A. Palladio, Palazzo Thiene (XVI century) - Historical headquarters of the Banca Popolare di Vicenza
Società Cooperativa per azioni - Member of the Italian bankers association an italian
interbank deposit protection fund - Parent of the Banca Popolare di Vicenza Banking
Group Registered office: I-Vicenza - Via Btg. Framarin, 18 - Tax Code 00204010243 - Vicenza Business Register 1858 Bank listing n. 1515 - Capital stock as of 12.31.2005 €
183,816,738.00 Banking Group 5728.1
2005
ANNUAL REPORT
The (consolidated) financial statements have been translated
from those issued in Italy, from the Italian into the English
language solely for the convenience of international readers.
INDEX
Directors and officers
Financial highlights
Report on operations
Report of the Board of Statutory Auditors
Consolidated balance sheet
Consolidated statement of income
Explanatory notes
Attachments:
Adoption of IAS/IFRS
Changes introduced by IAS/IFRS
Balance sheets and statements of income of the consolidated companies
Independent Auditors’ report
Consolidated balance sheet in Euro and US Dollars
Consolidated statement of income in Euro and US Dollars
Branch network
2
3
4
7
36
38
40
51
218
219
237
287
292
294
295
BANCA POPOLARE DI VICENZA
BOARD OF DIRECTORS
Chairman
Deputy Chairmen
Director and Secretary to the Board
Directors
* Giovanni Zonin
* Giovanni Bettanin
* Marino Breganze
* Giorgio Tibaldo
Mario Bonsembiante
Giuseppe Di Lenardo
* Zeffirino Filippi
Franco Miranda
Gianfranco Pavan
Paolo Sartori
* Fiorenzo Sbabo
* Gianfranco Simonetto
Maurizio Stella
Paolo Tellatin
* Ugo Ticozzi
* Giuseppe Zigliotto
BOARD OF STATUTORY AUDITORS
Chairman
Auditors
Alternate auditors
Giovanni Zamberlan
Giacomo Cavalieri
Laura Piussi
Giuseppe Mannella
Marco Poggi
BOARD OF ARBITERS
Chairman
Nicola Amenduni
Arbiters
Gian Paolo Boschetti
Pierantonio Maule
Alternate arbiters
Gianfranco Corà
Altegrado Zilio
General Manager
Joint General Manager
Deputy General Manager
Deputy General Manager
Luciano Colombini
Samuele Sorato
Ippolito Fabris
Franco Tonato
* Members of the Executive Committee.
3
FINANCIAL HIGHLIGHTS
BANCA POPOLARE DI VICENZA GROUP
Balance Sheet (in thousand of Euro)Costi
Net total assets
Net total loans
Stockholders' equity
1
Direct deposit
Loans to customers
(in thousand of Euro)Costi
Net interest income
Net interest and other banking income
Net income from financial activities
Net income (loss) for the year
17,696,774
12,855,676
1,716,752
31 December 2005
01January 20052
14,189,022
14,773,936
12,764,493
12,564,364
31 December 2005
31 December 20043
441,750
790,169
687,730
125,770
383,615
681,462
618,989
117,656
31 December 2005
31 December 20044
5.53%
0.60%
3.26%
10.78%
14.01%
6.85%
0.66%
3.50%
9.70%
13.35%
excluding IAS 32, 39 and IFRS 4 application
Financial ratios (%)Costi
Net income (loss) for the year / Stockholders' equity
Net income (loss) for the year / Net total assets
Net income from financial activities / Net total assets
Stockholders' equity / Net total assets
Stockholders' equity / Net total loans
4
21,116,434
16,241,521
2,275,572
including IAS 32, 39 and IFRS 4 application
Statement of income
3
31 December 20041
excluding IAS 32, 39 and IFRS 4 application
Balance Sheet (in thousand of Euro)Costi
2
31 December 2005
excluding IAS 32, 39 and IFRS 4 application
5
BANCA POPOLARE DI VICENZA PARENT COMPANY
Balance Sheet (in thousand of Euro)Costi
Net total assets
Net total loans
Stockholders' equity
1
Direct deposit
Loans to customers
(in thousand of Euro)Costi
Net interest income
Net interest and other banking income
Net income from financial activities
Net income (loss) for the year
12,795,539
9,522,481
1,756,961
31 December 2005
01January 20052
9,545,975
10,480,570
8,764,973
9,073,890
31 December 2005
31 December 20043
269,504
528,231
439,710
92,266
251,524
482,528
428,381
90,983
31 December 2005
31 December 20044
3.99%
0.58%
2.75%
14.46%
18.68%
5.18%
0.71%
3.35%
13.73%
18.45%
excluding IAS 32-39 application
Financial ratios (%)Costi
Net income (loss) for the year / Stockholders' equity
Net income (loss) for the year / Net total assets
Net income from financial activities / Net total assets
Stockholders' equity / Net total assets
Stockholders' equity / Net total loans
4
15,980,120
12,369,109
2,310,834
including IAS 32-39 application
Statement of income
3
31 December 20041
excluding IAS 32-39 application
Balance Sheet (in thousand of Euro)Costi
2
31 December 2005
excluding IAS 32-39 application
6
BANCA POPOLARE DI VICENZA BANKING GROUP
CONSOLIDATED REPORT ON OPERATIONS
Group structure
The various initiatives taken by the Group during 2005 were mainly designed to achieve the objectives contained in the new 2005-2007 Business Plan for the Bank and Group, approved by
the Board of Directors on 22 February 2005. The new plan’s goal is to achieve a further improvement in the Group’s productivity, efficiency and profitability. While it represents continuity with the recent past, it lays the foundations for exploiting new opportunities for external
growth that creates value for stockholders.
The Group’s growth in size and its organizational structure, already rationalized in the past,
mean that the bedrock of the 2005-2007 plan is the explicit, structured definition of rules designed to organize the Group along federal lines, geared to maintaining its foothold in local markets under the direction of a Corporate Center forming part of the Parent Bank.
The strategic guidelines contained in the plan for pursuing the goals of further improvements in
the Group’s productivity, efficiency and profitability are:
• consolidation of the growth of Banca Popolare di Vicenza, on the basis of strategies already
adopted in recent years;
• rationalization of the Group’s cost structure, by revising organizational processes and authorization limits for expenditure/investment considered of strategic for the Group, by completing the centralization and rationalization of back office activities and by reorganizing and rationalizing departmental information systems;
• improvement in the profitability and efficiency of the subsidiary banks, including through local expansion by internal means;
• growth by external means, with the goal of reaching the target size of 800 branches;
A number of projects in implementation of the Business Plan have already been started, such as
the revision of rules on Group spending and investment limits, the definition of new rules for
the Group’s governance and the enhancement of its commercial structure. Details of the projects
and activities in implementation of the 2005-2007 Business Plan can be found in a specific section of the Report on Operations accompanying the Bank’s statutory financial statements.
The Board of Directors voted on 30 August 2005, under the authority received from the stockholders, to increase capital stock by approximately Euro 489 million, the purpose being to
strengthen its capital structure and to support the business expansion being pursued by the
Bank and Group as a whole. This operation, terminating at the end of October, was very successful, reflecting stockholder confidence in the Bank’s management and results.
New strategically important ventures undertaken during the year regarding equity investments
included the incorporation of the new company known as Prestinuova, specializing in the disbursement of loans secured by the withholding of one-fifth of wages. The Group continued to
work during 2005 on achieving a more rational, effective management of its equity investment
portfolio. The principal actions undertaken were as follows:
Partnership between the BPVI Group and the 21 Investimenti Group
Following on from the joint venture agreement consummated in October 2004 between Banca
Popolare di Vicenza, Nordest Merchant S.p.A., 21 Investimenti SpA and 21 Investimenti Partners SpA, designed to reorganize the business of merchant banking and private equity, the purchase of the following equity interests was completed in January 2005:
• BPVi acquired 20% of the capital stock in 21 Investimenti Partners S.p.A., while selling the
latter its 50% interest in 21 Partners SGR S.p.A.;
• 21 Investimenti Partners SpA acquired 20% of Nordest Merchant S.p.A.
NEM SGR S.p.A. started doing business at the start of 2005, having obtained Bank of Italy authorization to carry out asset management services. It set up “NEM Imprese”, a closed-end in7
vestment fund for qualifying investors amounting to Euro 30 million, which was fully subscribed
in May 2005.
The venture has started to produce its first positive results, with Nordest Merchant closing the
year with net income of Euro 3.9 million and the funds managed by 21 Partners SGR S.p.A. expected to perform well.
Prestinuova
A new company was set up on 8 June 2005 under the name of Prestinuova (with its registered
office in Palermo), with the purpose of increasing the BPVI Group’s penetration of the consumer credit market. This company is wholly-owned by the Group, with 90% of its shares held
by Banca Nuova. The company disburses credit and provides loans secured by the withholding
of one-fifth of wages, now also through the business transferred by its parent Banca Nuova with
effect from 1 January 2006. The decision to attack this market with a specialized company is
based on the growth in consumer credit reported in other European countries relative to Italy,
on the basis of which the domestic market is expected to grow by an average of 20% per annum
in the next 3 years. In this context Banca Nuova entered into a three-year agreement with INPDAP (public-sector employees pension fund), together with Banca Nazionale del Lavoro, to
provide personal loans secured by one-fifth withholdings from income and home loans to pensioners. This agreement is thought to represent a source of major growth for the company and
for the disbursement of personal loans also to employees in service. The new company has been
duly entered in the list under article 106 of the Banking Act, kept by the Ufficio Italiano dei
Cambi, and in the “Special” list kept by the Bank of Italy. It started doing business in January
2006, also thanks to completion of the transfer of the business from Banca Nuova. Important
contacts for the consummation of new nationwide agreements are currently in progress.
Linea S.p.A.
Again as part of the process of developing the Group’s consumer credit business, in February
2006 it acquired an additional 15.76% interest in Linea S.p.A. after Cofinoga (an associate of
the Lafayette Group and the BNP Paribas Group) decided to sell its shares. This transaction,
carried out jointly with Banco Popolare di Verona e Novara which took over a holding of the
same size from the French shareholder, cost Banca Popolare di Vicenza Euro 47.3 million and
raised our interest in this company from 32.20% to 47.96%. Further to this operation BPVI and
Banco Popolare di Verona signed a new five-year stockholders’ agreement, designed to ensure
that the company was appropriately managed, including with regard to corporate governance.
Sec Solution S.p.A. – Informatica Vicentina
In May 2005, the stockholders of Sec Solutions voted to transform the company from a “co-operative company” to a “public limited company”, changing its name to Servizi Bancari and modifying its ownership structure, which now consists of just two stockholders: the BPVI Group,
with 70% of capital stock, and the consortium Sec Servizi, with the remaining 30%. Sec Solutions was originally set up to centralize and rationalize the back office activities of the banks belonging to the consortium of Sec Servizi. The other member banks subsequently decided to outsource only a very small part of their back office services, meaning that there was no longer any
point in pursuing the project on a co-operative basis.
As part of a subsequent restructuring of the business, Informatica Vicentina, a wholly-owned
subsidiary of BPVI, acquired all the shares in Servizi Bancari and, in November 2005, the stockholders of the two companies voted to merge Servizi Bancari into Informatica Vicentina, chang8
ing its name to Servizi Bancari. The merger was completed in March 2006 although was effective
from 1 January 2006.
Banca della Nuova Terra
In June 2005, the Group acquired a 15% interest in Banca della Nuova Terra for the sum of
Euro 11.2 million. As a result of this transaction, the co-operative bank stockholders in Banca
della Nuova Terra (Banca Popolare di Vicenza, Banca Popolare dell’Emilia Romagna, Banca
Popolare Italiana, and Banca Popolare di Sondrio) now own 51%. They are bound by a threeyear renewable stockholders’ agreement designed to regulate its governance and strategy. The investment in this bank, founded by Meliorbanca in July 2004, represents both an investment and
development opportunity for our Bank by making it possible to distribute a range of products
that satisfy specific investment, credit and insurance needs of mid-size food producers, public
co-operative entities or public entities controlled by the Regions (eg. land reclamation consortia)
and small farming businesses and organizations.
Sec Servizi S.c.p.A.
In April 2005, the stockholders of Sec Servizi voted to increase its capital from Euro 14.4 million
to Euro 25 million, for the purpose of financing development plans and coping with the financial needs associated with the increase in business.
The outlay for the Parent Bank was Euro 5.0 million in order to keep its interest in the company
unchanged (47.11% as of 31 December 2005 and 49.56% for the Group as a whole).
Other investments in equity instruments
Banca Nazionale del Lavoro
On 18 July 2005, the Parent Bank entered into an agreement with Unipol Assicurazioni S.p.A.
relating to the 119,088,480 BNL shares in its portfolio. Under this agreement, the Parent Bank
undertook not to transfer these shares before the date of closing the takeover bid being made by
Unipol, to whom a call option on these shares was granted. In view of the developments in the
Unipol bid, this agreement was terminated by mutual consent in February 2006. In the same
month a new agreement was made with BNP-Paribas SA, under which the Parent Bank undertakes to sell the former, which in turn is obliged to buy, 75,000,000 BNL ordinary shares at the
price of Euro 2.925 each. The completion of this sale agreement depends on satisfying a number
of conditions precedent by 30 June 2006. These include the required clearance from the Bank of
Italy, the Italian Antitrust Authority and any other competent authority, including the Bank of
France.
Banca Italease
As part of Banca Italease’s stock flotation completed in June 2005, involving the offer of shares
made available by stockholders and new-issue shares, the Parent Bank signed a lock-up agreement (ending in December 2005) with other shareholders to help stabilize the flotation price.
After this agreement expired and having already decided on a course of gradual withdrawal, the
Parent Bank carried out a securities lending transaction with associated put and call options,
which will produce a gain on maturity provided the price of the Banca Italease stock remains
buoyant.
9
Representative offices abroad
Bearing witness to the vitality and dynamism of the Bank and its Group as a whole, BPVI
strengthened its presence in China by opening up a new representative office in Shanghai in
March 2005. The new office joins the one open in Hong Kong since the 1980s, creating a real
commercial link between Italian business and the great market of China. The Shanghai representative office has the task of facilitating business between Italy and China, by helping Italian companies with every type of commercial initiative and offering them advice on setting up joint ventures with local businesses, on seeking out potential partners and on local tax and company rules
and regulations.
Banca Popolare di Vicenza also applied during 2005 to the Reserve Bank of India to open up a
new representative office in New Delhi in 2006.
Adoption of international accounting standards (IAS/IFRS)
EC Regulation 1606/2002 requires companies listed on regulated markets in the European
Union to prepare their consolidated financial statements – as from 1 January 2005 – in accordance with the International Financial Reporting Standards (IFRS, formerly known as IAS) issued by the IASB and adopted by the European Commission.
Under Decree 38 of 28 February 2005, Italy took up the option allowed by article 5 of the EC
Regulation to make the scope of application of IAS/IFRS much wider, requiring them to be
adopted by banks and financial companies supervised by the Bank of Italy.
More precisely, it is compulsory for banking groups to adopt these standards for their 2005 consolidated financial statements, while their adoption is only optional for the statutory financial
statements of individual banks (although the adoption of IAS/IFRS for individual financial statements is compulsory from 2006).
Accordingly, Banca Popolare di Vicenza has prepared its consolidated financial statements at 31
December 2005 in accordance with IAS/IFRS and in compliance with the instructions recently
issued by the Bank of Italy regarding the “technical form” of the financial statements of banks
and financial companies1.
All the information on how IAS/IFRS have been adopted by the Group and the impact on its
balance sheet, income statement and financial position on first-time adoption (FTA), prepared
in compliance with the provisions of IFRS 1, are contained in an appendix to the explanatory
notes to the consolidated financial statements, to which the reader should refer.
Scope of consolidation
At 31 December 2005 the Banca Popolare di Vicenza Banking Group was comprised as follows:
– Banca Popolare di Vicenza SCpARL - Parent Bank
– Banca Nuova SpA
– Cassa di Risparmio di Prato SpA
– B.P.Vi. Fondi SGR SpA
– Nordest Merchant SpA
– NEM SGR SpA
– BPV Finance (International) Plc
1
The Bank of Italy published Circular 262 at the end of December 2005. This deals with the formats and rules for
preparing bank financial statements in accordance with IAS/IFRS and also contains the calendar of amendments to the
supervisory system taking place between 2005 and 2006.
10
– Informatica Vicentina SpA
– Immobiliare Stampa SpA
– PrestiNuova SpA
– Servizi Bancari SpA
In compliance with IAS 27, the scope of consolidation of the Banca Popolare di Vicenza Group
also includes subsidiaries that were previously excluded under Italian accounting standards because they carried out dissimilar activities, namely the insurance companies of Berica Vita SpA
and Vicenza Life Ltd.
The consolidated financial statements of the Banca Popolare di Vicenza Group therefore comprise the financial information reported by the Parent Bank and its direct and indirect subsidiaries as follows:
1) consolidated line-by-line:
– Banca Popolare di Vicenza SCpA - Parent Bank
– Banca Nuova SpA
– Cassa di Risparmio di Prato SpA
– B.P.Vi. Fondi SGR SpA
– Nordest Merchant SpA
– NEM Sgr
– BPV Finance (International) Plc
– Informatica Vicentina SpA
– Immobiliare Stampa SpA
– PrestiNuova SpA
– Servizi Bancari SpA
– Berica Vita SpA
– Vicenza Life Ltd
2) consolidated using the equity method:
– 21 Investimenti Partners SpA
– Magazzini Generali e Derrate SpA
– Nuova Merchant SpA
– SEC Servizi SCpA
– Interporto della Toscana Centrale SpA
– Linea SpA
The figures consolidated for Linea SpA refer to its consolidated financial statements, which include the results of Equilon SpA and Futuro SpA, both of which are wholly-owned subsidiaries
of Linea SpA.
3) carried at cost:
Group companies excluded from the scope of consolidation as only held temporarily. Also excluded from the scope of consolidation, even though the Group holds more than 20%, and carried at cost are: a)equity investments of a temporary nature held as part of normal merchant
banking activities; b)immaterial equity investments (where immateriality means that their exclusion from the consolidated financial statements has an insignificant effect on the balance sheet
and income statement in the case of line-by-line consolidation and on consolidated stockholders’
equity in the case of consolidation using the equity method), namely:
– Stefano Ricci SpA (30.07%)
– Etrutria Sviluppo SCRL (31.38%)
The balance sheets and income statements used for consolidation purposes are those approved
by the Boards of Directors of the individual companies as of 31 December 2005. These statements have been adjusted, where necessary and material, to bring them into line with correct
11
and consistent Group accounting policies. Nuova Merchant SpA, Interporto della Toscana Centrale SpA and Magazzini Generali e Derrate SpA have been recorded at the value of stockholders’ equity reported in their respective financial statements for 2004, while the investment in 21
Investimenti Partners SpA has been recorded at the value reported in the financial statements
for 2005 which are in the process of being approved.
The financial statements of companies consolidated line-by-line, but presented using formats
that differ from those established in Circular 262 of 22 December 2005, have been duly reclassified in accordance with the accounting policies adopted by the Parent Bank.
The scope of consolidation as of 31 December 2005 is summarized below:
12
LINE-BY-LINE
CONSOLIDATION
BANCA POPOLARE DI VICENZA
S.c.p.a.
98.741% 99.994%
BPV Finance
International Plc
PrestiNuova S.p.A.
10%
100%
Vicenza Life Ltd
Cariprato S.p.A.
79%
100%
Immobiliare Stampa S.p.A.
Nordest Merchant S.p.A.
80%
100%
BPVi Fondi SGR S.p.A.
100%
Informatica Vicentina S.p.A.
Banca Nuova S.p.A.
90%
100%
20%
NEM SGR S.p.A.
100%
1%
99%
Berica Vita S.p.A.
Servizi Bancari S.p.A.
CONSOLIDATION AT
NET EQUITY
1.655%
1.017%
20%
20%
20%
21 Investimenti
Partners S.p.A.
Interporto della Toscana S.p.A.
25%
Magazzini Generali
e Derrate S.p.A.
Nuova Merchant S.p.A.
32.2%
Linea S.p.A.
47.114%
SEC Servizi S.C.p.A.
13
Overview of the macroeconomic situation
The following is a brief summary of the main events that characterized the market situation in
which the Group had to operate during 2005. Reference should be made to the report on operations in the Parent Bank’s financial statements for a more detailed analysis of the macroeconomic scenario in Italy and abroad, as well as for an analysis of developments in the banking market.
The macroeconomic picture in 2005 featured the following trends:
• The international economy continued to maintain a solid pattern of growth, even if the pace
was slightly slower than the exceptionally high one of 2004 (the fastest in over twenty
years):thanks to the good performance of the US and Chinese economies, global gross domestic product grew by around 4.5% in 2005 (+5.0% in 2004).
• The strong demand from the large emerging economies pushed the price of oil to a record
level of nearly USD 70 a barrel at the end of August, coming back down to around USD 60 at
year end, but still well above the price of USD 45 a year earlier.
• Despite slowing down in the last quarter (GDP growth of +1.6% year-on-year in the fourth
quarter, compared with +4.1% in the third quarter), the US economy continued to show signs
of being in good health, reporting average growth of 3.5% in GDP for 2005 (4.4% in 2004).
• The Chinese economy continued to grow apace in 2005 (GDP +9.9% compared with
+10.1% in 2004) and even Japan reported a positive trend in GDP (+2.4% in 2005 compared
with 2.6% in 2004).
• The euro-zone displayed some reawakening of economic activity, especially in the two central
quarters of the year. However, this was followed by a disappointing fourth quarter when
GDP was worse than expected and somewhat below that of the previous quarter (+0.3%
compared with 0.6% in the period June-September 2005). The fourth-quarter figure took average GDP growth for 2005 to 1.3%, well below the 2.1% reported in 2004.
• After coming out of the recession reported between the end of 2004 and start of 2005, the
Italian economy experienced a period of recovery that started to tail off in the second half of
the year. Italy’s gross domestic product for 2005, valued at 1995 deseasonalized prices and
corrected for the different number of working days, ended up being basically the same as in
2004. The latest figures published by ISTAT (Italy’s central statistical office) confirm the
economy’s difficulties and the widening of the growth gap with respect to other euro-zone
countries: Italy has now been growing at a systematically lower rate than the euro-zone as a
whole for exactly ten years. Italy’s growth differential is estimated at around 1.1 points of
GDP, one of the largest gaps in the recent past.
• The ECB raised the cost of borrowing by 25 basis points in December 2005, taking the reference interest rate to 2.25%. This decision, the first tightening in over 5 years, was needed to
adjust the accommodating approach of the ECB’s monetary policy and to forestall the risks to
price stability caused by the recent rises particularly in energy prices, and by the abundant
quantities of liquidity in the euro-zone.
• In the United States, 2005 ended with the thirteenth consecutive rise in policy rates, taking
them to 4.25%. The FED raised the Fed Funds rate once again in January 2006, taking it to
4.5%. The need to check inflationary expectations and avoid the start of a chain reaction
caused by the rise in oil prices was behind the FED’s policy of steady rate rises since 2004.
• Apparently in contrast with growth in the real economy, European stockmarkets reported another record year with double-digit growth on all the major financial markets(Frankfurt
+27.1%, Paris +23.4%, Madrid +18.2%, London +16.7%, Milan +15.5%), once again spearheaded by utilities and financial stocks.
• Despite the far-from-brilliant economic situation in Italy, the banking sector continued to enjoy rapid growth, outpacing that seen in 2004 both for loans (+8.9% compared with +5.5%
in 2004) and for deposits (+8.4% compared with 7.7% in 2004).
• The demand for long-term lending (+13.1% compared with 2004) was the main engine be14
•
•
•
•
•
•
•
•
hind the overall growth in credit, reflecting the shift in personal customer and business demand towards the longer-dated segment. After a long pause, short-term lending only returned
to positive growth in the last three months of the year (+2.4% in December relative to the
year before).
The quality of credit does not currently appear to be suffering from the frail economic situation. The latest available figures, updated to November, report 0.6% growth in non-performing loans year-on-year, considerably lower than the figure of +6.0% reported at the end of
2004, while the ratio of net non-performing loans to total loans is down to 1.6% from 2.0%
at the end of 2004. Nonetheless, a few signs of a likely deterioration in the quality of credit in
the future are starting to be seen, as witnessed by the growth in watchlist loans, once more
positive in June 2005 (+3.2% compared with the end of 2004), and associated with the increase in bank interest rates starting at the end of 2005 and expected to accelerate in 2006.
In terms of deposits, investors continued to exercise caution in their asset allocation decisions; furthermore, enduring uncertainties and low opportunity cost continued to underpin
the demand for liquidity. Direct funding by residents (deposits plus bonds) grew by 8.4% in
2005, up from +7.7% in 2004. The growth in bank funding was particularly fostered by the
demand for deposits by both personal customers and businesses (+7.5% year-on-year, up
from +5.5% in 2004), while although demand for bonds continued to be strong (+9.9% in
2005), their pace of growth was slower than in 2004 (+11.5%).
As for indirect funding, the overall amount of securities in the custody of Italian banks (both
under management schemes or held directly by customers) was slightly higher in November
2005 than in the same month in 2004 (+1.6%). The asset management sector witnessed a
gradual recovery in demand for mutual funds during 2005. The assets of Italian or foreign
funds managed by Italian intermediaries rose by 8.8% during 2005, almost entirely due to
their performance. The amount of assets held in bank portfolio management schemes also increased, reporting year-on-year growth of around 6% in November.
In terms of interest rates, the recent monetary tightening by the ECB finally closed the long
chapter of declining rates with an immediate, small widening in the spread between lending
and borrowing rates which will become even more evident in 2006.
Despite the ECB’s recent tightening of European monetary policy at the start of December
2005 (+25 basis points to the reference rates, taking them from 2% to 2.25%), the lending
rates applied by banks have not displayed a particular rise, continuing to stay at extremely
low levels after a year in steady decline. In fact, the average rate on personal customer overdrafts was down to 8.16% in December 2005, 23 basis points below that at the end of 2004,
while the rate applied to non-financial businesses was 5.35%, 14 basis points below the rate
of 5.49% in force in December 2004.The average rate on loans to non-financial businesses
(the most important segment) fell from 4.31% in December 2004 to 4.26% in December
2005 even if it increased in the last month of the year by around 9 basis points relative to
November, taking it to the highest level in the last six months.
Bank borrowing rates were generally stable during the first half of the year, while tending to
rise towards year end: the rate paid on euro deposits to personal customers and non-financial
businesses was 0.95% in December 2005, 6 basis points higher than in June 2005 and at the
end of 2004. Even the average rate paid on bonds reported a series of rises in the last quarter,
going against the downward trend seen in the first nine months of 2005. This rate reached
3.06% at year end, which, although higher than in June, was nonetheless still below the rate
of 3.10% reported at the end of 2004.
The spread calculated in December 2005 by ABI (the Italian Banking Association) between
the average lending rate and average rate paid on deposits by personal customers and non-financial companies was 2.86%. Although this was 6 basis points higher than in June 2005, it
was below the spread of 2.99% reported in December 2004.
At the local level, the Veneto’s economy closed 2005 with a few positive signs, particularly
from manufacturing industry which managed to buck the negative trend by reporting improvements in all the principal economic indicators. In fact, both output and sales grew by
15
•
•
•
•
+2.7% and +4.7% respectively in the fourth quarter of 2005 relative to the same quarter of
last year. Exports of products manufactured in the Veneto also increased by 9.1% in the
fourth quarter of 2005 relative to the same period in 2004.
As far as the province of Vicenza is concerned, the latest available figures show the chance for
the start to a lasting recovery in 2006. Output and sales both grew faster than in the third
quarter of 2005 and than in the fourth quarter of 2004. The textile/clothing/tannery sector
and goldsmithing sector continued to underperform both in terms of output and employment, even if the goldsmithing sector appeared to have boosted turnover thanks to sales on
export markets.
Friuli Venezia Giulia was one of the regions with the best economic performance in 2005. In
fact, regional GDP is estimated to have grown at an annual rate of around 0.5%, which, although not particularly high, was nonetheless well above the average.
The economic situation in Tuscany continued to be generally rather bleak. However, there
were a few signs, if not of recovery, but of alleviation of the difficulties currently afflicting the
regional economy. After the large year-on-year decreases in industrial output reported in the
first two quarters of 2005, the third quarter was decidedly better, posting only a small contraction relative to the prior year (–0.6%). The slowdown was mainly due to the metal products and textile-clothing sectors. Conversely, the mechanical engineering, electronics, transport, wood and furniture sectors appeared to be recovering.
The estimates for Sicily once again show a modest level of economic growth, in line with the
national average.
Report on Operations
For a detailed analysis of the macroeconomic situation and the sector in which the Group operates, please refer to the Parent Bank’s report on operations.
Comments on the consolidated balance sheet
As already mentioned earlier on in this report, the 2005 consolidated financial statements have
been prepared in accordance with IAS/IFRS, with the comparative figures for 2004 also restated
on the basis of these standards. The Group has taken advantage of the exemption allowed by
paragraph 36A of IFRS 1 from the requirement to restate comparative information for IAS 32
and IAS 39 relating to financial instruments, and for IFRS 4 relating to insurance contracts,
whose first-time adoption date was 1 January 2005.
However, for the purposes of consistent comparison of the 2005 balance sheet with that of the
year before, the following review of deposits and loans at 31 December 2005 compares the numbers with the corresponding amounts reported in the balance sheet at 1 January 2005, the firsttime adoption date of IAS 32, IAS 39 and IFRS 4.
Since the introduction of the new accounting policies has involved changing the scope of consolidation, for the purposes of better understanding the trend in the consolidated balance sheet’s
principal aggregates at 31 December 2005 even the figures relating to 1 January 2005 have been
restated to include the same group companies as those included in the line-by-line consolidation
at 31 December 2005 (there are no companies consolidated on a proportional basis).
The figures for direct deposits and loans to customers presented below exclude operating
payables and receivables which, under the Bank of Italy Circular 262 of 22 December 2005, are
classified as amounts “due to customers” and “loans to customers” respectively.
Consolidated loans and deposits at 31 December 2005 will now be discussed, with comparison
referring to the situation at 1 January 2005.
16
Direct and indirect deposits
Total consolidated funds under management, consisting of direct deposits, indirect deposits and
subordinated bonds, increased by 12.2% to Euro 29,245 million at 31 December 2005, up from
the figure of Euro 26,064 million reported at 1 January 2005.
(in thousands of Euro)
31/12/2005
1/01/2005
Change
(+/-)
%
Direct deposits
14,189,022
12,764,493
1,424,530
11.2%
Indirect deposits
15,056,450
13,299,657
1,756,793
13.2%
Total funds under management
29,245,472
26,064,150
3,181,323
12.2%
17
Direct deposits
Consolidated direct deposits increased by 11.2% year-on-year from Euro 12,764 million on 1
January 2005 to Euro 14,189 million at year end.
(in thousands of Euro)
31/12/2005
1/01/2005
Change
(+/-)
%
6,746,191
22,906
400,215
-5,940
5.9%
-25.9%
649,883
-55,315
-8.5%
634,513
136,668
21.5%
8,529,120
8,053,492
475,628
5.9%
Insurance policies
782,176
Bonds
4,460,484
Certificates of deposit and other securities 417,242
588,173
3,660,998
461,829
194,003
799,485
-44,587
33.0%
21.8%
-9.7%
12,764,493
1,424,530
11.2%
Current accounts and unrestricted
deposits
7,146,406
Current accounts and restricted deposits 16,966
Liabilities for assets sold but not
eliminated from the balance sheet
594,568
Repurchase agreements and other
payables
771,180
sub-total
Total direct deposits
14,189,022
The breakdown by type of direct deposit shows how greater confidence in financial markets once
more directed customer investments towards asset administration and management products, at
the expense of more traditional types of deposit: restricted current accounts and deposits and certificates of deposit declined by 25.9% and 9.7% respectively, while unrestricted current accounts
and deposits grew by 5.9%. Conversely, despite the continued low level of interest rates during
the year, repurchase agreements, typically used for temporarily investing surplus cash, increased
by 21.5%. Insurance policies jumped by 33.0%. In fact, after consolidating the Group’s insurance companies (Vicenza Life Ltd and Berica Vita SpA), insurance policies are now included
among direct deposits. Bonds issued by the Group itself reported a large increase (+21.8%), particularly thanks to the Parent Bank’s issue of Euro 830 million in bonds to institutional investors
under the European Medium Term Notes programme started in December 2003.
Liabilities for assets sold but not cancelled relate to the securitization known as Berica 5 Residential MBS, which, as discussed in the section on loans, was “reinstated” because, having been carried out after 1 January 2004, it did not satisfy the conditions of IAS 39 for being derecognized.
18
Indirect deposits
Consolidated indirect deposits increased by 13.2% to Euro 15,056 million, up from Euro 13,300
million at 1 January 2005;this increase was partly due to the recovery in stock prices, but also
due to renewed customer confidence in the asset administration sector (+13.9%) and asset management and retirement savings products (+12.3%).
(in thousands of Euro)
Mutual funds
Private portfolios under management
Fund-based managed portfolios
Shares
Other securities
Pension premiums
Treasury stock
Total indirect deposits
assets under management
assets under management and
retirement savings
assets under administration
31/12/2005
1/01/2005
Change
(+/-)
%
3,380,273
1,086,917
937,070
2,065,757
3,701,499
986,374
2,898,560
2,987,793
868,147
953,182
1,514,886
3,730,675
883,304
2,361,670
392,480
218,770
-16,112
550,871
-29,176
103,070
536,890
13.1%
25.2%
-1.7%
36.4%
-0.8%
11.7%
22.7%
15,056,450
13,299,657
1,756,793
13.2%
5,404,260
4,809,122
595,138
12.4%
6,390,634
8,665,816
5,692,426
7,607,231
698,208
1,058,585
12.3%
13.9%
In fact, the individual components of indirect deposits reported growth of 25.2% in portfolio
management schemes, of 13.1% in mutual funds and of 11.7% for retirement-saving schemes.
The equities sector also grew significantly, increasing by 36.4%, partly thanks to the recovery in
prices on national and international stockmarkets.
19
Loans
Consolidated net loans to customers amounted to Euro 14,774 million at 31 December 2005, an
increase of 17.6% on the figure of Euro 12,564 million reported on 1 January 2005.
(in thousands of Euro)
– Overdrafts and advances
– Syndicated loans
– Mortgage loans
– Other financing
– Import/export loans
– Net non-performing loans
– Repurchase agreements and
other technical forms
– Assets sold but not eliminated
from the balance sheet
Total net loans
31/12/2005
1/01/2005
Change
(+/-)
%
3,955,106
1,147,346
6,239,792
1,504,600
1,065,649
166,648
3,836,160
902,675
4,667,005
1,134,240
1,029,147
157,916
118,946
244,671
1,572,787
370,360
36,502
8,732
3.1%
27.1%
33.7%
32.7%
3.5%
5.5%
75,380
169,373
-93,993
-55.5%
619,416
667,849
-48,433
-7.3%
14,773,936
12,564,364
2,209,572
17.6%
The breakdown of loans by individual type reveals a large increase in mortgage loans to personal
customers and companies, up 33.7% year-on-year, in syndicated loans (+27.1%) and other financing (+32.7%).
Overdrafts and import/export loans grew by just 3.1% and 3.5% respectively.
Assets sold but not cancelled refer to performing mortgage loans transferred in 2004 as part of
the securitization known as Berica 5 Residential MBS. These assets have not been derecognized
because this transaction, carried out after 1 January 2004, did not satisfy the derecognition criteria set out in IAS 39. This was because Banca Popolare di Vicenza, the Parent Bank, had sub20
scribed to all of the junior Asset Backed Securities (ABS) issued by the special purpose entity2.
As a result, the remaining securitized assets relating to the Berica 5 securitization have been recognized at the balance sheet date, along with the general impairment losses relating to these assets, and the junior notes subscribed have been reversed, corresponding to the excess spread received on the sale of the loans.
Doubtful loans3 to customers amounted to Euro 391.6 million after adjustments at 31 December 2005. This was 28.5% higher than a year earlier mostly because of an increase in watchlist
positions.
However, the ratio between net doubtful loans and total loans to customers grew by just 0.22
percentage points, from 2.43% on 1 January 2005 to 2.65% at 31 December 2005. The ratio between net non-performing loans and net loans to customers improved from 1.26% on 1 January
2005 to 1.13% by year end.
The level of provisioning for doubtful loans at year end was basically stable with respect to 1
January 2005:coverage of doubtful loans went down from 42.3% to 39.7%, that of non-performing loans decreased from 52.4% to 51.8%, while that of watchlist loans increased from
24.4% to 25.7%.
With regard to the new category of loans overdue and/or overlimit for more than 180 days,
amounting to Euro 120.7 million at 31 December 2005, these were the subject of a specific overall writedown to take account of the higher level of risk associated with such loans than for performing ones.
With reference to performing loans (including assets sold but not cancelled), the amount of the
general provision against such positions amounted to Euro 75.0 million at 31 December 2005,
representing 0.52% of the total.
Lastly, unsecured loans exposed to country risks included a loan credit facility of USD 5 million
2
3
As regards other securitizations carried out before 1 January 2004, the securitized assets have not been reinstated on
first-time adoption of IAS 39, as allowed by paragraph 27 of IFRS 1.
For the sake of consistent comparison, doubtful loans do not include positions that are persistently overlimit for more
than 180 days, determined on the basis of the Bank of Italy’s new reporting rules. These positions were classified as
performing loans up until last year.
21
to Banca Galicia y Buenos Aires linked to a loan granted to this bank by the IFC (an organization set up by the World Bank).Although an agreement has been reached for restructuring this
loan, the writedown of Euro 1 million reported in the previous year has been prudently retained
against this position until such time as it is demonstrated that the terms of the restructuring
agreement have been duly observed.
You are reminded that, in compliance with IAS/IFRS, the specific and general adjustments to
loans at 31 December 2005 also include the effect of “discounting” to reflect the time required
to collect recoverable amounts.
Comments on the consolidated income statement
As already mentioned in the earlier sections of this report, the 2005 consolidated financial statements have been prepared in accordance with IAS/IFRS, with the comparative figures for 2004
also restated on the basis of these standards. The Banca Popolare di Vicenza Group has also taken advantage of the exemption allowed by paragraph 36A of IFRS 36 from the requirement to
restate comparative information for IAS 32 and IAS 39 relating to financial instruments, and for
IFRS 4 relating to insurance contracts, whose first-time adoption date was 1 January 2005.
This means that the consolidated income statement for 2005, discussed below, has been prepared in accordance with all the IAS/IFRS in force at 31 December 2005 (thus including IAS
32, IAS 39 and IFRS 4) and is compared with the income statement for 2004 prepared under the
same international standards, except for IAS 32, 39 and IFRS 4. The effects on 2004 income of
financial instruments and insurance contracts falling within the scope of these accounting standards have therefore been determined using the previously applicable accounting policies.
The comments on the results for 2005 specify the effect of applying these principles if adoption
of the measurement bases required by IAS 32, IAS 39 and IFRS 4 produces significant differences relative to the policies previously used.
Net interest income and net financial income
Captions (in thousands of Euro)
December-05
10. Interest income and similar revenues 756,038
20. Interest expense and similar charges (314,288)
30. Net interest income
441,750
December-04
(excluding IAS 32
and 39 and IFRS 4)
Changes
(+/-)
%
608,822
(225,207)
147,216
(89,081)
24.2%
-39.6%
383,615
58,135
15.2%
Despite the additional decrease in rates, which started to reverse only towards year end, net interest income improved by 15.2% on 2004 to Euro 441.7 million, reflecting an increase in business and sound management of spreads.
22
Net interest and other banking income
Captions (in thousands of Euro)
December-05
December-04
(excluding IAS 32
and 39 and IFRS 4)
Changes
(+/-)
%
30. Net interest income
441,750
383,615
58,135
15.2%
40. Fee and commission income
50. Fee and commission expense
293,510
(39,097)
247,093
(22,616)
46,417
(16,481)
18.8%
-72.9%
60. Net fee and commission income
254,413
224,477
29,936
13.3%
21,283
65,353
(506)
25,156
47,988
–
(3,873)
17,365
(506)
-15.4%
36.2%
n.s.
7,247
2
5,617
–
1,628
227
4
223
–
–
7,020
(2)
5,394
–
1,628
n.s.
-50.0%
n.s.
n.s.
n.s.
629
(1)
630
n.s.
790,169
681,462
108,707
16.0%
70.
80.
90.
100.
Dividends and other revenues
Net trading income
Net hedging gains (losses)
Gains (losses) on
disposals/repurchases of:
a) loans and advances
b) financial assets available for sale
c) financial assets held to maturity
d) financial liabilities
110. Net change in financial assets
and liabilities at fair value
120. Net interest and other
banking income
The improvement in net interest income, the contribution of net fee and commission income
and net trading income, analyzed below, helped boost net interest and other banking income by
16.0% on 2004 to Euro 790.2 million at 31 December 2005.
Net fee and commission income was 13.3% higher than in 2004 at Euro 254.4 million, reflecting
the good increase in volumes by the Group’s various businesses, especially in the asset management sector (mainly insurance products) and in traditional banking services (electronic payments, guarantees, credit cards, current accounts). Fees and commission on dealing and placing
securities were also higher thanks to the good performance of financial markets which fuelled
greater investor confidence in this sector.
Dividends and similar income amounted to Euro 21.3 million in 2005, a decrease of Euro 3.9
million on the year before (- 15.4%).
The sum of net trading income, net hedging gains and losses, net changes financial assets/liabilities at fair value and gains/losses on the sale or repurchase of financial assets/liabilities (whose
content is broadly comparable to the old category of “Profits (losses) on financial transactions”
in the income statement format used under Decree 87/92), amounted to Euro 72.7 million, an
increase of 50.8% on the figure of Euro 48.2 million reported in 2004. As already mentioned,
the prior year comparison is not meaningful because of the different accounting policies and
measurement bases used for financial instruments in 2005 after adopting IAS 32 and IAS 39.
23
Net income from financial and insurance activities
Captions (in thousands of Euro)
120.
Net interest and other
banking income
December-05
December-04
(excluding IAS 32
and 39 and IFRS 4)
Changes
(+/-)
%
790,169
681,462
108,707
16.0%
130. Net impairment adjustments to: (102,439)
a) loans and advances
(89,022)
b) financial assets available for sale (12,718)
c) financial assets held to maturity
–
d) financial liabilities
(699)
(62,473)
(62,051)
(160)
–
(262)
(39,966)
(26,971)
(12,558)
–
(437)
-64.0%
-43.5%
n.s.
n.s.
-166.8%
140. Net income from financial activities 687,730
618,989
68,741
11.1%
150. Net premium income
340,414
160. Other insurance income (charges) (341,917)
291,100
(283,476)
49,314
(58,441)
16.9%
-20.6%
626,613
59,614
9.5%
170. Net income from financial
and insurance activities
686,227
Net income from financial and insurance activities amounted to Euro 686.2 million in 2005, an increase of 9.5% on the figure of Euro 626.6 million reported in 2004, after booking a total of Euro
102.4 million in net impairment adjustments compared with Euro 62.5 million in 2004 (+64.0%).
Net impairment adjustments include Euro 89.0 million for loans to customers, Euro 12.7 million
for financial assets available for sale and Euro 0.7 million for other financial transactions.
As mentioned earlier, the increase in net adjustments to loans was mainly attributable to the different method of valuing performing and impaired loans, adopted for the first time in 2005 after
introducing IAS 32 and IAS 39.
Net adjustments to financial assets available for sale almost entirely refer to the impairment loss
recognized during the year on the interest in Hopa SpA, in order to adjust the carrying value to
the range of values reported in the valuation recently prepared by Maurizio Dallocchio for this
company.
Operating costs
Captions (in thousands of Euro)
December-05
December-04
(excluding IAS 32
and 39 and IFRS 4)
Changes
(+/-)
%
180.Administrative costs:
a) payroll
b) other administrative costs
190.Net provisions for risks and charges
200.Net adjustments to property,
plant and equipment
210.Net adjustments to intangible assets
220.Other operating charges/income
(509,907)
(293,693)
(216,214)
(12,051)
(476,415)
(271,173)
(205,242)
(23,428)
(33,492)
(22,520)
(10,972)
11,377
-7.0%
-8.3%
-5.3%
48.6%
(15,365)
(4,809)
55,942
(20,900)
(2,271)
70,507
5,535
(2,538)
(14,565)
26.5%
-111.8%
-20.7%
230.Operating costs
(486,190)
(450,330)
(35,860)
-8.0%
24
Operating costs were 8.0% higher than the year before at Euro 486.2 million compared with
Euro 450.3 million in 2004.
Looking at the different elements of cost, administrative costs increased by Euro 35.7 million as
a whole (+7.5%), with payroll costs up 9.2% and other operating expenses up 5.3%.
Net increases in provisions for risks and charges were 48.6% lower at Euro 12.1 million, down
from Euro 23.4 million in 2004.
Net adjustments to property, plant and equipment decreased by Euro 5.5 million to Euro 15.4
million (-26.5%), while net adjustments to intangible assets came to Euro 4.8 million compared
with Euro 2.2 million the year before (-111.8%).
For the sake of completeness, it is reported that goodwill and goodwill arising on consolidation
and on application of the equity method are no longer being amortized. This is because under
IAS 36 intangible assets with an indefinite useful life, like goodwill, are not amortized but tested
periodically for impairment. The amortization of goodwill arising on consolidation and other
goodwill reported in the consolidated financial statements drawn up under Decree 87/92
amounted to Euro 80.9 million in 2004.
Other operating charges/income amounted to Euro 55.9 million in 2005 compared with Euro
70.5 million in 2004 (-20.7%).In 2004 this line item included Euro 34.5 million in income arising on the securitization of performing loans to Berica Residential MBS 5 Srl, which is no longer
recognized under IAS/IFRS.
Income from current operations before tax
Captions (in thousands of Euro)
240. Share of profit (loss) of equity
investments
250. Net gains (losses) arising on
fair value adjustments to
property, plant and equipment
and intangible assets
260. Adjustments to goodwill
270. Gains (losses) on disposal
of investments
280. Profit (loss) from current
operations before tax
December-05
December-04
(excluding IAS 32
and 39 and IFRS 4)
Changes
(+/-)
%
6,554
4,343
2,211
50.9%
409
1,404
(995)
-70.9%
(2,572)
–
(2,572)
n.s.
596
3,509
(2,913)
-83.0%
205,024
185,539
19,485
10.5%
Income from current operations before tax increased by 10.5% on the year before, to Euro
205.0 million in 2005. This result is good on its own account but is even better if we consider
that last year’s result benefited from Euro 34.5 million in income from the securitization of performing loans.
25
Net income for the year pertaining to the Parent Bank
Captions (in thousands of Euro)
280. Profit (loss) from current
operations before tax
December-05
December-04
(excluding IAS 32
and 39 and IFRS 4)
Changes
(+/-)
%
205,024
185,539
19,485
10.5%
290. Income taxes on current operations (74,114)
(63,783)
(10,331)
-16.2%
300. Profit (loss) from current
operations after tax
130,910
121,756
9,154
7.5%
310. Profit (loss) after tax from
non-current assets (or disposal groups)
held for sale and discontinued operations –
–
–
n.s.
320. Net income (loss) for the year
130,910
121,756
9,154
7.5%
330. Minority interests
(5,140)
(4,100)
(1,040)
-25.4%
340. Net income (loss) for the year
pertaining to the parent bank
125,770
117,656
8,114
6.9%
Income taxes came to Euro 74.1 million in 2005, having increased by Euro 10.3 million
(+16.2%) on the figure of Euro 63.8 million reported in 2004.
After booking this tax, consolidated net income for 2005 came to Euro 130.9 million. The share
pertaining to minority interests was Euro 5.2 million, while net income pertaining to the Parent
Bank was Euro 125.8 million.
Reconciliation of stockholders’ equity and net income for the Parent Bank and
the Group
The following table reconciles stockholders’ equity and net income reported in the Parent
Bank’s statutory financial statements for 2005 with the corresponding figures in the consolidated
financial statements.
(in thousands of Euro)
Stockholders’ equity
Net income for the year
2,310,835
92,266
-39,852
26,086
Companies carried at equity
7,258
4,012
Changes in the consolidation reserve
-2,669
3,406
2,275,572
125,770
Parent Bank
Companies consolidated line-by-line
Consolidated financial statements
Consolidated net income for the year pertaining to the Parent Bank, Euro 125.8 million, was
Euro 33.5 million higher than that reported in the Parent Bank’s individual financial statements;
26
this reflected the contribution of the Group’s companies which all reported positive net income
for the year.
Consolidated stockholders’ equity pertaining to the Parent Bank of Euro 2,275.6 million was
Euro 35.3 million lower than that reported in the Parent Bank’s individual financial statements.
The changes in consolidated stockholders’ equity are set out in the schedule attached to the consolidated financial statements.
In the interests of a better understanding of the reconciliation between the Parent Bank’s results
and the consolidated results pertaining to the same Parent Bank, the following table provides
more details on the reconciling items.
(in thousands of Euro)
Parent Bank’s net income
92,266
share of net income reported in the statutory financial statements
reversal of dividends recorded in the year
reversal of intercompany securities
reversal of effects of securitized loans
reversal of gains on intercompany disposal of equity investments
reversal of intercompany gains
other effects
52,803
-22,629
936
2,050
-273
-660
1,277
Consolidated net income
125,770
Performance of the Group’s main companies
Highlights from the balance sheets and income statements of the Group’s main companies are
shown below.
We consider it important to provide information concerning the principal aggregates of each of
the Group’s banking subsidiaries, thereby putting them in perspective within the Group as a
whole while providing an overall summary of the Group’s banking activities.
Intercompany transactions and balances have not been eliminated from these figures.
27
(in thousands of Euro)
B.P.VI
B. NUOVA
CARIPRATO
TOTAL
10,480,570
1,603,170
2,406,610
14,490,349
Direct deposits
9,545,975
2,150,209
2,222,186
13,918,370
Indirect deposits
12,498,778
1,104,600
2,235,248
15,838,626
2,310,835
203,067
285,966
n.s.
92,266
12,063
20,000
124,329
Number of outlets *
352
115
67
534
Number of branches
333
100
67
500
Loans to customers
Stockholders’ equity
Net income for the year
* the number of outlets includes bank branches, financial shops and private banking outlets.
Banca Nuova SpA
Net income soared 207.3% in 2005, rising by Euro 8.1 million to Euro 12.1 million.
This result reflected major growth in banking business and several important initiatives taken in
the year, which once more revealed Banca Nuova’s energetic, innovating spirit.
On 31 December 2004 Banca Nuova completed the acquisition of 30 branches from Banca Antoniana Popolare Veneta in Sicily. This acquisition has helped improve the bank’s position on the
Sicilian market, especially in the eastern part of the island; in fact, 25 of the 30 branches acquired are located in this area.
The acquisition of these branches has been strategically very important, resulting in a 43.5% increase in the number of branches from 69 to 99.
The branches acquired had Euro 234.6 million in direct and indirect deposits and Euro 142.5
million in loans on 1 January 2005. Around Euro 6 million in loans were returned to Banca Antoniana Popolare Veneta in December, having been classified as non-performing.
The commercial network was further expanded during the year with the addition of two new
branches – one in the city of Rome and the other in the town of Bagheria in the province of
Palermo – and of three financial consulting offices: one in Augusta in the province of Siracuse;
one in Modica in the province of Ragusa; and the third in Latina.
At year end the bank’s commercial network consisted of 100 branches, 12 financial consulting
offices and 3 private banking outlets.
PrestiNuova S.p.A., a financial company, was incorporated in June 2006. The bank’s business involving personal loans secured by one-fifth of wages was transferred to this company on 1 January 2006. In fact, PrestiNuova will now operate on the consumer credit market on behalf of all
the Group’s companies.
The total assets transferred amounted to Euro 166.5 million, while the liabilities transferred
came to Euro 162.5 million. The difference of Euro 4 million was attributable to goodwill.
28
Banca Nuova owned 90% of Prestinuova at 31 December 2005, while the remaining 10% was
in the hands of Banca Popolare di Vicenza, the Parent Bank.
In view of the upsurge in lending by Banca Nuova, the Parent Bank’s Board of Directors voted
in November to contribute Euro 50 million in new capital to the bank; this resolution was implemented in December, with the payment of an initial sum of Euro 20 million.
Total deposits grew by Euro 515 million, marking an increase of 18.8%.
Direct deposits amounted to Euro 2,150 million at year end, having increased by Euro 387 million since 1 January 2005 (+22%).The increase was attributable both to short-term and longterm components. Short-term deposits climbed by over 17.3%, reporting an overall increase of
Euro 250 million most of which attributable to unrestricted current accounts and deposits. The
big increase in bonds (+50.0%) from Euro 257.3 million to Euro 386.2 million allowed the bank
to fund itself at a fixed rate with a lower cost relative to the trend in rates seen in the last part of
2005.
Indirect deposits reported another big rise, climbing 13.1% or Euro 128 million in absolute
terms. Indirect deposits were evenly balanced between asset management products (52.7%) and
assets under administration (47.3%).
Loans net of adjustments rose by 26.1% over the year, reporting an absolute increase of Euro
332 million. Total loans before adjustments were 24.9% higher at Euro 1,662 million.
Mortgage loans increased at a particularly fast past, rising by Euro 312 million (+45.9%) relative
to 1 January 2005. This result reflects the bank’s strong commitment to local development and
growth by business and personal customers. Short-term loans also reported a major increase
(+Euro 44 million) as did import/export loans (+ Euro 3 million).
The increase in loans was even more significant if we remember that the year-end figure excludes Euro 163 million in loans subsequently transferred to PrestiNuova S.p.A. and classified at
31 December 2005 as “non-current assets held for sale”.
The credit risk ratios relating to net doubtful loans improved relative to 1 January 2005, improving from 4.21% of net loans to 3.77% at year end. Similarly, the ratio of net non-performing
loans to total net loans improved from 2.69% to 2.19%.
The bank’s workforce numbered 636 at 31 December 2004, rising to 738 on 1 January 2005 after
the transfer of 102 staff from the AntonVeneta branches.
The workforce numbered 809 at 31 December 2005, reflecting 85 new recruits and 14 leavers.
The year-end figure included 5 staff under fixed-term contracts and 17 part-timers. The year-end
total also includes employees seconded to other companies (10, all to the Parent Bank) and excludes those seconded from other companies (1, from the Parent Bank).
Lastly, as a result of the business transfer to the subsidiary Prestinuova, 19 staff, all from the
head office, moved over to this company, meaning that the bank’s workforce numbered 790 on 1
January 2005.
The network of financial consultants expanded to 119 at the end of the year, up from 105 in
2004. During the year 15 non-key consultants were terminated, while 29 highly qualified professionals joined. The start-up of the financial consultant network in Lazio saw the opening of an
office in Latina in April and the entry of the first team of consultants to the city of Rome in the
last quarter of the year.
Looking at the results in more detail, net interest income increased by over Euro 16.3 million
29
(+35.5%) on the prior year to reach Euro 62.4 million, reflecting the growth in business and attentive management of spreads.
Net fee and commission income improved by over Euro 6.9 million to Euro 32.5 million
(+27%).The growth in net fee and commission income was attributable not only to diligent
management of the terms and conditions applied to customers but also to homogeneous growth
in all areas of the bank’s business.
Dividends contributed Euro 1.45 million, reporting an increase of Euro 0.35 million on the prior
year.
Net interest and other banking income climbed by over Euro 25.5 million on the prior year to
more than Euro 105.7 million (+31.8%).
After deducting Euro 1.36 million in net impairment adjustments, net income from financial activities
came to Euro 104.4 million, an increase of over Euro 25.7 million (+32.8%) on the prior year figure.
Operating costs came to a total of Euro 91.1 million, representing an increase of Euro 21.4 million (+30.7%) on the prior year.
Payroll costs were Euro 11.8 million higher at Euro 48.5 million (+32.2%).This increase was due
to the growth of 173 in the number of staff (of whom 102 from Antonveneta), and to the impact
of the new collective payroll agreement.
Other operating expenses climbed by over Euro 4 million to Euro 42.6 million (+10.6%).This
figure is attributable to the growth in the bank’s business, demand for whose loans increased by
20.8% ignoring those transferred to Prestinuova.
As far as goodwill was concerned, this was tested for impairment, as a result of which an impairment loss of Euro 2.5 million was recognized on the goodwill relating to the Antonveneta
branches.
The good results reported above helped income from current operations before tax to rise by
Euro 2 million to more than Euro 11 million in 2005 (+22.1%).
Income taxes amounted to Euro 1.8 million, partly reflecting the positive effect on tax of revaluing buildings allowed by the 2005 Finance Act. Income from current operations after tax therefore came to over Euro 9.2 million.
Lastly, income after tax on non-current assets held for sale amounted to Euro 2.8 million. This
refers to the income earned from the business transferred to PrestiNuova SpA with effect from 1
January 2006.
As a result, net income for the year amounted to over Euro 12 million.
Cariprato SpA
The bank closed 2005 with net income of Euro 20.0 million. This was a good result despite the
difficult economic situation in the Prato industrial district, the bank’s traditional area of operation, and the slowdown in the Italian economy, which reported virtually zero growth.
The bank continued to work on projects started within the Banca Popolare di Vicenza Group,
designed to improve the organization of services and customer satisfaction by optimizing loan
disbursement procedures and monitoring credit, by developing the branch plan, by undertaking
to provide ever better services and by offering products targeted at specific customer segments,
with a view to making the most of its territorial roots and gaining new market share in the region
of Tuscany as a whole.
30
Seven new branches were opened during the year in implementation of the bank’s business plan
and for the purpose of increasing the bank’s presence in Tuscany. The new branches opened in
the year are located in: Lucca Sant’Anna, Arezzo, Montecatini, Lucca Borgo Giannotti, San
Miniato and Pescia, all of which outside the bank’s traditional sphere of influence. The Florence
Osmannoro branch was opened on 9 January 2006; another twelve branches are scheduled for
opening in 2006, with others due to follow until reaching the number of 100 at the end of 2007.
The bank’s commercial network had 68 branches at 31 December 2005.
The workforce numbered 915 at 31 December 2005, of whom 86 with part-time contracts. During the year 5 new staff were hired, while 14 staff left, of whom 8 went into retirement.
On 25 February 2005 the Bank of Italy finished its ordinary inspection of Cariprato, started on
15 November 2004.
The findings, which mostly relate to organizational and operational matters requiring improvement, were examined and a number of projects, including at group level, were started for their
elimination. The Bank of Italy was subsequently informed about this work and its progress.
Funds under management increased by 5.1%, from Euro 4.2 million to Euro 4.5 million.
Direct deposits from customers rose by 7.6% since the start of the year to close at Euro 2.2 million. Current accounts increased by 8.0% to Euro 1.3 million, while bonds rose by 12% to Euro
0.6 million.
With regard to the composition of indirect deposits, which increased by 2.9% over the year, the
amount invested in asset management products climbed to 48.4% of the total, up from 43.0%
the year before, reporting a 15.8% rise from Euro 0.9 million to Euro 1.1 million.
Loans increased by 15.4% since 1 January 2005 to close the year at Euro 2.4 million. Short-term
loans, overdrafts and import/export loans rose by 3.7%.
Long-term loans continued their rising trend, reporting a 27% increase thanks to home loans to
personal customers.
The ratio of net non-performing and watchlist loans to total net loans came to 3% (1.18% for
non-performing loans alone) compared with 2.07% on 1 January 2005.The increase reflected
not only the problems of the local economy but also the ever stricter methods of assessing loans,
with particular reference to the adoption of internal rating systems. As for performing loans, the
valuation performed on the basis of historic/statistical data gave rise to Euro 17.6 million in adjustments, corresponding to 0.76% of the total.
Looking at the income statement in more detail, net interest income from customers rose by
15.0% in 2005 thanks to the increase in lending.
Net financial income rose by 11.8% as a whole, from Euro 79.8 million to Euro 89.2 million, despite a 37% reduction in interest income on the bank’s own portfolio partly as a result decreasing the capital invested.
Net interest and other banking income increased by 7.7% from Euro 125.4 million to Euro
134.2 million; it should be noted that the 2004 figures included Euro 6.1 million in income from
recognizing the excess spread on the “Berica 5” securitization and Euro 2.8 million on the sale
of junior notes relating to the “Berica 4” securitization, without which the increase in 2005 relative to 2004 would have been 16%.
Operating costs rose by 7.8% in 2005; payroll costs increased by 4.1%, while other operating
expenses, excluding indirect taxes, rose by 0.4%.
31
Adjustments for the impairment of loans were 82% higher at Euro 12.5 million, up from Euro
6.9 million, while amortization and depreciation charges went down from Euro 5.8 million to
Euro 5.2 million.
Income before tax was 9.2% lower at Euro 28.9 million, down from Euro 31.8 million in 2004.
Net income for the year increased by 3.3% from Euro 19.4 million to Euro 20 million, reflecting
a lower tax charge in 2005 than in 2004 (down from Euro 12.4 million to Euro 8.8 million). This
was attributable to a lower tax provision than on transition to IAS/IFRS in 2004 as a result of
revaluing buildings for tax in 2005.
Nordest Merchant S.p.A.
This company embarked on a new set of activities in 2005 as a result of its partnership with Banca Popolare di Vicenza and the 21 Investimenti Group whereby 21 Investimenti Partners S.p.A.
took a 20% interest in Nordest Merchant S.p.A. and Banca Popolare di Vicenza acquired a 20%
interest in 21 Investimenti Partners S.p.A. As a result, Nordest Merchant S.p.A. embarked on
the business of acquisition financing. It has since obtained a number of engagements to provide
advisory and consulting services for loan structuring and arrangement, for the restructuring of
company debt and the organization of syndicated loans.
The company closed 2005 with net income of Euro 3.9 million, compared with net income of
Euro 28.6 thousand in 2004.
NEM SGR S.p.A. - Società di Gestione del Risparmio
NEM SGR S.p.A., a wholly-owned subsidiary of Nordest Merchant S.p.A., started to do business in 2005. This company, which operates in private equity, was incorporated in September
2004 in implementation of the partnership between Nordest Merchant S.p.A., Banca Popolare
di Vicenza and the 21 Investimenti Group with the goal of creating and managing closed-end
funds that invest in small and medium enterprises operating in the Banca Popolare di Vicenza
Group’s area of influence.
“NEM IMPRESE”, a closed-end investment fund for institutional investors amounting to Euro
30 million, was launched on 13 May 2005.The company closed 2005 with Euro 52.6 thousand in
net income.
B.P.Vi. Fondi Società di Gestione del Risparmio S.p.A.
This company acts as the sole manager of customer portfolios within the Banca Popolare di Vicenza Group and supports the placement channels by training the sales network.
As part of this activity, it has created 4 new types of mixed asset management lines (each containing a different proportion of equities) with the intent of completing the range of fund and security-based products available to retail customers. The goal this year was to strengthen and
consolidate the team devoted to collective management after taking in-house the management of
6 open-ended mutual funds at the start of the year. The range of funds was not enlarged since
priority was given to managing the existing ones.
The company closed 2005 with net income of Euro 1.8 million compared with Euro 1.5 million
in 2004, while total assets under management were valued at Euro 2,079 million, 14% higher
than at the end of 2004.
32
BPV Finance (International) Plc
This company was formed in 1998 and operates out of Dublin’s International Financial Services
Centre. In view of its streamlined, specialist structure, it concentrates on asset allocation, investing in securities issued in various countries and currencies; it also participates in syndicated
lending transactions involving Italian and international customers, with a special emphasis on
the foreign subsidiaries of Italian companies.
The company closed 2005 with net income of Euro 5.2 million compared with Euro 4.7 million
in 2004.
Vicenza Life Limited
This Irish company was set up at the beginning of 2000 as part of the bancassurance project and
is now wholly owned by the Parent Bank.
The insurance business performed well during 2005, generating net income of Euro 4.7 million
compared with Euro 2.8 million the year before.
Berica Vita S.p.A.
This company was authorized to do insurance business in April 2004 by ISVAP (Italy’s insurance industry regulator). It worked on consolidating its operational structure and enlarging its
product range during 2005.The company continued to sell Sector I products in the Berica Energy range – distributed in the versions of Growth (single premium), Accumulation (recurring premium), Income (single premium and annual payment of revaluation) – and the Sector V product
called Berica Power Accumulation. As far as Sector III is concerned, the company issued three
index-linked policies in the first half of the year, known as Berica Indexation Two, Three and
Four. One Sector IV product was launched, subscription to which was reserved for the company’s own employees.
The results achieved and work carried out in the year confirm the validity of this enterprise and
of the decision to develop together with the Group’s distributor banks timely solutions to customer insurance needs.
The company closed the year with net income of Euro 1.4 million (Euro 430 thousand in 2004).
The amount of premiums received increased by 86% on the prior year, reaching Euro 225 million compared with Euro 121 million in 2004.The number of active policies increased by 128%
from 7,636 at the end of 2004 to 17,427 at 31 December 2005.
Immobiliare Stampa S.p.A.
This company purchased the Parent Bank’s real estate portfolio in 2002. It closed the year with
net income of Euro 4.0 million (Euro 3.6 million in 2004).
During 2005 the company was involved in providing the Parent Bank and Cassa di Risparmio di
Prato S.p.A. with real estate services, as well as carrying out administrative activities relating to
the lease of properties to group companies and third parties and relating to the management of
properties leased by such companies.
Informatica Vicentina S.p.A.
This is the Group’s information services company. It closed the year with net income of Euro
441 thousand compared with Euro 16.9 thousand in 2004.
33
Servizi Bancari S.p.A.
This company, which provides back office services, was created as a result of transforming the
legal form of Sec Solutions. It is a wholly-owned subsidiary of Informatica Vicentina. It closed
the year with net income of Euro 104 thousand.
Information relating to the ownership and sale of treasury stock
Information relating to treasury stock of the Parent Bank and the companies included in the
consolidation is provided in the explanatory notes.
Audit of the consolidated financial statements
The Parent Bank, as an issuer of widely-held securities, has had its statutory and consolidated financial statements audited by KPMG SpA, who were reappointed as the Group’s auditors for
the three-year period 2005-2007 at the stockholders’ meeting held on 14 May 2005, with the approval of the Board of Statutory Auditors.
Outlook for the rest of the year
The prospects for the world economy in coming months generally appear to be good even if the
pace of growth can be expected to be slightly slower after the rapid development of recent years.
Despite the sharp slowdown in GDP in the fourth quarter of 2005, the US economy will continue to have sustained growth (GDP 2006 +3.2%). The disappointing results in the fourth quarter
of 2005 appear to represent a temporary lapse, as demonstrated by the strong upsurge in US
consumer spending in the early part of 2006.
The price of oil and the large rises in the price of raw materials, combined with strong demand
by the still rapidly expanding Asian economies, are factors that will contribute to a new round of
inflation, with the consequent pursuit of tight monetary policies by central banks.
Even the euro-zone economy appears to be recovering, as confirmed by recent surveys reporting
healthy growth in business and consumer confidence, to the point of being able to expect a
forthcoming increase in industrial output and consumption. GDP should grow at a slightly
faster pace in 2006 than in 2005.
Even the Italian economy should improve in 2006, in line with the general European trend.
GDP should grow by around 1%, on the strength of a recovery in exports and investments,
while the growth in consumer spending is expected to be about the same as in 2005.
As for the principal banking aggregates, the latest forecasts for the industry as a whole predict a
continuation of the trend seen in 2005.
More specifically, demand for loans by personal customers will continue to outpace average demand for bank loans in general, once again driven by the buoyancy of the long-term sector, even
if starting to tail off relative to 2005. The demand for credit by the corporate sector will heavily
depend on the strength of economic recovery and will report faster growth for longer-dated maturities.
In terms of deposits, demand for liquidity by personal customers and businesses is expected to
retreat due to the gradual shift towards products with higher risks/returns. Bank bonds are expected to continue their buoyant pattern of growth thanks to both growing demand by investors
and the gradual lengthening of maturities in the loan book.
34
The effect of the ECB’s two recent rate rises will gradually filter through to bank lending rates
during 2006 although to a lesser extent to borrowing rates, resulting in a slight improvement in
spreads.
As for the outlook for the Group, its good results in 2005 bode well for an equally satisfying performance in 2006, especially for the results from ordinary operations, thanks to additional
growth in volumes and income from services and constant monitoring of costs.
Management will continue to follow the strategies set out in the 2005-2007 Business Plan, completing the projects already started and taking the necessary steps for achieving the targets relating to growth, efficiency and profitability. The budget for 2006 has loans growing at basically the
same rate as in 2005, while the growth in direct deposits will particularly focus on new eurobond
issues offered to both customers and institutional investors. Indirect deposits are expected to
grow largely at the same rate predicted for the industry as a whole.
The Group’s growth targets should ensure a further small increase in market share, particularly
in regions where it is a new entrant.
The results from ordinary operations are expected to improve, thanks to the growth in volumes,
the rise in rates which should produce a widening of spreads, and a generally stable contribution
by services to income. Operating costs are expected to rise only marginally. The quality of credit
is not expected to get worse, also in light of the signs of recovery witnessed in the early part of
2006.
35
REPORT OF THE BOARD OF STATUTORY AUDITORS
ON THE 2005 CONSOLIDATED FINANCIAL STATEMENTS
Shareholders,
The consolidated financial statements at 31 December 2005, which were provided to us within
the legal term, together with the accompanying tables and attachments and the report on operations, report net income for the year of Euro 125,770 thousand and consolidated stockholders’
equity pertaining to the Group, including net income for the year, of Euro 2,275,572 thousand.
As part of the duties required by law of the Board of Statutory Auditors, and bearing in mind
the standards of conduct recommended by the Italian Accounting Profession, we have reviewed
the form and contents of these financial statements, which have been prepared in accordance
with the new international accounting standards (IAS/IFRS) required by EC Regulation
1606/2002 and adopted in Decree 38 of 28 February 2005, which states that the consolidated financial statements of banks and financial companies supervised by the Bank of Italy must be
prepared in accordance with the new standards.
As a result, Banca Popolare di Vicenza has prepared its consolidated financial statements at 31
December 2005 in accordance with IAS/IFRS and with the instructions contained in the Bank
of Italy’s Circular 262 of 22 December 2005 as part of its regulatory powers concerning the
“technical form of financial statements of banks and financial companies”.
Details of the consolidation procedures, the new accounting standards and the scope of the consolidation are all provided in the explanatory notes to the consolidated financial statements.
The directors’ report on operations provides an adequate explanation of performance during the
year and provides relevant information relating to the consolidated companies as far as the
Group’s overall performance is concerned.
The explanatory notes to the consolidated financial statements contain details of the new accounting policies, as well as information on the contents of the balance sheet and income statement and other information required for the purposes of presenting a true and fair view of the
Group’s balance sheet, income statement and financial position; appended to the explanatory
notes is a detailed examination of the newly-adopted international accounting standards and a
description of the effects of their adoption on the Group’s stockholders’ equity and net income;
the Group has taken advantage of the exemption allowed by paragraph 39A of IFRS 1 from the
requirement to restate comparative information for IAS 32 and IAS 39 relating to financial instruments.
We have checked that the resolutions approved and implemented by the Parent Bank affecting
its subsidiaries were taken in accordance with the law and properly notified to the subsidiaries
themselves.
Vicenza, 4 April 2006
Board of Statutory Auditors
Giovanni Zamberlan
Giacomo Cavalieri
Laura Piussi
36
CONSOLIDATED FINANCIAL STATEMENTS
37
BANCA POPOLARE DI VICENZA GROUP
BALANCE SHEET
(in thousands of Euro)
Assets
12.31.2005
12.31.2004
(excluding IAS 32, 39 and IFRS 4)
10. Cash and balances with central banks
142,150
125,484
1,523,889
1,529,227
268,553
603,664
40. Financial assets available for sale
1,447,533
1,147,374
50. Financial assets held to maturity
53,770
30,035
1,402,393
850,223
14,839,128
12,005,453
80. Hedging derivatives
133
–
100. Equity investments
42,719
39,190
376,709
385,538
20. Financial assets held for trading
30. Financial assets at fair value
60. Loans and advances to banks
70. Loans and advances to customers
120. Property, plant and equipment
130. Intangible assets
of which: – goodwill
485,004
492,602
140. Tax assets
a) current
b) deferred tax assets
102,290
98,220
494,075
485,008
200,510
150. Non-current assets held for sale and discontinued operations
132,300
62,935
69,365
–
568
160. Other assets
326,345
353,643
Total assets
21,116,434
17,696,774
38
Liabilities and stockholders’ equity
12.31.2005
12.31.2004
(excluding IAS 32, 39 and IFRS 4)
10. Deposits from banks
2,834,104
2,055,002
20. Due to customers
8,593,525
7,491,551
30. Debt securities in issue
4,093,625
3,726,107
534,440
211,008
1,566,276
1,529,526
2,862
–
40. Financial liabilities held for trading
50. Financial liabilities at fair value
60. Hedging derivatives
80. Tax liabilities:
a) current
b) deferred
162,341
110,105
52,236
100. Other liabilities
110. Provision for severance indemnities
120. Provisions for risks and charges:
a) pensions and similar commitments
b) other provisions
160,025
102,261
57,764
533,444
436,871
87,165
81,654
89,344
46,324
43,020
97,804
45,047
52,757
130. Technical reserves
278,223
127,478
140. Valuation reserves
231,695
167,938
160. Equity instruments
12,054
–
179,109
202,598
1,543,127
1,074,058
183,817
154,502
65,513
62,996
125,770
117,656
21,116,434
17,696,774
170. Reserves
180. Additional paid-in capital
190. Share capital
210. Minority interests (+/-)
220. Net income (loss) for the year (+/-)
Total Equity and Liabilities
39
BANCA POPOLARE DI VICENZA GROUP
STATEMENT OF INCOME
(in thousands of Euro)
12.31.2005
12.31.2004
(excluding IAS 32, 39 and IFRS 4)
10.
20.
30.
40.
50.
60.
70.
80.
90.
100.
110.
120.
130.
140.
150.
160.
170.
180.
190.
200.
210.
220.
230.
240.
250.
260.
270.
280.
290.
300.
320.
330.
Interest income and similar revenues
Interest expense and similar charges
Net interest income
Fee and commission income
Fee and commission expense
Net fee and commission income
Dividend and similar income
Net trading income
Net hedging gains (losses)
Gains (losses) on disposal or repurchase of:
a) loans and advances
b) financial assets available for sale
d) financial liabilities
Net change in financial assets and liabilities at fair value
Net interest and other banking income
Net impairment adjustments to:
a) loans and advances
b) financial assets available for sale
d) other financial transactions
Net income from financial activities
Net premium income
Other insurance income (charges)
Net income from financial and insurance activities
Administrative costs:
a) payroll
b) Other administrative costs
Net provisions for risks and charges
Net adjustments to property, plant and equipment
Net adjustments to intangible assets
Other operating charges/income
Operating costs
Share of profit (loss) of equity investments
Net gains (losses) arising on fair value adjustments to
property, plant and equipment and intangible assets
Adjustments to goodwill
Gains (losses) on disposal of investments
Profit (loss) from current operations before tax
Income taxes on current operations
Profit (loss) from current operations after tax
Net income (loss) for the year
Minority interests
756,038
(314,288)
441,750
293,510
(39,097)
254,413
21,283
65,353
(506)
7,247
2
5,617
1,628
608,822
(225,207)
383,615
247,093
(22,616)
224,477
25,156
47,988
–
227
4
223
–
629
790,169
(102,439)
(89,022)
(12,718)
(699)
(1)
681,462
(62,473)
(62,051)
(160)
(262)
687,730
340,414
(341,917)
686,227
(509,907)
(293,693)
(216,214)
340. Net income (loss) for the year pertaining to the parent bank
40
618,989
291,100
(283,476)
626,613
(474,238)
(268,996)
(205,242)
(12,051)
(15,365)
(4,809)
55,942
(486,190)
6,554
(23,428)
(20,900)
(2,271)
70,507
(450,330)
4,343
409
(2,572)
596
205,024
(74,114)
130,910
130,910
(5,140)
1,404
–
3,509
185,539
(63,783)
121,756
121,756
(4,100)
125,770
117,656
CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY
AL 31.12.2004
Share capital:
a) ordinary shares
b) Other shares
Share premium
Reserves:
a) from earnings
b) other
Valuation reserves:
a) available for sale
b) cash flow hedges
c) other
– property, plant and equipment
– special revaluation laws
Balance at Balance at
31/12/2003 31/12/2003
Group
Minority
interests
Changes to Balance at Balance at
opening 01/01/2004 01/01/2004
balances
Group
Minority
interests
154,320 21,784
154,320 21,784
–
–
– 154,320 21,784
– 154,320 21,784
–
–
–
–
–
–
–
–
–
– 1,070,554
3,148
–
154,987 19,678 50,765 202,925 22,505
113,142 19,678
– 113,142 19,678
41,845
– 50,765 89,783 2,827
1,070,554
3,148
46,298 3,478 128,024 167,938
–
–
–
–
–
–
–
–
46,298 3,478 128,024 167,938
– 128,024 121,640 6,384
46,298 3,478
– 46,298
Allocation of prior year results
Group Reserves - Dividends
reserves
Minority
and other
interests allocations
Changes in the year
Equity transactions
Purchase Extraordinary
Change
of treasury distribution
in equity
shares of dividends instruments
Minority
interests
Changes
in reserves
Minority
interests
Issue of
new shares
Group
–
–
–
–
–
–
–
–
–
182
182
–
155
155
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– 154,502 21,939
– 154,502 21,939
–
–
–
–
–
–
–
3,504
619
–
–
–
–
–
–
–
– 1,074,058
–
–
–
682
682
–
(326)
(326)
–
–
–
–
–
–
–
(1)
(1)
–
122
122
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– 202,598 23,309
– 112,815 20,482
– 89,783 2,827
9,862
–
–
9,862
–
3,478
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
18
–
–
18
–
18
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– 167,938
–
–
–
–
–
–
–
– 167,938
– 121,640 6,384
–
– 46,298
Issue of Purchase
new shares of treasury
Minority
shares
interests
Group
Derivatives
on treasury
shares
Net income Net income
Stock
(loss)
(loss)
options
for 2004
for 2004
Group
Minority
interests
Equity at
31/12/2004
Group
Minority
interests
Changes
in reserves
Group
3,767
9,880
–
–
9,880
3,496
Equity instruments
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Treasury shares
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
49,368
2,669
– 49,368
2,669
–
(682) (51,355)
–
–
–
–
–
–
–
–
–
– 117,656
4,101 117,656
4,101
1,475,527 50,757 178,789 1,645,105 59,968
–
– (51,681)
–
18
3,685
896
–
–
–
–
–
– 117,656
4,101 1,716,752 62,996
Net income (loss) for the year
Equity
Changes in reserves - Minority interests relating to “Share capital” reflects transactions in the share capital of subsidiary companies.
42
43
CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY
AL 31.12.2005
Balance at Balance at
31/12/2004 31/12/2004
Group
Minority
interests
Changes to Balance at Balance at
opening 01/01/2005 01/01/2005
balances
Group
Minority
interests
154,502 21,939
154,502 21,939
–
–
– 154,502 21,939
– 154,502 21,939
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– 29,315
– 29,315
–
–
1,396
1,396
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– 183,817 23,335
– 183,817 23,335
–
–
–
– 1,074,058
–
–
–
–
– 469,069
197
–
–
–
–
–
–
–
– 1,543,127
Reserves:
a) from earnings
b) other
202,598 23,309 (94,097) 111,252 20,558 66,833
112,815 20,482
– 112,815 20,482 31,212
89,783 2,827 (94,097) (1,563)
76 35,621
1,350
1,350
–
900
900
–
–
–
–
–
–
–
124
–
124
1,409
1,401
8
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– 179,109 23,317
– 144,927 23,233
– 34,182
84
Valuation reserves:
a) available for sale
b) cash flow hedges
c) other
– property, plant and equipment
– special revaluation laws
167,938
–
–
167,938
121,640
46,298
9,880 (7,039) 161,055
– (7,039) (6,883)
–
–
–
9,880
– 167,938
6,384
– 121,640
3,496
– 46,298
9,724
(156)
–
9,880
6,384
3,496
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
70,640
70,640
–
–
–
–
33
(5)
–
38
22
16
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
231,695
63,757
–
167,938
121,640
46,298
9,757
(161)
–
9,918
6,406
3,512
Equity instruments
–
– 12,280 12,280
–
–
–
–
(226)
–
–
–
–
–
–
–
–
–
–
– 12,054
–
Treasury shares
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
117,656
4,101
4,101 (66,833) (1,350) (53,574)
–
–
–
–
–
–
–
–
–
– 125,770
5,140 125,770
5,140
33 498,508
3,002
–
–
–
–
–
– 125,770
5,140 2,275,572 65,513
Share capital:
a) ordinary shares
b) Other shares
Share premium
Net income (loss) for the year
Equity
1,074,058
3,767
–
–
– 117,656
3,767
1,716,752 62,996 (88,856) 1,630,803 60,089
Allocation of prior year results
Group Reserves - Dividends
reserves
Minority
and other
interests allocations
–
– (52,674)
Changes
in reserves
Group
70,414
Changes
in reserves
Minority
interests
Issue of
new shares
Group
Issue of Purchase
new shares of treasury
Minority
shares
interests
Group
Changes in the year
Equity transactions
Purchase Extraordinary
Change
of treasury distribution
in equity
shares of dividends instruments
Minority
interests
Changes in reserves - Minority interests relating to “Share capital” reflects transactions in the share capital of subsidiary companies.
44
45
Derivatives
on treasury
shares
Net income Net income
Stock
(loss)
(loss)
options
for 2005
for 2005
Group
Minority
interests
Equity at
31/12/2005
Group
Minority
interests
3,964
CONSOLIDATED CASH FLOW STATEMENT AT 31.12.2005
(in thousands of Euro)
A. OPERATING ACTIVITIES
31/12/2005
1. Operations
374,782
– Interest income collected (+)
– Interest expense paid (-)
– Dividend and similar income
– Net fee and commission income (+/-)
– Payroll costs (-)
– Net premium income (+)
– Other insurance income (charges) (+/-)
– Other costs (-)
– Other revenues (+)
– Taxation (-)
– profit (loss) after tax on non-current assets held for sale (+/-)
756,038
(314,288)
21,283
254,413
(264,873)
340,414
(166,977)
(222,039)
70,594
(99,783)
–
2. Liquidity generated/absorbed by financial assets
(4,021,386)
– Financial assets held for trading
– Financial assets at fair value
– Financial assets available for sale
– Loans and advances to customers
– Loans and advances to banks: demand
– Loans and advances to banks: other receivables
– Other assets
(21,627)
(124,466)
(355,838)
(2,990,591)
(390,618)
(158,420)
20,174
3. Liquidity generated/absorbed by financial liabilities
3,266,706
– Deposits from banks: demand
– Deposits from banks: other payables
– Due to customers
– Debt securities in issue
– Financial liabilities held for trading
– Financial liabilities at fair value
– Other liabilities
107,969
673,156
1,089,526
667,102
323,432
282,695
122,826
Net liquidity generated/absorbed by operating activities
46
(379,898)
B. INVESTING ACTIVITIES
1. Liquidity generated by
12,896
– Disposal of equity investments
– Dividends collected on equity investments
– Disposal/redemption of financial assets held to maturity
– Disposal of property, plant and equipment
– Disposal of intangible assets
– Disposal of subsidiary companies and business divisions
2. Liquidity absorbed by
700
–
–
11,862
334
–
(56,661)
– Purchase of equity investments
– Purchase of financial assets held to maturity
– Purchase of property, plant and equipment
– Purchase of intangible assets
– Purchase of subsidiary companies and business divisions
Net liquidity generated/absorbed by investing activities
(9,597)
(23,735)
(17,093)
(6,236)
–
(43,765)
C. FUNDING ACTIVITIES
– Issue/purchase of treasury shares
– Issue/purchase of equity instruments
– Distribution of dividends and other purposes
(48,925)
Net liquidity generated/absorbed by funding activities
440,329
NET LIQUIDITY GENERATED/ABSORBED IN THE YEAR
489,254
16,666
RECONCILIATION
Captions
31/12/2005
Cash and cash equivalents at the beginning of the year
Net liquidity generated/absorbed in the year
125,484
16,666
Cash and cash equivalents: effect of changes in exchange rates
Cash and cash equivalents at the end of the year
–
142,150
The consolidated statement of cash flows presented above, prepared using the “direct” method
envisaged by IAS 7, reports the “cash flows” from operating, investing and financing activities in
2005 alone since, making an election allowed by para. 36A of IFRS 1, the Group has decided
not to present comparative information regarding the financial instruments covered by IAS 32
and 39.
For completeness, the consolidated statement of cash flows for 2004 is presented below, based
on financial information prepared in accordance with Decree 87/92.
47
CONSOLIDATED CASH FLOW STATEMENT AT 31.12.2004
(in thousands of Euro)
Per completezza di informazioni si riporta di seguito il rendiconto finanziario consolidato relativo all’esercizio 2004 predisposto sulla base dei valori di bilancio conformi alle disposizioni di cui
all’ex D.Lgs. n. 87/92.
Application of funds:
31/12/04
a) Application of funds generated from operations:
– Dividends distributed by the Parent Bank
– Use of reserves
– Writebacks to securities
– Writebacks to equity investments
– Use of the reserve for possible loan losses
– Other changes in the reserve for possible loan losses
– Use of provisions for severance indemnities
– Other changes in the provision for severance indemnities
– Use of provision for pensions
– Use of the provision for taxation
– Other changes in the provision for taxation
– Use of other provisions for risks and charges
– Other changes in other provisions for risks and charges
– Use of the reserve for general banking risks
b) Increase in funds invested:
– Cash and cash equivalents
– Due from banks
– Loans to customers
– Securities purchased
– Other increases in securities
– Equity investments purchased
– Other increases in equity investments
– Goodwill arising on consolidation
– Goodwill arising on application of the equity method
– Intangible fixed assets purchased
– Other increases in intangible fixed assets
– Tangible fixed assets purchased
– Other increases in tangible fixed assets
– Other assets
– Accrued income and prepaid expenses
c) Decrease in deposits:
– Public funds administered
– Other liabilities
233,263
50,419
30,019
5,675
57,688
3,957
116
7,997
3,910
3,100
41,160
11,939
16,400
883
–
8,125,556
23,988
112,729
1,561,588
6,066,093
52,239
21,527
15,499
–
953
76,518
1,446
36,812
3,400
111,020
41,744
80,771
–
80,771
Total application of funds
8,439,590
48
Application of funds:
31/12/04
a) Funds generated from operations:
– Net income for the year
– Net adjustments to loans
– Net adjustments to securities
– Net adjustments to equity investments
– Net adjustments to tangible and intangible fixed assets
– Provision to the reserve for possible loan losses
– Other changes in the reserve for possible loan losses
– Provision for severance indemnities
– Other changes to the provision for severance indemnities
– Provision for pensions
– Other changes in the provision for pensions
– Provisions for taxation
– Other changes in the provision for taxation
– Other provisions for risks and charges
– Other changes in other provisions for risks and charges
– Provision to the reserve for general banking risks
– Increases in capital
– Additional paid-in capital
– Reserves
406,746
67,683
20,164
–
–
117,077
–
–
13,627
3,713
3,918
–
79,442
4,088
24,042
823
41,500
182
3,504
26,983
b) Increases in deposits:
– Deposits from banks
– Due to customers
– Public funds administered
– Securities issued
– Accrued expenses and deferred income
– Subordinated liabilities
– Minority interests
2,016,613
122,803
880,783
79
928,720
19,119
63,099
2,010
c) Decrease in funds invested:
– Deposits from banks
– Sale of securities
– Other decreases in securities
– Disposal of equity investments
– Other decreases in equity investments
– Goodwill arising on consolidation
– Goodwill arising on application of the equity method
– Disposal of intangible fixed assets
– Other decreases in intangible fixed assets
– Disposal of tangible fixed assets
– Other decreases in tangible fixed assets
– Treasury stock
6,016,231
–
5,889,132
77,248
2,991
23,706
15,007
–
59
664
7,028
396
–
Total source of funds
8,439,590
49
EXPLANATORY NOTES
Form and content of the consolidated financial statements
Part
A – Accounting policies
Part
B – Information on the consolidated balance sheet
Part
C – Information on the consolidated income statement
Part
D – Segment information
Part
E – Information on risks and related hedging policy
Part
F – Information on consolidated stockholders’ equity
Part
G – Combinations of companies and businesses
Part
H – Related-party transactions
Part
I – Payment agreements based on own capital instruments
51
PART A
ACCOUNTING POLICIES
A. 1 – GENERAL INFORMATION
Section 1 – Declaration of conformity with IFRS
The consolidated financial statements consist of the balance sheet, the income statement, the
statement of changes in stockholders’ equity, the statement of cash flows and these explanatory
notes, accompanied by the report of the Board of Directors, have been prepared in accordance
with the international accounting standards IAS/IFRS adopted into Italian law pursuant to recent EC Regulations, commencing from EC Regulation 1725/03.
Section 2 – Basis of preparation
The consolidated financial statements are prepared on a going concern basis and with reference
to the general criteria listed below:
– true and fair view;
– matching principle;
– comparability principle;
– no-offset principle, except where specifically allowed;
– principle of substance over form;
– prudence principle.
The consolidated financial statements have been prepared in accordance with the formats and
rules contained in Bank of Italy Circular 262 dated 22 December 2005. Additional information,
considered necessary to give a true and fair view of the financial statements, has also been provided even if not specifically required by law.
The amounts contained in the balance sheet, the income statement, the statement of changes in
stockholders’ equity, the statement of cash flows and these explanatory notes are, except where
indicated otherwise, stated in thousands of euro. The roundings have been made in accordance
with the related regulations.
Section 3 – Scope of consolidation and methodology
The carrying value of investments consolidated on a line-by-line basis, including their assets and
liabilities, off-balance sheet transactions, as well as income and expenses, is eliminated against
the related interest in their stockholders’ equity at the time they were acquired or consolidated
for the first time. Any differences are allocated, as far as possible, to the assets and liabilities of
the consolidated companies concerned and residual amounts are reported as “Goodwill”.
Investments in joint ventures and associates are valued using the equity method, adjusting their
carrying values to reflect the Group’s interest in the stockholders’ equity reported in their financial statements at the time they were acquired or consolidated for the first time. Differences
emerging at the time investments are first consolidated, where not attributable to specific asset
and liability captions, are allocated to “Goodwill”. Subsequent changes are allocated to equity
investments, with the matching entry to the “Income (loss) from investments” caption of the income statement.
Equity investments classified as “non-current assets and groups of assets available for sale” in
compliance with IFRS 5, are carried at the lower of their book or fair value net of selling costs.
52
Dividends distributed within the Group are reversed back to reserves since the related income
was recognized by the individual companies in prior years.
Receivables, payables, income and expenses arising from transactions between Group companies are eliminated, except where insignificant.
The balance sheets and statements of income used for consolidation purposes are those approved by the Boards of Directors of the individual companies as of 31 December 2005. The
financial statements prepared in accordance with IAS/IFRS were used directly while, for companies that prepared their financial statements under Italian GAAP, balance sheets and income statements were prepared in accordance with the accounting policies adopted by the
Parent Bank.
Investments in companies carried at equity are stated with reference to the stockholders’ equity
reported in their 2004 financial statements, if their financial statements for the current year have
not yet been approved.
53
1. Equity investments in subsidiary companies and joint ventures
Name
Location
Nature of holding
(1)
Investment details
Holder
% interest held
VICENZA
Parent Bank
PRATO
1
B. Pop. Vicenza
79.00
PALERMO
1
B. Pop. Vicenza
98.74
VICENZA
1
B. Pop. Vicenza
100.00
DUBLIN
1
B. Pop. Vicenza
99.99
VICENZA
1
B. Pop. Vicenza
80.00
VICENZA
1 Nordest Merchant
100.00
DUBLIN
1
B. Pop. Vicenza
100.00
VICENZA
1
B. Pop. Vicenza
B. Nuova
99.00
1.00
VICENZA
1
B. Pop. Vicenza
100.00
VICENZA
1
B. Pop. Vicenza
100.00
VICENZA
1
B. Pop. Vicenza
100.00
PALERMO
1
B. Pop. Vicenza
B. Nuova
10.00
90.00
A. COMPANIES
A.1 COMPANIES CONSOLIDATED LINE-BY-LINE
1. BANCA POPOLARE DI VICENZA
Share capital Euro 183,816,738
in shares of par value Euro 3
2. CASSA DI RISPARMIO DI PRATO SpA
Share capital Euro 103,300,000
in shares of par value Euro 51.65
3. BANCA NUOVA SpA
Share capital Euro 28,542,876
in shares of par value Euro 3
4. IMFurnitureARE STAMPA SpA
Share capital Euro 125,000,000
in shares of par value Euro 500
5. BPV FINANCE INTERNATIONAL PLC
Share capital Euro 103,291
in shares of par value Euro 1
6. NORDEST MERCHANT SpA
Share capital Euro 30,977,734
in shares of par value Euro 0.737565
7. NEM SGR SpA
Share capital Euro 5,000,000
in shares of par value Euro 1
8. VICENZA LIFE LTD
Share capital Euro 12,696,982
in shares of par value Euro 20
9. BERICA VITA SpA
Share capital Euro 16,000,000
in shares of par value Euro 10
10. B.P.VI FONDI SGR SpA
Share capital Euro 10,000,000
in shares of par value Euro 5
11. INFORMATICA VICENTINA SpA
Share capital Euro 100,000
in shares of par value Euro 50
12. SERVIZI BANCARI SpA
Share capital Euro 250,000
in shares of par value Euro 1
13. PRESTINUOVA SpA
Share capital Euro 8,000,000
in shares of par value Euro 1
A.2 COMPANIES CONSOLIDATED ON A PROPORTIONAL BASIS
Key:
(1) Nature of holding:
1 = majority of voting rights at ordinary stockholders’ meeting
2 = dominant influence at ordinary stockholders’ meeting
3 = agreements with other stockholders
4 = other forms of control
5 = coordinated control under art. 26.1 of Decree 87/92
6 = coordinated control under art. 26.2 of Decree 87/92
7 = joint control
54
As allowed by para. 38 of IAS 31, the investment in the Linea Group has been valued using the
equity method since it is jointly controlled by the Parent Bank.
Section 4 – Subsequent events
The principal events that have taken place after the end of the year are summarized below.
In order to finance the growth in lending and optimize funding, especially given the strong
growth in residential mortgages, on 24 January 2006 the Group announced the securitization of
another portfolio of residential mortgages, referred to as Berica 6 RMBS, totaling more than 1.4
billion euro, arranged by Banca Popolare di Vicenza (997 million euro), Banca Nuova (240 million euro) and Cariprato (191 million euro). This is the sixth securitization arranged by the
BPVI Group, involving the securitization of loans totaling about 3.7 billion euro over the past 5
years or so. Berica 6 was well received in European markets due to the excellent quality of the
securitized portfolio, the proven reliability of the three banks within the BPVI Group and the
improvements made to the structuring of this transaction. This was demonstrated by the exceptional level of demand in the first few days of placement, enabling the operation to benefit from
extremely low costs with respect to similar transactions carried out in Europe.
Given the failure of the public offer presented by Unipol, an insurance company, for the purchase of Banca Nazionale del Lavoro, the stockholders’ agreement signed on 18 July 2005 between the Parent Bank and Unipol, regarding the shares in BNL held by Banca Popolare di Vicenza, was terminated by mutual consent in February 2006. This agreement granted Unipol a
call option over the BNL shares held by Banca Popolare di Vicenza and included a lock up preventing the Parent Bank from transferring these shares prior to the outcome of the takeover bid
made by Unipol.
Again in February 2006, the Parent Bank signed a contract with BNP Paribas S.A. under which
the parties respectively agreed to sell and purchase part of the Parent Bank’s holding in BNL
(75,000,000 ordinary shares) at a price of 2.925 euro per share. The completion of this transaction is subject to the outcome by 30 June 2006 of certain future events, including the receipt of
authorizations from the Bank of Italy and the Antitrust Authority, as well as from all other competent authorities including the Bank of France. By selling only a part of its holding in BNL, the
Parent Bank has prudently retained a significant number to service the bond that is convertible
into BNL shares “Exchangeable Notes due 2009”.
As part of activity to strengthen the Parent Bank’s position in the field of consumer credit, a further 15.76% interest in the share capital of Linea SpA was purchased in February 2006 following the exit of Cofinoga, an industrial partner (linked with the Lafayette Group and the BNP
Paribas Group). This transaction, matched at the same time by Banco Popolare di Verona e Novara which acquired an identical interest from this French shareholder, involved investment by
the Parent Bank of 47.3 million euro to raise its holding from 32.20% to 47.96%.
On 16 February 2006, the Board of Directors of the Parent Bank considered the proposal for
strategic and operational collaboration presented by Banca Popolare di Intra and granted a joint
exploratory mandate to the Chairman and General Management to evaluate with the counterpart possible alternatives to the proposals suggested by Banca Popolare di Intra. The Board of
Directors of the Parent Bank has subordinated all decisions regarding this proposed strategic
collaboration to the outcome of these contacts, establishing at the same time that no action will
be taken unless agreed with the counterpart.
55
Lastly, in view of the recent stockmarket prices for shares in Banca Italease, the call option
granted in the past over the Parent Bank’s entire holding was exercised in March 2006, realizing
a capital gain of 25.4 million euro.
Section 5 – Other matters
As discussed in the section of the Report on Group Operations dedicated to the transition to international accounting standards, the transition date selected for the first-time adoption of IAS
32 and 39 and IFRS 4 was 1/1/2005, as allowed by para. 36A of IFRS 1.
Accordingly, the explanatory notes do not provide comparative information for 2004 with regard to the application of these accounting standards. To the extent possible and having regard
for the decisions taken on first-time adoption (FTA), the financial instruments held at
31/12/2004 and the related economic effects have been reclassified into the various categories
envisaged by IAS 39, in the balance sheet, the income statement, the statement of cash flows and
certain tables within the explanatory notes, even though they have still been valued in the previous manner, in accordance with Decree 87/92.
Information on the Group’s adoption of IAS/IFRS and the effects of FTA on the economic and
financial position, prepared in accordance with IFRS 1, is provided in a special attachment
which is an integral part of these explanatory notes.
The consolidated financial statements have been audited by KPMG SpA, an independent firm
of auditors.
56
A.2 – PART RELATING TO THE PRINCIPAL FINANCIAL STATEMENT
CAPTIONS
This section describes the accounting policies adopted for the preparation of the consolidated financial statements as of 31 December 2005.
ASSETS
1. Financial assets held for trading
Classification
This caption comprises the financial statements held for trading in the short term; specifically:
• debt securities, whether listed or unlisted, held for trading;
• listed equity instruments held for trading;
• unlisted equity instruments held for trading, but only if their fair value can be determined on
a reliable basis;
• asset-backed debt securities (ABS), “senior” or “mezzanine”, issued by special-purpose vehicles (SPV) as part of securitizations by the Parent Bank or by third parties;
• structured securities;
• units in mutual funds and sicavs held for trading;
• derivative contracts with a positive fair value at the reporting date, except for contracts that
are designated as effective hedging instruments; if the fair value of a derivative contract subsequently becomes negative it is recorded as a financial liability.
Derivative contracts include “implicit” derivatives consisting of the derivative component embedded in a primary financial instrument, known as the “host contract”, and forward transactions in currencies, securities, goods and precious metals. An implicit derivative is recognized
separately from the underlying contract when all of the following conditions are satisfied:
1. its economic and risk characteristics are not closely correlated with those of the “host” instrument;
2. the separated embedded instrument meets the definition of a derivative;
3. the hybrid instrument is not carried at fair value through the income statement;
and the structured instrument (host contract plus implicit derivative) is not classified in this category or among the “financial assets at fair value”.
Financial instruments are designated as financial assets held for trading upon initial accounting
recognition. They cannot be reclassified subsequently.
Recognition
The initial recognition of financial assets held for trading takes place: on the settlement date for
debt securities, equity instruments and units in mutual funds and sicavs; on the subscription
date for derivative contracts.
Financial assets held for trading are initially recognized at their fair value and the transaction
costs and/or income directly attributable to them are not recognized. The fair value of instruments acquired on market terms is represented by their purchase cost.
57
Measurement and recognition of components affecting the income statement
Subsequent to initial recognition, financial assets held for trading are stated at fair value through
the income statement. IAS 39 defines fair value as “the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arms’-length transaction”. Fair value is determined as follows:
– the “quoted market price” of financial instruments traded in an “active market”;
– the prices struck in over-the-counter markets or, otherwise, using generally accepted internal
pricing models, if the financial instruments are not traded in an “active market”.
If the fair value of financial assets cannot be determined on a reliable basis, they are stated
at cost.
Gains and losses realized on sale or redemption and unrealized gains and losses deriving from
changes in the fair value of financial assets held for trading are classified in the “net trading profit (loss)” caption of the income statement, together with the effect of measuring foreign currency
assets and liabilities.
Derecognition
Financial assets held for trading are derecognized when the contractual rights over the related
cash flows expire or when the financial asset is transferred together with substantially all the
contractual risks and benefits associated with its ownership.
2. Financial assets at fair value
Classification
This caption comprises the assets or groups of assets designated at fair value through the income statement, under the fair-value option (FVO) envisaged by IAS 39. In particular, the
FVO is used when it eliminates or significantly reduces accounting imbalances deriving from
the inconsistent recognition of financial instruments that are correlated (natural hedges)) or
covered by derivative contracts which, due to difficulties and complexities, cannot be recognised as hedges. The FVO is also used in the presence of an implicit derivative that meets certain conditions. This avoids separating it from the host instrument by stating the entire financial instrument at fair value.
Recognition, measurement, derecognition and recording of components affecting the income statement
The recognition, measurement, derecognition and recording of the components affecting the income statement of financial assets at fair value are discussed above in relation to “financial assets
held for trading”.
58
3. Financial assets held to maturity
Classification
This category comprises non-derivative debt instruments quoted in “active markets”, with fixed
maturities and fixed or determinable payments, which the Group intends and is able to hold until maturity. These include debt securities with maturities/residual lives of not less than 24
months which comply with the quantitative limits established at Group level, as authorized by
the Board of Directors of the Parent Bank.
Recognition
The initial recognition of financial assets held to maturity takes place on the settlement date. The
financial assets classified in this category are recorded at fair value upon initial recognition, as
uplifted by any directly-attributable acquisition costs.
Measurement and recognition of components affecting the income statement
Subsequent to initial recognition, financial assets held to maturity are measured at amortised
cost, using the effective interest method.
Profits and losses relating to these assets held to maturity are recorded in the income statement
at the time of derecognition.
An impairment test is carried out at the reporting date to check for objective evidence of any
loss in value. Any losses identified are charged to the income statement. If the reasons for such
losses cease to apply due to events subsequent to the write-down, the original amounts are reinstated by crediting the related write-backs to the income statement.
The interest income on these financial assets is determined using the effective interest method.
Derecognition
Financial assets held to maturity are derecognized when the contractual rights over the related
cash flows expire or when the financial asset is transferred together with substantially all the
contractual risks and benefits associated with its ownership.
4. Available-for-sale financial assets
Classification
This caption comprises the non-derivative financial assets that are not classified in the foregoing
categories or as “receivables”. Accordingly, this is a residual category that includes:
• unlisted equity instruments;
• securities that guarantee transactions arranged with third parties, if not classified elsewhere;
• units in mutual funds and sicavs, unless originally attributed to the portfolio of financial assets
held for trading;
• “junior” asset-backed debt securities (ABS) issued by SPVs as part of securitizations by the
Parent Bank or by third parties;
• equity investments that do not represent interests in subsidiaries, associates or joint ventures;
• other debt and equity instruments that cannot be classified into the above categories.
59
Recognition
The initial recognition of available-for-sale (AFS) financial assets takes place on the settlement
date. The financial assets classified in this category are recorded at fair value upon initial recognition, as uplifted by any directly-attributable acquisition costs.
Measurement and recognition of components affecting the income statement
Subsequent to initial recognition, AFS financial assets are stated at fair value; the profits and
losses deriving from any changes in fair value are recorded in a specific equity reserve until the
financial assets concerned are derecognized, or transferred or a permanent impairment of value
is recognized.
If an AFS financial asset becomes permanently impaired, the accumulated unrealized losses deferred to equity are released to the “impairment adjustment of AFS financial assets” caption of
the income statement. Write-backs of AFS financial instruments are credited to the income
statement if they are debt securities or to stockholders’ equity if they are equity instruments.
Write-backs do not exceed the amortized cost that the instrument would have had in the absence of earlier write-downs.
Fair value is determined on the basis described in relation to financial assets held for trading.
If the fair value of financial assets cannot be determined on a reliable basis, they are stated
at cost.
The interest income on these financial assets is determined using the effective interest method.
Any exchange gains or losses on AFS financial assets are recorded in the income statement if
they relate to monetary items (e.g. debt securities) and as part of stockholders’ equity if they relate to non-monetary items (e.g. equity instruments).
Derecognition
AFS financial assets are derecognized when the contractual rights over the related cash flows expire or when the financial asset is transferred together with substantially all the contractual risks
and benefits associated with its ownership.
60
5. Loans to customers
Classification
Loans to customers include short and long-term finance granted directly to customers or purchased from third parties, which is repayable on fixed or determinable dates and is not quoted
in an active market.
This category also includes unlisted debt securities acquired on initial placement, where the
lending element prevails over the investment element, and the purchase essentially represents
the granting of a loan.
Recognition
The initial recognition of a loan takes place on the grant date or, in the case of debt securities, on
the settlement date, with reference to the fair value of the financial instrument. This is the
amount paid out, or the subscription price, including the directly-related and determinable costs
and commissions applying from the start of the transaction.
Costs with the above characteristics are excluded if they are reimbursable by the borrower or
represent normal internal administrative costs.
Measurement and recognition of components affecting the income statement
Subsequent to initial recognition, loans to customers are measured at amortized cost. This is
their initially-recorded value as decreased/increased by repayments of principal, writedowns/write-backs and the amortization – determined using the effective interest method – of
the difference between the amount paid out and that repayable on maturity, which typically represents costs/income directly attributable to the individual loans.
The effective interest rate is the rate that discounts the flow of estimated future payments over
the expected duration of the loan so as to obtain exactly the net book value at the time of initial
recognition, which includes directly-related transaction costs and all fees paid or received between the contracting parties. This financial method of accounting distributes the economic effect of costs/income over the expected residual life of each loan.
Estimates of the flows and the contractual duration of the loan take account of all contractual
clauses that could influence the amounts and due dates (such as early repayments and the various options that can be exercised), but without considering any expected losses on the loan. The
initially-recognized effective interest rate (the “original” rate) is always used to discount expected cash flows and to determine amortized cost subsequent to initial recognition.
The amortized cost method is not applied to short-term loans, since the discounting effect
would be negligible, and these are therefore stated at historical cost. The same measurement criterion is applied to loans without a fixed repayment date or which are repayable upon demand.
In addition, an analysis is performed to identify any problem loans for which there is objective
evidence of possible impairment. This category includes loans classified as “non-performing”,
“watchlist”, “restructured” or “overdue or overdrawn for more than 180 days”, as defined by
the supervisory regulations.
Non-performing loans are evaluated on a case-by-case basis, regardless of the amounts involved.
Watchlist and restructured loans in excess of 150,000 euro are assessed on a case-by-case basis,
while the remaining positions are evaluated on an overall basis, grouping them into categories
with similar characteristics in terms of lending risk, considering the technical form of the loan,
61
the counterpart and the type of guarantees given.
The adjustment to the value of each loan represents the difference between its amortized
cost (or historical cost for short-term and demand loans) at the time of measurement and
the discounted value of the related future cash flows, determined using the original effective
interest rate.
Key elements in determining the present value of future cash flows include the estimated realizable value of any available guarantees, the expected timing of recoveries and the forecast
loan-recovery costs. Cash flows relating to loans due to be recovered in the short term are not
discounted.
In particular, the approach taken to determining the recoverable value of non-performing loans
depends on their amount:
• up to 25,000 euro, the positions are analyzed case-by-case but are not discounted, since they
are frequently not taken to court, but sold after the usual attempts to obtain recovery on an
amicable basis - these loans generally remain in this category for not more than 12/18 months,
representing the short term;
• from 25,000 euro to 150,000 euro, the positions are analyzed on a case-by-case basis to estimate the amount recoverable, which is discounted over the average recovery period, as determined with reference to historical-statistical information;
• amounts exceeding 150,000 euro are analyzed on a case-by-case basis to estimate the amount
recoverable, which is discounted over the likely recovery period, as determined by the responsible business functions;
Watchlist and restructured loans exceeding 150,000 euro are analyzed on a case-by-case basis to
estimate the amount recoverable, which is discounted over the likely recovery period, as determined by the responsible business functions.
Watchlist and restructured loans falling below the above threshold, and higher amounts that are
not subject to specific lending risk, are assessed on an overall basis that considers the estimated
future cash flows, as adjusted for the expected losses determined using probability of default
(PD) and loss given default (LGD) parameters. The resulting cash flows are discounted using
the original effective rate for each loan outstanding at the reporting date.
Loans overdue and/or overdrawn for more than 180 days are evaluated on an overall basis that
considers the estimated future cash flows, as adjusted for the expected losses determined using
probability of default (PD) and loss given default (LGD) parameters. With regard to these financial statements, the historical information available is insufficient to model this phenomenon
and, accordingly, suitable PD and LGD parameters have been applied to reflect the higher risk
associated with the above loans with respect to “performing” loans.
Loans for which no objective evidence of loss has been individually identified, i.e. performing
loans, including those to residents in countries at risk, are subjected to impairment testing on an
overall basis. This assessment is performed by grouping loans into categories that reflect a similar degree of lending risk. The related loss percentages are then estimated with reference to historical information, in order to measure the inherent loss for each category of loan. The estimated future cash flows are determined using probability of default (PD) and loss given default
(LGD) parameters and the resulting flows are discounted using the effective rate for each loan.
The write-down is represented by the difference between the amortized cost, or historical cost,
of the loans in each category and the corresponding estimated recoverable amounts.
The provision made for an impaired loan can only be reversed if the credit quality has im62
proved to the extent that timely recovery of the principal and interest, with respect to the
original terms for the loan contract, is reasonably certain, or if the amount actually recovered
exceeds the amount estimated previously. Write-backs include the positive effect of discounting adjustments made due to the progressive reduction in the estimated time required to recover the related loans.
No write-downs are recorded in relation to loans represented by repurchase agreements, since
they are not subject to lending risk, or to loans to non-profit organizations and local and public
administrations.
Adjustments, net of previous provisions and the partial or total recovery of amounts previously
written down, are recorded in the “net adjustments for the impairment of loans” caption of the
income statement.
Derecognition
Loans are derecognized as assets when they are deemed to be unrecoverable or are transferred
together with substantially all the related risks and benefits.
6. Due from banks
Classification
This caption comprises unlisted financial assets due from banks (current accounts, guarantee deposits, debt securities, etc.) that have been classified in the loan portfolio.
The balance includes amounts due from Central Banks, other than unrestricted deposits (e.g.
the compulsory reserve).
Reference is made to the loans to customers caption for information on the recognition, measurement, derecognition and recording of these amounts.
7. Hedging derivatives
Classification
This caption reports the derivative contracts designated as effective hedging instruments which
have a positive fair value at the reporting date.
Derivative contracts are intended to neutralize possible losses on certain elements or groups of
elements due to a given risk (e.g. a rise in interest rates), via the generation of profits if the
events associated with that risk should actually occur.
Derivatives not held for hedging purposes are classified as “financial assets held for trading”.
At the time that a hedging derivative is arranged, the Group classifies it as one of the following
types of hedge:
• fair value hedge of a given asset or liability: the objective is to hedge the exposure to changes
in fair value of an item caused by given risks;
63
• cash flow hedge attributable to a particular asset or liability: the objective is to hedge the exposure to changes in the future cash flows associated with an item caused by given risks;
• hedge of the effects of an investment denominated in foreign currency: the objective is to
hedge the risks associated with investing in a foreign operation denominated in foreign
currency.
The derivative instrument is classified as a hedge if it has been formally designated as such,
there is a documented relationship between the hedged instrument and the hedging instrument, and it is effective – prospectively and retrospectively – both at the start of the hedge and
throughout its life.
A hedge is considered effective if the hedging instrument is able to generate a cash flow or a
change in fair value that is consistent with that of the hedged instrument. More precisely, the
hedge is effective when changes in the fair value (or cash flows) of the hedging instrument neutralize the changes in the hedged instrument, deriving from the risk being hedged, within an interval of 80%-125%.
The effectiveness of the hedge is assessed at the start of the hedge and throughout its life and, in
particular, on each reporting date, using:
• prospective tests that justify the adoption of hedge accounting by showing the expected effectiveness of the hedge in future periods;
• retrospective tests that show the effectiveness of the hedge during the reference period.
If the checks do not confirm the effectiveness of the hedge, the hedge accounting described
above is terminated and the related derivative contract is reclassified among the “financial assets
held for trading”.
In addition, transactions are no longer classified as hedges if:
• the hedge created by the derivative ceases;
• the derivative expires, is sold, terminated or exercised;
• the hedged item is sold, expires or is redeemed;
• the hedge no longer meets the criteria to qualify for hedge accounting.
The derivative instruments designated as hedges under Italian GAAP have been almost entirely
reclassified as “financial assets held for trading” on the first-time adoption of IAS/IFRS, since
they represent operational hedges, or to the financial assets at fair value caption, following exercise of the fair value option.
Recognition
The initial recognition of hedging derivatives takes place when their fair value is determined.
Measurement and recognition of components affecting the income statement
Subsequent to initial recording, hedging derivatives are stated at fair value on the basis described below:
• in the case of fair value hedges, changes in the value of the hedged instrument and the hedging instrument are reflected in the income statement, in order to offset effectively changes in
the fair value of the hedged item against the opposite changes in the fair value of the hedging
64
instrument. Any difference, representing the ineffective portion of the hedge, therefore represents the net economic effect of the hedge;
• in the case of cash flow hedges, changes in the fair value of the derivative are recorded in
stockholders’ equity, to the extent that the hedge is effective, and are only released to the income statement when the related cash flows are actually generated by the hedged item. If the
hedge is not effective, changes in the fair value of the hedging contract are recorded in the income statement;
• hedges of investments denominated in foreign currency are recorded in the same way as cash
flow hedges.
Derivatives valued in accordance with the fair value option are stated at fair value through the
income statement.
Hedging instruments only consist of derivative contracts, excluding therefore any internal deals
or other types of financial instrument.
The fair value of derivatives is determined with reference to prices published on regulated
markets or provided by operators, to option pricing models (making assumptions based on
market and economic conditions), or to generally accepted models for the discounting of future cash flows.
Derecognition
Hedging derivatives are derecognized as assets if they are transferred together with substantially
all the related risks and benefits. If the hedge becomes ineffective, the hedge accounting described above ceases and the derivative contract is reclassified among the “financial assets held
for trading”.
8. Equity investments
Classification
This caption comprises the investments in joint ventures and associated companies valued using
the equity method. The other investments in equity instruments held by the Group are classified
in the “financial assets available for sale” caption.
Recognition
Equity investments are valued using the equity method.
Measurement criteria
Changes in the Group’s interest in the stockholders’ equity of company between one accounting
period and another are recorded as “profits/losses on equity investments” with a matching entry
to the “equity investments” account.
65
Derecognition
Equity investments are derecognised on expiry of the contractual rights over the related financial flows, or when the investment is sold with the transfer of essentially all the related risks and
benefits of ownership.
Recognition of components affecting the income statement
Consistent with IAS 18, dividends are recorded when the stockholders’ right to receive them is
established, which is subsequent to the related resolution adopted by the stockholders of the
declaring company.
9. Property, plant and equipment
Classification
This caption comprises the fixed assets held for use in the generation of income, for rent or for
administrative purposes, such as land, business property, investment property, installations, furniture, furnishings and all types of equipment.
Business property is that held for the provision of services or for administrative purposes, while investment property is that owned to earn rental income and/or with a view to capital appreciation.
Property, plant and equipment also includes leasehold improvements, if they can be separated
from the related assets (if these items are expected to generate future benefits, but are not functionally and operationally independent, they are classified as “other assets” and depreciated over
the expected useful life of the improvements or the residual lease period, whichever is shorter).
Amounts paid in advance to acquire and restructure assets not yet used for productive purposes
are capitalized, but not depreciated.
Property, plant and equipment that meets the conditions specified in IFRS 5 are classified as
“non-current assets and groups of assets held for sale”.
Recognition
Property, plant and equipment are initially recorded at cost, including all directly attributable
costs of bringing them to working condition.
Expenditure that improves an asset or increases the future economic benefits expected from the
asset is allocated to the asset concerned and depreciated over its remaining useful life.
Measurement and recognition of components affecting the income statement
Subsequent to initial recognition, property, plant and equipment are stated at cost, net of accumulated depreciation and any impairment write-downs, consistent with the “cost model” described in para. 30 of IAS 16.
Property, plant and equipment are systematically depreciated over their useful lives on a
straight-line basis, except for:
66
• land, whether acquired separately or included in the value of buildings, which is not depreciated since it has an unlimited useful life. With regard to free-standing properties, the value of
the land is separated from the value of the related buildings by internal and/or independent
expert appraisals, unless this information is directly available from the purchase contract;
• works of art, which are not depreciated since they normally have an indefinite useful life and
their value is likely to increase over time;
• investment properties, which are stated at fair value in accordance with IAS 40.
The investment properties covered by IAS 40 are stated at the market value determined by independent appraisals and changes in their fair value are recorded in a specific account within the
income statement.
The depreciation charge for assets acquired during the year is determined on a daily basis from
the time they enter into service. The depreciation charge for assets sold and/or retired during
the year is determined on a daily basis up to the date of disposal and/or retirement.
At each reporting date, if there is evidence that the value of an asset may be impaired, its carrying value is compared with its recoverable value, being either its fair value net of any selling costs
or its value in use, represented by the present value of the future cash flows to be generated by
the asset, whichever is greater. Any adjustments are recorded in the “net adjustments to the value of property, plant and equipment” caption of the income statement.
If the reasons for recognizing an impairment loss cease to apply, the consequent write-back cannot cause the value of the asset to exceed its net book value (after depreciation) had no impairment losses been recognized in prior years.
Derecognition
A fixed asset is derecognized upon disposal or when it is retired from use on a permanent basis
and no economic benefits are expected from its disposal.
10. Intangible assets
Classification
This caption reports non-monetary assets without physical form that have the following characteristics:
• identifiability,
• control over the assets concerned,
• existence of future economic benefits.
If any one of these characteristics is missing, the related purchase or internally-generated cost is
expensed in the year incurred.
Intangible assets include, in particular, applications software used for a number of years and other identifiable intangible assets over which the Group has legal or contractual rights.
This caption also includes goodwill, representing the positive difference between the purchase
cost and the fair value of assets and liabilities acquired as a result of business combinations.
In particular, an intangible asset is recorded as goodwill when the positive difference between
the fair value of the net assets acquired and their purchase cost (including related charges) rep67
resents the ability of the investment to generate future earnings. If this difference is negative
(badwill) or if the goodwill is not justified by the acquired company’s ability to generate future
earnings, the difference is recorded directly in the income statement.
Recognition
Intangible assets are initially recorded at cost, including any directly-related charges.
Measurement criteria
Subsequent to initial recognition, intangible assets are stated at cost, net of accumulated amortization and any impairment losses, in accordance with the “cost model” described in para. 74
of IAS 38.
Intangible assets are amortized systematically each year on a straight-line basis over their estimated useful lives. The amortization charge for assets acquired during the year is determined
on a daily basis from the time they enter into service. The amortization charge for those sold
and/or retired during the year is determined on a daily basis up to the date of disposal and/or
retirement.
Assets with an indefinite useful life, such as goodwill, are not amortized but are subjected to periodic impairment testing of the fairness of their carrying value, as required by IAS 36. Any reductions in value, representing the difference between the recorded value of the asset and its recoverable value, are charged to the “adjustment of goodwill” caption of the income statement.
Derecognition
Intangible assets are eliminated from the balance sheet if no future economic benefits are expected or on disposal.
11. Non-current assets held for sale
Classification
This caption comprises all the non-current assets and groups of assets held for sale pursuant to
IFRS 5, as well as those assets and groups of assets whose book value will principally be recovered through sale rather than via continuous use.
Measurement criteria
These assets are measured at the lower of their carrying value or their fair value, net of selling
costs, except for the following assets which continue to be valued in accordance with the related
accounting policies:
• deferred tax assets;
• assets deriving from employee benefits;
• financial instruments;
• investment property.
68
Recognition of components affecting the income statement
Income (interest income, dividends etc.) and expenses (interest expense, depreciation etc.) relating to “groups of assets” and related liabilities held for sale are classified, net of the related current and deferred taxation, in the “profit (loss) from groups of assets held for sale, net of taxation” caption of the income statement. Income and expenses relating to “individual, non-current
assets” held for sale continue to be recorded in the captions concerned.
69
LIABILITIES AND EQUITY
1. Due to customers, deposits from banks and debt securities in issue
Classification
Due to customers, deposits from banks and debt securities in issue include the various forms of
customer and interbank funding, together with the funds gathered by issuing various types of
bond and certificates of deposit, net of any amounts repurchased by the Bank.
This caption also includes securities which are due at the balance sheet date but have not yet
been redeemed.
Recognition
These financial liabilities are initially recorded on receipt of the amounts collected or on the issue of the debt securities.
They are initially measured at the fair value of the liabilities, usually corresponding to the
amount collected or the issue price, plus any additional costs/proceeds directly attributable to
the individual funding transaction or issue and not reimbursed by the creditor. Internal administrative costs are excluded.
The implicit derivatives embedded in the above financial liabilities are separated and valued in
accordance with IAS 32 and 39.
Measurement criteria
Following initial recognition, the above financial liabilities are stated at amortized cost using the
effective interest method, except that short-term liabilities continue to be stated at nominal value
since the effect of discounting is negligible.
Derecognition
Financial liabilities are derecognized when they expire or are settled. Derecognition also applies
when issued securities are repurchased, even if this acquisition is only temporary. Any differences between the book value of the derecognized liability and the amount paid is recorded in
the “profit/loss from disposal or repurchase” caption of the income statement. If, subsequent to
repurchase, the Bank places its own securities back in the market, this transaction is treated as a
new issue and the liabilities is recorded at the new placement price.
2. Financial liabilities held for trading
Classification
This caption comprises all the financial liabilities, regardless of their technical form (debt securities, loans etc.), that are classified in the trading portfolio.
This caption includes the negative value of trading derivatives and the negative value of implicit
derivatives embedded in hybrid contracts but not closely correlated with them, that are, accordingly, separated from the “host” instrument, as well as the negative value of derivative contracts
covered by application of the fair value option.
70
It also includes the liabilities originating from the technical mismatches generated by trading in
securities.
Measurement criteria
All trading liabilities are stated at fair value, determined on the basis described in the paragraph
on “financial assets held for trading”.
3. Financial liabilities at fair value
Classification
This caption comprises those financial liabilities or groups of financial liabilities stated at fair
value through the income statement, following exercise of the fair value option (FVO) envisaged
by IAS 39.
At the reporting date, this caption comprises own bonds hedged by derivative contracts, as well
as bonds with an embedded implicit derivative contract that has not been separated out.
Recognition, measurement, derecognition and recording of the effects on the income statement
The recognition, measurement, derecognition and recording of the effects on the income statement of the above financial liabilities are described in the earlier paragraph on “financial assets
at fair value”.
4. Hedging derivatives
This caption reports the financial derivatives designated as effective hedging instruments which
have a negative fair value at the balance sheet date. The recognition, measurement, derecognition and recording of the related effects on the income statement are described in the paragraph
on the corresponding asset caption.
5. Liabilities associated with non-current assets held for sale
Reference is made to the paragraph on “non-current assets and groups of assets held for sale”.
6. Provision for severance indemnities
IFRIC has determined that the provision for severance indemnities is a “post-employment benefit” and, accordingly, is covered by IAS 19. As a consequence, the year-end actuarial valuation of
this caption was carried out with reference to earned benefits using the projected unit credit
method. This method involves the projection of future payments with reference to historical and
statistical analyses and probabilities, adopting suitable demographic techniques. The discounting rate used is determined with reference to the spot rate curve, identified from conditions in
the Italian market for government securities, and to the average residual working life of bank
employees. Actuarial gains/losses are recognized using the corridor method.
71
7. Provisions for risks and charges
In accordance with IAS 37, the provisions for risks and charges reflect known obligations (legal
or implicit) deriving from past events, the settlement of which is likely to involve the use of economic resources whose timing and extent are uncertain, on condition that a reliable estimate can
be made of the amount needed to settle them. If settlement of the liability is likely to be deferred
and the effect of discounting would be significant, the provisions are discounted using current
market rates. Provisions are classified in the “net provisions for risks and charges” caption of the
income statement.
8. Equity instruments
This caption reports the carrying value of bonds convertible into treasury shares, determined in
accordance with IAS 32, since these represent equity instruments other than share capital and
reserves.
9. Deferred tax assets and liabilities
Current and deferred income taxes are calculated in accordance with current fiscal legislation.
Income taxes are recorded in the income statement, except for the captions credited or debited
directly to stockholders’ equity.
The provision for income taxes represents a prudent estimate of the current tax charge and the
related changes in deferred tax assets and liabilities. In particular, deferred tax assets and liabilities are determined with reference to temporary differences between the book value of assets
and liabilities and their values for fiscal purposes. Deferred tax assets are recognized if they are
likely to be recoverable, determined with reference to the Group’s ongoing ability to generate
taxable income.
Deferred tax assets and liabilities are recorded in the balance sheet as, respectively, “Tax assets”
and “Tax liabilities”, on an open account basis without offset.
Changes in deferred tax assets and liabilities are recorded in the income statement, except for
those relating to gains or losses on AFS financial assets and to changes in the fair value of derivative instruments that hedge future cash flows or investments denominated in foreign currencies,
which are recorded directly to stockholders’ equity net of taxation.
In accordance with para. 52b of IAS 12, no provision for deferred taxation has been recorded in
relation to the reserves and revaluation surpluses that are in suspense for tax purposes, since
their distribution is not envisaged; in this regard, the Group has not carried out, and has no
short or medium-term plans to carry out, any activities which could give rise to the payment of
deferred taxes.
10. Liabilities deriving from insurance products
IFRS 4 distinguishes between insurance contracts covered by IFRS 4 and financial contracts
covered by IAS 39 with reference to the presence, or otherwise, of a significant insurance risk
i.e. a pre-existing, non-financial risk transferred from the insured party to the insurer. In the appropriate circumstances, the insurance element can be separated from products deemed to be financial products.
72
Liabilities deriving from products which, under IFRS 4, qualify as insurance products are
classified in the “Technical reserves” caption and measured in accordance with Italian legal
requirements.
Liabilities deriving from products which, under IFRS 4, qualify as financial products in which
the insurer has discretion in the determination of performance (discretionary participation feature - DPF) are classified in the “Technical reserves” caption and measured in accordance with
Italian legal requirements.
The effects on stockholders’ equity of the unrealized gains/losses on the AFS financial assets underlying DPF products are recorded in the “Technical reserves” caption, to the extent that they
derive from application of the shadow accounting method.. Unrealized gains/losses on securities
assigned to the separate administration are allocated based on the ratio of technical interest recognized to insured parties to the net income for the year of the separate administration.
This coefficient is applied to the unrealized gains/losses after having adjusted them for any differences between the carrying values of the separate administration and the related book values.
The liabilities deriving from products which, under IFRS 4, qualify as financial products, are
classified as “Financial liabilities at fair value”, with the separation of the insurance element.
Other information
1. Treasury shares
Treasury shares acquired by the Group are deducted from stockholders’ equity. No profit or
loss deriving from the purchase, sale, issue or cancellation of treasury shares is booked to the
income statement. Differences between the purchase and selling prices for these transactions
are booked to equity.
Any costs incurred for the purchase of treasury shares are deducted from stockholders’ equity,
on condition that they are marginal costs directly attributable to these transactions that would
not otherwise have been incurred.
2. Transactions in foreign currency
Foreign currency transactions are initially recognized in euro, by translating the foreign currency
amount using the exchange rate prevailing on the date of the transaction.
Foreign currency assets and liabilities are subsequently translated to euro using period-end exchange rates. With regard to repurchase agreements and derivative contracts denominated in
foreign currencies, reference is made to the paragraphs on financial assets and liabilities held
for trading.
Exchange differences deriving from the settlement of monetary items or from the translation
of monetary items using rates other than the initial translation rate, or the closing rate at the
end of prior periods, are recorded in the “net trading income” caption of income statement
for the period, to the extent that they relate to foreign currency assets and liabilities other than
those carried at fair value, those whose fair value and cash flows are hedged, and hedging
derivatives.
73
3. Repurchase agreements
Repurchase agreements are treated as loans against securities and the amounts received and paid
are recorded as payables and loans. In particular, spot sales with forward repurchases are
recorded as a payable for the spot amount collected, while spot purchases with forward resales
are recorded as a receivable for the spot amount paid. The cost of borrowing and income from
lending, comprising interest coupons on securities and the differential between the spot and forward prices for such securities, are recorded as interest in the income statement. These transactions do not determine movements in the securities portfolio.
4. Criteria for determining fair value
The following criteria are used to determine the fair value of securities:
• Securities listed on active markets:
The fair value of financial instruments listed on active markets is represented by the following prices:
– equity instruments and debt securities listed on the exchange managed by Borsa Italia: the
official price on the last trading day of the reference period;
– equity instruments and debt securities listed on foreign stock exchanges: the official price
(or other equivalent price) on the last day of the reference period;
– units in mutual funds and sicavs: the official price (or other equivalent price) of the units
on the last day of the reference period.
• Securities not listed on an active market:
The fair value of financial instruments not listed on active markets is represented by the following prices:
– the price supplied by other sources of information, such as Bloomberg, where available
and reliable;
– if the Bloomberg price is not available, other sources / valuation techniques are used, such as:
· for Italian debt securities: the present value of the cash flows expected from the securities concerned, determined with reference to current yields at year end for securities
with similar maturities being, more specifically:
- the swap rates for fixed-rate securities;
- the effective gross yield on CCTs (treasury certificates) with the same residual maturity, for floating-rate securities.
Determination of the fair value of Italian debt securities takes account of any “counterparty risk” and/or “liquidity risk”; accordingly, the price of the security determined using the above methodology is adjusted by the credit spread that reflects the credit risk
associated with the issuer;
· for foreign debt securities: the last ICMA price recorded during the reference period;
· for shares in cooperative banks: the latest price set by the Board of Directors/Stockholders’ Meeting of the issuing bank;
· for units in mutual funds and sicavs: the latest unit price communicated by the management company;
· for capital accumulation insurance policies: the redemption value determined in accordance with the issue regulations.
equity instruments not listed on an “active market” whose fair value cannot be determined reliably on the above basis are valued at cost, as adjusted to take account of any significant impairment of value.
74
The following criteria are used to determine the fair value of derivative contracts:
– derivative contracts traded on organized markets: their fair value is deemed to be their market
price on the last trading day of the year;
– “over the counter” derivative contracts: their fair value is deemed to be their market value at
the reference date, determined as follows with reference to the type of contract concerned:
• contracts on interest rates: market value is represented by the so-called “replacement cost”,
determined by discounting back to the expected settlement dates, the differences between
flows at contract rates and flows at market rates, calculated on an objective basis, current
at year-end for equivalent residual maturities;
• option contracts on securities and other instruments: market value, represented by the theoretical premium at the reference date, is determined by using the Black & Scholes formula, or other equivalent methods;
• forward currency transactions: market value is determined using the forward exchange
rate current at the above date, for maturities corresponding to those of the transactions
concerned;
• forward transactions in securities, goods and precious metals: market value is represented
by the “forward” price current at the above date, for maturities corresponding to those of
the underlying asset.
The fair value of over-the-counter contracts is determined by adjusting their market value,
if positive, by the credit risk associated with the counterpart.
The fair value of investments in equity instruments classified as “AFS financial assets” is determined as follows:
– for investments in companies listed in “active markets”: fair value is taken to be their market
price on the last trading day of the year;
– for investments in companies not listed in “active markets”: if significant, fair value is taken to
be the value established by independent appraisals, where available, or otherwise the related
interest held in the stockholders’ equity reported in the latest approved financial statements;
insignificant equity investments are carried at cost.
75
PART B
INFORMATION ON THE CONSOLIDATED BALANCE SHEET
ASSETS
Section 1
Cash and balances with central banks - Line item 10
1.1 Cash and balances with central banks: analysis
12/31/2005
12/31/2004
a) Cash
b) Unrestricted deposits with central banks
142,150
–
125,484
–
Total
142,150
125,484
76
Section 2
Financial assets held for trading – Line item 20
2.1 Financial assets held for trading: breakdown by type
Items/Amounts
12/31/2005
Listed
Unlisted
672,731
233,096
3,636
–
–
–
37,619
–
86,074
–
–
–
909,463
123,693
B. Derivatives
1. Financial derivatives
2. Credit derivatives
–
–
490,733
–
Total B
–
490,733
909,463
614,426
A.
1.
2.
3.
4.
5.
6.
Cash assets
Debt securities
Equities
Mutual funds
Loans
Impaired loans
Assets sold but not eliminated from the balance sheet
Total A
Total (A+B)
77
2.2 Financial assets held for trading: analysis by debtor/issuer
Items/Amounts
12/31/2005
A. CASH ASSETS
1. Debt securities
a) Governments and central banks
b) Other public entities
c) Banks
d) Other issuers
710,350
197,187
–
104,816
408,347
2. Equities
a) Banks
b) Other issuers:
– insurance companies
– financial companies
– non-financial companies
– other
233,096
172,308
60,788
6,201
5,384
49,203
–
3. Mutual funds
89,710
4. Loans
a) Governments and central banks
b) Other public entities
c) Banks
d) Other issuers
–
–
–
–
–
5. Impaired loans
a) Governments and central banks
b) Other public entities
c) Banks
d) Other issuers
–
–
–
–
–
6. Assets sold but not eliminated from the balance sheet
a) Governments and central banks
b) Other public entities
c) Banks
d) Other issuers
–
–
–
–
–
Total A
1,033,156
B. DERIVATIVES
a) Banks
b) Customers
353,403
137,330
Total B
490,733
Total (A+B)
1,523,889
78
2.3 Financial assets held for trading: derivatives
Type of derivatives/Underlying assets
Interes
rates
Currency
and gold
Variable-yield
securities
Loans
Other
12/31/2005
A) Listed derivatives
1. Financial derivatives
a) With exchange of capital
– Options purchased
– Other derivatives
b) Without exhange of capital
– Options purchased
– Other derivatives
2. Credit derivatives
a) With exchange of capital
b) Without exhange of capital
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total A
–
–
–
–
–
–
B. Unlisted derivatives
1. Financial derivatives
a) With exchange of capital
– Options purchased
– Other derivatives
b) Without exhange of capital
– Options purchased
– Other derivatives
2. Credit derivatives
a) With exchange of capital
b) Without exhange of capital
411,579
4,442
4,442
–
407,137
143,383
263,754
–
–
–
26,925
26,925
26,304
621
–
–
–
–
–
–
52,152
2,430
2,430
–
49,722
49,722
–
–
–
–
–
–
–
–
–
–
–
–
–
–
77
–
–
–
77
–
77
–
–
–
490,733
33,797
33,176
621
456,936
193,105
263,831
–
–
–
Total B
411,579
26,925
52,152
–
77
490,733
Total (A+B)
411,579
26,925
52,152
–
77
490,733
79
Section 3
Financial assets at fair value - Line item 30
3.1 Financial assets at fair value: breakdown by type
Items/Amounts
12/31/2005
Listed
Unlisted
–
–
–
–
–
–
166,419
–
102,134
–
–
–
Total
–
268,553
Cost
–
266,817
1.
2.
3.
4.
5.
6.
Debt securities
Equities
Mutual funds
Loans
Impaired loans
Assets sold but not eliminated from the balance sheet
“Debt securities” include junior securities totaling Euro 39,602 thousand deriving from securitizations carried out by the Group in prior years, which are measured at fair value using a financial-mathematical model, developed together with an independent specialist firm of consultants,
that measures the performance of the assets underlying these securities. These valuations were
based on the results of the individual underlying transactions at the reference date, using specific
assumptions about the principal variables that affect performance (rate of early loan repayments,
rate of recognition of non-performing loans, percentage of expected losses, etc.).
The application of the fair value option to these securities reduces the mismatch with the related
back-to-back swaps arranged as part of the securitizations which, as shown by the above models,
are highly correlated with the junior securities.
This caption also includes the securities held by the Group’s insurance companies, which are
measured at fair value in order to eliminate the mismatch with the related reserves.
80
3.2 Financial assets at fair value: analysis by debtor/issuer
Items/Amounts
12/31/2005
1. Debt securities
a) Governments and central banks
b) Other public entities
c) Banks
d) Other issuers
166,419
–
–
127,357
39,062
2. Equities
a) Banks
b) Other issuers:
– insurance companies
– financial companies
– non-financial companies
– other
–
–
–
–
–
–
–
3. Mutual funds
102,134
4. Loans
a) Governments and central banks
b) Other public entities
c) Banks
d) Other issuers
–
–
–
–
–
5. Impaired loans
a) Governments and central banks
b) Other public entities
c) Banks
d) Other issuers
–
–
–
–
–
6. Assets sold but not eliminated from the balance sheet
a) Governments and central banks
b) Other public entities
c) Banks
d) Other issuers
–
–
–
–
–
Total
268,553
81
Section 4
Financial assets available for sale - Line item 40
4.1 Financial assets available for sale: breakdown by type
Items/Amounts
1.
2.
3.
4.
5.
6.
12/31/2005
Debt securities
Equities
Mutual funds
Loans
Impaired loans
Assets sold but not eliminated from the balance sheet
Total
82
Listed
Unlisted
855,925
306,631
4,456
–
–
–
151,380
101,130
28,011
–
–
–
1,167,012
280,521
4.2 Financial assets available for sale: analysis by debtor/issuer
Items/Amounts
12/31/2005
1. Debt securities
a) Governments and central banks
b) Other public entities
c) Banks
d) Other issuers
1,007,305
357,676
4,640
158,299
486,690
2. Equities
a) Banks
b) Other issuers:
– insurance companies
– financial companies
– non-financial companies
– other
407,761
318,583
89,178
2,635
45,390
29,500
11,653
3. Mutual funds
32,467
4. Loans
a) Governments and central banks
b) Other public entities
c) Banks
d) Other issuers
–
–
–
–
–
5. Impaired loans
a) Governments and central banks
b) Other public entities
c) Banks
d) Other issuers
–
–
–
–
–
6. Assets sold but not eliminated from the balance sheet
a) Governments and central banks
b) Other public entities
c) Banks
d) Other issuers
–
–
–
–
–
Total
1,447,533
83
4.3 Financial assets available for sale: hedged assets
Items/Type of hedging
1.
2.
3.
4.
5.
Hedged assets
12/31/2005
Fair value
Cash flows
–
20,657
–
–
–
–
–
–
–
–
20,657
–
Debt securities
Equities
Mutual funds
Loans
Portfolio
Total
Hedged assets comprise the shares held in Italease SpA classified as “AFS financial assets”
which are hedged against “price risk” via a zero-cost collar.
4.4 Financial assets available for sale: assets with specific hedges
Items/Amounts
12/31/2005
1. Financial assets with specific fair value hedge
a) Interest rate risk
b) Price risk
c) Exchange risk
d) Credit risk
e) Multiple risks
2. Financial assets with specific cash flow hedge
a) Interest rate
b) Exchange rate
c) Other
20,657
–
20,657
–
–
–
–
–
–
–
Total
20,657
84
Section 5
Financial assets held to maturity - Line item 50
5.1 Financial assets held to maturity: breakdown by type
Type of transaction/Amounts
1.
2.
3.
4.
12/31/2005
Book value
Fair value
53,770
–
–
–
53,869
–
–
–
53,770
53,869
Debt securities
Loans
Impaired loans
Assets sold but not eliminated from the balance sheet
Total
5.2 Financial assets held to maturity: analysis by debtor/issuer
Type of transaction/Amounts
12/31/2005
1. Debt securities
a) Governments and central banks
b) Other public entities
c) Banks
d) Other issuers
53,770
10,655
–
4,915
38,200
2. Loans
a) Governments and central banks
b) Other public entities
c) Banks
d) Other issuers
–
–
–
–
–
3. Impaired loans
a) Governments and central banks
b) Other public entities
c) Banks
d) Other issuers
–
–
–
–
–
4. Assets sold but not eliminated from the balance sheet
a) Governments and central banks
b) Other public entities
c) Banks
d) Other issuers
–
–
–
–
–
Total
53,770
There were no significant disposals/reclassifications of financial instruments classified in this
caption during the year.
85
Section 6
Loans and advances to banks - Line item 60
6.1 Loans and advances to banks: breakdown by type
Type of transaction/Amounts
A.
1.
2.
3.
4.
B.
1.
2.
3.
4.
5.
6.
12/31/2005
12/31/2004
Deposits with central banks
63,895
Time deposits
–
Compulsory reserve
63,895
Repurchase agreements
–
Other
–
Due from other banks
1,338,498
Current accounts and sight deposits
365,780
Time deposits
457,745
Other loans
514,972
Debt securities
–
Non-performing loans
1
Assets sold but not eliminated from the balance sheet
–
102,354
–
83,722
–
18,632
747,869
287,631
299,325
160,912
–
1
–
Total (book value)
1,402,393
850,223
Total (fair value)
1,402,393
850,223
86
Section 7
Loans and advances to customers - Line item 70
7.1 Loans and advances to customers: breakdown by type
Type of transaction/Amounts
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
12/31/2005
12/31/2004
Current accounts
3,955,105
Repurchase agreements
5,079
Mortgage loans
6,239,792
Credit cards, personal loans and assignments
of one-fifth of salary
301,824
Finance leases
–
Factoring
–
Other transactions
3,518,604
Debt securities
32,927
Non-performing loans
166,648
Assets sold but not eliminated from the balance sheet 619,149
3,851,268
108,299
4,680,466
153,383
–
–
3,001,283
33,078
177,676
–
Total (book value)
14,839,128
12,005,453
Total (Fair value)
15,054,833
n.a.
The assets transferred but not derecognized relate to mortgages transferred as part of the securitization known as “Berica 5 Residential MBS”, which do not satisfy the IAS 39 requirements for
derecognition and have been “written back” to the financial statements as of 1/1/2005.
87
7.2 Loans and advances to customers: analysis by debtor/issuer
Type of transaction/Amounts
12/31/2005
12/31/2004
1. Debt securities:
a) Governments
b) Other public entities
c) Other issuers
– non-financial companies
– financial companies
– insurance companies
– other
32,927
–
–
32,927
–
32,927
–
–
33,078
–
–
33,078
–
33,078
–
–
2. Loans to:
a) Governments
b) Other public entities
c) Other parties
– non-financial companies
– financial companies
– insurance companies
– other
14,020,404
2
47,668
13,972,734
8,546,757
981,012
24
4,444,941
11,794,699
1
39,179
11,755,519
7,734,072
863,980
–
3,157,467
3. Non-performing loans
a) Governments
b) Other public entities
c) Other parties
– non-financial companies
– financial companies
– insurance companies
– other
166,648
–
–
166,648
125,178
269
–
41,201
177,676
–
–
177,676
111,863
381
–
65,432
4. Assets sold but not eliminated from the balance sheet 619,149
a) Governments
–
b) Other public entities
–
c) Other parties
619,149
– non-financial companies
–
– financial companies
–
– insurance companies
–
– other
619,149
–
–
–
–
–
–
–
–
Total
14,839,128
88
12,005,453
Section 8
Hedging derivatives - Line item 80
8.1 Hedging derivatives: analysis by type of contract and underlying asset
Type of derivatives/Underlying assets
Interes
rates
Currency
and gold
Equities
Loans
Other
12/31/2005
A) Listed derivatives
1. Financial derivatives
a) With exchange of capital
– Options purchased
– Other derivatives
b) Without exhange of capital
– Options purchased
– Other derivatives
2. Credit derivatives
a) With exchange of capital
b) Without exhange of capital
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total A
–
–
–
–
–
–
B. Unlisted derivatives
1. Financial derivatives
a) With exchange of capital
– Options purchased
– Other derivatives
b) Without exhange of capital
– Options purchased
– Other derivatives
2. Credit derivatives
a) With exchange of capital
b) Without exhange of capital
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
133
133
133
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
133
133
133
–
–
–
–
–
–
–
Total B
–
–
133
–
–
133
Total A + B
–
–
133
–
–
133
89
8.2 Hedging derivatives: analysis by hedged portfolio and type of hedge (book value)
Transaction/Type of hedge
Interest
rate risk
Exchange
risk
Fair value
Specific
Credit
risk
Price
risk
Multiple
risks
Generic
Specific
Cash flow
Generic
1. Financial assets available
for sale
2. Receivables
3. Financial assets held
to maturity
4. Portfolio
–
–
–
–
–
–
133
x
–
–
x
x
–
–
x
x
x
x
–
x
–
x
x
x
–
x
x
–
–
x
x
–
Total assets
–
–
–
133
–
–
–
–
1. Financial liabilities
2. Portfolio
–
x
–
x
–
x
x
x
–
x
x
–
–
x
x
–
Total liabilities
–
–
–
–
–
–
–
–
The hedging derivatives presented in the above tables comprise the put option acquired in relation to the zero cost collar that hedges the price risk on the shares in Italease SpA classified as
“AFS financial assets”.
90
Section 9
Remeasurement of financial assets backed by general hedges - Line item 90
This section is not used.
91
Section 10
Equity investments - Line item 100
10.1 Equity investments in companies under joint control (carried at equity) and those over which
significant influence is exercised: disclosures
Name
1. LINEA SpA1
Share capital Euro 30,000,000
in shares of par value Euro 10
2. SEC SERVIZI SCpA
Share capital Euro 14,437,800
in shares of par value Euro 0.52
3. 21 INVESTIMENTI PARTNERS SpA
Share capital Euro 4,250,000
in shares of par value Euro 1
4. MAGAZZINI GENERALI MERCI E DERRATE SpA
Share capital Euro 1,241,317
in shares of par value Euro 5.17
5. NUOVA MERCHANT SpA
Share capital Euro 500,000
in shares of par value Euro 1
6. INTERPORTO DELLA TOSCANA CENTRALE
Share capital Euro 12,075,000
in shares of par value Euro 0.21
Location
Type of relationship
Type of investment
Parent company
% held
MILAN
1
B. Pop. Vicenza
32.20
PADUA
2
B. Pop. Vicenza
B.Nuova
Cariprato
47.11
1.66
1.02
TREVISO
2
B. Pop. Vicenza
20.00
VICENZA
2
B. Pop. Vicenza
25.00
ROME
2
B.Nuova
20.00
PRATO
2
Cariprato
20.00
Total
1
Linea SpA is valued using the equity method in the consolidated financial statements.
Key:
(1) = joint control
(2) = significant influence
The percentage interest in equity also reflects the voting rights at stockholders’ meetings.
92
10.2 Equity investments in companies under joint control and those over which significant influence is exercised: accounting information
Name
Total
assets
A. COMPANIES VALUED AT EQUITY
A.1 Under joint control
1. LINEA SpA
Share capital Euro 30,000,000
in shares of par value Euro 10
2,634,226
A.2 Associated companies
(subject to significant influence)
1. SEC SERVIZI SCpA
Share capital Euro 14,437,800
in shares of par value Euro 0,52
101,369
2. 21 INVESTIMENTI PARTNERS SpA
Share capital Euro 4,250,000
in shares of par value Euro 1
8,897
3. MAGAZZINI GENERALI MERCI
E DERRATE SpA2
Share capital Euro 1,241,317
in shares of par value Euro 5,17
2,099
4. NUOVA MERCHANT SpA
Share capital Euro 500,000
in shares of par value Euro 1
1,192
5. INTERPORTO DELLA TOSCANA CENTRALE
Share capital Euro 12,075,000
in shares of par value Euro 0,21
41,736
Total
evenues
Net profit
(loss)
Equity1
Consolidated
book value
Fair
value
253,982
14,142
79,135
25,481
n.a.
112,027
–
25,951
13,195
n.a.
1,918
447
8,517
1,339
n.a.
1,332
(5)
1,565
391
n.a.
1,067
69
569
114
n.a.
2,252
(1,394)
14,706
2,199
n.a.
A. TOTAL COMPANIES VALUED AT EQUITY
42,719
B. COMPANIES CONSOLIDATED ON A PROPORTIONAL BASIS
1
2
–
the amounts include the net income (loss) for the year;
the amounts reported in the table relate to the financial statements as of 31 December 2004 approved by the company’s board of directors.
The balance sheets and income statements used for consolidation purposes were those approved
by the Boards of Directors of the individual companies as of 31 December 2005; The financial
statements prepared in accordance with IAS/IFRS were used directly while, for companies that
prepared their financial statements under Italian GAAP, balance sheets and income statements
were prepared in accordance with the accounting policies adopted by the Parent Bank.
The investment in 21 Investimenti Partners SpA is recorded at the value reflected in the draft
2005 financial statements, while the holdings in Nuova Merchant SpA, Magazzini Generali e
Derrate SpA and Interporto della Toscana Centrale SpA are stated at the equity values reported
in respective 2004 financial statements.
93
10.3 Equity investments: changes during the year
12/31/2005
12/31/2004
39,190
22,678
9,597
9,597
–
–
–
6,068
–
–
6,068
17,077
16,932
–
–
145
565
460
–
105
42,719
39,190
E. Total revaluations
–
–
F. Total write-downs
–
–
A. Opening balance
B.
B.1
B.2
B.3
B.4
C.
C.1
C.2
C.3
Increases
Purchases
Write-backs
Revaluations
Other changes
Decreases
Sales
Write-downs
Other changes
D. Closing balance
The “other changes” in caption C.3 mainly relate to the effect of valuing Sec Servizi SCpA, Linea SpA and 21 Investimenti Partners SpA using the equity method.
94
Section 11
Technical reserves borne by reinsurers - Line item 110
This section is not used.
95
Section 12
Property, plant and equipment - Line item 120
12.1 Property, plant and equipment: analysis of assets carried at cost
Assets/Values
12/31/2005
12/31/2004
A. Assets used in business
1.1 Owned
a) Land
b) Buildings
c) Furniture
d) IT equipment
e) Other
1.2 Purchased under finance leases
a) Land
b) Buildings
c) Furniture
d) IT equipment
e) Other
328,359
61,953
187,926
50,674
4,991
22,815
372
–
–
–
–
372
334,172
64,153
191,481
50,317
4,979
23,242
–
–
–
–
–
–
Total A
328,731
334,172
B. Investment property
2.1 Owned
a) Land
b) Buildings
2.2 Purchased under finance leases
a) Land
b) Buildings
–
–
–
–
–
–
–
–
–
–
–
–
Total B
–
–
328,731
334,172
Total A+B
96
12.2 Property, plant and equipment: analysis of assets carried at fair value or revalued
Assets/Values
12/31/2005
12/31/2004
A. Assets used in business
1.1 Owned
a) Land
b) Buildings
c) Furniture
d) IT equipment
e) Other
1.2 Purchased under finance leases
a) Land
b) Buildings
c) Furniture
d) IT equipment
e) Other
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total A
–
–
B. Investment property
2.1 Owned
a) Land
b) Buildings
2.2 Purchased under finance leases
a) Land
b) Buildings
47,978
9,525
38,453
–
–
–
51,366
11,637
39,729
–
–
–
Total B
47,978
51,366
Total A+B
47,978
51,366
97
12.3 Property, plant and equipment used for business purposes: changes during the year
Land
Buildings
Furniture
IT equipment
Other
Total
64,153
236,334
86,062
38,598
68,092
493,239
–
44,853
35,745
33,619
44,850
159,067
64,153
191,481
50,317
4,979
23,242
334,172
–
–
–
–
–
–
–
–
7,132
5,629
1,289
–
–
–
–
–
3,348
3,347
–
–
–
–
–
–
2,125
2,112
1
–
–
–
–
–
4,869
4,715
–
–
–
–
–
–
17,474
15,803
1,290
–
–
–
–
–
–
–
–
214
–
1
–
12
–
154
–
381
C. Decreases
2,200
C.1 Sales
2,200
C.2 Depreciation
–
C.3 Impairment charges
booked to:
–
a) equity
–
b) income statement
–
C.4 Fair value decreases booked to:
–
a) equity
–
b) income statement
–
C.5 Negative exchange rate adjustments
–
C.6 Transfers to:
–
a) investment
property
–
b) assets related to discontinued operations
–
C.7 Other changes
–
10,687
4,912
5,756
2,991
3
2,985
2,113
21
2,091
4,924
252
4,527
22,915
7,388
15,359
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
19
–
–
3
–
–
1
–
–
145
–
–
–
–
–
–
–
–
–
–
–
168
61,953
187,926
50,674
4,991
23,187
328,731
–
50,609
38,730
35,710
49,377
174,426
61,953
238,535
89,404
40,701
72,564
503,157
–
–
–
–
–
–
A. Opening gross amount
A.1 Total net reductions in value
A.2 Opening net amount
B. Increases :
B.1 Purchases
B.2 Capitalized improvement expenditure
B.3 Write-backs
B.4 Fair value increases booked to:
a) equity
b) income statement
B.5 Positive exchange rate adjustments
B.6 Transfers from investment
property
B.7 Other changes
D. Closing net amount
D.1 Total net reductions in value
D.2 Closing gross amount
E. Valuation at cost
The “other changes” reported in captions B.7 and C.7 reflect, respectively, gains and losses on
the disposal and/or retirement of certain property, plant and equipment.
98
12.4 Investment properties: changes during the year
12/31/2005
Land
Buildings
11,637
39,729
B. Increases
B.1 Purchases
B.2 Capitalized improvement expenditure
B.3 Fair value increases
B.4 Write-backs
B.5 Positive exchange rate adjustments
B.6 Transfers from property, plant and equipment
used for business purposes
B.7 Other changes
140
–
–
140
–
–
1,141
–
301
430
–
–
–
–
–
410
C. Decreases
C.1 Sales
C.2 Depreciation
C.3 Fair value decreases
C.4 Impairment charges
C.5 Negative exchange rate adjustments
C.6 Transfers to:
a) property, plant and equipment used
for business purposes
b) assets related to discontinued operations
C.7 Other changes
2,252
2,171
–
81
–
–
–
2,417
2,303
–
80
–
–
–
–
–
–
–
–
34
D. Closing balance
9,525
38,453
A. Opening balance
99
Section 13
Intangible assets - Line item 130
13.1 Intangible assets: analysis by type
Assets/Values
12/31/2005
Limited
Unlimited
duration
duration
12/31/2004
Limited
Unlimited
duration
duration
A.1 Goodwill
A.1.1 attributable to the group
A.1.2 attributable to minority interests
A.2 Other intangible assets
A.2.1 Carried at cost:
a) Intangible assets
generated internally
b) Other assets
A.2.2 Carried at fair value:
a) Intangible assets
generated internally
b) Other assets
–
x
x
7,598
7,598
485,004
485,004
–
–
–
–
–
–
9,067
9,067
485,008
485,008
–
–
–
–
7,598
–
–
–
–
–
9,067
–
–
–
–
–
–
–
–
–
–
–
–
Total
7,598
485,004
9,067
485,008
Caption A.1 “Goodwill” principally comprises:
• Euro 208,580 thousand arising on the acquisition of the majority interest in CariPrato SpA;
• Euro 52,388 thousand relating to Banca Nuova SpA;
• Euro 5,303 thousand relating to Vicenza Life Ltd;
• Euro 120,197 thousand representing the residual goodwill paid to the former Group banks
that sold their businesses to the Parent Bank in 2000;
• Euro 52,889 thousand representing the residual goodwill paid on the purchase of 46 branches
from banks in the Intesa Group during 2001;
• Euro 36,000 thousand representing the residual goodwill paid to Banca AntonVeneta for the
purchase of 30 branches in eastern Sicily at the end of 2004.
The carrying value of this goodwill (purchased and arising on consolidation) has been subjected
to impairment testing in accordance with IAS 36, since it represents an intangible asset with an
indefinite useful life.
The related valuations were made as follows:
• using the adjusted equity method, considering earnings, for the goodwill relating to Cariprato
SpA and Banca Nuova SpA, and for the goodwill relating to the business represented by the
30 branches acquired from Banca AntonVeneta in 2004;
• using the earnings method for the goodwill relating to Vicenza Life Ltd;
• with reference to the goodwill attributable to the funding from similar transactions, for the
other businesses.
All the analyses were carried out on a stand-alone basis, valuing each bank/company with reference to its current condition, regardless of the effect of any operational and financial synergies
deriving from a business combination.
100
These valuations did not identify any impairment of value to be charged to the income statement, except for the goodwill relating to the former AntonVeneta branches which has been written down by Euro 2.5 million.
13.2 Intangible assets: changes during the year
Goodwill
Other intangible assets:
generated internally
Finite
Indefinite
Other intangible assets:
other
Finite
Indefinite
Total
A. Opening balance
703,720
–
–
15,384
–
719,104
A.1 Total net reductions in value
218,712
–
–
6,317
–
225,029
A.2 Opening net amount
485,008
–
–
9,067
–
494,075
2,568
2,562
–
–
–
–
3,673
3,674
–
–
6,241
6,236
x
x
–
x
x
–
6
2,572
–
2,572
x
2,572
x
2,572
–
x
x
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1)
(1)
–
–
–
5,142
333
4,809
4,809
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1)
(1)
–
–
6
7,714
333
7,381
4,809
2,572
–
2,572
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
D. Closing net amount
485,004
–
–
7,598
–
492,602
D.1 Total net value adjustments
221,284
–
–
11,126
–
232,410
E. Closing gross amount
706,288
–
–
18,724
–
725,012
–
–
–
–
–
–
B. Increases
B.1 Purchases
B.2 Increases in internally
generated intangible assets
B.3 Write-backs
B.4 Positive changes in fair value
– booked to stockholders’ equity
– booked to income statement
B.5 Exchange gains
B.6 Other changes
C. Decreases
C.1 Sales
C.2 Write-downs
– Amortisation
– Write-downs
+ equity
+ income statement
C.3 Negative changes in fair value
– booked to stockholders’ equity
– booked to income statement
C.4 Transfers to discontinued
operations due for disposal
C.5 Exchange losses
C.6 Other changes
F. Valuation at cost
101
Section 14
Tax assets and liabilities - Asset line item 140 and liability line item 80
14.1 Deferred tax assets: analysis
Deferred tax assets
12/31/2005
12/31/2004
– Deferred tax assets booked to income statement
– Deferred tax assets booked to stockholders’ equity
97,495
725
52,175
–
Total
98,220
52,175
12/31/2005
12/31/2004
– Deferred tax liabilities booked to income statement
– Deferred tax liabilities booked to stockholders’ equity
42,755
9,481
20,491
–
Total
52,236
20,491
14.2 Deferred tax liabilities: analysis
Deferred tax liabilities
102
14.3 Change in deferred tax assets (with matching entry in income statement)
12/31/2005
12/31/2004
1. Opening balance
69,365
79,100
2. Increases
2.1 Deferred tax assets recorded during the year
a) relating to prior years
b) due to changes in accounting policies
c) write-backs
d) other
2.2 New taxes or increases in tax rates
2.3 Other increases
98,847
98,842
26
59,319
–
39,497
–
5
47,914
47,914
–
19,240
–
28,674
–
–
3. Decreases
3.1 Deferred tax assets eliminated during the year
a) reversals
b) written down as no longer recoverable
c) change in accounting policies
3.2 Reduction in tax rates
3.3 Other decreases
70,717
70,637
70,394
–
243
–
80
57,649
57,649
56,176
–
1,473
–
–
4. Closing balance
97,495
69,365
14.4 Change in deferred tax liabilities (with matching entry in income statement)
12/31/2005
12/31/2004
1. Opening balance
57,764
38,175
2. Increases
2.1 Deferred tax liabilities recorded during the year
a) relating to prior years
b) due to changes in accounting policies
c) other
2.2 New taxes or increases in tax rates
2.3 Other increases
32,763
32,259
–
17,433
14,826
–
504
49,643
49,643
–
43,195
6,448
–
–
3. Decreases
3.1 Deferred tax liabilities eliminated during the year
a) reversals
b) due to changes in accounting policies
c) other
3.2 Reduction in tax rates
3.3 Other decreases
47,772
41,175
41,048
1
126
6,597
–
30,054
30,054
19,319
–
10,735
–
–
4. Closing balance
42,755
57,764
On the first-time adoption (FTA) of IAS/IFRS, the Group recorded a deferred tax liability in relation to the revaluation of property valued on a deemed cost basis, applying the nominal Ires
and Irap tax rates of 33% and 4.25%, respectively, in force on the transition date.
103
Finance Law 266 dated 23.12.2005 allows the fiscal recognition of revalued property on payment of a flat-rate tax. This election was made by Banca Nuova SpA and Cariprato SpA.
The excess of the deferred tax liability recorded on FTA with respect to the flat-rate tax payable
was released to the income statement in 2005. This excess is reported in caption 3.2 “reduction
of tax rates” of table 14.4.
Taking minority interests into account, the positive effect on Group net income was Euro 5,820
thousand.
14.5 Change in deferred tax assets (with matching entry to equity)
1. Opening balance
2. Increases
2.1 Deferred tax assets recorded during the year
a) relating to prior years
b) due to changes in accounting policies
c) other
2.2 New taxes or increases in tax rates
2.3 Other increases
3. Decreases
3.1 Deferred tax assets eliminated during the year
a) reversals
b) written down as no longer recoverable
c) change in accounting policies
3.2 Reduction in tax rates
3.3 Other decreases
4. Closing balance
104
12/31/2005
12/31/2004
–
–
725
725
–
–
725
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
725
–
14.6 Change in deferred tax liabilities (with matching entry to equity)
12/31/2005
12/31/2004
–
–
2. Increases
2.1 Deferred tax liabilities recorded during the year
a) relating to prior years
b) due to changes in accounting policies
c) other
2.2 New taxes or increases in tax rates
2.3 Other increases
9,673
9,132
–
815
8,318
–
541
–
–
–
–
–
–
–
3. Decreases
3.1 Deferred tax liabilities eliminated during the year
a) reversals
b) due to changes in accounting policies
c) other
3.2 Reduction in tax rates
3.3 Other decreases
192
155
155
–
–
–
37
–
–
–
–
–
–
–
9,481
–
1. Opening balance
4. Closing balance
105
Section 15
Non current assets held for sale and discontinued operarions - Asset line item
150 and liability line item 90
15.1 Non-current assets held for sale and discontinued operations: analysis by type of asset
12/31/2005
12/31/2004
A. Individual assets
A.1 Equity investments
A.2 Property, plant and equipment
A.3 Intangible assets
A.4 Other non-current assets
–
–
–
–
568
–
–
–
Total A
–
568
B. Disposal groups
B.1 Financial assets held for trading
B.2 Financial assets at fair value
B.3 Financial assets available for sale
B.4 Financial assets held to maturity
B.5 Loans and advances to banks
B.6 Loans and advances to customers
B.7 Equity investments
B.8 Property, plant and equipment
B.9 Intangible assets
B.10Other assets
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total B
–
–
C. Liabilities associated with assets held for sale
and disposal groups
C.1 Payables
C.2 Securities
C.3 Other liabilities
–
–
–
–
–
–
Total C
–
–
D. Liabilities associated with assets
held for sale
D.1 Deposits from banks
D.2 Due to customers
D.3 Debt securities in issue
D.4 Financial liabilities held for trading
D.5 Financial liabilities at fair value
D.6 Provisions
D.7 Other Liabilities
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total D
–
–
106
Section 16
Other assets - Line item 160
16.1 Other assets: analysis
1.
2.
3.
4.
5.
6.
Miscellaneous debits in transit
Miscellaneous security transactions
Amounts relating to the last day of the year
Writedown of discounted portfolio
Other miscellaneous items
Differences on elimination
Total
107
12/31/2005
12/31/2004
27,790
15,792
95,843
26,147
155,695
5,078
34,976
732
76,784
23,109
205,830
12.212
326,345
353,643
LIABILITIES AND EQUITY
Section 1
Deposits from banks - Line item 10
1.1 Deposits from banks: breakdown by type
Type of transaction/Members of the group
12/31/2005
12/31/2004
1.
2.
2.1
2.2
2.3
Due to central banks
Due to other banks
Current accounts and sight deposits
Time deposits
Loans
2.3.1 Financial leases
2.3.2 Other
2.4 Payables for commitments
to repurchase own equity instruments
2.5 Liabilities relating to assets
transferred but not derecognized
2.5.1 Repurchase agreements
2.5.2 Other
2.6 Other payables
–
2,834,104
204,730
2,065,017
509,601
–
509,601
–
2,055,002
132,956
1,427,579
473,883
–
473,883
–
–
54,756
18,327
36,429
–
20,584
20,584
–
–
Total
2,834,104
2,055,002
Fair value
2,834,104
2,055,002
Caption 2.5.2 includes the loan of securities, represented by shares in Italease SpA, arranged in
connection with the zero-cost collar referred to earlier.
108
Section 2
Due to customers - Line item 20
2.1 Due to customers: breakdown by type
Type of transaction/Members of the group
12/31/2005
12/31/2004
1.
2.
3.
4.
7,157,594
5,801
918
86,432
–
86,432
6,762,803
25,383
–
86,484
–
86,484
Current accounts and demand deposits
Time deposits
Third-party funds under administration
Loans
4.1 Financial leases
4.2 Other
5. Payables for commitments
to repurchase own equity instruments
6. Liabilities relating to assets
transferred but not derecognized
6.1 Repurchase agreements
6.2 Other
7. Other payables
–
–
1,340,226
746,310
593,916
2,554
616,881
616,881
–
–
Total
8,593,525
7,491,551
Fair value
8,593,525
7,491,551
The liabilities relating to transferred assets that have not been derecognized, referred to in point
6.2, represent the matching entry for the mortgages transferred as part of the securitization
known as “Berica 5 Residential MBS”, which do not satisfy the IAS 39 requirements for derecognition and have been “written back” to the financial statements as of 1/1/2005.
109
Section 3
Debt securities in issue - Line item 30
3.1 Debt securities in issue: breakdown by type
Type of security/Members of the group
12/31/2005
Book value
Fair value
A. Listed securities
1. Bonds
2. Other securities
B. Unlisted securities
1. Bonds
2. Other securities
–
–
–
4,093,625
3,676,383
417,242
–
–
–
4,159,574
3,850,324
309,250
Total
4,093,625
4,159,574
3.2 Detail of line item 30 “Debt securities in issue”: subordinated securities
12/31/2005
Debt securities in issue
708,793
110
Section 4
Financial liabilities held for trading - Line item 40
4.1 Financial liabilities held for trading: breakdown by type
Type of security/Members of the group
12/31/2005
FV
NV
FV*
Q
NQ
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
x
x
Total A
–
–
–
–
B. Derivatives
1. Financial derivatives
2. Credit derivatives
x
x
–
–
534,440
–
x
x
Total B
–
–
534,440
–
Total (A+B)
–
–
534,440
–
A.
1.
2.
3.
Cash liabilities
Due to other banks
Due to customers
Debt securities in issue
3.1 Bonds
3.2 Other securities
FV = Fair value
FV* = Fair value calculated excluding the differences in value due to changes in the issuer’s credit rating since the issue date
NV = Nominal or notional value
Q
= Listed
NQ = Unlisted
111
4.4 Financial liabilities held for trading: derivatives
Type of derivative/underlying asset
Interest
rates
Currency
and gold
Equities
Loans
Other
12/31/2005
A. Listed derivatives
1. Financial derivatives
a) With exchange of capital
– Options issued
– Other derivatives
b) Without exhange of capital
– Options issued
– Other derivatives
2. Credit derivatives
a) With exchange of capital
b) Without exhange of capital
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total A
–
–
–
–
–
–
B. Unlisted derivatives
1. Financial derivatives
a) With exchange of capital
– Options issued
– Other derivatives
b) Without exhange of capital
– Options issued
– Other derivatives
2. Credit derivatives
a) With exchange of capital
b) Without exhange of capital
386,449
4,442
4,442
–
382,007
142,081
239,926
–
–
–
38,317
38,317
24,042
14,275
–
–
–
–
–
–
109,668
62,496
62,496
–
47,172
47,172
–
–
–
–
–
–
–
–
–
–
–
–
–
–
6
–
–
–
6
–
6
–
–
–
534,440
105,255
90,980
14,275
429,185
189,253
239,932
–
–
–
Total B
386,449
38,317
109,668
–
6
534,440
Total (A+B)
386,449
38,317
109,668
–
6
534,440
112
Section 5
Financial liabilities at fair value - Line item 50
5.1 Financial liabilities at fair value: breakdown by type
Type of security/Amounts
12/31/2005
FV
NV
1. Due to other banks
2. Due to customers
3. Debt securities
Total
FV*
Q
NQ
–
786,495
942,070
–
–
–
–
782,176
784,100
x
x
x
1,728,565
–
1,566,276
–
FV = Fair value
FV* = Fair value calculated excluding the differences in value due to changes in the issuer’s credit rating since the issue date
NV = Nominal or notional value
Q
= Listed
NQ = Unlisted
“Due to customers” relates to liabilities arising as part of assurance activities of mainly a financial nature, valued by applying the fair value option, as allowed by IAS 39.
“Debt securities” include own bonds correlated with derivative contracts that hedge interest rate
risk, valued by applying the fair value option, as allowed by IAS 39.
5.2 Detail of line item 50 “Financial liabilities at fair value”: subordinated liabilities
12/31/2005
Subordinated liabilities
10,211
113
Section 6
Hedgings derivatives - Line item 60
6.1 Hedging derivatives: analysis by type of contract and underlying asset
Type of derivatives/Underlying assets
Interest
rates
Currency
and gold
Equities
Loans
Other
12/31/2005
A. Listed derivatives
1. Financial derivatives
a) With exchange of capital
– Options issued
– Other derivatives
b) Without exhange of capital
– Options issued
– Other derivatives
2. Credit derivatives
a) With exchange of capital
b) Without exhange of capital
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total A
–
–
–
–
–
–
B. Unlisted derivatives
1. Financial derivatives
a) With exchange of capital
– Options issued
– Other derivatives
b) Without exhange of capital
– Options issued
– Other derivatives
2. Credit derivatives
a) With exchange of capital
b) Without exhange of capital
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,862
2,862
2,862
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,862
2,862
2,862
–
–
–
–
–
–
–
Total B
–
–
2,862
–
–
2,862
Total A + B
–
–
2,862
–
–
2,862
114
6.2 Hedging derivatives: analysis by hedged portfolio and type of hedge
Transaction/Type of hedge
Interest
rate risk
Exchange
risk
Fair value hedge
Specific
Credit
Price
risk
risk
Generic
Cash flow hedge
Specific
Generic
Multiple
risks
1. Financial assets available
for sale
2. Receivables
3. Financial assets held
to maturity
4. Portfolio
–
–
–
–
–
–
2,862
x
–
–
x
x
–
–
x
x
x
x
–
x
–
x
x
x
–
x
x
–
–
x
x
–
Total assets
–
–
–
2,862
–
–
–
–
1. Financial liabilities
2. Portfolio
–
x
–
x
–
x
–
x
–
x
x
–
–
x
x
–
Total liabilities
–
–
–
–
–
–
–
–
The hedging derivatives reported in the above tables comprise the call option sold in relation to
the zero-cost collar that hedges the “price risk” on the shares held in Italease SpA, which are
classified as “AFS financial assets”.
115
Section 7
Remeasurement of financial liabilities backed by general hedges - Line item 70
This section is not used.
116
Section 8
Tax liabilities - Line item 80
Deferred tax liabilities are discussed in asset section 14.
117
Section 9
Liabilities associated with non-current assets held for sale - Line item 90
This section is not used.
118
Section 10
Other liabilities - Line item 100
10.1 Other liabilities: analysis
12/31/2005
12/31/2004
Miscellaneous security transactions
Employee salaries and contributions
Suppliers
Transactions in transit
Writedown of discounted portfolio
Allowance for risks on guarantees and commitments
Accrued expenses and deferred income
not allocated to specific accounts
8. Residual items
7,841
48,529
50,965
13,658
144,077
4,008
5,041
53,174
32,523
7,270
131,201
3,308
1,607
262,759
20,960
183,394
Total
533,444
436,871
1.
2.
3.
4.
5.
6.
7.
119
Section 11
Provision for severance indemnities - Line item 110
11.1 Severance indemnities: changes during the year
12/31/2005
12/31/2004
A. Opening balance
81,654
79,152
B. Increases
B.1 Provisions
B.2 Other increases
17,125
15,903
1,222
15,386
12,933
2,453
C. Decreases
C.1 Payments made
C.2 Other decreases
11,614
7,729
3,885
12,884
7,745
5,139
D. Closing balance
87,165
81,654
The other decreases included in caption C.2 include the severance indemnities accrued during
the year and transferred to the employees’ supplementary pension fund.
The IFRIC has determined that severance indemnities (TFR) represent a “post-employment
benefit” and, accordingly, are covered by IAS 19. As a consequence, the year-end liability was
determined by an independent actuary, applying the methodology envisaged by this IAS for “defined-benefit plans”.
120
Section 12
Provisions for risks and charges - Line item 120
12.1 Provisions for risks and charges: analysis
Items/Components
12/31/2005
12/31/2004
1. Post-retirement benefits
2. Other provisions for risks and charges
2.1 legal disputes
2.2 personnel expenses
2.3 other
46,324
43,020
25,142
8,663
9,215
45,047
52,757
24,330
11,110
17,317
Total
89,344
97,804
12.2 Provisions for risks and charges: changes during the year
Items/Components
Post-retirement benefits
Other provisions
Total
45,047
52,757
97,804
B. Increases
B.1 Provisions
B.2 Changes due to the passage of time
B.3 Changes due to variations in the
discount rate
B.4 Other increases
4,271
3,070
–
13,109
12,051
–
17,380
15,121
–
–
1,201
–
1,058
–
2,259
C. Decreases
C.1 Utilizations during the year
C.2 Changes due to variations in the
discount rate
C.3 Other decreases
2,994
2,829
22,846
21,617
25,840
24,446
–
165
–
1,229
–
1,394
46,324
43,020
89,344
A. Opening balance
D. Closing balance
With regard to the “other provisions”, the “other increases” included in caption B.4 mostly relate to the portion of the Parent Bank’s 2004 net income allocated to the provision for charitable
donations, aid and works in the public interest, while the related utilizations are reported as
“other decreases” in caption C.3.
With regard to the “provisions for pensions”, the “other increases” reported in caption B.4 reflect the financial performance of the pension fund operated by Cariprato SpA, while the “other
decreases” reported in caption C.3 relate to the flat-rate tax paid on the increase in the value of
the securities held by this pension fund and to the insurance charges borne by the fund, as described in point 12.3 below.
121
12.3 Pension funds
The supplementary pension fund for the employees of Cariprato was formed following an agreement signed on 30/6/1998 between the Bank and the Trade Unions, and is governed by regulations that reflect the terms of this agreement. The Fund is split into two Sections:
– the Capitalization Section which guarantees supplementary pension benefits on a definedcontribution basis, using the individual capitalization method which links benefits with the
amount accumulated (in accordance with Decree 124 of 21 April 1993 and subsequent
amendments and additions);
– the defined-benefit Supplementary Section, which represents the continuation, under current
rules, of the original Fund set up under an in-house agreement dated 27 June 1972 to supplement the benefits payable by INPS.
The Capitalization Section could be joined, if they opted to do so, by active employees as of 1
July 1998 who were previously members of the Supplementary Fund, as well as those hired after
1 May 1981, who were not entitled to benefit from the Supplementary Fund. As of 31 December
2005, 874 employees are members of the Capitalization Section. The Supplementary Section
comprises persons who were already pensioners as of 1 July 1998, as well as the employees of the
bank on that date who opted to remain in the Supplementary Section. As of 31 December 2005,
the Supplementary Section includes 4 bank employees and 145 pensioners.
In presenting the Supplementary Pension Fund Report at 31 December 2005, split between the
two Sections, we would also like to make the following points:
1) Capitalization Section
The funds are mostly invested in trading securities, as specified in detail, stated at their year-end
market value and classified as financial assets held for sale, specifically allocated to service the
pension fund.
2) Supplementary Section
The funds are mostly invested in a floating-rate treasury certificate, CCT T.V. 1.3.2006 - code
1321770, classified among the financial assets held to maturity and specifically allocated to service the pension fund. The financial income of the Supplementary Section is not subject to flatrate taxation since the final value of the benefits or contributions accumulated by each member
cannot be identifiable for each member.
The Fund Regulations envisage that the benefits paid by the Supplementary Section must be
covered by the yield on investments and by the amount of the mathematical reserve established
pursuant to art. 8 of the Regulations. The calculation is made annually by the actuary and, as of
31 December 2005, the required actuarial reserve was Euro 10,600 thousand. Following allocation of the yield on the investments, the Fund amounts to Euro 10,677 thousand and, accordingly, no provision has been charged to the consolidated income statement.
122
BALANCE SHEET
capitalization section
ASSETS
Financial investments
a) Investment securities
b) Dealing securities
c) Cash and cash equivalents
supplementary section
total
35,564
–
33,483
2,081
10,592
10,570
–
22
46,156
10,570
33,483
2,103
143
101
42
85
85
–
228
186
42
35,707
10,677
46,384
60
60
–
–
60
60
Net assets available for benefits
35,647
10,677
46,324
TOTAL LIABILITIES
35,707
10,677
46,384
STATEMENT OF INCOME
capitalization section
Pension fund management assets
a) Accrued income on securities
b) Other assets
TOTAL ASSETS
LIABILITIES
Pension fund management liabilities
a) Due to tax authorities
Balance of pension fund management
a) Contributions for benefits
– paid by the bank
– paid by the staff
– portion of severance indemnities
b) Advances
c) Transfers and redemptions
d) Transfers from other funds
e) Pensions paid
supplementary section
total
1,515
-1,274
241
727
524
1,819
-797
-758
–
–
–
–
–
–
–
–
-1,274
727
524
1,819
-797
-758
–
-1,274
Result of financial management
a) Interest, discounts and dividends on securities
b) Profits on dealing in securities
c) Capital gains on securities
d) Writebacks to securities
e) Interest income on cash and cash equivalents
f) Other income
g) Losses on dealing in securities
h) Capital losses on securities
i) Other costs
943
421
36
407
–
147
1
–
-68
0
258
252
–
4
–
1
–
–
–
–
1,201
673
36
411
–
148
1
–
-68
0
Operating expenses
a) Flat-rate tax on increase in fund value
b) Other expenses
-165
-104
-62
–
–
–
-165
-104
-62
2,293
-1,016
1,277
“Change in net assets
available for benefits”
123
Section 13
Technical reserves - Line item 130
13.1 Technical reserves: analysis
Direct business
Indirect business
12/31/2005
A. Loss sector
–
–
–
A.1 Premium reserve
A.2 Claim reserve
A.3 Other reserves
–
–
–
–
–
–
–
–
–
B. Life sector
278,223
–
278,223
B.1 Mathematical reserves
B.2 Reserves for amounts payable
B.3 Other reserves
274,729
1,716
1,778
–
–
–
274,729
1,716
1,778
C. Technical reserves even though the investment
risk is borne by the insured parties
–
–
–
C.1 Reserves relating to contracts whose performance
is related to investment funds and market indices
–
–
–
–
–
–
278,223
–
278,223
Direct business
Indirect business
12/31/2005
A. Opening balance
127,478
–
127,478
B. Increases
B.1 Provisions
B.2 Other increases
179,496
174,940
4,556
–
–
–
179,496
174,940
4,556
28,751
–
28,751
–
–
–
28,751
–
28,751
278,223
–
278,223
C.2 Reserves deriving from the management
of pension funds
D. Total technical reserves
13.2 Technical reserves: changes during the year
C. Decreases
C.1 Utilizations during the year
C.2 Other decreases
D. Closing balance
124
Section 14
Redeemable shares - Line item 150
This section is not used.
125
Section 15
Gruop stockholders’ equity - Line item 140, 160, 170, 180, 200 and 220
15.1 Group share of equity: analysis
Items/Amounts
12/31/2005
12/31/2004
1.
2.
3.
4.
Share capital
Additional paid-in capital
Reserves
(Treasury shares):
a) Parent Bank
b) subsidiaries
5. Valuation reserves
6. Capital instruments
7. Net income for the year attributable to the Group
183,817
1,543,127
179,109
–
–
–
231,695
12,054
125,770
154,502
1,074,058
202,598
–
–
–
167,938
–
117,656
Total
2,275,572
1,716,752
The “reserves” included in point 3 comprise the pre-existing profit reserves (legal reserve, statutory reserve, extraordinary reserve, reserve for the purchase of treasury stock etc.), as well as the
positive and negative reserves associated with the transition to IAS/IFRS not classified in the
other equity captions. They also include the reserve for general banking risks which, in accordance with IAS, has been reclassified as part of stockholders’ equity.
The “valuation reserves” referred to in point 5 include the reserves arising on the valuation of
property and works of art at fair value rather than cost, on the first-time adoption of IAS/IFRS,
the valuation reserves relating to AFS financial assets and the monetary revaluation reserves.
“Equity instruments” relate to the equity element implicit in the 2003-2009 convertible bond issued by the Parent Bank which, in accordance with IAS 32, has been separated and classified
within stockholders’ equity.
15.2 “Share capital” and “Treasury shares”: analysis
-
Treasury shares
Par value
126
12/31/2005
12/31/2004
61,272,246
Euro 3
51,500,550
Euro 3
15.3 Share capital - Number of shares issued by the Parent Bank: changes during the year
Items/Types
Ordinary
Other
A. Treasury shares at the beginning of the year
– fully paid
– not fully paid
A.1 Treasury shares (-)
51,500,550
51,500,550
–
–
–
–
–
–
A.2 Outstanding shares: opening balance
51,500,550
–
9,786,422
9,786,422
9,770,942
–
177,732
–
9,593,210
15,480
15,480
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
14,726
14,726
–
–
–
–
–
–
–
–
61,272,246
–
61,272,246
61,272,246
–
–
–
–
–
–
B. Increases
B.1 New issues
– payment:
– business combinations
– conversion of bonds
– exercise of warrant
– other
– bonus:
– to employees
– to directors
– other
B.2 Sale of treasury shares
B.3 Other changes
C. Decreases
C.1 Elimination
C.2 Purchase of treasury shares
C.3 Disposal of companies
C.4 Other changes
D. Outstanding shares: closing balance
D.1 Treasury shares (+)
D.2 Treasury shares at the end of the year
– fully paid
– not fully paid
15.4 Other information
The “equity instruments” caption relates to the equity element implicit in the 2003-2009 convertible bond issued by the Parent Bank which, in accordance with IAS 32, has been separated
and classified within stockholders’ equity.
This caption amounted to Euro 12,280 thousand as of 1/1/2005, on the first-time adoption of
IAS 32; as of 31/12/2005 it amounts to Euro 12,054 thousand. This change reflects the early
conversion into shares of part of the above bond.
127
15.6 Valuation reserves: analysis
Items/Components
12/31/2005
12/31/2004
Financial assets available for sale
Property, plant and equipment
Intangible assets
Hedges of foreign investments
Cash-flow hedges
Exchange differences
Non-current assets held for sale and
discontinued operations
8. Special revaluation laws
63,757
121,640
–
–
–
–
–
121,640
–
–
–
–
–
46,298
–
46,298
Total
231,695
167,938
1.
2.
3.
4.
5.
6.
7.
15.7 Valuation reserves: changes during the year
Financial Property,
assets plant and
available equipment
for sale
A. Opening balance
Intangible
assets
Hedges of
foreign
investments
Cash-flow Exchange Non-current
Special
hedges differences assets held revaluation
for sale and
laws
discontinued
operations
–
121,640
–
–
–
–
–
46,298
B. Increases
B.1 Increases in fair value
B.2 Other changes
88,868
72,690
16,178
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
C. Decreases
C.1 Decreases in fair value
C.2 Other changes
25,111
2,050
23,061
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
D. Closing balance
63,757
121,640
–
–
–
–
–
46,298
15.8 Valuation reserves - AFS financial assets: analysis
Assets/Values
1.
2.
3.
4.
12/31/2005
Debt securities
Equities
Mutual funds
Loans
Total
128
Positive reserve
Negative reserve
10,905
58,019
1,138
–
(678)
(4,386)
(1,241)
–
70,062
(6,305)
15.9 Valuation reserves - AFS financial assets: changes during the year
1. Opening balance
2. Positive changes
2.1 Increases in fair value
2.2 Release to the income statement
of negative reserves:
– from impairment
– from disposals
2.3 Other changes
3.
3.1
3.2
3.3
Negative changes
Reductions in fair value
Impairment write-downs
Release to the income statement
of positive reserves: from disposals
3.4 Other changes
4. Closing balance
Debt securities
Equities
Mutual funds
Loans
–
–
–
–
10,910
7,302
76,751
64,512
1,209
876
–
–
–
–
3,608
5,841
5,747
94
6,398
–
–
–
333
–
–
–
–
841
784
–
22,960
26
–
1,312
1,241
–
–
–
–
57
–
1
22,933
71
–
–
–
10,069
53,791
(103)
–
The “other changes” in captions 2.3 and 3.4 relate to the first-time adoption of IAS 32 and 39.
129
Section 16
Minority interests - Line item 210
16.1 Minority interests: analysis
12/31/2005
1.
2.
3.
4.
5.
6.
7.
Share capital
Additional paid-in capital
Reserves
(Treasury shares)
Valuation reserves
Capital instruments
Net income for the year attributable to minority interests
12/31/2004
23,335
3,964
23,317
–
9,757
–
5,140
21,939
3,767
23,310
–
9,880
–
4,100
65,513
62,996
12/31/2005
12/31/2004
Financial assets available for sale
Property, plant and equipment
Intangible assets
Hedges of foreign investments
Cash-flow hedges
Exchange differences
Non-current assets held for sale and
discontinued operations
8. Special revaluation laws
(161)
6,406
–
–
–
–
–
6,383
–
–
–
–
–
3,512
–
3,497
Total
9,757
9,880
Total
16.2 Valuation reserves: analysis
1.
2.
3.
4.
5.
6.
7.
16.4 Valuation reserves - AFS financial assets: analysis
Assets/Values
1.
2.
3.
4.
12/31/2005
Debt securities
Equities
Mutual funds
Equities
Total
130
Positive reserve
Negative reserve
18
21
–
–
(2)
(198)
–
–
39
(200)
16.5 Valuation reserves: changes during the year
Financial Property,
assets plant and
available equipment
for sale
A. Opening balance
Intangible
assets
Hedges of
foreign
investments
Cash-flow Exchange Non-current
Special
hedges differences assets held revaluation
for sale and
laws
discontinued
operations
–
6,384
–
–
–
–
–
3,496
B. Increases
B.1 Increases in fair value
B.2 Other changes
20
–
20
22
–
22
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
16
–
16
C. Decreases
C.1 Decreases in fair value
C.2 Other changes
181
5
176
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(161)
6,406
–
–
–
–
–
3,512
D. Closing balance
131
OTHER INFORMATION
1. Guarantees given and commitments
Operations
1) Financial guarantees
a) Banks
b) Customers
2) Commercial guarantees
a) Banks
b) Customers
3) Irrevocable commitments to make loans
a) Banks
i) certain to be called on
ii) not certain to be called on
b) Customers
i) certain to be called on
ii) not certain to be called on
4) Commitments underlying credit derivatives:
protection sold
5) Assets lodged to guarantee the
commitments of third parties
6) Other commitments
Total
12/31/2005
12/31/2004
–
–
–
919,383
719
918,664
808,257
65,397
65,397
–
742,860
73,688
669,172
258
–
258
1,029,149
685
1,028,464
799,897
10,977
10,977
–
788,920
151,236
637,684
–
–
111,611
–
24,096
–
1,839,251
1,853,400
2. Assets pledged to guarantee for own liabilities and commitments
Portfolio
1.
2.
3.
4.
5.
6.
7.
12/31/2005
Financial assets held for trading
Financial assets at fair value
Financial assets available for sale
Financial assets held to maturity
Loans and advances to banks
Loans and advances to customers
Property, plant and equipment
308,618
–
170,956
10,610
–
–
–
132
4. Analysis of investments relating to unit-linked and index-linked policies
12/31/2005
1. Unit-linked
Mutual funds
Bonds and other debt securities
Liquid funds
Other assets
2. Index-linked
Mutual funds
Bonds and other debt securities
Liquid funds
Other assets
101,953
101,953
–
–
–
680,223
–
627,110
–
53,113
Total
782,176
5. Administration and dealing on behalf of third parties
Type of service
12/31/2005
1. Trading in financial instruments on behalf of third parties
a) Purchases
1. Settled
2. Not settled
b) Sales
1. Settled
2. Not settled
7,892,028
3,820,796
3,804,201
16,595
4,071,232
4,051,625
19,607
2. Portfolio management
a) Individual
b) Collective
5,822
2,079
3,743
3. Custody and administration of securities
a) Third-party securities on deposit: associated
with activities as a custodian bank
(excluding portfolio management)
1. securities issued by consolidated companies
2. other securities
b) Third party securities in custody
(excluding portfolio management): other
1. securities issued by consolidated companies
2. other securities
c) Third-party securities on deposit with third parties
d) Own securities on deposit with third parties
4. Other transactions
30,074,700
–
–
–
14,626,795
3,426,015
11,200,780
14,175,040
1,272,865
–
133
PART C
CONSOLIDATED INCOME STATEMENT
Section 1
Interest- Line item 10 and 20
1.1 Interest income and similar revenues: analysis
Items/technical forms
Performing financial assets Non-performing
loans
Debt securities
Loans
1. Financial assets
held for trading
2. Financial assets
at fair value
3. Financial assets
available for sale
4. Financial assets
held to maturity
5 Loans and advances to banks
6. Loans and advances to customers
7. Hedging derivatives
8. Financial assets transferred but
not derecognized
9. Other assets
Total
Other assets
12/31/2005
12/31/2004
55,678
–
–
6,855
62,533
37,706
1,840
–
–
–
1,840
436
22,488
–
–
–
22,488
22,500
2,893
–
937
x
–
27,245
612,222
x
–
–
314
x
–
–
–
–
2,893
27,245
613,473
–
–
18,159
529,853
–
–
x
25,483
x
–
x
–
83
25,483
83
–
168
83,836
664,950
314
6,938
756,038
608,822
1.3 Interest income and similar revenues: other information
1.3.1 Interest income on foreign currency financial assets
a) on foreign currency assets
134
12/31/2005
12/31/2004
25,726
29,473
1.4 Interest expense and similar charges: analysis
Items/technical forms
1.
2.
3.
4.
5.
6.
7.
8.
Payables
Securities
Other 12/31/2005 12/31/2004
liabilities
Deposits from banks
(64,596)
x
– (64,596)
Due to customers
(64,029)
x
– (64,029)
Debt securities in issue
x (106,037)
– (106,037)
Financial liabilities
held for trading
–
– (18,519) (18,519)
Financial liabilities
at fair value
– (31,622)
– (31,622)
Financial liabilities associated with assets
transferred but not derecognized
(29,483)
–
– (29,483)
Other liabilities
x
x
(2)
(2)
Hedging derivatives
x
x
–
–
Total
(56,062)
(60,462)
(74,166)
–
(34,517)
–
–
–
(158,108) (137,659) (18,521) (314,288) (225,207)
1.6 Interest expense and similar charges: other information
1.6.1 Interest expense on foreign currency liabilities
a) on foreign currency liabilities
12/31/2005
12/31/2004
(26,673)
(6,006)
12/31/2005
12/31/2004
(6)
(39)
12/31/2005
12/31/2004
(1)
(1)
1.6.2 Interest expense on finance leases
a) finance leases
1.6.3 Interest expense on public funds administered
a) on third-party funds under administration
135
Section 2
Commissions – Line items 40 and 50
2.1 Fee and commission income: analysis
Type of service/Segments
12/31/2005
12/31/2004
a) Guarantees given
11,936
b) Credit derivatives
–
c) Management, intermediation and consultancy services: 145,630
1. trading in financial instruments
1,322
2. foreign currency trading
10,742
3. portfolio management
28,592
3.1 individual
19,773
3.2 collective
8,819
4. custody and administration of securities
2,951
5. custodian bank
1,800
6. placement of securities
37,650
7. acceptance of orders
11,157
8. consultancy
4,445
9. distribution of third party services
46,971
9.1 portfolio management
869
9.1.1 individual
439
9.1.2 collective
430
9.2 insurance products
28,338
9.3 other products
17,764
d) Collection and payment services
19,411
e) Services for securitisation transactions
3,333
f) Services for factoring transactions
–
g) Tax collection services
–
h) Other services
113,200
8,515
–
112,867
1,216
10,387
26,201
18,972
7,229
2,957
1,579
32,188
9,163
2,993
26,183
1,177
658
519
13,677
11,329
19,139
3,140
–
–
103,432
Total
247,093
293,510
136
2.2 Fee and commission income: product and service distribution channels (current regulations):
banking group
Channels/Segments
a) Bank branches:
1. portfolio management
2. placement of securities
3. third-party products and services
b) Door-to-door sales:
1. portfolio management
2. placement of securities
3. third-party products and services
c) Other distribution channels:
1. portfolio management
2. placement of securities
3. third-party products and services
12/31/2005
12/31/2004
109,937
32,752
36,314
40,871
3,277
–
1,336
1,941
–
–
–
–
81,975
26,201
30,906
24,868
2,597
–
1,282
1,315
–
–
–
–
12/31/2005
12/31/2004
2.3 Fee and commission expense: analysis
Services/Segments
a) Guarantees received
b) Credit derivatives
c) Management and intermediation services
1. trading in financial instruments
2. trading in foreign currency
3. portfolio management:
3.1 own portfolio
3.2 third-party portfolio
4. custody and administration of securities
5. placement of financial instruments
6. Door-to-door distribution of financial
instruments, products and services
d) Collection and payment services
e) Other services
(182)
–
(8,136)
(993)
(1,292)
(1,550)
(1,550)
–
–
(1,463)
(48)
–
(7,872)
(968)
(830)
(1,977)
(1,977)
–
(9)
(1,428)
(2,838)
(6,545)
(24,234)
(2,660)
(6,488)
(8,208)
Total
(39,097)
(22,616)
137
Section 3
Dividend and similar income - Line items 70
3.1 Dividend and similar income: analysis
Items/Income
A. Financial assets
held for trading
B. Financial assets
available for sale
C. Financial assets
at fair value
D. Equity investments
Total
12/31/2005
Dividends
Income
from mutual
funds
12/31/2004
Dividends
Income
from mutual
funds
16,778
–
21,090
–
4,119
386
3,817
249
–
–
–
x
–
–
–
–
20,897
386
24,907
249
138
Section 4
Net trading income - Line items 80
4.1 Net trading income: analysis
Transactions/Income items
Gains
Trading
profits
1. Financial assets
held for trading
1.1 Debt securities
1.2 Equities
1.3 Mutual funds
1.4 Loans
1.5 Other
25,532
1,690
16,984
6,858
–
–
27,241
4,934
13,654
8,653
–
–
2. Financial liabilities
held for trading
2.1 Debt securities
2.2 Payables
2.3 Other
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
x
x
x
x
14,851
3. Financial assets
and liabilities: exchange
differences
Losses
Trading
losses
Net profit
(loss)
(9,536) (24,614)
(5,687) (1,216)
(3,713) (23,371)
(136)
–
–
–
–
(27)
18,623
(279)
3,554
15,375
–
(27)
4. Derivatives
4.1 Financial derivatives:
– on debt securities and
interest rates
– on equities and
equity indices
– on currency and gold
– other
4.2 Credit derivatives
66,872
66,872
186,582 (13,085) (199,032)
186,582 (13,085) (199,032)
31,879
31,879
66,583
162,760
– (182,302)
47,041
289
x
–
–
23,822 (13,085) (16,730)
x
x
x
–
–
–
–
–
–
(5,704)
(9,458)
–
–
Total
92,404
213,823 (22,621) (223,646)
65,353
139
Section 5
Net hedging gains (losses) - Line items 90
5.1 Net hedging gains (losses): analysis
Income items/Amounts
12/31/2005
A Income from:
A.1 Fair value hedges
A.2 Hedged financial assets (Fair value)
A.3 Hedged financial liabilities (Fair value)
A.4 Cash-flow hedges
A.5 Foreign currency assets and liabilities
–
2,222
–
–
–
Total income from hedging activities (A)
2,222
B. Charges from:
B.1 Fair value hedges
B.2 Hedged financial assets (Fair value)
B.3 Hedged financial liabilities (Fair value)
B.4 Cash-flow hedges
B.5 Foreign currency assets and liabilities
(2,729)
–
–
–
–
Total charges from hedging activities (B)
(2,729)
C. Net hedging gains (losses)
(507)
This caption reports the net results of hedging activities associated with the zero-cost collar referred to earlier.
140
Section 6
Disposal/repurchase gains (losses) - Line items 100
6.1 Disposal/repurchase gains (losses): analysis
Items/income items
Profits
Financial assets
1. Loans and advances to banks
2. Loans and advances to customers
3. Financial assets
available for sale
3.1 Debt securities
3.2 Equities
3.3 Mutual funds
3.4 Loans
4. Financial assets
held to maturity
12/31/2005
Losses
Net result
Profits
12/31/2004
Losses
Net result
–
2
–
–
–
2
–
4
–
–
–
4
7,181
1,319
5,144
718
–
(1,564)
(181)
(1,383)
–
–
5,617
1,138
3,761
718
–
223
–
223
–
–
–
–
–
–
–
223
–
223
–
–
–
–
–
–
–
–
Total assets
7,183
(1,564)
5,619
227
–
227
Financial liabilities
1. Due to other banks
2. Due to customers
3. Debt securities in issue
–
–
2,325
–
–
(697)
–
–
1,628
–
–
–
–
–
–
–
–
–
Total liabilities
2,325
(697)
1,628
–
–
–
141
Section 7
Net change in financial assets and liabilities at fair value - Line items 110
7.1 Net change in financial assets and liabilities at fair value: analysis
Transactions/Income items
1. Financial assets
1.1 Debt securities
1.2 Equities
1.3 Mutual funds
1.4 Loans
2. Financial liabilities
2.1 Debt securities
2.2 Due to other banks
2.3 Due to customers
Gains
25,097
20,971
–
4,126
–
Gains on
disposals
Losses
Losses on
disposals
Net profit
(loss)
17,810 (23,361) (12,900)
9,956 (20,259) (6,960)
–
–
–
7,854 (3,102) (5,940)
–
–
–
6,646
3,708
–
2,938
–
8,797
8,797
–
–
9,442
9,442
–
–
(4,560)
(2,531)
–
(2,029)
(627)
(329)
(298)
–
13,052
15,379
(298)
(2,029)
x
x
x
x
(471)
3. Foreign currency
financial assets and liabilities:
exchange differences
4. Derivatives
4.1 Financial derivatives
– on debt securities and
interest rates
– on equities and
equity indices
– on currency and gold
– other
4.2 Credit derivatives
–
x
–
–
–
x
2,882
–
Total derivatives
–
3,792 (19,896)
Total
–
3,792 (19,896)
(2,882) (18,598)
–
910 (19,896)
– (18,986)
33,894
142
–
x
–
–
–
x
(2,882)
–
–
388
–
–
(2,882) (18,598)
31,044 (47,817) (16,409)
629
Section 8
Net impairment adjustments - Line items 130
8.1 Net adjustments for the impairment of loans: analysis
Transactions/Income items
Adjustments
Specific
Portfolio
Write-offs
Other
Write-backs
12/31/2005 12/31/2004
Specific
Portfolio
A
B
A
B
A. Loans and advances
to banks
B. Loans and advances
to customers
–
–
–
–
–
(4,928) (86,038) (26,509)
7,095
21,358
–
– (89,022) (62,051)
C. Total
(4,928) (86,038) (26,509)
7,095
21,358
–
– (89,022) (62,051)
–
–
–
–
Key:
A = interest
B = other
8.2 Net adjustments for the impairment of AFS financial assets: analysis
Transactions/Income items
A.
B.
C.
D.
E.
Debt securities
Equities
Mutual funds
Loans to banks
Loans to customers
F. Total
Adjustments
Specific
Write-offs
Other
Write-backs
Specific
A
B
12/31/2005
12/31/2004
–
(50)
–
–
–
–
(12,667)
–
–
–
–
x
x
–
–
–
x
–
–
–
–
(12,717)
–
–
–
–
(160)
–
–
–
(50)
(12,667)
–
–
(12,717)
(160)
Key:
A = interest
B = other
The specific adjustments included in the “Other” column of caption B “equity instruments” almost entirely relate to the write-down during the year of the interest held in HOPA SpA, in order to align its carrying value with the range of appraised values identified for that company by
Maurizio Dallocchio.
143
8.4 Net adjustments for impairment of other financial transactions: analysis
Transactions/Income items
A.
B.
C.
D.
Adjustments
Specific
Portfolio
Write-offs
Other
Guarantees given
–
Credit derivatives
–
Commitments to disburse funds –
Other transactions
–
E. Total
–
Write-backs
12/31/2005 12/31/2004
Specific
Portfolio
A
B
A
B
(19)
–
–
–
(657)
–
(50)
–
–
–
–
–
27
–
–
–
–
–
–
–
–
–
–
–
(649)
–
(50)
–
(228)
–
(34)
–
(19)
(707)
–
27
–
–
(699)
(262)
Key:
A = interest
B = other
144
Section 9
Net premium income - Line items 150
9.1 Net premium income: analysis
Premiums from insurance business
A. Life sector
A.1 Gross premiums recorded (+)
A.2 Premiums transferred to reinsurers (-)
A.3 Total
Direct
business
Indirect
business
12/31/2005
340,414
–
340,414
–
x
–
340,414
–
340,414
–
–
–
x
–
–
B. Loss sector
B.1 Gross premiums recorded (+)
B.2 Premiums transferred to reinsurers (-)
B.3 Change in gross amount
of premium reserve (+/-)
B.4 Change in premium reserve
borne by reinsurers (+/-)
B.5 Total
–
–
–
–
–
–
–
–
–
C. Total net premium income
–
–
–
145
Section 10
Other insurance income (charges) - Line items 160
10.1 Other insurance income (charges): analysis
Line items
12/31/2005
1. Net change in technical reserves
2. Period claims settled during the year
3. Other insurance income (charges)
(329,317)
(8,260)
(4,340)
Total
(341,917)
10.2 Analysis of “Net change in technical reserves”
Net change in technical reserves
12/31/2005
1. Life sector
A. Mathematical reserves
A.1 Gross amount for year
A.2 (-) Portion borne by reinsurers
B. Other technical reserves
B.1 Gross amount for year
B.2 (-) Portion borne by reinsurers
C. Technical reserves even though the investment risk
is borne by the insured parties
C.1 Gross amount for year
C.2 (-) Portion borne by reinsurers
Total “Life sector reserves”
(328,238)
(328,238)
–
(1,079)
(1,079)
–
–
–
–
(329,317)
2. Loss sector
Change in the technical reserves of the loss sector,
excluding the claims reserve, net of transfers to
reinsurers
146
–
10.3 Analysis of “Claims relating to the year “
Charges for claims
12/31/2005
Life sector: Charges for claims, net of
transfers to reinsurers
A. Amounts paid
A.1 Gross amount for year
A.2 (-) Portion borne by reinsurers
B. Changes in reserves for amounts to be paid
B.1 Gross amount for year
B.2 (-) Portion borne by reinsurers
(8,206)
(8,206)
–
(54)
(54)
–
Total “Claims - life sector”
(8,260)
Loss sector: Charges for claims, net of
recoveries and transfers to reinsurers
C. Amounts paid
C.1 Gross amount for year
C.2 (-) Portion borne by reinsurers
D. Change in recoveries, net of the portion
borne by reinsurers
E. Change in claims reserve
E.1 Gross amount for year
E.2 (-) Portion borne by reinsurers
–
–
–
–
Total “Claims - loss sector”
–
–
–
–
10.4 Analysis of “Other insurance income/charges, net”
12/31/2005
a) Charges “Life sector”
b) Charges “Loss sector”
(4,340)
–
Total
(4,340)
147
Section 11
Administrative costs - Line items 180
11.1 Payroll costs: analysis
Type of expense/Segments
12/31/2005
12/31/2004
1. Employees
a) wages and salaries
b) social security contributions
c) severance indemnities
d) pension expenses
e) provision for severance indemnities
f) provision for post-retirement benefits
and similar commitments:
– defined contribution
– defined benefit
g) payments to external
supplementary pension funds:
– defined contribution
– defined benefit
h) costs deriving from payment agreements
based on own capital instruments
i) other personnel benefits
2. Other personnel
3. Directors
(286,493)
(207,777)
(54,937)
(556)
(122)
(15,338)
(263,973)
(192,227)
(51,370)
–
–
(12,989)
(2,549)
(2,549)
–
(2,406)
(2,406)
–
(4,413)
(4,413)
–
(4,127)
(4,127)
–
(799)
(2)
(3,193)
(4,007)
(854)
–
(1,801)
(3,222)
Total
(293,693)
(268,996)
11.2 Average number of employees, by level: banking group
12/31/2005
1. Employees
a) Managers
b) Total supervisors
of which: 3rd and 4th level
c) Other employees
2. Other personnel
4.562
93
1,693
847
2,776
39
Total
4,601
11.3 Defined-benefit pension plans: total costs
12/31/2005
12/31/2004
a) Defined benefit pension plans
(1,036)
(1,010)
Total
(1,036)
(1,010)
148
The above costs relate to the allocation of the results of financial management to the pension
fund of Cariprato SpA, net of the flat-rate tax paid on the increase in the value of the securities
held by this pension fund and the insurance charges borne by the fund.
11.5 Other administrative costs: analysis
1.
2.
3.
4.
5.
6.
7.
Indirect taxes and dues
Non-professional products and services
Professional services
Rent paid on buildings
Maintenance of fixed assets
Insurance
Other expenses
Total
149
12/31/2005
12/31/2004
(46,478)
(89,108)
(9,695)
(19,535)
(7,158)
(3,024)
(41,216)
(39,971)
(91,160)
(10,102)
(17,826)
(5,723)
(2,975)
(37,485)
(216,214)
(205,242)
Section 12
Net provisions for risks and charges - Line items 190
12.1 Net provisions for risks and charges: analysis
12/31/2005
12/31/2004
a) Provisions for legal disputes
and other charges
(12,051)
(23,428)
Total
(12,051)
(23,428)
150
Section 13
Net adjustments to property, plant and equipment - Line items 200
13.1 Net adjustments to property, plant and equipment: analysis
Assets/Income items
A. Property, plant and equipment
A.1 Owned
– for business purposes
– for investment purposes
A.2 Held under financial
leases:
– for business purposes
– for investment purposes
Total
Depreciation
Impairment
adjustments
Write-backs
Net result
(14,748)
(14,748)
–
(2)
(2)
–
–
–
–
(14,750)
(14,750)
–
(615)
(615)
–
–
–
–
–
–
–
(615)
(615)
–
(15,363)
(2)
–
(15,365)
Property, plant and equipment are systematically depreciated in each year on a straight-line basis
using rates that reflect the residual useful lives of the related assets.
The value of land associated with free-standing property has been separated from the value of
the building and is not depreciated since it has an indefinite useful life.
151
Section 14
Net adjustments to intangible assets - Line items 210
14.1 Net adjustments to intangible assets: analysis
Assets/Income items
A. Intangible assets
A.1 Owned
– internally
generated
– other
A.2 Held under financial
leases:
Total
Amortization
Impairment
adjustments
Write-backs
Net result
(4,567)
(242)
–
(4,809)
–
(4,567)
–
(242)
–
–
–
(4,809)
–
–
–
–
(4,567)
(242)
–
(4,809)
Intangible assets are amortized systematically each year on a straight-line basis over their estimated useful lives.
152
Section 15
Other operating charges/income - Line item 220
15.1 Other operating charges: analysis
12/31/2005
12/31/2004
1. Other charges
(7,005)
(9,103)
Total
(7,005)
(9,103)
12/31/2005
12/31/2004
2,134
1,682
35,412
–
23,719
2,342
1,787
26,289
34,500
14,692
62,947
79,610
15.2 Other operating income: analysis
1.
2.
3.
4.
5.
Recovery of charges on deposits and overdrafts
Rent received for buildings
Recovery of taxes
Income from securitizations
Other income
Total
The income referred to in point 4. was eliminated on the first-time adoption of IAS 39
(1/1/2005), since it relates to the securitization known as “Berica 5 Residential MBS” which
does not meeting the IAS criteria for derecognition.
153
Section 16
Share of profit (loss) of equity investments - Line item 240
16.1 Share of profit (loss) of equity investments: analysis
Income item/Segments
12/31/2005
12/31/2004
1) Companies under joint control
A. Income
1. Revaluations
2. Profit from disposals
3. Write-backs
4. Other positive changes
B. Charges
1. Write-downs
2. Impairment write-downs
3. Loss from disposals
4. Other negative changes
6,783
–
2,229
–
4,554
–
–
–
–
–
4,341
–
862
–
3,479
–
–
–
–
–
Net result
6,783
4,341
2) Companies subject to significant influence
A. Income
1. Revaluations
2. Profit from disposals
3. Write-backs
4. Other positive changes
B. Charges
1. Write-downs
2. Impairment write-downs
3. Loss from disposals
4. Other negative changes
103
–
–
–
103
(332)
–
–
–
(332)
2
–
–
–
2
–
–
–
–
–
Net result
(229)
2
Total
6,554
4,343
154
Section 17
Net gains (losses) arising on fair value adjustments to property, plant and equipment and intangible assets - Line item 250
17.1 Net gains (losses) arising on fair value adjustments to property, plant and equipment and intangible assets: analysis
Assets/Income item
A. Property, plant and equipment
A.1 Owned:
– for business purposes
– for investment
purposes
A.2 Held under financial
leases:
– for business purposes
– for investment
purposes
B. Intangible assets
B.1 Owned:
B.1.1 internally
generated
B.1.2 other
B.2 Held under financial
leases:
Total
Revaluations Write-downs
Exchange difference
Positive
Negative
Net result
570
570
–
(161)
(161)
–
–
–
–
–
–
–
409
409
–
570
(161)
–
–
409
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
570
(161)
–
–
409
155
Section 18
Adjustments to goodwill - Line item 260
18.1 Adjustments to goodwill: analysis
a) Adjustments to goodwill
12/31/2005
12/31/2004
2,572
–
This caption almost entirely reflects the reduction in the value of the goodwill relating to the former branches of Banca AntonVeneta, acquired on 31 December 2004, following the impairment
test carried out in accordance with IAS 36.
156
Section 19
Gains (losses) on disposal of investments - Line item 270
19.1 Gains (losses) on disposal of investments: analysis
Income item/Segments
A. Buildings
– Disposal gains
– Disposal losses
B. Other assets
– Disposal gains
– Disposal losses
Net result
157
12/31/2005
12/31/2004
571
624
(53)
25
173
(148)
2,499
2,499
–
1.010
2,032
(1,022)
596
3,509
Section 20
Income taxes on current operations - Line item 290
20.1 Income taxes on current operations: analysis
Income item/Segments
12/31/2005
12/31/2004
1.
2.
3.
4.
5.
6.
(76,186)
–
–
(30,873)
32,945
(74,114)
(76,103)
–
–
1,605
10,715
(63,783)
Current taxes (-)
Change in prior period income taxes (+/-)
Reduction in current taxes (+)
Change in deferred tax assets (+/-)
Change in deferred tax liabilities (+/-)
Income taxes for the year
158
Section 21
Profit (loss) after tax on non-current assets held for sale - Line item 310
This section is not used.
159
Section 22
Minority interests - Line item 330
22.1 Analysis of line item 330 “Minority interests”
1.
2.
3.
4.
5.
Cassa di Risparmio di Prato SpA
Banca Nuova SpA
Nordest Mercant SpA
NEM Sgr SpA
PrestiNuova SpA
Total
160
12/31/2005
12/31/2004
4,200
152
780
8
–
4,067
33
–
–
–
5,140
4,100
Section 23
OTHER INFORMATION
1. Collection of receivables on behalf of third parties: debit and credit adjustments
a) Debit adjustments
1. Current accounts
2. Central portfolio
3. Cash
4. Other accounts
b) Credit adjustments
1. Current accounts
2. Transferors of notes and documents
3. Other accounts
12/31/2005
12/31/2004
3,092,576
19,801
3,048,678
24,097
–
3,236,653
12,385
3,198,121
26,147
3,862,934
16,802
3,824,832
21,300
–
3.994.135
13,201
3,957,825
23,109
The difference between the “debit” and “credit” adjustments during the year, Euro 144,077
thousand, is classified in caption 100 “other liabilities”.
161
Section 24
Earnings per share
Basis earnings per share and diluted earnings per share are provided below, as required by para.
70.b) of IAS 33.
Basic earnings per share is determined by dividing the results attributable to the Group (the numerator) by the weighted average number of ordinary shares in the Parent Bank outstanding
during the year (the denominator).
Diluted earnings per share is determined by adjusting the results attributable to the Group and
the weighted average number of shares outstanding to take account of any dilutive effects.
Earnings per share (basic)
Earnings per share (diluted)
12/31/2005
12/31/2004
2.36
2.22
2.29
2.12
Since the Parent Bank issued a convertible bond in 2003, the number of shares outstanding and
the results attributable to the Group have been suitably modified in order to determine the diluted earnings per share.
24.1 Average number of ordinary shares on dilution of the share capital
Weighted average number of ordinary shares
Dilution adjustment
Weighted average number of ordinary shares
(fully diluted)
12/31/2005
12/31/2004
53,341,745
5,871,922
51,450,367
6,049,654
59,213,667
57,500,021
In order to determine the basic earnings per share, the weighted average number of ordinary
shares outstanding is calculated with reference to the number of ordinary shares outstanding at
the start of the year, as adjusted by the number of ordinary shares acquired or issued during the
year multiplied by the number of days such shares were in circulation in proportion to the total
number of days in the year. Treasury shares are not included in the total number of shares outstanding.
In order to determine the diluted earnings per share, the weighted average number of ordinary
shares outstanding is increased by the weighted average number of additional ordinary shares
that would have been outstanding had all potential ordinary shares with a dilutive effect been
converted. The potential ordinary shares with a dilutive effect were treated as if they had been
converted into ordinary shares at the start of the year.
24.2 Other information
Since the Parent Bank has not issued any preferred shares, the results attributable to the holders
of ordinary capital coincide with the Group’s consolidated net income.
162
PART D
SEGMENT INFORMATION
The composition of the various business segments is as follows:
Retail banks:
Product companies:
Service companies:
Banca Popolare di Vicenza ScpA
Cassa di Risparmio di Prato SpA
Banca Nuova SpA
B.P.Vi. Fondi SGR SpA
Nordest Merchant SpA
NEM Sgr
BPV Finance (International) Plc
PrestiNuova SpA
Berica vita SpA
Informatica Vicentina SpA
Immobiliare Stampa SpA
Servizi Bancari SpA
The composition of the various geographical areas is as follows:
Northern Italy:
Central Italy:
Southern Italy
and the Islands:
Other EU countries:
Banca Popolare di Vicenza ScpA
Informatica Vicentina SpA
Immobiliare Stampa SpA
Servizi Bancari SpA
B.P.Vi. Fondi SGR SpA
Nordest Merchant SpA
NEM Sgr
Berica vita SpA
Vicenza Life Ltd
Cassa di Risparmio di Prato SpA
Banca Nuova SpA
PrestiNuova SpA
BPV Finance (International) Plc
Vicenza Life Ltd
163
A. PRIMARY SEGMENT
A.1 Distribution by business segments: income statement
Line items/Segments
Commercial
banks
1.
2.
3.
4.
5.
697,982 29,219
(251,504) (16,478)
248,006
6,127
42,537
1,375
7.
8.
9.
10.
11.
12.
Interest income
Interest expense
Net fee and commission income
Dividends and similar income
Net change in value of financial assets
and liabilities
Net impairment adjustments
to financial assets
Net income from insurance activities
Administrative expenses
Provisions for risks and charges
Net adjustments to property,
plant and equipment
Other operating charges/income
Net result
56,471
Product
companies
14,810
Service
companies
(411)
912
214,010
20,585
Total
145 28,692 756,038
(98) (46,209) (314,288)
(28)
308 254,413
– (22,629) 21,283
–
(102,439)
–
–
– (1,503)
–
(501,682) (13,166) (15,660)
(11,751)
(300)
–
(15,771)
52,161
Other
1,442
72,723
– (102,439)
– (1,503)
20,601 (509,907)
– (12,051)
(5,171)
1,179 (20,174)
27,536 (19,680) 60,929
6,726 (36,296)
205,024
“Net change in value of financial assets and liabilities” comprises income statement captions 80,
90, 100 and 110. “Other operating charges/income” comprises income statement captions 220,
240, 250, 260 and 270. The “Other” column includes the eliminations not considered since they
relate to other segments and consolidation adjustments.
164
A.2 Distribution by business segment: balance sheet
Line items/Segments
Commercial
banks
Product
companies
1.
2.
3.
4.
5.
Service
companies
Other
Total
Loans to customers
14,555,875 52,153
Deposits with banks and liquid assets 1,541,096 87,958
Financial assets
2,306,240 1,655,479
Equity investments
1,091,737
1,200
Property, plant and equipment
and intangible assets
460,581
1,567
6. Other assets
468,675 17,754
218,460 188,702
183 (160,268)
Total assets
235,672 (1,560,064) 20,915,924
1.
2.
3.
4.
Due to customers
Deposits from banks
Financial liabilities
Other liabilities
20,424,204 1,816,111
8,498,841
2,313,900
6,021,887
870,922
3,425 227,675 14,839,128
9,448 (93,959) 1,544,543
3,906 (671,746) 3,293,879
250 (1,050,468) 42,719
869,311
326,344
–
496,131
813,286
323,399
– 94,684 8,593,525
4,570 19,502 2,834,104
– (637,970) 6,197,203
16,418 (170,327) 1,040,412
Total liabilities
17,705,550 1,632,816
20,988 (694,111) 18,665,244
Total indirect deposits
15,838,626
–
– (782,176) 15,056,450
“Loans to customers” comprise asset caption 70. “Deposits with banks and liquid assets” comprise asset captions 10 and 60. “Financial assets” comprise asset captions 20, 30, 40 and 50. “Financial liabilities” comprise liability captions 30, 40, 50 and 60. “Other liabilities” comprise liability captions 80 b), 100, 110, 120 and 130. The “Other” column includes the eliminations not
considered since they relate to other segments and consolidation adjustments.
165
B. SECONDARY SEGMENT
B.1 Distribution by geographical area: income statement
Line items/Geographical area
Northern
Italy
1.
2.
3.
4.
5.
7.
8.
9.
10.
11.
12.
Italy
Central
Italy
Southern
Italy
and Islands
Other
EU
countries
Total
Interest income
520,574 130,480 83,468 21,516 756,038
Interest expense
(236,625) (38,777) (25,520) (13,366) (314,288)
Net fee and commission income
193,050 33,919 30,333 (2,889) 254,413
Dividends and similar income
15,882
3,389
1,448
564 21,283
Net change in value of financial
assets and liabilities
51,258
2,840
9,377
9,248 72,723
Net impairment adjustments
to financial assets
(88,522) (12,553) (1,364)
– (102,439)
Net income from insurance activities (3,806)
–
–
2,303 (1,503)
Administrative expenses
(324,017) (94,298) (87,852) (3,740) (509,907)
Provisions for risks and charges
(7,485) (1,857) (2,709)
– (12,051)
Net adjustments to property,
plant and equipment
(13,104) (3,991) (3,037)
(42) (20,174)
Other operating charges/income
47,085
7,528
6,328
(12) 60,929
Net result
154,290
26,680
10,472
13,582
205,024
“Net change in value of financial assets and liabilities” comprise income statement captions 80,
90, 100 and 110. “Other operating charges/income” comprise income statement captions 220,
240, 250, 260 and 270.
166
B.2 Distribution by geographical area: balance sheet
Line items/Geographical area
Northern
Italy
Italy
Central
Italy
Southern
Italy
and Islands
Other
EU
countries
Total
1. Loans to customers
2. Deposits with banks
and liquid assets
3. Financial assets
4. Equity investments
5. Property, plant and equipment
and intangible assets
6. Other assets
10,766,522 2,411,941 1,618,267
Total assets
14.416,824 2,904,365 2,213,076 1,381,658 20,915,923
1.
2.
3.
4.
Due to customers
Due to other banks
Financial liabilities
Other liabilities
42,398 14,839,128
1,400,564
1,563,381
30,336
60,663
241,535
2,468
79,639
3,677 1,544,543
170,318 1,318,644 3,293,878
9,915
– 42,719
675,033
(19,012)
114,358
73,400
79,817
255,120
5,365,934 1,552,932 1,674,659
2,546,901 54,568 (139,123)
4,246,915 706,331 501,126
555,173 196,748 258,916
103
16,836
–
371,758
742,831
29,575
869,311
326,344
8,593,525
2,834,104
6,197,203
1,040,412
Total liabilities
12.714,923 2,510,579 2,295,578 1,144,164 18,665,244
Total indirect deposits
11,716,602 1,104,600 2,235,248
– 15,056,450
“Loans to customers” comprise asset caption 70. “Deposits with banks and liquid assets” comprise asset captions 10 and 60. “Financial assets” comprise asset captions 20, 30, 40 and 50. “Financial liabilities” comprise liability captions 30, 40, 50 and 60. “Other liabilities” comprise liability captions 80 b), 100, 110, 120 and 130.
167
PART E
INFORMATION ON RISKS AND RELATED HEDGING POLICY
Section 1
Risks of the banking group
1.1 Credit risk
QUALITATIVE INFORMATION
General aspects
The credit policy adopted by the Group over the past year focuses on responding to demand
from individuals and firms, with an emphasis on meeting local needs; special attention has been
given to the risk/yield relationship and to the adequacy of guarantees received, including mortgages, especially for longer-term loans.
The development of business with private customers concentrated on mortgages and personal
loans, for which strong demand is matched by a broad and complete range of products.
Demand from small businesses was mainly satisfied by short-term loans, involving a broad
spread of risk, while the Group’s business with medium and large companies tended to focus on
medium-term loans, especially those backed by mortgage guarantees. In all cases, special care
has been taken in the selection of economic sectors, giving preference to lower risk activities. We
have also supported the special financing needs of businesses.
Credit risk management policies
1. Organisational aspects
Operations have been essentially standardized with regard to the management of credit risk,
with the creation of dedicated functions that perform the various monitoring activities, as envisaged by the Supervisory Instructions (Part IV, Chapter 11, Section II). Each type of activity is
supported by appropriate IT procedures. In particular, the processes for the control of credit
risk involve:
– “routine” controls, carried out at branch level;
– “specialist” controls performed by the Anomalous Loans Unit within the Credit Department,
with a view to preventing insolvency by taking early action to resolve anomalies;
– inspections, carried out by the audit function both on-site and on a remote basis, in order to
verify the quality of loans and the support for decisions taken by the functions responsible for
granting and administering loans.
1.1 Management, measurement and monitoring systems
The risk-management system (SGR) plays an important role in the monitoring and management
of credit risk, allowing account managers to check on changes in the credit status of customers
and identify on a timely basis any deterioration in the standing of borrowers. The workings of
this system are described later in the paragraph on “Impaired financial assets”. From a technical
standpoint, the SGR system generates scores to rank customers in terms of their credit risk.
The system was initially implemented, tested and used operationally (from October 2004) by the
168
Parent Bank; utilization was extended during 2005 to CariPrato (January 2005) and Banca Nuova (April 2005).
The information managed by the internal credit rating system has been analyzed/checked by the
Risk Management office. Based on this analysis and having confirmed the predictive capabilities
of the rating system, a statistical inference engine was built in 2004 and updated in 2005, as fresh
data became available, in order to determine the likelihood of default by borrowers within one
year (the probability that the related positions will be reclassified as watchlist or non-performing
loans within one year). The same work has also been performed at the subsidiary banks, where
activities are at the testing stage.
1.2 Credit risk mitigation techniques
The principal security obtained by the Group’s banks comprises:
– mortgages on property
– pledges of cash and various types of security (government securities, bonds, mutual funds, assets under management, insurance policies, certificates of deposit, foreign securities etc.). Equities, goods and futures are also pledged.
With regard to the way these guarantees are administered, they are obtained via the signature of
proper pledge contracts and mortgages (witnessed by notaries) and included in the automated
“Credit Lines and Guarantee” procedure which manages, controls and monitors them.
Unsecured guarantees are mainly given by:
– individuals in favor of the companies in which they are stockholders and/or directors
– individuals in favor of other individuals who are related by family ties
– guarantee consortia in favor of member companies/personal businesses (under agreements
made with the Bank)
To a limited extent, there are also unsecured guarantees from companies in favor of subsidiaries/associates and from financial institutions essentially in favor of companies
Analysis of these guarantees does not reveal a special degree of concentration within the various
technical forms since, except in particular cases, they are essentially “specific” to each position.
In addition, there are generally no contractual restrictions that might undermine the legal validity of the guarantees obtained.
Lastly, a legal / organizational / information system is used to check the legal and operational effectiveness of guarantees which uses texts and IT support for the various guarantees, prepared
in accordance with ABI instructions, including:
– the process governed by internal regulations, which establish rules for attributing value to the
guarantees obtained (appraisals, confirmation / checking / monitoring of events, with mortgage searches, real-time valuation of quoted securities etc.)
– check of the authenticity of the signatures obtained for the various guarantees (check of company deeds, “witnessing” of signatures by bank personnel, authentication by notaries etc.).
1.3 Impaired financial assets
As described in the section on organisational matters, anomalous loans that are not doubtful are
monitored by both the commercial network and the Anomalous Loans units, whose mission is to
“prevent insolvency”. These units operate within and report to the Credit Department.
169
The main tool used to identify “anomalous” loans is the SGR procedure which provides a
“performance rating”. Each month, this procedure analyzes all private and corporate customers who have borrowed at least 200 euro (the greater of the line of credit and the drawdown), excluding the positions that are already classified as watchlist or non-performing, allocating them a rating that expresses the probability of insolvency on a 12 point scale (AAA,
AA, A, BBB, BB, B, CCC, CC, C, DDD, DD, D+). This classification represents a forecast
for the next 6-12 months.
Based on the rating given, the SGR system suggests an overall classification to the account manager within one of the following three categories: “performing” (BO), under “observation” (OS)
and “high risk” (AR).
The account manager, having assessed the real situation of the customer with regard to all positions that are not automatically classified as “performing”, may:
– agree with the proposed classification and therefore establish a suitable plan for improving
the relationship
– disagree with the proposed classification, being in possession of information that justifies an
exception to the system’s proposal and, therefore, take no action to improve the relationship.
The principal innovation is that account managers are no longer required to justify customer
anomalies, but rather to take preventive action based on the rating forecast in order to minimize
the need for legal action later.
In general, the position remains under “observation” or “high risk” for a maximum of 12
months, after which consideration is given to reclassifying it as performing, or to a worse category (watchlist or non-performing).
Loans in the “watchlist” or “non-performing” categories are not covered automatically by the
SGR procedure and continue to be monitored by the account managers concerned, with support from the units responsible for the control and management of anomalous loans.
The classification of loans as “non-performing” is based on the criteria laid down in the supervisory regulations. Accordingly, this category comprises loans to parties that are insolvent or in
similar circumstances, even if not confirmed by a judge, the recovery of which is the subject of
court action or other suitable measures.
Non-performing loans are administered by an experienced central team at the Parent Bank, using an IT procedure common to all members of the Sec Servizi consortium, while legal activities
are performed by internal specialists.
Recovery action is taken on a pro-active basis, in order to optimize legal procedures and maximize the related economic and financial results. In particular, when evaluating the steps to take,
internal lawyers prefer to take out-of-court action with recourse to settlements that accelerate recoveries and contain the level of costs incurred. Where this route is not applicable, and especially with regard to larger amounts and when greater recoveries can be expected, external lawyers
are instructed to take legal action since this represents both a method of putting legitimate pressure on the debtor and a way to resolve disputes.
Small loans that are uncollectible or difficult to collect are generally grouped together and sold
without recourse, given that legal action would be uneconomic in cost/benefit terms.
For financial reporting purposes, non-performing loans are analyzed in detail to determine the
provisions required to cover expected losses. The extent of the loss expected from each relationship is determined with reference to the solvency of the debtor, the nature and value of the guarantees obtained and the progress made by recovery procedures. Estimates are made on a highly
prudent basis which, following the adoption of IAS 39, now includes discounting criteria.. This
complex evaluation process is assisted by the subdivision of the loan portfolio into similar cate170
gories and year of origin, taking account of the realizable value of the personal and/or corporate
assets of the debtor and the guarantors.
Lastly, the proper performance of the work to administer and evaluate non-performing loans is
assured by both periodic internal audit checks and by external verification activities, carried out
by the Board of Statutory Auditors and the independent auditors.
171
QUANTITATIVE INFORMATION
CREDIT QUALITY
A.1 IMPAIRED AND PERFORMING LOANS SIZE, ADJUSTMENTS, TRENDS, ECONOMIC AND TERRITORIAL DISTRIBUTION
A.1.1 Distribution of financial assets by portfolio and quality of lending (book values)
Portfolio/Quality
Non-performing
loans
1. Financial assets
held for trading
2. Financial assets
available for sale
3. Financial assets
held to maturity
4. Loans and advances
to banks
5. Loans and advances
to customers
6. Financial assets
at fair value
7. Financial assets
being sold
8. Hedging derivatives
Total at 31/12/2005
Banking group
Watchlist Restructured Exposures
loans exposures
past due
Country
risk
Other
assets
Other businesses
Impaired
Other
loans
Total
–
–
–
–
– 1,523,889
–
– 1,523,889
–
–
–
–
– 1,447,533
–
– 1,447,533
–
–
–
–
–
53,770
–
–
1
–
–
–
27,010 1,375,382
–
– 1,402,393
166,648
224,913
–
120,664
–
– 14,839,128
–
–
–
–
–
268,553
–
–
268,553
–
–
–
–
–
–
–
–
–
–
–
133
–
–
–
–
–
133
166,649
224,913
–
120,664
–
– 19,535,399
172
1,290 14,325,613
28,300 18,994,873
53,770
A.1.2 Distribution of financial assets by portfolio and quality of lending (gross and net values)
Portfolio/Quality
Impaired loans
Gross
Specific
Portfolio
exposure adjustments adjustments
A. Banking group
1. Financial assets
held for trading
–
2. Financial assets
available for sale
–
3. Financial assets
held to maturity
–
4. Deposits with banks
300
5. Loans and advances to customers 771,790
6. Financial assets
at fair value
–
7. Financial assets
being sold
–
8. Hedging derivatives
–
Total A
B. Other consolidated
companies
1. Financial assets
held for trading
2. Financial assets
available for sale
3. Financial assets
held to maturity
4. Deposits with banks
5. Loans and advances to customers
6. Financial assets
at fair value
7. Financial assets
being sold
8. Hedging derivatives
Total B
Total at 31/12/2005
Net
exposure
Other assets
Gross
Portfolio
exposure adjustments
Total
Net
exposure
–
–
– 1,523,889
– 1,523,889 1,523,889
–
–
– 1,460,206
12,673 1,447,533 1,447,533
–
299
224,598
–
–
34,969
–
–
–
268,553
–
268,553
268,553
–
–
–
–
–
–
–
133
–
–
–
133
–
133
772,090
224,897
34,969
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
772,090
224,897
34,969
173
– 53,770
1 1,403,392
512,223 14,401,895
512,224 19,111,838
512,224 19,111,838
– 53,770 53,770
1,000 1,402,392 1,402,393
74,991 14,326,904 14,839,127
88,664 19,023,174 19,535,398
88,664 19,023,174 19,535,398
A.1.3 Cash and off-balance sheet exposures to banks: gross and net values
Type of exposure/Amounts
Gross
exposure
Specific
adjustments
Portfolio
adjustments
Net
exposure
300
–
–
–
28,010
1,375,382
299
–
–
–
x
x
–
–
–
–
1,000
–
1
–
–
–
27,010
1,375,382
1,403,692
299
1,000
1,402,393
B. OFF-BALANCE SHEET EXPOSURES
a) Impaired loans
–
b) Other
379,256
–
x
–
–
–
379,256
Total B
–
–
379,256
A.
a)
b)
c)
d)
e)
f)
CASH EXPOSURES
Non-performing loans
Watchlist loans
Restructured exposures
Exposures past due
Country risk
Other assets
Total A
379,256
A.1.4 Cash exposures to banks: dynamics of gross impaired loans and loans subject to “country risk”
Categories
Non-performing
loans
Watchlist Restructured
loans exposures
Exposures
past due
Country
risk
A. Opening gross exposure
of which: sold but not eliminated
from the balance sheet
300
–
–
–
13,133
–
–
–
–
–
B. Increases
B.1 Transfers from performing loans
B.2 Transfers from other categories
of impaired exposure
B.3 Other increases
C. Decreases
C.1 Transfers to performing loans
C.2 Write-offs
C.3 Collections
C.4 Proceeds from disposals
C.5 Transfers to other categories
of impaired exposure
C.6 Other decreases
–
–
–
–
–
–
–
–
14,877
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
14,877
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
D. Closing gross exposure
of which: sold but not eliminated
from the balance sheet
300
–
–
–
28,010
–
–
–
–
–
174
A.1.5 Cash exposures to banks: dynamics of total writedowns
Categories
A. Total opening adjustments
of which: sold but not eliminated
from the balance sheet
Non-performing
loans
Exposures
past due
Country
risk
299
–
–
–
1,000
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
299
–
–
–
1,000
–
–
–
–
–
B. Increases
B.1 Adjustments
B.2 Transfers from other categories
of impaired exposure
B.3 Other increases
C. Decreases
C.1 Write-backs on valuation
C.2 Write-backs due to collections
C.3 Write-offs
C.4 Transfers to other categories
of impaired exposure
C.5 Other decreases
D. Total closing adjustments
of which: sold but not eliminated
from the balance sheet
Watchlist Restructured
loans exposures
A.1.6 Cash and off-balance sheet exposures to customers: gross and net values
Type of exposure/Amounts
Gross
exposure
Specific
adjustments
Portfolio
adjustments
Net
exposure
346,070
302,874
–
122,848
1,290
14,400,604
179,422
45,175
–
–
x
x
–
32,786
–
2,184
–
74,991
166,648
224,913
–
120,664
1,290
14,325,613
15,173,686
224,597
109,961
14,839,128
B. OFF-BALANCE SHEET EXPOSURES
a) Impaired loans
5,412
b) Other
1,461,386
818
x
–
3,286
4,594
1,458,100
Total B
818
3,286
1,462,694
A.
a)
b)
c)
d)
e)
f)
CASH EXPOSURES
Non-performing loans
Watchlist loans
Restructured exposures
Exposures past due
Country risk
Other assets
Total A
1,466,798
175
A.1.7 Cash exposures to customers: dynamics of gross impaired loans and loans subject to “country risk”
Categories
Non-performing
loans
Watchlist Restructured
loans exposures
Exposures
past due
Country
risk
A. Opening gross exposure
of which: sold but not eliminated
from the balance sheet
331,558
189,364
7,136
–
1,813
–
–
–
–
–
B. Increases
B.1 Transfers from performing loans
B.2 Transfers from other categories
of impaired exposure
B.3 Other increases
C. Decreases
C.1 Transfers to performing loans
C.2 Write-offs
C.3 Collections
C.4 Proceeds from disposals
C.5 Transfers to other categories
of impaired exposure
C.6 Other decreases
125,673
17,411
329,786
303,552
–
–
122,848
122,848
–
–
88,462
19,800
111,160
568
50,518
58,970
1,101
6,051
20,183
216,276
31,533
1,250
95,408
16
–
–
7,136
–
239
455
–
–
–
–
–
–
–
–
–
–
523
–
–
523
–
3
–
88,069
–
6,442
–
–
–
–
–
346,071
302,874
–
122,848
1,290
–
–
–
–
–
Watchlist Restructured
loans exposures
Exposures
past due
Country
risk
D. Closing gross exposure
of which: sold but not eliminated
from the balance sheet
A.1.8 Cash exposures to customers: dynamics of total writedowns
Categories
Non-performing
loans
A. Total opening adjustments
of which: sold but not eliminated
from the balance sheet
153,881
31,076
2,357
–
–
–
–
–
–
–
B. Increases
B.1 Adjustments
B.2 Transfers from other categories
of impaired exposure
B.3 Other increases
C. Decreases
C.1 Write-backs on valuation
C.2 Write-backs due to collections
C.3 Write-offs
C.4 Transfers to other categories
of impaired exposure
C.5 Other decreases
97,685
59,612
67,581
49,295
1,104
5
2,184
2,184
–
–
12,549
25,524
72,144
14,530
7,108
50,506
3,222
15,064
20,695
6,249
539
1,250
–
1,099
3,461
–
–
239
–
–
–
–
–
–
–
–
–
–
–
–
–
–
12,549
108
3,222
–
–
–
–
–
D. Total closing adjustments
of which: sold but not eliminated
from the balance sheet
179,422
77,962
–
2,184
–
–
–
–
–
–
176
A.2 CLASSIFICATION OF EXPOSURES BASED ON EXTERNAL AND INTERNAL RATINGS
This section is not used.
177
B. DISTRIBUTION AND CONCENTRATION OF LENDING
B.2 Distribution of loans to non-financial businesses
a)
b)
c)
d)
e)
f)
Other services for sale
Wholesale and retail services, recoveries and repairs
Construction and public works
Textiles, leather, shoes and clothing
Other industrial products
Other sectors
Total
12/31/2005
12/31/2004
2,418,811
1,337,667
951,792
890,759
481,203
2,619,109
1,806,952
1,257,642
815,848
847,088
464,683
2,917,817
8,699,341
8,110,030
12/31/2005
12/31/2004
292,916
1
343,226
2
B.5 Significant risks (pursuant to supervisory regulations)
a) amount
b) number
178
C. SECURITIZATIONS AND DISPOSAL OF ASSETS
The Group’s securitizations
The securitizations carried out by the Group, in accordance with Law 130/99, are described below. They all involve performing loans consisting of mortgages granted to private individuals
and/or businesses resident in Italy.
“Berica MBS Srl” securitization
The first securitization was arranged at the end of 2000 with the following characteristics:
– Vehicle company:
– Group interest in vehicle company:
– Date of assignment of loans:
– Type of loans assigned:
– Quality of loans assigned:
– Guarantees on loans assigned:
– Geographical area of loans assigned:
– Business activity of debtors assigned:
– Number of loans assigned:
– Price of loans assigned:
– Nominal value of loans assigned:
– Excess spread:
– Interest accrued on loans assigned:
Berica MBS Srl
5%
31.12.2000
Mortgage loans
Performing loans
First mortgage
Italy
Individuals, companies
5,360
Euro 340,963 thousand
Euro 324,928 thousand
Euro 14,964 thousand
Euro 1,071 thousand
Morgan Stanley & Co International Limited was chosen to arrange and structure the transaction. The credit rating agencies appointed to carry out due diligence in relation to the transaction were Fitch IBCA, Standard & Poor’s and Moody’s, while Banca Popolare di Vicenza was
appointed to act as servicer of the assigned assets and cash manager. The role of account bank
and paying agent is carried out by Deutsche Bank SpA in Milan, while Credito Fondiario Industriale SpA is the calculation agent and representative of the noteholders.
The characteristics of the asset-backed securities issued on 7 March 2001 are as follows:
Tranche
Rating
Fitch / Moody’s / S&P
Class A1
Class A2
Class B
Class C
Class D (subordinated)
AAA / Aaa / AAA
AAA / Aaa / AAA
A/A/A
BBB / Baa2 / BBB
–
38.09
48.59
5.65
1.88
5.79
131,353
167,565
19,495
6,498
19,926
18
34
75
175
300
–
100.00
344.837
–
Total
1
The spread is linked to 6-month Euribor.
179
Percentage
Amount
%
(in thousands of Euro)
Spread1
(bps)
“Berica 2 MBS Srl” securitization
The second securitization, arranged towards the end of 2001, has the same contents and operating procedures as the first securitization. Its characteristics are as follows:
– Vehicle company
– Group interest in vehicle company:
– Date of assignment of loans:
– Type of loans assigned:
– Quality of loans assigned:
– Guarantees on loans assigned:
– Geographical area of loans assigned:
– Business activity of debtors assigned:
– Number of loans assigned:
– Price of loans assigned:
– Nominal value of loans assigned:
– Excess spread:
– Interest accrued on loans assigned:
Berica 2 MBS Srl
5%
01.12.2001
Mortgage loans
Performing loans
First mortgage
Italy
Individuals, companies
3,903
Euro 318,808 thousand
Euro 302,686 thousand
Euro 15,621 thousand
Euro
501 thousand
Lehman Brothers Inc. was chosen to arrange and structure the transaction. The credit rating
agencies appointed to perform due diligence in relation to the transaction were Standard &
Poor’s and Fitch IBCA, while Banca Popolare di Vicenza was appointed as servicer of the assigned assets and as the collection account bank. The role of cash manager is being performed
by BPVi Fondi Sgr Spa, while Credito Fondiario Industriale SpA is the calculation agent and
representative of the noteholders. The role of account bank and paying agent is carried out by
Deutsche Bank Spa in Milan.
The characteristics of the asset-backed securities issued on 21 February 2002 are as follows:
Tranche
Class A1
Class A2
Class B
Class C
Class D (subordinated)
Total
1
Rating
Fitch / Moody’s / S&P
Percentage
Amount
%
(in thousands of Euro)
Spread1
(bps)
AAA / AAA
AAA / AAA
A/A
BBB / BBB
–
39.56
48.99
4.23
1.43
5.79
127,100
157,400
13,600
4,585
18,584
27
34
65
160
–
–
100.00
321.269
–
The spread is linked to 6-month Euribor. The class D note has a fixed six-monthly coupon of 2% per annum.
180
“Berica 3 MBS Srl” securitization
The third securitization, arranged towards the end of 2002, has the same contents and operating
procedures as the other two securitizations, with the following characteristics:
– Vehicle company:
– Group interest in vehicle company:
– Date of assignment of loans:
– Type of loans assigned:
– Quality of loans assigned:
– Guarantees on loans assigned:
– Geographical area of loans assigned:
– Business activity of debtors assigned:
– Number of loans assigned:
– Price of loans assigned:
– Nominal value of loans assigned:
– Excess spread:
– Interest accrued on loans assigned:
Berica 3 MBS Srl
5%
01.12.2002
Mortgage loans
Performing loans
First mortgage
Italy
Individuals, companies
5,994
Euro 430,846 thousand
Euro 409,653 thousand
Euro 20,154 thousand
Euro 1,039 thousand
Schroder Salomon Smith Barney was chosen to arrange and structure the transaction. The credit
rating agencies appointed to perform due diligence in relation to the transaction were Standard
& Poor’s and Fitch IBCA, while Banca Popolare di Vicenza was appointed as servicer of the assigned assets and as the collection account bank. The role of cash manager is being performed
by BPVi Fondi Sgr Spa. The role of account bank and paying agent is carried out by Deutsche
Bank Spa in Milan, that of calculation agent by Deutsche Bank in London, while Deutsche
Trustee Company Limited acts as the representative of the noteholders.
The characteristics of the asset-backed securities issued on 18 February 2003 are as follows:
Tranche
Class A
Class B
Class C
Class D (subordinated)
Total
1
Rating
Fitch / Moody’s / S&P
Percentage
Amount
%
(in thousands of Euro)
Spread1
(bps)
AAA / AAA
A/ A
BBB / BBB
–
90.27
3.80
0.95
4.98
389,170
16,380
4,100
21,452
35
80
125
–
–
100.00
431,102
–
The spread is linked to 6-month Euribor. The class D note has a fixed six-monthly coupon of 2% per annum.
181
“Berica Residential MBS 1 Srl” securitization
The fourth securitization, arranged towards the end of 2003, repeats the contents and operating
procedures of the previous transactions, but differs by being a multioriginator securitization. In
particular, it provided for the without-recourse assignment of performing residential mortgage
loans to a new vehicle company (SPV) set up by the Parent Bank Banca Popolare di Vicenza together with two other Group banks, Banca Nuova SpA and Cassa di Risparmio di Prato SpA.
The portfolio assigned has the following characteristics:
– Vehicle company:
– Group interest in vehicle company:
– Date of assignment of loans:
– Type of loans assigned:
– Quality of loans assigned:
– Guarantees on loans assigned:
– Geographical area of loans assigned:
– Business activity of debtors assigned:
– Number of loans assigned:
– Price of loans assigned:
– Nominal value of loans assigned:
– Excess spread:
– Interest accrued on loans assigned:
Berica Residential MBS 1 Srl
5%
01.12.2003
Mortgage loans
Performing loans
First mortgage
Italy
Individuals
7,340
Euro 616,112 thousand
Euro 588,672 thousand
Euro 24,900 thousand
Euro 2,540 thousand
Morgan Stanley & Co International Limited was chosen to arrange and structure the transaction. The credit rating agencies appointed to perform the due diligence for this transaction were
Standard & Poor’s and Fitch Ratings, while Banca Popolare di Vicenza was appointed as master
servicer of the assigned assets and as the collection account bank. The role of cash manager is
being performed by BPVi Fondi Sgr Spa. The role of account bank and paying agent is carried
out by Deutsche Bank SpA in Milan, that of calculation agent by Deutsche Bank A.G. in London, while Deutsche Trustee Company Limited acts as the representative of the noteholders.
The characteristics of the asset-backed securities issued on 18 March 2004 are as follows:
Tranche
Class A
Class B
Class C
Class D (subordinated)
Total
1
Rating
Fitch / Moody’s / S&P
Percentage
Amount
%
(in thousands of Euro)
Spread1
(bps)
AAA / AAA
A/ A
BBB / BBB
–
89.93
3.83
1.91
4.33
553,175
23,539
11,769
26,640
20
57
120
–
–
100.00
615,123
–
The spread is linked to 6-month Euribor. The class D note has a fixed six-monthly coupon of 2% per annum.
182
–Berica 5 Residential MBS Srl– securitization
The latest multioriginator securitization, completed towards the end of 2004, provided for the
without-recourse assignment of performing residential mortgage loans to a new vehicle company
(SPV) set up by the Parent Bank Banca Popolare di Vicenza together with two other Group
banks, Banca Nuova and Cassa di Risparmio di Prato. The portfolio assigned has the following
characteristics:
– Vehicle company:
– Group interest in vehicle company:
– Date of assignment of loans:
– Type of loans assigned :
– Quality of loans assigned:
– Guarantees on loans assigned:
– Geographical area of loans assigned:
– Business activity of debtors assigned:
– Number of loans assigned:
– Price of loans assigned:
– Nominal value of loans assigned:
– Excess spread:
– Interest accrued on loans assigned:
Berica 5 Residential MBS Srl
5%
01.11.2004
Mortgage loans
Performing loans
First mortgage
Italy
Individuals
7,507
Euro 711,605 thousand
Euro 675,878 thousand
Euro 34,500 thousand
Euro 1,227 thousand
Morgan Stanley & Co International Limited was chosen to arrange and structure the transaction. The credit rating agencies appointed to perform due diligence in relation to the transaction
were Standard & Poor’s and Fitch Ibca, while Banca Popolare di Vicenza was appointed as master servicer of the assigned assets and as the collection account bank. The role of cash manager is
being performed by BPVi Fondi Sgr Spa. The role of account bank and paying agent is carried
out by Deutsche Bank SpA in Milan, that of calculation agent by Deutsche Bank A.G. in London, while Deutsche Trustee Company Limited acts as the representative of the noteholders.
The characteristics of the asset-backed securities issued on 15 December 2004 are as follows:
Tranche
Class A
Class B
Class C
Class D (subordinated)
Total
1
Rating
Fitch / Moody’s / S&P
Percentage
Amount
%
(in thousands of Euro)
Spread1
(bps)
AAA / AAA
A/ A
BBB / BBB
–
88.84
3.80
2.38
4.98
631,946
27,035
16,897
35,400
12
30
100
–
–
100.00
711,278
–
The spread is linked to 6-month Euribor. The class D note has a fixed six-monthly coupon of 3.2% per annum.
183
“Siena Mortgage 02-3 Srl” securitization
Cassa di Risparmio di Prato SpA, which joined the Banca Popolare di Vicenza Group in March
2003, had already carried out a securitization in June 2002 in accordance with Law 130/99 together with Banca MPS SpA, Banca Toscana SpA and Banca 121 SpA.
This transaction had the following characteristics:
– Vehicle company:
– Group interest in vehicle company:
– Date of assignment of loans:
– Type of loans assigned:
– Quality of loans assigned:
– Guarantees on loans assigned:
– Geographical area of loans assigned:
– Business activity of debtors assigned:
– Number of loans assigned:
including: Cariprato
– Price of loans assigned:
including: Cariprato
– Nominal value of loans assigned:
including: Cariprato
– Excess spread:
including: Cariprato
– Interest accrued on loans assigned:
including: Cariprato
Siena Mortgages 02-3 Srl
0,90%
27.06.2002
Mortgage loans
Performing loans
First mortgage
Italy
Individuals
25,438
2197
Euro 1,712,181 thousand
Euro 146,862 thousand
Euro 1,615,070 thousand
Euro 139,350 thousand
Euro 72,782 thousand
Euro 5,202 thousand
Euro 24,329 thousand
Euro 2,310 thousand
The structuring of the transaction was completed in November 2002, when Siena Mortgages 023 Srl issued the following notes:
Tranche
Class A 1
Class A 2
Class B
Class C
Total
Rating
Fitch / Moody’s / S&P
Percentage
Amount
%
(in thousands of Euro)
Spread1
(bps)
AAA / AAA
AAA / AAA
AA / AA
BBB / BBB
20.00
74.00
4.00
2.00
323,210
1,195,900
64,640
32,320
20
30
55
150
–
100.00
1,616,070
–
184
Accounting treatment of the Group’s securitizations
With regard to the above securitizations, except for the last, the securitized assets were not reinstated on the first-time adoption of IAS 39, as allowed by para. 27 of IFRS 1.
The latest securitization known as Berica 5 Residential Mbs, arranged subsequent to 1/1/2004,
does not meet the derecognition requirements of IAS 39 since the Group subscribed for all of
the junior asset-backed securities issued by the vehicle company. Accordingly, the residual securitized assets were reinstated at the above date and the related junior notes were eliminated, reflecting the excess spread collected on the sale of the loans. These assets have been subjected to
a collective impairment test.
Objectives and goals
With specific reference to objectives and goals, all of these securitization transactions form a
strategic part of the Group’s expectations of further expansion in the mortgage sector and the
general process of expanding bank lending, which requires adequate liquidity to be raised in advance to meet future loan requests.
More specifically, all of the above securitizations carried out by the Group address the following
objectives:
– to free up assets, while improving the treasury position;
– to reduce maturity mismatching between deposits and long-term lending;
– to reduce the ratio of long-term lending to total lending;
– to reduce the ratio of customer loans/deposits.
Type of financial instruments held
With reference to the securitizations arranged by the Group, the following table reports the type
of financial instruments held and the total amount of securitized assets underlying the junior
notes as of 31 December 2005.
185
Financial instruments held
Nominal value
Book value
Berica MBS Srl
– Senior
– Mezzanine
– Junior
–
–
19,926
–
–
6,858
Total
19,926
6,858
Berica 2 MBS Srl
– Senior
– Mezzanine
– Junior
–
8,185
18,584
–
8,345
11,874
Total
26,769
20,219
Berica 3 MBS Srl
– Senior
– Mezzanine
– Junior
2,003
10,100
19,476
2,013
10,328
19,786
Total
31,579
32,127
Berica Residential 1 MBS Srl
– Senior
– Mezzanine
– Junior
–
11,769
26,640
–
12,302
35,550
Total
38,409
47,852
186
Securitized assets underlying Junior securities
Book value
Berica MBS Srl
Own securitized underlying assets:
– Non-performing loans
– Watchlist loans
– Other assets
Third-party securitized underlying assets:
– Non-performing loans
– Watchlist loans
– Other assets
116,416
2,132
2,875
111,409
–
–
–
–
Total
116,416
Berica 2 MBS Srl
Own securitized underlying assets:
– Non-performing loans
– Watchlist loans
– Other assets
Third-party securitized underlying assets:
– Non-performing loans
– Watchlist loans
– Other assets
179,851
6,490
5,829
167,532
–
–
–
–
Total
179,851
Berica 3 MBS Srl
Own securitized underlying assets:
– Non-performing loans
– Watchlist loans
– Other assets
Third-party securitized underlying assets:
– Non-performing loans
– Watchlist loans
– Other assets
262,298
3,503
5,101
253,694
–
–
–
–
Total
262,298
Berica Residential MBS 1 Srl
Own securitized underlying assets:
– Non-performing loans
– Watchlist loans
– Other assets
Third-party securitized underlying assets:
– Non-performing loans
– Watchlist loans
– Other assets
478,104
2,588
8,672
466,844
–
–
–
–
Total
478,104
187
Third-party securitizations
At the end of 2005, the Banca Popolare di Vicenza Group held securities deriving from securitizations carried out by third parties, as follows:
Financial instruments held
– Senior
– Mezzanine
– Junior
Total
Nominal value
Book value
73,152
70,197
–
73,411
70,463
–
143,349
143,874
Details of Senior securities:
ISIN code
Description
IT0003702153
IT0003702211
IT0003856611
IT0003402937
XS0172548397
XS0137443437
IT0003277552
IT0003172613
IT0003653414
ES0309363002
XS0230464314
XS0143891488
FR0010251504
IT0003341770
IT0003188312
DE0006482706
XS0140346098
XS0179206858
XS0232966910
XS0135010410
MEMOSEC04/06 S1 CL A
MEMOSEC04/09 S2 CLA1
LIBECCIO TV 05/15ABS
SCIP SOCIETA CARTOLARIZZAZIONE
SHERWOOD CASTLE FUNDING PLC
ABSOLUTE FUNDING SRL
LINE AAA SRL
LOMBARDA LEASE FINANCE SRL
PMI FINANCE SRL
SANTANDER CONSUMER FINANCE SPA
REC RETAIL PARKS LTD.
CLARE ISLAND BV
EUROPEAN LOAN CONDUIT
SOCIETA CARTO CRED INPS
LOCAT SECURITISATION VEHICLE S
EUROPA LTD.
SMILE SECURITISATION COMPANY B
E-MAC
OXFORD STREET FINANCE LTD
STREAM
Total
188
Nominal value
Book value
7,557
1,463
9,660
5,000
3,000
2,032
3,450
480
2,706
2,268
4,000
4,000
2,500
4,000
5,000
5,000
1,095
4,143
5,000
798
7,649
1,484
9,687
5,021
3,014
2,034
3,455
480
2,710
2,274
4,002
4,008
2,500
4,010
5,020
5,008
1,098
4,158
5,000
799
73,152
73,411
Details of Mezzanine securities:
ISIN code
Description
XS0138491377
XS0190180918
XS0238920655
IT0003188338
FR0010247593
XS0220767106
IT0003872774
IT0003473532
IT0003940050
XS0121825466
IT0003683262
FR0010029231
IT0003951123
IT0003182174
XS0157154567
XS0165443960
XS0235420725
XS0163978066
XS0168666013
XS0184563111
NOVA
SAGRES SOCIEDADE DE TITULARIZA
SMILE 2005 SYNTHETIC B.V
LOCAT SECURITISATION VEHICLE S
FCC PROUDREED PROPERTIES
FOREST FINANCE PLC
FONDO IMFurniture PUBBLICI FUNDIN
CPG SCARL
PHARMA FINANCE SRL
SIENA MORTGAGES
CREDICO FINANCE
LOGGIAS
LOCAT SECURITISATION VEHICLE S
SEASHELL SECURITIES PLC
HOLMES FINANCING PLC
HOLMES FINANCING PLC
PARAGON MORTGAGES PLC
PERMANENT FINANCING PLC
GRANITE MORTGAGES PLC.
GRANITE MORTGAGES PLC.
Total
Nominal value
Book value
3,000
7,000
2,000
4,000
2,500
4,000
6,000
3,000
3,500
3,000
4,000
4,197
4,000
1,000
3,000
3,000
3,000
5,000
2,000
3,000
3,021
6,986
2,001
4,027
2,497
3,992
6,036
3,042
3,500
3,014
4,014
4,232
4,002
1,008
3,015
3,023
2,994
5,024
2,021
3,014
70,197
70,463
The Group does not perform the role of arranger and/or servicer in any of the above securitizations, nor does it have any interest in the related vehicle companies.
Servicer and arranger activities
For all of the Group’s securitizations, Banca Popolare di Vicenza (as well as Cassa di Risparmio
di Prato SpA and Banca Nuova SpA, but only for the last two multioriginator transactions) has
signed specific servicing contracts with the respective vehicle companies to co-ordinate and supervise the management, administration and collection of the securitized mortgages, as well as
recovery in the case of breach of contract by the debtors.
Both contracts require the payment of an annual fee for servicing and recompense for each
position recovered. The function of servicer is carried out by specific structures within the
company, whose work has been duly organized and is checked by the Parent Bank’s internal
auditors, who verify the propriety and conformity of conduct with respect to the terms of the
servicing contract.
Similar servicing contracts were also signed by Cassa di Risparmio di Prato SpA for the “Siena
Mortgage 02-03 Srl” securitization.
With reference to the third-party securitizations known as “Memo Sec” and “Libeccio”, involving the performing and non-performing receivables of the Palermo Chamber of Commerce,
Banca Nuova has entered into a servicing contract with the vehicle companies, to manage credit
collection and recovery, and a cash allocation contract to manage and invest the vehicle company’s cash balances. The servicing contract entails the payment of an annual fee for the service
provided.
189
1.2 MARKET RISK
General aspects
This section describes the principal sources of market risk (interest-rate risk, price risk, exchange risk) and the investment policies adopted by the Bank. The investment portfolio of the
Group’s banks is administered centrally by the Parent Bank’s Finance Department.
1.2.1 Interest rate risk
Interest rate risk represents the risk that the banks will incur losses due to adverse changes in
market rates.
There are three types of rate risk:
– level. Risk associated with an absolute change in the forward structure of interest rates affecting the value of a portfolio position (parallel shifts in the yield curve);
– curve and fundamental. The first identifies the risk affecting the value of the various elements
of a position or a portfolio deriving from a relative change in the structure of interest rates,
while the second derives from the imperfect correlation of the elements of a position;
– credit spread. Risk deriving from changes in the prices of bonds and credit derivatives associated with unexpected changes in the issuer’s credit rating.
The Group’s investment strategies are designed to optimize the risk/yield profile and implemented with reference to the forecast trends in interest rates.
The Group’s investment policy (BPVI also manages the investment portfolios of the other group
banks, under the terms of individual management mandates) is focused on the optimization of
operating results and the reduction of their volatility, taking account of ALM requirements. During 2005, implementation of this strategy involved constant spread trading between the various
maturities on the curve, via both cash transactions and derivative transactions; as well as a steady
reduction in the holdings of government securities, due to the progressive widening of the Italian credit spread, and the positioning of the bond portfolio on short/medium-term maturities,
with particular emphasis on the corporate sector.
1.2.3 Price risk
The price risk represents the risk associated with changes in the value of equity portfolios due to
fluctuations in market prices. This analyzed between:
– generic risk. Change in the price of an equity instrument following fluctuations in the stock
market concerned;
– specific risk. Change in the market price of a specific equity instrument due to revised market
expectations about the financial strength or prospects of the issuer.
The trading portfolio is managed in accordance with the strategic guidelines provided by the
Board of Directors and the tactics provided by the Finance Committee. Consistent with the
above and given the improvement in economic conditions during the year, a steady increase in
equity holdings, with a particular focus on Italy and Europe, was achieved via both cash transactions and alternate strategies with emphasis on the banking sector. The remaining portfolio
was broadly diversified among different issuers and sectors, while remaining within the mandate received.
190
1.2.5 Exchange rate risk
Exchange rate risk represents the risk associated with changes in the value of positions denominated in foreign currencies deriving from unexpected variations in the cross rates.
Support for commercial activities in foreign currency and for trading in foreign securities represents the Bank’s principal source of exchange risk.
Automatic network systems interfaced with a single position-keeping system enable the Finance
Department to monitor constantly, in real time, the currency flows that are instantaneously
transferred to the interbank forex market.
A dedicated team within the Finance Department manages the exchange derivative positions
and products held on own account, in order to meet the various hedging requirements of
customers.
A proprietary control system (Murex) and a system of external pricing (SuperDerivatives) ensures the efficient management of spot and forward flows and options, within the specified operating limits.
All the positions are revalued each day using the European Central Bank’s reference rate and reflect the contribution made by foreign currency activities to the overall profitability of the Bank.
Management and measurement of market risk
This paragraph presents the indicators that are monitored and the related limits, as well as the
first and second level controls over finance department transactions. In general, the limits distinguish between the various types of risk (rate, price and exchange) which, however, are managed
within a unitary framework developed following consistent logic.
There are four operational levels within the finance department of the Parent Bank:
–
–
–
–
operational limits
position limits: concentration and credit risk
stop loss limits
Value at Risk (VaR) limits
The structure of operational limits involves use of the following indicators:
– exchange rate risk: delta in monetary terms (cash equivalent position for spot, forward, exchange derivative portfolio)
– equity risk: delta equivalent (market value of shares and cash equivalent position for equity
derivatives)
– interest rate risk: sensitivity (change in profit or loss on a parallel shift in the reference curve
by one-hundredth of a point)
– maximum invested amount: book value of cash securities/funds (gross of the derivatives’
delta) to ensure that assets and liabilities are balanced within the assigned budget limits.
The position limits set
– limits on the acceptance of credit risk: overall limits are established for the exposure to each
rating class, especially those below investment grade;
– limits on the concentration of lending on individual issuers / issues, with tighter restrictions as
the rating class of the issuer diminishes.
Stop loss limits are monitored with respect to the cumulative realized and unrealized results (including dividends on shares) at the start of each month, backed up by a cumulative check since
the start of the year, with reporting to the responsible decision makers if cumulative losses ex191
ceed twice the monthly stop loss limits.
The operational limits for group banks are governed by specific contracts that establish maximum position, credit risk, concentration risk and VaR limits.
VaR limits: Value at Risk (VaR) represents an estimate of the maximum potential loss on a portfolio of securities due to adverse market conditions.
The Group has not established an overall limit, but set separate limits for the Parent Bank and
for BPV Finance. These limits are established each year with reference to the strategies defined
by the Parent Bank and must be accepted by Board resolutions adopted by the subsidiaries.
The Group and the banks in the Group used a mixed approach throughout 2005 to calculate
this indicator:
– parametric (variance-covariance) for the bond, equity and option element (delta equivalent
method);
– based on historical simulations of the risk relating to OTC rate derivatives (IRS, Caps, Floors
etc.) and of rate risk (spot and exchange derivatives) using the VaR module of the Murex
front office system. This calculation did not cover the subsidiaries in 2005.
The holding period is 10 days and the confidence interval is 95%. For the parametric element,
reference is made to the RiskMetrics standard method: the estimate of volatility and the correlation is based on 250 days (the working year) with a decay factor of 0.94; for the historical simulation element, 250 scenarios (the working year) are used.
The Risk Management Office is responsible for recording the VaR.
The analysis is performed each day for the three Group banks and weekly for BPV Finance,
partly to check that the VaR continues to stay within the parameters set by the Boards of Directors.
With regard to the elements estimated using the parametric method, the system also presents the
situation under two stress scenarios.
The new RiskManager system from RiskMetrics© was implemented in early 2006, thus standardizing the calculations made by the Parent Bank with the adoption of historical simulation
methodology for the entire portfolio, based on 250 scenarios. At the same time, the confidence
interval was raised to 99%, keeping the holding period at 10 days, and limits were fixed for the
three rate, price and exchange categories, without distinguishing between operating units in order to allow greater flexibility. In each case, the risk exposure of the operational units is monitored on a daily basis.
Implementation of the recording system has been completed in relation to the investment portfolio, while work is ongoing with regard to the residual risk element of OTC rate and exchange
derivatives deriving from trading on behalf of customers. This explains why the summation of
the three risk categories is still partly additive.
The change in the recording system will also lead to changes in the stress testing scenarios, using
situations that actually occurred in the past, and a procedure for the back testing of the model
will also be implemented.
This logic will be extended to the other Group banks and companies that are subjected to monitoring in the first half of 2006.
The VaR models are used solely for management control purposes and are not used for the calculation of capital adequacy.
192
The VaR of the entire portfolio
During 2005, the Value at Risk (VaR) 95% at 10 days of BPVi averaged just over Euro 8.6 million (in percentage terms, this is 0.84% of the theoretical market value of the portfolios analyzed), with a maximum and minimum of, respectively, Euro 14.9 million (1.50%) and Euro 3.4
million (0.38%). VaR at the end of 2005 was Euro 7.12 million.
The average VaR (total of the rate risk and price risk elements) over the year for Banca Nuova
was Euro 546 thousand, representing 0.37% of market value, with a peak of Euro 969 thousand (also 0.37% of the related market value). At year end, VaR amounted to Euro 262 thousand (0.30%).
With regard to CariPrato, the average VaR (total of the rate risk and price risk elements) of Euro
530 thousand (0.46% of market value) compares with a maximum of Euro 1.01 million (0.55%
of the related market value). The VaR at 30 December 2005 was Euro 290 thousand (0.38%).
The average VaR (total of the rate risk and price risk elements) of BPV Finance was Euro 920
thousand (0.20% of market value), while the maximum was Euro 1.7 million (0.35%). The VaR
at year end was Euro 975 thousand (0.20%).
VaR regarding rate risk
The average VaR of the Parent Bank in 2005 was about Euro 3.1 million (representing 0.36% of
the theoretical market value of the portfolios analyzed), with a maximum and minimum of, respectively, 4.4 (0.65%) and 1.6 (0.20%). At 30/12/2005 the VaR regarding rate risk was Euro
2.17 million.
With regard to Banca Nuova, the VaR regarding rate risk was Euro 216 thousand (0.14% of
market value), with a maximum of Euro 712 thousand (0.32%). The parameter amounted to
Euro 166 thousand (0.20%) at the end of 2005.
The parameters for CariPrato were as follows: average of Euro 234 thousand (0.21% of market value), maximum of Euro 656 thousand (0.44%) and a year-end value of Euro 187 thousand (0.27%).
For BPV Finance, the average VaR regarding rate risk was Euro 506 thousand (0.11% of market
value), the maximum was Euro 873 thousand (0.19%) and the VaR at year end was Euro 643
thousand (0.13%)
VaR of the equity portfolio (price risk)
The VaR of BPVi’s equity portfolio averaged Euro 5.3 million in 2005, representing 3.08% of
market value. The maximum amounts in value and percentage terms were, respectively, 11 million and 4.48%, with minimums of Euro 1.1 million and 1.94%. The equity VaR at the end of
2005 was Euro 4.58 million.
The equity VaR of Banca Nuova averaged Euro 330 thousand (2.96% of market value), with a
maximum of Euro 772 thousand (4.63%). The parameter amounted to Euro 343 thousand
(3.51%) at the end of 2005.
The parameters for CariPrato were as follows: average of Euro 297 thousand (2.87% of mar193
ket value), maximum of Euro 801 thousand (4.50%) and a year-end value of Euro 103 thousand (1.88%).
The average equity VaR of BPV Finance was Euro 414 thousand (3.31% of market value),
the maximum was Euro 830 thousand (4.66%) while the VaR at year end was Euro 332 thousand (2.34%)
VaR of the exchange risk sector
The VaR of BPVi averaged about Euro 59 thousand for the Spot component (with a maximum
of Euro 181thousand), while the average for the Derivatives component (Fx options) was
Euro 126 thousand with a maximum of Euro 646 thousand. At 30/12/2005 the VaR was Euro
105 thousand.
194
1.2.6 Derivative products
A. Financial derivatives
A.1 Regulatory trading: notional values at the end of period and average
Type of transaction/Underlyings
1.
2.
3.
4.
5.
6.
7.
8.
9.
Debt securities
and interest rates
Listed
Unlisted
Other instruments
12/31/2005
Listed
Unlisted
Listed
Unlisted
Listed
Unlisted
179,534
14,102,176
–
–
7,586,195
–
–
–
73,097,873
35,712,188
37,385,685
39,164,299
15,626,579
23,537,720
4,202,875
2,032,994
1,516,703
516,291
2,169,881
1,665,753
504,128
467,058
466,000
1,058
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,068,912
538,678
101,301
437,377
530,234
92,857
437,377
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,483,390
1,229,153
1,182,753
46,400
1,254,237
1,222,472
31,765
467,058
466,000
1,058
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total
– 134,780,650
–
1,068,912
–
2,950,448
–
–
– 138,800,010
Average
–
–
–
–
–
–
–
–
11.
12.
13.
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Exchange rates and gold
179,534
14,102,176
–
–
7,586,195
–
–
–
73,097,873
35,712,188
37,385,685
39,164,299
15,626,579
23,537,720
650,573
265,163
232,649
32,514
385,410
350,424
34,986
–
–
–
–
–
10.
Forward rate agreements
Interest rate swaps
Domestic currency swaps
Currency interest rate swaps
Basic swaps
Swap of stock indices
Swap of real indices
Futures
Cap options
– purchased
– issued
Floor options
– purchased
– issued
Other options
– purchased
– Plain vanilla
– Exotic
– issued
– Plain vanilla
– Exotic
Forward contracts
– Purchases
– Sales
– Currency against currency
Other derivative contracts
Equities
and equity indices
Listed
Unlisted
196
–
197
–
A.2 Bank book: notional amounts at period end and average
A.2.1 For hedging
Type of transaction/Underlyings
1.
2.
3.
4.
5.
6.
7.
8.
9.
Debt securities
and interest rates
Listed
Unlisted
Exchange rates and gold
Other instruments
12/31/2005
Listed
Unlisted
Listed
Unlisted
Listed
Unlisted
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
40,034
–
–
3,416
–
–
–
19,500
19,500
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
71,183
33,515
33,515
–
37,668
37,668
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
40,034
–
–
3,416
–
–
–
19,500
19,500
–
–
–
–
71,183
33,515
33,515
–
37,668
37,668
–
–
–
–
–
–
Total
–
62,950
–
71,183
–
–
–
–
–
134,133
Average
–
–
–
–
–
–
–
–
–
–
10.
11.
12.
13.
Forward rate agreements
Interest rate swaps
Domestic currency swaps
Currency interest rate swaps
Basic swaps
Swap of stock indices
Swap of real indices
Futures
Cap options
– purchased
– issued
Floor options
– purchased
– issued
Other options
– purchased
– Plain vanilla
– Exotic
– issued
– Plain vanilla
– Exotic
Forward contracts
– Purchases
– Sales
– Currency against currency
Other derivative contracts
Equities
and equity indices
Listed
Unlisted
198
199
A.2.2 Other derivatives
Type of transaction/Underlyings
1.
2.
3.
4.
5.
6.
7.
8.
9.
Debt securities
and interest rates
Listed
Unlisted
Exchange rates and gold
Other instruments
12/31/2005
Listed
Unlisted
Listed
Unlisted
Listed
Unlisted
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
902,134
–
–
76,408
–
–
–
45,658
32,250
13,408
–
–
–
62,587
35,000
–
35,000
27,587
–
27,587
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
371,101
80,499
–
80,499
290,602
203,900
86,702
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
25,907
–
–
–
–
–
–
–
–
–
–
1,800
900
–
900
900
–
900
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
989
500
–
500
489
–
489
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
902,134
–
25,907
76,408
–
–
–
45,658
32,250
13,408
–
–
–
436,477
116,899
–
116,899
319,578
203,900
115,678
–
–
–
–
–
Total
–
1,086,787
–
371,101
–
27,707
–
989
–
1,486,584
Average
–
–
–
–
–
–
–
–
–
–
10.
11.
12.
13.
Forward rate agreements
Interest rate swaps
Domestic currency swaps
Currency interest rate swaps
Basic swaps
Swap of stock indices
Swap of real indices
Futures
Cap options
– purchased
– issued
Floor options
– purchased
– issued
Other options
– purchased
– Plain vanilla
– Exotic
– issued
– Plain vanilla
– Exotic
Forward contracts
– Purchases
– Sales
– Currency against currency
Other derivative contracts
Equities
and equity indices
Listed
Unlisted
200
201
A.3 Financial derivatives: purchase and sale of underlyings
Type of transaction/Underlyings
Debt securities
and interest rates
Listed
Unlisted
A. Trading
portfolio
1. With exchange
of capital
– Purchases
– Sales
– Currency against currency
2. Without exchange
of capital
– Purchases
– Sales
– Currency against currency
B. Bank book:
B.1 For hedging
1. With exchange
of capital
– Purchases
– Sales
– Currency against currency
2. Without exchange
of capital
– Purchases
– Sales
– Currency against currency
B.2 Other derivatives
1. With exchange
of capital
– Purchases
– Sales
– Currency against currency
2. Without exchange
of capital
– Purchases
– Sales
– Currency against currency
202
Equities
and equity indices
Listed
Unlisted
Exchange rates and gold
Other instruments
12/31/2005
Listed
Unlisted
Listed
Unlisted
Listed
Unlisted
–
–
–
–
99,700
49,850
49,850
–
–
–
–
–
180,501
94,521
85,980
–
–
–
–
–
2,985,281
809,335
917,450
1,258,496
– 127,161,671
– 60,337,768
– 66,823,903
–
–
–
–
–
–
887,502
443,751
443,751
–
– 128,936,675
– 61,225,270
– 67,711,405
–
–
–
–
–
–
180,501
94,521
85,980
–
–
–
–
–
2,524,579
570,443
695,640
1,258,496
–
–
–
–
887,502
443,751
443,751
–
–
–
–
–
–
–
–
–
–
–
–
–
71,183
37,668
33,515
–
–
–
–
–
25,907
25,907
–
–
–
–
–
–
–
–
–
–
–
–
–
–
71,183
37,668
33,515
–
–
–
–
–
168,273
101,243
67,030
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
191,480
191,480
–
–
–
–
–
–
–
–
–
–
–
–
–
–
191,480
191,480
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
364,261
81,404
282,857
–
–
–
–
–
1,800
900
900
–
–
–
–
–
898,921
784,595
114,326
–
–
–
–
–
364,261
81,404
282,857
–
–
–
–
–
1,629,243
948,303
680,940
–
203
A.4 Financial derivatives “over the counter”: positive fair value - counterpart risk
Counterpart/Underlyings
Debt securities and interest rates
Gross
Gross
Future
not offset
offset
exposure
Equities and equity indices
Gross
Gross
Future
not offset
offset
exposure
Exchange rates and gold
Gross
Gross
Future
not offset
offset
exposure
Other instruments
Gross
Gross
Future
not offset
offset
exposure
Different underlyings
Offset
Future
exposure
A. Trading portfolio
for supervisory purposes
A.1 Governments and central banks
A.2 Public entities
A.3 Banks
A.4 Financial businesses
A.5 Insurance companies
A.6 Non-financial companies
A.7 Other parties
–
–
87,038
110,092
–
103,625
5,796
–
–
87,038
110,092
–
103,625
5,766
–
–
73,747
114,982
–
77,193
3,710
–
–
–
16
–
–
69
–
–
–
16
–
–
69
–
–
6,366
31,195
–
–
2,100
–
–
1,448
19,210
–
2,770
–
–
–
1,448
19,210
–
2,770
–
–
–
412
10,608
–
1,227
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total at 31/12/2005
306,551
306,521
269,632
85
85
39,661
23,428
23,428
12,247
–
–
–
–
–
B. Bank book
B.1 Governments and central banks
B.2 Public entities
B.3 Banks
B.4 Financial businesses
B.5 Insurance companies
B.6 Non-financial companies
B.7 Other parties
–
–
39,982
42,085
–
15,686
–
–
–
39,982
42,085
–
15,686
–
–
–
1,624
2,270
–
15,042
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3,371
4,064
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
40
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total at 31/12/2005
97,753
97,753
18,936
–
–
7,435
–
–
–
–
–
40
–
–
204
205
A.5 Financial derivatives “over the counter”: negative fair value - financial risk
Counterpart/Underlyings
Debt securities and interest rates
Gross
Gross
Future
not offset
offset
exposure
Equities and equity indices
Gross
Gross
Future
not offset
offset
exposure
Exchange rates and gold
Gross
Gross
Future
not offset
offset
exposure
Other instruments
Gross
Gross
Future
not offset
offset
exposure
Different underlyings
Offset
Future
exposure
A. Trading portfolio
for supervisory purposes
A.1 Governments and central banks
A.2 Public entities
A.3 Banks
A.4 Financial businesses
A.5 Insurance companies
A.6 Non-financial companies
A.7 Other parties
–
–
85,838
232,928
–
50,134
5,963
–
–
85,838
232,928
–
50,134
5,963
–
–
4,388
39,892
–
4,347
234
–
–
85
–
–
–
–
–
–
85
–
–
–
–
–
–
–
–
–
–
–
–
–
1,450
19,797
–
191
38
–
–
1,450
19,797
–
191
38
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total at 31/12/2005
374,863
374,863
48,861
85
85
–
21,476
21,476
–
–
–
–
–
–
B. Bank book
B.1 Governments and central banks
B.2 Public entities
B.3 Banks
B.4 Financial businesses
B.5 Insurance companies
B.6 Non-financial companies
B.7 Other parties
–
–
4,687
11,362
–
–
–
–
–
4,687
11,362
–
–
–
–
–
1,256
1,865
–
–
–
–
–
215
–
–
–
–
–
–
215
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total at 31/12/2005
16,049
16,049
3,121
215
215
–
–
–
–
–
–
–
–
–
A.6 Residual life of financial derivatives “over the counter”: notional value
Underlyings/residual value
Within 12 months
1 to 5 years
A. Trading portfolio
for supervisory purposes
12,257,975 121,713,209
A.1 Financial derivatives on debt
securities and interest rates
9,634,091 120,783,267
A.2 Financial derivatives
on equities and equity indices
138,970
929,942
A.3 Financial derivatives
on exchange rates and gold
2,484,914
–
A.4 Financial derivatives
on other instruments
–
–
B. Bank book
757,782
480,527
B.1 Financial derivatives
on debt securities and interest rates 313,459
452,820
B.2 Financial derivatives
on equities and equity indices
443,334
–
B.3 Financial derivatives
on exchange rates and gold
–
27,707
B.4 Financial derivatives
on other instruments
989
–
Total at 31/12/2005
13,015,757 122,193,736
206
Over 5 years
12/31/2005
4,363,292 138,334,476
4,363,292 134,780,650
–
1,068,912
–
2,484,914
–
293,548
–
1,531,857
293,548
1,059,827
–
443,334
–
27,707
–
989
4,656,840 139,866,333
207
1.3 LIQUIDITY RISK
A. General aspects, management and measurement of liquidity risk
Liquidity risk represents the risk that the assets held in the portfolio become difficult to sell or
that this difficulty is reflected in a loss on disposal. This risk is analyzed between:
– market risk. Loss of value of positions deriving from the need to sell in markets which are not
liquid;
– delivery risk. Risk on maturity or the exercise date of the contracts that the securities to be
delivered to the counterpart are not available in the market in sufficient quantity.
Group banks manage this type of risk in accordance with the operating powers granted to the
Finance Department of the Parent Company. In particular, these instructions require most of the
portfolio to be invested in listed financial instruments with a high rating, making reference to
precise qualitative and quantitative limits. The listing and the high rating facilitate the rapid sale
of these financial instruments.
208
Section 2
Risks pertaining to insurance activities
This section is not used.
209
Section 3
Risks pertaining to other businesses
This section is not used.
210
PART F
CAPITAL
Section 1
Consolidated capital
Definition of consolidated capital
The definition of consolidated capital used by the Group corresponds to the sum of the following equity captions: 140 “Valuation reserves”, 150 “Redeemable shares”, 160 “Equity instruments”, 170 “Reserves”, 180 “Additional paid-in capital”, 190 “Capital”, 200 “Treasury stock”
and 220 “Net income (loss) for the year”.
Nature of the capital adequacy requirement
Since the Banking Group carries out lending activities, it is subject to the requirements of arts.
29 et seq. of Decree 385 dated 1 September 1993 “Consolidated law on banking and lending” or
“TUB”.
Accordingly, the Group must comply with the capital adequacy requirements detailed in the
above legislation.
211
Section 2
Regulatory capital and capital adequacy ratios
2.2 Regulatory capital of banks
A. Qualitative information
12/31/2005
12/31/20041
1. Basic capital (tier 1)
2. Supplementary capital (tier 2)
3. Items to be deducted
1,512,686
818,631
(111,343)
1,002,542
547,577
(136,323)
4. Capital for supervisory purposes
2,219,974
1,413,796
1
The regulatory capital and capital adequacy ratios as of 31/12/2004 were determined in accordance with Bank of
Italy circular 155 (updated on 11/02/2002), without taking account of the so-called “prudent filters” and the effects
of adopting IAS/IFRS.
The regulatory capital as of 31/12/2005 was determined in accordance with Bank of Italy circular 155 “Instructions for reporting regulatory capital and capital adequacy coefficients”, updated
on 11/03/2002, as suitably amended to take account of the “new instructions for prudent filters”
contained in the letter dated 7/12/2005 from the Bank of Italy. The banking group does not contain any instruments to be recognized as “third tier capital”.
The subordinated liabilities included in supplementary capital as of 31/12/2005 are listed below.
Isin code
IT0003078307
XS0210870415
IT0003444574 1
IT0003631659
IT0003631642
IT0003662498
IT0003699649
IT0003748511
IT0003079966
IT0003587364
IT0003611016
IT0003782684
Issue date
Maturity
02-23-2001
02-03-2005
05-02-2003
03-23-2004
04-02-2004
05-21-2004
08-16-2004
11-30-2004
03-02-2001
12-15-2003
01-09-2004
12-15-2004
02-23-2006
02-03-2015
05-02-2009
03-23-2011
04-02-2009
05-21-2010
08-16-2010
11-30-2011
03-02-2006
12-15-2009
01-09-2010
12-15-2011
Rate
Interest rate
Floating Euribor6m + 0.20
Floating Euribor3m + 0.45
Fixed
2.25% 2
Fixed
4.05%
Fixed
3.64%
Fixed
3.97%
Fixed
4.10%
Fixed
3.49%
Fixed
5.00%
Fixed
4.40%
Fixed
4.40%
Fixed
4.18%
Total
1
2
Nominal value
24,985
200,000
299,440
10,000
24,993
25,000
15,000
49,400
10,000
19,970
19,990
20,000
718,778
Bond with right of conversion into Banca Popolare di Vicenza ordinary shares: the bonds can be converted into capital stock at a ratio of 2 shares of par value Euro 3 each for every bond of nominal value Euro 102 each. The right to
convert can be exercised from 1 October 2006 to 31 December 2006. The shares delivered to the bondholders who
decide to convert will have dividend and voting rights from 1 January 2007. The conversion ratio will be changed in
the event of a bonus increase in capital via the issue of shares. Bondholders are entitled to convert early in the event
of extraordinary changes in capital stock.
from 02/05/2007 to 02/05/2009 the annual nominal interest rate is 4.25%.
212
The regulations of the above subordinated bond include an early redemption clause which allows the issuer to repay the loan early, after at least 18 months from the close of the placement
procedure and on authorization from the Bank of Italy, giving notice of at least one month.
These bonds have also a subordination clause under which, in the event of the issuer’s liquidation, the bonds will only be repaid after all other creditors not subordinated in the same way
have been satisfied.
1. Risk-weighted assets
2. Tier 1 capital/ Risk-weighted assets
(Tier 1 capital ratio)
3. Capital for supervisory purposes /
Risk-weighted assets (Total capital ratio)
1
12/31/2005
12/31/20041
19,337,650
15,221,375
7.82%
6.59%
11.48%
9.29%
The regulatory capital and capital adequacy ratios as of 31/12/2004 were determined in accordance with Bank of
Italy circular 155 (updated on 11/02/2002), without taking account of the so-called “prudent filters” and the effects
of adopting IAS/IFRS.
Risk assets were determined in accordance with Bank of Italy circular 155 “Instructions for reporting regulatory capital and capital adequacy coefficients”, updated on 11/03/2002.
1. Capital adequacy with respect to primary capital
2. Overall capital adequacy
1
12/31/2005
12/31/20041
9.57%
14.04%
7.55%
10.64%
The regulatory capital and capital adequacy ratios as of 31/12/2004 were determined in accordance with Bank of
Italy circular 155 (updated on 11/02/2002), without taking account of the so-called “prudent filters” and the effects
of adopting IAS/IFRS.
213
PART G
AGGREGATION OF COMPANIES AND BUSINESSES
This part is not used.
214
PART H
RELATED PARTY DISCLOSURES
1. Information on the remuneration of directors and managers
The remuneration of the directors and strategic managers of the Parent Bank is as follows:
12/31/2005
Directors
Managers
1.956
2.653
Total
4.609
The emoluments of the directors of the Parent Bank include their attendance fees and allowances, as well as the allocation from the 2004 net income of the Parent Bank paid during the
year.
With regard to the “strategic managers”1 of the Parent Bank, the amount stated comprises the
remuneration paid, as well as the severance indemnities accrued during the year. The remuneration paid includes the allocation of shares in the Parent Bank and any other benefits in kind.
1
“Strategic managers” comprise the Parent Bank’s general management team, as well as the related staff managers.
215
PART I
EQUITY-BASED PAYMENTS
This part is not used.
216
ATTACHMENT TO THE CONSOLIDATED EXPLANATORY NOTES
– Transition to IAS/IFRS
– Balance sheets and income statements of the consolidated companies
217
ADOPTION OF IAS/IFRS
REGULATORY BACKGROUND
Regulation EC 1606/2002 requires the companies listed on regulated markets within the European Union to prepare – from 1 January 2005 – consolidated financial statements in accordance
with the IFRS (International Financial Reporting Standards – previously known as IAS) issued by
the IASB and endorsed by the European Commission.
By Decree 38 dated 28 February 2005, the Italian State – as allowed by art. 5 of the above Regulation – considerably extended the application of IAS/IFRS requiring, in particular, that they be
adopted by the banks and finance companies subjected to Bank of Italy supervision.
More specifically, these standards must be adopted for the preparation of the 2005 consolidated
financial statements of banking groups and may be adopted for the individual financial statements of each bank (which must apply IAS/IFRS from 2006).
Accordingly, Banca Popolare di Vicenza has prepared the consolidated financial statements as of
31 December 2005 in accordance with IAS/IFRS and the recent instructions issued by the Bank
of Italy under its powers to regulate the “technical form” of the financial statements of banks
and finance companies2.
2
In this regard, the Bank of Italy published Circular 262 at the end of December 2005 regarding the formats and rules
for preparing bank financial statements in accordance with IAS/IFRS, together with the calendar for changes to the
system of supervision between 2005 and 2006.
218
CHANGES INTRODUCED BY IAS/IFRS
The new international accounting standards have introduced significant changes to the way results and balances are reported, with major effects for the recognition of transactions, the classification of balance sheet and income statement items and the related accounting policies.
The changes to the way assets and liabilities are recognized reflect application of the general
principle of economic substance over legal form; in particular, under Italian GAAP the transfer
of legal title is sufficient for recognition of the exchanged asset in the financial statements of the
purchaser – and for the corresponding derecognition in the financial statements of the seller –
while under IAS/IFRS, the risks and benefits associated with the asset, such as the right to receive the related cash flows, must also be transferred.
For the Banca Popolare di Vicenza Group, this particularly affects the recording of securitized
loans which, given that the related risks and benefits have not been permanently transferred,
have been “reinstated” in the consolidated financial statements.
Another innovation relates to the initial recognition of financial instruments that must be stated
at fair value, as uplifted by the transaction costs directly attributable to the purchase or issue of
the financial assets or liabilities concerned. Transaction costs are the costs directly attributable to
the purchase, issue or sale of a financial asset or liability, that would not have been incurred had
the business not purchased, issued or sold the financial instrument concerned. This income and
expense is allocated to the income statement over the life of the transaction with referent to the
effective rate of return (“amortized cost” method).
The criteria for the recognition of certain types of intangible asset have also changed, since international accounting standards do not allow the capitalization of research, advertising and training costs, and define the characteristics required of intangible assets (identifiability, control over
the asset and existence of future economic benefits).
With regard to the classification of assets and liabilities, there have been significant changes affecting financial instruments. International accounting standards require loans, securities,
payables and derivative contracts to be recorded with reference to the reason for which they are
held, rather than by their nature as under Italian GAAP.
The new rules for the classification of financial instruments introduced by IAS 39 supersede the
distinction between “investment” and “trading” securities by analyzing financial assets into the
following categories: assets held for trading, assets at fair value, assets held to maturity, availablefor-sale assets, and loans and receivables. There are two categories of financial liability: liabilities
at fair value and other financial liabilities.
Financial instruments must be classified upon initial recognition and may only be reclassified in
limited circumstances; the only reclassification allowed is from “AFS assets” to “assets held to
maturity”, if there is a change in the intention to hold the related financial instruments.
A further significant change relates to equity investments. Under Italian GAAP, all investments
in equity instruments are classified as equity investments, while under IAS/IFRS this classification only relates to holdings in subsidiaries, associates and joint ventures. The other equity instruments must be classified either as assets held for trading or as AFS assets.
The principal changes in valuation criteria on the introduction of IAS/IFRS relate to financial
instruments, property, plant and equipment and intangible assets.
With reference to financial instruments, assets held to maturity, loans and receivables and other
financial liabilities are stated at “amortized cost”, while assets held for trading, assets and liabilities at fair value and AFS assets are stated at their fair value. With particular reference to this last
category, the effects of valuation are not recorded in the income statement, but are classified as
219
part of stockholders’ equity until the related assets have been realized.
If financial instruments are not classified as assets held for trading or among the assets and liabilities at fair value, international accounting standards require that they be subjected to systematic
impairment testing and, therefore, verification of the effective recoverability of the asset reported in the balance sheet.
An important innovation introduced by international accounting standards with regard to the
write-down of loans relates to the assessment of the time needed to collect the amounts deemed
to be recoverable which, therefore, must be discounted.
With regard to hedging derivatives, IAS 39, which governs the measurement of financial instruments, profoundly modifies the hedging principles adopted previously and reverses the approach by establishing that the point of reference is the “hedging instrument” and no longer the
“hedged instrument” which must now be valued on a basis consistent with the “hedging instrument”.
In this regard, the international standards distinguish between three types of hedge: hedging of
the fair value of a financial asset or liability, with changes in the fair value of both the hedged instrument and the hedging instrument reflected in the income statement; hedging of cash flows
that varying as a function of a given risk and hedging of an investment in a foreign operation denominated in foreign currency, which involve the recognition in equity of changes in the fair value of the hedging contract (while the hedged asset or liability remains recorded at cost or amortized cost).
This criterion reflects the need to state all derivative contracts at fair value (including hedging
derivatives). By contrast, hedging derivatives were normally stated at cost under Italian GAAP,
consistent with the criterion adopted in relation to the hedged items.
In order to classify a derivative instrument as a hedge under IAS, the relationship between the
hedging and hedged instruments must be formally documented and the hedge must be “highly
effective”. A hedge is normally regarded as highly effective if, at inception and throughout its
life, the changes in the fair value or cash flows of the hedged item are almost entirely offset by
the changes in the fair value or cash flows of the hedging instrument.
IAS 39 also allows application of the fair value option (FVO), being the designation of financial
assets and liabilities, or groups of financial assets and liabilities, as measured at fair value
through the income statement when this results in more meaningful information, reduces the
complexity of the regulations for recording hedge transactions and hybrid instruments, or results in more reliable measurements.
The changes concerning the valuation of property, plant and equipment and intangible assets relate to the option to change from the historical cost basis to fair value, with any changes in value
recorded in an equity reserve (except for changes in the value of investment property, which is
measured at fair value through the income statement). IAS/IFRS no longer require the periodic
amortization of intangible assets with indefinite useful lives, such as goodwill, but rather the performance of periodic impairment tests of their value.
With specific reference to the consolidated financial statements, international accounting standards require all subsidiaries to be consolidated even if their activities are dissimilar to those of
the Parent Bank. As a result, the Banca Popolare di Vicenza Group has consolidated Berica Vita
and Vicenza Life, insurance companies, on a line-by-line basis, rather than valuing them using
the equity method as previously required by Decree 87/92.
220
Adoption of IAS/IFRS by the Banca Popolare di Vicenza Group
In order to facilitate the transition from the previous regulations to the new international accounting standards, the IASB issued IFRS 1 on the first-time adoption of international accounting standards. This standard requires the presentation of at least one set of comparative financial
statements on presentation of the first financial statements prepared in accordance with international standards. The Banca Popolare di Vicenza Group has prepared the first financial statements in accordance with the new accounting standards at the end of 2005; accordingly, the
“transition date” for the adoption of IAS/IFRS was therefore 1 January 2004, being the start of
the prior year, except for the adoption of IAS 32 and 39 regarding the measurement of financial
instruments and derivatives, and IFRS 4 on insurance contracts, for which a transition date of
1/1/2005 was chosen, as allowed by para. 36A of IFRS 1.
The above exemption reflects awareness by the IASB of the extreme difficulty of reconstructing
the accounting aspects and the measurement of financial transactions, such as lending, trading,
hedging etc., that took place in prior years. This difficulty was further compounded by the delay
– December 2004 – with which the two accounting standards concerned (IAS 32 and 39) were
endorsed by the European Commission.
The Banca Popolare di Vicenza Group has consequently prepared an opening balance sheet in
accordance with IAS/IFRS at the “IAS/IFRS transition date” (1/1/2004). Except for IAS 32 and
39, the accounting standards adopted as of 1 January 2004 were those issued by IASB and approved by Regulation EC 1725/2003, as subsequently modified and supplemented, having regard for the classification and valuation options allowed by certain of these standards which are
explained in detail in the following section.
With regard to the first-time adoption of international accounting standards, IFRS 1 requires:
• the preparation of an opening balance sheet under IAS/IFRS at the transition date (1 January
2004);
• the application of IAS/IFRS in the first financial statements prepared in accordance with the
new standards and in all the comparative accounting schedules;
• the preparation of explanatory notes on the economic and financial impact and the effect on
cash flows of the transition to IAS/IFRS.
The opening balance sheet (1 January 2004 for all IAS/IFRS except for IAS 32, 39 and IFRS 4,
for which the reference date is 1 January 2005) must comply with IAS/IFRS and, accordingly,
must:
• report all the assets and liabilities to be recognized in accordance with international accounting standards;
• eliminate the assets and liabilities that cannot be recorded under IAS/IFRS;
• reclassifying the reported captions in accordance with the new rules;
• measure all recorded assets and liabilities in accordance with IAS/IFRS.
At the time of transition, the application of international accounting standards involves the making of certain strategic decisions, described below, with regard to:
•
classification of financial instruments into the various IAS/IFRS categories;
• the accounting policies to apply if alternate options are available;
• exemptions to the retrospective application of these standards to the 2004 financial statements.
In view of the significance of the effect of these changes in accounting policy on the consolidated financial statements of the Banca Popolare di Vicenza Group, the effects of the first-time
adoption of IAS/IFRS are described in the following pages.
221
FIRST-TIME ADOPTION OF IAS/IFRS BY THE BANCA POPOLARE DI
VICENZA GROUP
Consolidated stockholders’ equity and consolidated net income determined in accordance with
Decree 87/92 are reconciled below with those determined in accordance with IAS/IFRS, as required by para. 39.a) and b) of IFRS 1. As required by para. 38 of this standard, the effects on
consolidated stockholders’ equity and the consolidated income statement of the first-time adoption of IAS/IFRS are also described below3.
As already mentioned, the effects on the Group’s balance sheet and income statement deriving
from the adoption of IAS/IFRS have been determined with reference to 1/1/2004 as the
“IAS/IFRS transition date”, except with regard to IAS 32, 39 and IFRS 4 for which the transition date was 1/1/2005, as allowed by para. 36A of IFRS 1. Except where stated, amounts are
shown in thousands of euro.
3
The effects reported are those deriving from the IAS/IFRS issued by the IASB and approved by Regulation EC
1725/2003, as subsequently modified and supplemented, and described in the “explanatory notes” which follow the
table below.
222
Impact of first-time adoption of IAS/IFRS
for the Banca Popolare di Vicenza Group
223
Explanatory notes
As already mentioned, the effects on the balance sheet and income statement of the BPVi Group
deriving from the adoption of IAS/IFRS have been determined with reference to 1/1/2004 as
the “IAS/IFRS transition date”, except with regard to IAS 32, 39 and IFRS 4 for which the transition date was 1/1/2005, as allowed by para. 36A of IFRS 1.
Accordingly, the opening IAS/IFRS balance sheet was prepared at the “IAS/IFRS transition
date” (1/1/2004). The accounting standards adopted for this purpose were those issued by the
IASB and approved by Regulation EC 1725/2003, as subsequently modified and supplemented,
having regard for the classification and valuation options allowed by certain of these standards
which are explained in detail further below.
Preparation of the opening balance sheet as of 1/1/2004 under IAS/IFRS required revision of
the scope of consolidation. In particular, Vicenza Life Ltd and Berica Vita SpA, insurance companies, were consolidated on a “line-by-line basis” rather than, as in the past, using the “equity
method” or, in the latter case, at “cost”. Sec Servizi Scpa, a service company previously consolidated on a “proportional basis”, was consolidated using the “equity method”, as allowed by IAS
31 (para. 38 et seq.). Lastly, the holding in 21 Partner Sgr Spa, previously consolidated on a
“proportional basis”, has been deconsolidated since it will be sold and has been valued in accordance with IFRS 5.
The scope of consolidation as of 31/12/2004 was revised on a similar basis. In addition to confirming the decisions made with reference to 1/1/2004, the holding in Linea Spa, a finance company, was consolidated using the “equity method”, as allowed by IAS 31 (para. 38 et seq.),
rather than on the “proportional basis” used to prepare the 2004 consolidated financial statements under Italian GAAP.
The scope of consolidation of the BPVi Group under IAS/IFRS as of 1/1/2004 and 31/12/2004
is presented below.
224
Scope of consolidation under IAS/IFRS as of 1 January 2004
LINE BY LINE
CONSOLIDATION
BANCA POPOLARE DI VICENZA
BPVi Fondi S.p.A.
100%
100%
Nordest Merchant S.p.A.
Berica Vita S.p.A.
99%
100%
Immobiliare Stampa S.p.A.
99.605% 100%
Banca Nuova S.p.A.
Cariprato S.p.A.
79%
BPV Finance
International Plc
99.994%
100%
Informatica Vicentina S.p.A.
Vicenza Life Ltd
CONSOLIDATED ON
PROPORTIONAL BASIS
1%
22.920%
SEC Solutions SCpA
1%
CARRIED AT
EQUITY
49,00%
1%
1.630%
46.314%
SEC Servizi SCpA
25%
Linea S.p.A.
225
25%
Magazzini Generali
e Derrate S.p.A.
Scope of consolidation under IAS/IFRS as of 31 December 2004
LINE BY LINE
CONSOLIDATION
BANCA POPOLARE DI VICENZA
99.138% 100%
Banca Nuova S.p.A.
BPVi Fondi S.p.A.
1%
Berica Vita S.p.A.
99%
100%
Informatica Vicentina S.p.A.
Cariprato S.p.A.
79%
100%
Immobiliare Stampa S.p.A.
100% 99.994%
Nordest Merchant S.p.A.
100%
BPV Finance
International Plc
Vicenza Life Ltd
CONSOLIDATED ON
PROPORTIONAL BASIS
1%
22.920%
SEC Solutions SCpA
1%
CARRIED AT
EQUITY
49.00%
1.017%
1.655%
20%
47.114% 32.203%
SEC Servizi SCpA
25%
Nuova Merchant S.p.A.
226
Linea S.p.A.
Magazzini Generali
e Derrate S.p.A.
International accounting standards applied and valuation criteria
The following paragraphs describe the accounting decisions made and the recognition, valuation
and classification criteria adopted in relation to the most significant balances, in order to determine the impact of the first-time adoption of IAS/IFRS.
Property, plant and equipment
On the first-time adoption (FTA) as of 1/1/2004 of IAS/IFRS, use of the “cost method” for the
valuation of investment property and property used for operating purposes was replaced by
their fair value, which was considered to be representative of their initial deemed cost for IAS
purposes. The fair value of property at the transition date was determined with reference to a
specific appraisal prepared by Praxi for this purpose. With regard to free-standing property, the
value of land was also separated from that of the related buildings.
Subsequent to FTA, property, plant and equipment has been valued as follows:
– buildings used for operating purposes have been valued using the “cost method”, in accordance with para. 30 of IAS 16; the residual useful lives of such buildings were also revised
and the depreciation charge for 2004 was redetermined; where identified separately, the value
of land has not been depreciated;
– investment property has been stated at fair value, as required by para. 33 of IAS 40;
On FTA, use of the “cost method” for the valuation of works of art and assets held as investments was replaced by their fair value, which was considered to be representative of their initial
deemed cost for IAS purposes. Fair value was determined with reference to a specific appraisal
prepared by an independent expert for this purpose.
The remaining property, plant and equipment was stated on FTA at their carrying value as of
31/12/2003, which was considered representative of their deemed cost for IAS purposes, and
has subsequently been valued using the “cost method”.
Intangible assets
These were valued as follows:
– purchased goodwill and goodwill arising on consolidation and on application of the equity
method: as allowed by para. 13.a) of IFRS 1, the Group has elected not to apply IAS 22 retrospectively to the business combinations that took place prior to the IAS/IFRS transition date.
Consequently, the value of these intangibles at the transition date was taken to be their book
value as of 1/1/2004. In accordance with IAS 38, the amortization charged to the 2004 income statement was also eliminated, with the reinstatement of the book value of the related
intangible assets which were subjected to impairment testing at both 1/1/2004 and
31/12/2004;
– other intangible assets: the intangible assets recorded as of 1/1/2004 that did not meet the
recognition criteria established by IAS 38 were written off against stockholders’ equity and
the related amortization charged to the 2004 income statement was reversed; conversely, intangible assets meeting the IAS 38 recognition requirements were maintained at their carrying
value as of 31/12/2003, considered representative of their initial deemed cost for IAS purposes, and have subsequently been valued using the “cost method”.
227
Tax assets / Tax liabilities
Tax assets / liabilities have been recorded in accordance with IAS 12.
The effects of the first-time adoption of IAS/IFRS were determined by calculating – where considered appropriate and correct – the related current and deferred tax effects using the Ires rate
of 33% and the Irap rate of 4.25%.
In accordance with para. 52b of IAS 12, no provision for deferred taxation has been recorded in
relation to the reserves and revaluation surpluses that are in suspense for tax purposes, since
their distribution is not envisaged; in this regard, the Group has not carried out, and has no
short or medium-term plans to carry out, any activities which could give rise to the payment of
deferred taxes.
Non-current assets held for sale
These assets – where present – have been valued at the lower of their carrying value or their fair
value net of selling costs.
Due to banks / Due to customers
Amounts due to banks and customers have been recorded at “amortized cost”, taking the values
as of 31/12/2004 as the starting point for IAS purposes. Accordingly, there are no effects associated with the first-time adoption of IAS/IFRS.
Provision for severance indemnities and other payroll costs
IFRIC has determined that the provision for severance indemnities is a “post-employment benefit” and, accordingly, is covered by IAS 19. The valuation carried out by an independent actuary,
applying the methodology envisaged for “defined-benefit plans”, did not identify any significant
differences with respect to the amount calculated in accordance with Italian law, except in relation to CariPrato. Accordingly, the amount determined in accordance with Italian law has been
retained, except with the regard to the above subsidiary, for which the appraised value determined by the actuary has been used.
Provisions for risks and charges
There were no effects associated with the first-time adoption of IAS/IFRS in relation to both
“pensions and similar obligations” and “other provisions for risks and charges”.
Redeemable shares
There are no shares which are redeemable by stockholders at a fixed price. Accordingly, there
are no effects associated with the first-time adoption of IAS/IFRS.
Equity instruments
The derivative implicit in the convertible bonds issued by the Bank has been separated in accordance with IAS 32, and the equity element has been classified as part of stockholders’ equity.
228
Portfolio securities and securities issued
The securities held as of 1/1/2005 were allocated to the categories envisaged by IAS 39 (“financial assets held for trading”, “financial assets at fair value”, “AFS financial assets” and “financial
assets held to maturity”) on the basis determined by the Board of Directors. Certain securities,
for which the loan element prevails over the financial element, were reclassified as “loans”. The
securities classified as “financial assets held to maturity” were valued at “amortized cost” with
reference to the initial values as of 31/12/2004 for IAS purposes, given that the effect of “transaction costs” incurred prior to that date was not significant, and there was therefore no impact
on stockholders’ equity as of 1/1/2005. The securities classified in other categories were stated at
fair value as of 1/1/2005, and the difference with respect to their book value as of 31/12/2004
was recorded as part of stockholders’ equity. The fair value of portfolio securities was determined on the basis described further below.
Securities issued were classified among the liabilities valued at “amortized cost”, except for
those covered by the fair value option. The values reported in the financial statements as of
31/12/2004 were taken as the starting point for IAS purposes, given that the effect of “transaction costs” incurred prior to that date was not significant. Own securities held by the Group
were eliminated from the balance sheet (both assets and liabilities) and any differences were
recorded as part of stockholders’ equity.
Assets / Liabilities covered by the fair value option
The fair value option is applied to value financial assets and/or liabilities that are correlated or
hedged by derivatives for which the application of hedge accounting rules is particularly complex and difficult.
Due from banks
The amounts due from banks reported in the financial statements reflects their estimated realizable value. This amount was obtained by deducting forecast losses from the total amount paid
out. The adoption of IAS/IFRS had no effect on these balances.
Due from customers
Amounts due from customers were recorded at “amortized cost”, net of expected losses on individual loans or classes of similar loans.
For “amortized cost” purposes, the value reported in the financial statements as of 31/12/2004
was taken as the starting point for IAS purposes, given that the effect of “transaction costs” incurred prior to that date was not significant.
Forecast losses were determined as follows:
• non-performing loans: the losses forecast when preparing the financial statements as of
31/12/04 were uplifted by the effect of discounting loans, having regard for the recovery periods estimated by the business functions concerned;
• watchlist loans: the losses on watchlist loans of Euro 150,000.00 or more, identified when
preparing the financial statements as of 31/12/04, were uplifted by the effect of discounting
them, having regard for the recovery periods estimated by reference to historical-statistical
data; smaller watchlist loans and larger amounts not subject to a specific credit risk were written down on an overall basis, considering historical-statistical data and taking account of the
effects of discounting;
• restructured loans: the losses forecast when preparing the financial statements as of 31/12/04
were uplifted by the effect of discounting loans;
229
• performing loans: these were grouped into classes by level of risk and each was written down
on an overall basis, using the same percentage for each class. These overall write-downs were
determined using a “pseudo Basel 2” model, allocating to each class of risk a “probability of
default” (PD) and a “loss given default” (LGD) determined with reference to historical-statistical data. The determination of realizable value also took account of the discounting effect,
having regard for the recovery periods estimated by reference to historical-statistical data.
Loans represented by “repurchase agreements” and loans to BPVi Group companies were not
written down since they are not subject to credit risk.
Securitizations
In prior years the BPVi Group arranged a number of transactions to securitize performing loans.
As allowed by para. 27 of IFRS 1, the loans securitized prior to 1 January 2004 were not reinstated on the first-time adoption of IAS 39. The securitization known as Berica 5 Residential Mbs,
arranged subsequent to 1/1/2004, does not meet the derecognition requirements of IAS 39 since
the Parent Bank subscribed for all of the junior asset-backed securities issued by the vehicle
company. Accordingly, the securitized loans were reinstated. The following adjustments were
made with regard to the above securitization:
• elimination of the excess spread collected by the Group at the time of securitizing the loans;
• “reinstatement” of the loans securitized by the Group;
• collective test of impairment of the above securitized loans that were still outstanding on
1/1/2005.
Derivative contracts
The derivative contracts previously classified as hedges, but not meeting the hedge accounting
requirements of IAS 39, were reclassified as trading derivatives and stated at fair value, with an
effect on stockholders’ equity as of 1/1/2005.
Indeed, both trading and hedging derivatives were stated at fair value as of 1/1/2005, determined on the basis described further below. Their valuation also took account of the effect of
“counterparty risk”.
Lastly, implicit derivatives were separated from financial assets and liabilities, where the related
requirements of IAS 39 were met.
Equity investments
The carrying value of investments consolidated on a line-by-line basis, including their assets and
liabilities, off-balance sheet transactions, as well as income and expenses, was eliminated against
the related interest in their stockholders’ equity at the time they were acquired or consolidated
for the first time; any excess amounts were allocated, where possible, to the assets and liabilities
of the subsidiaries concerned or, otherwise, to “goodwill”.
With regard to the equity investments consolidated on a proportional basis, the related assets, liabilities, off-balance sheet transactions, income and expenses were consolidated in proportion to
the equity interests held, and the book value of these investments was offset against the Group’s
interest in the related stockholders’ equity; any excess amounts were allocated, where possible,
to the assets and liabilities of the companies concerned or, otherwise, to “goodwill”.
Equity investments in associates and companies under joint control were valued using the equity
method, adjusting the carrying value of the investment to reflect the Group’s interest in its stockholders’ equity at the time of purchase or on initial consolidation. Differences emerging at the
230
time the investments were first consolidated, where not attributable to specific asset and liability
captions, were allocated to “Goodwill”.
Subsequent changes were allocated to equity investments, with the matching entry to the statement of income caption, “Income (loss) from investments”.
Where significant, equity interests classified as “assets held for trading” and as “AFS financial
assets” were stated at fair value on the basis described further below.
Equity investments classified as “non-current assets held for sale” pursuant to IFRS 5 were valued at the lower of carrying value or their fair value net of selling costs.
Criteria for determining the fair value of financial instruments
The fair value of securities at 1/1/2005 was determined as follows:
• Securities listed on active markets
The fair value of the financial instruments traded on an “active market” was determined as follows:
– equity and debt instruments listed by Borsa Italia: the official price on the last trading day
of the reference period;
– equity and debt instruments listed on foreign stock exchanges: the official price (or other
equivalent price) on the last day of the reference period;
– units in mutual funds and sicavs: the official price (or other equivalent price) of the units
on the last day of the reference period.
• Securities not listed on active markets
The fair value of the financial instruments not traded on an “active market” was determined as
follows:
– he price supplied by other sources of information, such as Bloomberg, where available and
reliable;
– if the Bloomberg price was not available, other sources / valuation techniques were used,
such as:
- Italian debt securities: the present value of the cash flows expected from the securities
concerned, considering the current yields at period end on securities with similar maturities; in particular:
- based on the swap rates for fixed rate securities;
- based on the gross yield of treasury certificates (CCT) with the same residual maturities
for floating-rate securities.
Determination of the fair value of Italian debt securities took account of any “counterpart risk”
and/or “liquidity risk”; for this purpose, the price of the security determined using the above
methodology was adjusted by the credit spread that reflects the credit risk associated with the issuer;
– foreign debt securities: the last ICMA price recorded during the reference period;
– units in mutual funds and sicavs: the latest value of the units communicated by the management company;
– capital accumulation insurance policies: the redemption value determined with reference
to the issue regulations.
• equity instruments not listed on an “active market” whose fair value cannot be determined reliably on the above basis were valued at cost, as adjusted to take account of any significant impairment of value.
The fair value of derivative contracts as of 1/1/2005 was determined as follows:
• derivative contracts traded on regulated markets: fair value was taken to be their market price
on the last trading day of the year;
• derivative contracts traded over the counter: fair value was taken to be their market value at
the reference date, determined for each type of contract on the following basis:
231
– contracts on interest rates: market value was taken to be the so-called “replacement cost”, determined by discounting back to the expected settlement dates, the differences between flows
at contract rates and flows at market rates, calculated on an objective basis, current at yearend for equivalent residual maturities;
– option contracts on securities, currencies and other assets: market value, represented by the
theoretical premium at the reference date, was determined by using the Black & Scholes formula, or other equivalent methods.
For contracts traded over the counter, fair value was determined by adjusting their market value,
where positive, by the “credit risk” associated with the counterpart. The adjustment recorded on
the first-time adoption of IAS 32 and 39 was classified as part of stockholders’ equity.
The fair value of the equity instruments classified as “AFS financial assets” as of 1/1/2005 was
determined as follows:
• investments in companies listed on “active markets”: fair value was taken to be their market
price on the last trading day of the year;
• investments in companies not listed on “active markets”: if significant, fair value was taken to
be the value determined by independent appraisals or recent transactions, where available, or
otherwise the interest held in the stockholders’ equity reported in the latest financial statements approved by the company; insignificant equity investments are carried at cost.
232
NOTES ON THE EFFECTS OF THE TRANSITION TO IAS/IFRS ON CONSOLIDATED
STOCKHOLDERS’ EQUITY AND THE CONSOLIDATED INCOME STATEMENT
The principal effects of adopting IAS/IFRS on the consolidated stockholders’ equity and the
consolidated income statement of the BPVi Group are described below.
Effects on stockholders’ equity as of 1/1/2004
The effects on stockholders’ equity as of 1/1/2004 deriving from the adoption of international
accounting standards (excluding the effects of adopting IAS 32, 39 and IFRS 4) are set out below:
– property, plant and equipment: the gross positive effect includes Euro 137.2 million deriving
from the use of fair value to replace the cost of property held by the Group at the IAS/IFRS
transition date, and Euro 36.0 million deriving from the use of fair value to replace the cost of
works of art and assets held as investments at the transition date;
– intangible assets: the gross adverse effect of Euro 26.2 million comprises Euro 16.4 million
deriving from the elimination of charges linked with the solidarity fund established pursuant
to Law 449/97, and Euro 9.8 million from the elimination of other deferred charges that are
no longer recognized under IAS 38;
– defiscalization: the gross positive effect of Euro 57.8 million reflects the reinstatement in 2004
of the value of the investment held in BNL due to the effect of eliminating of fiscal interference;
– reserve for possible loan losses: the gross positive effect of Euro 13.7 million reflects the reclassification of the reserve for possible loan losses to stockholders’ equity, since IAS 37 does
not recognize provisions recorded to cover potential liabilities;
– leased assets: the gross positive effect of Euro 1.6 million reflects the adoption of finance leasing methodology on the transition to IAS, while the gross adverse effect of Euro 0.8 million
relates to the recognition of the related liability to the leasing company;
– deferred taxes: the gross positive effect of Euro 4.7 million reflects the recognition of deferred
tax assets deriving from certain temporary differences, while the gross adverse effect of Euro
1.3 million relates to the recognition of deferred tax liabilities deriving from certain temporary differences;
– severance indemnities: the gross positive effect of Euro 1.3 million relates to the measurement
in accordance with IAS 19 of the liability for severance indemnities due to the employees of
Cariprato;
– bonuses: the gross adverse effect of Euro 1.7 million relates to the valuation pursuant to IAS
19 of the charge for employee bonuses;
– net profit (loss) of investments carried at equity: the gross adverse effect of Euro 43 thousand
relates to the valuation using the equity method of the investments held in Sec Servizi Scpa
and Linea Spa;
– tax effect: the net adverse impact of recognizing deferred tax assets and liabilities in relation
to the above effects is Euro 43.5 million.
Overall, net of tax effect, the adoption of IAS/IFRS (excluding the effects of IAS 32, 39 and
IFRS 4) had a positive effect on stockholders’ equity as of 1/1/2004 of Euro 178.8 million, of
which Euro 9.2 million is attributable to third parties and Euro 169.6 million is attributable to
the Group.
233
Effects on the income statement and reserves as of 31/12/2004
The effects on the 2004 income statement of adopting international accounting standards (excluding the effects of IAS 32, 39 and IFRS 4) were as follows:
– adjustments to property, plant and equipment: the gross positive effect of Euro 1.5 million
was due to the lower depreciation charge for 2004 on the Group’s property;
– adjustments to intangible assets: the principal effects relate to the elimination of the amortization of purchased goodwill and goodwill arising on consolidation and on application of the
equity method charged to the 2004 income statement, Euro 80.5 million; elimination of the
amortization recorded in the 2004 income statement linked with charges to the solidarity
fund established pursuant to Law 449/97, Euro 2.1 million; and the expensing of charges incurred in 2004 that cannot be deferred under IAS 38, Euro 0.6 million;
– defiscalization: the gross adverse impact of Euro 57.8 million reflects the elimination of the
extraordinary income recorded in 2004 on the reinstatement of the value of the equity investment held in BNL, due to the effect of eliminating of fiscal interference;
– change in the reserve for general banking risks: the gross positive effect of Euro 41.5 million
reflects the elimination of the provision made to this reserve in 2004, which is no longer allowed under IAS; this positive effect on the income statement is offset by a corresponding adverse effect on the equity reserves reported for 2004;
– leased assets: the gross adverse effect of Euro 0.6 million reflects the depreciation charge for
the year on leased assets, which is offset by an equal gross positive effect representing the reduction in the financial charges on the liability to the leasing company;
– deferred taxes: the gross adverse effect of Euro 2.0 million relates to the release during the
year of deferred tax assets recorded on FTA, while the gross positive effect of Euro 18 thousand reflects the release of deferred tax liabilities recorded on FTA;
– stock granting: the gross adverse effect of Euro 2.2 million relates to the elimination of extraordinary income recorded in the 2004 income statement on the release of excess employment provisions following the granting of shares in the Parent Bank based on 2003 performance; this adverse effect on the income statement was offset by a corresponding positive effect on the equity reserves reported for 2004;
– payroll costs and other administrative costs: the adverse effects reflect the recognition as a
2004 cost of the shares granted to employees based on their length of service or the attainment of specific results, Euro 0.9 million; and the cost of the directors’ participation in the
net income for 2003, Euro 0.7 million; the expensing of these charges had a corresponding
positive effect on the reserves reported for 2004. The positive effects comprise the change in
the valuation under IAS 19 of the provision for employee severance indemnities, Euro 18
thousand, and the provision for employee bonuses, Euro 139 thousand;
– net profit (loss) of investments carried at equity: the positive effect of Euro 0.2 million reflects
the results, net of tax effect, of the investments carried at equity;
– tax effect: the net adverse impact of recognizing deferred tax assets and liabilities in relation
to the above effects is Euro 11.3 million.
Overall, net of tax effect, the positive impact on net income for 2004 of adopting IAS/IFRS (excluding the effects of IAS 32, 39 and IFRS 4) was Euro 50.4 million, of which Euro 0.4 million is
attributable to minority interests and Euro 50.0 million is attributable to the Group, while the
corresponding adverse impact on equity reserves as of 31/12/2004, entirely attributable to the
Group, was Euro 37.7 million.
The overall positive effect on the stockholders’ equity attributable to the Group as of
31/12/2004 was therefore Euro 181.8 million.
234
Effects on stockholders’ equity as of 1/1/2005 deriving from the first-time adoption of IAS 32 and 39
The effects on stockholders’ equity as of 1/1/2005 deriving from the first-time adoption of IAS
32 and 39 are described below:
– valuation of loans: the gross negative effect of Euro 52.2 million was almost entirely due to
the discounting of recoverable loans, which was not required under Italian GAAP;
– valuation of portfolio securities: the gross positive effect of Euro 10.6 million mainly relates to
the recognition at fair value of the portfolio securities classified as “financial assets held for
trading” and “AFS financial assets”;
– elimination of own securities: the gross adverse effect of Euro 36 thousand reflects the loss on
offsetting own securities held against the related liability for securities issued;
– elimination of intercompany securities: the gross adverse effect of Euro 6.3 million reflects the
loss on offsetting the holding of securities issued by group companies against the related liability for securities issued by other group companies;
– valuation of equity investments at fair value: the gross adverse effect of Euro 9.0 million reflects the valuation at fair value of equity investments that were previously carried at cost;
– net profit (loss) of investments carried at equity: the adverse effect of Euro 8.0 million relates
to the impact, net of tax effect, deriving from the application of IAS 32 and 39 by Linea
S.p.A. and Sec Servizi Scpa, which are consolidated using the equity method;
– valuation of BPVi convertible bonds: the gross positive effect of Euro 12.3 million reflects the
separation of the equity element embedded in the bond, with the gross adverse effect of Euro
3.4 million relates to the related “amortized cost” element;
– valuation of the bond exchangeable for BNL shares: the gross adverse effect of Euro 23.3 million comprises Euro 20.9 million on the separation of the implicit derivative embedded in the
bond and its valuation at fair value, as well as Euro 2.4 million reflecting the related “amortized cost” element;
– valuation of bonds under the FVO: the gross adverse effect of Euro 37.3 million relates to the
valuation at fair value of own securities “hedged” by derivative contracts, which are also stated at fair value;
– valuation of derivative contracts: the gross positive effect of Euro 27.5 million reflects the valuation under the fair value option of the contracts correlated with the own bonds referred to
above, and the reclassification as trading derivatives at fair value of certain contracts previously classified as hedges;
– Berica 5 Residential MBS securitization: the negative effect of Euro 35.4 million reflects the
elimination of the excess spread recorded at the time of the securitization; the gross positive
effect of Euro 1.5 million reflects the results for the period deriving from this transaction,
while the gross adverse effect of Euro 0.7 million relates to the valuation of securitized loans;
– insurance companies: the gross adverse effect of Euro 4.4 million reflects the impact of adopting IAS/IFRS on the Group’s insurance companies;
– tax effect: the net positive impact of recognizing deferred tax assets and liabilities in relation
to the above effects was Euro 39.5 million.
Overall, net of tax effect, the adverse impact on stockholders’ equity as of 1/1/2005 of adopting
IAS 32, 39 and IFRS 4 was Euro 88.9 million, of which Euro 2.9 million attributable to minority
interests and Euro 86.0 million attributable to the Group.
Net of tax effect, the positive impact on stockholders’ equity (including net income for the year)
of adopting IAS/IFRS was Euro 102.6 million, of which Euro 6.7 million attributable to minority interests and Euro 95.9 million attributable to the Group.
235
BALANCE SHEETS AND STATEMENTS OF INCOME
OF THE CONSOLIDATED COMPANIES
237
BANCA NUOVA S.p.A.
BALANCE SHEET AT 31 DECEMBER 2005
in Euro
Assets
12.31.2005
12.31.2004
(excluding IAS 32 and 39)
10. Cash and balances with central banks
31,901,457
21,337,020
20. Financial assets held for trading
138,972,206
247,699,548
40. Financial assets available for sale
31,346,001
26,948,504
499,799,827
323,927,301
1,618,888,025
1,288,270,999
9,915,353
2,430,867
110. Property, plant and equipment
25,991,713
32,041,478
120. Intangible assets
of which: – goodwill
53,825,771
52,531,727
55,649,805
55,031,727
130. Tax assets
a) current
b) deferred tax assets
18,872,477
8,032,767
10,839,710
17,962,227
7,264,119
10,698,108
166,460,737
–
150. Other assets
88,659,685
56,595,584
Total assets
2,684,633,252
2,072,863,334
60. Loans and advances to banks
70. Loans and advances to customers
100. Equity investments
140. Non-current assets held for sale and discontinued operations
238
Equity and liabilities
12.31.2005
12.31.2004
(excluding IAS 32 and 39)
10. Deposits from banks
13,641,718
41,000,546
1,695,179,672
1,446,531,314
417,595,011
298,423,946
40. Financial liabilities held for trading
43,541,728
1,882,317
50. Financial liabilities at fair value
39,988,877
21,321,677
80. Tax liabilities:
a) current
b) deferred
14,716,449
11,393,499
3,322,950
12,010,328
5,192,781
6,817,547
162,460,737
–
100. Other liabilities
75,197,281
58,238,111
110. Provision for severance indemnities
13,652,512
13,286,558
5,592,167
5,592,167
4,000,162
4,000,162
130. Valuation reserves
11,009,679
9,611,683
160. Reserves
61,768,153
26,022,008
170. Additional paid-in capital
89,683,261
108,066,287
180. Share capital
28,542,876
28,542,876
200. Net income (loss) for the year (+/-)
12,063,131
3,925,520
2,684,633,252
2,072,863,334
20. Due to customers
30. Debt securities in issue
90. Liabilities associated with assets held for sale and disposal groups
120. Provisions for risks and charges:
b) other provisions
Total Equity and Liabilities
239
BANCA NUOVA S.p.A.
STATEMENT OF INCOME FOR THE YEAR ENDED 31 DECEMBER 2005
in Euro
Captions
12.31.2005
12.31.2004
(excluding IAS 32 and 39)
10. Interest income and similar revenues
89,511,114
68,066,764
20. Interest expense and similar charges
(27,101,775)
(22,000,579)
30. Net interest income
62,409,339
46,066,185
40. Fee and commission income
36,608,951
28,903,947
50. Fee and commission expense
(4,097,705)
(3,306,050)
60. Net fee and commission income
32,511,246
25,597,897
70. Dividend and similar income
1,447,961
1,092,112
80. Net trading income
9,438,196
7,464,985
100. Gains (losses) on disposal or repurchase of:
a) loans and advances
d) financial liabilities
(17,080)
(88)
(16,992)
–
–
–
110. Net change in financial assets and liabilities at fair value
(44,044)
120. Net interest and other banking income
105,745,618
80,221,180
130. Net impairment adjustments to:
a) loans and advances
b) financial assets available for sale
d) other financial transactions
(1,364,068)
(1,385,926)
–
21,858
(1,599,714)
(1,654,562)
20,288
34,560
140. Net income from financial activities
104,381,550
78,621,466
150. Administrative costs:
a) payroll
b) other administrative costs
(91,137,177)
(48,553,605)
(42,583,572)
(75,239,607)
(38,582,431)
(36,657,176)
160. Net provisions for risks and charges
(2,708,570)
(1,672,025)
170. Net adjustments to property, plant and equipment
(2,804,462)
(2,310,242)
180. Net adjustments to intangible assets
(232,871)
(252,642)
190. Other operating charges/income
5,757,008
9,777,626
(91,126,072)
(69,696,890)
158,000
128,000
(2,500,000)
–
140,593
1,461
250. Profit (loss) from current operations before tax
11,054,071
9,054,037
260. Income taxes on current operations
(1,818,745)
(5,128,517)
270. Profit (loss) from current operations after tax
9,235,326
3,925,520
280. Profit (loss) after tax on non-current assets held for sale
2,827,805
–
12,063,131
3,925,520
200 Operating costs
220. Net gains (losses) arising on fair value adjustments to property, plant and equipment and intangible assets
230. Adjustments to goodwill
240. Gains (losses) on disposal of investments
290. Net income (loss) for the year
240
CARIPRATO S.p.A.
BALANCE SHEET AT 31 DECEMBER 2005
in Euro
Assets
12.31.2005
12.31.2004
(excluding IAS 32 and 39)
10. Cash and balances with central banks
24,199,241
26,324,203
20. Financial assets held for trading
170,187,020
210,275,297
40. Financial assets available for sale
60,692,406
57,905,033
50. Financial assets held to maturity
10,655,472
11,678,010
299,876,616
85,065,688
2,413,936,742
2,103,832,986
2,467,677
2,362,731
108,039,007
108,817,279
120. Intangible assets
of which: – goodwill
6,318,497
5,764,659
6,240,752
5,764,659
130. Tax assets
a) current
b) deferred tax assets
22,173,668
14,484,968
7,688,700
14,021,840
11,568,902
2,452,938
150. Other assets
73,400,288
65,101,910
Total assets
3,191,946,634
2,691,625,729
60. Loans and advances to banks
70. Loans and advances to customers
100. Equity investments
110. Property, plant and equipment
242
Equity and liabilities
12.31.2005
12.31.2004
(excluding IAS 32 and 39)
431,085,299
99,715,058
1,553,023,808
1,453,603,891
458,287,472
627,139,643
31,390,860
2,057,045
216,652,270
–
80. Tax liabilities:
a) current
b) deferred
32,704,879
17,076,350
15,628,529
35,084,473
13,870,445
21,214,028
100. Other liabilities
112,696,148
112,896,901
110. Provision for severance indemnities
17,344,771
16,407,155
120. Provisions for risks and charges:
a) pensions and similar commitments
b) other provisions
52,794,708
46,324,417
6,470,291
51,971,867
45,047,452
6,924,415
130. Valuation reserves
45,801,920
46,652,122
103,362,003
109,928,877
13,502,766
13,502,766
103,300,000
103,300,000
19,999,730
19,365,931
3,191,946,634
2,691,625,729
10. Deposits from banks
20. Due to customers
30. Debt securities in issue
40. Financial liabilities held for trading
50. Financial liabilities at fair value
160. Reserves
170. Additional paid-in capital
180. Share capital
200. Net income (loss) for the year (+/-)
Total Equity and Liabilities
243
CARIPRATO S.p.A.
STATEMENT OF INCOME FOR THE YEAR ENDED 31 DECEMBER 2005
in Euro
Captions
12.31.2005
12.31.2004
(excluding IAS 32 and 39)
10. Interest income and similar revenues
132,938,828
112,928,137
20. Interest expense and similar charges
(43,726,403)
(33,168,673)
30. Net interest income
89,212,425
79,759,464
40. Fee and commission income
41,391,313
40,752,285
50. Fee and commission expense
(2,670,486)
(2,633,917)
60. Net fee and commission income
38,720,827
38,118,368
70. Dividend and similar income
3,388,962
4,036,757
80. Net trading income
4,307,783
2,622,524
–
–
18,295
(3,143)
21,438
–
–
–
110. Net change in financial assets and liabilities at fair value
(1,486,532)
–
120. Net interest and other banking income
134,161,760
124,537,113
130. Net impairment adjustments to:
a) loans and advances
b) financial assets available for sale
d) other financial transactions
(12,553,354)
(12,539,223)
–
(14,131)
(6,872,886)
(6,771,329)
(107,277)
5,720
140. Net income from financial activities
121,608,406
117,664,227
150. Administrative costs:
a) payroll
b) other administrative costs
(96,378,277)
(58,464,592)
(37,913,685)
(92,520,930)
(56,152,344)
(36,368,586)
160. Net provisions for risks and charges
(1,857,295)
(1,630,939)
170. Net adjustments to property, plant and equipment
(3,681,783)
(4,056,186)
180. Net adjustments to intangible assets
(309,525)
(1,215,042)
190. Other operating charges/income
9,384,110
12,440,619
(92,842,770)
(86,982,478)
220. Net gains (losses) arising on fair value adjustments to property, plant and equipment and intangible assets
100,000
–
240. Gains (losses) on disposal of investments
(19,606)
1,088,463
250. Profit (loss) from current operations before tax
28,846,030
31,770,212
260. Income taxes on current operations
(8,846,300)
(12,404,281)
270. Profit (loss) from current operations after tax
19,999,730
19,365,931
290. Net income (loss) for the year
19,999,730
19,365,931
90. Net hedging gains (losses)
100. Gains (losses) on disposal or repurchase of:
b) financial assets available for sale
d) financial liabilities
200 Operating costs
244
INFORMATICA VICENTINA S.p.A.
BALANCE SHEET AT 31 DECEMBER 2005
in Euro
Assets
B) FIXED ASSETS
I. Intangible fixed assets
1) Start-up and expansion costs
2) Research, development and advertising expenses
3) Industrial patent and intellectual property rights
4) Concessions, licenses, trademarks and similar rights
5) Goodwill
7) Other
Total
II. Tangible fixed assets
2) Plant and machinery
4) Other assets
Total
III. Financial fixed assets
1) Equity investments in:
a) subsidiary companies
d) other companies
Total
2) Receivables:
d) due from third parties – within 12 months
Total
TOTAL FIXED ASSETS (B)
C) CURRENT ASSETS
I. Inventories
1) Raw, ancillary and consumable materials
3) Contract work in process
Total
II. Receivables
1) Due from customers – within 12 months
2) Due from subsidiary companies
4) Due from parent companies
4– bis) Tax receivables
4– ter) Deferred tax assets
5) Due from third parties – within 12 months
Total
IV. Liquid funds
3) Cash and cash equivalents
Total
TOTAL CURRENT ASSETS (C)
D) ACCRUED INCOME AND PREPAID EXPENSES INDICATING
PREMIUMS ON LOANS SEPARATELY
– Prepaid expenses
TOTAL ACCRUED INCOME AND PREPAID EXPENSES (D)
Total Assets
246
12.31.2005
12.31.2004
–
1,184,669
407,912
349,880
504,000
23,716
220
1,626,221
611,868
535,286
576,000
42,922
2,470,177
3,392,517
44,999
178,994
52,303
274,455
223,993
326,758
250,192
1,352
–
1,352
251,544
1,352
2,629
4,009
2,629
4,009
2,948,343
3,724,636
136,800
45,000
147,990
45,000
181,800
192,990
2,120,170
879
1,088,283
47,423
13,942
49,705
2,540,107
–
1,185,110
30,174
3,919
46,674
3,320,402
3,805,984
844
611
844
611
3,503,046
3,999,585
192,247
72,189
192,247
72,189
6,643,636
7,796,410
Liabilities and stockholders’ equity
12.31.2005
12.31.2004
A) STOCKHOLDERS’ EQUITY
I. Capital stock
IV. Legal reserve
VII. Other reserves
– Euro rounding reserve
– Extraordinary reserve
VIII. Retained earnings (accumulated losses)
IX. Net income (loss) for the year
100,000
25,144
346,004
1
346,003
17
4,102
100,000
25,144
329,143
4
329,139
17
16,864
TOTAL STOCKHOLDERS’ EQUITY (A)
475,267
471,168
–
423
–
423
319,135
574,100
4,570,003
815,140
51,405
–
4,233,725
1,760,187
10,628
935
106,021
246,073
192,114
486,795
5,788,642
6,684,384
12,196
48,396
16,071
50,264
60,592
66,335
6,643,636
7,796,410
31,12,2005
31,12,2004
122,094
22,094
122,094
22,094
B) Provisions for risks and charges
2) Current and deferred taxation
TOTAL PROVISIONS FOR RISKS AND CHARGES (B)
C) PROVISIONS FOR TERMINATION INDEMNITIES
D) PAYABLES
4) Due to banks – within 12 months
7) Due to suppliers – within 12 months
11)Due to parent companies
12)Due to tax authorities – within 12 months
13)Due to social security
institutions – within 12 months
14)Other payables – within 12 months
TOTAL PAYABLES (D)
E) ACCRUED EXPENSES AND DEFERRED INCOME INDICATING
DISCOUNTS ON LOANS
– Accrued expenses
– Deferred income
TOTAL ACCRUED EXPENSES AND DEFERRED INCOME (E)
Total liabilities and stockholders’ equity
MEMORANDUM ACCOUNTS
I. Guarantees received from third parties
1) Sureties
Total memorandum accounts
247
INFORMATICA VICENTINA S.p.A.
STATEMENT OF INCOME AT 31 DECEMBER 2005
in Euro
12.31.2005
12.31.2004
6,283,729
–
9,518,050
(35,000)
325,281
711,918
6,609,010
10,194,968
665,543
1,789,231
291,509
2,929,084
2,601,473
355,740
1,535,221
494,668
87,295
51,517
2,115,367
652,660
139,668
36,812
926,532
86,365
–
951,882
117,503
8,304
11,190
390,412
15,000
428,597
6,329,483
9,812,090
279,527
382,878
–
–
38
2,579
(95,342)
–
(108,038)
(3,229)
(95,342)
(108,650)
–
(25,000)
–
(25,000)
E) Extraordinary income and charges
21) Charges
c) miscellaneous
–
(1)
Total extraordinary items (E)
–
(1)
184,185
(180,083)
(190,528)
422
10,023
249,227
(232,363)
(236,348)
1,276
2,709
4,102
16,864
A) Value of production:
1) Revenues from sales and services
3) Change in contract work in process
5) Other income and revenues
– miscellaneous
Total value of production (A)
B) Production costs
6) Raw, ancillary and consumable materials
7) Services received
8) Leases and rentals
9) Personnel:
a) Wages and salaries
b) Contingencies and other charges
c) Termination indemnities
d) Pensions and similar commitments
10) Amortization, depreciation and writedowns
a) Amortization of intangible fixed assets
b) Depreciation of tangible fixed assets
c) Other amounts written off fixed assets
11) Change in inventories of raw, ancillary and consumable
materials and goods for resale
14) Other operating expenses
Total production costs (B)
DIFFERENCE BETWEEN VALUE AND COST OF PRODUCTION (A - B)
C) Financial income and charges
16) Other financial income
a) from long-term receivables - other
c) from securities included among current assets
17) Interest and other financial charges
c) from parent companies
d) other
Total financial income and charges (C)
D) Adjustments to financial assets
Writedowns:
a) equity investments
Total adjustments to financial assets (D)
Results before taxes (A - B ± C ± D ± E)
22) Income taxes
a) Current
b) Deferred
c) Deferred tax assets
23) Net income (loss) for the year
248
IMMOBILIARE STAMPA S.p.A.
BALANCE SHEET AT 31 DECEMBER 2005
in Euro
Assets
12.31.2005
12.31.2004
17,540
18,649
35,081
7,078
36,189
42,159
190,339,844
143,818
174,983
910,919
191,527,210
97,061
155,247
–
191,569,564
191,779,518
3,904,398
–
3,895
4,039
3,908,293
4,039
195,514,046
191,825,716
–
3,775,725
–
3,775,725
1,123,569
355,114
27,426
532,524
76,815
387,233
–
276,665
2,038,633
740,713
4,008,648
513
4,762,743
439
4,009,161
4,763,182
6,047,794
9,279,620
202,782
127,498
201,764,622
201,232,834
B) FIXED ASSETS
I. Intangible fixed assets:
1) Start-up and expansion costs
4) Concessions, licenses, trademarks and similar rights
Total
II. Tangible fixed assets
1) Land and buildings
2) Plant and machinery
4) Other tangible fixed assets
5) Assets under construction and advance payments
Total
III. Financial fixed assets:
1) Equity investments in:
d) other companies
2) Receivables:
d) due from third parties – beyond 12 months
Total
TOTAL FIXED ASSETS (B)
C) CURRENT ASSETS
I. Inventories
4) Finished products and goods for resale
Total
II. Receivables – within 12 months
1) Due from customers
4) Due from parent companies
4 bis) Due from tax authorities
6) Due from third parties
Total
IV. Liquid funds:
1) Bank and post office accounts
3) Cash and cash equivalents
Total
TOTAL CURRENT ASSETS (C)
D) ACCRUED INCOME AND PREPAID EXPENSES INDICATING DISCOUNTS ON LOANS SEPARATELY
Total assets
250
Liabilities and stockholders’ equity
A) STOCKHOLDERS’ EQUITY
I. Capital stock
II. Additional paid-in capital
IV. Legal reserve
V. Reserve for treasury stock
VII. Other reserves, indicated separately
1) Extraordinary reserve
2) Euro rounding reserve
VIII. Retained earnings (accumulated losses)
IX. Net income for the year
TOTAL STOCKHOLDERS’ EQUITY (A)
C) PROVISIONS FOR TERMINATION INDEMNITIES
D) PAYABLES
7) Due to suppliers
11) Due to parent companies
12) Due to tax authorities
13) Due to social security institutions
14) Other payables
–within 12 months
–beyond 12 months
TOTAL PAYABLES (D)
E) ACCRUED EXPENSES AND DEFERRED INCOME INDICATING PREMIUMS ON LOANS SEPARATELY
Total liabilities and stockholders’ equity
MEMORANDUM ACCOUNTS
II. Company assets with third parties
1) Company securities with third parties
Total
III. Commitments
1) Supply contracts
2) Guarantees received from third parties
Total
Total memorandum accounts
251
12.31.2005
12.31.2004
125,000,000
69,400,000
1,172,926
125,000,000
69,400,000
993,408
393,908
393,907
1
31,762
2,602,638
393,907
–
20,910
3,590,370
198,601,234
199,398,595
484,736
439,168
1,006,913
150,806
427,473
49,049
459,691
8,166
–
42,663
960,625
60,924
802,731
67,750
2,655,790
1,381,001
22,862
14,070
201,764,622
201,232,834
12.31.2005
12.31.2004
2,700,000
–
2,700,000
–
251,563
1,301,650
–
1,553,213
–
4,253,213
–
IMMOBILIARE STAMPA S.p.A.
STATEMENT OF INCOME FOR THE YEAR ENDED 31 DECEMBER 2005
in Euro
12.31.2005
12.31.2004
A) Value of production:
1) Revenues from sales and services
2) Change in work in progress, semi-finished and finished product inventories
5) Other income and revenues
17,472,890
(3,775,725)
37,783
13,522,533
(787,250)
1,787,106
Total value of production (A)
13,734,948
14,522,389
(13,946)
(1,453,219)
(20,679)
(8,410)
(1,030,716)
(21,402)
(789,667)
(243,820)
(59,201)
(28,420)
(730,795)
(228,678)
(53,318)
(26,412)
(32,070)
(6,307,151)
(1,044,549)
(26,703)
(6,026,377)
(1,036,413)
(9,992,722)
(9,189,224)
3,742,226
5,333,165
C) Financial income and charges:
16) Other financial income
a) from long-term receivables
d) income other than the above
17) Interest and other financial charges
–
105,022
(1,675)
10
181,730
(4,900)
Total financial income and charges (C)
103,347
176,840
E) Extraordinary income and charges:
20) Income, indicating gains on disposals separately
21) Charges, indicating gains on disposals separately
7,533
(2,265)
61,085
(157,765)
5,268
(96,680)
3,850,841
(1,248,203)
2,602,638
5,413,325
(1,822,955)
3,590,370
B) Production costs:
6) Raw, ancillary and consumable materials
7) Services received
8) Leases and rentals
9) Personnel
a) wages and salaries
b) social security charges
c) termination indemnities
d) pensions and similar commitments
10) Amortization, depreciation and writedowns
a) amortization of intangible fixed assets
b) depreciation of tangible fixed assets
14) Other operating expenses
Total production costs (B)
DIFFERENCE BETWEEN VALUE AND COST OF PRODUCTION (A-B)
Total extraordinary items (E)
Results before taxes (A+B+C+D+E)
22) Income taxes
23) Net income (loss) for the year
252
BPVI FONDI SGR S.p.A.
BALANCE SHEET AT 31 DECEMBER 2005
in Euro
Assets
12.31.2005
12.31.2004
7,899
15,326
40. Financial assets available for sale
11,873,023
10,993,898
60. Loans and advances
a) for portfolio management
b) other loans and advances
18,834,781
3,149,770
15,685,011
13,519,064
1,083,773
12,435,291
65,536
68,531
110. Intangible assets
1,261,269
1,528,297
120. Tax assets
a) current
b) deferred tax assets
2,294,012
1,422,089
871,923
1,361,323
836,224
525,099
821,013
647,571
35,157,533
28,134,010
10. Cash and balances with central banks
100. Property, plant and equipment
140. Other assets
Total assets
254
Equity and liabilities
12.31.2005
12.31.2004
10. Payables
11,424,862
11,168,752
70. Tax liabilities:
a) current
b) deferred
2,017,431
1,718,395
299,036
1,418,530
1,381,109
37,421
90. Other liabilities
7,468,721
2,438,264
100. Provision for severance indemnities
166,833
192,165
110. Provisions for risks and charges:
b) other provisions
800,000
800,000
500,000
500,000
10,000,000
10,000,000
160. Reserves
976,710
867,369
170. Valuation reserves
530,590
(20,585)
1,772,386
1,569,515
35,157,533
28,134,010
120. Share capital
200. Net income (loss) for the year (+/-)
Total Equity and Liabilities
255
BPVI FONDI SGR S.p.A.
STATEMENT OF INCOME FOR THE YEAR ENDED 31 DECEMBER 2005
in Euro
Captions
12.31.2005
12.31.2004
10. Fee and commission income
28,058,042
26,200,672
20. Fee and commission expense
(20,584,997)
(19,213,303)
7,473,045
6,987,369
–
150,045
108,342
133,561
7,581,387
7,270,975
(4,699,458)
(2,446,971)
(2,252,487)
(4,229,628)
(2,241,206)
(1,988,422)
(35,335)
(33,649)
140. Net adjustments to intangible assets
(266,442)
(659,807)
160. Net provisions for risks and charges
(300,000)
(350,000)
170. Other operating charges
(276,177)
(184,208)
180. Other operating income
1,152,099
854,679
Operating costs
3,156,074
2,668,362
Profit (loss) from current operations before tax
3,156,074
2,668,362
(1,383,688)
(1,098,847)
Profit (loss) from current operations after tax
1,772,386
1,569,515
Net income (loss) for the year
1,772,386
1,569,515
Net fee and commission income
30. Dividend and similar income
40. Interest and similar income
Net interest and other banking income
120. Administrative costs:
a) payroll
b) other administrative costs
130. Net adjustments to property, plant and equipment
210. Income taxes on current operations
256
BPV FINANCE (INTERNATIONAL) Plc
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2005
BALANCE SHEET DIFFERENCE
PROFIT & LOSS
in Euro
Revenue
12.31.2005
– Interest income on amount due from banks
2,529,062
– Interest income due on loans to customers
1,468,388
– Interest income on debt securities
18,034,020
– Dividends
564,195
– Commission income on transactions with banks and other financial entities
– Fees received on options
22,331
444,065
– Profits on security transactions – Equity
1,523,913
– Profits on security transactions – Bonds
86,000
– Profits on foreign exchange transactions
–
– Profit/Loss on revaluation – HFT
2,025
– Release of Provision – Security
–
– Release of Provision – Equity
14,585
– Extraordinary income
Total Income
24,688,584
Net Profit / Loss after Tax
5,230,365
Dividend Paid
4,700,000
Profit/(Loss) after Dividend
530,365
258
Expenses
12.31.2005
– Interest expenses on amounts due to banks
(15,432,349)
– Interest expenses on securities issued
(688,276)
– Fees paid on options
(11,400)
– Losses on security transactions – Bonds
(2,927)
– Amortisation of discount/premium on bonds
(567,370)
– Loss on Maturities IAS
(46,433)
– Loss on Shares – IAS Adjustment
(233,213)
– Losses on foreign exchange transactions
(198,170)
– Loss on Sale of Shares/Equity Funds
(154,915)
– Personnel Expenses
(415,438)
– Personnel Expenses – Pension
(33,809)
– Other non interest expenses
(983,378)
– Depreciations
(27,548)
– Provision for security restatement
–
– Provision for equity investment restatement
–
– Extraordinary Items
a) 4th Schedule Vat
b) Premium/Discount W/Off
(34,097)
(16,370)
– Corporation Tax
(612,525)
Total Expenses
(19,458,219)
259
BPV FINANCE (INTERNATIONAL) Plc
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2005
BALANCE SHEET
in Euro
Assets
12.31.2005
Due from banks:
– current accounts
484,983
484,983
Loans to customers
– syndicated loans
– others loans
44,343,982
2,500,000
41,843,982
Securities:
** Available For Sale
–Banks & Financials
– Asset Backed Securities
– Corporate
– Minority interests
426,054,581
202,876,969
173,375,832
47,328,623
2,473,158
** Held For Trading
–Sicav
– Hedged Items
– Bonds Trading
– Stocks
104,409,599
6,833,421
71,334,614
12,037,500
14,204,064
** Held To Maturity
– Financial Fixed Assets
43,114,780
43,114,780
Equity Investments:
Other assets:
– Due to Meliora Fund
– Due from tax authority
3,656
133,014
Deferred Tax Asset
–
Fixed Assets
– computer equipment (25%)
– fixtures & fittings (15%)
65,145
110,189
– Gross book value of fixed assets
– less – accumulated depreciation
175,334
(114,681)
– Net book value of fixed assets
60,653
Accrued income and prepaid expenses
7,442,030
Interest Receivable
7,418,479
Inter- co balance
– prepayments
410
23,141
Total Assets
626,047,279
260
Liabilities and Stockholders’ equity
12.31.2005
Due to banks:
– current accounts
– loans
478,206,028
130,092
478,075,936
Securities issued
– long term securities
37,100,000
** Group Companies
37,100,000
*DISCOUNT LONG TERM SECURITIES (Zero Coupon)
(5,989,724)
Other liabilities:
– Statutory Auditors’ fees
– Miscellaneous items
– Dividend Approved
186,065
9,939
176,126
–
Revaluation Reserve
Accrued expenses and deferred income
4,538,684
Interest Payable
4,538,684
Provisions for risk and charges
– Due to tax authority
– Other provisions – Dividend
–
–
–
**Deferred Tax Liability
365,018
Capital and reserves
– share capital
– additional paid-in capital
Revaluation reserve (AFS)
Revenue Reserves
Revenue Reserve (HFT)
Profit and loss
111,641,207
103,291
103,291,380
1,887,830
5,125,709
702,633
530,365
Total Liabilities and stockholders’ equity
626,047,279
261
NORDEST MERCHANT S.p.A.
BALANCE SHEET AT 31 DECEMBER 2005
in Euro
Assets
12.31.2005
12.31.2004
306
175
1,561,503
11,165,596
60. Loans and advances
10,925,012
22,600,553
90. Equity investments
1,200,000
1,200,000
100. Property, plant and equipment
106,021
123,718
120. Tax assets
a) current
117,027
117,027
132,164
132,164
130. Non-current assets held for sale and discontinued operations
10,000
–
140. Other assets
29,611
48,633
Total assets
13,949,479
35,270,839
10. Cash and balances with central banks
40. Financial assets available for sale
262
Equity and liabilities
12.31.2005
12.31.2004
10. Payables
404,371
239,661
70. Tax liabilities:
288,699
106,794
a) current
288,699
106,794
90. Other liabilities
14,661
22,980
146,894
120,194
120. Share capital
5,000,000
30,977,734
160. Reserves
4,193,754
133,452
–
3,641,456
3,901,100
28,568
13,949,479
35,270,839
100. Provision for severance indemnities
170. Valuation reserves
180. Net income (loss) for the year (+/-)
Total Equity and Liabilities
263
NORDEST MERCHANT S.p.A.
INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2005
in Euro
Captions
12.31.2005
12.31.2004
290,276
598,704
290,276
598,704
30. Fee and commission income
1,848,352
257,377
40. Fee and commission expense
(22,611)
(5,819)
1,825,741
251,558
50. Dividend and similar income
93,600
46,800
60. Net trading income
50,000
–
100. Gains (losses) on disposal or repurchase of:
d) financial liabilities
3,552,009
3,552,009
456,764
456,764
Net interest and other banking income
5,811,626
1,353,826
(371)
–
(371)
38,468
39,470
(1,002)
(1,968,267)
(1,281,275)
(686,992)
(1,334,542)
(982,743)
(351,799)
130. Net adjustments to property, plant and equipment
(46,537)
(40,724)
170. Other operating charges/income
(30,724)
(41,992)
180. Other operating income
349,663
83,927
4,115,390
58,963
954
9,981
4,116,344
68,944
(215,244)
(40,376)
Profit (loss) from current operations after tax
3,901,100
28,568
Net income (loss) for the year
3,901,100
28,568
10. Interest income and similar revenues
Net interest income
Net fee and commission income
110. Net impairment adjustments to:
a) loans and advances
b) financial assets available for sale
120. Administrative costs:
a) payroll
b) other administrative costs
Net profit from operating activities
200. Gains (losses) on disposal of investments
Profit (loss) from current operations before tax
210. Income taxes on current operations
264
SERVIZI BANCARI S.p.A.
BALANCE SHEET AT 31 DECEMBER 2005
in Euro
Assets
12.31.2005
12.31.2004
1,500
2,250
1,500
2,250
1,944
25,371
0
23,436
27,315
23,436
4,836
1,494
4,836
1,494
33,651
27,180
118,111
15,202
1,002
1,371
3,518,654
–
–
19,487
135,686
3,538,141
3,068,736
91
899,239
300
3,068,827
899,539
3,204,513
4,437,680
B) FIXED ASSETS
I. Intangible fixed assets
1) Start-up and expansion costs
Total
II. Tangible fixed assets
2) Plant and machinery
4) Other assets
Total
III. Financial fixed assets
2) Receivables:
d) due from third parties – within 12 months
Total
TOTAL FIXED ASSETS (B)
C) CURRENT ASSETS
II. Receivables
1) Due from customers – within 12 months
4– bis) Tax receivable
4– ter) Deferred tax assets
5) Due from third parties
Total
IV. Liquid funds
1) Bank and post office accounts
3) Cash and cash equivalents
Total
TOTAL CURRENT ASSETS (C)
D) ACCRUED INCOME AND PREPAID EXPENSES INDICATING PREMIUMS ON LOANS SEPARATELY
– Prepaid expenses
TOTAL ACCRUED INCOME AND PREPAID EXPENSES (D)
Total Assets
266
438
274
438
274
3,238,602
4,465,134
Liabilities and stockholders’ equity
A) STOCKHOLDERS’ EQUITY
I. Capital stock
VII. Other reserves
– Euro rounding reserve
IX. Net income (loss) for the year
TOTAL STOCKHOLDERS’ EQUITY (A)
B) PROVISIONS FOR RISKS AND CHARGES
1) Pensions and similar commitments
TOTAL PROVISIONS FOR RISKS AND CHARGES (B)
C) PROVISION FOR TERMINATION INDEMNITIES
D) PAYABLES
7) Due to suppliers
11)Due to parent companies
12)Due to tax authorities
13)Due to social security institutions
14)Other payables
TOTAL PAYABLES (D)
E) ACCRUED EXPENSES AND DEFERRED INCOME INDICATING DISCOUNTS ON LOANS
– Accrued expenses
TOTAL ACCRUED EXPENSES AND DEFERRED INCOME (E)
Total liabilities and stockholders’ equity
MEMORANDUM ACCOUNTS
1) Sureties
Total memorandum accounts
267
12.31.2005
12.31.2004
250,000
2
2
104,127
250,000
1
1
–
354,129
250,002
24,711
120,000
24,711
120,000
1,182,013
1,620,097
514,022
879
3,389
283,266
868,641
1,251,248
–
188,525
373,792
661,470
1,670,197
2,475,035
7,552
–
7,552
–
3,238,602
4,465,134
12.31.2005
12.31.2004
48,600
48,600
48,600
48,600
SERVIZI BANCARI S.p.A.
INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2005
in Euro
12.31.2005
12.31.2004
7,640,710
129,837
129,837
11,640,770
3,670
3,670
TOTAL VALUE OF PRODUCTION (A)
7,770,547
11,644,440
B) PRODUCTION COSTS
6) Raw, ancillary and consumable materials
7) Services received
8) Leases and rentals
9) Personnel:
a) Wages and salaries
b) Social security charges
c) Termination indemnities
d) Pensions and similar commitments
e) Other costs
10) Amortization, depreciation and writedowns
a) Amortization of intangible fixed assets
b) Depreciation of tangible fixed assets
13) Other provisions
14) Other operating expenses
(24,604)
(2,454,232)
(345,744)
(4,365,753)
(3,083,990)
(915,861)
(264,046)
(101,856)
–
(6,966)
(750)
(6,216)
–
(57,451)
(39,041)
(5,630,782)
(379,059)
(5,050,645)
(3,494,886)
(1,135,837)
(274,147)
(144,204)
(1,571)
(4,573)
(750)
(3,823)
(120,000)
(23,853)
(7,254,750)
(11,247,953)
515,797
396,487
40,145
(521)
9,011
(840)
39,624
8,171
38,567
–
(62,957)
(687)
–
–
(25,077)
–
530,344
(426,217)
(427,219)
1,002
104,127
404,658
(404,658)
(404,658)
–
–
A) VALUE OF PRODUCTION:
1) Revenues from sales and services
5) Other income and revenues
– Miscellaneous
TOTAL PRODUCTION COSTS (B)
DIFFERENCE BETWEEN VALUE AND COST OF PRODUCTION (A-B)
C) FINANCIAL INCOME AND CHARGES
16) Other financial income
a) from long-term receivables
17) Interest and other financial charges
TOTAL FINANCIAL INCOME AND CHARGES (C)
E) EXTRAORDINARY INCOME AND CHARGES
20) Income
– miscellaneous
21) Charges
– Taxes relating to prior years
– miscellaneous
TOTAL EXTRAORDINARY ITEMS (E)
RESULTS BEFORE TAXES (A - B ± C ± D ± E)
22) Income taxes
– Current
– Deferred tax assets
26)Net income (loss) for the year
268
NEM SGR S.p.A.
BALANCE SHEET AT 31 DECEMBER 2005
in Euro
Assets
12.31.2005
12.31.2004
239
382
1,785,851
1,785,851
1,196,267
1,196,267
51,196
9,919
41,277
3,604
1,758
1,846
140. Other assets
7,944
0
Total assets
1,845,230
1,200,253
10. Cash and balances with central banks
60. Loans and advances
b) other loans and advances
120. Tax assets
a) current
b) deferred tax assets
270
Equity and liabilities
12.31.2005
12.31.2004
406,279
31,928
70. Tax liabilities:
a) current
81,429
81,429
1,081
1,081
90. Other liabilities
137,718
–
1,200,000
1,200,000
(29,775)
–
170. Valuation reserves
(2,981)
(2,981)
200. Net income (loss) for the year (+/-)
52,560
(29,775)
1,845,230
1,200,253
10. Payables
120. Share capital
160. Reserves
Total Equity and Liabilities
271
NEM SGR S.p.A.
INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2005
in Euro
Captions
12.31.2005
12.31.2004
534,781
–
534,781
–
30,227
6,512
565,008
6,512
(499,012)
(293,147)
(36,287)
(16,600)
(205,865)
(19,687)
25,000
–
Operating costs
90,996
(29,775)
Profit (loss) from current operations before tax
90,996
(29,775)
(38,436)
–
Profit (loss) from current operations after tax
52,560
(29,775)
Net income (loss) for the year
52,560
(29,775)
10. Fee and commission income
Net fee and commission income
40. Interest and similar income
Net interest and other banking income
120. Administrative costs:
a) payroll
b) other administrative costs
180. Other operating income
210. Income taxes on current operations
272
VICENZA LIFE LIMITED
BALANCE SHEET
in Euro
Assets
12.31.2005
12.31.2004
42,302
56,574
9,418,367
–
745,137,293
458,685,989
33,415,837
253,035,467
586,750,969
–
21,531,626
565,219,343
2,135,164
–
Current tax
436,801
–
Debtors arising out of direct insurance operations
156,000
1,281,069
Other debtors
149,053
479,502
Prepayments and accrued income
362,399
496,309
13,036,320
4,144,096
770,873,699
593,208,519
Property, plant and equipment
Deferred acquisition cost
Financial assets
– Investments in unit trusts and tracker bonds
– Debt securities and other fixed income securities
– Investments for the benefit of life assurance policyholders who bear the investment risk
Italian substitute tax
Cash and cash equivalents
Total Assets
274
Liabilities
Insurance contract provisions
Other techical provisions
Financial liabilities – investment contracts
Deferred income liability
Creditors arising out of direct insurance operations
Creditors arising out of reinsurance operations
Other creditors including tax and social security
Deferred tax liabilities
TOTAL LIABILITIES
NET ASSETS
12.31.2005
12.31.2004
253,035,469
565,219,343
7,062,256
8,468,000
458,685,989
–
17,239,778
–
4,317,932
3,259,465
29,901
31,689
16,184,810
606,741
1,275
2,290
756,557,410
577,587,528
14,316,289
15,620,991
634,850
634,850
12,062,132
12,062,132
1,619,307
2,924,009
14,316,289
15,620,991
Shareholders’ equity
Share capital
Capital contribution
Retained earnings
TOTAL SHAREHOLDERS’ EQUITY
275
VICENZA LIFE LIMITED
INCOME STATEMENT
in Euro
12.31.2005
12.31.2004
165,412,796
170,053,814
(25,513)
(20,432)
165,387,283
170,033,382
36,913,348
33,733,366
9,109,031
–
786,363
1,034,082
TOTAL INCOME
212,196,025
204,800,830
Claim and benefits incurred
(4,339,840)
(16,380,317)
Investment contract benefits
(21,795,362)
–
Insurance contract provisions
(154,376,990)
(172,078,172)
(4,393,120)
(2,282,000)
(158,770,110)
(174,360,172)
(11,996,237)
(8,316,273)
Administraction expenses
(1,853,826)
(1,358,346)
Investments expenses and changes
(8,044,789)
(1,233,642)
PROFIT BEFORE INCOME TAXES
5,395,861
3,152,080
Income tax expenses
(678,558)
(395,198)
PROFIT FOR THE YEAR
4,717,303
2,756,882
Gross premiums written
Outward reinsurance premiums
NET EARNED PREMIUM
Investment return
Fees and commission income
Other operating income
Other technical provisions
CHANGE IN INSURANCE PROVISIONS
Acquisition costs
276
BERICA VITA S.p.A.
BALANCE SHEET AT 31 DECEMBER 2005
in Euro
Assets
12.31.2005
12.31.2004
B) INTANGIBLE ASSETS
3. Start-up and expansion costs
5. Other deferred charges
3,630
1,268
5,445
2,541
TOTAL ASSETS (B)
4,898
7,986
C) INVESTMENTS
II. Investments in group companies and other entities:
2) Bonds issued by entities
a) parent companies
III. Other financial investments
1) Shares and quotas
a) listed shares
2) Units in mutual funds
3) Bonds and other fixed-income securities
a) listed
b) not listed
7) Other financial investments
353,844
353,844
125,216
125,216
17,185,784
17,185,784
3,021,846
222,986,453
222,933,256
53,197
40,929
–
–
18,500,000
71,228,685
71,228,685
–
–
TOTAL (C)
243,588,856
89,853,901
D) INVESTMENTS FOR THE BENEFIT OF LIFE ASSURANCE
WHO BEAR THE RELATED RISKS AND THOSE DERIVING
FOR THE MANAGEMENT OF PENSION FUNDS
I. Investments servicing investment and
market index funds
II.Investments deriving from the management of pension funds
70,454,382
–
22,953,427
–
TOTAL (D)
70,454,382
22,953,427
E) Receivables
III. Other receivables
2,146,452
649,488
TOTAL (E)
2,146,452
649,488
F) OTHER ASSETS
I.Fixed assets and inventories
1) Furniture, office machines and transport
II.Liquid funds:
1) Bank and post office accounts
2) Cheques and cash
IV.Other assets
2) Miscellaneous assets
30,406
30,406
42,198,468
42,198,342
126
45,600
45,600
42,620
42,620
26,540,125
26,539,980
145
–
–
TOTAL (F)
42,274,474
26,582,745
G. ACCRUED INCOME AND PREPAID EXPENSES
1. For interest
2. For lease installments
3. Other accrued income and prepaid expenses
3,345,065
–
3,145
1,356,651
–
1,249
TOTAL (G)
3,348,210
1,357,900
361,817,272
141,405,447
TOTAL ASSETS
278
Liabilities and stockholders’ equity
12.31.2005
12.31.2004
A) STOCKHOLDERS’ EQUITY
I. Share capital subscribed or similar fund
IV. Legal reserve
VII. Other reserves
VIII. Retained earnings (accumulated losses)
IX. Net income (loss) for the year
16,000,000
23,730
3,232,866
208,019
1,334,524
16,000,000
1,730
3,032,866
–
430,020
20,799,139
19,464,616
264,826,938
54,231
1,777,894
95,359,204
–
699,101
266,659,063
96,058,305
70,454,382
22,953,427
70,454,382
22,953,427
422,619
11,406
1,388,582
5,712
1,802,721
12,429
739,823
771,226
11,190
483,774
915,690
268,615
3,904,688
2,929,099
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
361,817,272
141,405,447
MEMORANDUM ACCOUNTS
III. Commitments
VII. Securities deposited with third parties
12.31.2005
18,472,595
293,954,440
12.31.2004
–
110,528,685
TOTAL MEMORANDUM ACCOUNTS
312,427,035
110,528,685
TOTAL (A)
C) TECHNICAL RESERVES
II. Life sector
1. Mathematical reserves
3. Reserves for amounts to be paid
5. Other technical reserves
TOTAL (C)
D) TECHNICAL RESERVES ALTHOUGH THE INVESTMENT RISK IS
BORNE BY THE POLICYHOLDERS AND RESERVES
DERIVING FROM THE MANAGEMENT OF PENSION FUNDS
I. Reserves relating to contracts connected with
investment and market index funds
TOTAL (D)
G) PAYABLES AND OTHER LIABILITIES
I. Direct insurance payables to:
1. Insurance brokers
VII. Provision for severance indemnities
VIII. Other payables
2. Miscellaneous fiscal charges
3. Due to social security and pension institutions
4. Other payables
IX. Other liabilities
3. Miscellaneous liabilities
TOTAL (G)
279
BERICA VITA S.p.A.
STATEMENT OF INCOME FOR THE YEAR ENDED 31 DECEMBER 2005
in Euro
Life sector technical account
1. PREMIUMS WRITTEN, NET OF OUTWARD REINSURANCE PREMIUMS:
a) Gross premiums written
12.31.2005
12.31.2004
225,130,614
121,067,279
2. INCOME FROM INVESTMENTS:
a) Income from shares and quotas
b) Income from other investments
2) other investments
– including: from group companies
d) Profits on disposal of investments
717,305
5,850
6,909,977
43,976
2,780,509
1,286,542
189
647,608
3. UNREALIZED GAINS AND INCOME ON INVESTMENTS
FOR THE BENEFIT OF POLICYHOLDERS WHO BEAR THE
RELATED RISKS AND INVESTMENTS DERIVING FROM
THE MANAGEMENT OF PENSION FUNDS
2,033,986
425,737
8,796,516
298,412
54,231
–
–
–
169,467,734
95,359,204
1,078,793
699,101
47,500,955
22,953,427
4,108,535
2,259,689
1,069,756
2,154,920
814,627
699,521
605,581
254,617
997,170
121,300
3,485
607
10. FINANCIAL CHARGES AND UNREALIZED LOSSES ON
INVESTMENTS FOR THE BENEFIT OF POLICYHOLDERS
WHO BEAR THE RELATED RISKS AND INVESTMENTS
DERIVING FROM THE MANAGEMENT OF PENSION FUNDS
5,682
101,843
12. (-) SHARE OF PROFITS FROM INVESTMENTS TRANSFERRED
TO NON-TECHNICAL ACCOUNT
854,177
489,091
13. RESULTS OF TECHNICAL ACCOUNT - LIFE SECTOR
518,955
(262,522)
5. CHARGES FOR CLAIMS, NET OF
REINSURANCE:
a) Amounts paid
1) Gross amount
b) Change in the reserve for amounts to be paid
1) Gross amount
6. CHANGE IN MATHEMATICAL RESERVES AND
OTHER TECHNICAL RESERVES, NET OF REINSURANCE
a) Mathematical reserves
1) Gross amount
c) Other technical reserves
1) Gross amount
d) Technical reserves although the investment risk is borne by
the policyholders and deriving from the management of pension funds
1) Gross amount
8. OPERATING EXPENSES:
a) Acquisition commissions
b) Other acquisition expenses
e) Other administrative expenses
9. FINANCIAL CHARGES:
a) Investment management charges and interest expense
b) Adjustments to the value of investments
c) Losses on the disposal of investments
280
Non-technical account
12.31.2005
12.31.2004
1. RESULTS OF TECHNICAL ACCOUNT – LOSS SECTOR
–
–
2. RESULTS OF TECHNICAL ACCOUNT – LIFE SECTOR
518,955
(262,522)
854,177
489,091
7. OTHER INCOME
487,991
480,568
8. OTHER CHARGES
(37,119)
(6,680)
1,824,004
700,457
10. EXTRAORDINARY INCOME
17,117
495
11. EXTRAORDINARY CHARGES
(269)
(944)
16,848
(449)
13. PROFIT BEFORE TAXES
1,840,852
700,008
14. INCOME TAXES
(506,328)
(269,988)
15. NET INCOME (LOSS) FOR THE YEAR
1,334,524
430,020
4. (+) SHARE OF PROFITS FROM INVESTMENTS TRANSFERRED
FROM LIFE SECTOR TECHNICAL ACCOUNT
9. PROFIT FROM ORDINARY ACTIVITIES
12. NET EXTRAORDINARY ITEMS
281
PRESTINUOVA S.p.A.
BALANCE SHEET AT 31 DECEMBER 2005
in Euro
Assets
12.31.2005
20. Due to banks
a) demand
b) other loans and advances
8,071,431
8,071,431
90. Intangible assets of which:
– start-up costs
– goodwill
22,079
22,079
130. Other assets
189,303
Total assets
8,282,813
282
Liabilities and equity
12.31.2005
10. Due to banks
a) demand
b) time deposits or with notice period
2,310
2,310
50. Other liabilities
279,457
120. Share capital
8,000,000
170. Net income (loss) for the year
1,046
Total liabilities and equity
8,282,813
283
PRESTINUOVA S.p.A.
INCOME STATEMENT
in Euro
Costs
12.31.2005
40. Administrative costs:
b) other administrative costs
219,474
219,474
130. Income taxes
5,993
140. Net income for the year
1,046
Total costs
226,513
284
Revenues
12.31.2005
10. Interest and similar income of which:
a) on loans to customers
b) on debt securities
c) on current accounts
97,859
97,859
70. Other operating income
128,654
Total revenues
226,513
285
INDEPENDENT AUDITORS’ REPORT
287
CONSOLIDATED BALANCE SHEET IN EURO AND IN US DOLLARS
CONSOLIDATED STATEMENT OF INCOME IN EURO AND IN US
DOLLARS
291
BANCA POPOLARE DI VICENZA GROUP
CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2005
in Euro and US Dollars
Assets
Thousand of Euro
10. Cash and balances with central banks
Thousand of US $ (1Euro=1,1797 $)
142,150
167,694
1,523,889
1,797,732
268,553
316,812
40. Financial assets available for sale
1,447,533
1,707,655
50. Financial assets held to maturity
53,770
63,432
1,402,393
1,654,403
14,839,128
17,505,719
80. Hedging derivatives
133
157
100. Equity investments
42,719
50,396
376,709
444,404
20. Financial assets held for trading
30. Financial assets at fair value
60. Loans and advances to banks
70. Loans and advances to customers
120. Proprty, plant and equipment
130. Intangible assets
of which: - goodwill
485,004
492,602
140. Tax assets
a) current
b) deferred tax assets
102,290
98,220
581,123
572,159
200,510
160. Other assets
Total assets
292
236,542
120,672
115,870
326,345
384,989
21,116,434
24,911,057
Liabilities and stockholders’ equity
Thousand of Euro
Thousand of US $ (1Euro=1,1797 $)
10. Deposits from banks
2,834,104
3,343,392
20. Due to customers
8,593,525
10,137,781
30. Debt securities in issue
4,093,625
4,829,249
534,440
630,479
1,566,276
1,847,736
2,862
3,376
40. Financial liabilities held for trading
50. Financial liabilities at fair value
60. Hedging derivatives
80. Tax liabilities:
a) current
b) deferred
162,341
110,105
52,236
100. Other liabilities
110. Provision for severance indemnities
120. Provisions for risks and charges:
a) pensions and similar commitments
b) other provisions
191,514
129,891
61,623
533,444
629,304
87,165
102,829
89,344
46,324
43,020
105,399
54,648
50,751
130. Technical reserves
278,223
328,220
140. Valuation reserves
231,695
273,331
160. Equity instruments
12,054
14,220
179,109
211,295
1,543,127
1,820,427
183,817
216,849
65,513
77,286
125,770
148,371
21,116,434
24,911,057
170. Reserves
180. Additional paid-in capital
190. Share capital
210. Minority interests (+/-)
220. Net income (loss) for the year (+/-)
Total Equity and Liabilities
293
BANCA POPOLARE DI VICENZA GROUP
CONSOLIDATED STATEMENT OF INCOME AS OF DECEMBER 31, 2005
in Euro and US Dollars
Statement of income
10.
20.
30.
40.
50.
60.
70.
80.
90.
100,
110.
120.
130.
140.
150.
160.
170.
180.
190.
200.
210.
220.
230.
240.
250.
260.
270.
280.
290.
300.
320.
330.
Thousand of Euro
Interest income and similar revenues
Interest expense and similar charges
Net interest income
Fee and commission income
Fee and commission expense
Net fee and commission income
Dividend and similar income
Net trading income
Net hedging gains (losses)
Gains (losses) on disposal or repurchase of:
a) loans and advances
b) financial assets available for sale
d) financial liabilities
Net change in financial assets and liabilities at fair value
Net interest and other banking income
Net impairment adjustments on:
a) loans and advances
b) financial assets available for sale
d) other financial transactions
Net income from financial activities
Net premium income
Other insurance income (charges)
Net income from financial and insurance activities
Administrative costs:
a) payroll
b) Other administrative costs
Net provisions for risks and charges
Net adjustments to property, plant and equipment
Net adjustments to intangible assets
Other operating charges/income
Operating costs
Share of profit (loss) of equity investments
Net gains (losses) arising on fair value adjustments to
property, plant and equipment and intangible assets
Adjustments to goodwill
Gains (losses) on disposal of investments
Profit (loss) from current operations before tax
Income taxes on current operations
Profit (loss) from current operations after tax
Net profit (loss) for the year
Minority interests
Thousand of US $ (1Euro=1,1797 $)
756,038
(314,288)
441,750
293,510
(39,097)
254,413
21,283
65,353
(506)
7,247
2
5,617
1,628
891,898
(370,766)
521,132
346,254
(46,123)
300,131
25,108
77,097
(597)
8.549
2
6,626
1,921
629
790,169
(102,439)
(89,022)
(12,718)
(699)
742
932,162
(120,847)
(105,019)
(15,003)
(825)
687,730
340,414
(341,917)
686,227
(509,907)
(293,693)
(216,214)
340. Net income (loss) for the year pertaining to the parent bank
294
811,315
401,586
(403,359)
809,542
(601,537)
(346,470)
(255,068)
(12,051)
(15,365)
(4,809)
55,942
(486,190)
6,554
(14,217)
(18,126)
(5,673)
65,995
(573,558)
7,732
409
(2,572)
596
205,024
(74,114)
130,910
130,910
(5,140)
482
(3,034)
703
241,867
(87,432)
154,435
154,435
(6,064)
125,770
148,371
BRANCH NETWORK
BANCA POPOLARE DI VICENZA
REGISTERED OFFICE AND
HEADQUARTERS
I-36100 Vicenza
Via Btg. Framarin, 18
Tel. (0444) 339111
CENTRAL SERVICES
36100 Vicenza
Via Btg. Framarin, 22
Tel. (0444) 339111
Telefax (0444) 329364
Teltex 480178 BPVSCE
Swift BPVIIT 22
• Stock Exchange
Tel. (02) 62481800
Telefax (02) 29062724
• Foreign Exchange
Tel. (02) 62481000
Telefax (02) 29062724
• Gold
Tel. (0444) 339133
Telefax (0444) 545982
• Treasury
Tel. (0444) 995260
Telefax (0444) 329417
• International Relations
Tel. (0444) 339577/339564
Telefax (0444) 907125
BRANCHES
Province of Vicenza
• 36100 Vicenza
Contrà Porti, 12
Tel. (0444) 339111
Telefax (0444) 320059
• 36100 Vicenza - Filiale n. 1
C.so Ss.Felice e Fortunato, 145
Tel. (0444) 327460
Telefax (0444) 321118
• 36100 Vicenza - Filiale n. 2
C.so Padova, 42
Tel. (0444) 505466
Telefax (0444) 512273
• 36100 Vicenza - Filiale n. 3
Viale delle Fornaci, 2
Tel. (0444) 961047
Telefax (0444) 962075
• 36100 Vicenza - Filiale n. 4
Via S. Agostino, 9/11
Tel. (0444) 963223
Telefax (0444) 566999
• 36100 Vicenza - Filiale n. 5
Viale Trieste, 335
Tel. (0444) 512655
Telefax (0444) 512403
• 36100 Vicenza - Filiale n. 6
Via Btg. Framarin, 20
Tel. (0444) 339197
Telefax (0444) 339563
• 36100 Vicenza - Filiale n. 7
Via Vecchia Ferriera, 72
Tel. (0444) 961509
Telefax (0444) 961450
• 36100 Vicenza - Filiale n. 8
Viale dal Verme, 100
Tel. (0444) 927222
Telefax (0444) 927255
• 36100 Vicenza - Filiale n. 9
Via Giuriato, 67
Tel. (0444) 301700
Telefax (0444) 301698
• 36100 Vicenza - Filiale n. 10
Via F.lli Rosselli, 58
Tel. (0444) 240334
Telefax (0444) 240318
• 36100 Vicenza - Filiale n. 11
Via Ca’ Balbi, 309
Tel. (0444) 912733
Telefax (0444) 912742
• 36100 Vicenza - Filiale n. 12
Via dell’Oreficeria, 16/A
Tel. (0444) 565656
Telefax (0444) 963988
• 36100 Vicenza - Filiale n. 13
Via E. Fermi, 130
Tel. (0444) 964694
Telefax (0444) 964697
• 36100 Vicenza - Filiale n. 14
Polegge Via Marosticana, 345
Tel. (0444) 945729
Telefax (0444) 595143
• 36100 Vicenza - Filiale n. 15
S.S. Pasubio, 335 - Loc. Maddalene
Tel. (0444) 980610
Telefax (0444) 980695
• 36100 Vicenza - Filiale n. 16
Piazzola Gualdi, 10
Tel. (0444) 320447
Telefax (0444) 326219
• 36100 Vicenza - Filiale n. 17
Via Zamenhof, 94
Tel. (0444) 914462
Telefax (0444) 914437
• 36100 Vicenza - Filiale n. 18
Corso Palladio, 13
Tel. (0444) 325044
Telefax (0444) 321597
• 36020 Albettone
Piazza Umberto I°, 15
Tel. (0444) 790355
Telefax (0444) 790555
• 36077 Altavilla Vicentina - Filiale n. 1
Via Vicenza, 232
Tel. (0444) 348833
Telefax (0444) 348848
• 36041 Alte di Montecchio M.
Via Trieste, 7
Tel. (0444) 698533
Telefax (0444) 698090
• 36011 Arsiero
Piazza Francesco Rossi, 37
Tel. (0445) 740308
Telefax (0445) 742032
• 36071 Arzignano
Via Trento, 59
Tel. (0444) 673000
Telefax (0444) 674240
• 36071 Arzignano - Filiale n. 1
Viale del Lavoro, 39/A
Tel. (0444) 670124
Telefax (0444) 675549
• 36012 Asiago
P.zza G. Carli, 61
Tel. (0424) 64546
Telefax (0424) 462641
• 36061 Bassano del Grappa
Via Roma, 85
Tel.(0424) 527111
Telefax (0424) 524966
• 36061 Bassano - Filiale n. 1
Viale Pecori Giraldi, 24
Tel. (0424) 502405
Telefax (0424) 503998
• 36061 Bassano - Filiale n. 2
Loc. Ca’ Baroncello - V. Cellini, 2
Tel. (0424) 510280
Telefax (0424) 512263
• 36050 Bolzano Vic.no
Via Zuccola, 3
Tel. (0444) 350034
Telefax (0444) 350775
• 36042 Breganze
Piazza Mazzini, 27
Tel. (0445) 873133
Telefax (0445) 300373
• 36040 Brendola
Via Roccolo, 1
Tel. (0444) 400831
Telefax (0444) 601973
• 36030 Caldogno
Via Risorgimento, 2
Tel. (0444) 585799
Telefax (0444) 905133
• 36043 Camisano Vicentino
Piazza Umberto I°, 11
Tel. (0444) 610170
Telefax (0444) 410489
• 36010 Canove di Roana
Via Milano
Tel. (0424) 692090
Telefax (0424) 692838
• 36010 Carrè
Piazza 4 Novembre
Tel. (0445) 892777
Telefax (0445) 892594
• 36050 Cartigliano
Piazza Concordia, 14
Tel. (0424) 828541
Telefax (0424) 827354
• 36065 Casoni di Mussolente
Via Cuccarollo, 1/A
Tel. (0424) 573088
Telefax (0424) 573107
• 36022 Cassola
Via Valsugana, 70
Tel. (0424) 566738
Telefax (0424) 566767
• 36030 Castelnovo di Isola Vic.na
Via S. Antonio, 6
Tel. (0444) 977388
Telefax (0444) 977382
• 36010 Cavazzale
Via Chiesa, 3
Tel. (0444) 595144
Telefax (0444) 595699
• 36072 Chiampo
Piazza Stazione, 7
Tel. (0444) 420966
Telefax (0444) 420970
• 36010 Chiuppano
Via Amabile Peguri, 1
Tel. (0445) 891955
Telefax (0445) 390144
• 36073 Cornedo Vic. no
Via Monte Verlaldo,16 - Loc. Cereda
Tel. (0445) 446389
Telefax (0445) 953466
• 36051 Creazzo
Viale Italia, 200
Tel. (0444) 521400
Telefax (0444) 340291
• 36056 Cusinati di Tezze Sul Brenta
S.S. 47- Via Nazionale
Tel. (0424) 560011
Telefax (0424) 561452
296
• 36031 Dueville
Piazza Monza, 39
Tel. (0444) 360400
Telefax (0444) 360438
• 36060 Fellette di Romano d’Ezzelino
Via Bassanese, 32
Tel. (0424) 512559
Telefax (0424) 512554
• 36032 Gallio
P.zza Gen. Turba, 3
Tel. (0424) 445171
Telefax (0424) 445415
• 36053 Gambellara
Piazza Marconi, 5
Tel. (0444) 444622
Telefax (0444) 444125
• 36040 Grisignano di Zocco
Via Serenissima, 3
Tel. (0444) 614558
Telefax (0444) 414358
• 36023 Longare
Via Marconi, 38
Tel. (0444) 953580
Telefax (0444) 953585
• 36045 Lonigo
Via Q. Rossi, 5
Tel. (0444) 830542
Telefax (0444) 831259
• 36046 Lusiana
Viale Europa, 12/A
Tel. (0424) 406014
Telefax (0424) 406438
• 36034 Malo
Via Raffaello, 2
Tel. (0445) 602021
Telefax (0445) 580410
• 36035 Marano Vicentino
Piazza Silva, 30
Tel. (0445) 621013
Telefax (0445) 560038
• 36061 Marchesane di Bassano
Strada Marchesane, 289
Tel. (0424) 500506
Telefax (0424) 501037
• 36063 Marostica
Piazza Castello, 44
Tel. (0424) 73641
Telefax (0424) 72103
• 36040 Meledo di Sarego
Via D. Chiesa
Tel. (0444) 820355
Telefax (0444) 820430
• 36060 Molvena
Via Ponticello, 30
Tel. (0424) 411996
Telefax (0424) 411091
• 36054 Montebello Vicentino
Via Marconi, 15
Tel. (0444) 649033
Telefax (0444) 649472
• 36075 Montecchio Maggiore
Via S. Valentino
Tel. (0444) 696668
Telefax (0444) 491221
• 36030 Montecchio Precalcino
Via Summano, 12/B
Tel. (0445) 864433
Telefax (0445) 334044
• 36047 Montegalda
Via D. Cattaneo, 30
Tel. (0444) 737100
Telefax (0444) 737213
• 36024 Nanto
Via A. Bembo, 30
Tel. (0444) 639955
Telefax (0444) 638437
• 36025 Noventa Vicentina
Corso G. Matteotti, 84
Tel. (0444) 860177
Telefax (0444) 760030
• 36040 Orgiano
Via Libertà, 1
Tel. (0444) 874100
Telefax (0444) 874617
• 36013 Piovene Rocchette
Via Libertà, 2
Tel. (0445) 650444
Telefax (0445) 550105
• 36026 Pojana Maggiore
Via Matteotti, 8
Tel. (0444) 794079
Telefax (0444) 794084
• 36021 Ponte di Barbarano
Via Riviera Berica, 25
Tel. (0444) 795305
Telefax (0444) 795298
• 36050 Pozzoleone
Via Roma, 2
Tel. (0444) 462212
Telefax (0444) 462198
• 36050 Quinto Vicentino
Via Martiri della Libertà, 25
Tel. (0444) 357674
Telefax (0444) 357668
• 36027 Rosà
Via Capitano A., 69
Tel. (0424) 581890
Telefax (0424) 581905
• 36070 San Pietro Mussolino
Via Risorgimento, 59/B
Tel. (0444) 487487
Telefax (0444) 487288
• 36030 San Vito di Leguzzano
Via Roma, 1
Tel. (0445) 519655
Telefax (0445) 519699
• 36066 Sandrigo
Piazza Vittorio Emanuele, 11
Tel. (0444) 658477
Telefax (0444) 750048
• 36014 Santorso
Via Piazzetta Villa Vicentina, 3
Tel. (0445) 640820
Telefax (0445) 640774
• 36015 Schio
Piazza Garibaldi, 2
Tel. (0445) 529790
Telefax (0445) 531093
• 36015 Schio - Filiale n. 1
Via Veneto, 2/B
Tel. (0445) 575492
Telefax (0445) 575508
• 36015 Schio - Filiale n. 2
Via Riva di Magrè
Tel. (0445) 530670
Telefax (0445) 530680
• 36040 Sossano
Via Roma, 20
Tel. (0444) 888406
Telefax (0444) 885911
• 36050 Sovizzo
Viale degli Alpini, 11
Tel. (0444) 536384
Telefax (0444) 536619
• 36073 Spagnago di Cornedo
Vicentino
Via Monte Cimone, 41
Tel. (0445) 431464
Telefax (0445) 431430
• 36067 Termine di Cassola
Viale Venezia, 33
Tel. (0424) 32100
Telefax (0424) 511575
• 36016 Thiene
Via Trento, 2
Tel. (0445) 854211
Telefax (0445) 363999
• 36016 Thiene - Filiale n. 1
Viale del Lavoro, 2
Tel. (0445) 369700
Telefax (0445) 368825
• 36036 Torrebelvicino
Piazza A. Moro
Tel.(0445) 570200
Telefax (0445) 570057
• 36040 Torri di Quartesolo
Via Roma, 33
Tel. (0444) 581933
Telefax (0444) 380293
• 36070 Trissino
Via dell’Industria, 91
Tel. (0445) 491044
Telefax (0445) 491180
• 36078 Valdagno
Piazza Dante, 8
Tel. (0445) 409200
Telefax (0445) 408933
• 36010 Velo D’Astico
Via Roma, 16
Tel. (0445) 740900
Telefax (0445) 740141
• 36020 Villaganzerla
Via Piazza, 118
Tel. (0444) 639121
Telefax (0444) 638460
• 36030 Villaverla
Via Milano, 1
Tel. (0445) 855622
Telefax (0445) 856388
• 36010 Zanè
Via Manzoni 26
Tel.(0445) 380224
Telefax (0445) 381118
• 36050 Zermeghedo
Via Michelangelo, 3
Tel. (0444) 484099
Telefax (0444) 484222
• 36030 Zugliano
Via Roma, 68
Tel. (0445) 330200
Telefax (0445) 330093
Province of Asti
• 14100 Asti
Piazza Medici, 18
Tel. (0141) 598798
Telefax (0141) 598808
Province of Belluno
• 32021 Agordo
Via XXVII Aprile, 44
Tel. (0437) 640606
Telefax (0437) 640631
• 32030 Arten di Fonzaso
Piazza San Gottardo, 23
Tel. (0439) 568125
Telefax (0439) 568015
• 32041 Auronzo di Cadore
Via Roma 63/A
Tel. (0435) 400805
Telefax (0435) 400806
• 32100 Belluno
Via Vittorio Veneto, 187
Tel. (0437) 9351
Telefax (0437) 931800
• 32100 Belluno - Filiale n. 1
Piazza Martiri, 27/C
Tel. (0437) 950807
Telefax (0437) 950726
• 32016 Farra d’Alpago
Via Matteotti, 75/B
Tel. (0437) 46096
Telefax (0437) 454751
• 32032 Feltre
Viale Monte Grappa 18/B
Tel. (0439) 840813
Telefax (0439) 83035
• 32013 Longarone
Via Marconi, 1
Tel. (0437) 573425
Telefax (0437) 578780
• 32026 Mel
Via Tempietto, 15/B
Tel. (0437) 540240
Telefax (0437) 540257
• 32010 Pieve d’Alpago - Loc. Paludi
Via dell’Industria 6/A
Tel. (0437) 989283
Telefax (0437) 989317
• 32014 Ponte nelle Alpi
Viale Dolomiti, 23
Tel. (0437) 990562
Telefax (0437) 990522
• 32035 Santa Giustina
Via Roma, 15/D
Tel. (0437) 859355
Telefax (0437) 859362
• 32036 Sedico
Piazza della Vittoria, 19/B
Tel. (0437) 853109
Telefax (0437) 82548
• 32040 Tai di Cadore
P.zza Venezia, 14
Tel. (0435) 501538
Telefax (0435) 501540
• 32028 Trichiana
Via Roma, 35
Tel. (0437) 555571
Telefax (0437) 555564
• 32040 Vallesella di Cadore
Via Vittorio Veneto, 2
Tel. (0435) 728150
Telefax (0435) 728292
Province of Bologna
• 40122 Bologna
Viale Vicini, 16/18
Tel. (051) 6494769-777
Telefax (051) 6494761
Province of Como
• 22100 Como
Piazza Cavour, 24
Tel. (031) 303544
Telefax (031) 309217
Province of Genova
• 16043 Chiavari
Corso Dante, 39
Tel. (0185) 323400
Telefax (0185) 323074
• 16121 Genova
Via delle Casaccie, 78/98
Tel. (010) 5762811
Telefax (010) 585908
Province of Gorizia
• 34170 Gorizia
Corso Italia, 45
Tel. (0481) 538902
Telefax (0481) 538905
• 34073 Grado
Via Martiri della Libertà, 29
Tel. (0431) 877044
Telefax (0431) 877037
• 34074 Monfalcone
Via Duca d’Aosta, 97
Tel. (0481) 413654
Telefax (0481) 414106
• 34077 Ronchi dei Legionari
297
Via Roma, 94
Tel. (0481) 776451
Telefax (0481) 474600
Province of Imperia
• 18100 Imperia
Via della Repubblica, 7 - C.P. 500
Tel. (0183) 299011
Telefax (0183) 299005
• 18038 Sanremo
Corso Mondello, 33/35
Tel. (0184) 503121
Telefax (0184) 506424
Province of Mantova
• 46043 Castiglione delle Stiviere
Via Cavour
Tel. (0376) 670311
Telefax (0376) 631981
• 46100 Mantova
Corso V. Emanuele, 31
Tel. (0376) 329605
Telefax (0376) 328912
• 46019 Viadana
Piazza Benedetto Cellini, 9
Tel. (0375) 782266
Telefax (0375) 781077
Province of Milano
• 20123 Milano
Via Torino / Ang. Via S. Vito
Tel. (02) 864941
Telefax (02) 86450672
• 20136 Milano - Filiale n. 1
Via Col di Lana, 6
Tel. (02) 8360048
Telefax (02) 8378762
• 20154 Milano - Filiale n. 2
Corso Como, 15
Tel. (02) 29010129
Telefax (02) 29010321
• 20148 Milano - Filiale n. 3
Via Civitali, 23
Tel. (02) 4039350
Telefax (02) 4075146
• 20155 Milano - Filiale n. 4
Via Tolentino, 1
Tel. (02) 316064
Telefax (02) 315709
• 20144 Milano - Filiale n. 5
Via San Michele del Carso, 13
Tel. (02) 4694299
Telefax (02) 4694499
• 20138 Milano - Filiale n. 6
Viale Ungheria, 20
Tel. (02) 58011002
Telefax (02) 58018062
• 20158 Milano - Filiale n. 7
Piazza Schiavone,
Ang. V.R.M. De Capitani, 14
Tel. (02) 39312917
Telefax (02) 39322534
• 20124 Milano - Filiale n. 8
Viale Tunisia - Ang. Via Lecco, 12
Tel. (02) 29401695
Telefax (02) 20240606
Province of Padova
• 35031 Abano Terme
Via Martiri d’Ungheria, 14
Tel. (049) 8602928
Telefax (049) 8602691
• 35020 Albignasego
Via Roma, 117
Tel. (049) 8626728
Telefax (049) 8626732
• 35010 Busa di Vigonza
Via Regia, 37
Tel. (049) 8935025
Telefax (049) 8935057
• 35010 Cadoneghe
Strada del Santo, 17
Tel. (049) 8871951
Telefax (049) 8872654
• 35012 Camposampiero
Via Rialto, 1
Tel. (049) 9303022
Telefax (049) 9303218
• 35026 Conselve
V.le Venezia, 1
Tel. (049) 5384039
Telefax (049) 9501342
• 35015 Galliera Veneta
Via Roma, 164
Tel. (049) 5969133
Telefax (049) 5969460
• 35010 Limena
Via del Santo, 4
Tel. (049) 8842956
Telefax (049) 8842163
• 35010 Loreggia
P.zza Papa Luciani, 8
Tel. (049) 5793055
Telefax (049) 5794442
• 35015 Mottinello di Galliera V.
Via Mottinello Nuovo, 31
Tel. (049) 9440066
Telefax (049) 9440301
• 35027 Noventa Padovana
Via Roma, 1
Tel. (049) 8935936
Telefax (049) 8935940
• 35010 Onara di Tombolo
Via Sen. G. Cittadella, 5/A
Tel. (049) 5993788
Telefax (049) 5993761
• 35121 Padova
Via Trieste, 45
Tel. (049) 660222
Telefax (049) 660952
• 35139 Padova - Filiale n. 1
Corso Milano, 22
Tel. (049) 656132
Telefax (049) 8756129
• 35127 Padova - Filiale n. 2
Corso Stati Uniti, 23
Tel. (049) 6988333
Telefax (049) 8704758
• 35020 Ponte S. Nicolò
Via Volturno, 2
Tel. (049) 8962205
Telefax (049) 8962148
• 35030 Rubano
Via Rossi, 3/N
Tel. (049) 8987272
Telefax (049) 8987274
• 35046 Saletto di Vigodarzere
Via Leonardo Da Vinci, 61
Tel. (049) 8849110
Telefax (049) 8849101
• 35010 San Giorgio In Bosco
Via Valsugana, 86
Tel. (049) 9451053
Telefax (049) 9451085
• 35018 San Martino di Lupari
Via Roma, 68
Tel. (049) 9461288
Telefax (049) 9461261
• 35010 Santa Eufemia di Borgoricco
Via della Pieve, 43
Tel. (049) 9335454
Telefax (049) 9335144
• 35011 S. Andrea di Campodarsego
Via Caltana, 182
Tel. (049) 9201226
Telefax (049) 9200911
• 35030 Tencarola di Selvazzano
Via Padova, 24
Tel. (049) 8687071
Telefax (049) 8687074
• 35019 Tombolo
Via Roma, 7/A
Tel. (049) 9470813
Telefax (049) 9470893
• 35010 Trebaseleghe
Via C. Menotti, 32
Tel. (049) 9386810
Telefax (049) 9386813
Province of Parma
• 43043 Borgo Val di Taro
Piazzale Lauro Grossi, 2
Tel. (0525) 920018
Telefax (0525) 920037
• 43036 Fidenza
Via Cornini Malpeli, 13
Tel. (0524) 528180
Telefax (0524) 528140
• 43100 Parma
Via Emilia Est, 56/B
Tel. (0521) 480411
Telefax (0521) 242408
• 43100 Parma - Filiale n. 1
Piazzale Santa Croce, 29
Tel. (0521) 207122
Telefax (0521) 231223
• 43100 Parma - Filiale n. 2
Via Toscana, 94
Tel. (0521) 460714
Telefax (0521) 461539
Province of Pavia
• 27020 Alagna
Piazza Castello, 15
Tel. (0382) 818137
Telefax (0382) 818129
• 27030 Castello d’Agogna
Via Novara, 1
Tel. (0384) 256550
Telefax (0384) 256555
• 27100 Pavia
Via Golgi, 63/A
Tel. (0382) 422766
Telefax (0382) 422934
• 27020 Sartirana Lomellina
Via Cavour, 133
Tel. (0384) 800203
Telefax (0384) 800223
• 27020 Scaldasole
Via Roma, 5
Tel. (0382) 907772
Telefax (0382) 907962
• 27029 Vigevano
Via Merula, 24/26
Tel. (0381) 88607
Telefax (0381) 75675
Province of Piacenza
• 29100 Piacenza - Filiale n. 1
Via Medaglie d’Oro, 7
Tel. (0523) 713081
Telefax (0523) 758113
Province of Pordenone
• 33082 Azzano Decimo
Via Maestri del Lavoro, 28
Tel. (0434) 633438
Telefax (0434) 640898
• 33080 Bannia
Piazza E. Fermi, 1
Tel. (0434) 560465
Telefax (0434) 957535
• 33084 Cordenons
Piazza della Vittoria, 36
Tel. (0434) 581285
Telefax (0434) 581275
• 33080 Fiume Veneto
Via San Francesco, 36/38
Tel. (0434) 564211
Telefax (0434) 561563
• 33085 Maniago
P.zza Italia, 32
Tel. (0427) 733044
Telefax (0427) 733028
• 33075 Morsano al Tagliamento
P.zza Daniele Moro, 3
Tel. (0434) 697014
Telefax (0434) 697839
• 33087 Pasiano di Pordenone
Via Roma, 102
Tel. (0434) 604077
Telefax (0434) 604078
• 33080 Porcia
Piazzetta Remigi, 1
Tel. (0434) 923108
Telefax (0434) 591366
• 33170 Pordenone
Via Martelli, 14
Tel. (0434) 241477
Telefax (0434) 241166
• 33080 Prata di Pordenone
Via Cesare Battisti, 68
Tel. (0434) 611177
Telefax (0434) 621992
• 33077 Sacile
V.le Lacchin, 64
Tel. (0434) 737208
Telefax (0434) 737209
• 33078 San Vito al Tagliamento
Piazza del Popolo, 62
Tel. (0434) 875095
Telefax (0434) 875223
• 33079 Sesto al Reghena
Via degli Olmi, 11/A
Tel. (0434) 699010
Telefax (0434) 699292
• 33097 Spilimbergo
Via Barbacane, 6
Tel. (0427) 926123
Telefax (0427) 419080
• 33080 Zoppola
Via Pancera, 4
Tel. (0434) 574522
Telefax (0434) 574512
Province of Rovigo
• 45100 Rovigo
Via Sacro Cuore, 5
Tel. (0425) 423853
Telefax (0425) 29822
Province of Torino
• 10123 Torino
Via Lagrange, 10
Tel. (011) 5424010
Telefax (011) 539988
Province of Treviso
• 31050 Barbisano
Via Montegrappa, 1
Tel. (0438) 981455
Telefax (0438) 981464
• 31040 Bavaria di Nervesa della B.
Via Aldo Moro, 2
Tel. (0422) 882266
Telefax (0422) 882267
• 31030 Bessica di Loria
Via D. Alighieri, 22
Tel. (0423) 471001
Telefax (0423) 471010
• 31030 Bigolino
P.zza Mons. Guadagnini, 58
Tel. (0423) 981385
Telefax (0423) 982015
• 31031 Caerano S. Marco
298
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Via A. Gramsci, 9
Tel. (0423) 859679
Telefax (0423) 859680
31011 Casella d’Asolo
Via Tiziano, 150
Ang. Via Foresto Nuovo
Tel. (0423) 950860
Telefax (0423) 950861
31033 Castelfranco
Corso XXIX Aprile, 23
Tel. (0423) 423211
Telefax (0423) 423214
31033 Castelfranco - Filiale n. 1
Borgo Treviso, 159/161
Tel. (0423) 722801
Telefax (0423) 722859
31033 Castelfranco - Filiale n. 2
Treville
Via Castellana, 29
Tel. (0423) 472985
Telefax (0423) 472488
31033 Castelfranco - Filiale n. 3
Via Brenta, 10
Tel. (0423) 720025
Telefax (0423) 721176
31033 Castelfranco - Filiale n. 4
Borgo Padova, 34
Tel. (0423) 721902
Telefax (0423) 721774
31033 Castelfranco - Filiale n. 5
Piazza della Serenissima, 32
Tel. (0423) 722578
Telefax (0423) 744098
31030 Castello di Godego
Via Marconi, 22
Tel. (0423) 469041
Telefax (0423) 469881
31034 Cavaso del Tomba
Via San Pio X, 2 - Loc. Caniezza
Tel. (0423) 543401
Telefax (0423) 543402
31030 Cison di Valmarino
Via IV Novembre, 11
Tel. (0438) 975375
Telefax (0438) 85400
31010 Col San Martino
Via Giarentine, 1
Tel. (0438) 898104
Telefax (0438) 989567
31015 Conegliano
Via XXIV Maggio, 12
Tel. (0438) 415462
Telefax (0438) 415526
31030 Dosson di Casier
P.zza Leonardo Da Vinci, 2
Tel. (0422) 491419
Telefax (0422) 491429
31050 Fanzolo di Vedelago
Via Stazione, 28/A
Tel. (0423) 487011
Telefax (0423) 476507
31010 Farra di Soligo
Via Calnova, 1/A
Tel. (0438) 900101
Telefax (0438) 900121
31010 Fregona
Via Mezzavilla Centro, 3
Tel. (0438) 915009
Telefax (0438) 915090
31040 Guia di Valdobbiadene
Strada di Guia, 16
Tel. (0423) 901090
Telefax (0423) 901090
31036 Istrana
P.le Roma, 91 Est
Tel. (0422) 832414
Telefax (0422) 832394
• 31037 Loria
Via Roma, 9
Tel. (0423) 755125
Telefax (0423) 755090
• 31021 Mogliano Veneto
Piazza Caduti, 38/39
Tel. (041) 5904333
Telefax (041) 5904340
• 31044 Montebelluna
Via Roma, 51
Tel. (0423) 614165
Telefax (0423) 614173
• 31010 Moriago della Battaglia
Via A. Moro, 46
Tel. (0438) 890083
Telefax (0438) 890133
• 31046 Oderzo
Via Spinè, 2
Tel. (0422) 815957
Telefax (0422) 815959
• 31050 Onigo di Pederobba
Via Case Rosse, 2/A
Tel. (0423) 688686
Telefax (0423) 688942
• 31038 Paese
Via Postumia, 130
Tel. (0422) 450480
Telefax (0422) 450483
• 31047 Ponte di Piave
Via Roma, 24
Tel. (0422) 857986
Telefax (0422) 857987
• 31022 Preganziol
Via Roma, 4
Tel. (0422) 331564
Telefax (0422) 639070
• 31023 Resana
Via Castellana, 41
Tel. (0423) 480105
Telefax (0423) 480216
• 31039 Riese Pio X
Via A. De Gasperi, 5/A
Tel. (0423) 483207
Telefax (0423) 454330
• 31056 Roncade
Piazza I° Maggio, 15
Tel. (0422) 841531
Telefax (0422) 841532
• 31020 Rua di S. Pietro di Feletto
Via Roma, 17/D
Tel. (0438) 486997
Telefax (0438) 486997
• 31020 San Fior
Via Europa, 67
Tel. (0438) 260303
Telefax (0438) 260265
• 31020 San Giacomo di Veglia
Piazza Fiume, 37
Tel. (0438) 912080
Telefax (0438) 912111
• 31020 San Polo di Piave
Via Roma, 60
Tel. (0422) 856688
Telefax (0422) 856689
• 31020 San Vendemiano
Via Roma, 13
Tel. (0438) 400378
Telefax (0438) 400347
• 31020 San Zenone degli Ezzelini
Via Marconi, 68
Tel. (0423) 968080
Telefax (0423) 968989
• 31040 Segusino
Viale Italia, 229
Tel. (0423) 978971
Telefax (0423) 978977
• 31020 Sernaglia della Battaglia
P.zza Martiri, 24
Tel. (0438) 966230
Telefax (0438) 966184
• 31040 Signoressa di Trevignano
Via Feltrina, 1/F-1/G
Tel. (0423) 677173
Telefax (0423) 671043
• 31053 Solighetto
Via San Gallet - Ang. Brandolini
Tel. (0438) 981653
Telefax (0438) 981654
• 31058 Susegana
Via Conegliano, 96
Tel. (0438) 60813
Telefax (0438) 451511
• 31100 Treviso
Viale Luzzatti, 82
Tel. (0422) 431970
Telefax (0422) 432467
• 31100 Treviso
Filiale n. 1
Via G. Dannunzio, 17/B
Tel. (0422) 591047
Telefax (0422) 540738
• 31100 Treviso - Filiale n. 2
Via S. Pelajo, 119
Tel. (0422) 307246
Telefax (0422) 307193
• 31100 Treviso - Filiale n. 3
Via Montegrappa, 32
Tel. (0422) 264282
Telefax (0422) 234110
• 31100 Treviso - Filiale n. 4
Via 4 Novembre, 84/A
Tel. (0422) 546192
Tel. (0422) 546129
• 31049 Valdobbiadene
Piazza Marconi, 15
Tel. (0423) 970611
Telefax (0423) 972625
• 31050 Vedelago
Via Crispi, 8
Tel. (0423) 400116
Telefax (0423) 401331
• 31020 Vidor
Via Capitello, 7
Tel. (0423) 987121
Telefax (0423) 987101
• 31050 Villorba
Via A. Pacinotti, 1/C
Tel. (0422) 608368
Telefax (0422) 918128
• 31029 Vittorio Veneto
Via Dante, 133
Tel. (0438) 940980-990
Telefax (0438) 940951
Province of Trieste
• 34015 Muggia
Via Manzoni, 4
Tel. (040) 9278651
Telefax (040) 9278664
• 34121 Trieste
Via Mazzini, 12
Tel. (040) 662662
Telefax (040) 662002
• 34122 Trieste - Filiale n. 1
Piazza San Giovanni, 1
Tel. (040) 662750
Telefax (040) 662796
• 34123 Trieste - Filiale n. 2
Via Locchi, 26/1
Tel. (040) 313333
Telefax (040) 312323
• 34141 Trieste - Filiale n. 3
Via Settefontane, 37
Tel. (040) 9380282
Telefax (040) 9380283
• 34133 Trieste - Filiale n. 4
Via Coroneo, 17/E
Tel. (040) 3478145
Telefax (040) 630297
• 34147 Trieste - Filiale n. 5
Via Flavia, 120
Tel. (040) 281291
Telefax (040) 8320070
• 34135 Trieste - Filiale n. 6
Via L Stock, 4/4
Tel. (040) 420771
Telefax (040) 418247
Province of Udine
• 33041 Aiello
Piazza Roma, 19
Tel. (0431) 973011
Telefax (0431) 973200
• 33030 Buia
Via S. Stefano, 105
Tel. (0432) 965109
Telefax (0432) 965110
• 33052 Cervignano del Friuli
Piazza Libertà, 16/17
Tel. (0431) 32320
Telefax (0431) 32708
• 33043 Cividale del Friuli
Via Europa, 2
Tel. (0432) 701055
Telefax (0432) 701105
• 33033 Codroipo
Via IV Novembre, 5
Tel. (0432) 908688
Telefax (0432) 908677
• 33100 Cussignacco
Via Verona, 6
Tel. (0432) 602306
Telefax (0432) 602308
• 33010 Feletto Umberto
Via Udine, 18
Tel. (0432) 573027
Telefax (0432) 573573
• 33013 Gemona del Friuli
Via Dante Alighieri, 207
Tel. (0432) 971496
Telefax (0432) 971525
• 33050 Gonars
Via A. De Gasperi, 1
Tel. (0432) 992412
Telefax (0432) 992288
• 33057 Jalmicco
P.zza Unione, 12
Tel. (0432) 929559
Telefax (0432) 924700
• 33054 Lignano Sabbiadoro
Viale Europa, 19/A
Tel. (0431) 723011
Telefax (0431) 723069
• 33044 Manzano
Via San Giovanni, 6/A
Tel. (0432) 740046
Telefax (0432) 740225
• 33035 Martignacco
Via Cividina, 16
Tel. (0432) 678833
Telefax (0432) 678534
• 33057 Palmanova
Piazza Grande, 2
Tel. (0432) 928300
Telefax (0432) 929754
• 33037 Pasian di Prato
Via S. Caterina, 23/A
Tel. (0432) 699033
Telefax (0432) 69585
• 33027 Paularo del Friuli
299
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Via S. Sbrizzai, 12
Tel. (0433) 71056
Telefax (0433) 71062
33050 Pozzuolo
Via della Cavalleria, 13
Tel. (0432) 665050
Telefax (0432) 669788
33040 Pradamano
Via I° Maggio, 62
Tel. (0432) 670688
Telefax (0432) 671201
33040 Premariacco
Piazza Marconi, 9
Tel. (0432) 729867
Telefax (0432) 729868
33038 San Daniele
Via Garibaldi, 11
Tel. (0432) 940906
Telefax (0432) 940924
33050 San Vito al Torre
Via Roma, 27
Tel. (0432) 997001
Telefax (0432) 997727
33017 Tarcento
Via Garibaldi, 2
Tel. (0432) 783915
Telefax (0432) 783923
33018 Tarvisio
Via Roma, 22
Tel. (0428) 41029
Telefax (0428) 41043
33028 Tolmezzo
Piazza XX Settembre, 12
Tel. (0433) 41900
Telefax (0433) 44300
33019 Tricesimo
Piazza Garibaldi, 45
Tel. (0432) 881725
Telefax (0432) 881372
33100 Udine
Via Cavour, 24
Tel. (0432) 516311
Telefax (0432) 516356
33100 Udine - Filiale n. 1
Viale Europa Unita, 85
Tel. (0432) 503020
Telefax (0432) 501147
33100 Udine - Filiale n. 2
Piazzale Chiavris, 36
Tel. (0432) 547200
Telefax (0432) 546222
33100 Udine - Filiale n. 3
Viale L. Da Vinci, 107
Tel. (0432) 402828
Telefax (0432) 400460
33100 Udine - Filiale n. 4
Viale Forze Armate, 4
Tel. (0432) 581827
Telefax (0432) 284810
33100 Udine - Filiale n. 5
Via Pozzuolo, 143
Tel. (0432) 532353
Telefax (0432) 532301
33100 Udine - Filiale n. 6
Via Marghera, 2
Tel. (0432) 503437
Telefax (0432) 512470
33100 Udine - Filiale n. 7
Via Anton Lazzaro Moro, 8
Tel. (0432) 229362
Telefax (0432) 229354
33100 Udine - Filiale n. 8
Viale Vat, 109
Tel. (0432) 471693
Telefax (0432) 471721
• 33100 Udine - Filiale n. 9
Piazzale XXVI Luglio, 62
Tel. (0432) 534378
Telefax (0432) 534075
• 33100 Udine - Filiale n. 10
Via Pradamano, 41/B
Tel. (0432) 526153
Telefax (0432) 524363
Province of Varese
• 21052 Busto Arsizio
Via Zappellini, 17
Tel. (0331) 677293
Telefax (0331) 670843
Province of Venezia
• 30020 Bibione
Corso del Sole, 49
Tel. (0431) 437418
Telefax (0431) 437207
• 30021 Caorle
Via Strada Nuova, 30
Tel. (0421) 212429
Telefax (0421) 211153
• 30020 Cinto Caomaggiore
Via Roma, 125
Tel. (0421) 241274
Telefax (0421) 241254
• 30020 Marcon
Via Alta, 55
Tel. (041) 5950663
Telefax (041) 5952177
• 30030 Martellago
Via Castellana, 40/H
Tel. (041) 5402332
Telefax (041) 5402600
• 30030 Mellaredo di Pianiga
Via Noalese Sud , 44/1
Tel. (041) 5190339
Telefax (041) 5190342
• 30020 Meolo
Riviera 18 Giugno, 62
Tel. (0421) 345431
Telefax (0421) 345424
• 30174 Mestre
Via F.lli Rondina, 3 - P.zza A. Coin
Tel. (041) 959952
Telefax (041) 958497
• 30172 Mestre - Filiale n. 1
Ca’ Marcello, 67/A
Tel. (041) 5310005
Telefax (041) 5316713
• 30034 Mira
Via Nazionale, 226
Tel. (041) 4265144
Telefax (041) 4265834
• 30035 Mirano
Via Gramsci, 54
Tel. (041) 5701500
Telefax (041) 5701320
• 30026 Portogruaro
Via Martiri della Libertà, 109
Tel. (0421) 280496
Telefax (0421) 72299
• 30028 S. Michele al Tagliamento
Via Venudo, 15
Tel. (0431) 521838
Telefax (0431) 521801
• 30027 San Donà di Piave
Corso Silvio Trentin, 75
Tel. (0421) 332188
Telefax (0421) 332180
• 30036 Santa Maria di Sala
Via Cavin di Sala, 53
Tel. (041) 5760235
Telefax (041) 5760234
• 300367 Scorzè
Via Venezia, 33
Tel. (041) 5841932
Telefax (041) 5840962
• 30019 Sottomarina di Chioggia
Viale Veneto, 20
Tel. (041) 5500995
Telefax (041) 5501102
• 30039 Stra
P.zza O. Tombolan Fava
Tel. (049) 9801544
Telefax (049) 9801536
• 30020 Stretti di Eraclea
Via Cadorna, 21
Tel. (0421) 316500
Telefax (0421) 316496
• 30125 Venezia Rialto
S. Polo 370/371 (Campo Beccarie)
Tel. (041) 5210722
Telefax (041) 5205987
• 30124 Venezia S. Marco
Calle Goldoni, 4403
Sestiere di S. Marco
Tel. (041) 2413240
Telefax (041) 2413237
Province of Verona
• 37040 Bevilacqua
Via Roma, 45/A
Tel. (0442) 93666
Telefax (0442) 93650
• 37040 Bonavigo
Via Trieste, 13/15
Tel. (0442) 670077
Telefax (0442) 670090
• 37012 Bussolengo
Via Verona, 8/A
Tel. (045) 6700377
Telefax (045) 6700504
• 37043 Castagnaro
Via D. Alighieri, 40
Tel. (0442) 675588
Telefax (0442) 675582
• 37053 Cerea
Via Roma, 2
Tel. (0442) 320871
Telefax (0442) 321042
• 37030 Colognola ai Colli
Via Stra’, 52
Tel. (045) 6151400
Telefax (045) 6151404
• 37020 Dolcè
Via Passo di Napoleone, 1103 E/F/G
Tel. (045) 6862896
Telefax (045) 7732655
• 37017 Lazise
Loc. La Pezza, 4/B
Tel. (045) 7581318
Telefax (045) 7581286
• 37045 Legnago
Via Duomo, 17
Tel. (0442) 603245
Telefax (0442) 602414
• 37047 Prova di S. Bonifacio
Via Prova, 47/C
Tel. (045) 6101544
Telefax (045) 6102079
• 37034 Quinto di Valpantena
Via Valpantena, 31
Tel. (045) 8700769
Telefax (045) 8700818
• 37056 Salizzole
Via Roma, 53
Tel. (045) 6901444
Telefax (045) 6901448
• 37035 San Giovanni Ilarione
Via Ca’ Rosse, 32
Tel. (045) 7465200
Telefax (045) 7465233
• 37057 San Giovanni Lupatoto
Via Roma, 3
Tel. (045) 8752848
Telefax (045) 9250160
• 37040 Santo Stefano di Zimella
Via Martiri della Libertà, 40
Tel. (0442) 490064
Telefax (0442) 490559
• 37067 Valeggio sul Mincio
P.zza Vittorio Veneto, 5/C
Tel. (045) 7952226
Telefax (045) 6370620
• 37122 Verona
Via Oriani, 6/C
Tel. (045) 8007855
Telefax (045) 8031242
• 37138 Verona - Filiale n. 1
Corso Milano, 114
Tel. (045) 8101088
Telefax (045) 8100953
• 37135 Verona - Filiale n. 2
Largo Perlar, 8/10
Tel. (045) 502090
Telefax (045) 506693
• 37131 Verona - Filiale n. 3
Via del Capitel, 3/D
Tel. (045) 524635
Telefax (045) 8402458
• 37126 Verona - Filiale n. 4
Via Todeschini, 19
Tel. (045) 8350985
Telefax (045) 8350692
• 37047 Villabella di S. Bonifacio
Crosaron di Villabella, 18
Tel. (045) 7613822
Telefax (045) 7613647
• 37062 Villafranca Fr. Dossobuono
Via Cavour, 71
Tel. (045) 8600642
Telefax (045) 8600150
REPRESENTATIVE
OFFICE
• Hong Kong
Room 1306, Nine Queen’s Road
Central - Hong Kong
Tel. 00852-21472955
Telefax 00852-21472997
E-mail: [email protected]
• Shanghai
Unit 3307b, The Center, No. 989
Changle Road,
Xuhui District, Shanghai
P.R. China
Postcode: 200030
Tel. (86.21) 540754455, 54075456
Telefax (86.21) 54075457
E-mail: [email protected]
• New Delhi
1510-12 Narain Manzil
23 Barakhamba Road
Phone: ++91 11 41524344/5
Fax: ++91 11 41524346
E-mail: [email protected]
SUBSIDIARY BANKS
• Dublin
BPV Finance (International) P.l.c.
KBC House - 4 George’s Dock
IFSC - International Financial
Service Centre - Dublin (Ireland)
Tel. 00353-1-6720630
Telefax 00353-1-6720633
Swift BPVIIE21
E-mail: [email protected]
300
• Bratislava
L’udovà Banka A.S.
Vysoká 9
SK-81000 Bratislava
Repubblica Slovacca
Tel. 00421-2-59211401
Fax 00421-2-59211410
Swift LUBA SK BX
Sig. Michele Gallo
• Bucharest
Volksbank Romania S.A.
Mihai Bravu 171, Sector 2
RO 030244 - Bucharest - Romania
Tel. 004021-4056530
Fax 004021-4056539
Swift VBBU RO BU
Sig. Angelo Manera
• Budapest
Magyarorszagi Volksbank Zrt
Rákóczi út 7
H-1088 Budapest - Ungheria
Tel. 0036-1-3286577
Fax 0036-1-3286566
Swift MAVO HU HX
Sig. ra Krisztina Feher
• Lubiana
Volksbank-Ljudska Banka D.D.
Dunajska 128A
SLO-1000 Ljubjiana - Slovenia
Tel. 00386-1-5307594
Fax 00386-1-5307555
Swift SLBV SI 2X
Sig.ra Katarina Cetinski
• Praga
Volksbank CZ A.S.
Lazaeska 8
CZ-12000 Praha 1 - Repubblica Ceca
Tel. 00420-234-706827
Fax 00420-234-706850
Swift: VBOE CZ 2X
Sig. Giorgio Migliorini
• Sarajevo
Volksbank BH D.D.
Fra Andjela Zvizdovića 1
BiH-71000 Sarajevo-Bosnia Erzegovina
Tel. 00387-33-250010
Fax 0037-33-250036
Swift: VBSA BA 22
Sig Edin Zeco
• Zagabria
Volksbank D.D.
Varsavska 9
HR-10000 Zagreb - Croazia
Tel. 00385-1-6001285
Fax 00385-1-6001203
Swift: VBCR HR 22
Sig.ra Sandra Posic
ASSOCIATED BANKS
• Beograd
Volksbank A.D.
Bulevar Umetnosti 16a
SCG-11070 Beograd
Serbia& Montenegro
Tel. 00385-11-2013203
Fax. 00385-11-2013270
Swift: VBOE CS BG
Sig.ra Gordana Matić
• Sliema
Volksbank Malta LTD
Dingli Street, 53
SLM 09 Sliema - Malta
Tel. 00356-234-94211
Fax 00356-213-47200
Swift: VBMA MT M3
Sig.ra Jeannette Apap
Stampa: Tipografia Rumor S.r.l., Vicenza
Gruppo Banca
Popolare di Vicenza