 300,121 million, at a fixed-rate (swapped with floatingrate 6-mths Euribor + 2.42%), with repayment at due-date. Hybrid capitalization instruments (Upper Tier II): 2. Banca Lombarda 1999-2009 subordinated bond loan of € 100, equating to L. 193,317 million at floating rate (3-mths Euribor + 1.05%), with repayment at due-date. 3. Banca Lombarda 2000/2010 subordinated bond loan of € 350 million, equating to L. 675,065 million at fixed-rate (swapped with floating rate 6-mths Euribor + 1.065%), with repayment at due-date. Subordinate loans that can be included in capital for supervisory purposes (Lower Tier II): 4. Banca Lombarda 7.50% 1996/2001 subordinated bond loan of L. 46,761 million: unchanged. 5. Banca Lombarda subordinated bond loan of L. 300 billion former Banca San Paolo di Brescia 1998-2006 at floating rate (3-mths Euribor + 0.45%), with repayment in five equal yearly installments starting in August 28, 2001. 6. Banca Lombarda 1999/2009 subordinated bond loan of € 175 million, equating to L. 338,373 million at floating rate 3-mths (Euribor + 0.65% for the first five years, + 1.25% thereafter), with repayment at due-date. Early redemption clause after 5 years from issue date. 7. Banco di Brescia subordinated bond loan of L. 30 billion former CAB 19942001 at floating rate (3-mths Euribor + 0.75%), with repayment in five equal yearly installments starting on October 1, 1997. It has decreased by L. 30 billion;
104
8. Banco di Brescia subordinated bond loan of L. 40 billion former CAB 19952002 at floating rate (3-mths Euribor + 0.50%), with repayment in five equal yearly installments starting on August 1, 1998. It has decreased by L. 20 billion; 9. Banco di Brescia subordinated bond loan of L. 10 billion former Banca del Cimino 1995-2002 at floating rate (3-mths Euribor + 0.75%), with repayment in five equal yearly installments starting on January 1, 1998. It has decreased by L. 5 billion. 10. Banco di Brescia subordinated bond loan of L. 80 billion former CAB 19972004 at floating rate 3-mths Euribor + 0.25%), with repayment in five equal yearly installments starting on October 1, 2000. It has decreased by L. 20 billion. With the exception of loan No. 4, which is eligible up to L. 9.9 billion, the other subordinated loans comply with Bank of Italy requirements for inclusion in the calculation of capital for supervisory purposes, namely: - early repayment clause, with authorization of the supervisory authority.; - subordination clause operative in the event of Banca Lombarda SpA being put into liquidation. The subordinated loans included in the "Upper Tier II" category are subject to additional more restrictive clauses linked to any losses, suspension of interest payments and repayment only after all other creditors not similarly subordinated have been paid. Negative goodwill arising on consolidation (caption 120) This relates to: 31.12.2000
31.12.1999
Changes
16
16
–
3,187
3,187
–
20
20
–
43,656
43,656
–
3,648
3,648
–
30
30
–
Banca di Genova e S.Giorgio SpA C.B.I. Factor SpA S.B.S. Leasing SpA Banca Valle Camonica SpA Capitalgest SpA Solofid (former Sifru Fiduciaria SpA)
Goodwill paid: - Sifru SIM SpA - S.B.I.M. SpA (former Magazzini Gen.Borghetto SpA) Total
105
-21
-21
–
-1,358
-1,358
–
49,178
49,178
–
Negative goodwill arising on the application of the equity method (caption 130) This relates to: 31.12.2000
31.12.1999
Changes
Lombarda Sistemi e Servizi (former Assifutura Srl)
13
13
–
Prisma Srl
15
15
–
Total
28
28
–
31.12.2000
31.12.1999
Changes
Minority interests (caption 140) These relates to:
Banca Cassa Risparmio Tortona SpA
58,376
55,054
3,322
Banca di Genova e S. Giorgio SpA
17,476
16,446
1,030
Banca Lombarda International S.A.
55
49
6
766,880
723,640
43,240
Banca Valle Camonica SpA
25,250
22,012
3,238
C.B.I. Factor SpA
17,749
23,604
-5,855
118
143
-25
Banca Regionale Europea SpA
Immobiliare C.R.T. SpA S.B.S. Leasing SpA S.I.L.F. Srl Solimm SpA Total
1,599
1,440
159
13,973
23,792
-9,819
20
37
-17
901,496
866,217
35,279
31.12.2000
31.12.1999
Changes
1,428
1,607
-179
186,513
196,875
-10,362
1,957
–
1,957
1,308,580
–
1,308,580
1,874
2,393
-519
11,258
10,825
433
693
1,000
-307
1,512,303
212,700
1,299,603
Asset captions Goodwill arising on consolidation (caption 90) This relates to:
Banca di Genova e S. Giorgio SpA Banca Cassa di Risparmio di Tortona SpA Banca di Valle Camonica SpA Banca Regionale Europea SpA Capitalgest SpA (former Unigest SpA) C.B.I. Factor SpA Solofid SpA (fomer Sifru Fiduciaria SpA) Total
106
Goodwill arising on the application of the equity method (caption 100) This relates to: 31.12.2000
31.12.1999
Changes
Augusta Vita SpA (1)
—
16,075
-16,075
Banca della Valle d'Aosta SpA (2)
—
343
-343
Total
—
16,418
-16,418
(1) the amount has been completely amortized and charged to the statement of income (caption 90) as specified in the accounting policies. (2) written off following the disposal of the investment
CAPITAL ADEQUACY REQUIREMENTS AT DECEMBER 31, 2000 Categories
Amount
A. CONSOLIDATED CAPITAL FOR SUPERVISORY PURPOSES A.1 Tier 1 capital
1,854,199
A.2 Tier 2 capital
1,672,332
A.3 Items to be deducted A.4 Capital for supervisory purposes
-431,131 3,095,400
B. CAPITAL ADEQUACY REQUIREMENTS B.1 Lending risks B.2 Market risks
2,807,621 67,773
including: - dealing portfolio risks - exchange risks
66,544 1,229
B.3 Other requirements
–
B.4 Total requirements
2,875,394
C. RISK ASSETS AND CAPITAL ADEQUACY RATIOS (*) C.1 Weighted risk assets
35,942,423
C.2 Tier 1 capital / Weighted risk assets
5.16%
C.3 Tier 1 and 2 capital / Weighted risk assets
8.61%
(*) Total requirements multiplied by the reciprocal of the minimum compulsory coefficient for lending risks (as for Bank of Italy notice dated November 4, 1999).
Capital adequacy ratio for lending risks
107
8.82%
Section 9 – Other liabilities
(captions 50 and 60)
9.1 Other liabilities (caption 50) 31.12.2000
31.12.1999
108,470
101,489
6,981
61,680
359,064
-297,384
100,563
139,462
-38,899
17,223
4,710
12,513
220
225
-5
Withholding taxes payable Advances from customers for purchase of securities Due to employees Value-date differences on exchange transactions Down-payments on property sales Differences due on IRS contracts
Changes
13
15,486
-15,473
Amounts awaiting customer instructions
952,383
674,055
278,328
Balances to be allocated
300,255
91,779
208,476
Other payables (1)
983,212
847,530
135,682
Due to suppliers
219,619
129,524
90,095
–
64,592
-64,592
714,583
275,586
438,997
–
797,708
-797,708
179,096
142,546
36,550
3,637,317
3,643,756
-6,439
Value-date differences on dealing transactions Items in transit with branches Pro-forma balance sheet adjustments Consolidation adjustments Total
(1) Other side of the entry for transactions in mutual funds, indicated in caption 5.1.
9.2 Accrued expenses and deferred income (caption 60) 31.12.2000
31.12.1999
Changes
- interest on securities issued
264,193
140,388
123,805
- interest on derivative contracts
252,808
121,369
131,439 4,525
Accrued expense
- interest on repurchase agreements for customers
28,840
24,315
- interest on repurchase agreements for banks
9,032
7,091
1,941
- interest on amounts due to banks
4,038
16,657
-12,619
- interest on amounts due to customers
1,655
7,220
-5,565
- other
1,406
1,270
136
561,972
318,310
243,662
- interest on discounted notes and loans
29,463
22,831
6,632
- other
12,523
9,133
3,390
41,986
31,964
10,022
603,958
350,274
253,684
Total accrued expenses Deferred income:
Total deferred income Total accrued expenses and deferred income
108
Section 10 – Guarantees and commitments
(captions 10 and 20)
10.1 Guarantees given (caption 10) 31.12.2000
31.12.1999
Changes
- Commercial guarantees
1,431,254
1,187,598
243,656
- Financial guarantees
1,030,929
962,671
68,258
–
–
–
2,462,183
2,150,269
311,914
31.12.2000
31.12.1999
Changes
- commitments to grant finance (certain to be called on)
1,046,622
848,667
197,955
- commitments to grant finance (not certain to be called on)
3,955,242
1,016,564
2,938,678
5,001,864
1,865,231
3,136,633
- Assets lodged in guarantee Total
10.2 Commitments (caption 20)
Total
10.3 Assets lodged to guarantee the Group's liabilities 31.12.2000
31.12.1999
Changes
851,905
1,273,336
-421,431
a) Nominal value of Group's securities lodged to guarantee - advances from the Bank of Italy - other advances
16,083
51,220
-35,137
- bankers' drafts
61,234
192,209
-130,975
3,618,436
4,289,544
-671,108
245,986
51,511
194,475
4,793,644
5,857,820
-1,064,176
31.12.2000
31.12.1999
Changes
a) central banks
–
–
–
b) other banks
–
1,728
-1,728
- repurchase agreements b) Amounts due from customers assigned with recourse to guarantee loans received from Mediocredito Centrale (using EIB funds) Totale
10.4 Margins available on lines of credit
109
10.5 Forward transactions Type of transaction 1. Purchase/sales 1.1 Securities - purchases - sales 1.2 Currency - currency against currency
Hedging
Dealing Other transactions
5,913,287
450,012
–
–
444,134
–
–
280,192
–
–
163,942
–
5,913,287
5,878
–
126,294
159
–
- purchases against lire
3,026,534
3,301
–
- sales against lire
2,760,459
2,418
–
2. Deposits and loans
–
6,762
207,209
- to be made
–
4,574
195,222
- to be received
–
2,188
11,987
11,384,827
7,823,125
3,187,807
340,191
1,794,601
2,521,322
340,191
1,011,961
2,521,322
3. Derivative contracts 3.1 With exchange of capital a) securities - purchases - sales b) currency
91,244
649,478
2,430,078
248,947
362,483
91,244
–
–
–
- currency against currency
–
–
–
- purchases against lire
–
–
–
- sales against lire
-
–
–
c) other instruments
–
782,640
–
- purchases
–
627,545
–
- sales
–
155,095
–
11,044,636
6,028,524
666,485
–
–
–
3.2 Without exchange of capital a) currency - currency against currency
–
–
–
- purchases against lire
–
–
–
- sales against lire
–
–
–
b) other instruments
11,044,636
6,028,524
666,485
- purchases
8,123,698
4,074,305
–
- sales
2,920,938
1,954,219
666,485
17,298,114
8,279,899
3,395,016
Total
110
Details of the principal derivative contracts contained in the previous table are the following: Type of transaction 3.1 With exchange of capital
Hedging
Dealing Other transactions
340,191
1,794,601
2,521,322
340,191
1,011,997
2,521,322
- purchases
91,244
825,134
2,430,078
- options
75,719
21,971
2,430,078
a) securities
- futures
15,525
803,163
–
- sales
248,947
186,863
91,244
- options
248,947
31,768
60,685
- futures
–
155,095
30,559
c) other instruments - purchases for futures - sales for futures
–
782,604
–
–
627,545
–
–
155,059
–
11,044,636
6,028,524
666,485
11,044,636
6,028,524
666,485
- purchases
8,123,698
4,074,305
–
- assets - basis swaps
1,998,375
375,836
–
- interest rate swaps
4,802,571
2,159,292
–
- options on indices
666,486
–
–
3.2 Without exchange of capital b) other instruments
- other instruments on interest rates
656,266
1,539,177
–
- sales
2,920,938
1,954,219
666,485
- assets - basis swaps
–
1,983,854
375,836
- interest rate swaps
857,292
1,550,586
–
- options on indices
–
–
666,485
79,792
27,797
–
- other instruments on interest rates
Forward transactions include both assets to be received, already accounted for in "commitments", as well as all other off-balance sheet transactions traded on own account, which have been booked as follows: a) purchases/sales of securities and currency as well as derivative contracts that entail or may entail an exchange of capital: at the settlement price; b) deposits and loans: at the amount to be received or paid; c) derivative contracts without exchange of capital: at the reference nominal value. Hedging transactions not involving an exchange of capital refer principally to interest rate swaps that hedge securities against interest rate fluctuations. The net loss of L. 37,905 million emerging from the valuation of these off-balance sheet transactions at year-end prices using the same methods applied to the hedged balances, is not reflected in the statement of income in accordance with current regulations. This unrecognized loss is correlated with the gains shown on investment and dealing securities, as discussed in sections 2.1 and 2.3. All these transactions are with leading international banks and financial institutions.
111
Section 11 – Concentration and distribution of assets and liabilities 11.1 Significant exposures 31.12.2000
31.12.1999
a) amount
1,511,218
1,162,873
b) number
3
3
As required by Bank of Italy regulations, the weighted positions (from cash lending, endorsement credits and commitments) in relation to clients, or groups of "related" customers, are included in this caption.
11.2 Distribution of loans to customers by category of borrower 31.12.2000 a) governments
31.12.1999
Changes
111,592
135,441
-23,849
b) other public entities
1,082,516
483,198
599,318
c) non-financial entities
19,606,803
18,258,150
1,348,653
d) financial institutions
4,022,526
3,434,727
587,799
e) family businesses
2,656,237
3,014,991
-358,754
f) other operators
6,418,207
4,923,199
1,495,008
33,897,881
30,249,706
3,648,175
Total
11.3 Distribution of loans to resident non-financial and family businesses 31.12.2000
31.12.1999
Changes
a) commerce, salvage and repairs
4,294,188
4,068,096
226,092
b) other services for sale
4,196,338
4,229,471
-33,133
c) construction and public works
1,967,367
1,792,397
174,970
d) metal products other than machines and means of transport
1,622,654
1,512,400
110,254
e) textiles, leather, footwear and clothing
1,116,703
1,202,365
-85,662
f) other sectors
8,344,262
8,081,213
263,049
21,541,512
20,885,942
655,570
Total
112
11.4 Distribution of guarantees given by category of counterparty 31.12.2000 a) governments
31.12.1999
Changes
–
–
–
b) other public entities
16,073
15,994
79
c) banks
21,323
7,576
13,747
1,741,997
1,744,057
-2,060
179,917
99,608
80,309
d) non-financial entities e) financial institutions f) family businesses g) other operators Total
85,669
77,687
7,982
417,204
205,347
211,857
2,462,183
2,150,269
311,914
11.5 Geographical distribution of assets and liabilities
1 Assets 1.1 Due from banks 1.2 Loans to customers 1.3 Securities 2 Liabilities 2.1 Due to banks
Italiy
Other EU countries
Other countries
Total
41,608,344
1,954,254
733,154
44,295,752
1,391,612
449,100
509,935
2,350,647
33,144,724
716,116
37,041
33,897,881
7,072,008
789,038
186,178
8,047,224
40,732,307
1,706,839
645,936
43,085,082
2,330,351
1,023,849
411,637
3,765,837
2.2 Due to customers
24,070,894
670,736
226,491
24,968,121
2.3 Securities issued
12,311,634
12,254
7,808
12,331,696
2.4 Other 3. Guarantees and commitments
113
2,019,428
–
–
2,019,428
6,685,057
767,316
11,674
7,464,047
11.6 Distribution of assets and liabilities by maturity
1. Assets
Fixed maturity Over 3 Over 1 year month Fixed Floating up to 12 m. rate rate
Repayable on demond
Up to 3 months
Beyond 5 years Fixed Floating rate rate
13,717,046
12,404,978
6,417,081
8,409,978
8,743,540
4,157,529
4,934,304
36,141
17,663
69,530
172,077
863,842
593,430
357,898
Without fixed maturity
TOTAL
1,405,568 60,190,024
1.1 Securities eligible for refinancing by the Treasury 1.2 Due from banks
–
2,110,581
1,142,468
916,569
72,557
1
9,682
–
–
209,370
2,350,647
11,791,144
7,430,986
2,906,861
1,303,972
4,955,677
374,038
3,954,005
1,181,198
33,897,881
420,537
245,431
400,347
979,113
2,443,968
632,130
613,979
15,000
5,750,505
1.5 Off-balance sheet transactions 326,756
3,794,329
2,967,786
5,954,815
470,371
2,557,931
8,422
–
16,080,410
21,385,196
14,420,797
9,559,374
5,852,454
4,261,574
2,745,555
523,420
1.3 Loans to customers 1.4 Bonds and other debt securities
2. Liabilities 2.1 Due to banks
411,331 59,159,701
1,000,683
2,147,661
261,887
66,385
224,053
5,771
58,945
452
3,765,837
19,484,414
4,597,360
475,444
24
–
–
–
410,879
24,968,121
2.3 Securities issued
439,721
1,249,473
2,067,339
4,181,919
2,992,368
1,212,240
188,636
–
12,331,696
bonds
71,090
410,320
1,502,961
4,137,949
2,964,990
1,212,240
188,636
–
10,488,186
31,060
775,910
536,679
43,970
25,442
–
–
–
1,413,061
337,571
63,243
27,699
–
1,936
–
–
–
430,449
2.2 Due to customers
- certificates of deposit - other securities 2,4 Subordinated liabilities
–
12,500
194,260
–
589,991
955,824
261,062
–
2,013,637
2.5 Off-balance sheet transactions 460,378
6,413,803
6,560,444
1,604,126
455,162
571,720
14,777
–
16,080,410
11.7 Assets and liabilities in foreign currencies
a) Assets 1. due from banks 2. loans to customers 3. securities 4. equity investments 5. other assets b) Liabilities
31.12.2000
31.12.1999
Changes
1,481,193
1,810,301
-329,108
314,983
312,099
2,884
1,105,666
1,039,616
66,050
51,413
445,698
-394,285
108
100
8
9,023
12,788
-3,765
1,843,233
2,030,790
-187,557
1. due to banks
975,092
1,399,888
-424,796
2. due to customers
836,680
623,567
213,113
3. securities issued
31,461
7,335
24,126
–
–
–
4. other liabilities
114
Section 12 – Administration and dealing on behalf of third parties 12.1 Dealing in securities 31.12.2000
31.12.1999
Changes
15,005,084
7,025,205
7,979,879
29,021
202,651
-173,630
15,034,105
7,227,856
7,806,249
14,574,556
5,912,040
8,662,516
16,783
220,427
-203,644
14,591,339
6,132,467
8,458,872
31.12.2000
31.12.1999
Changes
18,981,475
17,590,797
1,390,678
a) purchases 1. settled 2. not settled Total b) sales 1. settled 2. not settled Total
12.2 Asset management
Assets under management
The amounts are stated net of current account balances under management. 12.3 Custody and administration of securities 31.12.2000
31.12.1999
Changes
A) Third-party securities on deposit (excluding those in asset management) B) Third-party securities deposited with third parties C) Own securities deposited with third parties
61,760,695
60,336,076
1,424,619
46,914,231
49,633,431
-2,719,200
9,286,244
8,320,379
965,865
12.4 Collection of receivables on behalf of third parties: debit and credit adjustments
a) debit adjustments
31.12.2000
31.12.1999
Changes
9,697,037
8,579,897
1,117,140
1. current accounts
52,052
62,640
-10,588
2. central portfolio
9,526,613
7,992,501
1,534,112
1,235
8,052
-6,817
117,137
516,704
-399,567
b) credit adjustments
9,114,933
8,793,058
321,875
1. current accounts
74,282
244,755
-170,473
8,936,503
8,455,300
481,203
104,148
93,003
11,145
3. cash 4. other accounts
2. presenters of notes and documents 3. other accounts
115
Section 1 – Interest (captions 10 and 20)
PART C 1.1 Interest income and similar revenues (caption 10)
INFORMATION ON THE CONSOLIDATED STATEMENT OF INCOME
a) on amounts due from banks
31.12.2000
31.12.1999
Changes
178,888
46,968
131,920
16,825
11,337
5,488
1,932,098
1,482,798
449,300
–
78
-78
508,124
542,495
-34,371
9,222
7,885
1,337
47,963
22,550
25,413
2,676,295
2,102,696
573,599
including: deposits with central banks b) on loans to customers including: on loans using public funds c) on debt securities d) other interest income e) positive differentials on hedging transactions Total
1.2 Interest expense and similar charges (caption 20) 31.12.2000
31.12.1999
Changes
a) on amounts due to banks
309,353
146,623
162,730
b) on amounts due to customers
490,786
319,712
171,074
c) on securities issued
499,053
371,117
127,936
41,647
52,660
-11,013
4
37
-33
115,854
92,113
23,74
76,019
54,669
21,35
1,491,069
984,271
506,798
including: on certificates of deposit d) on public funds administered e) on subordinated liabilities f) negative differentials on hedging transactions Total
1.3 Interest income and similar revenues (caption 10)
a) on foreign currency assets
31.12.2000
31.12.1999
Charges
203,719
31,365
172,354
1.4 Interest expense and similar charges (caption 20)
a) on foreign currency liabilities
116
31.12.2000
31.12.1999
Charges
187,457
23,112
164,345
Section 2
- Commission (captions 40 and 50)
2.1 Commission income (caption 40) 31.12.2000 a) Guarantees given
31.12.1999
Changes
12,314
11,488
826
135,459
110,865
24,594
c) Management, dealing and consultancy services: 626,738
458,141
168,597
52,850
3,609
b) Collection and payment services
1. dealing in securities
56,459
2. dealing in currency
11,588
13,633
-2,045
3. asset management
95,950
89,108
6,842
4. custody and administration of securities
32,966
25,277
7,689
5. placement of securities
67,283
61,837
5,446
–
–
–
25,047
18,703
6,344
6. consultancy 7. "door-to-door" sales of securities and other financial products and services 8. acceptance of instructions 9. management of mutual funds
45,067
34,844
10,223
292,378
161,889
130,489
d) Tax collection service
–
–
e) Other services
218,989
191,055
27,934
Total
993,500
771,549
221,951
2.2 Commission expense (caption 50) 31.12.2000
31.12.1999
Changes
a) Collection and payment services
30,353
27,824
2,529
b) Management and dealing services:
54,130
35,650
18,480
4,033
1,289
2,744
2. dealing in currency
13
492
-479
3 asset management
25
–
25
5,351
1,532
3,819
939
401
538
26,381
20,289
6,092
17,388
11,647
5,741
24,328
20,071
4,257
108,811
83,545
25,266
1. dealing in securities
4, custody and administration of securities 5. placement of securities 6. "door-to-door" sales of securities and other financial products and services 7. management of mutual funds c) Other services Totale
117
Section 3 – Profits (losses) on financial transactions (caption 60) 3.1 Profits (losses) on financial transactions (caption 60) Security transactions
Currency transactions
other transactions
Total
A.1 Revaluations
55,093
–
–
55,093
A.2 Writedowns
-74,155
-240
–
-74,395
B. Other gains/losses Total
81,040
22,965
5,434
109,439
61,978
22,725
5,434
90,137
1. Government securities
27,558
–
–
–
2. Other debt securities
66,745
–
–
–
3. Equities
-3,135
–
–
–
4. Security derivatives
-29,190
–
–
–
Total
61,978
Section 4 – Administrative costs (caption 80) Administrative costs include payroll, structure costs and indirect taxes. They total L. 1,328,711 million, having increased by 1.6 % compared with 1999. 4.1 Average number of employees by category 31.12.2000
31.12.1999
Changes
(1) a) managers
113
–
b) officials
1,936
–
c) other employees
5,196
–
Total
7,245
7,198
+47
(1) Analytical data for 1999 is not given as it is not homogeneous. This is because the National Labor Contract which came into force on July 1, 2000 introduced new categories of staff.
Payroll is made up as follows: 31.12.2000
31.12.1999
Changes
wages and salaries
540,429
524,444
15,985
social security charges (1)
170,439
165,349
5,090
ttermination indemnities
53,724
59,315
-5,591
other
25,203
27,243
-2,040
Total
789,795
776,351
13,444
1) Including the contribution paid to internal pension funds. These are funded out of payroll (on a percentage basis) and provide benefits up to the amount of the funds available.
118
Other administrative costs Other administrative costs are made up as follows: 31.12.2000
31.12.1999
Changes
Telephone, postage, data transmission and alarms
51,727
55,192
-3,465
Repair and maintenance of premises
44,603
48,727
-4,124
9,944
18,143
-8,199
Rental of machines and software Rental of premises
36,886
35,380
1,506
Security services
14,914
12,353
2,561
Transport
11,117
15,899
-4,782
Professional and consultancy fees
25,910
22,115
3,795
Office supplies
17,146
16,990
156
Power, heat and water
15,599
15,479
120
SAdvertising
23,742
19,334
4,408
Legal fees for debt collection
10,157
10,059
98
External data processing
58,545
61,430
-2,885
Insurance premiums
13,857
14,277
-420
9,602
9,410
192
13,270
12,713
557
3,300
3,346
-46
Credit information Directors and Statutory Auditors' fees Membership fees Expenses for treasury contracts with public entities
16,281
16,999
-718
Other expenses
25,388
13,734
11,654
- use of provision for restructuring charges on merger and reorganization
–
-11,884
11,884
401,988
389,696
12,292
- VAT (1)
45,937
48,321
-2,384
- Stamp duty, substitute and other taxes
90,991
93,093
-2,102
538,916
531,110
7,806
Total administrative costs ndirect taxes and duties:
Total other administrative costs
(1) The Banca Regionale Europea and Cassa di Risparmio di Tortona follow the system required by article 36-bis of Decree 633/72. Amounts are therefore not comparable.
119
Section 5 – Adjustments, writebacks and provisions (captions 90, 100, 120, 130, 140 and 150)
Adjustments to intangible and tangible fixed assets (caption 90) 31.12.2000
31.12.1999
Changes
77,970
73,982
3,988
- depreciation of tangible fixed assets - amortization of intangible fixed assets (*)
70,830
65,924
4,906
- goodwill arising on consolidation
80,962
80,948
14
2,851
13,224
223,705
22,132
- goodwill arising on application of the equity method (**)16,075 Total
245,837
(*) net of the amount released from the provision for restructuring charges on mergers (L. 14,600 million), as indicated in Section 7 of Part B of these notes. (**) as of December 31, 2000, this refers to the write-off of the residual goodwill relating to Augusta Vita in connection with its disposal in 2001.
Provisions for liabilities and charges (caption 100) This caption shows provisions for L. 22,867 million, which have been included in liability caption 80c "Provisions for liabilities and charges", as mentioned earlier in the note on provisions.
5.1 Adjustments to loans and provisions for guarantees and commitments (caption 120) 31.12.2000
31.12.1999
Changes
229,474
223,386
6,088
466
–
466
a) adjustments to loans including: - general adjustments for country risks - other general adjustments b) provision for guarantees and commitments
2,245
25,434
-23,189
2,821
399
2,422
73
62
11
2,605
–
2,605
232,295
223,785
8,510
including: - general adjustments for country risks - other general adjustments Totale
120
Writebacks of loans and provisions for guarantees and commitments (caption 130) Writebacks are made up of: 31.12.2000
31.12.1999
Changes
Recovery of loans written off in prior periods
35,834
31,298
4,536
Writebacks of writedowns made in prior periods
22,357
24,791
-2,434
6,355
1,118
5,237
505
802
-297
65,051
58,009
7,042
Other writebacks Writebacks on guarantees and commitments Total
Section 6 – Other statement of income captions (captions 70, 110, 190 and 220)
6.1 Other operating income (caption 70) 31.12.2000 Property rentals Stamp duties and substitute tax recovered
31.12.1999
Changes
7,545
3,975
3,570
74,825
75,033
-208
59,864
45,605
14,259
–
3,892
-3,892
Expense recoveries and other income on deposits and current accounts Income relating to restructured bond loans, Income from back-dated bank transfers (1)
7,101
–
7,101
47,672
46,710
962
197,007
175,215
21,792
31.12.2000
31.12.1999
Changes
Finance leasing charges
1,647
1,747
-100
Prior-year commission and interest
2,744
2,747
-3
Expenses from back-dated bank transfers (1)
9,141
1,676
7,465
Other income Total
6.2 Other operating expenses (caption 110)
Charges relating to restructured bond loans Other (2) Total
–
3,784
-3,784
7,770
66
7,704
21,302
10,020
11,282
(1) In the 1999 financial statements, certain banks in the Group allocated these amounts to interest income (L. 2,895 million) and interest expense (L. 5,019 million). (2) This caption includes: - L. 2,081 million relating to S.B.I.M. for planning and urbanization charges; - L. 4,445 million relating to SILF for professional fees and brokerage costs relating to its activities
121
6.3 Extraordinary income (caption 190) 31.12.2000
31.12.1999
Changes
Out-of-period income: - overprovision of taxed costs for previous years
8,884
6,378
2,506
- provisions for taxation not required
6,314
12,806
-6,492
- other
20,816
22,289
-1,473
- transfer from Reserve for possible loan losses
25,941
–
25,941
- property and other fixed assets
5,355
22,435
-17,080
- equity investments
4,541
12,283
-7,742
- investment securities and related derivative contracts 12,401
263
12,138
Gains on disposal of:
Deferred tax assets
–
33,392
-33,392
73
–
73
84,325
109,846
-25,521
Consolidation adjustments Total
The "transfer from the reserve for possible loan losses" relates to an equivalent change in the Reserve for general banking risks (caption 230) as current regulations (Law 243/2000) require that the entries freeing up the reserve pass through the statement of income.
6.4 Extraordinary charges (caption 200) 31.12.2000
31.12.1999
Changes
Out-of-period expense: - extraordinary payroll charges - other
1,973
2,446
-473
11,901
7,978
3,923
664
79
585
60
10
50
Losses on disposal of: - property and other fixed assets - equity investments - long-term investments
-
20
-20
Consolidation adjustments
4,931
4,561
370
19,529
15,094
4,435
Total
Income taxes (caption 240) Income taxes for the year (1) Current taxes (*)
31.12.2000 336,671
(2) Change in deferred tax assets
22,695
(3) Change in deferred tax liabilities
12,415
(4) Income taxes for the year
371,781
(*) Including those deriving from the application of accounting principles used for consolidation purposes.
122
Section 7 – Other information on the statement of income 7.1 Geographical distribution of profits The geographical distribution of revenues is such that no detailed breakdown is required.
123
PARTE D
Section 1 – Directors and Statutory Auditors 1.1 Remuneration
OTHER INFORMATION
31.12.2000 a) Directors
6,042
b) Statutory Auditors
430
These figures include amounts paid for duties carried out at the Parent Bank and its subsidiaries.
1.2 Loans granted and guarantees given 31.12.2000 a) Directors b) Statutory Auditors
279,229
(di cui indirettamente * 275,970 )
3,084
(di cui indirettamente * 3,053 )
(*) Loans and guarantees granted indirectly and in favor of companies in which the Directors and Statutory Auditors have an interest according to the Banking Law.
124
Attachments to the consolidated financial statements - Statement of changes in consolidated financial position as of December 31, 2000 - Statement of changes in consolidated stockholders' equity as of December 31, 2000 - Consolidated pro-forma balance sheet and statement of income as of December 31, 1999 - Consolidated balance sheet and statement of income: comparison with the "historic" Banca Lombarda Group - Consolidated balance sheet and statement of income in euros as of December 31, 2000.
125
Statement of changes in consolidated financial position (millions of Lire) SOURCES OF FUNDS FUNDS GENERATED BY OPERATIONS Net income for the year Change in reserve for general banking risks (net of use of risk reserves) Adjustments to intangible and tangible fixed assets Adjustments to loans Writebacks of loans Provision for termination indemnities Provision for taxation Provisions for liabilities and charges Adjustments to financial fixed assets Increases in liabilities Increase in capital stock and additional paid Increase in pension funds Due to customers and securities issued Subordinated liabilities Other liabilities - accrued expenses and deferred income Effects on net income deriving from pro-forma 1999 financial statements Revaluation of property Other changes in reserves Changes in minority interests Decrease in assets Cash Portfolio securities
31.12.2000
320,087 968 245,837 232,295 -65,051 47,481 353,107 22,867 483 1,158,074 307,640 7,334 900,186 247,245 46,700 44,287 -3,043 35,279
58,107 2,224,739 7,132,784
TOTAL SOURCES OF FUNDS
APPLICATION OF FUNDS Application of funds in operation Dividends distributed Charitable donations Use of provision for termination indemnities Use of provision for taxation Use of other provisions for liabilities and charges Increase in assets Loans to customers Due from banks Other assets – accrued income and prepaid expenses Equity investments Goodwill arising on consolidation and application of the equity method Intangible and tangible fixed assets Decrease in liabilities Due to banks Public funds administered
8,290,858
31.12.2000
138,083 500 30,050 194,561 40,718 403,912 3,815,419 68,575 1,116,175 85,362 1,380,222 291,702 1,120,427 9,064 7,886,946
TOTAL
8,290,858
The statement of changes in financial position has been based on the 1999 pro-forma financial statements, The data for the previous year is not shown since it is not homogeneous.
127
Statement of changes in consolidated stockholders' equity (millions of Lire)
Balance as of 12.31.1999
- capital increase
Capital stock
Legal reserve
Extraord. reserve
Reserve for general banking risk
Reserve art. 7 3 of Law 218/90
Reserve Decree 124/93
251,059
231,419
372,498
78,770
51,959
189
291,946
Allocation of Parent Bank's net income - dividends to stockholders - legal reserve
25,409
- reserve Law 461/98 - other reserves
37,993
Revaluation Law 342/2000 Provision Law 124/93
30
Transfer to reserve for general banking risks
78,794
Change in the scope of consolidation
Net income for the year Balance as 12.31.1999
128
543,005
256,828
410,491
157,564
51,959
219
Reserve art. 7.2 of Law 218/90
Additional paid-in capital
Credit balance of revaluations
Merger surplus
Reserve Law 461/98
Other reserves
Net income for the year
90,101
403,412
196,155
716
47,569
85,858
223,140
211,850
-196,155
Neg. goodwill Total arising on stockholders’ consolidation equity and application of the equity method 49,206
307,641
-138,083
51,841 -30,186 6,061
-138,083
-25,409
–
-51,841
–
-7,807
–
36,456
42,517
-30
–
-78,794
–
4,757
4,757
320,087 90,101
615,262
129
6,061
2,082,051
716
99,410
18,061
320,087
320,087 49,206
2,618,970
CONSOLIDATED PRO-FORMA BALANCE SHEET AS AT DECEMBER 31,1999 (millions of Lire) ASSETS
10 Cash and deposits with central' banks and post offices 20 Treasury bills and other bills eligible for refinancing with central banksi 30 Due from banks: a) repayable on demand b) other deposits 40 Loans to customers including: - loans using public funds 50 Bonds and other debt securities: a) public entities b) banks including: - own securities c) financial institutions d) other issuers 60 Shares, quotas and other forms of capital 70 Equity investments a) carried at equity b) other 80 Equity investments in Group companies a) carried at equity 90 Goodwill arising on consolidation 100 Goodwill arising on application of the equity method 110 Intangible fixed assets including: - start-up costs - goodwill 120 Tangible fixed assets 150 Other assets 160 Accrued income and prepaid expenses: a) accrued income b) prepaid expenses including: bond issue discount TOTAL ASSETS
Banca Lombarda (historic)
B.R.E. Banca
176,751
109,426
286,177
1,542,097 1,605,549 324,619 1,280,930 22,563,332
1,138,519 676,523 43,038 633,485 7,686,374
2,680,616 2,282,072 367,657 1,914,415 30,249,706
12,198 5,315,570
57 2,035,697
12,255 7,351,267
2,965,849 1,745,766
2,003,064 25,913
4,968,913 1,771,679
25,478 28,461 575,494 181,944 702,630 51,087 651,543 372 372 212,700
4,252
29,730 28,461 582,214 240,080 746,553 56,869 689,684 824 824 212,700
6,720 58,136 43,923 5,782 38,141 452 452 –
Consolidation B.R.E. Banca
Adjustments New. Acc. Policies
Total pro-forma
16,418
–
16,418
209,149
8,519
217,668
7,871 106,408 523,452 1,899,149 273,788 207,402 66,386
– – 219,296 526,474 136,027 126,847 9,180
7,871 106,408 742,748 2,425,623 409,815 334,249 75,566
7,556 35,222,901 12,639,366
130
Effect of Purchase of Equity inv.
7,556 47,862,267
(millions of Lire) Banca Lombarda (historic)
B.R.E. Banca
10 Due to banks 4,358,056 a) repayable on demand 1,295,440 b) time deposits or with notice period 3,062,616 20 Due to customers: 16,612,023 12,032,391 a) repayable on demand b) time deposits or with notice period 4,579,632 30 Securities issued: 7,857,741 a) bonds 6,747,903 b) certificates of deposit 937,838 c) other 172,000 40 Public funds administered 14,788 2,209,931 50 Other liabilities 60 Accrued expenses and deferred income: 262,219 a) accrued expenses 233,467 b) deferred income 28,752 70 Provision for termination indemnities, 229,579 80 Provisions for liabilities and charges 364,277 a) pensions and other commitments b) taxation 281,543 c) other 82,734 90 Reserves for possible loan losses 0 100 Reserve for general banking risks 79,927 110 Subordinated liabilities 1,113,451 120 Negative goodwill arising on consolidation 49,178 130 Negative goodwill arising on application of the equity method 28 140 Minority interests 118,785 150 Capital stock 251,059 160 Additional paid-in capital 403,412 170 Reserves: 879,151 a) legal reserve 231,419 c) statutory reserves – d) other reserves 647,732 180 Revaluation reserves 196,155 190 Retained earnings 1 200 Net income (loss) for the year 223,140
528,208 20,000 508,208 6,918,278 5,870,000 1,048,278 2,647,465 1,971,277 604,943 71,245 67 636,117 88,055 84,843 3,212 116,211 197,721 59,496 106,937 31,288 19,514 100,194 – 4,674
LIABILITIES
TOTAL LIABILITIES
131
Effect of Purchase of Equity inv.
22,240 (1)
35,222,901 12,639,366
769,799 (2)
7,436 7,436 (3) -17,540 (4) -49,987 (5) -4,674 (5)
205 – 850,000 – 438,173 37,211 349,286 51,676 – 94,484
Consolidation B.R.E. Banca
Adjustments New. Acc. Policies
4,886,264 1,315,440 3,570,824 23,530,301 17,902,391 5,627,910 10,505,206 8,719,180 1,542,781 243,245 14,855 5,669 (7) 3,643,756 350,274 318,310 31,964 345,790 -3,695 565,739 59,496 395,916 -3,695 (8) 110,327 -1,974 (4) – 130,134 1,113,451 49,178
-205 (5) 747,432 (6) -850,000 (5) -483,317 -37,211 (5) -349,286 (5) -96,820 (5)
-22,240
-118,944
Total pro-forma
–
28 866,217 251,059 403,412 834,007 231,419 – 602,588 196,155 1 –176,440
47,862,267
GUARANTEES AND COMMITMENTS (millions of lire)
10 Guarantees given: including: - acceptances - other guarantees 20 Commitments
132
Banca Lombarda (historic)
B.R.E. Banca
Effect of Purchase of Equity inv.
Consolidation B.R.E. Banca
Adjustments New. Acc. Policies
Total pro-forma
1,698,961
451,308
2,150,269
22,486 1,676,475
12,873 438,435
35,359 2,114,910
1,518,226
347,005
1,865,231
PROFORMA CONSOLIDATED STATEMENT OF INCOME AS AT DECEMBER 31, 1999 (millions of Lire)
10 Interest income and similar revenues including from: - loans to customers - debt securities 20 Interest expense and similar charges including on: - due to customers - securities issued 30 Dividends and other revenues a) from shares, quotas and other forms of capital b) from equity investments c) from equity investments in Group companies 40 Commission income 50 Commission expense 60 Profits (losses) on financial transactions 70 Other operating income 80 Administrative costs a) payroll including: - wages and salaries - social security charges - termination indemnities - pensions and similar commitments b) other administrative costs 90 Adjustments to intangible and tangible fixed assets 100 Provisions for liabilities and charges 110 Other operating expenses 120 Adjustments to loans and provisions for guarantees and commitments 130 Writebacks of loans and provisions for guarantees and commitments 140 Provisions to reserves for possible loans losses 150 Adjustments to financial fixed assets 170 Profit (loss) from investments carried at equity 180 Income (loss) from operating activities 190 Extraordinary income 200 Extraordinary charges 210 Extraordinary income, net 230 Change in reserve for general banking risks 240 Income taxes 250 Income (loss) attributable to minority interests 260 Net income (loss) for the year
133
Banca Lombarda (historic)
B.R.E. Banca
1,485,586
617,110
2,102,696
1,075,893 382,213 -731,947
406,905 160,282 -194,926
1,482,798 542,495 -984,271
-229,682 -278,121 36,429 7,983 28,446 570,973 -74,737 99,229 121,171 -867,628 -509,669
-90,030 -92,996 14,164 408 12,842 914 190,747 -8,808 -23,250 71,621 -424,082 -253,616
-348,929 -117,127 -29,344 -508 -357,959 -131,637 -26,882 -7,077
-175,515 -48,222 -9,981 -19,482 -170,466 -25,213 -12,599 -2,943
-144,150
-76,344
51,497
6,512 -5,266 -130 696 127,289 52,987 -2,938 50,049
-1,652 1,865 381,040 59,396 -12,156 47,240 -3,208 -191,690 -10,242 223,140
-82,854
94,484
Effect of Purchase of Equity inv.
Consolidation B.R.E. Banca
Adjustments New. Acc. Policies
Total pro-forma
-57,398 (9)
7,748 (14) 239 6,979 530 9,829 (15)
-17,577 (16) -15,751( 17) -13,066 -13,066
-71,482 (11)
-3,291 (12)
-2,685 4,627 (18) 11,124 (19)
-319,712 -371,117 58,341 8,630 48,267 1,444 771,549 -83,545 75,979 175,215 -1,307,461 -776,351 -537,510 -165,349 -39,325 -19,990 -531,110 -223,705 -28,357 -10,020 -223,785 58,009
5,266 (12)
-57,398
-69,507 (12) -2,537 -2,537
35,158 (10)
-22,240
238 (12) -47,138 (13) -118,944
-1,782 2,561 381,424 109,846 -15,094 94,752 -3,208 -239,148 -57,380 176,440
NOTES LIABILITIES ((1) Contra-entry on booking economic values. (2)
Booking the share of stockholders' equity, amortization of the goodwill arising on consolidation and the higher value attributed to property as well as other consolidation entries.
(3)
Booking the tax burden after writing off the provision for default interest.
(4)
Elimination of the item, attributing the part that concerns the taxed reserve to caption 80c and the part concerning the tax-exempt reserve (provision for default interest) to captions 80b and 170d, and the share of minority interests to caption 140.
(5)
Elimination of items in stockholders' equity as contra-entry to "other liabilities" for the share owned and attribution to caption 140 of the share of minority interests (including the part deriving from the Reserve for possible loan losses – see note 4).
(6)
Recording of minority interests’ share of net income, stockholders' equity and the write-off of the provision for default interest (see note 4).
(7)
Contra-entry to the adjustments to Group accounting principles.
(8)
Reclassifications for transfer of provision for payroll costs to caption 50 and from the taxed reserve to caption 90.
STATEMENT OF INCOME (9)
Recording of costs relating to the issue of bonds (ordinary and subordinated) for the same period of time as the accounts for 2000.
(10) The tax effect referred to in note 9 and benefits deriving from the application of the Ciampi Law. (11) Recording of the amortization of the goodwill arising on consolidation and depreciation of the higher value attributed to property. (12) Reversal of statement of income items following the elimination of the provision for default interest. (13) Attribution of income attributable to minority interests. (14) Transfer of tax credits on dividends from caption 70. (15) Transfer of certain items from caption 70. (16) Transfer to caption 30 (L. 7,748 million) and to caption 40 (L. 9,829 million). (17) Transfer from caption 100 (L 11,124 million) and from caption 100 (L. 4,627 million). (18) Transfer to caption 80b of charges for treasury contracts, for consistency with the current accounting treatment (L. 4,627 million). (19) Transfer to caption 100 of costs relating to personnel.
134
HISTORIC CONSOLIDATED BALANCE SHEET
(millions of Lire) ASSETS
10 20 30
40
50
60 70
80 90 100 110
120 150 160
Cash and deposits with central banks and post offices Treasury bills and other bills eligible for refinancing with central banks Due from banks: a) repayable on demand b) other deposits Loans to customers including: - loans using public funds Bonds and other debt securities: a) public entities b) banks including: - own securities c) financial institutions d) other issuers Shares, quotas and other forms of capital Equity investments a) carried at equity b) other Equity investments in Group companies a) carried at equity Goodwill arising on consolidation Goodwill arising on application of the equity method Intangible fixed assets including: - start-up costs - goodwill Tangible fixed assets Other assets Accrued income and prepaid expenses: a) accrued income b) prepaid expenses including: bond issue discount
TOTAL ASSETS
31.12.2000
31.12.1999 (1)
228,070
176,751
2,110,581 2,350,647 1,287,545 1,063,102 33,897,881
1,542,097 1,605,549 324,619 1,280,930 22,563,332
3,855 5,750,505 3,784,856 1,598,348
12,198 5,315,570 2,965,849 1,745,766
63,572 50,231 317,070 186,138 831,026 81,577 749,449 1,230 1,230 1,512,303 – 194,004
25,478 28,461 575,494 181,944 702,630 51,087 651,543 372 372 212,700 16,418 209,149
206 88,027 909,314 3,330,706 620,907 538,531 82,376
7,871 106,408 523,452 1,899,149 273,788 207,402 66,386
3,062
7,556
51,923,312
35,222,901
(1) These amounts correspond with those shown in the financial statements of Banca Lombarda SpA approved by the stockholders in their meeting of April 28, 2000.
135
(millions of lire) LIABILITIES
31.12.2000
10 Due to banks: a) repayable on demand b) time deposits or with notice period 20 Due to customers: a) repayable on demand b) time deposits or with notice period 30 Securities issued: a) bonds b) certificates of deposit c) other 40 Public funds administered
31.12.1999 (1)
3,765,837
4,358,056
1,150,020
1,295,440
2,615,817
3,062,616
24,968,121
16,612,023
19,466,822
12,032,391
5,501,299
4,579,632
12,331,696
7,857,741
10,488,186
6,747,903
1,413,061
937,838
430,449
172,000
5,791
14,788
3,637,317
2,209,931
603,958
262,219
a) accrued expenses
561,972
233,467
b) deferred income
41,986
28,752
70 Provision for termination indemnities
363,221
229,579
80 Provisions for liabilities and charges
713,268
364,277
a) pensions and other commitments
66,830
–
554,462
281,543
91,976
82,734
50 Other liabilities 60 Accrued expenses and deferred income:
b) taxation c) other 100 Reserve for general banking risks 110 Subordinated liabilities 120 Negative goodwill arising on consolidation 130 Negative goodwill arising on application of the equity method
157,564
79,927
2,013,637
1,113,451
49,178
49,178
28
28
140 Minority interests
901,496
118,785
150 Capital stock
543,005
251,059
160 Additional paid-in capital
615,262
403,412
170 Reserves:
927,781
879,151
256,828
231,419
–
–
670,953
647,732
6,062
196,155
a) legal reserve c) statutory reserves d) other reserves 180 Revaluation reserves 190 Retained earnings (Accumulated losses) 200 Net income (loss) for the year
TOTAL LIABILITIES
3
1
320,087
223,140
51,923,312
35,222,901
1) These amounts correspond with those shown in the financial statements of Banca Lombarda SpA approved by the stockholders in their meeting of April 28, 2000.
136
GUARANTEES AND COMMITMENTS (millions of Lire)
10 Guarantees given:
31.12.2000
31.12.1999 (1)
2,462,183
1,698,961
15,996
22,486
2,446,187
1,676,475
5,001,864
1,518,226
including: - acceptances - other guarantees 20 Commitments
(1) These amounts correspond with those shown in the financial statements of Banca Lombarda SpA approved by the stockholders in their meeting of April 28, 2000.
137
HISTORIC CONSOLIDATED STATEMENT OF INCOME
(millions of Lire)
10 Interest income and similar revenues including from: - loans to customers - debt securities 20 Interest expense and similar charges including on: - due to customers - securities issued 30 Dividends and other revenues from a) shares, quotas and other forms of capital b) equity investments c) equity investments in Group companies 40 Commission income 50 Commission expense 60 Profits (losses) on financial transactions 70 Other operating income 80 Administrative costs a) Payroll including: - wages and salaries - social security charges - termination indemnities - pensions and other commitments b) Other administrative costs 90 Adjustments to intangible and tangible fixed assets 100 Provisions for liabilities and charges 110 Other operating expenses 120 Adjustments to loans and provisions for guarantees and commitments 130 Writebacks of loans and provisions for guarantees and commitments 140 Provisions to reserves for possible loan losses 150 Adjustments to financial fixed assets 170 Profit (loss) from investments carried at equity 180 Income (loss) from operating activities 190 Extraordinary income 200 Extraordinary charges 210 Extraordinary income, net 230 Change in reserve for general banking risks 240 Income taxes 250 Income (loss) attributable to minority interests 260 Net income (loss) for the year
31.12.2000
31.12.1999 (1)
2,676,295
1,485,586
1,932,098 508,125 -1,491,069
1,075,893 382,213 -731,947
-490,786 -499,053 121,422 79,744 41,678 – 993,500 -108,811 90,137 197,007 -1,328,711 -789,795
-229,682 -278,121 36,429 7,983 28,446 – 570,973 -74,737 99,229 121,171 -867,628 -509,669
-540,429 -170,439 -40,316 -13,408 -538,916 -245,837 -22,867 -21,302 -232,295 65,051 – -483 33,814 725,851 84,325 -19,529 64,796 -26,909 -371,781 -71,870
-348,929 -117,127 -29,344 -508 -357,959 -131,637 -26,882 -7,077 -144,150 51,497 – -1,652 1,865 381,040 59,396 -12,156 47,240 -3,208 -191,690 -10,242
320,087
223,140
(1) These amounts correspond with those shown in the financial statements of Banca Lombarda SpA approved by the stockholders in their meeting of April 28, 2000.
138
CONSOLIDATED BALANCE SHEET IN EUROS
(thousands of euros) ASSETS
31.12.2000
10 Cash and deposits with central banks and post offices
31.12.1999 pro-forma
Change Amount
%
117,788
147,798
-30,010
-20,3
with central banks
1,090,024
1,384,423
-294,399
-21,3
Due from banks:
1,214,008
1,178,592
35,416
3,0
664,961
189,879
475,082
250,2
20 Treasury bills and other bills eligible for refinancing 30
a) repayable on demand b) other deposits 40 Loans to customers
549,046
988,713
-439,667
-44,5
17,506,795
15,622,669
1,884,126
12,1
including: - loans using public funds
1,991
6,329
-4,338
-68,5
2,969,888
3,796,613
-826,725
-21,8
1,954,715
2,566,229
-611,514
-23,8
825,478
914,996
-89,518
-9,8
- own securities
32,832
15,354
17,478
113,8
c) financial institutions
25,942
14,699
11,243
76,5
163,753
300,688
-136,935
-45,5
50 Bonds and other debt securities: a) public entities b) banks including:
d) other issuers 60
Shares, quotas and other forms of capital
70 Equity investments a) carried at equity b) Other 80 Equity investments in Group companies a) carried at equity 90 Goodwill arising on consolidation 100 Goodwill arising on application of the equity method 110 Intangible fixed assets
96,132
123,991
-27,859
-22,5
429,189
385,562
43,627
11,3
42,131
29,370
12,761
43,4
387,058
356,192
30,866
8,7
635
426
209
49,1
635
426
209
49,1
781,039
109,850
671,189
611,0
–
8,479
-8,479
-100,0
100,195
112,416
-12,221
-10,9
106
4,065
-3,959
-97,4
including: - start-up costs - goodwill
45,462
54,955
-9,493
-17,3
120 Tangible fixed assets
469,621
383,597
86,024
22,4
1,720,166
1,252,730
467,436
37,3
320,672
211,652
109,020
51,5
a) accrued income
278,128
172,625
105,503
61,1
b) prepaid expenses
42,544
39,027
3,517
9,0
1,581
3,902
-2,321
-59,5
26,816,152
24,718,798
2,097,354
8,5
150 Other assets 160 Accrued income and prepaid expenses:
including: - bond issue discount
TOTAL ASSETS
139
(thousands of euros) LIABILITIES
31.12.2000
10 Due to banks
31.12.1999 pro-forma
Changes Amount
%
1.944.892
2.523.545
-578.653
593.936
679.368
-85.432
-12.6
1.350.957
1.844.177
-493.220
-26.7
12.894.958
12.152.386
742.572
6.1
10.053.775
9.245.813
807.962
8.7
2.841.184
2.906.573
-65.389
-2.2
6.368.789
5.425.486
943.303
17.4
5.416.696
4.503.081
913.615
20.3
b) certificates of deposit
729.785
796.780
-66.995
-8.4
c) other
222.308
125.626
96.682
77.0
a) repayable on demand b) time deposits or with notice period 20 Due to customers: a) repayable on demand b) time deposits or with notice period 30 Securities issued: a) bonds
40 Public funds administered 50 Other liabilities 60 Accrued expenses and deferred income:
-22.9
2.991
7.672
-4.681
-61.0
1.878.518
1.881.842
-3.324
-0.2 72.4
311.918
180.901
131.017
a) accrued expenses
290.234
164.393
125.841
76.5
b) deferred income
21.684
16.508
5.176
31.4
70 Provision for termination indemnities
187.588
178.586
9.002
5.0
80 Provisions for liabilities and charges
368.372
292.180
76.192
26.1 12.3
a) pensions and other commitments b) taxation c) other 100 Reserve for general banking risks
34.515
30.727
3.788
286.356
204.474
81.882
40.0
47.502
56.979
-9.477
-16.6
81.375
67.209
14.166
21.1
1.039.957
575.049
464.908
80.8
25.398
25.398
–
–
14
14
–
–
140 Minority interests
465.584
447.364
18.220
4.1
150 Capital stock
280.439
129.661
150.778
116.3
160 Additional paid-in capital
317.756
208.345
109.411
52.5
170 Reserves:
479.159
430.729
48.430
11.2
132.641
119.518
13.123
11.0
–
–
110 Subordinated liabilities 120 Negative goodwill arising on consolidation 130 Negative goodwill arising on application of equity method
a) legal reserve c) statutory reserve d) other reserves 180 Revaluation reserves 190 Retained earnings (Accumulated losses) 200 Net income (loss) for the year
TOTAL LIABILITIES
140
346.518
311.211
35.307
11.3
3.131
101.306
-98.175
-96.9
2
1
1
100.0
165.311
91.124
74.187
81.4
26.816.152
24.718.798
2.097.354
8.5
GUARANTEES AND COMMITMENTS
(thousands of euros) 31.12.2000
10
Guarantees given:
1,271,611
31.12.1999 pro-forma 1,110,521
Change Amount
%
161,090
14.5
including: - acceptances - other guarantees 20 Commitments
141
8,261
18,261
-10,000
-54.8
1,263,350
1,092,260
171,090
15.7
2,583,247
963,311
1,619,936
168.2
CONSOLIDATED STATEMENT OF INCOME IN EUROS
(thousands of euros) 31.12.2000
10
Interest income and similar revenues including from: - loans to customers - debt securities 20 Interest expense and similar charges including on: - due to customers - securities issued 30 Dividends and other revenues a) from shares, quotas and other forms of capital b) from equity investments c) from equity investments in Group companies 40 Commission income 50 Commission expense 60 Profits (losses) on financial transactions 70 Other operating income 80 Administrative costs a) Payroll including: - wages and salaries - social security charges - termination indemnities - pensions and other commitments b) Other administrative costs 90 Adjustments to intangible and tangible fixed assets 100 Provisions for liabilities and charges 110 Other operating expenses 120 Adjustments to loans and provisions for guarantees and commitments 130 Writebacks of loans and provisions for guarantees and commitments 150 Adjustments to financial fixed assets 170 Profit (loss) from investments carried at equity 180 Income (loss) from operating activities 190 Extraordinary income 200 Extraordinary charges 210 Extraordinary income, net 230 Change in reserve for general banking risks 240 Income taxes 250 Income (loss) attributable to minority interests 260 Net income (loss) for the year
142
31.12.1999 pro-forma
AmountChange
%
1,382,191
1,085,952
296,239
27.3
997,845 262,425 -770,073
765,801 280,175 -508,334
232,044 -17,750 261,739
30.3 -6.3 51.5
-253,470 -257,739 62,709 41,184 21,525 – 513,100 -56,196 46,552 101,746 -686,222 -407,895
-165,117 -191,666 30,131 4,457 24,928 746 398,472 -43,147 39,240 90,490 -675,247 -400,952
88,353 66,073 32,578 36,727 -3,403 -746 114,628 13,049 7,312 11,256 10,975 6,943
53.5 34.5 108.1 – -13.7 -100.0 28.8 30.2 18.6 12.4 1.6 1.7
-279,108 -88,024 -20,821 -6,925 -278,327 -126,964 -11,810 -11,002
-277,601 -85,396 -20,310 -10,324 -274,295 -115,534 -14,645 -5,175
1,507 2,628 511 -3,399 4,032 11,430 -2,835 5,827
0.5 3.1 2.5 -32.9 1.5 9.9 -19.4 112.6
-119,970
-115,575
4,395
3.8
33,596 -249 17,463 374,871 43,550 -10,086 33,464 -13,897 -192,009 -37,118
29,959 -920 1,323 196,990 56,731 -7,795 48,936 -1,657 -123,510 -29,634
3,637 -671 16,140 177,881 -13,181 2,291 -15,472 12,240 68,499 7,484
12.1 -72.9 – 90.3 -23.2 29.4 -31.6 – 55.5 25.3
165,311
91,125
74,186
81.4
