CONSOLIDATED FINANCIAL STATEMENTS FOR FY2000 Net profit = ITL 183 bn (+45%) ROE = 11.2% (up from 7.7%) Dividend = ITL 100 per share (+43%) Total administrative expenses = -4.3% Net loans and advances = + 18.10% Total collections = over ITL 47,500 bn Indirect collections = ITL 26,933 bn (+14.5%)
The Cassa di Firenze banking group expanded further in 2000 with acquisition of controlling stakes in Cassa di Risparmio di Civitavecchia SpA and Cassa di Risparmio di Orvieto SpA, followed by acquisition at the beginning of 2001 of control of Cassa di Risparmio di Mirandola SpA. Today, the group has a sales network of 405 branches in 5 regions of Italy. The physical branch network is accompanied by the virtual bank, which is performing strongly, whilst the group is now also setting up a financial promoter and store network. This reflects the group’s multi-channel strategy for sale of the products of a series of companies specialised in consumer credit (Findomestic SpA), asset management (Epta Group and the newly founded asset management company CR Firenze Gestion Internationale SA), and leasing and factoring (Centro Leasing SpA and Centro Factoring SpA).
Today, the Board of Directors of the Cassa di Firenze banking group, presided over by Mr Aureliano Benedetti, approved the operating and consolidated financial statements for 2000. Results rewarded the Group’s efforts and the Board has thus decided to propose to shareholders a dividend of ITL 100 per share, up by 43% over 1999 – when the company was not yet listed. This confirms the commitment made by the bank in July 2000 during the Public Offer for Sale to apply a payout policy designed to reward shareholders. The proposed payment date is May 24th 2001 (with coupon detachment on May 21st 2001). Contacts : Investor Relations - Marco Falleri ++39 055 2612284 Fax++39 055 2612298
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The Group posted consolidated net profit of ITL 183 bn, with a 45% increase over pro-forma 1999 figures including the Civitavecchia and Orvieto savings banks for the purposes of like-for-like comparison. Based on the same aggregate, the favourable trend in net interest income, commissions, and profits from consolidated shareholdings, together with the decrease in administrative expenses, led to operating profit of ITL 487 bn up by 20%. Net interest income, net of dividends, totalled ITL 752 billion with an 8% YoY increase. The result was heavily affected, in 1999, of the extraordinary dividend of ITL 79 billion paid by ICCRI (the central bank for savings banks). Net of this item, aggregate growth would be 5.10% on a like-for-like basis. Total income, boosted by progress in service income – which in turn was driven by asset-management, brokerage and advisory services, as well as by the growth of profits from stakes in product companies – increased by ITL 143 bn, up 10.7%. On a like-for-like basis the increase in total income would have been ITL 46 bn, up 3.2%. The major commitment to cost control, despite the Group’s expansionary phase, produced tangible effects with an overall decrease in administrative expenses of some ITL 40 bn (-4.30%) versus 1999 on a likefor-like base. Of this saving, ITL 23 bn related to payroll costs and ITL 17 bn to other G&A costs. The cost/income ratio is therefore 67% from 1999 like-for-like basis. Net extraordinary income in 2000 totalled just ITL 18 bn, as opposed to ITL 116 bn in 1999, thereby indirectly confirming the positive performance of ordinary business. ROE was 11.2%, up from 7.7% in 1999 on a like-for-like basis. The Board of Directors having acknowledged the good results for the year decided to grant no.500 shares to the parent company's employees. Total collections totalled ITL 47,572 bn with a 7.5% like-for-like increase. While direct collections showed general stability, indirect collections touched on ITL 27,000 bn, rising by 14.5%, with key drivers being
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bank-assurance (+39.6%) and administered assets (+28.4%), an indispensable indirect driver for growth in assets under management. Customer loans and advances amounted to ITL 18,327 bn with a 24.2% increase (18.1% on a like-forlike basis). Growth was strong in both the short-term and medium-/long-term segments. Risk monitoring as per the parent company’s procedures, now being extended to all the group’s banks, led to further reduction of net risk items by 13%, whilst coverage of non-performing loans exceeded 48%. The improvement in credit quality made it possible to achieve these results as well as a 45.5% reduction in net adjustments and provisions of ITL 106 bn. FY2000 featured continuation of activities concerning Group integration. On the one hand, these related to design of corporate governance processes for both the parent company and subsidiaries and, on the other, to upgrading of the efficiency and profitability of the Group’s overall organisation. The model applied features gradual centralisation in the parent company of those activities that, when performed on a unified basis, supply added value in terms of standard processes, economy of resources, enhanced operational efficiency, and quality of results. As regards the commercial area, the parent company’s Customer & Marketing Directorate has taken on responsibility for all planning and co-ordination of individual actions – the sole group “factory” for all product/segment and marketing aspects. Fiscal year 2000 also marked completion of efforts to extend the parent company’s budget control tools to the group’s other banks. These permit profitability analysis by customer, product, profit centre and other aggregates with control by the parent company over business generation and the accuracy of data for the entire group. In the area of administration, accounting and official reporting, all functions that do not have to be mandatorily performed by the individual banks were centralised in order to comply with regulations. As regards lending, the house organic lending regulations defined by the parent company are now being spread to all the group’s banks with any adaptations being authorised on a case-by-case basis by the parent
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company. This also means elimination of any weaknesses present in the group banks’ individual sets of regulations. The information technology work needed to activate the group’s centralised credit-risk database was completed. Centralisation of the internal audit function at parent-company level is now at an advanced stage of implementation. In the area of human resource management, FY2000 featured ongoing consolidation of the coordinating role played by the parent company. This focused on the adoption of common group-wide policies as regards both to the contingent management of problems relating to application of the new national collective agreement and to the more general challenge of training, hiring, performance appraisal, and relationships with trade-union organisations. The actions outlined above join those already completed in previous years for unification of the information system of the group’s four banks and for creation and strengthening of a centralised business unit. The latter is proceeding with gradual centralisation of back-office activities for branches with the objective of (a) making business processes increasingly efficient and effective and (b) freeing up greater resources for redeployment to commercial – i.e. business-generation – activities.
(Full financial statements are attached).
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FY2000 FINANCIAL STATEMENTS of CASSA di RISPARMIO di FIRENZE SpA
Summary of key consolidated P&L and balance-sheet data:
NET PROFIT
ITL 154.6 bn (+36%)
NET INTEREST INCOME
+ 8.10%
SERVICE INCOME
+ 4.70%
OPERATING PROFIT
+ 10.00%
ORDINARY OPERATING PROFIT
+ 90.10%
-------------------------------------------------------------------------------------------TOTAL COLLECTIONS
37,265 bn (+8%)
DIRECT COLLECTIONS
Stable at around 15,500 bn
INDIRECT COLLECTIONS
21,807 bn (+ 15.00%)
CUSTOMER LOANS & ADVANCES
ITL 13,813 bn (+20%)
(Full financial statements are attached).
Florence, March 26th 2001
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CASSA RISPARMIO FIRENZE CONSOLIDATED BALANCE SHEET (millions of lire)
ASSETS
31 dicembre 2000
31 dicembre 1999
10 Cash and cash on deposit with central banks
and post offices
143.362
123.715
20 Italian government securities and similar
securities eligible for refinancing with central banks 30 Amounts due from banks
862.816
1.775.392
2.046.747
2.619.821
(a) sight
515.173
299.460
(b) other
1.531.574
2.320.361
40 Customer loans
18.327.209
14.750.969
including: - loans from third-party funds under administration
2.396
50 Bonds and other debt securities
(a) of public issuers (b) of banks
3.121 3.711.363
3.671.112
2.963.197
3.159.040
536.658
327.751
181.159
57.952
including: - own securities (c) of financial institutions (d) of other issuers
79.947
81.310
131.561
103.011
60 Shares and other equity securities
512.182
189.589
70 Participating interests,
737.186
591.215
other than in group companies (a) valued on equity method
344.624
(b) other
392.562
80 Participating interests in group companies
(a) valued on equity method (b) other
327.725 263.490 30.370
27.955 2.415
90 Goodwill arising on consolidation
22.202 19.595 2.607
200.433
100 Goodwill on equity-valued holdings 110 Intangible assets
95.973
605
25.097
96.155
86.340
including: - formation, start-up and similar costs - goodwill
95
163
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120 Property and equipment 140 Own shares 150 Other assets 160 Accrued income and prepayments
(a) accrued income (b) prepayments
12 590.720
583.351
659
0
2.118.731
1.747.529
152.110
127.436
146.081
121.970
6.029
5.466
521
1.262
including: - issue discounts on securities
TOTAL ASSETS
29.530.648
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26.409.741
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CASSA RISPARMIO FIRENZE CONSOLIDATED BALANCE SHEET (millions of lire)
LIABILITIES AND SHAREHOLDERS' EQUITY
31 dicembre 2000
10 Amounts due to banks (a) sight
31 dicembre 1999
3.167.509 948.911
(b) at maturity date or notice
2.218.598
20 Customer deposits (a) sight
1.746.691 13.131.108
11.281.205
(b) at maturity date or notice
2.282.160 535.469
1.849.903
30 Debt securities issued
11.983.215 10.152.313 1.830.902
6.828.537
6.711.319
(a) bonds
5.292.520
5.076.006
(b) certificates of deposit
1.240.769
1.483.473
(c) other
295.248
40 Third-party funds under administration 50 Other liabilities 60 Accrued liabilities and deferred income
151.840 8.722
8.865
2.639.084
2.016.000
184.437
151.680
(a) accrued liabilities
168.764
128.786
(b) deferred income
15.673
22.894
70 Staff severance indemnity provision
80 Provisions for risks and charges (a) provisions for pension and similar liabilities (b) accrued taxes (d) other provisions
246.269
252.714
566.265
436.018
302.272
252.056
167.602
100.469
96.391
90 Provisions for loan losses
83.493 55.753
71.081
100 Reserve for general banking risks
110.749
105.100
110 Subordinated debt
680.000
680.000
120 Negative differences on consolidated holdings
7.491
8.161
130 Negative differences on equity-valued holdings
4.248
4.254
140 Minority interests 150 Share capital 160 Share premium 170 Reserves (a) legal reserve
331.362
241.135
1.065.367
1.063.832
632
632
306.209
260.169
216.304
(b) reserve for own shares
214.414
659
0
(c) statutory reserve
31.933
3.986
(d) other reserves
57.313
41.769
180 Revaluation reserves
13.735
0
200 Net profit for the year
183.171
133.406
29.530.648
26.409.741
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
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CASSA RISPARMIO FIRENZE CONSOLIDATED PROFIT AND LOSS ACCOUNT (millions of lire) VOCI 10
31 dicembre 2000
Interest earned and similar income
31 dicembre 1999 1.405.032
1.095.133
including: - on customer loans - on debt securities 20
1.064.478
830.986
230.876
201.820
Interest expense and similar charges
-653.517
-464.074
including:
30
- on customer deposits
-249.493
- on debt securities
-266.370
Dividends and other income (a) on shares and other equity securities (b) on participating interests, other than in group companies (c) on participating interests in group companies
-155.894 -222.314 17.921
105.974
975
2.753
16.946
101.380
0
1.841
40
Commissions earned
518.999
477.551
50
Commissions expense
-39.809
-28.065
60
Gains (losses) on financial transactions
35.753
29.353
65
Revenues on FIP fund
16.964
0
70
Other operating income
186.179
135.001
80
Administrative expenses (a) personnel expense
-900.156
-873.775
-604.424
-588.117
- salaries and wages
-430.511
-422.086
- social security contributions
-106.646
-102.601
- staff severance indemnities
-38.088
-35.042
- pensions and similar obligations
-16.889
-17.218
-295.732
-285.658
including:
(b) other administrative expenses 85
Costs on FIP fund
90
Value adjustments to intangible assets and property and equipment
-16.964
0
-125.409
-100.474
100 Provisions for risks and charges
-18.389
-29.327
110 Other operating expenses
-72.797
-43.835
-171.854
-246.724
120 Value adjustments to loans and provisions for guarantees and commitments 130 Value re-adjustments to loans and reversals of provisions for guarantees and commitments
72.259
77.896
140 Provisions for loan losses
-8.597
-20.832
-4.155
-1.941
150 Value adjustments to non-current financial assets 160 Value re-adjustments to non-current financial assets 170 Profits/(Losses) of companies valued on equity method 180 Profit from ordinary operations
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187
88.847
36.451
330.314
148.499
190 Exceptional income
81.625
139.504
200 Exceptional charges
-64.113
-31.135
17.512
108.369
210 Gain (loss) on exceptional items - net 230 Change in reserve for general banking risks 240 Income taxes for the year
-5.649
-3.060
-142.736
-97.643
250 Profit for the year pertaining to minority interests
-16.270
-22.759
260 Net profit for the year
183.171
133.406
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