REPORT AND ACCOUNTS 2001 36th Period

Transcription

REPORT AND ACCOUNTS 2001
36th Period
ORDINARY SHAREHOLDERS’ MEETING
OF 20 APRIL 2002
Cooperative society with limited liability
Entered in the Treviso Companies Register under no. 00208740266
Shareholders’ equity as at 31/12/2001 € 333,219,369.00
Member of the Interbank Deposit Protection Fund
Luigi Serena
(Montebelluna 1855Treviso 1911
Luigi Serena is without a doubt one of the most important of the artists born
in the Treviso area around the middle of the 19th century.
In the world of painting, he was the best at interpreting the local figurative
culture as tightly bound to its socio-economic environment. Indeed, the
whole of Luigi Serena’s activity revolves around a search for themes of the
verism school set within his own native lands.
His training follows the classic didactic path of every other Venetian artist of
the time: the Accademia delle Belle Arti and the Venetian environment in the
broadest of senses. However, his figurative interests made use of the formal
education received in Venice, which was elaborated to depict the style of life
of the place he was to return to at a later date, to settle and to work in.
The large number of prizes he received during his studies are proof of
Serena’s undoubted artistic ability.
Apart from the influence of the Accademia, two artists stand out from the others as reference points for Serena: Giacomo Favretto and Luigi Nonno. He
clearly forged his artistic path as a new painter by way of formal ideas and
compositions that were close to theirs.
As from 1878 – the year in which he returned to settle permanently in Treviso,
re-establishing relations with his native Montebelluna – Luigi Serena was to
become one of the main interpreters of Verism, which was becoming the way
to react to “historical” art.
His artistic universe was to remain the hinterland of Treviso, although his art
showed some indirect influences and developments brought about by anything “modern” that managed to seep through from the outside world. If on
the one hand this may be seen as a limitation, on the other hand it was certainly the factor that made Luigi Serena the artist who perhaps best knew
how to grasp the reality of the social, economic and cultural life of our land;
he remained mostly free of external conditioning that might have changed
the result and deprived him of all those strictly indigenous connotations (not
only in the choice of subject, but also in the composition and colours) that
make his paintings a testimony to a real era of our past.
Luigi Serena essentially kept these characteristics even when, following the
changes in artistic tendencies during the century, new figurative styles were
to appear in his works; in his search for a luministic effect he found new and
greater opportunities to portray life in his native land.
2
A GALLANT CONVERSATION
STABLE SCENE
CONTENTS
BALANCE SHEET
BUSINESS ORGANISATION ............................................................................ pg.
9
BOARD OF DIRECTORS FOR 2001 ................................................................ pg.
13
ORDINARY SHAREHOLDERS’ MEETING - NOTICE AND AGENDA ................. pg.
15
REPORT ON OPERATIONS .............................................................................. pg.
17
Introduction ........................................................................................... pg.
19
Financial highlights.............................................................................. pg.
20
Macroeconomic scenario .....................................................................
International scenario........................................................................
Italian economy ..................................................................................
Local economy....................................................................................
Italian banking industry ...................................................................
pg.
pg.
pg.
pg.
pg.
22
22
23
23
24
Strategic guidelines .............................................................................. pg.
25
Structural organisation ........................................................................ pg.
25
Values charter......................................................................................... pg.
27
Commercial activity.............................................................................. pg.
Segmentation ...................................................................................... pg.
Product study and development ..................................................... pg.
28
28
28
Communication ..................................................................................... pg.
29
Social and cultural initiatives............................................................. pg.
30
Distribution channels ..........................................................................
Multi-channel distribution ...............................................................
• The traditional network....................................................................
• Innovative channels..........................................................................
pg.
pg.
pg.
pg.
30
30
31
32
Human resources................................................................................... pg.
33
Organisation and technology ............................................................. pg.
34
Controls system ..................................................................................... pg.
35
Risk management .................................................................................
Credit risks ..........................................................................................
Financial risks .....................................................................................
Operational risks ................................................................................
pg.
pg.
pg.
pg.
36
36
37
37
Operational performance ....................................................................
Operations managed on behalf of customers................................
• Direct deposits ..................................................................................
• Indirect deposits ...............................................................................
pg.
pg.
pg.
pg.
38
38
39
40
5
CONTENTS
Loans ........................................................................................................ pg.
• Loan quality...................................................................................... pg.
Financial market activities .................................................................... pg.
41
43
43
Equity investments ............................................................................... pg.
44
Operating results for the year ............................................................
Net interest income............................................................................
Total revenues.....................................................................................
Operating costs...................................................................................
Net income for the period ................................................................
pg.
pg.
pg.
pg.
pg.
49
49
50
50
50
Capital accounts .................................................................................... pg.
Net assets............................................................................................. pg.
Capital for regulatory purposes and the capital ratio.................. pg.
51
51
51
Closing observations ............................................................................ pg.
Important events occuring after the end of the period................ pg.
Future prospects and strategy.......................................................... pg.
52
52
53
Proposals to the meeting ..................................................................... pg.
Proposed approval of the accounts and allocation of net
income.................................................................................................. pg.
53
BALANCE SHEET ........................................................................................... pg.
56
PROFIT AND LOSS ACCOUNT....................................................................... pg.
59
SUPPLEMENTARY NOTE:
Balance sheet contents and form .........................................................
Part A – Evaluation criteria ..................................................................
Part B – Information on the balance sheet .........................................
Part C – Information on the profit and loss account ........................
Part D – Other information ..................................................................
ANNEXES: ......................................................................................................
A - Changes in shareholders’ equity and subordinated debt for
the periods ending 31 December 2000 and 31 December 2001
B - Statement of the assets that still form the shareholder’s
equity under the terms of article 10 of law 72/83, which have
been revalued according to specific laws ....................................
C - List of equity investments .............................................................
D - Cash flow statement.......................................................................
E - List of bonds that can be converted into shares
(art. 2, b, P.D. 137/75) .....................................................................
F - Accounts of subsidiaries (art. 2429, section 3, civil code) .........
G - Accounts of associated companies...............................................
(art. 2429, section 3, civil code).....................................................
53
pg. 60
pg. 61
pg. 68
pg. 98
pg. 106
pg. 107
pg. 108
pg. 110
pg. 112
pg. 114
pg. 116
pg. 118
pg. 150
BOARD OF AUDITORS’ REPORT ................................................................... pg. 165
EXTERNAL AUDITORS’ REPORT .................................................................... pg. 169
REPORT AND RESOLUTIONS OF THE MEETING ........................................... pg. 173
6
CONSOLIDATED
ACCOUNTS
OPERATING REPORT ON THE CONSOLIDATED ACCOUNTS ........................... pg. 179
Introduction ........................................................................................... pg. 181
Veneto Banca Group composition ..................................................... pg. 181
Financial and economic performance of Veneto Banca Group ... pg. 182
Veneto Banca Group companies ........................................................
Veneto Banca.......................................................................................
Banca di Bergamo ..............................................................................
Banca Italo-Romena ...........................................................................
Claris Factor ........................................................................................
Claris Leasing .....................................................................................
Veneto Ireland Financial Services ltd..............................................
Atene ....................................................................................................
Claris Assicurazioni...........................................................................
Claris Broker .......................................................................................
Claris Vita............................................................................................
Nuova Finanziaria Mediterranea ....................................................
Sintesi 2000..........................................................................................
pg.
pg.
pg.
pg.
pg.
pg.
pg.
pg.
pg.
pg.
pg.
pg.
pg.
183
183
184
186
187
188
189
190
190
191
192
193
194
Main strategic and development guidelines................................... pg. 194
Significant post period end events and outlook ............................ pg. 195
CONSOLIDATED BALANCE SHEET ................................................................ pg. 198
CONSOLIDATED PROFIT AND LOSS ACCOUNT ........................................... pg. 201
NOTES TO CONSOLIDATED ACCOUNTS:
Balance sheet contents and form .........................................................
Consolidation principles.......................................................................
Part A – Accounting principles ............................................................
Part B – Notes to the consolidated balance sheet .............................
Part C – Notes to the consolidated profit and loss account ............
Part D – Other information ..................................................................
pg.
pg.
pg.
pg.
pg.
pg.
202
202
204
211
234
240
ANNEXES: ...................................................................................................... pg. 241
A - Changes in shareholders’ equity and subordinated debt for
the periods ending 31 December 2000 and 31 December 2001 pg. 242
B - Group chart ....................................................................................... pg. 244
BOARD OF AUDITORS’ REPORT ON THE CONSOLIDATED BALANCE SHEET pg. 245
EXTERNAL AUDITORS’ REPORT .................................................................... pg. 249
7
BUSINESS ORGANISATION
REGISTERED OFFICE AND GENERAL MANAGEMENT
Montebelluna (TV)- Piazza G.B. Dall’Armi, 1
Tel. (0423) 283.1 - Fax (0423) 301997
BRANCHES
(92)
Belluno (2)
Alano di Piave
Feltre
Via Don Pietro Codemo, 8
Via Marconi, 1
Padua (3)
Padua
San Martino di Lupari
Cittadella
Via Lisbona, 6
Viale Europa, 25
(*)
Pordenone (7)
Maniago
Pordenone
Azzano Decimo
Porcia
Prata di Pordenone
Sacile
Spilimbergo
Via Umberto I, 8
Via Damiani, 2
(*)
(*)
(*)
(*)
(*)
Milan (1)
Milan
Via della Posta, 8/10
Treviso (68)
Altivole
Vedelago
Gaiarine
Arcade
Asolo
Montebelluna
Godega S. Urbano
Borso del Grappa
Caerano di San Marco
Maserada
Cappella Maggiore
Casale sul Sile
Asolo
Castelcucco
Castelfranco Veneto
Cavaso del Tomba
Cimadolmo
Farra di Soligo
Conegliano
Conegliano Ag. 1
Cordignano
Cornuda
Crespano del Grappa
Crocetta del Montello
Fonte
Chiarano
Gaiarine
Gorgo al Monticano
Montebelluna
Via Laguna, 28/b
fraz. Albaredo - Piazza XXIV Maggio, 12
fraz. Albina - Via Roncat, 9
Via Cal Longa, 1
Via Regina Cornaro, 212
fraz. Biadene - Via Feltrina Centro, 145
fraz. Bibano - Via Guglielmo Marconi, 8/a
Via Piave , 2
Via J. Kennedy, 1
fraz. Candelù - Via G. Verdi, 5/A
Via Fiume, 15/17
Via Vittorio Veneto, 13
fraz. Casella - Via Giorgione, 7/a
Via Papa Giovanni, 20
Via S. Pio X, 49
Via Guglielmo Marconi
Via Giuseppe Mazzini, 8
fraz. Col San Martino - Borgo S. Martino, 20
Via Friuli, 8
Corso Mazzini, 7
Via Isonzo, 41
Piazza Giovanni XXIII, 40
Piazza S. Marco, 15
Via Erizzo, 4/5
fraz. Onè - Via Roma, 7
fraz. Fossalta Maggiore - Piazza Europa, 18/20
fraz. Francenigo - Via dei Fracassi, 67
Via G. Marconi ang. Via Postumia Centro
fraz. Guarda - Piazza Vienna, 1/13
9
Spresiano
fraz. Lovadina - Via Lovarini, 37
Mansuè
Piazza San Tiziano, 22
Maser
Piazza Roma, 6
Mogliano Veneto
Via Ronzinella, 172
Montebelluna
Piazza G.B. Dall’Armi, 1
Montebelluna (fil. Virtuale)Piazza G.B. Dall’Armi, 1
Moriago della Battaglia
Piazzale Carlo Conte, 16
Motta di Livenza
Via Magnadola, 28
Ponte di Piave
fraz. Negrisia - Via Chiesa, 65
Nervesa della Battaglia
Piazzale Berti, 4
Oderzo
Via Degli Alpini, 12
Pederobba
fraz. Onigo di Piave - Viale Europa, 3
Paese
Via Pravato Liberato, 4
Pederobba
Via Roma, 90/B-C
Breda di Piave
fraz. Pero - Via G. Garibaldi, 19
Pieve di Soligo
Via Gaetano Schiratti, 131
Susegana
fraz. Ponte della Priula - Via 1° Maggio, 3
Ponzano Veneto
fraz. Paderno - Via Barbaro, 5
Paese
fraz. Postioma - Via Europa Unita, 3
Povegliano
Piazza Vittoria
Riese Pio X
Via Castellana, 4
Salgareda
Via Roma, 127/A
Montebelluna
fraz. San Gaetano - Via San Gaetano, 171
Cimadolmo
fraz. San Michele - Borgo Chiesa, 8/A
San Polo di Piave
Viale della Repubblica, 5
Santa Lucia di Piave
Via Francesco Crispi, 5
Sernaglia della Battaglia
Via Emigranti, 4
Silea
Via Don Minzoni, 6/b
Trevignano
Via Giacomo Puccini, 2
Treviso
Viale Nino Bixio, 1
Treviso (Ag. 1)
fraz. Santa Bona - Via Santa Bona Vecchia, 34
Treviso (Ag. 2)
Piazzetta dei Lombardi
Valdobbiadene
Via Celestino Piva, 55
Maserada
fraz. Varago - Piazza Croce, 5
Vazzola
Piazza Vittorio Emanuele, 45/47
Villorba
Via Roma, 123
Vittorio Veneto
Via Divisione Nannetti, 47
Volpago del Montello
Via Schiavonesca Nuova, 101
Zero Branco
Via Noalese, 21/i
Venice (4)
Mestre
San Donà di Piave
Spinea
Venice
Via Luigi Einaudi, 56
Corso Trentin, 76
Viale Viareggio, 34
San Marco 4233 - Campo Manin
Vicenza (7)
Cassola
Torri di Quartesolo
Trissino
Vicenza
Lonigo
Schio
Thiene
Viale Venezia, 43
Via Roma, 12
Via dell’Artigianato, 98
Viale Crispi, 95/97 - Galleria Crispi, 4
(*)
(*)
(*)
(*) Branches in the process of being set up
10
REPRESENTATIVE OFFICES
Hong Kong
London
FINANCIAL POS
(2)
1609 Lippo Centre Tower Two - 89 Queensway, Admiralty
3 St. Helen’s Place - Bishopsgate
(18)
Belluno
Bologna
Catanzaro
Fano (PE)
Ferrara
Florence
Genoa
Livorno
Messina
Naples
Novi Ligure (AL)
Perugia
Pescara
Pordenone
Rome
Taranto
Trieste
Verona
11
Dott. Flavio Trinca
Chairman
Rag. Vincenzo Consoli
Managing Director
BOARD OF DIRECTORS FOR 2001
BOARD OF DIRECTORS
Chairman
Trinca Flavio
Deputy Chairman
Antiga Franco
Directors
Biasia Francesco
Caberlotto Gaetano
De Bortoli Vitale
Filippin Walter
Gallina Alessandro
Miotto Ireneo
Munari Leone
Nardi Innocente
Perissinotto Gian Quinto
Vardanega Giuseppe
Virago Graziano
Zago Bruno
Zoppas Gianfranco
BOARD OF AUDITORS
Chairman
Fanti Fanio
Statutory Auditors
Sonego Bruno
Zanatta Fulvio
Alternate Auditors
Facchinello Remo
Mazzocato Martino
BOARD OF ARBITRATORS
Chairman
Chiaventone Adolfo
Statutory Arbitrators
Merlo Pietro Giorgio
Schileo Giuseppe
Alternate Arbitrators
Barilà Francesco
Pizzolotto Renato
GENERAL MANAGEMENT
CEO
Consoli Vincenzo
Deputy CEOs
Bressan Armando
Feltrin Romeo
EXTERNAL AUDITORS
Reconta Ernst & Young spa
13
To the SHAREHOLDERS
of
VENETO BANCA
Montebelluna, 22 January 2002
NOTICE OF THE ORDINARY SHAREHOLDERS’ MEETING
The shareholders are hereby informed that the Ordinary Shareholders’ Meeting is convened for the
first time on Friday 19 April 2002 at 8 a.m. and a second meeting will be convened on the following day:
SATURDAY 20 APRIL 2002 at 9 a.m.
at the Palestra Scolastica Polifunzionale “Palazzetto Silvano Mazzalovo”, located in Montebelluna - Via
Malipiero no. 125/A, for the purpose of considering the following agenda:
AGENDA
Item 1) - Reports of the Board of Directors and the Board of Auditors, presentation of the Balance Sheet as
at 31 December 2001 and resulting and inherent resolutions;
Item 2) - Assignment of the function of auditing of the accounts for the three-year period 2002/2004;
Item 3) - Determination of the attendance fees to pay to the Members of the Board of Directors for the period 2002;
Item 4) - Determination of the fees to be paid to the Statutory Auditors for the three-year period 2002/2004;
Item 5) - Appointment of five board members, the Board of Auditors and its Chairman and the Board of
Arbitrators.
According to art. 24 of the Company By-laws, the Ordinary Shareholders’ Meeting will be legitimately convened for the first time when, among those present and represented, at least a quarter of the
shareholders are present and for the second time with any number of attendees.
According to art. 22 of the Company By-laws in order to have the right to attend and vote at the
Meeting, members must, on the date of the first meeting, have been entered in the register of shareholders
for at least three months and, at least five days before the date set for the meeting, must have lodged one
or more properly registered share certificates at the registered office or with subsidiary offices.
Shares already lodged in safekeeping in custody and administration with the Bank, dematerialised
in accordance with the law, are understood, unless otherwise indicated by the shareholder, to be lodged also
for the purposes of participating at the meeting
Each shareholder has one vote, regardless of the number of shares registered to him.
A shareholder may be represented by another shareholder who is not a board member, an auditor
or an employee of the Bank or subsidiary thereof. The proxies, compiled in compliance with the provisions
of the law, may appear both at the first and the second convocation and must be authenticated by a notary
public, with a stamp and legible signature, by a Director, Executive Cadre or a Principal of a subsidiary of the
Bank.
Each shareholder may not represent more than one shareholder, except in the cases of legal representation.
pp. BOARD OF DIRECTORS
THE CHAIRMAN
(Dott. Flavio Trinca)
Notice published, in accordance with art. 21 of the Company By-laws, in Official Gazette no. 48 of 26 February 2002
BOARD OF DIRECTORS’
REPORT
ON OPERATIONS
I NTRODUCTION
To the Shareholders,
The period just ended was particularly significant for our Company which is
becoming an increasingly important player in the economic scenario.
Veneto Banca is undergoing a transformation and is changing from a local
bank with a predominantly provincial horizon to a Group which, in addition
to having a stable base of development in the Piedmont strip which extends
from Pordenone to Bergamo, is also assuming a national connotation.
The objectives which it has set for itself are wide-ranging. The strategic plan
for the three-year period 2002-2004 foresees for the Group the attainment of
185 branches, 18 financial points of sale, 5 private banking centres, 850 financial consultants and 1,000 insurance agents and brokers, distributed throughout the national territory.
In 2001, in particular, the following objectives were set:
• The completion of the process of reorganising and rationalising the operation of Banca Italo Romena which, among other things, involved transferring the head office from Milan to Treviso and opening the Timisoara and
Arad subsidiaries in Romania, in addition to the one in Bucharest;
• The entire reorganisation of the activity of the insurance company Claris
Vita spa, providing for the necessary re-branding, with the aim of creating a
uniform group image;
• The sale of the subsidiary SunAlliance Vita spa;
• The acquisition of 60% of the Bank of Bergamo, with the subsequent relaunch of the company both from an organisational and commercial viewpoint (strengthening of management, migration of the information centre
and opening of five new branches, which are in addition to to the 7 already
in operation);
• The outlining of an operation oriented towards acquiring 29 branches of
the Nuova Banca Mediterranea. The project, among other things, involved
the launch of a Public Purchase Offer, which had a positive outcome, on the
shares of the Banca Popolare del Levante, creating the basis for the formation of a new bank in the south of Italy, which will be called Banca
Meridiana spa;
• The start of the development of new innovative channels with the creation
of Claris Net and Claris Banca.
The operation to acquire branches in the south of Italy deserves a mention.
Presence in this area of the Country emerges from the precise willingness to
have a stronghold in a territory that has considerable potential for development and to provide support to Veneto companies which have already delocalised their production activities in these areas.
To emphasise the, even symbolic, value of this decision, Veneto Banca was at
the side of Unindustria Treviso on 2 March this year in Manfredonia for the
inauguration of the production year, thus reiterating the positive experience
of Timisoara.
19
The initiative, which involved around 1,000 entrepreneurs from all over Italy
and which also involved the participation of the highest government, entrepreneurial and national trade union authorities, enabled the fact to be underlined that development is not the summation of individual actions, but the
result of the action of an industry, within which the loan institutions play a
role of primary importance.
Further to all these activities, the Company also set itself the requirement to
govern the growing organisational complexity, strengthening, from both a
quantitative and qualitative viewpoint, the central structure and equipping
itself with group regulations.
Insofar as the balance sheet and operating results are met, there are many satisfactory elements.
The difficult and turbulent phase crossed by financial markets and the international political crisis did not in fact affect the performances of the Institute
which continued to record positive results.
In the period just ended the assets developed positively, with loans to customers growing by 25.8% and total deposits closing with a positive change of
11.4%.
Net income, before provisions for the risk and charges reserve and the reserve
for general banking risks, increased from 35.2 to 44.4 million euro, with a percentage growth of 26.2%, testimony to the fact that the period just ended was
a highly satisfactory period for the Bank.
F INANCIAL
H IGHLIGHTS
(in € thousands)
Profit and loss figures
Net interest income
Net commission income
Total revenues
Administrative costs
Operating profit
Net income for the period
Balance sheet figures
Total assets
Loans to customers
Securities
Shareholders’ equity
Shareholders’ equity and
subordinated debt
Financial assets of customers
Direct deposits
Indirect deposits
Assets under management
Assets under administration
Structural ratios (%)
Shareholders’ equity/total assets
Customer deposits/total assets
Loans to customers/total assets
Loans to customers/customer deposits
20
31/12/2001 31/12/2000
Change
absolute
%
133,984
55,159
189,143
80,108
109,034
34,108
66,880
70,513
137,393
72,471
64,921
28,510
67,104 +100.34%
-15,354
-21.77%
51,750 +37.67%
7,637 +10.54%
44,113 +67.95%
5,598 +19.63%
3,695,404
2,485,019
483,228
367,327
2,830,069
1,975,283
232,339
265,259
865,335 +30.58%
509,736 +25.81%
250,889 +107.98%
102,068 +38.48%
522,283
373,715
148,568
+39.75%
2,020,597
2,545,260
1,333,810
1,211,450
1,763,902
2,335,990
1,512,200
823,790
256,695
209,270
-178,390
387,660
+14.55%
+8.96%
-11.80%
+47.06%
14.13%
54.68%
67.25%
122.98%
13.21%
62.33%
69.80%
111.98%
+0.92
-7.65
-2.55
+11.00
(in € thousands)
Profitability ratios (%)
ROE (net operating profit/
shareholders’ equity) (*)
ROA (net profit/total assets)
Net interest income/interest-bearing
assets
Net interest income/intermediated
funds
Net interest income/total revenues
Net commission income/
intermediated funds
Total revenues/intermediated funds
Administrative costs/intermediated
funds
Net commission income/total
revenues
Administrative costs/total revenues
Operating expenses/total revenues
Bad debt ratio (%)
Net non-performing loans/loans to
customers
Watch-list/ loans to customers
Net non-performing loans/
shareholders’ equity
Capital ratios (%)
Tier 1 capital/weighted assets
Total shareholders’ equity/weighted
assets
Shareholders’ equity/net loans to
customers
Operating structure and productivity
Average number of statutory employees
Number of bank branches
Number of financial consultants
Loans to employees before tax
Total revenues per employee
31/12/2001 31/12/2000
Change
absolute
13.34%
0.92%
14.88%
1.01%
-1.54
-0.09
3.85%
2.52%
+1.33
3.63%
70.84%
2.36%
48.68%
+1.27
+22.16
1.49%
5.12%
2.49%
4.85%
-1.00
+0.27
2.17%
2.59%
-0.42
29.16%
42.35%
42.35%
51.32%
52.75%
52.75%
-22.16
-10.40
-10.40
0.94%
1.00%
1.07%
1.21%
-0.13
-0.21
4.47%
5.64%
-1.17
10.51%
9.78%
0.73
15.22%
14.30%
0.92
21.02%
18.92%
2.10
831
82
90
2,990
227.6
738
79
21
2,677
186.2
%
93 +12.60%
3
+3.80%
69 +328.57%
313 +11.69%
41.4 +22.23%
(*) Shareholders’ equity net of profit and subordinated debt, and including in the net profit the
provisions for reserves for general banking risks and the risks and charges reserve.
21
M ACROECONOMIC
S CENARIO
With the aim of providing a better interpretation of the results obtained by
our Bank in 2001 we will provide a summary of the salient points that have
characterised the economic/financial scenario of the year just ended.
International scenario
In 2001 the world economy showed a marked downturn which, in the latter
part of the year, following the negative effects on the economy of the terrorist attacks of 11 September in the United States, led to a veritable period of
stagnation. The world gross product however grew mid year by 2.1%, compared with 4.4% in 2000.
GDP at constant prices
(OECD estimates)
6.0
4.0
2.0
0.0
-2.0
1997
1998
1999
USA
JAPAN
2000
2001(*)
EU
Source: National Association of Credit Societies
The industrial countries of the OECD, which overall showed an increase of
the GDP of 1%, compared to 3.3% for the previous year, recorded a later convergence of the average growth rates.
Japan was the only country to experience a decrease: after a slow period of
recovery, the economy re-entered a phase of recession.
The United States also entered into recession in March, after ten years of
expansion, but in the middle of 2001 it recorded a growth of the GDP of 1.1%,
against 4.1% in 2000.
The European Union, while showing major resistance to the recessive trends,
suffered more than anticipated from the deterioration of the world economy.
In the United States the economic policy action aimed at offsetting the economic slowdown was very decisive. The Government brought forward its
plan to reduce taxes and in the meantime the Federal Reserve implemented
an aggressive slowing down of the monetary policy, reducing the tax on “federal funds” to a level that has not been reached since the 1960s (from 6.50% to
1.25%).
The various events which prevented the collapse of the stock market did not,
in the meantime, prevent the economy from entering a phase of recession.
22
Rates Curves 3M
8
0.7
7
0.6
Rates
6
0.5
5
0.4
4
0.3
3
0.2
2
0.1
1
0
0
Jan-99 Mar-99 May-99 Jun-99 Oct-99 Dec-99 Feb-00 May-00 Jul-00 Sep-00 Dec-00 Feb-01 Apr-01 Jun-01 Sep-01 Nov-01
EUR 3M
USD 3M
JPY 3M
Source: Bloomberg
2001 was also a difficult year for the countries of the European Union.
They did, however, register a growth in GDP of 1.7%, which even though
halved in comparison to that of the previous year, showed a positive resistance to the recessive trends.
The key positive contribution to the increase of wealth was given by the net
exports and internal demand in the component of private consumption.
The performance of employment was positive and registered an increase of
1.1%. The rate of unemployment dropped to 7.8%, from 8.1% the previous
year.
Italian economy
Italy recorded a higher result compared to the average of the countries of the
Union, ending 2001 with a positive change in the GDP of 1.9%.
Conversely, industrial production showed a reduction of 2.8%, even if this
was in line with what happened in the main countries of the Euro zone.
As regards price performance, trends were recorded that set inflation against
consumption, which ended 2001 with a positive change of 2.7% and production prices fell 1.3%, above all owing to the energy component.
Finally, figures concerning the employment market are positive: Italy is one
of the countries of the Euro zone with the best development of the unemployment rate which fell 10% on the previous year to 9.3% for 2001.
Local economy
The GDP in the Veneto region grew slower than the national average, registering an increase of 1.6%, compared to 1.9% overall.
However, mainly positive figures can be seen with regard to both internal
demand for consumption and investments, which grew 4.8% against the
national 0.7%, and exports, which ended the year with a change of 6.3%,
against the overall level of 4.8%.
In the Treviso area, after a very positive year in 2000, economic slowdown
indicators were already clearly evident in the initial months of 2001 and were
reinforced over time.
The indicators, in fact, show a considerable downturn both in production
(+0.8%, compared with +6% for the previous year), determined above all by
23
the marked reduction in export growth rates, and orders (-2%, against +5% in
2000).
The “cooling” of the economy is thus clear in the various sectors of activity.
The metal and mechanical sector entered a phase of slowed demand, above
all from the Autumn months. Forecasts for the more immediate period are
still pessimistic, especially on account of the delicate period that Germany is
currently experiencing, which represents the main reference market for our
operators.
The overall performance of the sectors within the sphere of the “fashion
industry” instead appears to be stationary, with the exception of the sectors
of sports footwear and clothing, which registered a fairly positive trend, predominantly in the first part of the year.
In addition, the personal property industry is experiencing a phase of stagnation and, in the immediate future, the trend does not show signs of letting
up. Also in this case the main concerns are coming from the German market,
traditionally important for many local companies.
The plastics sector is likewise experiencing a period of productive stagnation.
Against the trend, with regard to a situation that is on the whole seen to be
somewhat static, are both the wine industry and the food industry, above all
in the sectors of basic foodstuffs (e.g. pasta, charcuterie, cheeses, etc.) and biological products.
Italian banking industry
In 2001 the Italian banking industry experienced a degree of expansion of
activity, characterised by opposed trends of deposits and loans. In fact, while
the rate of growth of deposits from customers saw a marked acceleration
(+6.2%, compared with 2.8% for 2000), loans slowed down their expansion
closing with an increase of 6.7%, against 14.3% at the end of 2000. Within the
scope of such an aggregate, moreover, differentiated growth rhythms were
observed between the short term and medium and long term sectors: the latter increased in fact by more than 8%, compared with a growth rate slightly
greater than 5% for the former.
Such a performance is justified, from the side of deposits, in the improvement
of the financial balance of family firms and their increased preference for liquidity, on account of the growing uncertainty and the disappointing performance of the stock market. With regard to loans, instead, the main factors
are found in the more modest financial requirement of the companies, associated with lower investments and, in the meantime, to the use of alternative
sources of financing, for example bond issues on the euro market.
Bank rates have incorporated the gradual reduction of monetary rates and the
average rate of loans produced a subsequent drop, settling by about one point
below the value of one year ago.
In addition the average rate of deposits registered, in comparison to the end
of 2000, a marked reduction of about 71 base points.
24
Such trends have therefore led to a trend of reduction of the differential
between average rate of the interest-bearing asset and that of heavy funding,
which is on average curbed by 13 base points.
The greatest drops on profitability of the industry are derived, moreover,
from the reduction of “other revenues” (net commissions on services and
profits from financial operations) on account of the lower propensity of
savers to invest in securities.
O PERATING
PERFORMANCE OF
THE MAIN AREAS
OF ACTIVITY
S TRATEGIC
GUIDELINES
We are illustrating, hereafter, the events that characterised the management
of Veneto Banca and the main financial results achieved during the course of
the financial year 2001.
In the Board of Directors meeting of 20 November of the last period, the new
strategic plan for the three-year period 2002-2004 was approved, which
defines the path and the initiatives to carry out in order to further improve
the capacity to create value.
In the general policy document the Bank proposes to be a reality distributed
in the Veneto region and throughout the Piedmont strip comprised between
east Lombardy and Friuli, as well as in Romania with operating points located in the main industrial districts present in the area.
If the national territory, considered as a whole, will be presided over by a network composed of insurance agents and financial consultants, who will operate with the support of the e-bank via the web and call centre, the branches of
the constitutive banking reality in the south of Italy will contribute to major
cover, with physical strongholds of the southern region.
The reference customers will be composed of individuals, companies and
local economic entities, and the Company will respond to their requirements
with ever increasing efficiency, through the offer of innovative and high level
quality products and services.
In the realisation of the company mission, the Bank will operate in complete
autonomy, implementing its own growth strategy internally, with a more
aggressive stronghold over the market and, if the opportunity arises, externally, through possible acquisitions of other banking realities and/or branches.
Furthermore, the institute will market third party products, through the definition of partnership agreements with top quality suppliers.
Own production of products is also provided for, which will reach significant
critical masses.
S TRUCTURAL
ORGANISATIONS
According to the changed company reality, 2001 saw the introduction of a
new structural organisation to encourage the consolidation of results
obtained and the fulfilment of subsequent ambitious targets.
25
Starting with an in-depth analysis of the company reality, lines of intervention were identified that are needed to realise an excellent bank focussed on
added value at all levels:
• Bank extended towards the external customer;
• Territorial structure capable of satisfying the customers’ requirements in a
very short time and of understanding the emerging requirements;
• Organisational structure oriented towards results, capable of identifying
precise responsibilities and stimulating individual initiative.
These objectives have required a complete review both of the role of the
peripheral structure, areas and subsidiaries, and of the structure of the central
management.
The former were strongly oriented towards commercial activity.
The revision of the central structure has instead determined the creation of
three centres of responsibility directly answerable to the Managing Director
and the reorganisation of the staff functions.
In addition to this, Group regulations were recently introduced, with the aim
of formalising all the standards which regulate internal relations.
The documents, in addition to illustrating the organisational installation of
the Group companies and describing the mission and responsibilities of the
parent company and the various subsidiaries, analyses in detail the governing and operational logics of the Group itself, as well as the regulations that
regulate the activities of the individual structures.
The rules, consistent with the fixed strategic guidelines, are based on the following principles:
• Centralisation at the offices of the Parent Company of the activities that are
administrative and technical in nature, in addition to those of commercial
support of the subsidiaries, with the aim of making the processes homogenous and obtaining greater economies of scale;
• Maintenance at the subsidiaries of a distinctly commercial connotation,
with central fluent and essential structures, in close operating and functional contact with the relevant offices of the Parent Company.
The new company structure is represented by the following organisation
chart.
26
FOUNDATION
BOARD OF DIRECTORS
Executive Committee
HUMANA
RESOURCES
CONTROLS
COMPY
AND INVESTMENT
BUSINESS
GENERAL MANAGEMENT
LEGAL
COMPANY
CASHFLOW
PLANNING
MARKETING
& EXTERNAL
RELATIONS
MANAGEMENT COMMITTEE
CENTRAL MANAGEMENT
ADMINISTRATION &
SERVICES
SHARE
CAPITAL
CENTRAL MANAGEMENT
INNOVATIVE CHANNELS
LOGISTIC
DEPTS.
CENTRAL MANAGEMENT
MARKET
ASSETS
ADMINISTRATION
COORDINATOR
PURCHASE
COMMERCIAL
MONITORING
TECHNICIAN
ADMINISTRATION
ACCOUNTING
TECHNICAL
RESOURCES
E-BANK
LOANS
CUSTOMER
FINANCE
CORPORATE
RETAIL
PRIVATE
BANKING
RISK
CONTROL
ORGANISATION
E-SUBSIDIARY
CENTRAL
ABROAD
AUXILIARY
SERVICES
CENTRALISED
PROCESSING
SECURITY
SISTEM OF
PAYMENT
INFORMATION
SYSTEM
ORDINARY
LOANS
FINANCIAL
CONSULTANTS
SPECIAL LOANS
SEGR. LOANS
AREA
TREASURY ENTITIES
MILAN
SUBSID
SECURITIES
VALUES
CHARTER
During 2001 the guide values intended to be permanently acquired by all the
Bank staff were reviewed.
This occurred further to a project to redefine the organisational culture, conducted with the collaboration of SDA Bocconi, whose foundation was the outcome of the development of the thoughts, ideas and perceptions of the entire
Bank structure.
The fundamental values are:
1. orientation towards the customer, to be realised through paying attention
to their requirements, to anticipating new requirements and to resolving
their problems;
2. “responsibilisation”, understood as active and intentional involvement in
company life;
3. attention to change, which manifests itself as intentionally looking
towards the future, by opening up to innovation and flexibility in the realisation of work;
4. the development of professional skills, constantly adapting them to the
demands of the required tasks;
5. staff initiative, which is realised through “entrepreneurial” behaviour at all
levels of responsibility, oriented towards the attainment of objectives;
6. team spirit, understood as cooperation within the organisation, with the
aim of obtaining the required objectives;
7. maintenance of the company reputation, acting honestly and correctly in
all business affairs.
27
C OMMERCIAL
ACTIVITY
Segmentation
Several elements of segmentation were introduced into the company with the
organisational review of the last period. These identified both at central and
suburban level, a specialisation between the corporate, retail and private sectors, safeguarding, moreover, the uniform management of customers.
A retail manager and a corporate manager were introduced into all areas who
will be responsible for meeting the respective guidelines established within
the sphere of the Central Business Management at a functional level.
In the meantime, the creation of territorial “private centres” commenced
which from an organisational viewpoint have similar characteristics to those
mentioned above.
Product study and development
Also in 2001 the Bank’s product policy was kept in line with the development
of demand and the structural changes of the financial panorama.
With regard to its development, the choices relating to the methods and channels used for distribution had a determining effect, in relation to the specific
packages with well defined characteristics that were prepared.
As regards the different sectors, the main initiatives were:
• “Mutuotutto” line: the activity is realised through the offer of a series of
particularly innovative and winning products which tried to “marry” the
possible requirements of product lines in this sector with a wide choice of
financial solutions;
• derivative products: particularly significant, also for returns in terms of
image, the initiative relating to the offer of derivative products to the customer is demonstrated;
• “ride the wave”: the activity in the area of assets under management
developed with the launch of asset management in multi-brand funds,
realised with the support of a leading Swiss bank.
This product line, despite the weak performance of the financial markets, was
a great success within the first months of start-up. It involves management
split into five lines, representing various levels of customer risk propensity,
which allows the ever diversifying requirements of the market to be satisfied
in a targeted manner.
Within the scope of the traditional direct deposit, different types of structured
products were issued whose return was principally linked to the performance
of share prices and to stock exchange indices.
Furthermore, at the start of the year, the commercial offer relating to current
accounts for individuals and families was revised, directing it to a “packaged” product structured around three pricing and service options.
Commercial activity in the sector of financing to private customers thus continued with particular care, especially with regard to consumer credit, whose
28
gratifying results confirmed, once again, the quality of choices that the significant market trends were able to anticipate.
2001 was a fundamentally important year for the insurance sector, because it
coincided with the start of the placing of the products from our subsidiary
Claris Vita spa.
It was, in fact, a period with satisfying results on the whole: the action targeted at atypical products for the banking sector, such as automobile liability
insurance and damage, was particularly profitable with considerable returns
both numerically and image-wise.
Within the sphere of collection and payment systems the Bank intensified
commercial activity for POS equipment and payment cards.
Regarding the latter, the range of products offered and their distribution to
customers was expanded.
Finally, with reference to the sectors of specific interest for the customer company, the introduction of the new co-operative remote banking product of
“Global Banking” should be noted, which has allowed the functionalities
offered by the previous product to be increased with growing levels of security and effectiveness.
Of particular note was the start of the new corporate desk with the task of
supplying a highly qualified financial consultancy service.
This is a customer desk specialised in company finance and which is mainly
concerned with corporate derivative products aimed at management and
covering price and exchange rate risks.
In the foreign sector the Bank subsequently developed the customer consultancy activities, offering the most effective solutions to requirements linked to
the transactions by and for foreign countries.
It is thus in this scope that the synergies with some companies of the group
such as Banca Italo-Romena and Sintesi 2000 can be explained, the latter operating through its representative offices in London and Hong Kong.
C OMMUNICATION
2001 was a particularly important year for the Bank and for the Group in its
entirety.
The growth of the latter, as well as the need to reinforce the Veneto Banca
brand and those relating to the subsidiary companies as well as beyond the
traditional confines, have given rise to a particular commitment in the area of
communication.
In this respect, an important communication campaign was conducted, characterised by both institutional and commercial messages that predominantly
used prestigious names and broadcasting networks distributed nationally.
In particular, within the scope of institutional communication, important
sponsorship linked to the world of sport come into play, such as local sports
companies and the Vicenza Volley, as well as in the world of production, with
the direct involvement of the Bank in the important event of opening the production year of industrialists in the province of Treviso held in Timisoara.
The communication, institutional and commercial activity was also given the
29
objective of characterising each message in such a way as to display and reinforce the principles that inspire the Bank strategy, or else the autonomy, the
strong territorial roots and the quality of the products/services offered, particularly highlighting values such as dynamism, timeliness and promptness
of answering market challenges.
Finally, the employees convention held in Sardinia in the last month of October
deserves a separate mention.
This was an extremely significant event: the best knowledge of the overall
company reality, as well as the strategies and potential of the Group, is certainly the necessary introduction to a major sharing of these strategies and
potential and for increased team spirit and sense of belonging, conditions
vital to the success of the ambitious projects that the Bank has set itself to
achieve.
S OCIAL
AND
CULTURAL INITIATIVES
Veneto Banca is not only present in the economic, financial and productive
life of the territory in which it operates, but also within the social sphere, sustaining the values of solidarity through the “Veneto Banca Onlus
Foundation”.
During 2001 numerous and varied important initiatives were carried out.
Among those that come within the area of social solidarity are the support
given to the “Paediatrics Department” of the hospitals of Treviso and
Montebelluna, the contribution to the “Piccola Comunità Onlus” of Vazzola,
dedicated to the recovery of young drug addicts and the help to the foundation “Il Nostro Domani Onlus” which looks after seriously disabled children.
Within the cultural sphere, in addition to the henceforth customary intervention in support of the “G. Mazzotti Literary Prize” and the attention to different musical institutes of the province, the Foundation has started to contribute towards numerous deserving initiatives for their cultural value (Dama
Castellana, piano competition “Premio Città di Treviso”, the reopening of the
“Carlo Rizzarda” Gallery of Modern Art in Feltre, “Pro Senectute”
Association of Treviso).
The commitment to the recovery of artistic goods is expressed, among others,
through the participation to support the initiatives to restore the organ of the
Cathedral of Crespano del Grappa and the sixteenth century frescos on the
wall of the Cathedral of Conegliano.
Finally, in the field of “research” the Foundation plays a role by generously
donating a study grant aimed at the project for the early prevention and diagnosis of intestinal tumours for the benefit of the Hospital of Mestre.
Furthermore, the commitment to safeguard the heritage of local tradition was
significant, through the support of the annual edition of the Palio del Vecchio
Mercato, a typical Montebelluno exhibition.
D ISTRIBUTION
CHANNELS
30
Multi-channel distribution
The organisational model adopted provides for a diversified distribution
approach according to the operating zone of the Company or the subsidiaries,
as stipulated in the strategic plan.
While in the area that extends from Pordenone to Milan, development has
been provided for predominantly through traditional physical channels,
throughout Italy a multi-channel distribution method has been introduced
composed of financial consultants, multi-representative insurance agents
and/or brokers responsible to Claris Vita, of internet banking and telephone
banking.
The traditional network
With the opening of the new branches in Pordenone, S. Donà di Piave,
Trissino and Venice, the stronghold of the territory has been reinforced
through traditional structures.
Territorial expansion directed towards reinforcing operational presence in the
bordering areas with the historical core represented by the province of
Treviso, which has the greatest concentration of Bank branches.
In particular, with the above-mentioned opening of the subsidiary of
Pordenone, the scene was set for the direct stronghold of the Friuli province.
On 31/12/2001 the commercial network was made up of 82 branches.
This year, consistent with the provisions of the three-year plan, the opening
of ten new subsidiaries has been planned.
Branches
92
90
70
50
79
82
2000
2001
61
46
53
55
56
1996
1997
1998
47
30
10
1994
1995
1999
2002
In 2001 the Bank did, moreover, continue its growth process with the fully
operational start-up of its first Private Banking centre.
This was an important step for improving customer service, that cannot be
left out of consideration from the continuous offer definition, not only in
terms of content but also of means of distribution, increasingly suited to the
requirements and characteristics of the different customer segments.
In December 2001, the ATM-Bancomat network was made up of 84 automatic branches.
The installed POS equipment grew subtly (+29.3%) and at the end of the year
totalled 1,165 stations, compared to 901 recorded in 2000.
Finally, operational remote banking connections with the companies reached
922 units, registering an increase of 52.40%.
31
Innovative channels
In 2001 the Bank’s activity was given a significant boost within the sphere of
multi-channels sector.
Numerous interventions were made which led to a significant strengthening
of the innovative channels sector, through a complete organisational revision.
The new approach began further to the purchase of the company Claris Vita
spa, which took place at the start of the period, with the objective of accelerating and developing the commercial potential of the Group through non-traditional sales networks.
The activity, which after an in-depth phase of study effectively started at the
end of the summer, provides for a strong synergy and a gradual interaction
between the network composed of approximately 700 agents and 300 brokers,
already operating though Claris Vita throughout the national territory, and
the network composed of financial consultants, responsible to the Parent
Company and today in the phase of rapid growth.
The project is extremely diverse and is based on the following:
• Start of the Claris Vita agents network in the activity of marketing standardised banking products.
This involves current accounts, loans, consumer loans, credit cards prepared for the purpose of meeting the specific provisions of the Supervisory
Bodies, realised directly by the Parent Company and/or coming from distribution agreements with leading counterparts.
• Involvement of the Claris Vita network in the activity of placing financial
instruments.
The start of the agents/brokers is provided for, or their collaborators
selected according to need, to the profession of financial consultant
through also the organisation of courses to prepare for the professional
qualification examination. This activity will allow the important “cross selling” potential of the insurance customers’ agencies to be developed.
• Development of the financial consultants network (named Claris Net)
based on totally innovative concepts related to the possibility of approaching a highly professional and qualified consultancy activity.
The development plan provides for the realisation of 18/20 financial consultants offices distributed throughout the entire national territory, concentrated in six macro areas, and the recruitment, within 36 months, of approximately 1,000 financial consultants (except for those placed within the
Claris Vita agencies) with a stable consistency of networks close to 850
units.
The above-mentioned activities are also based on the development of “ebanking” (Claris Banca, Veneto Banca brand) realised in cooperation with our
subsidiary Elsag SuperNet of Milan.
Claris Banca was devised and realised with the objective of serving as a link
between our Company and the external networks as a vital support instrument to the agents and the consultants activity.
32
As at 31/12/2001 the project started definitively with the following results:
• 220 agents obtained the instruction from the Bank to place standardised
banking products;
• 215 agents took part in the project relating to the recruitment and coordination of financial consultants to be inserted in the Claris Vita agencies,
obtaining from Veneto Banca the position of “branch manager” as required;
• 90 financial consultants were coded by Claris Net.
Furthermore, it should be noted that of those participating in the two cycles
of training and preparation for the financial consultants examination organised during the year, almost 130 have obtained the qualification and are completing the related commission with our Bank.
H UMAN
RESOURCES
Human resources are a determining factor for the success of the initiatives of
the Bank.
For this reason, the human resources department necessitated a structural
and dimensional adjustment in the last financial year, a crucial year for the
growth of the Veneto Banca group, in order to be able to offer the most appropriate support to the requirements not only of the Parent company, but also
of the various subsidiaries.
During the year, the rewards system for the commercial network (conceived
and implemented in order to exploit and to support “team work”) was once
again adopted, thanks also to constructive dialogue with the unions. A study
was also initiated for the introduction of a similar system for general management structures.
During 2001 staff numbers increased by 86, bringing Bank staff to a total of
867 employees, compared to 781 at the start of 2001.
At the end of March of the current financial year employee numbers in the
Company totalled 889.
N° of Employees
900
867
781
800
700
633
600
572
581
1994
1995
601
605
1996
1997
647
500
1998
1999
2000
2001
At the end of 2001 staff numbers may be broken down as follows: senior management (1.7%), management staff (27.2%), general employees (70%) and
auxiliary personnel (1.1%).
2001 was an important year with regard to training and recruitment.
33
Recruitment was carried out to find staff with both business experience to
place with our sales network (as advisors and branch employees) and with
significant banking experience for more senior positions.
This was not only with regard to Veneto Banca but also for the other companies in the group.
Today more than ever before, training is fundamental in supporting and
encouraging the organisational changes and strategic requirements of the
company.
The heightened complexity and speed of today’s markets mean that the customer, the primary addressee of our activity, increasingly demands improved
quality of service, as well as the skills and professionalism that together create the true added value of the Company.
From this point of view and with the aim of meeting the changed requirements of the company resulting from the new organisation, training in 2001
was characterized by further specialization, with particular respect to the reference customers in the main macro segments (retail and corporate), by combining technical training with other behaviour-related training.
Training registered an increase of 6.3% with regard to number of days and
18.5% in terms of number of trainees.
87% of active personnel took part in training courses, with an average of 3.8
man days.
Overall, 452 days of training with 3,286 trainees were organized.
Furthermore, support and tutoring activities are to be taken into due consideration within such a context, since these not only allow the professional
growth of all personnel, but also foster the insertion of new arrivals in a company environment aspiring to maximum availability and cooperation.
O RGANISATION
TECHNOLOGY
AND
Numerous technical, IT and organizational projects were carried out during
the year with the aim of increasing the overall efficiency of operations and
adapting the structure of the company to the new market requirements.
The introduction of the Euro required a full-scale project of evaluation and a
series of actions affecting all aspects of the activities of the Bank. Both human
and technical resources were subject to severe stress throughout the whole
year, and particularly in the last quarter, involved as they were in making the
preparations required for an adequate approach to this epoch-making
change.
The organisational activity required during 2001 by the acquisition of the
Banca di Bergamo spa was also outstanding.
At the same time as the acquisition of the majority shareholding, the computer system was also replaced with that used by the Parent company.
The limited time span available to complete the operation required a considerable effort on the part of the company structures of both Veneto Banca and
Banca di Bergamo. The operation was particularly successful in terms of its
impact on the customers of the subsidiary.
On the occasion of the acquisition of the majority shareholding in the Banca
di Bergamo, a new organisational strategy was also inaugurated, consisting
34
of the arrangement of structures and processes for the provision of operational, coordinating and inspection services at the Veneto Banca Parent company and at the subsidiary bank.
This enabled the Banca di Bergamo to maintain a streamlined structure,
almost exclusively focused on commercial activities, with a minimum number of resources at the central office of the Bank and with accounting and
administrative activities transferred to the Parent company.
Towards the end of 2001, five new branches of the Banca di Bergamo were
opened. All necessary actions and activities were provided by the parent
company Veneto Banca.
The launch of “Claris Leasing spa” required another significant commitment
with regard to the determination, acquisition and installation of both the
business IT application and the most suitable technological components.
A rating project was set up over the first few months of 2001, to implement a
computer system to evaluate the credit supplied by the Bank.
As early as the current year, this project will give Veneto Banca and the Group
a tool enabling wider risk coverage as well as a more accurate measurement
of risks, based on the most advanced procedures of internal self-control, as
was suggested by the Basle Committee on the subject of the adequacy of capital of banking intermediates.
Moreover, a determining process of technological renewal was carried out in
2001, allowing the Bank to adapt to the most advanced solutions in terms of
technical structures, and effectively enabling it to meet the requirement of
distributing ever increasing amounts of information, both internally and
externally.
Lastly, the construction of the Service Centre merits particular mention.
The complex, which is in an advanced stage of development, represents a significant goal for the Bank: the opportunity to logistically reorganise the management structures and departments will lead to greater efficacy and efficiency in interdepartmental relations and in the handling of operating costs.
Transfer to the new premises is planned for the summer of 2003.
T HE
CONTROL
SYSTEM
The internal control system comprises a set of rules, procedures and organisational structures intended to ensure the correct management of all the activities of the Bank, in observance of the law, the provisions of the Supervisory
Board and company strategies.
It is therefore of the utmost importance that it is continually updated and
adapted to the various activities of the Bank and of the companies held by the
Bank to achieve the objective of “sound and prudent management” necessary
for commercial activities and the resulting profitability.
During 2001 the enhancements and implementations to the overall control
system have particularly concerned the adaptation of the tasks, responsibilities and IT tools of the central departments of the Bank to the new activities
required by the companies of the group.
In this respect the control system of the Banca di Bergamo and that of the
Banca Italo-Romena were defined and put into operation. The remote control
system of the latter is at an advanced stage, by means of direct IT questioning
via the satellite connection implemented with the Bucharest subsidiary.
35
The outsourcing contracts with the above-mentioned banks of the Group for
the provision of services and for the execution of the controls are also at an
advanced stage.
The evaluation and enhancement of the IT tools used in risk monitoring and
control have also continued, with both the direct interventions of the control
departments and by SEC Servizi of Padova, which supplies the Bank with its
computer system.
Particular attention was given to the definition of the auditing system of the
financial consultant network of the Bank, known as “Claris Net”.
Organisational, management and control guidelines have been established
with reference to the network’s new and wider dimensional and territorial
objectives. The Claris Net auditing system will enter into operation during
the financial year 2002, in line with the progressive increase in the activity of
the new structure, with the help of resources specifically dedicated to control.
R ISK
MANAGEMENT
The Veneto Banca Group attaches great importance to risk management and
control, the organisational framework of which is divided into three levels of
responsibility:
1. the Board of Directors, which defines the strategic lines and the tolerance
levels;
2. the control and management departments (Internal Auditing, Planning
and Credit), which support the company directors in the definition of policies relating to the allocation of capital and provide indications for risk
management and control by monitoring performance;
3. those departments which, together with the management departments, are
responsible for managing the operation of risks in the relevant portfolio.
In this context, and in line with the provisions of the recently approved strategic plan, a specific risk management section is being set up within the
Planning Department, whose task will be to oversee the risk management
procedures and the integrated methods of measurement and evaluation of
the risk.
Credit risks
Veneto Banca pays particular attention to the handling of credit risks in the
light of the recent innovations proposed by the Basle Committee on the subject of measuring and determining the capital adequacy of banks.
The entire credit risk process is currently governed by:
• the right to extend credit, where approved by the Board of Directors;
• internal regulations and the control systems operated by the individual
company departments concerned;
• internal standards for credit and guarantees.
A specific department also has the task of controlling branches from a distance, and may intervene to limit risk where appropriate.
The branches are also inspected to check on positions which appear anomalous.
36
For the purposes of extending measurement and control models to lending
under a framework of “maximum acceptable loss” and “value at risk”, the
method of internal rating was used, consisting in the calculation of probability, based on past experience, of a loan becoming insolvent.
The Bank has therefore launched a project of “Total Credit Quality” together
with SEC Servizi to develop the internal rating system with the aim of ensuring the uniformity of classification of all customers through evaluation methods that are consistent for each segment and subsequently the adoption of a
single classification scale.
At its current stage of progress, the project has produced a rating model and
allows the quantification of the probability of default of individual counterparties in the private segment. This is already operational in several branches.
The system will be extended to the small business and corporate segments by
the end of June.
Lastly, the calculation of performance rating is to be introduced by the end of
the year, in addition to the credit rating available at present.
A profitable use of the system will ensure a more complete view of the economic and organisational mechanisms that govern the granting of credit,
permitting a better final offer and conditions per market segment.
Financial risks
The interest rate risk, understood as income risk, is measured not only by
Bank of Italy methods, but also internally by calculating the potential negative impact on the value of the Bank’s equity.
Furthermore, a procedure is being introduced which will shortly enable the
calculation of the short term sensitivity of economic margins to interest rate
fluctuations, using advanced techniques.
Market risk, understood as potential loss linked to adverse fluctuations in
interest rates, exchange rates and share prices, as well as to the volatility of
these variables, is measured by means of internal detection based on Value at
Risk (VaR) methodology.
Exposure to market risk is checked on a daily basis by a department with specific responsibility.
To this end the “Master Finance” system is used; this is the treasury platform,
now in full release, which has automated the various sectors of activity and
also allows operational limits to be controlled.
Operational risks
Operational risk is monitored using credit controls and internal reviews.
A system has also been introduced under which access to the IT applications
will be controlled and all Bank employees will have their authorisation
checked.
To ensure the reliability of the data and the principal reports issued by the IT
system managed by SEC Servizi in Padova, Veneto Banca participates, togeth-
37
er with three other banks, in the SEC Auditing Committee, with the specific
aim of improving the effectiveness and efficiency of regulatory monitoring
and risk control procedures.
Furthermore, the Bank is in the process of acquiring a specific IT application,
through SEC Servizi, to set up a system to quantify operational risks, in line
with the provisions laid down by the Basle Committee.
The new application will be used to create a history database of events over
the past years with their impact in terms of capital losses.
O PERATIONAL
PERFORMANCE
Operations managed on behalf of customers
Financial transactions managed on behalf of customers totalled 4,566 million
Euro at the end of the year, recording an increase of 11.4% on the previous
year.
The economic and political events that characterised 2001 deeply conditioned
the investment choices of the average family.
The severe turbulence of the markets, with the resulting extreme and unpredictable volatility of share trading, as well as the climate of uncertainty linked
to the tragic events of September, have all contributed towards forms of saving that are more liquid and less exposed to market risks, in this case bank
deposits and bonds.
Our bank’s deposits reflect these tendencies.
(in millions of Euro)
38
Due to customers:
• current accounts
• savings deposits
• REPOS
Securities issued:
• bonds
• certificates of deposit
Total direct deposits
2001
1,093
866
106
121
928
881
47
2,021
2000
946
724
110
112
817
757
60
1,764
Var. %
15.5%
19.6%
-3.6%
8.0%
13.6%
16.4%
-21.7%
14.6%
• assets under management
• managed savings
Total indirect deposits
Total deposits
1,334
1,211
2,545
4,566
1,512
824
2,336
4,100
-11.8%
47.0%
9.0%
11.4%
Direct deposits
Direct deposits from customers have risen over the last twelve months from
1,764 to 2,021 million Euro, with an increase of 257 million, or 14.6%.
Direct deposits
(in millions of Euros)
2,400
2,021
2,000
1,764
1,600
1,200
901
906
1994
1995
1,038
1,064
1996
1997
1,154
1,249
800
400
0
1998
1999
2000
2001
A significant increase in bonds and deposits on demand stands out within the
different technical forms of direct deposits, with increases of 16.4% and 19.6%
respectively.
The significant trend recorded for deposits overall, particularly for the latter
technical form, is primarily due to the phenomenon of reallocation of savings,
resulting from the above-mentioned propensity to risk shown by customers.
Direct Deposit at 31/12/2001
percentage breakdown
Right issues
5%
Certificates of deposit
2%
PCT
6%
Foreign Deposits
1%
Current accounts
43%
Bonds
43%
Balance
Direct deposits
including:
• bonds
• certificates of deposit
• deposits
• current accounts
• REPOS
2001
2,021
2000
1,764
1999
1,249
1998
1,154
1997
1,064
1996
1,038
881
47
106
866
121
757
60
110
724
112
497
79
106
528
40
397
124
113
451
70
275
181
116
386
106
185
261
114
373
105
39
Proportion %
• by technical form
bonds
certificates of deposit
deposits
current accounts
REPOS
• by residual life
on demand
up to 18 months
over 18 months
2001
2000
1999
1998
1997
1996
43.59
2.33
5.24
42.85
5.99
42.90
3.43
6.27
41.05
6.35
39.78
6.29
8.60
42.27
3.20
34.36
10.78
9.76
39.06
6.04
25.86
17.08
10.87
36.29
9.90
17.82
25.14
10.95
35.94
10.15
47.50
22.32
30.18
45.07
14.54
40.39
50.91
17.58
31.51
48.89
26.93
24.18
46.78
27.96
25.26
50.43
23.15
26.42
The composition of the total deposits reaffirms the process of disintermediation of liabilities which has been a notable feature of the banking system over
recent years, even if the events characterizing the last two financial years set
off a slight reverse in the trend.
These dynamics are summarized in the table below.
Proportion %
Direct deposits
Indirect deposits
2001
44.26
55.74
2000
43.02
56.98
1999
40.23
59.77
1998
46.78
53.22
1997
51.53
48.47
1996
57.24
42.76
Indirect deposits
Over the past year indirect deposits rose by 9%, from 2,336 to 2,545 million
Euro.
An analysis of deposits reveals how such an increase is exclusively due to
managed savings, which rose by 47%, while asset management forms, including insurance products, fell by 12%.
Going into more detail, it can be observed that the negative trend concerned
both mutual funds, which decreased by 15.3% due to the rates, and the placement of life insurance policies, which dropped by 11.4% to finish on a stock
of 135 million Euro.
Insofar as concerns managed savings, the main feature of the previous year
was the launch of the marketing of fund-invested accounts.
Indirect deposits
(millions of Euros)
2,545
2,336
2,400
1,856
2,000
1,512
1,600
1,200
800
1,343
1,313
1,334
1,001
627
694
766
775
366
400
156
0
1994
1995
1996
Indirect deposits
40
1997
1998
1999
Managed savings
2000
2001
Despite the readjustment in growth rates that took place in 2001, the effect of
indirect deposits on total deposits remains substantially above 55%, though
with a significant proportional difference: the incidence of managed savings
on indirect deposits in fact fell to 52.4% as against 64.7% in 2000.
Loans
At the end of December 2001, customer loans totalled 2.485 million Euro, an
increase of 25.8%.
This considerable boost is concrete proof of the Bank’s willingness to participate in the economic and social development of the country in which it operates, actively supporting corporate initiatives and the expenditure and investment choices of families.
Customer loans
(in millions of Euros)
2,800
2,485
2,400
1,975
2,000
1,600
1,375
1,084
1,200
800
743
769
794
1994
1995
1996
920
400
0
1997
1998
1999
2000
2001
With reference to the various technical forms, good results were achieved in
loans, with a significant proportion due to non-mortgage loans (+46.3%) and
other lending (+40.5%).
Financing abroad sustained its growth, though the 14.6% increase was less
than that recorded in the previous year.
Customer loan at 31/12/2001
percentage breakdown
Foreign
Loans
22%
Trading
portfolio
1%
Foreign current
accounts
1%
Current accounts
33%
Lendings and Loans
43%
Despite a marked increase in lending, risk was nevertheless well diversified.
41
In terms of amounts and sectors, concentration remains distinctly low.
(in thousands of Euro)
2001
First 10 customers (*)
95,895
156,556
205,673
280,383
proportion
%
3.86
6.30
8.28
11.28
2000
95,095
141,577
183,253
249,311
proportion
%
4.66
7.17
9.28
12.62
(*) net of shareholdings
Distribution of loans
to manufacturers
Distribuzione
dei crediti
alle imprese di produzione
Other branches
32%
Other Services
Intended for Sale
19%
Textile, Leather
Footwear and Shoes,
Clothing Products
13%
Building and Public Works
11%
Other Industrial Products
11%
Commercial Services,
Recovery and Repair
14%
The following table is an analysis of the composition of deposits, highlighting
the significant increase, even in relative terms, recorded in non-mortgage
loans and other lending.
The following trends stand out in particular:
Current accounts
Import-export financing
Discounted portfolio
Mortgages
Non-mortgage loans
Other loans
Non-performing loans
Other loans
Total loans to customers
Proportion %
Lira/Euro
Foreign currency
42
2001
81.25
18.75
2001
2000
827
546
29
473
75
507
27
1
2,485
643
476
26
388
51
361
25
5
1,975
2000
79.48
20.52
1999
82.76
17.24
Change
absolute
%
184
28.7%
70
14.6%
3
13.4%
85
21.7%
24
46.3%
146
40.5%
2
7.5%
-4 -71.3%
510 25.8%
1998
79.28
20.72
1997
80.75
19.25
1996
83.55
16.45
Breakdown %
• by residual life
on demand
up to 18 months
over 18 months
2001
2000
1999
1998
1997
1996
24.63
48.89
26.48
27.82
45.54
26.64
28.96
41.04
30.00
36.24
41.34
22.42
39.51
42.11
18.38
46.94
37.06
16.00
The significant increase in loans, which was not accompanied by an equivalent growth in deposits, determined a considerable rise in the percentage of
loans to deposits, including in foreign currency, which in 2001 reached 123%,
compared with 112% last year.
If only Lira loans are considered, this percentage falls to 100.4%.
Loan quality
The positive trend of the incidence of non-performing loans with respect to
total loans also continued in 2001.
The increase in loans granted to customers did not lead to an increase in net
non-performing loans (that is, net of default interest), the burden of which on
the deposits under scrutiny fell to 0.94%, against 1.07% last year.
Non-performing loans/Loans to Customers
8.00
6.00
4.00
2.00
0.00
1994
1995
1996
1997
1998
1999
2000
2001
Financial market activities
As previously stated, the financial year 2001 was characterised by turbulent
markets and further marked by the effect of the tragic events of 11 September.
In this context the activities of Veneto Banca were carried out with a view to
containing overall risks, paying particular attention to determining the financial operations necessary to finance the development of ordinary operations
and interventions of an extraordinary nature, such as the acquisitions of the
insurance company Claris Vita, of the Banca di Bergamo and of the branches
of the Nuova Banca Mediterranea.
Financial investments in securities were mainly concentrated on variable-rate
Government securities in Euro, that allowed the normal activity of deposits
to be carried out by way of REPOS, keeping exposure to rate and credit risks
under control.
Insofar as concerns operations on corporate securities, it was held appropriate to maintain extremely light positions, operating marginally and selective-
43
ly, and focusing, therefore, on a few issuers of high credit standing belonging
to the Euro zone.
At 31 December 2001, the total amount of securities in the trading portfolio
was 336 million Euro, an increase of 58% compared to last year.
This change derives essentially from the higher demand for REPOS on the
part of customers who, following the turbulence of the markets, preferred to
maintain positions of liquidity and with very short-term time frames.
The table below shows investments in securities at 31 December 2001 having
an overall increase of 250.9 million Euro (+108%) compared with the previous
year end, rising from 232.3 to 483.2 million Euro.
The increase is registered on both the trading portfolio and on investment
securities, for which the change is to be ascribed primarily to an issue of convertible bonds by the subsidiary Veneto Ireland Financial Services, fully subscribed by the Parent company, for a total amount of 127 million Euro.
2001
Investment securities
Trading securities
Total securities
2000
147,207 19,605
336,021 212,734
483,228 232,339
Change
absolute
%
127,602 650.9%
123,287
58.0%
250,889 108.0%
On the Interbank Market the position of Veneto Banca during 2001 was mostly one of liability, both for liquidity requirements due to ordinary operations
and for the previously stated extraordinary events.
At 31 December 2001, the balance of debts thus shows a liability position of
716 million Euro of which 420 million represent the part relating to outward
foreign currency deposits.
2001
Net Interbanking
Securities
Total
E QUITY
INVESTMENTS
2000
483,228 232,339
-868,064 -356,304
-384,836 -123,965
Change
absolute
%
250,889 108.0%
-511,760 143.6%
-260,871 210.4%
Insofar as concerns investments in shareholdings, the Bank has continued
concentrating on developing its active involvement in areas of strategic and
operational interest, while disposing of low-yield holdings.
At 31/12/2001 this account totalled over 392.9 million Euro, as against 229.6
the previous year.
This increase is due to a significant strengthening of the Group’s structure,
especially following the purchase translations relating to the following companies.
Claris Vita spa
The company (formerly Royal & SunAlliance Vita spa) passed under Veneto
Banca control, with the latter formally taking over management on 12 April
2001, after acquiring the entire authorised capital.
44
This transaction was in line with the Bank’s strategy, and is seen not only as
an opportunity to maximise potential income from the insurance sector, but
above all to create synergy between the company’s network of agents and the
internal network of financial promoters.
With the purchase of this life insurance company, Veneto Banca can enter a
market which promises good growth, not only as a distributor but also as a
producer. The aim is to offer high-quality products backed up with the skills
of the company’s management and the solidity gained from long experience
in distribution of insurance products through banking channels.
During 2001 an important rebranding effort took place and a company restructuring process was started. The aim of this process was to bolster certain critical areas and review others, with a view to achieving greater commercial efficiency and improved control of financial management.
Claris Vita is a company which has a wide network of agents and brokers
(over 1,000) extending throughout the country, 50% of which is concentrated
in northern Italy (Lombardy, Triveneto, Emilia Romagna and Piedmont). It
has a base of around 87,000 medium to high-level customers and is authorised to issue unit linked policies and manage an open pension fund.
Claris Leasing spa
On 11 January 2001 Veneto Banca, with its subsidiary company Claris Factor
spa (formerly A.M. Factor spa), together formed A.M. Leasing spa, now
Claris Leasing spa, a company which, by offering credit in the form of finance
leasing, will allow us to position ourselves increasingly as the region’s leading business bank.
The company’s results after its first year of trading exceeded expectations.
Financial management was penalized by start-up and organizational costs, as
well as by the intrinsic characteristics of the finance leasing credit business,
where revenues go hand in hand with the service life of the contracts. The
future outlook appears to point to break-even being reached in the current
year and, looking further ahead, positive results in the following years.
Banca di Bergamo spa
On 24 July 2001, purchase was completed of a 60% stake in the capital of this
company.
At the end of the year, in which five branches were opened, Banca di Bergamo
operated from 12 branches, evenly distributed throughout one of the most
productive economic areas of Northern Italy.
Given the excellent location of the commercial network, the existence of a
productive economic fabric similar to that of the Veneto Banca’s traditional
area of operations, together with a strong territorial foothold, expressed both
via the brand name and the tight bond with local business, the company represents the coordinating centre of the Group’s activity in Lombardy.
Nuova Finanziaria Mediterranea spa
On 19 December 2001, a deal was signed for purchase of a stake equal to 25%
of this company’s authorized capital, together with Banca Popolare di Bari
which holds 59.9% of the capital and Compagnia Cattolica di Assicurazioni
which holds the remaining 15.1%.
45
This transaction, instrumental in the purchase of 29 branches due to form the
Banca Meridiana spa in 2002, controlled by Veneto Banca, will enable us to
offer businessmen in the north-east the financial support they need in delocalizing their production activities towards the southern half of the country
and to support the integrated multi-channel network (insurance agents and
financial promoters) with traditional banking structures.
Again this year Veneto Banca has chosen to offer further testimony of how
close it is to the business world by taking part in the inauguration of the business year organized by the Unindustria of Treviso association at Manfredonia
(Foggia, southern Italy). This is further proof of the fact that companies in the
north-east, in order to continue their growth, are looking for new markets for
their production activities, which, as well as the eastern European countries –
Romania in particular, are also in southern Italy, chiefly the Puglia and
Basilicata regions.
Banca Italo-Romena spa
The bank’s stake in this company rose to 92.3%, following the capital increase
voted on 12 April 2001 and entirely subscribed by the parent company.
This capital increase not only allowed us to more than satisfy the for regulatory capital requirement but also improved the operating margins, thus
strengthening our position as the primary reference for Italian businesses
operating in Romania.
In the course of 2001, head office was moved from Milan to Treviso and
branches opened at Timisoara and Arad.
Simultaneously, in the new approach, operations with customers were conducted mainly at the branches in Romania, with the Italian offices having a
central administration and service function.
As regards the future trend, expectations are that the positive business result
will be consolidated, including through significant growth of the assets under
administration.
Veneto Ireland Financial Services ltd.
This company, founded on 21 October 1999, is a non-banking subsidiary acting as an agency bank in Ireland, in the Dublin International Financial
Services Centre (IFSC).
As well as reinforcing the Veneto Banca Group’s structure and giving the parent company greater international exposure, founding this wholly-owned
company, with assets of 127 million euro, means the Bank has been able to
sharpen its financial activity in a highly specialised area.
Business in the past year mainly focused on the search for a suitable conservative, prudent operating profile via which to consolidate the income results
achieved, and on active management of the market and credit risks.
Claris Assicurazioni srl
This is a company that acts as an multifirm agency handling the distribution
of insurance products, either through the Group’s agency branches or
through its own commercial effort, also offering clients a after-sales back up
service.
Its objective which, in terms of quantities, is to cover the structure costs with
revenue coming from its own activity, might possibly be reached in the cur-
46
rent year, with the anticipation therefore of positive results being obtained in
the future.
Claris Broker spa
This company, which became part of the Group on 9 June 2000, is in the insurance brokerage business.
The company was purchased with a view to maximizing the results obtainable in the insurance field, using an instrument with which to select the best
opportunities at the offer side of the market.
With changes in its top management and the arrival of new directors, the
company is currently going through an important managerial restructuring
phase.
Claris Factor spa
This company, operating in the factoring sector, offers business customers a
specialized service, complementing traditional banking activities.
Showing constant growth throughout 2001, the company has significantly requalified its portfolio which has enabled it to improve its assets position and
accordingly reduce the average exposure to risk on collections. Thanks to
sound performance of the spread between the deposits and loans rates and a
cautious tariffs policy, the company has achieved decidedly satisfactory
results and the prospects for the current year seem to indicate that the policy
of creating added value for the shareholder will continue.
Servizi Internazionali e Strutture Integrate 2000 srl (Sintesi 2000)
Formed together with the Banca Popolare dell’Emilia Romagna and the
Banca Popolare di Sondrio, each shareholder with a 33.3% stake, this company offers the shareholder banks and other credit institutions a basket of operating assistance services, design centre, economic observatory and development of relations on the international money markets, through its foreign
agencies located in London and Hong Kong.
Consideration is currently being given to the possibility of opening another
agency either in Beijing or Shanghai.
Atene srl
Veneto Banca’s holding in this company is 33.3%.
The object of this company, achieved mainly through its subsidiary company
Palladio Finanziaria spa, is to provide industry with a consultancy and financial assistance service, offering a full range of strategic support services and
instruments, including company risk capital.
The availability of this type of consultancy service is a good opportunity to
broaden and strengthen the Bank’s position on the market and is an essential
requirement to become the main provider for highly dynamic and innovative
companies.
Finally, on 5 July 2001, the Immobiliare Servizi srl company was incorporated into Veneto Banca, its shares being annulled without replacement.
Justification for this operation is to be found in the fact that the regulatory
provisions regarding real estate investments are no longer as stringent as in
the past and also because the purchase and restructuring of real estate for
conversion into bank branches is no longer considered strategic.
47
VENETO BANCA
CLARIS
FACTOR spa
100%
BANCA
ITALO-ROMENA spa
92.31%
CLARIS
LEASING spa
100%
VENETO IRELAND
FINANCIAL SERVICES ltd
100%
CLARIS
ASSICURAZIONI srl
100%
CLARIS
BROKER spa
100%
SINTESI srl
33.33%
ATENE srl
33.33%
PALLADIO
FINANZIARIA spa
98.54%
CLARIS
VITA spa
100%
BANCA
DI BERGAMO spa
60%
NUOVA FINANZIARIA
MEDITERRANEA spa
25%
NUOVA BANCA
MEDITERRANEA spa
100%
The remaining holdings have also grown in comparison with last year
through the purchase of additional shares in various companies.
In particular, a pre-emption right was exercised on a portion of the shares of
Arca Vita spa and Arca SGR spa, sold by other shareholders, a purchase that
led to a slight increase in our holdings.
Right of pre-emption was also exercised on convertible bonds of the Banca
Popolare di Milano, issued following a review of its assets by the Milan-based
bank.
Other investments, of lesser value, were made elsewhere in the banking
world (Banca Centrale per il Leasing) and in the companies Alpifin spa in
Pordenone and Treviso Glocal scarl in Treviso.
48
Equity investments as at 31 December 2001 break down as follows:
2001
In group companies
Other investments
Total
O PERATING
RESULTS
FOR THE YEAR
2000
251,796 166,894
141,121 62,754
392,917 229,648
Change
absolute
%
84,902
50.9%
78,367 124.9%
163,269 71.1%
The year 2001 closed with a highly significant result, which was an improvement of more than 19.6% on the profits at the end of 2000.
Net profits, after provisions to the reserve for general banking risks and the
risk and charge funds grew from 35.2 million Euro to 44.4 million Euro, an
increase of just over 26%.
Net interest income
Revenues from services and
other sources
Total revenues
Payroll costs
Other administrative costs
Gross operating income
Write-downs on tangible
and intangible fixed assets,
adjustments and write-backs
Net income before
extraordinary items
Extraordinary profit (loss)
Set-aside to corporate capital,
income tax for the year
2001
2000
133,984
66,880
55,159 70,513
189,143 137,393
44,190 42,346
35,919 30,125
109,034 64,921
Change
absolute
%
67,104 100.3%
-15,354
51,750
1,844
5,794
44,113
-21.8%
37.7%
4.4%
19.2%
68.0%
-60,004
-16,122
43,882
272.2%
49,030
577
48,799
2,112
231
-1,535
0.5%
-72.7%
15,499
34,108
22,401
28,510
-6,902
5,598
-30.8%
19.6%
Net interest income
Loans and deposits both grew considerably and simultaneously resulted,
with the trend of the spread remaining substantially stationary, in a sharp rise
in net interest income, which compensated more than proportionally for the
drop in revenues from services.
In actual fact, net interest income practically doubled, rising from 66.9 to 134
million Euro. The increase may be attributed to:
• dividends of more than 62.3 million Euro;
• a greater contribution from ordinary operations of more than 18 million
Euro.
With reference to the latter component, a significant contribution was made
by the subsidiaries, where profits have risen constantly in the last three halfyears, thanks mainly to the constant rise in assets in administration.
Profitability of the “free” assets, on the other hand, was practically cancelled
49
out in consideration of the equity investments which rose significantly during the year, reaching 392.9 million Euro.
Total revenues
As already said, performance of the financial markets in 2001 was difficult
and this, at system level, had negative repercussions on assets under management and related income components.
These effects are also to be found in the financial statements of Veneto Banca.
Revenues from typical operations recorded a decrease of 21.8%, dropping
from 70.5 million Euro at end 2000 to 55.2 million in 2001.
The item profit from financial transactions suffered most, finishing at just
over 3.8 million Euro, as against 9.7 million Euro the previous year.
Revenues from services, totalling some 9.5 million Euro less than the equivalent figure a year ago, closed the year at just over 51.3 million Euro. This, as
indicated above, was entirely due to the difficult performance of the financial
markets which brought a drop in assets under administration, especially in
terms of commission income.
Operating costs
The onerous development programme undertaken through the setting up of
an important multi-channel network and the company’s ever more marked
organizational configuration as a group has weighed heavily on the operating costs, seen as the sum of staff costs and other administrative costs.
The combined total has risen by about 11%, an increase explained mainly by
the growth of miscellaneous costs (19%) as a result of the investments made
in the innovative channels project and of the increased investments in IT.
The Immobiliare Servizi merger during the year led, on the other hand, to a
decrease of more than 14% in lease payments
Net income therefore rose by 19.6% with respect to the previous year, rising
from 28.5 million Euro in 2000 to 34.1 this year.
If the provisions made to the general banking risk fund and to the risks and
charges reserve are also considered, net income increases by more than 26%
on the previous year, rising from 35.2 million in 2000 to 44.4 this year.
The total ROE, excluding subordinated loans and income, was therefore of
10.2%. If we also consider the provisions mentioned above, then, more correctly, this indicator rises to 13.3%.
In any event, extraordinary items played an important role in 2001 in terms
of the profit and loss account. An extraordinary dividend of 40.8 million Euro
from Claris Vita was in fact recorded, while this was compensated by a writedown of the equity investment.
50
Net profit
10,329
45,000
6,714
35,000
34,108
28,510
25,000
1,033
15,516
18,118
12,944
15,000
10,600
6,573
8,747
5,000
1994
1995
Net Profit
C APITAL
ACCOUNTS
1996
1997
1998
1999
2000
2001
Reserve for general banking risk
Net assets
As at 31 December 2001, the Bank’s assets, including net income for the period, came to more than 367 million Euro, or more than 522 million Euro if the
convertible loans issued for 155 million Euro are also included.
Shareholders’ equity
155
500
108
400
300
210
217
1994
1995
227
228
234
241
1996
1997
1998
1999
367
265
200
100
0
2000
2001
At the end of the year, authorised capital comprised 24,354.860 shares with a
face value of 3.00 Euro each, worth a total of 73,064.580 Euro.
There were a total of 14,547 shareholders at the same date.
Capital for regulatory purposes and the capital ratio
Capital for regulatory purposes totalled 496 million Euro at the end of the
year. This gives a good capital ratio, as is also confirmed by the credit and
market risk indicators shown in the table below.
51
Required minimum
Capital for regulatory purposes
Capital ratio
Credit risk (% of regulatory capital)
Market risk (% of regulatory capital)
7%
2001
496,377
15.22%
43.90%
2.04%
2000
352,415
14.86%
47.11%
1.81%
Soundness of the Bank’s asset position is further confirmed in terms of the
balance achieved in the due dates of assets and liabilities.
Asset surplus on real estate and equity
Income over the medium and long term
Of which long term income
C LOSING
OBSERVATIONS
2001
64,467
184,544
123,151
2000
108,077
545,524
239,316
Important events occurring After the end of the period
The first months of this year have seen the purchase of 30 bank branches in
southern Italy.
The operation planned is a complex one, developed along two fronts.
On the one hand, there is the acquisition of 29 bank branches of the Nuova
Banca Mediterranea spa, located in the regions of Puglia, Basilicata and
Campania while, on the other hand, a company having the necessary authorisation to operate as a bank has been purchased to act as the umbrella for the
above-mentioned branches, identified by Veneto Banca in the “Banca
Popolare del Levante scparl in Amministrazione Straordinaria”.
The means of acquiring control was a Take-Over Bid of all the shares of the
Banca Popolare del Levante. On 8 February 2002, the last day for subscribing
to the offer, the following positive results were recorded:
• number of shares in subscription: 1,525.100, equal to 94.5% of the authorised capital, worth a total of 8,174,536.00 Euro (1,525.100 shares at a unit
price of 5.36 Euro);
• number of subscribers: 1,779 full subscribers (equal to 92.5% of the shareholders) plus 4 partial subscribers, for a total of 1,783 subscribers.
Following this bid, the remaining shareholders of the Banca Popolare del
Levante numbered 144.
Veneto Banca intends, at the same time, to proceed with the purchase of the
above-mentioned 29 branches – channelling them into the Banca Popolare del
Levante – through an operation agreed with the Banca Popolare di Bari,
which in December 2001 concluded with Banca di Roma spa an agreement
going back to August 2001 relating to the purchase – authorized by Bank of
Italy – of 100% of the authorised capital of Nuova Banca Mediterranea spa,
held by Banca di Roma itself.
Finally, it is pointed out that in February 2002 Bank of Italy authorized the
constitution of a Romanian real estate company, owned entirely by Veneto
Banca. The company in formation will manage the real estate in Romania in
which the subsidiary Banca Italo-Romena has or will have its offices and
banking branches.
52
Future prospects and strategy
The early part of the year has been characterized by the emergence of
ambiguous data concerning the turning point of the cycle. On the one hand,
the trend indicators referring to the main industrialised areas show that the
rapid decline phase that came about following the attacks of 11 September
has been fully absorbed and that recovery has in some cases started. On the
other hand, there are also potential risk factors or, in any case, obstacles to a
rapid and lasting recovery of the cycle.
In this situation of instability, the prospects for the current year’s accounts
therefore appear more uncertain, this also in consideration of the fact that the
2001 results benefited from unrepeatable, extraordinary components.
P ROPOSED
APPROVAL
OF THE ACCOUNTS
AND ALLOCATION
OF NET INCOME
In compliance with the law and regulations, we hereby submit for your
approval the accounts for the 2001 financial year, which include the balance
sheet, the profit and loss account, and the supplementary notes, as well as the
various attachments and the Directors’ Report.
We propose that the net income of Euro 34,108.067.16 be allocated as follows:
• 10% of net income to the statutory reserve
• to the extraordinary reserve
• to the shareholders, Euro 0.62 per share
as the dividend for 2001
• 2.5% to the Board of Directors after
subtraction of allocations to the statutory
reserve pursuant to art. 47 of the
Company Articles
• to the special reserve, pursuant to Legis.
Decree 153/99
Euro
Euro
3,410,806.88
14,000,201.77
Euro
15,100,013.20
Euro
767,431.51
Euro
829,613.80
Total
Euro
34,108,067.16
53
I would like to salute and thank the central and associated sections of the
Bank of Italy for their collaboration, particularly their Governor Dr. Antonio
Fazio, the director of the Treviso branch Dr. Corrado de Gioia-Carabellese
and deputy director Dr. Giovanni Blasich.
I would also like to thank the Associazione Nazionale fra le Banche Popolari
and express my personal gratitude to President Cav. Lav. Dr. Elio Faralli, the
Honorary President Prof. Francesco Parrillo and the Director-General Dr.
Giorgio Carducci, to the Italian State Exchange Department, the Italian
Banking Association, and the Central Institute of Italian Retail Banks.
In addition, we would like to recognise the professionalism, commitment and
care constantly shown by the Managing Director Vincenzo Consoli, the
Deputy Managing Directors Armando Bressan and Romeo Feltrin and the
staff at all levels.
Montebelluna, 19 March 2002
for the Board of Directors
The Chairman
dott. Flavio Trinca
54
FINANCIAL STATEMENTS
AT 31 DECEMBER 2001
BALANCE SHEET
(in Euro)
ASSETS
10 Cash on hand and money at call with
central banks and post offices
20 Treasury bills and similar securities eligible
for refinancing with central banks
30 Loans to banks:
(a) on demand
(b) miscellaneous
40 Loans to customers
including:
– receivables from third parties
administered funds
50 Bonds and other debt
securities:
(a) from public issuers
(b) from banks
including:
investment and trading securities
(c) from financial institutions
including:
investment and trading securities
(d) from other issuers
60 Shares, quotas and other variable-yield
securities
70 Equity investments
80 Investments in group companies
90 Intangible fixed assets
including:
– start-up costs
– goodwill
100 Tangible fixed assets
130 Other assets
140 Accrued income and pre-paid expenses:
(a) accrued income
(b) pre-paid expenses
including:
– issue discount
Total assets
2000
17,570,283
13,134,708
55,351,917
119,582,888
33,812,982
211,676,913
29,484,512
90,098,376
162,254,198
49,422,715
2,485,019,118
783,735
1,975,282,605
646,320
422,529,262
198,390,389
177,802,571
82,472,265
116,893,863
70,762,461
2,196,035
147,829,711
3,846,073
5,223,408
0
14,424,715
0
5,510,657
5,346,607
141,121,276
251,795,980
3,305,589
0
0
135,853
62,754,061
166,893,945
3,254,967
0
0
49,147,985
124,263,918
20,368,792
29,039,064
121,792,689
13,900,650
18,529,743
1,839,049
12,342,663
1,557,987
0
0
3,695,403,615
THE DEPUTY MANAGING DIRECTOR
CHIEF ACCOUNTANT
Armando Bressan
56
2001
THE MANAGING DIRECTOR
Vincenzo Consoli
2,830,068,826
LIABILITIES
10 Loans to banks:
(a) on demand
(b) on term or with notice
20 Loans to customers:
(a) on demand
(b) on term or with notice
30 Bonded debt securities:
(a) bonds
(b) certificates of deposit
(c) other securities
40 Third parties’ administered funds
50 Other liabilities
60 Accrued liabilities and deferred income:
(a) accrued liabilities
(b) deferred income
70 Employee severance fund
80 Risks and charges fund:
(a) pension funds and similar outlays
(b) taxes and dues fund
(c) other funds
90 Credit risk reserves
100 Reserve for general banking risk
110 Subordinated debt
120 Capital
130 Issue premiums
140 Reserves:
(a) legal reserve
(b) bank’s own equity or quotas reserve
(c) statutory reserves
(d) other reserves
150 Revaluation reserves
170 Not income for the period
Total liabilities
THE CHAIRMAN
Dr. Flavio Trinca
2001
987,647,259
118,154,739
869,492,520
2000
567,980,883
12,902,905
555,077,978
1,093,369,088
954,861,350
138,507,738
946,568,115
830,089,268
116,478,847
927,227,520
880,664,348
46,563,172
0
817,333,552
756,845,346
60,488,206
0
783,735
112,438,100
8,732,591
5,751,048
2,981,543
646,320
66,537,781
7,905,136
5,456,486
2,448,650
12,939,657
26,853,457
0
11,530,692
15,322,765
12,537,856
33,317,178
0
21,402,864
11,914,314
3,129,009
13,146,410
154,955,763
73,064,580
165,604,248
75,849,967
22,551,082
0
0
53,298,885
3,526,667
6,432,471
108,455,949
52,816,911
109,117,151
62,828,214
19,589,780
0
0
43,238,434
5,554,164
34,108,067
5,554,164
28,510,478
3,695,403,615
2,830,068,826
THE AUDITORS
Dr. Fanio Fanti
Dr. Bruno Sonego, Dr. Fulvio Zanatta
57
GUARANTEES AND COMMITMENTS
10
20
Guarantees issued
including:
– acceptances
– sundry sureties
Commitments
including:
– agreements for repurchase
THE DEPUTY MANAGING DIRECTOR
CHIEF ACCOUNTANT
Armando Bressan
58
2001
152,742,237
2,569,170
150,173,067
2000
153,052,319
1,963,257
151,089,062
25,270,711
0
16,529,144
0
Vincenzo Consoli
PROFIT AND LOSS ACCOUNT
10
(in Euro)
140
150
160
170
180
190
200
210
220
Interest income and similar revenues
of which:
– on loans to customers
129,880,868
– on debt securities
18,392,735
Interest expence and similar charges
of which:
– due to customers
22,236,975
– securities in issue
42,574,071
Dividends and other revenues:
(a) from shares, interests, and other
equity securities
1,373,571
(b) from investments
2,220,923
(c) from equity investments in
Group companies
58,768,227
Commission income
Commission expense
Trading profits
Other operating income
Administrative costs:
(a) payroll costs:
44,189,783
of which:
– wages and salaries
30,815,782
– social security charges
8,462,178
– employee severance pay
1,670,593
– reserve for retirement and similar
charges
1,608,466
(b) other administrative costs
35,918,551
Adjustments to the value of intangible
and tangible fixed assets
Provisions for risks and charges
Other operating expenses
Write-downs of loans and provisions
for guarantees and commitments
Write-backs from loans and provisions
Provisions to loan loss reserves
Write-downs of financial fixed assets
Write-backs from financial fixed assets
Profit before extraordinary items and tax
Extraordinary income
Extraordinary expenses
Extraordinary profit
Change in the reserve for general banking risks
Income tax for the year
230
Profit for the period
20
30
40
50
60
70
80
90
100
110
120
130
THE CHAIRMAN
Dr. Flavio Trinca
2001
155,132,938
2000
126,738,782
106,459,466
12,734,432
83,512,049
67,485,690
15,010,521
35,403,664
62,362,721
7,626,659
823,175
1,322,174
5,481,310
50,873,646
13,623,131
3,853,371
14,055,123
80,108,334
55,496,947
6,920,896
9,713,972
12,222,917
72,471,285
42,346,317
29,466,053
7,922,377
1,604,182
1,921,908
30,124,968
5,921,864
3,615,198
0
5,291,856
1,549,371
152,406
13,830,775
10,269,018
1,797,268
494,472
38,217,884
278,974
49,030,334
2,279,682
1,702,747
576,935
-6,713,940
8,785,262
1,571,235
408,973
21,970
0
48,799,047
3,220,518
1,108,581
2,111,937
-5,164,569
17,235,937
34,108,067
28,510,478
THE AUDITORS
Dr. Flavio Fanti
Dr. Bruno Sonego, Dr. Fulvio Zanatta
59
S UPPLEMENTARY
NOTE
BALANCE SHEET CONTENT AND FORMAT
The financial statement comprises the balance sheet, the profit and loss
account and the notes to the accounts, and is accompanied by the Directors’
Report on company operations and management, pursuant to Legislative
Decree no. 87/92 which in application of EC Directives no. 86/635 and
89/117 governs banks’ annual consolidated accounts.
These notes are given in thousands of Euro and are intended to illustrate and
analyse the balance sheet, providing information required under the said legislative decree, by the Bank of Italy Directive no. 14, 16 January 1995, and
other legislation. In addition, all complimentary information considered necessary to give an accurate and fair picture of the accounts is provided, even
where not expressly required. Hence, the following documents are appended
to the notes:
A - changes in shareholder’s equity
B - revaluation operations (article 10, Law 72/83);
C - list of equity investments;
D - statement of income;
E - list of bonds convertible to shares (article 2, paragraph b, DPR 137/75);
F - financial statements of subsidiaries or associated companies (article 2429,
section 3, Italian Civil Code).
The financial statements have been audited by Reconta Ernst & Young spa in
compliance with the mandate for the 1999-2001 three-year period awarded
them at the shareholders’ meeting.
60
PART
A –
CRITERIA
E VALUATION
The balance sheet has been prepared in compliance with current law, and
accounting principles currently applicable in Italy. The balance sheet is prepared according to the following general valuation principles:
• Valuation constants: the accounts have been prepared on an on-going basis
except where expressly indicated otherwise in the sections of the notes
which follow.
• Prevalence of substance over form: Wherever possible, the accounts favour
substance over form, and the moment operations are recorded rather than
the time they are contracted, so as to give a true picture of the financial situation.
• Going concern principle: the balance has been calculated on an ongoing
basis, and therefore with reference to hypothetical future functioning of the
company.
• Prudence: profits are those exclusively achieved on the closing date of the
financial year except where otherwise specified by specific valuation criteria. In addition, risks and losses for the period which have emerged after
the close of the year have been taken into account.
• Pro tempore: income and expenditure are recorded pro tempore
• Distinction between values: balance sheet and off-balance-sheet assets and
liabilities have been recognised separately, hence not by an overall total
valuation, except where specified in the following paragraph.
• Consistency of values: related balance sheet and off-balance-sheet assets and
liabilities have been valued consistently, hence by using the same criteria.
The principles used, as set out below, have been approved by the Board of
Auditors where required by accounting regulations.
SECTION 1 - ILLUSTRATION OF VALUATION CRITERIA
1. Loans, guarantees and commitments
Qualitative information on credit risks
Anomalous credits (non-performing loans, watch-list, restructured loans)
have been calculated under the terms of regulations governing due caution.
Specifically:
• Loans have been classified as “non-performing” if the debtor is insolvent.
The presumed realisation value is calculated following valuation of the
debtor’s assets and existing real and personal guarantees.
• Loans are classified as “watch-list” where the debtor is in a temporary situation of payment difficulty, which may be reclassified after an appropriate period. Loans classified as watch-list are managed by the legal department, which monitors the exposure. The presumed liquidation value of
loans classified as watch-list is calculated in the same way as for non-performing loans.
• Loans are classified between the positions “currently under restructuring”
when the party is in debt to several banks and has presented a petition for
consolidation.
• Loans are classified as “restructured” positions when they are extended by
several banks, which, having granted a moratorium on the payment of the
debt, renegotiate it at below market rates. Management of this category is
also the responsibility of the legal department. The same criteria are
applied to valuing these loans as to non-performing and watch-list loans.
61
• Loans to parties resident in countries which do not belong to the OECD
area are classified as “unsecured loans to countries at risk”.
Loan valuation criteria
The number value of the credits entered in the Financial Statements, including accrued contractual and delayed payment interest, corresponds to the
value of their presumed conversion into revenue. The number value has been
calculated by deducting from the overall sum allocated the loss estimates on
a capital line and for interest, on the basis of specific analyses for non-performing and watch-list loans, for restructured loans and those currently
under restructuring, and as a lump sum for the remainder. Performing loans
to customers, and situations on a watch-list in view of so-called “physiological risk”, have been valued as a lump sum with an equal percentage for all
positions, also calculated according to historic loss trends, the customer’s
industry sector, geographical area and any other factor with an influence on
the position.
The original number value of the loans shall be restored proportionately in
later financial years where there are diminishing reasons for readjusting the
number values applied.
Guarantees issued have been recorded under the overall value of the commitment assumed.
Receivable securities and exchange bills are recorded as forward prices, as
contractually agreed upon with the counterpart.
Agreements with other banks and customers to allocate funds are entered
under the amount to be settled.
Credits transferred definitively (pro soluto) have been removed from the
financial statement, and the adjustments or value recovery recorded in the
profit and loss account for the difference between the compensation received
and the value figure entered in the assets and liability statement.
2. Securities and “off-balance-sheet”operations (other than those on currencies)
2.1 Long-term investments
These securities, which constitute long-term investments as they are utilised
over a lengthy period, represent a sound investment for the Company, and
they may be recorded and evaluated at purchase cost. Since 1999, as an exception to the principle of valuation constants, the valuation criteria for listed
investment securities have been changed in order to reflect better the company’s precise economic and financial situation in the balance sheet.
The following criteria have been adopted:
• non-listed investment securities have been evaluated at their historic cost;
• listed investment securities have been valued at the lesser figure between
cost and market price resulting from the arithmetic average of prices over
the last six months of the year. The original number value of the loans shall
be restored proportionately in later financial years where there are diminishing reasons for readjusting the number values applied.
2.2 Trading securities
Securities that are not long-term investments have been valued at the lesser
figure between cost, according to the LIFO method on the basis of annual
adjustments, and the market price calculated:
• for securities negotiated on regulated markets, by the arithmetic mean of
the prices over the final month;
62
• for non-listed Italian and foreign securities, from the presumed conversion
figure, obtained by calculating the value of future financial flows at current
market rates.
The original cost shall be restored proportionately in later financial years if
there is no reason to correct the number values applied.
REPOS operations on securities, which oblige the transferee to resell said
securities at term, are shown as deposits or lending financial operations. The
cost of the supply and the proceeds from loans, comprising accrued dividends on the securities and the difference between the spot price and forward
price of said securities, are entered under financial items open to interest.
Issuance spreads have been calculated in accordance with art. 8 of the
Legislative Decree dated 27 December 1994, with the accrued quota included
in the financial period’s taxable income.
2.3 “Off-balance-sheet” operations (other than those on currencies)
Securities have been valued as follows:
a) Derived securities intended to cover assets or liabilities or relating to other
assets or liabilities or negotiations balanced in the accounts:
• Derived hedging securities existing at the year end have been valued in
the same way as the assets or liabilities covered by or at any rate associated with them;
• During the year, differences were recognised pro tempore as interest
payable or as assets in the same way as for income and expenditure
resulting from the assets or liabilities covered, or on the basis of the
duration of the contracts, where they were linked securities or generic
hedging transactions.
b) Derived securities linked to negotiation contracts:
• Derived securities listed or unlisted on regulated markets have been valued at the lesser of market price and value. Therefore, only losses
accountable against the system of current operations at the end of the
period have been assigned to the profit and loss account as losses from
financial operations under a corresponding “sundry liabilities” account;
• during the year, differences have been assigned to the “profits (losses)
from financial operations” account;
c) Listed and unlisted derived securities intended to cover balance-sheet
assets and liabilities:
• Listed and unlisted derived securities and real assets have been valued
at cost with an obligation to devalue in the event of persistent deterioration of the counterpart’s cash flow and ability to repay the debt by the
latter’s country of residence (country risk);
• During the year, differences were recognised pro tempore as interest
payable or as assets in the same way as income and expenditure resulting from the assets or liabilities covered, or on the basis of the duration
of the contracts, where they were linked securities or generic hedging
transactions.
d) Premiums paid or collected against the negotiation of options have been
suspended and assigned to “sundry assets” or “sundry liabilities” respectively. Premiums have been debited or credited to the profit and loss
account where the option has not been exercised. The value of the premium for exercised options is added to or subtracted from the cost or pro-
63
ceeds of the security bought or sold.
The option negotiations have been entered at book value and any overall
depreciation is assigned as a loss for financial operations.
e) “Off-balance-sheet” transactions on securities have been valued using the
same criteria as applied to the categories of “investment securities”.
Interconnected transactions involving “off-balance-sheet” securities or
operations associated with portfolio securities have been valued using
consistently applied principles.
2.4 Brokerage contracts on behalf of customers
Commissions are recognised during the year the contracts are signed, while
the spreads on premiums are recorded according to their duration.
3. Equity investments
Equity investments are valued in accordance with art. 18, sub-section 1, of
Legislative Decree 87/1992, according to the criterion of acquisition cost calculated on the basis of acquisition or subscription price or at the value attributed on their award. The investments are devalued in the case of loss of value
deemed permanent in accordance with the subsequent sub-section 2, second
clause of the indicated art. 18.
In the case of the value at which the investments are recorded in the balance
sheet being greater than the corresponding portion of net equity, this is justified by the cost incurred at the time of the purchase as goodwill or as recognition of the greater total value of assets compared with their book value.
Dividends and related tax credit are recorded in the financial year during
which they were received.
4. Assets and liabilities in foreign currency (“off-balance-sheet” transactions included)
Currency operations are recorded on settlement.
Assets, liabilities and “off-balance sheet” transactions are converted to Euro
at the exchange rates at the end of the year, which correspond to parity for
“in” currencies; the result of that valuation is assigned to the profit and loss
account.
Forward “off-balance-sheet” operations are valued as follows:
• Hedging operations are valued at the end-of-financial year exchange rate;
the spreads between forward exchange and spot exchange in these operations are entered pro rata on the profit and loss account consistent with the
recording of interest income from hedged profits or losses;
• Trading operations are valued at the corresponding forward exchange
rates pertaining at the end of the financial year.
Foreign currency investments have been valued at the historic exchange rate
at the time of purchase, whereas investment and fixed securities in foreign
currencies have been readjusted or revalued at the year-end exchange rate.
Costs and revenues in foreign currency are shown at the exchange rate at the
time they were recorded.
5. Tangible fixed assets
Tangible fixed assets are recorded at purchase cost inclusive of the extra
charges incurred, as adjusted for those goods through application of specific
laws related to money revaluation. The total entered on the financial state-
64
ment has been calculated by deducting adjustments from the book.
Fixed assets are depreciated in each financial year at consistent rates on the
basis of financial and technical rates applied to the remaining potential use of
the goods in question. Such criteria are also in line with officially approved
rates.
Maintenance and repair costs not leading to an increase in the total value of
assets have been assigned to the financial year’s profit and loss account, while
those with an incremental value are capitalised by assigning them to the specific technical fixed asset accounts to which they refer.
6. Intangible fixed assets
Intangible assets are entered at purchase cost, including additional charges,
and depreciated systematically according to their potential use.
The restructuring costs of non-owned real estate held under leasing contracts
are entered as assets with the consent of the Board of Auditors.
7. Other factors
Sundry receivables and payables
Sundry receivables and payables are shown at face value. For the former, that
figure indicates the presumed realisation value.
Prepayments and accruals
Fractions of costs and revenues repeated over several years are recognised as
prepayments and accrual income, consistent with the pro-tempore principle.
They have been calculated by taking into account for interest the rates governing individual transactions and, for costs and revenues, sure and reliable
elements.
Several items have been recognised directly as losses, where this is technically more appropriate.
Deposits received in administration
These funds represent actual debt to authorised third parties at the end of the
financial year. Debt movement is recorded as:
• the face value of the cash on hand credited to and used by authorised parties;
• additions accruing/maturing over the period and previous periods in
respect of cash on hand operations. Additions are recorded as the difference between matured proceeds and transaction expenses incurred;
• withdrawals by authorised parties of previously credited cash on hand.
Employee severance pay
This item reflects, net of advances, the indemnities accrued for staff in
employment at the end of the period, pursuant to Law no. 297, 29 May 1982.
Reserves for risks and charges
Taxation reserves are made up of the allocations made with regard to current
taxation and deferred taxation due in addition to the risk against charges for
any disputed tax.
The allocation for current taxation represents a reasonable forecast for the
charges to be imposed on the results of the financial year calculated on the
basis of current practice.
Deferred taxation is indicated using the “balance sheet liability method” from
IAS 12 in accordance with the specific conditions of the Bank of Italy. In par-
65
ticular the taxation reserves include liabilities for deferred taxes arising from
any temporary taxable differences deemed sustainable. There is no allocation
for deferred taxation for capital funds from suspended taxes if it is currently
not expected that transactions will be made which will affect the taxation. In
accordance with the forecast of the Bank of Italy, no allocation for deferred
taxes has been made in view of the adjustments in value and allocations made
for purely fiscal reasons.
Any credit for anticipated taxes arising from temporary deductible differences whose recovery may reasonably be deemed certain on the basis of
future taxable income is entered under the item “other activities”.
Other reserves
Other reserves have been set aside against a fall in value of guarantees issued
and other debts assumed, as well as the certain or likely existence of debts the
value or due date of which could not be determined at the end of the financial year or at the time this financial statement was prepared.
Credit risk reserves
This reserve represents the diligent hedging of credits for interest on arrears,
for which the risk of non-payment is only a possibility. This placement makes
it possible to take advantage of tax benefits.
Reserve for general banking risks
This reserve is intended to hedge against general business risks and is therefore considered net equity.
Subordinated debt
The assigned value is the face value of the loan.
Remnants of consumer goods
Remnants at the end of the financial year of printed matter, stationery and
promotional objects have been valued by applying the bulk price to the
remaining quantities of goods. Such remnants are entered under the item
“other activities”, with an economic set-off as a reduction in “administrative
costs”.
66
SECTION 2 – FISCAL ADJUSTMENTS AND ACCRUALS
2.1 Write-downs exclusively for fiscal purposes
No fiscal adjustments made.
2.2 Provisions made exclusively under tax regulations
Taking advantage of the tax reductions permitted under article 71, paragraph
6 of the President of the Republic’s Decree no. 917, 22 December 1986, 494
thousand Euro were set aside to the risk reserve for default interest maturing
over the period, on which recovery is anticipated, and summarised in the following table:
Provisions to loan loss reserves
Theoretical tax charge
Net effect
Year
current
494
153
341
Years
previous
2,635
1,080
1,555
Total
3,129
1,233
1,896
The theoretical tax charge shown in the table refers to the total balance at the
end of the period and has been calculated as follows:
Irpeg
Irap
rate 34.92%
average rate for two yearly period 2001/2002 4.50%
67
PART B –
I NFORMATION
ON THE BALANCE
SHEET
SECTION 1 - LOANS
1.1 Detail of item 30 “Loans to banks”
a)
b)
c)
d)
Loans to central banks
Securities eligible for re-financing with central banks
REPOS
Loan of securities
31/12/2001
18,131
0
0
0
31/12/2000
16,629
0
0
0
Loans to central banks referred to in point a) refer to the management account
at the Bank of Italy.
The average rate of remuneration of the obligatory fund during 2001 was
4.63%, with an average worth of 19,475 million Euro approx.
1.2 Detail of item 40 “Loans to customers”
a) Securities eligible for re-financing with central banks
b) REPOS
c) Loans of securities
31/12/2001
22,432
0
0
31/12/2000
18,590
4,800
0
1.3 Guaranteed loans to customers
a) From mortgages
b) From pledges on:
1 - Cash deposits
2 - Securities
3 - Other securities
c) From guarantees of:
1 - Government authorities
2 - Other public bodies
3 - Banks
4 - Other operators
Total
31/12/2001
555,548
49,627
31/12/2000
456,213
36,452
13,494
36,102
31
8,251
28,156
45
564,169
493,070
0
42
1,733
562,394
0
55
1,723
491,292
1,169,344
985,735
Assisted loans to customers in full or in part guarantees for 1,169.3 million
Euro represent 47.06% of the total.
1.4 Non-performing loans (including default interest)
a) capital
b) interest
Total
31/12/2001
23,358
3,452
26,810
31/12/2000
21,073
3,865
24,938
31/12/2001
3,452
841
4,293
31/12/2000
3,865
583
4,448
1.5 Loans from default interest
a) Non-performing loans
b) Other loans
Total
68
1.6 Status of the cash loans on 31/12/2001 - Banks
Value categories
A. Doubtful loans
A.1 Non-performing loan
A.2 Watch-list
A.3 Loans being
restructured
A.4 Restructured loans
A.5 Unsecured loans
to countries at risk
B. Performing loans
Gross
exposure
0
0
0
Overall
write-downs
0
0
0
0
0
Net
exposure
0
0
0
0
0
0
0
0
0
119,583
0
0
119,583
1.7 Status of the cash loans on 31/12/2001 – Ordinary customers
Value categories
Gross
exposure
70,842
Overall
write-downs
15,355
A. Doubtful loans
A.1 Non-performing
loans
39,943
A.2 Watch-list
27,150
A.3 Loans being
restructure
0
A.4 Restructured loans 3,749
A.5 Unsecured loans
0
B. Performing loans
2,439,970
Net
exposure
55,487
13,133
2,222
26,810
24,928
0
0
0
3,749
0
0
10,438
2,429,532
1.8a Trend of doubtful loans - Banks
Nonperforming
loans
Watchlist
Loans
being
restructured
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Reasons/Categories
A. Initial gross exposure
on 31/12/2000
A.1 of which for default interest
B. Changes on the increase
B.1 Inflows fromperforming loans
B.2 Default interest
B.3 Transfer from other
categories of doubtful loans
B.4 Other changes on
the increase
C. Changes on the decrease
C.1 Outflows to performing loans
C.2 Cancellations
C.3 Collections
C.4 Realisation on disposals
C.5 Transfer to other categories
of doubtful loans
C.6 Other changes on the decrease
D. Final gross exposure on 31/12/2001
D.1 of which for default interest
Unsecured
Restruc- loans to
tured countries
loans
at risk
69
1.8b Trend of doubtful loans – Ordinary customers
Watchlist
Loans
being
restructured
12,876
0
30,990
30,164
826
0
0
0
0
0
4,508
0
550
0
0
0
0
0
0
0
0
0
16,716
165
0
5,738
0
0
0
0
0
0
0
0
0
550
1,309
0
0
1,309
0
0
0
0
0
0
0
0
10,813
0
0
0
0
0
0
0
27,150
0
0
0
3,749
0
0
0
Nonperforming Watchloans
list
Loans
being
restructured
Nonperforming
loans
Reasons/Categories
A. Initial gross exposure
on 31/12/2000
39,528
4,626
13,167
B.1 Inflows from performing loans
0
564
categoriesx of doubtful loans 10,813
B.4 Other changes on the increas 1,790
12,752
0
C.2 Cancellations
6,471
C.3 Collections
6,272
9
C.5 Transfer to other categories
of doubtful loans
0
C.6 Other changes on the decrease
0
D. Final gross exposure on
31/12/2001
39,943
4,165
Unsecured
Restruc- loans to
tured countries
loans
at risk
1.9a Trend of overall write-downs - Banks
Reasons/Categories
A. Initial overall write-downs
on 31/12/2000
A.1 Of which for default
interest
B.1 Write-downs
B.1.1 of which for default interest
B.2 Use of credit risk reserves
categories of loans
B.4 Other changes
on the increase
C.1 Write-backs from valuation
C.1.1 of which for default interest
C.2 Write-backs from
collections
C.2.1 of which for default interest
C.3 Cancellations
C.4 Transfer to other
categories of loans
C.5 Other changes
on the decrease
D. Final overall write-downs
on 31/12/2001
D.1 Of which for default
interest
70
Unsecured
Restruc- loans to
tured countries
loans
at risk
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1.9b Trend of overall write-downs – Ordinary customers
Nonperforming Watchloans
list
Reasons/Categories
A. Initial overall write-downs
on 31/12/2000
14,590
A.1 of which for default
interest
762
3,547
B.1 Write-downs
3,547
B.1.1 of which for default
interest
107
B.2 Use of credit risk reserves 0
categories of loans
0
B.4 other changes on
the increase
0
5,004
valuation
423
C.1.1 of which for default
interest
14
collections
170
interest
6
C.3 Cancellations
4,411
C.4 Transfer to other
categories of loans
0
C.5 Other changes
on the decrease
0
D. Final overall write-downs
on 31/12/2001
13,133
D.1 Of which for default
interest
713
Loans
being
restructured
Unsecured
Restruc- loans to
tured countries
loans
at risk
492
0
0
0
4,002
0
2,222
2,222
0
0
0
0
0
0
0
0
0
0
8,598
8,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
598
2,162
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,162
0
0
0
0
0
492
0
0
0
0
2,222
0
0
0
10,438
0
0
0
0
0
Composition of item 10 “Cash and deposits with central banks and post
offices”
Bills and coins
Free postal current accounts
Total
31/12/2001
17,570
0
17,570
31/12/2000
12,706
427
13,135
31/12/2001
18,131
79,620
18,909
2,921
2
119,583
31/12/2000
16,629
181,640
11,872
1,534
2
211,677
Composition of item 30 “Loans to banks”
Loans to issuing bank
Deposits in banks
Current accounts for services rendered
Loans
Other loans
Total
71
Composition of item 40 “Loans to customers”
31/12/2001
827,247
545,685
29,384
472,669
75,025
506,781
26,810
1,418
2,485,019
Current accounts
Import-export loans
Mortgage loans
Non mortgage loans
Other financing
Other loans
Total
31/12/2000
642,975
476,098
25,902
388,422
51,271
360,734
24,938
4,943
1,975,283
The overall amount of loans granted is posted to the balance sheet at the presumed realisation value.
SECTION 2 - SECURITIES
2.1 Investment securities
Items/Values
1. Debt securities
1.1 Government securities
– listed
– unlisted
1.2 Other securities
– listed
– unlisted
2. Variable-yield securities
– listed
– unlisted
Totals
Balance sheet value
147,207
9,471
9,471
0
137,736
10,736
127,000
0
0
0
147,207
Market value
147,207
9,471
9,471
0
137,736
10,736
127,000
0
0
0
147,207
The portfolio is represented by securities specifically identified as intangible
assets on the basis of resolutions adopted at the time of purchase, in order to
stabilise the medium-long term yields.
Therefore, the Board of Directors has established the following criteria for the
definition of intangible assets.
• Securities are intended as a permanent corporate investment and can, in
principle, be transferred only after their natural expiry, except in extraordinary circumstances or as a result of an appropriate resolution taken by the
relevant Board of Directors. However, it is possible to exchange securities
and/or restructure the portfolio of intangible assets if these do not substantially alter the portfolio values or offer economic advantages in terms
of yields.
• The related rate and exchange risks can be covered by appropriate coverage transactions.
• Securities of the examined section are allocated according to a special
“framework resolution” of the Board of Directors, which defines percentage and absolute limits in terms of quantities.
On 31/12/2001, listed investment securities were revalued at 278,974.03
Euro.
72
Derivative intangible assets
Unlisted debt securities, posted with an amount of 10,559,532.95 Euro to the
balance sheet, have been purchased through asset swaps in order to stabilise
the medium-long term profit flows. The IRS related to the asset swap, which
is based on the value as of 31/12/2001, shows a potential theoretical depreciation of 2,963,617.78 Euro (2,652,006.17 in 2000), and a potential depreciation
of 833,838.76 Euro has been estimated for the same date.
It is useful to remember that the potential theoretical depreciation has been
determined taking into account the natural expiry of the contract. It is understood, however, that both parties can cancel the contract before its natural
expiry without additional penalties, provided that the difference is indicated
in the expiry coupons. In this context, the theoretical depreciation would be
much more limited.
2.2 Annual changes in investment securities
A.
B.
C.
D.
Initial values
Increases
B1. Purchases
B2. Write-backs
B3. Transfer of portfolio of investment securities
B4. Other changes
Decreases
C1. Sales
C2. Refunds
C3. Write-backs
of which:
– Permanent write-downs
C4. Transfers to portfolio of trading securities
C5. Other changes
Final balance
19,605
127,602
127,000
518
0
84
0
0
0
0
0
0
0
147,207
Items/Values
1. Debt securities
– listed
– unlisted
– listed
– unlisted
2. Variable-yield capital
– listed
– unlisted
Totals
Balance sheet value
330,249
212,811
212,811
0
117,438
933
116,505
5,772
5,772
0
336,021
Market value
331,196
212,961
212,961
0
118,235
936
117,299
5,809
5,809
0
337,005
The valuation of listed and unlisted trading securities has resulted in writedowns and depreciation for 6,607,696.71 Euro, which have been posted to the
profit and loss account. The write-backs on the securities depreciated during
previous years and still present in the portfolio, amounted to Euro 59,064.00.
These have also been posted to the profit and loss account.
The statement above shows potential appreciation, which have not been posted to the balance sheet, amounting to 984,476.25 Euro as compared to market
73
values, as illustrated in the valuation criteria described in Part A - Section 1
above.
The Bank has a portfolio of 2,264,673.84 Euro of directly issued bonds originating from the negotiations with customers of the secondary market.
Valuations of “off balance sheet” transactions have produced a depreciation
of 10,295.90 Euro which has been posted to the profit and loss account. The
valuation of the asset swap “Asset Fiat & Trade” produced a depreciation of
29,696.39 Euro determined according to the difference between the depreciation calculated on the security of 360,600.09 Euro, already included in the
total of the depreciations posted to the profit and loss account for the unlisted securities, and the appreciation calculated on the swap of 330,903.70 Euro
posted to the profit and loss account. The valuation of the remaining asset
swap contracts showed potential appreciation for 88,955.30 Euro which have
not been posted in line with prudential and certainty criteria.
2.4 Annual changes in trading securities
A.
B.
C.
D.
Initial values
Increases
B1. Purchases
- Debt securities
+ Government securities
+ Other securities
- Variable-yield securities
B2. Write-backs and revaluation
B3. Transfers from the portfolio of investment
securities
B4. Other changes
Decreases
C1. Sales and refunds
- Debt securities
+ Other securities
- Variable-yield securities
C2. Write-downs
C3. Transfers to the portfolio of investment
securities
C5. Other changes
Final balance
212,734
2,604,792
2,600,370
2,505,021
1,012,521
1,492,500
95,349
59
0
4,363
2,481,505
2,474,897
2,383,673
930,624
1,453,049
91,224
6,608
0
0
336,021
Securities owned by the Bank have been posted to the balance sheet as indicated here below:
– Treasury notes and similar securities eligible
for re-financing with central banks (item 20)
– Bonds and other debt securities (item 50)
– Shares, quotas and other variable-yield securities
(item 60)
Total
Of which:
– Investment securities
– Trading securities
74
31/12/2001
31/12/2000
55,352
422,529
33,813
198,390
5,347
483,228
136
232,339
147,207
336,021
19,605
212,734
SECTION 3 - EQUITY INVESTMENTS
3.1 Significant equity investments
Name
Head Office
A. Subsidiaries
1. Claris Factor spa
Montebelluna
2. Claris Assicurazioni srl
Montebelluna
3. Claris Broker spa
Montebelluna
4. Claris Vita spa
Milan
5. Claris Leasing spa
Treviso
6. Banca Italo-Romena spa
Treviso
7. Banca di Bergamo spa
Bergamo
8. Veneto Ireland Financial
Services Ltd.
Dublin
B. Companies subject to significant influence
1. Atene srl
Vicenza
2. Sintesi 2000 srl
Milan
3. Nuova Finanziaria
Mediterranea spa
Bari
Net worth Earning/Loss
% Quota
Book value
5,183
61
188
44,926
19,772
31,836
26,094
752
5
5
-1,465
-228
448
94
100
100
100
100
100
92.308
60
4,155
52
568
73,052
9,500
16,732
20,737
149,206
22,206
100
127,000
66,664
-41
272
-260
33.33
33.33
29,696
87
285,392
1,348
25
71,013
3.2 Credit and debit positions with group companies
a) Assets
1. loans to banks
of which: subordinated
2. loans to financial bodies
3. loans to other customers
4. bonds and other debt securities
b) Liabilities
1. due to banks
2. due to financial bodies
3. due to other customers
4. securities issued
5. subordinated debt
c) Guarantees and commitments
1. guarantees issued
2. commitments
31/12/2001
31/12/2000
42,522
0
142,562
0
97
0
127,000
0
1,994
0
50,075
0
0
0
0
0
3,698
8,953
9,754
0
0
1,131
720
13,327
0
0
28,949
3,933
42,305
0
In detail:
Item a.1 Reciprocal and free deposit accounts with Banca Italo-Romena spa, and the
Banca di Bergamo spa;
Item a.2 Loans granted to Claris Factor spa and to Veneto Ireland Financial Services
Ltd., and current account with Claris Leasing spa;
Item a.3 Current account with Claris Broker spa;
Item b.1 Reciprocal and deposit accounts with Banca Italo-Romena spa, and reciprocal accounts and passive repurchase agreements with the Banca di Bergamo
spa;
Item b.2 Deposits in current account of Veneto Ireland Financial Services Ltd. and
Claris Factor spa;
Item b.3 Deposits in current account of Claris Assicurazioni srl, Claris Broker spa
and Claris Vita spa;
Item c.1 Guarantees released on behalf of Claris Broker spa, Claris Leasing spa,
Claris Factor spa and Veneto Ireland Financial Services Ltd.;
Item c.2 Securities to be received by Claris Vita spa, and deposits to be made with
Banca di Bergamo spa.
75
3.3 Credit and debit position with subsidiaries (other than Group companies)
a) Assets
1. Loans to banks
2. Loans to financial bodies
3. Loans to other customers
4. Bonds and other debt securities
b) Liabilities
1. Due to banks
2. Due to financial bodies
3. Due to other customers
4. Securities issued
5. Subordinated debt
1. Guarantees issued
2. Commitments
In detail:
Item a.1
Item a.2
Item a.3
Item a.4
Item b.1
Item b.2
Item b.3
Item c.2
31/12/2001
31/12/2000
6,386
0
25,881
0
1,158
0
972
0
68,168
0
30,043
0
171
0
51,098
0
108,201
48
14
0
0
76,656
15,614
13
0
0
0
7,375
0
3,509
Our deposits in subsidiary banks
Our current account loans to subsidiary financial bodies
Our loans to subsidiary companies
Portfolio bonds of subsidiary Italian banks
Trading deposits and current accounts of subsidiary banks
Trading deposits and current accounts of subsidiary financial bodies
Trading current accounts of other subsidiary companies
Securities to be received by subsidiary companies
3.4 Composition of item 70 “Equity investments”
a) In banks
1. listed
2. unlisted
b) In financial bodies
1. listed
2. unlisted
c) Others
1. listed
2. unlisted
Total
76
31/12/2001
31/12/2000
20,185
7,674
20,185
7,445
4,052
101,604
0
3,066
4,699
2,907
141,121
0
32,058
62,754
3.5 Composition of item 80 “Equity investments in group companies”
a) In banks
1. listed
2. unlisted
b) in financial bodies
1. listed
2. unlisted
c) others
1. listed
2. unlisted
Total
31/12/2001
31/12/2000
0
37,470
0
9,296
0
140,655
0
131,155
0
73,671
251,796
0
26,443
166,894
Annex “C” of the supplementary note details the equity investments owned.
3.6 Annual changes in equity investments
3.6.1 Equity investments in group companies
A.
B.
C.
D.
E.
F.
Initial values
Increases
B1. Purchases
B2. Write-backs
B3. Revaluation
B4. Other changes
Decreases
C1. Sales
C2. Write-downs
of which: permanent write-downs
C3. Other changes
Final balance
Total revaluation
Total write-downs
166,894
148,943
148,943
0
0
0
64,041
25,823
38,218
38,218
0
251,796
0
38,218
In detail:
• Item B1
for the purchase of shares from
the following companies
Claris Vita spa
Claris Leasing spa
shares
ordinary
ordinary
ordinary
ordinary
no.
75,000,000
6,000
120,000,000
20,000
counter
value
111,269
7,436
20,737
9,500
• Item C1
sales of investments for incorporation
Immobiliare Servizi spa
shares
ordinary
no.
50,000
counter
value
25,823
• Item C2
devaluation of equity investments
Claris Vita spa
counter value
38,218
77
3.6.2 Other equity investments
A.
B.
C.
D.
E.
F.
Initial values
Increases
B1. Purchases
B2. Write-backs
B3. Revaluation
B4. Other changes
Decreases
C1. Sales
C2. Write-downs
Of which: permanent write-downs
C3. Other changes
Final balances
Total revaluations
Total write-downs
62,754
83,381
82,179
0
0
1,202
5,014
5,014
0
0
0
141,121
0
0
The following section details the most relevant transactions:
• Item B1
for the purchase of shares from
the following companies
Arca Vita spa
Italmobiliare spa
Rinascente spa
Factorit spa
Nuova Finanziaria Mediterranea spa
Elsag Supernet spa
T.I.M. spa
Telecom Italia spa
Ifil spa
Ipi spa
Centrobanca spa
Italcementi spa
Arca SGR spa
Banca per il Leasing spa
Alpifin spa
Sintesi 2000 srl
Treviso Glocal scarl
shares
ordinary
savings
savings
ordinary
ordinary
ordinary
savings
savings
savings
ordinary
ordinary
ordinary
ordinary
ordinary
ordinary
ordinary
ordinary
no.
39,188
127,100
303,000
233,395
137,486,537
250
479,000
200,000
410,000
340,750
337,865
100,000
550,000
76,180
77,469
25,000
10,400
• Item B4
net income resulting from the transfer of value
Arca Merchant spa
Supernet spa
Telecom Italia spa
• Item C1
transfer of equity investments
Federveneta scarl
Arca Merchant spa
Factorit spa
SEC Servizi scpa
Supernet spa
Telecom Italia spa
Arca SGR spa
Centrobanca spa
78
shares
ordinary
ordinary
ordinary
ordinary
ordinary
savings
ordinary
ordinary
counter
value
25
2,252
1,087
273
71,013
66
1,972
872
1,800
1,272
282
368
360
393
77
62
3
counter
value
1,024
57
121
no.
6,384
2,032,404
450,000
100,000
128
200,000
495
176,979
counter
value
165
2,771
273
52
170
993
305
282
SECTION 4 – TANGIBLE AND INTANGIBLE ASSETS
4.1 Annual changes in tangible assets
A. Initial values
B. Increases
B1. Purchases
B2. Write-backs
B3. Revaluations
B4. Other changes
C. Decreases
C1. Sales
C2. Write-downs:
a) Amortisation
b) Permanent write-downs
C3. Other changes
D. Final balances
E. Total revaluations
F. Total write-downs:
a) Amortisation
Intangible
17,703
Tangible
11,336
Total
29,039
10,238
0
0
12,144
4,250
0
0
91
14,488
0
0
12,235
0
1,005
1,005
1,096
0
0
38,989
5,165
2,621
0
1,892
10,159
0
3,717
0
1,892
49,148
5,165
12,884
0
32,328
0
45,212
0
These changes have arisen from:
Item B1 Property – progress in work on services centre in Montebelluna
and purchase of building to be used at Motta di Livenza subsidiary;
Item B1 Furnishings – Purchase of ordinary and instrumental “miscellaneous furnishings, machinery and equipment”;
Item B4 Property and Furnishings – purchase of property and furnishings
following merger for incorporation with Immobiliare servizi spa
and realisation earnings from the assets
Item C1 Furnishings – Sale or transfer of obsolete or unused assets;
Item C3 Furnishings - Loss on transfer of assets and cancellation of pending
“tangible” assets.
Amortisation has been calculated as described in the evaluation criteria by
applying the following rates:
–
–
–
–
–
–
–
Property
Vehicles
Electronic equipment
Alarm systems
Furnishings
Office furniture and equipment
Equipment with unit value below Lira 1 million
3%
25%
20%
30%
15%
12%
100%
During the first year of use of the goods, the rate is reduced by 50% as established in the related tax laws.
As established in the provisions of Article 10 of Law no. 72 dated 19/03/1983,
Annex B provides information on property currently owned, which was subject to monetary revaluations in the past.
79
4.2 Annual changes in intangible assets
A. Initial values
B. Increases
B1. Purchases
B2. Write-backs
B3. Revaluations
B4. Other changes
C. Decreases
C1. Sales
C2. Write-downs:
a) Amortisation
C3. Other changes
D. Final balances
a) amortisation
3,255
1,824
1,824
0
0
0
1,773
0
1,773
0
0
3,306
0
5,701
0
The intangible assets covering several years, net of the amortisation posted to
the profit and loss account, amount to 3.3 million Euro, and comprise the following items:
Expenses for the purchase of software
Expenses for the refurbishing of rented property
Other multi-year charges
Total
234
905
2,167
3,306
The item:
• “Other multi-year changes” comprise the expenses paid for the establishment of “Veneto Banca” and the cost for the revision project of its organisational structure entrusted to “Bain Cuneo e Associati”.
SECTION 5 – OTHER ASSETS
5.1 Composition of item 130 “Other assets”
Loans to the Treasury
Outstanding and dishonoured bills and cheques
Loans for options
Transactions with derivative products
(including guarantee deposits)
Transactions with securities to be settled
on customer current accounts
Portfolio transactions to be settled
Transactions in foreign currency to be settled
Advances on suppliers’ invoices
Tax collection lists - remainders
Suspended current account cheques
Current account cheques billed to third parties
Loans to customers for commissions to be collected
Entries to be settled on proxy processes
Valuation set-offs for off balance sheet transaction
Other assets
Total
80
31/12/2001
41,026
159
2,269
31/12/2000
25,076
221
5,215
4,084
34,938
661
7,068
17,234
667
4
230
29,177
4,547
7,631
331
9,176
124,264
992
3,992
10,053
1,804
5
177
18,683
2,734
6,290
0
11,613
121,793
Item “Loans to Treasury” includes:
31/12/2001
Tax credits from previous years
431
Tax advance on employee severance pay
764
Revaluation of tax advance on employee severance pay
144
Advances for Irpeg/Irap
17,782
Imbalance of advance/deferred taxes
6,285
Withholding taxes advanced at source
3,428
Withholding taxes paid
106
VAT advance for December
197
Substitute tax advances for medium and long term transactions
255
VAT on tax commissions
171
Tax credits on dividends
11,424
Other assets
39
Total
41,026
31/12/2000
417
922
108
14,036
5,124
2,680
149
28
189
171
1,251
1
25,076
5.2 Composition of item 140 “Accrued income and pre-paid expenses”
Accrued income for
– Interest incomes on securities
– Interest on loans to customers
– Interest incomes from bank
– Transaction differences on interest rate swaps
Total accrued income
Pre-paid expenses on
– Insurance premiums
– Other expenses not posted to the year
Total pre-paid expenses
Total accrued income and pre-paid expenses
31/12/2001
31/12/2000
7,726
5,355
778
4,671
18,530
4,554
5,451
752
1,586
12,343
126
1,713
1,839
20,369
418
1,140
1,558
13,901
Accrued income and pre-paid expenses have been calculated pro tempore.
5.3 Write-downs for accrued income and pre-paid expenses
a) Assets
b) Liabilities
31/12/2001
0
0
31/12/2000
0
0
The Bank has chosen not to carry out direct write-downs on the increases and
decreases for the assets and liabilities related to the examined accrued income
and pre-paid expenses.
5.4 Distribution of subordinated assets
a) Loans to banks
b) Loans to customers
c) Bonds and other debt securities
31/12/2001
0
0
15,964
31/12/2000
0
0
0
81
SECTION 6 - DEBTS
6.1 Detail of item “Due to bank”
a) REPOS
b) Security loans
31/12/2001
2,103
0
31/12/2000
0
0
31/12/2001
120,582
0
31/12/2000
111,893
0
31/12/2001
18,988
934,915
33,744
987,647
31/12/2000
11,587
530,580
25,814
567,981
6.2 Detail of item “Due to customers”
a) REPOS
b) Security loans
Composition of item 10 “Due to bank”
Deposits
Loans
Total
Composition of items 20 “Due to customers” and 30 “Securities issued”
Due to customers:
– Current accounts
– Saving deposits
– Other ratios
– REPOS
Securities issued:
– Bonds
– certificates of deposit
Total
31/12/2001
31/12/2000
866,264
106,500
23
120,582
724,349
110,327
0
111,892
880,665
46,563
2,020,597
756,845
60,488
1,763,902
Composition of item 40 “Deposits received in administration”
Funds received from:
State treasury
Veneto Sviluppo spa
Total
31/12/2001
105
678
783
31/12/2000
142
504
646
The net change that occurred during the trading year originates from:
• The increase of funds connected with management activities, amounting to
323 thousand Euro;
• The decrease originating from the losses of the deposits received in administration, amounting to 186 thousand Euro.
The management activity has been characterised by the issue of facilitated
agricultural loans to customers, in compliance with the requirements of Law
88/1980 and of several regional laws, through the funds of Veneto Sviluppo
spa.
82
SECTION 7 - FUNDS
7.1 Composition of item 90 “Credit risk reserves”
31/12/2001
3,129
3,129
Credit risk reserves for default interest
Total
31/12/2000
3,527
3,527
7.2 Changes of the “Credit risk reserves” during the trading year (item 90)
A.
B.
C.
D.
Initial values
Increases
B1. Provisions
B2. Other changes
Decreases
C1. Uses
C2. Other changes
Final balances
3,527
494
494
0
892
107
785
3,129
7.3 Composition of sub-item 80 c) “Reserves for risks and charges: other
funds”
Other funds:
31/12/2001
1,816
5,165
8,342
5,323
Sundry funds – Social security contributions
Reserves for risks and charges ex B.C.C.
Total
31/12/2000
1,898
1,549
8,467
11,914
Changes occurring in item 80 “Funds for risks and charges”
Balance on
31/12/2000
(Uses)
a) Reserves for retirement and
similar obligations
b) Taxation reserves
c) Other funds:
1 - sundry funds – social
sec. contrib.
2 - Reserves for risks and
charges
Total
Total reserves for risks and
charges
Balance on
Provisions
31/12/2001
0
21,403
0
20,430
0
10,558
0
11,531
1,898
1,898
1,816
1,816
10,016
11,914
124
2,022
3,615
5,431
13,507
15,323
33,317
22,452
15,989
26,854
Taxation reserves (item 80 b)
The current quota of the fund includes the amount due for Irpeg/Irap taxes
owed for the trading year.
Tax down payments for Irpeg and Irap are entered under “other assets” (item
130).
As regards the tax situation, all the trading years up to 1995 have been settled.
83
Application of the tax reductions as per Law 461/98 (“Ciampi” Law) and
Legislative Law Decree 153/99
Situation prior to the 2001 financial year:
The Legislative Decree no. 153 dated 17/05/1999 establishes provisions for
tax reductions. According to these provisions, it is possible to allocate for five
consecutive years a quota of the net income from the period to a special
reserve (named “Legislative Decree 153/99 Reserve”) in order to claim a
reduction of the tax quota by 12.50% as calculated on the amount of income
subject to IRPEG. This reserve cannot be distributed to shareholders before
three years from the date of allocation of the income to the reserve, as its distribution before the given term would lead to the application of the ordinary
income taxes both to the Bank and its shareholders.
Application of the aforementioned law has reduced the taxes owed by Veneto
Banca for the year ending on 31 December 2000 by 203,484.00 Euro, with the
constitution of a special income reserve of Euro 829,613.80.
On 3 April 2000, the Treasury and Finance Ministries distributed a notice to
inform taxpayers of the suspension of the aforementioned facilitation. This
suspension was requested by the European Commission, which will deliberate on the compliance of this facilitation with the EU provisions regarding
public financing aids to companies.
It was deemed opportune to make use of the benefit in line with the orientation of the advisers and other sister companies.
Should the “Law” be regarded inapplicable, the taxes for the full year 2000
would be increased by 203,484.00 Euro and be regarded as contingent loans.
However, in this case, the reserve of 829,613.80 Euro would become fully
available.
In 2001 the European Commission rejected the facility in question as “state
aid”. The Italian government however decided to take the matter to the
European Court of Justice in Luxembourg. Taking account of this, the bank
taxed the income corresponding to this facility at the full rate and will propose to the meeting of companies to allocate part of the profit from the financial year of 829,613.80 Euro to the Special Reserve, reserving the right to reimburse any excess tax paid if the Court of Justice rules in its favour.
Other funds (item 80 c)
• Line 1: These are compulsory social contributions owed by virtue of the
amounts paid to personnel during the period;
• Line 2: 2,000,000.00 Euro provision to the reserves for risks and charges for
any revocation or legal cause, 3,165,000.00 for any other events
such as possible losses of value in financial investments, including
“equity investments”.
Changes related to item 70 “Employee severance pay”
Balance on 31/12/2000
Use for allowances paid during the period
Advances granted by virtue of legal provisions and contract agreements
Replacement tax 11% on revaluation of severance pay D.Lgs. 168/2001
Provision for the period
Balance on 31/12/2001
84
12,538
-643
-585
-41
1,671
12,940
The loans to the Treasury include the advance taxes on the employee severance pay accrued on 31 December 1996-1997, as per legal provisions. This
advance amounts to 907,490.00 Euro and has been revalued according to the
criteria established in paragraph 4 of Article 2120 of the Civil Code, as per the
provisions of Article 3, paragraph 213 of Law 662/96. The sum of 35,698.00
Euro, resulting from the revaluation, has been posted to the profit and loss
account.
Deferred taxes
A. Assets for anticipated tax
1. Initial amount
2. Increases
2.1 Advance taxes for the period
2.2 Other increases
3. Decreases
3.1 Advance taxes cancelled in the period
3.2 Other decreases
4. Final amount
B. Liabilities for deferred tax
1. Initial amount
2. Increases
2.1 Deferred taxes for the period
2.2 Other increases
3. Decreases
3.1 Deferred taxes cancelled in the period
3.2 Other decreases
4. Final amount
5,222
1,848
1,848
0
715
655
60
6,355
98
12
12
0
40
-40
0
70
The entries connected to the advanced and deferred taxes given in the tables
refer to:
Assets for advance taxes
Write-downs on loans to customers
Entertainment expenses
Provisions to the reserves for risks and charges
Total assets for advance taxes
1,007
75
5,273
6,355
Liabilities for deferred taxes
Appreciation divided by instalments on transfers of intangible assets
Total imbalance between advance/deferred taxes
70
6,285
1. Advance and deferred taxes related to events or transactions connected
with the profit and loss account
In order to be able to quantify the amounts for accounting purposes, it has
been necessary to distinguish between deductible and taxable temporary differences. This operation has influenced the profit and loss accounts of the
periods in which the source entries were posted, resulting in the payment of
higher or lower taxes.
All deductible and taxable temporary differences have been classified as differences characterised by an inversion that could be defined in time. Thus, in
85
accordance with the provisions of the consolidation act on income tax, only
the differences with certain return date have been identified.
The resulting differences originate from the provisions to reserves for risks
and charges, entertainment expenses (that will be recovered in fifths) and
actual appreciation (that will be taxed in fifths).
A comparison has been made between the net temporary differences
(deductible differences less taxable differences) for each period and the taxable income for the years covered by the strategic plan, in compliance with
the principle of “reasonable feasibility” of realising future taxable income
able to allow the actual recovery of fiscal benefits.
The assets for advance taxes and the liabilities for deferred taxes posted in the
balance sheet of 2000 have been recalculated as a result of the variation of the
Irpeg rate, as established in the financial law of 2001. Thus, the average Irpeg
rate, applied to the deferred taxes resulting from the period is equivalent to
34.92%, in consideration of the fact that the Bank is entitled to take advantage
of a reduced taxation on income, in accordance with the provisions of
Legislative Decree Law 466/97 (D.I.T.).
As the amount of liabilities from deferred taxes was less than the amount of
the assets for advance tax during the preparation of the balance sheet, these
were compensated in accordance with the provisions of the Bank of Italy,
which authorises this kind of operation provided that these refer to the same
tax period and expire in the same interval of time.
2. Advance and deferred taxes in relation to shareholder’s equity
No assets for advance tax or liabilities for deferred taxes have been posted to
the shareholder’s equity. Consequently, only the relevant tables have been
completed.
Amounts and changes in the period related to liabilities for deferred taxes,
not included in sub-item 80b “Taxation reserves”.
The liabilities for deferred taxes, which have not been included in sub-item
80b) “Taxation reserves” because the deferred payment of the tax is subordinated to the posting of special provisions for suspended tax reserves,
amounted to 3,129 million Euro on 31/12/2001. These refer entirely to provisions for credit risk reserves related to default interest, as per Article 71, paragraph 6 of the TUIR (regional tax consolidation act).
These liabilities were posted under item “Other liabilities of the supplemental capital: others” of the regulatory capital, in accordance with the provisions
of the Bank of Italy.
Amounts and changes of taxable temporary differences that cannot be posted to the liabilities for deferred taxes
Temporary taxable differences that cannot be posted as liabilities for deferred
taxes, since they refer to matters unlikely to be taxed, consist of the following
items:
• Revaluation risks for tax suspension amounting to 0.328 million Euro, pursuant to Law 576/75
86
Given the existence of these reserves, the Bank decided not to allocate liabilities for deferred taxes due to the improbable use of these reserves.
3. Content of the tables of the supplementary note
The tables of the supplementary note referring to the changes connected with
items “Assets for advance taxes”, “Liabilities for deferred taxes” and “Income
tax for the year” have been completed, in accordance with the provisions set
forth in the advice distributed by the Bank of Italy.
The statements that follow have been provided to integrate and illustrate the
figures posted to items “Assets for advance taxes” and “Liabilities for
deferred taxes” deriving from temporary differences connected with the profit and loss account:
• The increase in assets for advance taxes and in the liabilities for deferred
taxes refer to the figures, used for Irpeg and Irap purposes, posted for the
year as a result of the new differences applicable to the years to come,
specifically related to entertainment expenses that can be deducted in time
by equal quotas (Art. 74, paragraph 2, T.U.I.R), to provisions for the fund
for risks and charges including from the previous period. Taxes were calculated at 1.305 million Euro for Irpeg and 0.543 million Euro for Irap.
• Decreases are instead related to the advance and deferred taxes cancelled
during the year as a result of returns. The counter-values of increases and
decreases were posted, with the appropriate sign, to the table containing
the income tax for the year. The counter-values posted were respectively
0.578 million Euro in Irpeg and 76,626.00 Euro in Irap for advance taxes
and 35,339.00 Euro in Irpeg and 4,607.00 Euro in Irap for deferred taxes.
• Item “Other decreases” contains the amount resulting from the change of
the Irpeg rate, which has been recalculated on the amount posted in the
previous year.
The items of the balance sheet related to deferred and advance taxes are summarised below.
• Item 130 “Other assets” amounting to 6.285 million Euro, resulting from
the compensation carried out, as explained above.
• Item 220 of the profit and loss account “Income tax for the year” comprises assets for 1.836 million Euro, of which 1.294 million Euro in Irpeg and
0.542 million Euro in Irap, and liabilities for 0.675 million Euro, of which
0.603 million Euro in Irpeg and 0.072 million Euro in Irap.
87
SECTION 8 – CAPITAL, RESERVES, RESERVE FOR GENERAL BANKING RISKS AND SUBORDINATED DEBT
Composition of the shareholder’s equity and of subordinated debt
Item
item 100
item 110
item 120
item 130
item 140
Description
31/12/2001
13,146
Subordinated debt
154,956
Capital
73,065
Issue premiums
165,604
Reserves:
75,850
a) Legal reserves
22,551
b) Reserve for own shares or quotas
0
c) Statutory reserves
0
d) Other reserves
53,299
item 150 Revaluation
5,554
item 160 Retained earnings
0
item 170 Net income for the period
34,108
Total shareholder’s equity
522,283
31/12/2000
6,432
108,456
52,817
109,117
62,828
19,590
0
0
43,328
5,554
0
28,510
373,715
The postings connected with the items forming the shareholder’s equity are
described in Annex A.
Composition of item 100 “Reserve for general banking risks”
31/12/2001
13,146
31/12/2000
6,432
The increase for the period includes 6.714 million Euro deriving from the provisions of the period.
Composition of item 110 “Subordinated debt”
Subordinated debt
31/12/2001
154,956
31/12/2000
108,456
The examined item comprises the following bonded loan in Euro:
“Veneto Banca convertible subordinated 2000-2007 1.5%”
• Issued on 31st March with no. 600,000 bonds, each with a nominal value of
€ 180.76 for a nominal total of € 108,455,948.81;
• Deferred annual gross interest rate of 1.5% on the nominal value;
• Date of expiry: April 1st 2007;
• No advanced refund terms were foreseen;
• Subordination terms: these establish that if the Bank is dissolved or liquidated, the bond will be refunded only after all the other creditors, without
equal subordination, have been refunded;
• Each bond will be converted into 10 ordinary Veneto Banca shares. Bonds
can be converted in the following periods:
– From 01.01 to 28.02 of 2005 in the amount of a third
– From 01.01 to 28.02 of 2006 in the amount of an additional third
– From 01.01 to 28.02 of 2007 in the amount of the remaining third
88
“Veneto Banca convertible subordinated 2001-2007 2%”
• Issued on 30th April 2001 with 249,999 bonds, each with a nominal value
of € 186 for a nominal total of € 46,499,814;
• Deferred annual gross interest rate of 2 % on the nominal value;
• Date of expiry: May 1st 2007;
• No advanced refund terms were foreseen;
• Subordination terms. These establish that if the Bank is dissolved or liquidated, the bond will be refunded only after all the other creditors, without
equal subordination, have been refunded;
• Each bond will be converted into 10 ordinary Veneto Banca shares. Bonds
can be converted in the following periods:
– From 01.01 to 28.02 of 2005 in the amount of a third
– From 01.01 to 28.02 of 2006 in the amount of an additional third
– From 01.01 to 28.02 of 2007 in the amount of the remaining third
Or at the expiry date of the loan, at the subscriber’s discretion.
Composition of item 120 “Capital”
Ordinary shares no. 24,354.860 (*)
each with a nominal value of Euro 3.00 (**)
31/12/2001
31/12/2000
73,065
52,817
(*) distributed among 14,547 shareholders
(**) during the trading year, transactions have involved n. 4,107,170 shares
Composition of item 130 “Issue premiums”
Issue premiums
31/12/2001
165,604
31/12/2000
109,117
31/12/2001
22,551
0
0
53,299
46,439
3
100
31/12/2000
19,590
0
0
43,238
37,039
3
100
1,796
4,132
0
829
1,796
4,132
169
0
Composition of item 140 “reserves”
a)
b)
c)
d)
legal reserve
Reserves for own shares or quotas
Statutory reserves
Other reserves:
– Extraordinary reserve
– Taxed reserve
– Taxed reserve, art. 4 L. 823/73
– Appreciation reserve from facilitated
financing law L. 218/90
– Reserve for the purchase of corporate shares
– Amalgamation balance reserve
– Special reserve D.Lgs. 153/99
The extraordinary reserve of 46,439 thousand Euro includes, under the terms
of Art. 2423 of the Civil Code, the unavailable reserve amounting to 1.55 million Euro, resulting from the revaluation carried out during the trading year
of 1996.
89
Composition of item 150 “Revaluation reserves”
Revaluation reserves:
– law no. 576/75
– law no. 72/83
– law no. 413/91
31/12/2001
5,554
328
3,226
2,001
31/12/2000
5,554
328
3,226
2,001
31/12/2001
0
31/12/2000
0
Composition of item 160 “Retained earnings”
Retained earnings
Composition of item 170 “Net income for the period”
31/12/2001
34,108
31/12/2000
28,510
Composition of the items related to the capital assets
Item
Description
item 110 Subscribed capital not paid up
item 120 Own shares or quota
31/12/2001
0
0
31/12/2000
0
0
The portfolio of the Bank does not include own shares. Therefore, all transactions on the authorised capital have been settled.
8.2 Regulatory capital on 31/12/2001
31/12/2000
A. Capital for regulatory purposes
A.1 Tier 1 capital
A.2 Supplemental capital
A.3 Items to be deducted
A.4 Capital for regulatory purposes
B. Prudential regulatory requirements
B.1 Credit risks
B.2 Market risks
of which – Trading portfolio risks
Exchange rate risks
B.2.1 3rd level subordinated loans
B.3 Other prudential requirements
B.4 Total prudential requirements
C. Risk assets and regulatory coefficients
C.1 Weighted risk assets
C.2 Tier 1 capital/weighted risk assets
C.3 Capital for regulatory purposes/
weighted risk assets
90
342,608
153,769
0
496,377
217,913
10,147
1,017
0
0
0
228,060
3,261,258
0.11
0.15
SECTION 9 – OTHER ITEMS OF LIABILITIES
9.1 Composition of item 50 “Other liabilities”
Due to Treasury
Foreign currency spread on portfolio transactions
Different transactions to be settled
Foreign currency transactions to be settled
on customer current accounts
Items related to treasury services
Items related to security services
Transactions with derivative products
Due for options
Sums available to customers for network transfers
Counter-value for the evaluation of transactions
not included in the balance sheet
Other items, other than above
Total
31/12/2001
7,848
23,112
6,220
31/12/2000
5,896
19,805
5,783
31,800
18
217
4,213
1,268
2,786
15,745
7,464
143
216
10
4,187
3,150
8,343
19
19,192
112,438
0
11,541
66,538
Dues to the Treasury originate prevalently from the deductions applied by
the Bank as withholding agent payable in accordance with the terms and conditions set forth in applicable laws.
9.2 Composition of item 60 “Accrued liabilities and deferred income”
Accrued liabilities for
– Interest expenses from customers
– Interest on REPOS
– Interest expenses from banks
– Securities transactions
– Others
Total deferred income
Deferred income on
– Interest income on portfolio transactions
– Commission income on guaranteed commitments
– Differences on forward transactions in foreign currency
Total accrued liabilities and deferred income
31/12/2001
31/12/2000
1,879
460
2,256
1,018
138
5,751
0
883
2,531
1,951
91
5,456
1,934
191
857
2,982
8,733
1,755
235
459
2,449
7,905
Accrued liabilities and deferred income have been calculated pro tempore.
9.3 Write-downs for accrued liabilities and deferred income
Write-downs for accrued liabilities and deferred income posted to the related
profit and loss accounts can be summarised as indicated below:
31/12/2001
31/12/2000
10,063
1,465
0
11,528
9,379
7,266
0
16,645
a) Liabilities:
1. Accrued liabilities for interest expenses:
– on bonds
– on certificates of deposit
b) Assets
Total
91
SECTION 10 – GUARANTEES AND COMMITMENTS
10.1 Composition of item 10 “Guarantees issued”
a) Guaranteed loans of a commercial nature
b) Guaranteed loans of a financial nature
c) Pledged assets
Total
31/12/2001
91,680
61,062
0
152,742
31/12/2000
81,137
71,915
0
153,052
Guaranteed loans of a commercial nature are guarantees connected with specific commercial transactions, while guaranteed loans of a financial nature are
related to the regular payment of dues by the principal.
10.2 Composition of item 20 “Commitments”
a) Commitment to lend funds of a certain use
b) Commitment to lend funds of uncertain use
Total
31/12/2001
22,986
2,285
25,271
31/12/2000
14,281
2,248
16,529
The risk connected to guarantees issued and to commitments to lend has been
evaluated using the same procedure adopted for cash loans. At present, no
losses are expected from these commitments.
10.3 Assets pledged for liabilities
31/12/2001
31/12/2000
25,000
25,823
45,000
0
10,100
80,100
0
25,823
31/12/2001
0
0
31/12/2000
0
1
Categories of transactions
Coverage transactions Negotiation
1. Trades
0
324,333
1.1 Securities
0
7,866
– Purchases
0
5,738
– Sales
0
2,128
1.2 Currencies
0
316,467
– Currencies against currencies
0
9,653
– Purchases against Euro
0
176,745
– Sales against Euro
0
130,069
Other
0
0
0
0
0
0
0
0
Bank of Italy – guaranteed securities advance
between days
Bank of Italy – guaranteed securities Advance
provisioning of euros
Deposit tied up for public purchase offer Banca
Popolare del Levante
Total
10.4 Unused portions of committed credit lines
a) central banks
b) other banks
10.5 Forward transactions
92
2.
Deposits and financing
– to be disbursed
– to receive
3. Derivative contracts
3.1 With exchange of assets
a) Securities
– Purchases
– Sales
b) Sales
c) other values
– Purchases
– Sales
3.2 Without exchange of assets
a) Currencies
b. other values
– Purchases
– Sales
0
0
0
306,851
11,362
11,362
11,362
0
0
0
0
0
0
0
0
295,489
0
0
0
0
295,489
161,899
133,590
17,248
17,248
0
340,801
130,421
357
0
357
130,064
6,464
60,800
62,800
0
0
0
210,380
0
0
0
0
210,380
93,690
116,690
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
The derivative contracts concern:
Coverage transactions Negotiation
With exchange of assets
Purchase of options on titles
11,362
Sale of Isoalfa options
357
Currency against currency options
6,464
Purchase of options on titles
60,800
Sale of options on titles
62,800
Without exchange of assets
• Purchase
Basis swap
Interest rate swap
Asset swap
Interest rate collars
Interest rate swap
Forward rate agreement
Interest rate cap
• Sale
Basis swap
Interest rate swap
Asset swap
Interest rate collars
Interest rate swap
Interest rate cap
50,466
77,071
34,362
10,000
34,500
29,000
3,357
16,833
50,466
21,927
61,197
10,000
54,500
32,000
3,357
16,833
93
Section 3.2 “Derivative contracts without exchange of assets” include the
“Basis Swap” (contracts with a swap of two indexed rates), amounting to:
• Euro 50,466,068.00 of nominal value to cover liabilities;
These amounts are included both in purchases and sales.
The evaluation of the derivative contracts in force on 31 December 2001 show
a depreciation of 2,242,964.00 Euro for the transactions covering assets and
liabilities, which has not been posted in the profit and loss account in compliance with the provisions of Legislative Decree 87/92.
10.6 Derivative contracts on loans
1. Purchases of protection
– credit default product
2. Sales of protection
Negotiation
20,000
0
20,000
20,000
0
0
0
Other
0
0
0
0
0
0
Derivative contracts on loans have the aim of transferring the underlying
loan risk to a specific “reference obligation” activity from the person who
purchases protection (protection buyer) to the person selling the protection
(protection seller). In these transactions, the object of the transaction is represented by the credit risk for the reference entity.
SECTION 11 – CONCENTRATION AND DISTRIBUTION OF ASSETS
AND LIABILITIES
11.1 Large risks
On 31st December 2001 the items comprised in the “Large Risks” category, in
accordance with regulatory provisions, included:
a) Amount
b) Number
31/12/2001
275,992
4
31/12/2000
92,318
2
The provisions issued by the Regulatory Authority classify a “large risk” as a
loan granted to a “customer”, weighted according to the set regulations, that
is equal to or greater than 10% of the regulatory capital of the issuing bank.
“Customers” can be single persons or a “group of connected customers”,
which includes two or more persons forming a single group in terms of risk
because of the following reasons:
a) One of the persons has power of control over the other person(s) (“juridical” connection)
or:
b) The nature of the relations linking the persons would most probably affect
refunding of the loans granted if one of the parties experienced financial
difficulties, regardless of the existence of controlling relations (“economic”
connection).
94
11.2 Distribution of the loans to customers divided by main categories of
debtors
a) Government authorities
b) Other public bodies
c) Non financial bodies
d) Financial bodies
e) Producer groups
f) Other operators
Total
31/12/2001
0
4,148
1,347,485
278,966
144,529
709,891
2,485,019
%
0.00
0.17
54.22
11.23
5.82
28.56
100.00
31/12/2000
0
1,221
1,167,228
82,268
139,922
584,644
1,975,283
%
0.00
0.06
59.09
4.16
7.08
29.61
100.00
11.3 Distribution of loans to resident non-financial bodies and producer
groups
31/12/2001
a) Other services destined
for sale
289,378
b) Commerce services, salvage
and repairs
207,446
c) Textiles, leather, shoes and
clothing
200,519
d) Building and public works
166,437
e) Other industrial products
165,772
f) Other categories
460,832
Total
1,490,384
%
31/12/2000
%
19.42
220,395
16.87
13.92
205,953
15.40
13.45
11.17
11.12
30.92
100.00
149,121
156,329
150,755
428,856
1,311,409
11.41
11.96
11.54
32.82
100.00
11.4 Distribution of guarantees issued by main categories of counterparts
a) Government authorities
b) Other public bodies
c) Banks
d) Non financial bodies
e) Financial bodies
f) Producer groups
g) Other operators
Total
31/12/2001
0
203
956
105,014
29,538
3,722
13,309
152,742
%
0.00
0.13
0.63
68.75
19.34
2.44
8.71
100.00
31/12/2000
0
69
3,014
90,966
44,582
4,289
10,132
153,052
%
0.00
0.05
1.97
59.43
29.13
2.80
6.62
100.00
Other
Countries
45,055
24,963
922
19,170
101,015
70,975
29,877
163
0
Total
2,758,046
91,450
2,354,835
311,761
2,961,421
823,872
1,054,799
927,011
155,739
Other EU
Countries
284,729
3,170
129,262
152,297
101,547
92,800
8,693
54
0
3,087,830
119,583
2,485,019
483,228
3,163,983
987,647
1,093,369
927,228
155,739
149,666
27,144
1,203
178,013
11.5 Territorial distribution of assets and liabilities
Items/Countries
1.
1.1
1.2
1.3
2.
2.1
2.2
2.3
2.4
3.
Assets
Loans to banks
Loans to customers
Securities
Liabilities
Due to banks
Due to customers
Securities issued
Other accounts
Guarantees and
commitments
Italy
95
11.6 Temporal distribution of assets and liabilities
Defined maturity
Over 1 years
Up to 5 years
Over
3 months
On
Up to
up to
demand 3 months 12 months
751,490 956,564
256,324
Fixed
rate
338,451
Index
rate
532,132
Fixed
rate
176,188
29
5,060
201,800
4,867
2,543
60,456
39,894
0
348,501
9,475
0
25,649
1,074
0
274,125
35,802
27,454
142,031
140,049
40,334
13,633
351,068
127,625
6,951
209,778
189,919
19,859
0
0
243,131
136,792
0
84
135,159
132,237
2,922
0
0
1,706
744,644
0
0
535,180
535,133
47
0
0
1,015
156,753
0
0
779
779
0
0
154,956
0
33,666
0
0
0
0
0
0
0
6,714
1,549
209,464
1,018
33,666
Items/Residual maturity
1. Assets
1.1 Refinanceable
Treasury Notes
1
12
1.2 Loans to banks
29,484
67,293
1.3 Loans to customers
612,124 847,795
1.4 Bonds and other
debt securities
11,642
25,217
1.5 “Off-balance sheet”
transactions
98,239
16,247
2. Liabilities
1,096,317 1,017,808
2.1 Due to banks
135,854 724,045
2.2 Due to customers
956,671 129,663
2.3 Securities issued
3,792
42,540
– bonds
2,841
19,756
– certificates of deposit
951
22,784
– other securities
0
0
2.4 subordinated debt
0
0
2.5 “Off-balance sheet”
transactions
0 121,560
Over 5 years
Index Indefinite
rate maturity
Total
315,533
129,772 3,456,454
0
55,352
15,203 119,583
114,569 2,485,019
0
422,529
0 373,971
123 3,537,171
123 987,647
0 1,093,369
0 927,228
0 880,665
0
46,563
0
0
0 154,956
0
373,971
11.7 Assets and Liabilities in foreign currency
a) Assets
1. Loans to banks
2. loans to customers
3. Securities
4. equity investments
5. other accounts
b) Liabilities
1. due to banks
2. due to customers
4. other accounts
31/12/2001
510,104
36,471
465,960
4,539
2,756
378
22,902
404,512
4,337
2,756
596
553,211
544,592
8,619
0
0
11.8 Securitisation transactions
On 31/12/2001 there were no securitisation transactions.
96
31/12/2000
435,103
525,865
518,879
6,986
0
0
SECTION 12 – MANAGEMENT AND BROKERAGE ON BEHALF OF
THIRD PARTIES
12.1 Securities dealing
a) Purchases:
1. controlled
2. non controlled
b) Sales:
1. controlled
2. non controlled
31/12/2001
31/12/2000
81,033
0
9,158
0
2,840
0
5,055
7
31/12/2001
31/12/2000
0
72,174
471
0
0
216
31/12/2001
2,472,341
444,759
2,027,582
2,413,946
31/12/2000
2,000,999
294,220
1,706,779
1,731,874
749,405
287,570
12.2 Asset management
1. Securities issued by the bank which draws up the
balance sheet
2. other securities
Commission income
12.3 Custody and administration of securities
a) Deposited securities of third parties
1. securities issued by the bank
2. other securities
b) Securities of third parties deposited c/o third parties
c) Investment and trading securities deposited
c/o third parties
Securities in custody and administration are posted at their nominal value.
12.4 Collection of credits on behalf of third parties: write-downs on assets
and liabilities
The credits of third parties for which the Bank has been given responsibility
for collection in connection with portfolio transactions, are posted to the balance sheet according to the settlement date. This has implied applying the following write-downs to the entries:
a) Write-downs for “assets”:
1. Current accounts
2. Central portfolio
3. Cash
4. Other accounts
b) Write-downs for “liabilities”:
1. Current accounts
2. Transfer of bills and documents
3. Other accounts
31/12/2001
574,080
128,495
287,740
3,621
154,224
597,191
0
597,191
0
31/12/2000
562,351
109,884
309,811
1,672
140,983
582,156
0
582,156
0
31/12/2001
430,203
166,988
18,927
357
31/12/2000
430,741
151,415
32,258
3,096
12.5 Other transactions
“Under reserve” collectable bills
“Post collection” bills
Total counter-value of external assets managed
GPM offer from 1/1 to 31/12/2001
97
PART C –
I NFORMATION ON
THE P ROFIT AND
L OSS A CCOUNT
SECTION 1 - INTEREST
1.1 Composition of item 10 “Interest income and similar revenues”
a) on loans to banks
of which:
– on loans to central banks
b) on loans to customers
of which:
– on deposits received in administration
c) on debt securities
d) other interest incomes
e) Positive balance of differentials on hedging transactions
Total
31/12/2001
6,846
31/12/2000
7,546
870
129,881
735
106,459
0
18,393
13
0
155,133
0
12,734
0
0
126,739
The interest on loans to customers comprises default interest amounting to
494 thousand Euro (409 thousand Euro in 2000).
1.2 Composition of item 20 “Interest income and similar revenues”
a) on due to banks
b) on due to customers
c) on securities issued
of which:
– on certificates of deposit
d) on deposits received in administration
e) on subordinate debt
f) Negative balance of differentials on hedging transactions
Total
31/12/2001
14,843
22,110
42,574
31/12/2000
15,028
14,876
34,083
1,920
127
2,249
1,609
83,512
3,607
134
1,321
2,044
67,486
Interest income and similar revenues and interest expense and similar
charges accrued on the loans and deposits of the group respectively amount
to 655,096.00 Euro and 568,662.00 Euro.
1.3 Detail of item 10 "interest income and similar"
a) On assets in foreign currency
31/12/2001
17,247
31/12/2000
16,492
1.4 Detail of item 20 “Interest expense and similar charges”
a) On liabilities in foreign currency
98
31/12/2001
10,429
31/12/2000
13,762
Composition of item 30 “Dividends and other income”
Company
Group companies:
Immobiliare Servizi spa
Claris Factor spa
Claris Broker spa
Claris Vita spa
Veneto Ireland Financial Service Ltd.
31/12/2001
31/12/2000
279
514
0
43
40,787
6,999
322
516
6
0
0
4,150
89
88
19
257
16
180
454
2
63
7
0
96
36
7
220
33
17
21
1
0
4
17
0
308
75
1
84
40
14
0
32
145
413
2
32
7
14
0
0
0
0
29
16
0
2
1
3
0
10
0
0
1
Various other companies
Total
305
50,938
537
6,376
Full tax credit on dividends
Total
11,425
62,363
1,251
7,627
Other equity investments:
Arca Merchant spa
Arca spa
Arca Vita spa
Atene srl
Central Leasing Bank - Italease spa
Banca Piccolo Credito Valtellinese scarl
Banca Popolare di Milano scarl
Banca Popolare di Vicenza scarl
Centrosim spa
Factorit spa
ICCREA Holding spa
Ifil spa
Ipi spa
Istituto Centrale delle Banche popolari italiane Milano spa
Italmobiliare spa
Ludova Banka Bratislava A.S.
Magyarorszagi Volksbank Rt Budapest
Volksbank Cz
Mediocredito Trentino – Alto Adige spa
Società Interbancaria per l’Automazione SIA spa
Servizi Interbancari spa
Rinascente spa
Sofipa spa
Telecom Italia spa
T.i.m.spa
Unione Fiduciaria spa
During the period an extraordinary dividend was collected by Claris Vita spa.
This dividend of 40,787,183.00 Euro had a full tax credit for 9,655,567.00 Euro
and a limited tax credit of 13,427,879.00 Euro, which permitted a minor provision in the quantification of taxes for the same amount.
99
SECTION 2 - COMMISSIONS
Commission income and expense refer to the services carried out and
received by the Bank during the implementation of its activities, in connection both with customers and corresponding banks.
2.1 Composition of item 40 “Commission income”
a) Guarantees issued
b) Collection and payment services
c) Management, brokerage and advisory services:
1. Security dealing
2. Currency dealing
3. Asset management
3.1) individual
3.2) collective
4. Custody and administration of securities
5. Deposit bank
6. Placement of securities
7. Acceptance of trading instructions
8. Advisory assets
9. distribution of third party services
1) asset management:
a) individual
b) collective
2) insurance products
3) other products
d) collection and payment services
e) servicing for securitisation transactions
f) Tax collection services
g) Other services
Total
31/12/2001
1,168
0
31/12/2000
923
0
418
739
676
632
0
0
601
0
28
1,210
0
0
0
495
0
113
3,934
0
471
0
0
0
3,355
0
0
42,884
50,874
0
0
0
0
3,102
0
0
45,622
55,497
31/12/2001
31/12/2000
0
28
471
0
0
0
0
0
0
499
0
0
0
0
2.2 Composition of item 40 “Commission income”
Distribution channels for products and services
a) at own kiosks
1. Asset management
3. Third party products and services
b) Offer not at head office
1. Asset management
3. Third party products and services
Total
100
2.3 Composition of item 50 "commission debts"
31/12/2001
a) guarantees received
0
b) derivatives on loans
0
c) Management, brokerage and advisory services:
1. Security dealing
641
2. Door-to-door selling of securities, products and services
3. Asset management
1) own portfolio
0
2) third party portfolio
0
4. Custody and administration of securities
0
6. offer away from head office of securities, products
and services
1,677
1,149
e) other services
10,156
Total
13,623
31/12/2000
0
0
773
0
0
0
773
1,203
4,172
6,921
SECTION 3 – PROFIT AND LOSSES ON FINANCIAL TRANSACTIONS
3.1 Composition of item 60 “Profit/Losses on financial transactions”
2001
2000
Item/Transactions
A1. Revaluations
A2. Write-downs
B. Other profits (losses)
Totals
on securities
59
0
-6,618
-373
8,286
7,336
1,727
6,963
1.
2.
3.
4.
-437
2,468
-4,498
4,194
Government securities
Other debt securities
Capital securities
Derivative contracts on securities
2001
2000
2001
on currencies
xxx
xxx
xxx
xxx
2,125
3,012
2,125
3,012
0
0
1
1
2000
2001
Other
2000
Totals
0
-0
-262
-262
59
-6,618
10,412
3,853
0
-373
10,087
9,714
154
640
1,592
4,577
SECTION 4 – ADMINISTRATIVE COSTS
4.1 Average number of employees per category
a) senior managers
b) management officers
c) remaining staff
Total
31/12/2001
15
236
616
867
31/12/2000 average 2001
6
14
107
216
668
594
781
824
101
Composition of item 80 “administrative costs”
a) Payroll costs
b) Other administrative costs
of which:
– Telephone and postage
– Property and furniture maintenance
– Equipment and machine maintenance
– Lease payments on property
– Rental payments on
electronic machinery
– Supervision and escort of securities
– Transport and travel
– Consultant fees
– Printing and stationery
– Electricity, heating and water system
– Advertising and representation
– Legal and court costs
– Electronic processing carried out
with third parties
– Credit information and searches
– Donations
– Site cleaning
– Indirect taxes
– Other costs
– Interbank Deposit Protection
Fund Assistance
Total
31/12/2001
44,190
35,918
31/12/2000
42,346
30,125
1,473
276
1,747
2,206
1,700
130
1,766
2,925
1,205
733
642
1,269
902
1,115
5,774
727
1,105
470
524
584
806
1,128
2,662
757
7,890
871
370
625
687
4,759
2,634
7,291
930
252
452
616
4,354
1,671
13
2
80,108
72,471
SECTION 5 – WRITE-DOWNS, WRITE-BACKS AND PROVISIONS
5.1 Composition of item 120 “write-downs of loans and provisions for
guarantees and commitments”
a) write-downs of loans
of which:
– lump sum write-downs for country risk
0
– other lump sum write-downs
8,263
b) provisions for guarantees and commitments
of which:
– lump sum provisions for country risk
0
– other lump sum provisions
0
Total
102
31/12/2001
13,831
31/12/2000
10,269
0
4,493
0
0
0
0
13,831
10,269
Distribution of write-downs of loans:
non-performing loans to customers:
losses
write-downs
watch-list loans to customers:
specific write-downs
lump sum write-downs
other performing loans:
lump sum write-downs
Total
31/12/2001
31/12/2000
62
3,440
1,804
3,971
2,066
156
0
492
8,107
13,831
4,002
10,269
Write-downs for 3.440 million Euro are due to the specific write-downs
recorded at the end of the period for the purpose of bringing loans back to
their presumed realisation value, for 10.329 million Euro for lump sum writedowns distributed between watchlist loans and performing loans, and 0.620
million Euro of effective losses recorded to show requirements of certainty
and determinability stipulated by the tax regulations (art. 66 TUIR).
Composition of item 90 “write-downs of intangible and tangible fixed
assets”
31/12/2001
31/12/2000
Intangible fixed assets:
Rental premises restructuring costs amortisation
Software amortisation
Other multi-year costs
846
212
1,146
415
303
1,383
Tangible fixed assets:
Property amortisation
Furniture amortisation
Total
1,097
2,621
5,922
678
2,513
5,292
Composition of item 100 “provisions for risks and charges”
Provisions
31/12/2001
3,615
31/12/2000
1,549
Composition of item 130 “write-backs from loans and provisions for guarantees and commitments”
Write-backs are composed of:
Reimbursements of loans amortised in previous periods
Default interest collections
Write-backs from write-downs from previous periods
Total
31/12/2001
1,189
35
573
1,797
31/12/2000
936
11
624
1,571
103
Composition of item 140 “provisions to credit risk reserves”
Default interest credit risks
31/12/2001
494
31/12/2000
409
Composition of item 150 “write-downs of financial investments”
Write-downs of investment securities
Permanent write-downs of equity investments in
Group companies
31/12/2001
0
31/12/2000
22
38,218
0
The above-mentioned write-down refers to the write-down of the equity
investments of “Claris Vita Spa” carried out during the period to take into
account the permanent loss incurred by the subsidiary further to the distribution of the profits carried over from previous periods.
Composition of item 160 “write-backs from financial investments”
Write-backs from investment securities
31/12/2001
279
31/12/2000
0
Composition of item 210 “change in the reserve for general banking risks”
Provisions to reserve for general banking risks
31/12/2001
6,714
31/12/2000
5,165
31/12/2001
-9,946
1,133
28
-8,785
31/12/2000
-20,171
2,873
63
-17,236
Composition of item 220 “income tax for the year”
1.
2.
3.
4.
Current taxes (-)
Change in advance taxes (+/-)
Changes in deferred taxes (+/-)
Income tax for the year (-1 +/-2 +/-3)
5.702 million Euro of income taxes for the year as shown in the table above
refer to corporate income tax and 3.083 million Euro refer to regional tax on
production.
Changes in advance taxes are given as 1.133 million Euro (of which 0.578 million Euro in corporate income tax and 0.077 million Euro in regional tax on
production) for taxes cancelled in the year due to returns, 0.060 million Euro
in corporate income tax for changes in rates, and 1.848 million Euro (of which
1.305 million Euro in corporate income tax and 0.543 million Euro in regional tax on production) for advance taxes arising during the period.
Changes in deferred taxes are shown as 0.028 million Euro (of which 0.035
million Euro in corporate income tax and 0.005 million Euro in regional tax
on production) for taxes cancelled in the year due to returns, and 0.012 million Euro (of which 0.011 million Euro in corporate income tax and 0.001 million Euro in regional tax on production) for deferred taxes arising during the
period.
The minor provision for current taxes which is noted in comparison between
the two periods in the table above, is shown as already reported in the
“Composition of item 30 dividends and other revenues”, due to the restricted tax credits present in the extraordinary dividend collected by the company of the group Claris Vita Spa.
104
SECTION 6 – OTHER ITEMS OF THE PROFIT AND LOSS ACCOUNT
6.1 Composition of item 70 “other operating income”
Rental income on property
Expenses incurred against debtors
Taxes and dues reimbursed to third parties
Reimbursements of insurance premiums
Tax credits for advance revaluation on severance pay
Reimbursements of seconded personnel expenses
Other income
Total
31/12/2001
17
8,741
4,251
4
36
680
326
14,055
31/12/2000
20
7,668
3,828
3
35
537
132
12,223
6.2 Composition of item 110 “other operating expenses”
Financial lease payments
31/12/2001
0
31/12/2000
152
31/12/2001
255
785
31/12/2000
1,399
1,535
38
1,202
2,280
20
267
3,221
31/12/2001
803
900
1,703
31/12/2000
712
397
1,109
6.3 Composition of item 180 “extraordinary income”
Contingent gains
Default interest collections
Profits on disposals of:
– tangible fixed assets
– equity investments
Total
6.4 Composition of item 190 “extraordinary expenses”
Contingent losses
Losses on disposals of tangible fixed assets
Total
The contingent losses are due to:
– exemptions chargeable to the Bank on robberies endured;
– interest or commission write-downs from the previous period.
Losses on disposals of tangible fixed assets are due to disposals of assets not
entirely amortised and no longer economically useable. These also include
the “discount” share relating to the Smart campaign on the sale of motorcars
to customers.
SECTION 7 – OTHER INFORMATION ON THE PROFIT AND LOSS
ACCOUNT
7.1 Breakdown of income by area
The breakdown of income by area is not such as to require a detailed analysis in this section.
105
PART D - O THER
I NFORMATION
SECTION 1 – DIRECTORS AND AUDITORS
1.1 Fees
a) directors
b) auditors
31/12/2001
310
135
31/12/2000
217
138
Fees were paid in accordance with the decisions of the Shareholders’ meeting
and the Company By-laws.
1.2 Loans and Guarantees given
a) Directors
directly:
– loans and advances
– guaranteed loans
indirectly:
b) Auditors
directly:
indirectly:
Given
Used
39,241
1,276
35,016
129
63,604
6,521
28,442
3,113
28
1,575
1
1,495
235
0
127
0
The credit lines were awarded in accordance with Art. 136 of Leg. Decree, 1
September 1993, no. 385.
SECTION 2 – PARENT COMPANY
2.1 Name
VENETO BANCA soc.coop. per azioni a r.l.
2.2 Office
Piazza G.B. Dall’Armi, 1 - Montebelluna (TV)
Drawing up of the consolidated report and accounts
According to Art. 24 of L. Decree 87/92 and in consideration of the importance of the controlled equity investments, the Bank likewise prepared, to be
integrated into the report and accounts, the consolidated report and accounts
on the same date, which is presented in a separate file and which shows a
profit and a Group portion of shareholders’ equity respectively of 41,849
thousand Euro and 378,586 thousand Euro. The balance sheet and operating
results of the consolidated report and accounts are the same as those produced in the report and accounts, where the equity investments contained in
the scope of consolidation are valued using the equity method.
pp. The Board of Directors
Chairman
Dr. Flavio Trinca
106
A NNEXES TO THE
S UPPLEMENTARY
N OTES
A)
Changes in shareholder’s equity for the years ending 31 December
2000 and 2001.
B)
Statement of the assets that still form the shareholder’s equity under
the terms of Article 10 of Law 72/83, which have been revalued
according to specific laws.
C)
List of equity investments.
D)
Cash flow statement.
E)
List of bonds convertible into shares (Art. 2, paragraph b, D.P.R.
President of the Republic’s Decree 137/75).
F)
Accounts of the subsidiaries (Art. 2429, paragraph 3, Civil Code).
G)
Accounts of the associated companies (Art. 2429, paragraph 3, Civil
Code).
107
A NNEXE A: C HANGES
IN SHAREHOLDERS ’ EQUITY AND SUBORDINATED DEBT FOR
THE PERIODS ENDING 31 D ECEMBER 2000 AND 31 D ECEMBER 2001
(IN THOUSAND EURO)
Balances as at 31 December 1999
Distribution of result for year 1999 as per resolution of the
Meeting of 29/4/2000:
* to the statutory reserve
* dividend to Shareholders
* to the extraordinary reserve
* to the Board of Directors
convertible bond loan issue
prescribed dividends
net increase in new share subscriptions
Incorporation by merger of Banca di Credito Cooperativo
del Piave e del Livenza:
* stock issue
* merger surplus
* statutory reserve
* share premium reserve
* general banking risk fund
provisions to reserve for general banking risks
net income for year 2000
Distribution of result for year 2000 as per resolution of the
Meeting of 21/4/2001:
* to the special reserve
convertible bond loan issue
* merger surplus
net increase in new share subscriptions
provisions to reserve for general banking risks
108
Share
Capital
Statutory
reserve
Extraordinary
reserve
Taxed
reserve
Law no. 823
of 19/12/73
Revaluation
reserve
Company
share
purchase
reserve
Taxed
reserve
and other
reserves
Reserve
for general
banking
risks
49,607
126,561
34,039
100
5,554
4,132
3
1,033
Special
reserve
ex art. 7
Law no. 218
of 30/7/90
1,796
Special
reserve ex
Leg. Dec.
153/999
Subordinated
debt
1,812
Net income
for the
year
Total
18,118
240,942
-1,812
-12,898
-3,001
-407
3,001
108,456
26
1
223
3,184
169
27
84
235
5,165
52,817
128,708
37,040
100
5,554
4,132
172
6,432
1,796
108,456
2,850
28,510
28,510
-2,851
-14,789
-9,400
-829
-641
9,399
829
46,500
20,248
1
169
56,427
188,155
-407
108,456
1
249
3,184
169
27
84
235
5,165
28,510
373,715
-14,789
-641
46,500
1
-169
6,714
73,065
-12,898
46,439
100
5,554
4,132
3
13,146
1,796
829
154,956
34,108
34,108
76,675
6,714
34,108
522,283
109
A NNEXE B: S TATEMENT
OF THE ASSETS THAT STILL FORM THE SHAREHOLDER ’ S
EQUITY UNDER THE TERMS OF ARTICLE 10 OF L AW 72/83, WHICH HAVE BEEN
REVALUED ACCORDING TO SPECIFIC L AWS
Real Estate
Montebelluna
Alano
Albaredo
Altivole
Asolo
Bibano di Godega S.Urbano
Caerano S. Marco
Cassola
Cavaso del Tomba
Cimadolmo
Crespano del Grappa
Crocetta del Montello
Farra di Soligo
Fonte
Francenigo
Gorgo al Monticano
Mansuè
Maser
Milan
Mogliano Veneto
Nervesa
Padua
Pederobba
Ponzano Veneto
S. Lucia di Piave
Silea
Susegana
Torri di Quartesolo
Trevignano
Treviso
Vicenza
Villorba
Volpago
Zero Branco
Total
110
Histyorical cost
* Piazza G.B. Dall’Armi, 1
* Viale Vittoria, 1
* Vicolo Balestrieri, 2
* Via Feltrina Centro, 145
* Via Don Pietro Codemo, 8
* Piazza XXIV Maggio, 12
* Via Laguna, 28B
* Via Dante, 29
* Via G. Marconi, 8/A
* Via Kennedy, 1
* Viale Venezia, 47
* Via Marconi
* Via Mazzini, 8
* Piazza S. Marco, 15
* Via Erizzo, 4
* Via S. Gallo, 7
* Via Roma, 7
* Via Dei Fracassi, 67
* Via Postumia centro
* Piazza S. Tiziano, 18
* Piazza Roma, 8
* Via della Posta 8/10
* Via Ronzinella, 172
* Piazzale Berti, 4
* Via Lisbona, 6
* Via Roma, 123
* Via Barbaro, 5
* Via F. Crispi, 5
* Via Don Minzoni, 6/B
* Via 1° Maggio, 3
* Via Roma, 12
* Via Puccini, 2
* Via N. Bixio, 1
* Viale Crispi, 95/97
* Via Roma, 121
* Via Schiavonesca Nuova, 101
* Via Noalese, 21/I
4,555,884
110,737
39,703
334,835
102,878
212,870
192,743
17,495
298,148
646,652
1,624,051
464,210
490,976
159,865
539,726
220,153
182,134
339,175
342,673
1,626,161
50,622
4,475,615
520,220
2,796,943
1,466,207
71,723
701,433
548,774
450,335
1,325,089
124,346
54,909
6,027,384
1,953,733
315,214
77,858
406,734
33,868,208
Monetary revaluation Laws
Law 2/12/75
No. 576
110,312
39,315
Law 19/3/83
No. 72
930,507
625,214
57,649
46,405
185,177
Law 30/12/91
No. 413
1,124,481
274,868
38,586
Other causes
Law 19/12/73
No. 823
Total
Description
fund
Book value
as at
31/12/2001
99,583
6,820,767
1,010,819
135,938
334,835
102,878
212,870
253,916
333,213
298,148
779,322
1,624,051
464,210
596,255
348,439
675,120
220,153
182,134
339,175
342,673
1,626,161
158,861
4,475,615
520,220
2,796,943
1,466,207
230,578
764,314
679,206
450,335
1,423,222
124,346
212,869
6,027,384
1,953,733
450,241
291,208
406,734
39,133,093
3,114,452
183,924
3,706,315
826,895
135,938
229,362
79,730
150,517
164,205
206,040
219,921
431,521
1,209,918
331,910
314,274
248,840
384,514
150,805
173,938
249,606
265,572
1,115,921
67,812
3,233,632
379,808
2,436,454
1,059,334
176,840
461,369
464,670
329,630
878,959
111,290
103,796
3,586,294
1,572,755
299,053
193,445
298,272
26,249,155
14,768
91,226
132,670
22,292
20,438
21,691
111,044
114,956
105,279
55,238
64,651
43,588
102,865
34,299
62,881
45,326
85,106
98,133
103,177
54,783
27,631
82,074
117,836
52,953
67,883
241,679
2,626,661
2,296,962
99,583
105,473
23,148
62,353
89,711
127,173
78,227
347,801
414,133
132,300
281,981
99,599
290,606
69,348
8,196
89,569
77,101
510,240
91,049
1,241,983
140,412
360,489
406,873
53,738
302,945
214,536
120,705
544,263
13,056
109,073
2,441,090
380,978
151,188
97,763
108,462
12,883,938
111
A NNEXE C: L IST
OF
E QUITY I NVESTMENTS
Description
Subsidiary companies:
Claris Assicurazioni srl - Montebelluna
Claris Factor spa - Montebelluna
Claris Broker spa - Montebelluna
Claris Vita spa - Milan
Claris Leasing spa - Treviso
Banca Italo-Romena spa - Treviso
Banca di Bergamo spa - Bergamo
Veneto Ireland Financial Services Ltd. - Dublin (Ireland)
Others:
Alpifin spa - Pordenone
Arca SGR spa - Milan
Arca Vita spa - Verona
Ass.i CRA srl - Padua
Atene srl - Vicenza
Banca Centrale per il Leasing - Italease spa - Milan
Banca Piccolo Credito Valtellinese scarl - Sondrio
Banca Popolare del Trentino scrl - Trento
Banca Popolare di Milano scrl - Milan
Banca Popolare di Vicenza scarl - Vicenza
Banca Popolare Etica s.c.a.r.l. - Padua
Centrobanca spa - Milan
Centrosim spa - Milan
Ce.S.Ve spa - Padua
Consorzio Triveneto spa - Padua
Cooperativa “L, Luzzati” fra le Banche Popolari - Rome
Elsag SuperNet spa - Genoa
Euros spa Cefor & Istinform Consulting - Rome
Factorit spa - Milan
Iccrea Holding spa - Rome
Ifil spa - Turin
Ipi spa - Turin
Istituto Centrale Banche Popolari Italiane spa - Rome
Istituto per l’enciclopedia della banca e della borsa spa - Rome
Italcementi spa - Bergamo
Italmobiliare spa - Milan
L’Udova Banka Bratislava A.S. - Bratislava (Slovak Republic)
Magyarorszagi Volksbank RT - Budapest (Hungary)
Mediocredito Trentino Alto Adige spa - Trento
Nuova Finanziaria Mediterranea spa - Bari
Rinascente spa - Rozzano (MI)
S.W.I.F.T. S.c. - Brussels
SEC Servizi scpa - Padua
Servizi Interbancari spa - Rome
Servizi Internazionali e Strutture Integrate 2000 srl - Milan
Società Interbancaria per l’Automazione SIA spa - Milan
Società per i Servizi Bancari - SSB spa - Milan
T.I.M. spa - Turin
Treviso Glocal s.c.a.r.l. - Treviso
Unione Fiduciaria spa - Milan
Veneto Sviluppo spa - Venice
Volksbank CZ A.S. - Brno (Czech Republic)
Volksbank d.d. - Zagreb (Croatia)
Volksbank Ljudska Banka D.D. - Ljubljana (Slovenia)
Total
(*)
(*)
(*)
Number of
share or quotas
Face value
in Euro
Book
value
%
interest
1
8,000
30,000
75,000,000
20,000
6,000
120,000,000
1,000
52,000.00
4,000,000.00
150,000.00
39,000,000.00
20,000,000.00
30,000,000.00
26,000,000.00
1,000,000.00
51,645.69
4,155,122.51
568,107.76
73,051,500.00
9,500,000.00
16,732,106.97
20,737,497.48
127,000,000.00
100.000
100.000
100.000
100.000
100.000
92.308
60.000
100.000
77,469
550,000
39,188
46,864
20,000
380,900
499,000
1,918
2,000,000
1,840
100
337,865
2,500
4,097
104,000
10
122
184,519
233,395
9,818
410,000
340,750
41,507
500
100,000
127,100
3,000
49
96,000
137,486,537
303,000
10
2,614,653
45,000
25,000
2,775
28,125
479,000
10,400
4,320
7,670
3,250
1,755
1,627
77,469.00
550,000.00
202,210.08
24,369.28
10,400.00
1,965,444.00
1,497,000.00
9,896.88
6,000,000.00
5,520.00
5,165.00
337,865.00
150,000.00
211,610.05
104,000.00
5,165.00
63,006.90
95,949.88
233,395.00
507,099.70
1,512,900.00
1,236,922.00
124,521.00
1,435.00
459,000.00
2,727,566.00
(**)
(**)
49,920.00
70,118,133.87
1,021,110.00
(**)
1,359,619.56
27,000.00
25,000.00
1,443.00
3,656.25
1,954,320.00
10,400.00
23,760.00
19,788.60
(**)
(**)
(**)
77,469.00
360,345.70
563,295.73
24,290.51
29,696,271.70
2,193,890.98
4,942,666.99
7,746.85
15,242,522.79
47,514.03
5,164.57
1,181,485.43
138,668.66
213,826.07
103,291.38
11,554.69
107,398.16
108,107.86
272,827.09
511,913.38
1,800,374.02
1,271,947.08
856,163.68
2,582.28
367,823.82
2,252,020.01
684,364.91
538,587.72
114,033.68
71,012,823.66
1,087,012.97
4,589.26
1,619,163.13
18,149.40
86,974.83
1,591.20
4,498.27
1,971,846.69
3,120.00
39,761.50
40,417.40
675,806.87
357,114.31
500,258.37
392,917,257.20
5.936
1.100
0.529
2.343
33.333
1.013
0.934
0.037
0.520
0.004
0.045
0.101
1.250
1.879
7.143
3.984
3.486
0.937
0.622
0.159
0.205
0.835
0.376
0.154
0.612
0.778
2.293
2.450
0.102
25.000
0.583
0.011
14.903
0.100
33.333
0.008
0.034
0.031
10.000
0.400
0.110
2.500
2.500
2.000
(*) capital increases partially paid in
(**) values expressed in foreign currency
112
113
A NNEXE D: C ASH F LOW S TATEMENT
FUNDS GENERATED AND COLLECTED (in thousands Euro)
31/12/2001
FUNDS GENERATED FROM INCOME OPERATIONS
Net profit for the period
Amortisation of intangible fixed assets
Amortisation of tangible fixed assets
Provisions for employee severance pay
Provisions for risks and charges reserve:
– Taxation reserves
– Other reserves
– Reserve for general banking risks
– Credit risk reserves
INCREASES OF FUNDS COLLECTED
Due to banks
Securities in issue
Due to customers
Subordinated debt
Third party reserves
Other liabilities
Other shareholders’ equity increases
Accrued liabilities and deferred income
DECREASES OF FUNDS INVESTED
Loans to banks
Treasury notes and similar securities
eligible for refinancing
Shares, interests and other equity securities
Total funds generated and collected
114
FUNDS USED AND INVESTED (in thousands Euro)
31/12/2000
34,108
2,205
3,717
1,630
28,510
2,100
3,191
2,193
10,545
5,431
6,714
495
20,816
3,448
5,165
408
USE OF FUNDS GENERATED FROM INCOME OPERATIONS
Allocation of income for the year 2000
– dividends to shareholders
– to the Board of Directors
Payment of employee severance pay
Use of reserves for risks and charges
– taxation reserve
Use of credit risk reserves
Other reserves
DECREASE OF FUNDS COLLECTED
Other liabilities
419,666
109,894
146,801
46,500
138
45,015
50,758
826
111,678
187,663
157,983
105,874
420
0
250
1,101
102,302
0
0
0
986,745
62,299
6,430
699,532
INCREASE OF FUNDS INVESTED
Shares, interests and other equity securities
Treasury notes and similar securities eligible
for refinancing
Other assets
Bonds and other debt securities
Loans to banks
Cash and deposits with central banks and post offices
Loans to customers
Tangible fixed assets
Intangible fixed assets
Other equity investments
Accrued income and prepaid expenses
Total funds used and invested
31/12/2001
31/12/2000
15,082
641
1,228
12,898
407
2,569
20,660
892
2,023
16,206
2,078
3,706
0
1,622
5,211
0
21,539
1,551
224,139
0
4,435
509,737
3,768
6,102
163,269
6,468
986,745
0
12,344
70,990
70,118
830
451,260
7,257
2,177
42,362
2,707
699,532
115
A NNEXE E: L IST OF B ONDS C ONVERTIBLE
P RESIDENTIAL D ECREE 137/75
INTO SHARES
A RT. 2, PARAGRAPH B,
Strating balance
Medio TAA 97/02 4,5 subord. Cv
ICCREA Holding 97/02 subord. Cv
ICCREA Holding 98/03 subord. Cv
Banca Popolare Intra 01/06 3% subord. Cv
Banca Popolare di Milano 98/08 subord. Cv
Veneto Ireland 01/07 2% subord. Cv
Total
116
Face
values
57,016.84
40,283.64
56,552.03
0.00
0.00
0.00
153,852.51
Book
values
56,788.20
39,011.48
54,694.30
0.00
0.00
0.00
150,493.98
Changes
Face
values
300,000.00
552,382.93
127,000,000.00
127,852,382.93
Book
values
300,000.00
523,809.80
127,000,000.00
127,823,809.80
Closing balances
Valuations
228.64
1,244.76
1,857.73
0.00
-17,064.75
0.00
-13,733.62
Face
values
57,016.84
40,283.64
56,552.03
300,000.00
552,382.93
127,000,000.00
128,006,235.44
Book
values
57,016.84
40,256.24
56,552.03
300,000.00
506,745.05
127,000,000.00
127,960,570.16
117
A NNEXE F: A CCOUNTS
OF THE
S UBSIDIARIES
60%
BANCA DI BERGAMO S.P.A.
Registered Office: Viale Vittorio Emanuele II, 12 - 24121 BERGAMO
Authorised Capital € 26,000.000,00 fully paid-up
Entered in the Bergamo Companies Register under no. 02348370160
Registration in the Bergamo R.E.A. under no. 290585
Tax Code and VAT Reg. no. 02348370160
ACCOUNTS AS AT 31 DECEMBER 2001 (Amounts expressed in Euro)
BALANCE SHEET
ASSETS
31/12/2001
10 Cash and deposits with central
banks and post offices
1,589,244
20 Treasury notes and similar
securities eligible for refinancing
with central banks
1,798,778
30 Loans to banks:
7,214,734
(a) on demand
4,521,244
(b) other loans
2,693,490
100,008,780
of which:
– loans on deposits received
in administration
0
securities:
3,817,283
(a) of public issuers
3,239,253
(b) of banks
of which:
own securities
0
(c) of financial companies
0
(d) of other issuers
578,030
26,000
of which:
2,078,467
– start-up costs
1,685
– goodwill
0
1,121,853
130 Other assets
1,160,230
140 Accrued income and pre-paid
expenses:
260,532
(a) accrued income
215,324
45,208
of which:
– issue discount on securities
0
Total assets
119,075,901
118
31/12/2000
396,670
614,427
56,043,265
29,933,487
26,109,778
66,378,533
0
897,717
897,717
0
0
0
0
2,654,689
16,409
0
1,244,816
4,644,600
380,284
181,897
198,387
0
133,255,001
LIABILITIES
31/12/2001
10 Due to banks:
35,117,910
(a) on demand
9,169,557
(b) term or with notice
25,948,353
20 Due to customers:
46,203,056
(a) on demand
41,951,735
4,251,321
30 Securities in issue:
1,048,996
a) bonds
0
b) certificates of deposit
1,048,996
c) other securities
0
9,959,731
60 Accrued liabilities and
eferred income:
89,311
85,873
(b) deferred income
3,438
70 Employee severance pay
171,419
80 Reserves for risks and charges:
331,884
(a) reserves for retirement
and similar obligations
0
(b) taxation reserves
183,082
(c) other reserves
148,802
59,978
120 Capital
26,000,000
130 Issue premiums
0
140 Reserves:
0
a) legal reserve
0
b) reserve for own shares or quotas
0
c) statutory reserves
0
d) other reserves
0
160 Retained losses
0
170 Profit for the period
93,616
Total liabilities
119,075,901
31/12/2000
4,161,031
2,135,251
2,025,780
24,086,472
23,662,215
424,257
807,272
0
807,272
0
2,549,487
43,734
34,889
8,845
175,910
376,064
0
167,848
208,216
0
102,000,000
129,114
1,731,006
1,335,342
0
120,933
274,731
- 2,916,223
111,134
133,255,001
119
10 Guarantees given
of which:
– acceptances
0
– other guarantees
4,515,588
20 Commitments
of which:
– for sales with repurchase
obligation
0
120
31/12/2001
4,515,588
31/12/2000
1,793,537
0
1,793,537
2,175,970
3,026,949
0
10 Interest income and similar
revenues
of which:
5,433,824
165,918
20 Interest expense and similar
charges
of which:
– Due to customers
785,874
– Securities in issue
33,037
40 Commission income
50 Commission expense
60 Trading profits
70 Other operating income
80 Administrative costs:
(a) payroll costs
of which:
2,536,857
1,787,977
525,082
116,991
– reserve for retirement
and similar charges
29,777
2,919,302
90 Write-downs of intangible
100 Provisions for risks and charges
110 Other operating expenses
120 Write-downs of loans and
provisions for guarantees
and commitments
130 Write-backs from loans and
provisions for guarantees and
commitments
140 Provisions to credit risk reserves
170 Profit before extraordinary
items and tax
180 Extraordinary income
190 Extraordinary expense
200 Extraordinary profit
220 Income tax for the year
31/12/2001
31/12/2000
7,776,719
6,479,032
3,716,202
216,961
1,026,393
508,754
367,922
33,405
918,858
172,830
-54,182
190,947
5,456,159
1,074,557
125,018
-257,780
190,931
5,107,385
2,585,584
1,873,534
547,768
125,235
37,785
2,521,801
1,140,579
111,038
0
778,549
31,832
1,376
771,608
716,606
113,243
59,978
27,466
0
207,000
22,073
10,717
11,356
124,740
93,616
244,686
30,543
1,246
29,297
162,849
111,134
121
92.308%
BANCA ITALO-ROMENA S.P.A.
Registered office: Viale Nino Bixio, 1 - 31100 TREVISO
Share capital € 32,500.000,00, € 25,000.000,00 paid-up
Registration in the Treviso R.E.A. under no. 289098
VAT Reg. no. 03673600262
Tax Code 97002540587
BALANCE SHEET
ASSETS
30 Loans to banks:
(a) on demand
12,773,808
(b) other loans
10,935,023
of which:.
in administration
0
securities:
(a) of public issuers
1,540,856
(b) of banks
67,249
of which:
own securities
0
(c) of financial companies
0
(d) of other issuers
0
of which:
– start-up costs
0
– goodwill
0
110 Subscribed capital not paid up
130 Other assets
140 Accrued income and
pre-paid expenses:
(a) accrued income
124,536
65,113
of which:
– issue discount on securities
0
Total assets
122
31/12/2001
31/12/2000
400,705
23,708,831
302,380
9,654,164
4,575,269
5,078,895
40,722,896
18,783,457
0
1,608,105
1,335,525
1,185,368
150,157
0
0
0
27,363
469,637
1,363
330,958
0
0
1,149,198
14,460,793
998,359
125,444
0
953,626
189,649
155,954
108,303
47,651
0
83,735,536
31,642,871
LIABILITIES
10 Due to banks:
(a) on demand
3,053,375
(b) term or
with notice
12,460,356
(a) on demand
18,990,313
13,559,952
deferred income:
87,389
(b) deferred income
478,370
(a) reserves for retirement and
similar obligations
0
379,784
(c) other reserves
229,431
100 Reserve for general banking
risks
120 Capital
140 Reserves
(a) legal reserve
(b) reserve for own shares or quotas
(d) other reserves
160 Retained losses
Total liabilities
31/12/2001
15,513,731
31/12/2000
5,298,176
766,485
4,531,691
32,550,265
12,750,121
6,702,139
6,047,982
2,247,843
738,819
565,759
564,176
53,132
511,044
412,467
609,215
743,519
947,466
0
373,166
574,300
542,280
32,500,000
413,166
12,911,422
1,069,698
0
0
0
2,723,994
448,272
83,735,536
0
0
0
0
3,100,312
376,318
31,642,871
123
10 Guarantees given
of which:
– acceptances
0
6,379,438
20 Commitments
of which:
obligation
0
124
31/12/2001
6,379,438
31/12/2000
2,415,378
209,809
2,205,569
9,229,750
2,476,290
0
revenues
of which:
charges
of which:
60 Trading profits
(a) payroll costs
of which:
– employee severance
pay
(b) other administrative
costs
and commitments
and commitments
items and tax
211 Changes in the reserve for
general banking risks
31/12/2001
31/12/2000
4,602,562
4,712,961
2,395,337
599,132
1,603,479
840,837
1,575,978
914,198
2,320,077
647,792
1,260,057
213,375
580,422
43,363
4,467,959
627,815
138,691
624,445
13,936
3,695,066
2,170,027
2,082,971
1,669,227
408,900
1,446,648
471,243
78,271
99,287
2,297,932
1,612,095
233,514
227,241
1,670
208,570
506,128
0
243,335
107,457
2,202,773
1,203,009
1,726,105
75,727
189,139
-113,412
206,177
494,394
15,046
479,348
-129,114
1,035,307
448,272
0
309,207
376,318
125
100%
CLARIS ASSICURAZIONI S.R.L.
Registered office: Piazza G.B. Dall’Armi, 1 - 31044 MONTEBELLUNA
Share capital € 52,000.00 fully paid-up
BALANCE SHEET
ASSETS
A) Shareholder receivables for contributions due
B) Fixed assets:
I Intangible fixed assets:
1) intangible fixed assets
2) - amortisation
I Total intangible fixed assets
II Tangible fixed assets:
1) tangible fixed assets
2) - amortisation
II Total tangible fixed assets
III Financial investments
B) Total fixed assets
C) Floating assets:
I Balance
II - Loans:
1) within 12 months
2) over 12 months
II Total loans (floating assets)
III Financial assets (trading)
IV Available funds
C) Total floating assets
D) Accrued income and pre-paid expenses
TOTAL ASSETS
126
31/12/2001
0
31/12/2000
0
146,460
-41,666
104,794
84,248
-19,220
65,028
211,422
-52,044
159,378
0
264,172
187,435
-36,847
150,588
0
215,616
0
0
195,693
300
195,993
0
1,614,670
1,810,663
500
2,075,335
307,804
248
308,052
0
2,194,096
2,502,148
240
2,718,004
LIABILITIES
A) Shareholders’ equity:
I
- Capital
II
- Share premium reserve
III - Revaluation reserve
IV - Legal reserve
V - Own shares in portfolio reserve
VI - Statutory reserves
VII - Other reserves
VIII - Retained earnings (losses)
IX - Profit (loss) for the period
A) Total shareholders’ equity
B) Reserves for risks and charges
C) Employee severance pay
D) Deposits:
1) due within 12 months
D) Total deposits
E) Accrued liabilities and deferred income
TOTAL LIABILITIES
31/12/2001
31/12/2000
52,000
51,646
4,111
2,070
(4)
4,914
61,025
5,529
8,804
45,520
99,232
0
8,345
1,994,346
1,994,346
5,631
2,075,335
2,607,422
2,607,422
3,005
2,718,004
127
A) Third party assets held in the company
B) Commitments
C) Guarantees
D) Risks
TOTAL MEMORANDUM ACCOUNTS
128
31/12/2001
0
0
0
0
0
31/12/2000
0
0
0
0
0
A) Production value
1) revenues from sales and services
5) other revenues and income
A) Total production value
B) Production costs
7) for services
8) for hire purchase and leasing
9) for staff
a) wages and salaries
b) social security charges
c) employee severance pay
e) other costs
9) Total for staff
10) amortisations and write-downs:
a) am. intangible fixed assets
b) am. tangible fixed assets
10) Total amortisations and write-downs
14) miscellaneous operating expenses
B) Total production costs
Difference between values and production costs (A - B)
C) Financial income and expenses:
16) other financial income
d) income different from previous
d4) from others
16) Total other financial income
17) interest and other financial expenses
d) from others
17) Total interest and other financial expenses
C) Total financial income and expenses
D) Total write-downs of financial assets
E) Extraordinary income and expense:
20) Income
b) other extraordinary income
20) Total income
21) Expenses
c) other extraordinary expenses
21) Total expenses
E) Total extraordinary items
Total pre-tax income (A-B+C+D+E)
22) Income tax for the year
23) Profit for the period
31/12/2001
31/12/2000
1,533,945
273
1,534,218
1,459,296
1,459,296
1,214,320
30,987
1,138,968
30,056
136,359
54,049
8,635
1,139
200,182
100,071
33,629
7,749
2,087
143,536
22,447
15,440
37,887
16,874
1,500,250
33,968
16,849
30,284
47,133
14,348
1,374,041
85,255
25,218
25,218
14,805
14,805
2,181
2,181
23,037
0
1,023
1,023
13,782
0
574
574
288
288
16,831
16,831
(16,257)
40,748
35,834
4,914
116
116
172
99,209
53,689
45,520
129
100%
CLARIS BROKER S.P.A.
Registered office: Via Serena, 63 - 31044 MONTEBELLUNA (TV)
Share capital € 150,000,00 fully paid-up
BALANCE SHEET
ASSETS
B) Fixed assets:
I Intangible:
2) - amortisation
I Total intangible fixed assets
II Tangible:
2) - amortisation
III Financial
C) Floating assets:
I Balance
II - Loans:
1) within 12 months
2) over 12 months
II Total loans
III Financial assets not classified as fixed assets
IV Available funds
Total assets
130
31/12/2001
0
31/12/2000
0
17,708
-17,708
0
17,708
-17,212
496
87,408
-47,979
39,429
0
39,429
68,751
-35,574
33,177
0
33,673
0
0
2,070,099
440,901
2,070,099
67,139
100,200
2,237,438
164,489
2,441,356
440,901
67,139
848,505
1,356,545
5,301
1,395,519
LIABILITIES
I
- Capital
II
- Share premium reserve
IV - Legal reserve
IX - Profit for the period
D) Deposits:
1) within 12 months
2) over 12 months
D) Total deposits
E) Accrued liability and deferred income
Total liabilities
31/12/2001
31/12/2000
150,000
0
0
11,202
0
0
20,832
0
5,487
187,521
0
36,212
154,937
0
0
6,251
0
0
20,576
0
277
182,041
0
29,332
2,217,319
1,184,146
0
1,184,146
0
1,395,519
2,217,319
304
2,441,356
131
1) Improper system of third party assets with us
2) Improper system of commitments
3) Improper system of risks
4) Reconciliation between civil and tax regulations
Total memorandum accounts
132
31/12/2001
5,165
0
0
0
5,165
31/12/2000
5,165
0
0
0
5,165
A) Production value
2) changes in the balance of products being
processed, semi-finished and finished products
3) changes in work in progress on order
4) increases of fixed assets for internal work
B) Production costs
7) for services
9) for staff
9) Total for staff
d) write-downs of loans included in floating
assets and available funds
14) Miscellaneous operating expenses
Differences between values and production costs (A - B)
d4) from others
17) Interest and other financial expenses
d) from others
20) Income
b) miscellaneous
20) Total income
21) Expenses
a) transfer of losses
c) miscellaneous
21) Total expenses
a) current taxes
b) deferred (advance) taxes
22) Total income tax for the year
31/12/2001
31/12/2000
530,581
336,724
0
0
0
5,887
536,468
0
0
0
0
336,724
323,348
19,100
163,766
18,642
103,614
30,936
6,776
141,326
91,239
29,137
4,038
124,414
497
13,283
3,310
11,158
0
13,780
8,578
506,132
30,336
2,067
16,535
8,977
332,334
4,390
3,430
3,430
2,512
2,512
1,003
1,003
2,427
0
218
218
2,294
0
0
0
12,434
12,434
149
231
380
380
32,383
0
465
465
11,969
18,653
26,896
0
26,896
5,487
18,376
0
18,376
277
133
100%
CLARIS FACTOR S.P.A.
Registered office: Viale della Vittoria, 1 - 31044 MONTEBELLUNA
Share capital € 4,000.000,00 fully paid-up
VAT Reg. no. 03079500264
Tax Code 02128270242
BALANCE SHEET
ASSETS
10 Cash and deposits
20 Loans to credit institutions
(a) on demand
2,196,314
(b) other loans
1,029,340
of which:
– for factoring operations
1,029,340
30 Loans to financial companies
(b) other loans
833,407
of which:
833,407
of which:
51,464,181
of which:
– start-up costs
3,179
130 Other assets
expenses
(a) accrued income
20,663
143,458
Total assets
134
31/12/2001
672
3,225,654
31/12/2000
1,598
813,115
813,115
0
0
833,407
943,483
943,483
943,483
65,525,409
55,851,502
38,896,678
4,483
7,946
2,582
11,402
558,038
12,021
606,572
164,121
221,361
0
221,361
70,323,186
58,457,598
LIABILITIES
10 Due to credit institutions
(a) on demand
55,000,000
20 Due to financial companies
0
of which:
0
30 Due to customers
8,572,559
of which:
8,572,559
40 Securities in issue
(b) other securities
0
deferred income
234,499
(b) deferred income
74,331
107,599
80 Reserves for risks and charges
485,041
120 Capital
130 Issue premiums
140 Reserves
(a) legal reserve
250,430
(d) other reserves
148,278
170 Profit (loss) for the period
Total liabilities
31/12/2001
55,000,000
31/12/2000
29,211,102
751,878
70,323,186
541,068
58,457,598
20) Commitments
31/12/2001
255,269
31/12/2000
354,254
29,211,102
0
86,539
86,539
86,539
8,572,559
5,361,686
5,361,686
5,361,686
0
15,493,707
15,493,707
157,582
205,931
308,830
1,999,016
168,681
1,830,335
127,290
485,041
401,339
401,339
508,710
4,000,000
32,279
398,708
626,127
4,131,655
32,279
239,859
91,581
148,278
135
COSTS
charges
(a) payroll costs
of which:
50 Write-downs of intangible and
tangible fixed assets
90 Loans and provisions for
guarantees and commitments
110 Extraordinary expenses
Total costs
136
31/12/2001
31/12/2000
2,125,494
229,201
1,141,919
1,636,317
219,381
1,028,414
464,761
413,216
326,561
113,417
24,783
677,158
290,001
99,326
23,889
615,198
16,865
106,992
20,259
146,307
292,892
3,000
527,134
751,878
5,195,375
273,584
3,143
451,719
541,068
4,320,192
REVENUE
revenues
of which:
40 Trading profits
50 Write-backs from loans
Total revenue
31/12/2001
31/12/2000
4,319,433
3,570,153
2,563,743
2,102,356
835,684
0
27,487
5,630
7,141
5,195,375
675,471
20
50,391
12,862
11,295
4,320,192
137
100%
CLARIS LEASING S.P.A.
Registered office: Via dei Da Prata, 14 - 31100 TREVISO
Share capital € 20,000.000,00, € 9,500.000,00 paid up
VAT Reg. no. 03598000267
Tax Code 03598000267
BALANCE SHEET
ASSETS
of which:
– assets in financial leasing
– assets awaiting financial leasing
110 Subscribed capital not paid-up
130 Other assets
140 Accrued income and pre-paid expenses
(a) accrued income
Total assets
LIABILITIES
(a) on demand
30 Due to customers
(a) on demand or with notice
60 Accrued liabilities and deferred income
(b) deferred income
80 Reserves for risks and charges
(b) taxes and dues
(c) other reserves
120 Capital
Total liabilities
20) Commitments
138
31/12/2001
2,455
2,414,845
150,673
67,372,867
59,267,649
7,996,605
10,500,000
11,674,255
103,039
73,369
29,670
92,218,134
31/12/2001
58,891,927
58,891,927
2,797,891
2,797,891
8,569,801
1,825,781
4,922
1,820,859
5,621
355,608
2
355,606
20,000,000
-228,495
92,218,134
31/12/2001
13,189,969
COSTS
10 Interest expense and similar charges
(a) payroll costs
of which:
50 Write-downs of intangible and tangible fixed assets
of which:
– on assets given in financial leasing
Total costs
REVENUE
10 Interest income and similar revenues
of which:
– rent for goods leased
100 Net loss for the year
Total revenue
31/12/2001
509,750
1,939
633,974
266,462
202,683
44,405
5,621
367,512
9,642,270
9,593,860
17,384
355,606
-136,658
11,024,265
31/12/2001
73,942
215,363
10,506,465
10,495,921
228,495
11,024,265
139
100%
CLARIS VITA S.P.A.
Registered office: Via Carnia, 26 - 20132 MILANO
Share capital € 39,000.000 fully paid-up
Entered in the Milan Companies Register under no. 08084500589
Registration in the Milan R.E.A. under no. 1295872
VAT Reg. no. 09493200159
Tax Code 08084500589
BALANCE SHEET
ASSETS
A. SHAREHOLDER RECEIVABLES FOR
SUBSCRIBED SHARE CAPITAL NOT
PAID-UP
B. INTANGIBLE ASSETS
1. Commission on acquisitions to be
amortised
a) life business
13,854,404
5. Other multi-year costs
C. INVESTMENTS
I – Land and buildings
1. Property destined for company use
III – Other financial investments
2. Shares of common investment funds
3. Bonds and other fixed-rate securities
a) listed
540,565,924
b) unlisted
9,668,928
4. Loans
a) loans with collateral
25,454
b) loans on policies
2,523,935
c) other loans
75,450
7. Miscellaneous financial investments
D. INVESTMENTS ON BEHALF OF
LIFE-INSURED CLIENTS WHO BEAR
THE RELATED RISK AND DERIVING
FROM THE MANAGEMENT OF
PENSION FUNDS
I – Investments relating to services
connected with investment funds
and market indices
II – Investments deriving from the
management of pension funds
D bisTECHNICAL RESERVES CHARGED TO
REINSURERS
II – LIFE BUSINESS
1. Mathematical reserves
224,775,633
3. Reserves for sums outstanding
3,656,583
140
31/12/2001
0
16,104,175
13,854,404
2,249,771
633,338,780
12,223,684
12,223,684
621,115,096
66,054,988
550,234,852
2,624,839
2,200,417
157,507,799
157,451,820
55,979
228,432,216
228,432,216
E.
LOANS
I – Loans, deriving from direct
insurance operations, relating to:
1. Insured persons
a) for period bonuses
23,439,269
b) for bonuses of previous periods
875,078
2. Insurance brokers
II – Loans, deriving from reinsurance
operations relating to:
1. Insurance and reinsurance
companies
14,060,207
III – Other loans
Total loans
F.
OTHER ASSET ITEMS
I - Tangible assets and securities
1. Furniture, office machinery and
internal means of transport
2. Stocks and shares registered in
public registers
3. Equipment and fittings
II - Available funds
1. Bank deposits and postal current accounts
2. Cheques and cash amounts
IV - Other assets
2. Miscellaneous assets
G. ACCRUED INCOME AND PRE-PAID
EXPENSES
1. For interest
2. For leasing rental
3. Other accrued income and pre-paid expenses
Total assets
74,374,827
46,734,110
24,314,347
22,419,763
14,060,207
13,580,510
74,374,827
10,918,881
2,344,173
1,728,280
8,241
607,652
7,647,971
7,647,152
819
926,737
926,737
11,330,057
11,263,374
1,498
65,185
1,132,006,735
141
LIABILITIES AND SHAREHOLDERS’ EQUITY
31/12/2001
A. SHAREHOLDERS’ EQUITY
44,926,063
I
– Subscribed share capital or equivalent fund
39,000,000
II – Issue premium reserve
1,066,247
III – Revaluation reserve
0
IV – Legal reserve
2,327,784
V – Statutory reserves
295,654
VI – Reserves for own shares and the controlling
company
0
VII – Other reserves
3,701,663
VIII – Retained earnings (losses)
0
IX – Profit (loss) for the period
-1,465,285
B. SUBORDINATED DEBT
13,000,000
C. TECHNICAL RESERVES
674,989,535
II – LIFE BUSINESS
674,989,535
1. Mathematical reserves
654,862,872
2. Complementary insurance premium reserves
831,403
3. Reserves for sums outstanding
8,360,398
5. Other technical reserves
10,934,862
D. TECHNICAL RESERVES WHEN THE
INVESTMENT RISK IS BORNE BY THE INSURED
AND RESERVES DERIVING FROM THE
MANAGEMENT OF PENSION FUNDS
157,507,799
I
– Reserves relating to contracts whose
services are connected with investment
funds and market indices
157,451,820
II – Reserves deriving from the
management of pension funds
55,979
E. RESERVES FOR RISKS AND CHARGES
320,102
1. Taxation reserves
150,544
2. Other provisions
169,558
F.
DEPOSITS RECEIVED FROM REINSURERS
203,619,598
G. DEPOSITS AND OTHER LIABILITIES
37,395,585
I
– Deposits, deriving from direct
insurance operations, relating to:
487,802
1. Insurance brokers
476,508
2. Current account companies
11,294
II – Deposits, deriving from reinsurance
operations, relating to:
10,061,209
1.Insurance and reinsurance companies
10,061,209
VI – Miscellaneous loans and other financial
deposits
13,424,272
VII – Employee severance pay
754,379
VIII – Other deposits
3,762,801
1. For taxes charged to insureds
35,577
2. For miscellaneous tax charges
513,520
3. To social welfare and security offices
461,007
4. Miscellaneous deposits
2,752,697
IX – Other liabilities
8,905,122
2. Commissions for premiums being collected
3,500,290
3. Miscellaneous liabilities
5,404,832
H. ACCRUED LIABILITIES AND DEFERRED INCOME
248,053
1. For interest
248,053
Total liabilities and shareholders’ equity
1,132,006,735
142
IV – Commitments
VII – Securities deposited with third parties
VIII – Other memorandum accounts
31/12/2001
35,721,000
618,490,257
1,291,142
143
COSTS
II. TECHNICAL ACCOUNT OF LIFE BUSINESS
1. PREMIUM FOR THE YEAR, NET OF
REINSURANCE TRANSFERS
a) Gross premiums calculated
133,166,380
b) (–) premiums transferred in reinsurance
44,315,187
2. INCOME FROM INVESTMENTS
b) Income deriving from other investments
34,915,744
bb) from other investments
34,915,744
c) Write-backs from write-downs of
investments
1,941,804
d) Profits on investment realisation
7,010,692
3. UNREALISED INCOME AND GAINS
RELATING TO INVESTMENTS ON
BEHALF OF INSURED PERSONS WHO
BEAR THE RISK DERIVING FROM THE
4. OTHER TECHNICAL INCOME, NET OF
5. EXPENSES RELATING TO LOSSES, NET
OF REINSURANCE TRANSFERS
a) Sums paid
68,910,486
aa) Amount before tax
85,763,708
bb) (-) Shares charged to reinsurers
16,853,222
b) Change in the reserve for sums
outstanding
-265,667
2,279,299
bb) (-)Shares charged to reinsurers
2,544,966
6. CHANGES IN MATHEMATICAL
RESERVES AND OTHER TECHNICAL
RESERVES NET OF REINSURANCE
TRANSFERS
a) Mathematical reserves
30,425,257
43,839,617
bb) (-)Shares charged to reinsurers
13,414,360
b) Complementary insurance premium
reserves
3,823
3,823
c) Other technical reserves
-42,348
-42,348
d) Technical reserves when the
investment risk is borne by the
insured and reserves deriving from
the management of pension funds
-19,415,998
-19,415,998
7. PROFIT SHARING AND ALLOWANCE,
NET OF REINSURANCE TRANSFERS
144
31/12/2001
88,851,193
43,868,240
188,808
13,041,313
68,644,819
10,970,734
0
8. OPERATING EXPENSES
a) Purchasing commissions
b) Other purchasing expenses
c) Changes in purchasing commissions
and expenses
d) Collection fees
e) Other administrative costs
f) (-) Profit sharing and commissions
received by reinsurers
9. CAPITAL AND FINANCIAL CHARGES
a) Operating expenses of investments
and interest expense
b) Write-downs of investments
c) Losses on investment realisations
10. CAPITAL AND FINANCIAL CHARGES
AND UNREALISED LOSSES RELATING
TO INVESTMENTS ON BEHALF OF
INSURED PERSONS WHO BEAR THE
RISK DERIVING FROM THE
11. OTHER TECHNICAL EXPENSES, NET OF
12. SHARE OF PROFIT OF INVESTMENTS
TRANSFERRED TO NON-TECHNICAL
ACCOUNTS (item III.4)
13. PROFIT OF LIFE BUSINESS (Item III.2)
III. NON-TECHNICAL ACCOUNT
2. PROFIT OF LIFE BUSINESS (Item II.13)
7. OTHER INCOME
8. OTHER EXPENSES
9. PROFIT FROM ORDINARY ASSETS
10. EXTRAORDINARY INCOME
11. EXTRAORDINARY EXPENSES
12. PROFIT FROM EXTRAORDINARY ASSETS
13. PRE-TAX PROFIT
14. INCOME TAX FOR THE YEAR
15. PROFIT (LOSS) FOR THE PERIOD
13,319,858
8,885,667
2,755,378
309,152
3,514,152
11,096,327
13,240,818
24,935,725
15,675,145
6,280,791
2,979,789
20,046,550
10,012,220
0
-1,980,352
-1,980,352
2,101,324
3,681,165
-3,560,193
3,894,600
1,723,306
2,171,294
-1,388,899
76,386
-1,465,285
145
100%
VENETO IRELAND FINANCIAL SERVICES LTD.
Registered office: I.F.S.C. – 1 North Wall Quay - DUBLIN 1 (Ireland)
Share capital € 1.000.000,00
Company number N° 313843
BALANCE SHEET
ASSETS
31/12/2001
0
20 Treasury notes and similar
securities eligible for refinancing
with central banks
0
30 Loans to banks:
9,172,096
(a) on demand
9,172,096
(b) other loans
0
13,000,000
of which:
in administration
0
50 Bonds and other debt securities:
296,472,053
(a) public issuers
0
(b) banks
0
of which:
own securities
0
(c) financial institutions
0
(d) other issuers
0
60 Shares, interest and other equity
securities
24,066,042
0
80 Equity investments in Group
companies
0
1,157
of which:
– start-up costs
0
– goodwill
0
40,001
120 Own shares
0
130 Other assets
11,354,073
expenses:
6,789,097
(a) accrued income
6,782,328
6,769
Total assets
360,894,519
146
31/12/2000
0
0
2,269,075
1,249,836
1,019,239
0
0
313,541,238
0
0
0
0
0
13,667,658
0
0
1,117
0
0
44,309
0
445,072
2,723,303
2,719,996
3,307
332,691,772
LIABILITIES
31/12/2001
31/12/2000
10 Due to banks:
80,833,889
101,400,022
(a) on demand
13,716
294,689
80,820,173
101,105,333
0
0
(a) on demand
0
0
0
0
127,000,000
0
(a) bonds
127,000,000
0
0
0
0
0
40 Deposits received in
administration
0
0
2,023,284
100,677,775
deferred income:
4,413,529
949,873
4,217,949
949,873
(b) deferred income
195,580
0
0
0
2,418,303
665,427
(a) reserves for retirement
and similar obligations
0
0
2,418,303
665,427
(c) other reserves
0
0
0
0
0
0
120 Capital
1,000,000
1,000,000
130 Issue premiums
0
0
140 Reserves:
127,998,675
126,108,752
(a) legal reserve
0
0
(b) reserve for own shares or
quotas
0
0
0
0
(d) other reserves
127,998,675
126,108,752
150 Revaluation reserve
0
0
15,206,839
1,889,923
Total liabilities
360,894,519
332,691,772
147
10 Guarantees given
of which:
– acceptances
20 Commitments
of which:
obligation
148
31/12/2001
0
0
0
31/12/2000
0
0
0
0
0
0
0
revenues
of which:
512,850
19,180,803
charges
of which:
0
– Securities in issue
2,533,041
30 Dividends and other
income:
(a) on shares, interests and
other equity securities
121,401
(b) on equity investments
0
(c) on equity investments
in Group companies
0
60 Trading profits
(a) payroll costs
620,952
of which:
564,653
56,299
0
– reserve for retirement
and similar charges
0
776,220
and commitments
and commitments
150 Write-downs of financial investments
items and tax
210 Changes in the reserve for
general banking risks
Interim dividend
31/12/2001
31/12/2000
19,936,000
9,212,893
0
8,844,513
5,806,712
3,533,194
0
0
121,401
22,211
22,211
0
0
0
18,163
11,731,530
0
1,397,172
0
39,035
2,156,062
0
1,106,489
41,941
37,991
3,950
0
0
1,064,548
11,527
0
0
6,989
0
0
0
0
0
0
0
0
0
0
24,555,357
136,560
0
136,560
6,705,459
0
0
0
0
2,486,403
22,205,514
6,998,675
15,206,839
0
665,536
6,039,923
4,150,000
1,889,923
149
A NNEXE G: A CCOUNTS
OF THE
A SSOCIATED C OMPANIES
33.3%
ATENE S.R.L.
Registered office: Viale Mazzini, 77/d - 36100 VICENZA
Entered in the Vicenza Companies Register under no. 02747200240
Registration in the Vicenza R.E.A. under no. 272288
Tax Code and VAT Reg. no.02747200240
BALANCE SHEET
ASSETS
a) on demand
b) other loans
80 Equity investments in Group companies
of which:
– start-up costs
– goodwill
130 Other assets
(a) accrued income
Total assets
150
31/12/2001
228
31/12/2000
64
39,127 12,746,888
0
0
0
0
120,327,324 118,777,566
64,779
0
0
1,481,194
92,664
0
0
754,938
0
0
1,549
0
121,914,201 132,372,120
LIABILITIES
10 Due to credit institutions:
(a) on demand
(b) deferred income
(a) reserves for retirement and similar obligations
(c) other reserves
120 Capital
130 Issue premiums
140 Reserves:
a) legal reserve
d) other reserves
150 Revaluation reserve
160 Retained earnings (losses)
Total liabilities
10 Guarantees given
of which:
– acceptances
20 Commitments
of which:
– for sales with repurchase obligation
31/12/2001
31/12/2000
152,897
54,494,829
67,146
0
64,557,112
76,540
385,315
0
112,882
0
0
150,314
0
0
31,200
59,371,885
0
463,728
0
0
30,987
59,371,885
6,197
2,066
0
0
0
0
6,982,539
7,039,299
0
0
0
0
271,879
717,621
121,914,201 132,372,120
31/12/2001
0
31/12/2000
0
0
0
0
0
0
0
0
0
151
COSTS
40 Administrative costs
b) other administrative costs
50 Write-downs of intangible and tangible fixed assets
Total costs
Total at balance
152
31/12/2001
3,425,150
1,049
31/12/2000
697,754
2,618
129,819
27,885
1
152,932
3,736,836
271,879
4,008,715
80,245
51,875
1,490
461,110
1,295,092
717,620
2,012,712
REVENUE
10 Interest income and similar revenues
20 Dividends and other income
c) on equity investments in Group companies
Total revenue
31/12/2001
300,049
31/12/2000
1,156,865
3,708,666
0
0
4,008,715
855,842
0
5
2,012,712
153
NUOVA FINANZIARIA MEDITERRANEA SPA
25%
Registered office: Corso Cavour, 19 - 70122 BARI
Share capital € 280,472.535,99 fully paid-up
Entered in the Companies Register under no. 22834
Registration in the Bari R.E.A. under no. 277591
Tax Code and VAT Reg. no.03820520728
BALANCE SHEET
ASSETS
31/12/2001
0
B) Fixed assets:
I
- Intangible
0
II - Tangible
0
III - Financial
1) equity investments in:
a) subsidiaries
292,232,355
Total fixed assets (B)
292,232,355
C) Floating assets:
I
- Balance
0
II - Loans:
1,279,725
2) to subsidiaries
1,205,250
5) to miscellaneous
- to inland revenue for corporate income
tax and regional tax on production payments
74,475
III - Financial assets
0
IV - Available funds:
1) bank deposits BPB guarantee deposit
178,094
3) cash holdings and securities
83
Total available funds
178,177
Total assets and floating assets (C)
1,457,902
0
Total assets
293,690,257
154
LIABILITIES
I
- Capital
IV - Legal reserve
Total shareholders’ equity (A)
B) Reserves for risks and charges:
2) for taxes
D) Deposits:
3) due to banks
6) due to suppliers
13) other deposits
– miscellaneous (Stock exchange contract tax)
– to auditors
Total deposits (D)
Total liabilities
31/12/2001
280,472,536
3,571,605
1,347,536
285,391,677
49,481
0
7,311,738
791,686
145,675
142,463
3,213
8,249,099
0
293,690,257
155
A) Production value:
– provision of services
5) other revenue and income
Total production value
B) Production costs:
6) for raw materials, subsidies, consumables, and
goods
– Material and tests for training courses
7) for services
– Commission expenses
– Insurance
– Electricity costs
– Postage, telegraph, telex and shipment costs
– Telephone costs
– Administrative, legal and notary fees
– Fees to third parties for courses and event
organisation
– CEO and Board of Directors’ fees
– Board of Auditors’ fees
– Account audit fees
– Costs of preparing rooms for exhibitions
– Meetings, seminars and professional training
services
– Advertising
– Project advertising
– Company entities and employees travel and
transfers
– Services for event realisation (design, directing,
management equipment and artists fees)
– Vehicle operating costs
– Travel, food and accommodation costs
– Miscellaneous services
– Registered office lease payments
– Lease payments for meetings
9) for staff
c) presumed employee severance pay
e) other costs
– B.P.Bari payroll costs
10) amortisations and write-downs
a) am. of intangible fixed assets
b) am. of tangible fixed assets
14) Miscellaneous operating expenses
– Printing and stationery
– Associated contributions
– Representation costs
– Miscellaneous general costs
– Miscellaneous taxes and dues
Total production costs
Difference between values and production costs (A-B)
156
31/12/2001
1,814,819
632
1,815,451
34,404
1,315,930
0
783
2,962
6,905
18,235
43,438
51,559
103,284
10,927
5,423
149,437
132,182
5,132
259,261
28,717
321,068
2,284
164,656
9,677
59,044
23,584
35,460
348,362
66,855
17,235
4,759
259,513
11,875
8,545
3,330
23,462
5,566
11,175
1,211
3,446
2,064
1,793,077
22,374
C)
Financial income and expenses:
15) income from equity investments
a) from subsidiaries
– interest income on current bank accounts
– income on swap operations
17) interest and other financial expense
– Miscellaneous interest expense
– Commissions and bank expenses
Total financial income and expenses
20) income
– Contingent gains
21) expenses
– Contingent losses
– Losses on AIBA equity investments
Total extraordinary items
Pre-tax income
23) Profit (loss) for the period
1,205,250
1,205,250
175,550
172,071
3,479
-3,035
2,784
251
1,377,765
1,057
1,057
-4,179
3,921
258
-3,122
1,397,017
-49,481
1,347,536
157
SERVIZI INTERNAZIONALI E STRUTTURE INTEGRATE 2000 S.R.L. 33.33%
Registered office: Via Andrea Doria, 31 - 20124 MILANO
Entered in the Milan Companies Register under no. 02629300365
Registration in the Milan R.E.A. under no. 1613221
VAT Reg. no. 13291210154
Tax code 02629300365
BALANCE SHEET
ASSETS
B) Fixed assets:
I
2) - amortisation
I
Total intangible fixed assets
II Tangible fixed assets:
2) - amortisation
III Financial investments
C) Floating assets:
I
Balance
II - Loans:
1) within 12 months
2) over 12 months
II Total loans
III Financial assets not classified as fixed assets
IV Available funds
Total assets
158
31/12/2001
0
31/12/2000
0
85,227
-28,440
56,787
78,512
-12,571
65,941
28,784
-8,381
20,403
0
77,190
23,638
-3,421
20,217
0
86,158
0
0
10,210
18,301
28,511
0
42,217
70,728
72,961
220,879
20,251
18,224
38,475
0
159,302
197,777
28,558
312,493
LIABILITIES
I
- Capital
II - Share premium reserve
IV - Legal reserve
D) Deposits:
1) within 12 months
D) Total deposits
31/12/2001
31/12/2000
75,000
0
0
0
0
0
185,925
-41,305
-260,190
-40,570
0
18,990
75,000
0
0
0
0
0
0
0
-41,305
33,695
0
8,609
62,876
62,876
179,583
220,879
97,964
97,964
172,225
312,493
159
MEMORANDUM ACCOUNTS
I) Guarantees given
II) Other memorandum accounts – risks - commitments
c) Other memorandum accounts
Total other memorandum accounts – risks – commitments
Total memorandum accounts
160
31/12/2001
0
0
4,390
4,390
4,390
31/12/2000
0
0
4,390
4,390
4,390
A) Production value
B) Production costs
7) for services
9) for staff
9) Total for staff
14) miscellaneous operating expenses
Differences between values and production costs (A - B)
d4) from others
17) Interest and other financial expenses
d) from others
E) Extraordinary income and expenses:
20) Income
b) other income
20) Total income
31/12/2001
31/12/2000
640,107
0
640,107
493,215
21,541
514,756
269,841
199,196
205,154
46,685
430,267
30,681
11,990
472,938
342,522
34,955
8,609
386,086
10,001
10,828
20,829
17,594
980,398
-340,291
8,657
7,335
15,992
9,249
663,166
-148,410
5,813
5,813
3,113
3,113
1,620
1,620
4,193
0
875
875
2,238
0
85,940
85,940
85,940
-250,158
10,032
-260,190
115,296
115,296
115,296
-30,876
10,429
-41,305
161
BOARD OF AUDITORS’
REPORT
163
B OARD OF A UDITORS ’
R EPORT
The draft accounts as at 31 December 2001, communicated for your approval
and made available as under the terms of the law, have been drawn up in
compliance with the provisions of L. Decree no. 87 of 27 January 1992 on the
annual and consolidated accounts of the banks and the implementing instructions issued in these matters by the Bank of Italy.
This is composed of the statement of assets and liabilities, the profit and loss
account and the notes to accounts and is enclosed together with the prescribed Board of Directors’ report on operations.
The profit and loss account closed with a net profit of 34,108,067.16 Euro
which can be broken down as follows:
(values in Euro)
Ordinary operating profit
Extraordinary operating profit
General banking risk reserve share
Total profit before income tax
49,030,334
576,935
-6,713,940
42,893,329
-8,785,262
34,108,067
The operating results can likewise be compared via the difference between
the asset and liability items of the balance sheet broken down as follows:
(values in Euro)
Total assets
To be deducted:
• Deposits and reserves
• Share capital
• Reserves
Total at balance
3,695,403,615
3,341,222,589
73,064,580
247,008,379
3,661,295,548
34,108,067
3,695,403,615
The memorandum accounts are composed of:
(values in Euro)
Guarantees given
Commitments
Total
152,742,237
25,270,711
178,012,948
The notes to the accounts, written in compliance with the system required by
the Regulatory Body, contains appropriate information on the accounting
principles and criteria followed in drawing up the balance sheet and provides
detailed analyses on the individual balance sheet items and the profit and
loss account exhaustively integrating the financial highlights indicated in the
above-mentioned documents.
The report on operations, after a reminder note on the strategic plan relating
to the three-year period 2002-2004 and to the main objectives achieved dur-
165
ing the previous period, carries out an in-depth examination of the international and national economic scenario and the operating area of Veneto Banca
and emphasises the development strategies and organisational phases established prior to their attainment. It therefore analyses management performance in the various operating sectors and provides the other relevant information as stipulated in L. Decree 87/92, including significant events occurring after the end of the period and the operating outlook for the current year.
As regards our control and regulatory activities, we inform you that during
the previous period we systematically participated in the meetings of the
Board of Directors and the Executive Committee and, occasionally, those of
the financial committee. Likewise we maintained constant relations with the
General Management and held meetings with the managers of the areas predominantly involved in the Board of Auditors inspections and with the company responsible for the audits of the annual and consolidated accounts.
Furthermore, we carried out administrative and accounting controls as provided for by article 2403 of the Civil Code focussing in particular on the
development of the positions of non-performing loans.
These controls allow us to ascertain the reliability of the content of company
accounts and accounting entries and the correspondance of the qualification
and quantification of the balance sheet items and the profit and loss account,
focussing on the accounting results whose accounting methods are such as to
enable a connection with the accounts in compliance with the provisions of L.
Decree 87/92 mentioned above.
Consequently, we can assure you that the accounts for the year 2001 provide
and true and accurate representation of the financial position and operating
results of your bank, as it is drawn up in compliance with the accounting
principles required by law and the regulations issuing from the Bank of Italy,
as well as in compliance with the generally accepted accounting principles.
Among its more significant items, we consider that the following can be stated:
• Loans: are valued according to the presumed realisation value, determined
on an analytical basis and with the criteria indicated in the accompanying
notes;
• Investment securities: are valued at cost or, if listed, the lesser of the cost
and the average quotation price referred to in the last six months;
• Trading securities: are valued at the lesser of the cost, determined according to the LIFO method at intervals on an annual basis and the market
price determined using the criteria indicated in the accompanying notes;
• Equity investments: are valued at cost or at a value corresponding to that
of previous write-downs or revaluations. In the case of confirmed permanent losses of value, the resulting write-down was operated in compliance
with the obligation imposed by article 18 of L. Decree 87/92. It should also
be noted that the reserve for risks and charges indicated in item 80 of the
liabilities statement receives a provision of 3,165,000.00 Euro specifically
destined to cover possible losses of value that must successively appear in
the securities investments in general, and in equity investments in particular, it being difficult to assess for these securities the permanent nature or
loss and therefore to estimate with reasonable reliability the size of the subsequent write-down;
166
• Intangible fixed assets: are entered in the balance sheet, with our consent,
at purchase price. This value is adjusted by shares of amortisation adjusted at the future use potential of the fixed assets and, depending on the case,
in shares distributed over five years in accordance with art. 2426 C.C.;
• Accruals and pre-payments: were calculated on an accrual basis and the
economic correlation between costs and revenue;
• Income taxes for the year: amount to 8,785,262.00 Euro and were quantified taking into account the so-called “deferred taxation” in compliance
with the provision issued on these matters by the Bank of Italy. Their liquidation is correctly operated.
At the time of the drawing up of this report the auditing company did not
indicate events or proposals for amendments to the accounts in question. If
any events or proposals should subsequently arise we will refer to these during the general meeting.
Finally, we would point out that during the course of our checks as summarised above, there were no censurable events or conduct arising by board
members or upper management or which constituted violations of the regulations of the civil code, the company by-laws and the special legislation of
the bank and credit institutions.
We would ask for your approval to the accounts for the year 2001 as communicated to you by the Board of Directors and we would express a favourable
opinion to the distribution of profit for the period covered and, in particular,
to the distribution of an overall dividend of 15,100,013.20 Euro equal to 0.62
Euro per share, this being in compliance with the provisions of article 2433 of
the civil code and compatibile with the economic and financial situation of
your institute.
The Board of Auditors
Dr. Fanio Fanti
Dr. Bruno Sonego
Dr. Fulvio Zanatta
167
EXTERNAL AUDITORS’
REPORT
169
171
REPORT AND
RESOLUTIONS OF
THE MEETING
173
REPORT AND RESOLUTIONS OF THE MEETING
The Chairman of the Board of Directors Dr. Flavio Trinca chaired the meeting,
Secretary the Notary Dr. Paolo Talice and Scrutineers the Shareholders Mssrs
Beda Iginio, Brunetta Pietro, Curto Loris, Dalla Riva Luciano, Poloniato
Tomaso, Pontello Giuliano, Rizzardo Pietro, Saccol Guido, Spinetta Pietro and
Zaletto Silvano.
No. of shareholders present: 1,322 No. represented by proxy: 601
Total: 1,923.
The following were carried out:
• The approval of the reports of the Board of Directors, Board of Auditors
and the Accounts for 2001;
• The assignment to the company “Reconta Ernst & Young spa” of the
responsibility of the audit of the legal accounts and the consolidated
accounts for the three-year period 2002/2004;
• The determination of attendance fees to pay to the members of the Board
of Directors for the period 2002;
• The determination of the fees to pay the Statutory Auditors for the threeyear period 2002/2004;
• The reappointment of five members of the Board of Directors for the threeyear period 2002/2004;
• The appointment of the Chairman of the Board of Auditors, of two
Statutory Auditors and two Alternate Auditors for the three-year period
2002/2004;
• The reappointment of three Statutory Arbitrators and two Alternate
Arbitrators for the three-year period 2002/2004.
175
178
OPERATING REPORT ON THE
CONSOLIDATED ACCOUNTS
AS AT 31 DECEMBER 2001
179
R EPORT ON THE
C ONSOLIDATED
A CCOUNTS
INTRODUCTION
The consolidated balance sheet of the Veneto Banca group has been set out by
the Parent Company according to the accounting principles and methods laid
down by Legislative Decree 87/92 and it consolidates the assets, liabilities,
and financial results of the companies that make up the Group.
The companies consolidated with the integral method are the subsidiaries
Banca Italo-Romena spa, Banca di Bergamo spa, Claris Factor spa, Claris
Leasing spa, and Veneto Ireland Financial Services ltd. (VIFS), whose projected balance sheets closed on 31 December 2001 and being already approved by
their respective Boards of Directors will be submitted to the appropriate
shareholders’ meetings that will take place before that of Veneto Banca.
On the other hand, Atene srl, Claris Assicurazioni srl, Claris Broker spa,
Claris Vita spa, Nuova Finanziaria Mediterranea spa, and Sintesi 2000 srl
have been valued using the equity method in that, even though they are subsidiaries or despite having exercisable Parent Company voting rights greater
than one fifth, they do not carry out banking or financial activities or those
that are instrumental to the Group or have a different balance sheet structure
from that of the Parent Company and therefore are not amenable to a corresponding numerical comparison.
As well as the investments in the companies that are subject to consolidation,
there are other investments in the portfolio of the Parent Company. However
no significant influence is exercised in any of these as the interests held by the
Group are less than 20% of the share capital of the individual companies.
These investments are therefore valued at cost.
VENETO BANCA GROUP COMPOSITION
As at 31 December 2001 the Veneto Banca Group was made up of the following companies:
PARENT COMPANY:
• Veneto Banca scarl
SUBSIDIARIES MAKING UP THE BANKING GROUP:
• Banca di Bergamo spa
• Banca Italo-Romena spa
• Claris Factor spa
• Claris Leasing spa
• Veneto Ireland Financial Services Ltd. (VIFS)
SUBSIDIARIES ALSO BELONGING TO THE GROUP:
• Atene srl
• Claris Assicurazioni srl
• Claris Broker spa
• Claris Vita spa
• Nuova Finanziaria Mediterranea spa
• Servizi Internazionali e Strutture Integrate 2000 srl (Sintesi 2000)
181
FINANCIAL AND ECONOMIC PERFORMANCE OF VENETO BANCA
GROUP
The general economic situation in which the Parent Company and the other
companies included in the area of consolidation have been operating in the
2001 financial year has been illustrated in the management report of the
Parent Company.
In the course of 2001 the Veneto Banca Group realised a consolidated net
income of 41,681 million Euros, an increase of 36.4% over 2000.
The result was due to the profits from the Subsidiaries that make up the
Group, as summarised below:
(data in thousands of Euros)
Veneto Banca
Banca di Bergamo
Banca Italo-Romena
Claris Factor
Claris Leasing
Immobiliare Servizi
Veneto Ireland Financial Services
Consolidation adjustments
Total consolidated net income
31/12/2001
34,108
94
448
752
-228
–
22,205
31/12/2000
28,510
–
376
541
–
294
6,040
-15,530
41,849
5,073
30,689
An important component in the determination of the consolidated profitability is given by the consolidation adjustments:
(data in thousands of Euros)
Dividends
Write-downs of fixed assets
Write-downs of financial fixed assets
Profit (loss) from equity investments valued at net worth
Extraordinary expenses
Change in reserve for general banking risks
Income tax
Minority portion of net profit (loss) for the period
Total consolidation adjustments
(1)
(2)
(3)
31/12/2001
-59,175
-3,123
38,218
-1,765
-31
129
10,298
-81
-15,530
(1) adjustment of the devaluation of the investment in Claris Vita spa
(2) missing amortisation in the year 2000 of the positive consolidation differences of the Banca
Italo-Romena spa
(3) Profit (loss) of the Banca Italo-Romena of interest to the Banca comerciala Romana
Following these results, and due to other asset changes, the net equity of the
Group as at 31 December 2002 amounted to 546,428 million Euros.
182
VENETO BANCA GROUP COMPANIES
In order to complete what is set out in the individual balance sheet, there follows a brief illustration of the managerial progress of the Companies that
make up the Group.
V ENETO B ANCA
Parent Company
Sector of activities:
Operational office:
banking
Piazza G.B. Dall’Armi, 1 - 31044 Montebelluna (TV)
thousands of Euros
Total assets
3,695,404
Share capital
73,065
Shareholders’ equity (excluding the year’s results)
488,175
Net profit for the year
34,108
Number of employees
867
2001 was a particularly important year for Veneto Banca which pursued its
policy of expansion by increasing the network of outlets, which had reached
82 by the end of the year, and by increasing the investments in companies that
are strategically important for its development.
The acquisition of Claris Vita [Claris Life], of the majority holding of the share
capital of Banca di Bergamo, of 25% of the share capital of Nuova Finanziaria
Mediterranea, and the establishment and start-up of Claris Leasing are all
typical examples.
The work-force grew by 86, reaching 867 by the end of the year.
Moreover a number of operations were implemented, both technical and
organisational, with the objective of optimising the service to the customer, of
reducing the operational costs, and of increasing the level of managerial efficiency.
Particularly important in this respect was the process of integration with the
Banca di Bergamo which involved the entire organisational structure.
Overall the corporate results were very positive. Total deposits increased significantly reaching 4,566 million Euros with an increase of 11.4% over 2000.
Direct deposits went up from 1,764 to 2,021 million Euros, an overall increase
of 14.6%.
Indirect deposits stood at 2,545 million Euros, compared with 2,336 of the
year before, an increase of 9%. This increase depended exclusively on the
increase in the volume of deposits administered, up by 47%, which partially
compensated for the fall in managed savings, which fell by 11.8%.
Commitments to customers increased in the course of 2001 by more than
25.8%, reaching 2,485 million Euros.
The loan quality remains at levels that are more than satisfactory. Compared
with the year before, there was an improvement both in the level of concentration, which remains decidedly contained, and the incidence of bad debt
which, net of default interest, fell from 1.07% to 0.94%.
183
In the financial markets the Bank essentially operated with a view to containing the overall risks, by aiming a large part of its activities at the financing of the development of general and extraordinary operations.
In its entirety the securities portfolio exceeded 483 million Euros, showing an
increase of 108% over the previous year.
In terms of profits, the financial year closed with a net income, including the
allocation to the reserve for general banking risks and to the reserve for risks
and charges, of 44.4 million Euros against 32.2 million Euros for 2000, recording an increase of over 26%.
Particularly positive was the contribution of the net interest income which
went from 66.9 million Euros in 2000 to 134 million Euros. This result can be
attributed to the general activities, above all due to the increase in the assets,
and to the contribution from dividends which were also positively influenced
by positions of an extraordinary nature.
The particularly critical operational environment did however have a negative influence on the revenue from services: both the profits from financial
operations and the revenue from services of a managerial nature reflected the
lower profitability of managed savings as a result of the poor performance of
the financial markets.
Management costs, finally, increased by 10.5%.
Particularly significant in this regard was the increase in other costs, which
were up by 19.2%, above all following the investments made in the “innovative channels” project and the investments in data systems.
The incorporation of Property Services which took place during the course of
the year led on the other hand to a reduction in rents of over 14%.
The ROE, calculated on the overall net return of the allocations to the reserve
for general banking risks and to the reserve for risks and charges, was 13.3%.
B ANCA
DI
B ERGAMO
Sector of activity:
Operational head office:
Percentage investment
banking
Via Vittorio Emanuele II, 12 - 24121 Bergamo
60%
thousands of Euros
Total assets
119,076
Share capital
26,000
26,000
Net profit for the year
94
Number of employees
57
The Company in question entered the Veneto Banca Group on 24 July 2001,
following the acquisition by the Group Leader of a holding equal to 60% of
the share capital. 2001 was therefore a particularly important year because,
apart from the change in the company structure, a substantial organisational
revision and a significant commercial development were started.
The reorganisation process involved all levels of the company, including the
central and peripheral areas. The Bank has been equipped with a slim-line
structure almost exclusively oriented to commercial activity, with a minimum
number of human resources allocated to head office, by delegating all activi-
184
ties of an administrative and monitoring type to the Parent Company.
Entry into the Group however led to the replacement of the information system. This was carried out in a short space of time with a particular effort
being made by all the personnel involved.
2001 was also characterised by the opening of 5 new outlets bringing the total
number of branches to 12. The territorial expansion was essentially aimed at
strengthening the operating presence in the region and the prospect of
achieving a higher profile within the Lombardy area.
The workforce was increased by 20, reaching a total of 57 persons by the end
of the year. This increase was mainly due to the above-mentioned strengthening of the distribution network.
Following the above-mentioned operations, the Banca di Bergamo saw a
strong revival in its activities in 2001.
Both the commitments to customers and deposits recorded more than satisfactory rates of increase. While the former increased by more than 51%, the
latter increased by 90%.
Indirect deposits also increased, closing the year with a change of more than
22% mainly thanks to the administrative component.
The strong dynamic of loans, although accompanied by a considerable
increase in deposits, has led to a commitments/deposits ratio of 212%, in line
with the characteristics of young banks that are growing fast.
The incidence of non-performing loans out of the total of commitments has
been kept at very low levels (0.3%).
The 2001 financial year closed with a net profit of 94 thousand Euros, down
by 15.5% compared with the previous year.
The net interest income grew by 13.1% from 6 to 6.8 million Euros.
This increase can mainly be attributed to the general activity, above all thanks
to the considerable increase in brokerage volumes, which grew mainly in the
last part of the year, after the change in the company structure.
It is noted that, with the reduction in the share capital, resources have been
lost involving over 77 million Euros which, being replaced by burdensome
funding, has led to a contraction in the financial margin.
The margin from services, despite the poor performance of the financial markets which froze activities on managed savings, has remained substantially
unchanged.
Taking the above into consideration, the income from banking activities has
increased by 11.4%, reaching 7.6 million Euros.
The demanding restructuring operations and above all the company expansion that have taken place over the year have added to the operating costs
that have grown overall by 6.8%.
The personnel costs on the other hand have fallen by 1.9% because of the
replacement of older members of the staff with younger persons, with the
average work-force staying at the same levels as 2000 (39 persons).
The new recruitment was mainly completed in the last part of the year, with
185
very little effect on the costs for the period.
The ratio of operating costs to income from banking activities (cost/ income) is
slightly improved, reaching a value of 71.5%, against the previous 74.5%.
The increase in the write-downs can be attributed to the opening of the new
branches that led to the costs over several years starting to be set against the
profit and loss account.
The general profits fell compared with last year by 15.2% and have as recorded also led to a fall in net profits of 15.5%.
B ANCA I TALO -R OMENA
Sector of activity:
Percentage of investment
banking
Viale Nino Bixio, 1 – 31100 Treviso
92.308%
thousands of Euros
Total assets
83,736
Share capital
32,500
– of which paid up
18,500
16,927
Net profit for the financial year
448
Number of employees
64
In the month of April 2001 the share capital of the Banca Italo-Romena went
from 12.9 to 32.5 million Euros. The increase was fully underwritten by the
Parent Company which had therefore increased its holding to 92.3%. The
operation enabled the strengthening of the assets of the subsidiary that will
be able in this way to make the expected investments.
In the course of the 2001 financial year, the company started putting into practice the strategic plans that had been set out by the Group Leader.
A second corporate restructuring was started which involved on the one
hand the transfer of the corporate and operational head office from Milan to
Treviso and, on the other hand, giving up direct operations in terms of both
borrowing and lending on the domestic market. This process enabled the
company to be relaunched, firming up the possibility of a full development
of the synergies with Veneto Banca, particularly in terms of containing management costs.
The enlargement and the strengthening of the operational structure of the
company have however involved considerable investment in man-power and
equipment but at the same time have encouraged operational growth.
Currently the Bank has three branches in Rumania: in Bucharest and
Timisoara since March, and in Arad since November. All these locations are
in the main industrial regions of the country.
The first results of this clear reversal of the trend are already visible in the
data for the year end which shows an expanding asset position.
The growth recorded in volumes in fact mainly reflects the operations of the
Rumanian branches in that the activity of the Italian head office is concentrating on the management of loans to existing customers, carrying out functions based on service and support.
186
In 2001 the dynamic of the volume of banking activities in the Rumanian
branches showed an increase in the commitments to customers of 20 million
Euros, equal to 206.6%, and an increase in funding of 19.9 million Euros, corresponding to a growth of 157.2% over 2000.
Moreover the economic situation has shown a positive result. In fact the
financial year closed with a net profit of 448 thousand Euros, caused by various factors sometimes with conflicting effects.
The good performance of the Rumanian branches which reached the breakeven point a few months after opening, thanks to the development of the
assets already mentioned and the high margins on market rates, played a significant part in reaching the above-mentioned result, and enabled a fair proportion of the high administrative costs to be offset. These costs came to more
than 90% of the total revenue.
The final result was however adversely affected by the on-going costs for the
initial restructuring, extraordinary current accounts connected with giving
up the Milan office, direct devaluations of the loans, and precautionary allocations to the tax reserve, to the reserve for risks and charges, and to the
reserve for general banking risks.
Against the above, the company has however been able to benefit from the
new provisions of the Regulatory Body in terms of “countries at risk”, that
has enabled use to be made of what had been allocated previously for that
purpose.
C LARIS FACTOR
Sector of activity:
factoring
Viale della Vittoria, 1 – 31044 Montebelluna (TV)
100%
thousands of Euros
Total assets
70,323
Share capital
4,000
4,431
752
Number of employees
7
The company operates in the factoring sector with the objective of providing,
mainly to customers of the Parent Company, a complementary service in
addition to the traditional banking products and services.
2001 saw steady development throughout the various areas of activity.
Loans to customers increased by 12.5% on an annual basis, which also
applied to the progressive turnover which even though lower than expected
was equal to 172.5 million Euros, an increase of 17.9% over the year before.
The sales network of the Parent Company contributed to these results with an
increase both in commitments, which went from 16.5 to 23.2 million Euros,
and in turnover which grew from 48.6 to 80.6 million Euros.
In the course of the year progress was also made with a careful re-classification of the customer portfolio which enabled an improvement to be made in
the structure of the company assets with the consequent reduction in the
average exposure to the collection risk.
In terms of profits, despite a continuous trend towards the lowering of interest rates, 2001 closed positively thanks to the maintenance of an adequate
187
margin between rates of deposit and of commitment and to a careful tariff
policy that saw a rise in revenues from services.
In fact the financial margin was up on the previous period by 13.4% due to
the significant increase in interest income, coming mainly from loans to customers, which more than compensated for the increase in interest charges, in
favour of financial institutions and the Parent Company.
Revenues from services recorded an increase both in commissions from factoring and in fees for administration and recovery of investigation expenses,
at 28.4% and 13.4% respectively, bringing the factoring margin to 2.8 million
Euros, which is an increase of 16.8% over 2000.
Operating costs increased overall by 11%. In more detail, personnel costs rose
by 12.5%, mainly because of taking on one new member of staff, with the
other administrative costs averaging 10.1%. As the increase in revenues was
greater than that of costs, the gross operating result was 1.7 million Euros
which is up by more than 21.1%.
The financial year closed with a net profit of 752 thousand Euros which is an
increase of about 39% over 2000, and represents a very satisfactory result also
because most of it came from the second half of the year which was judged to
be the more critical because of the accounting of various adjustments.
C LARIS L EASING
Sector of activity:
leasing
Via dei Da Prata, 14 – 31100 Treviso
100%
thousands of Euros
Total assets
92,218
Share capital
20,000
- of which paid up
9,500
9,500
-228
Number of employees
6
The Company was constituted on 11 January 2001 with the objective of providing a leasing service to the Group and of being in tune with the activities
of the Parent Company. For reasons of a bureaucratic nature, the activity was
started a few months later.
Considering the limited period of effective activity, the results achieved in
2001 can certainly be judged to be positive, especially in view of the fact that
they exceeded the predictions set out in the industrial plan.
This is the result of a very satisfactory management, both in terms of the number of contracts set up and the amount of goods leased.
Activity was particularly lively throughout 2001. In fact a good 566 operations were completed which generated payment flows through the acquisition of property and other assets of 87.4 million Euros and advances on contracts of 9.8 million Euros.
With reference to the profitability of the company, the end of year data shows
income from banking activities of 10.3 million Euros, consisting mainly of the
item “rental income from assets in leasing” within the “other operating revenue”. The latter came to 10.5 million Euros, including the capital and interest proportions of the rents that fell due in the period.
The personnel costs came to 266 thousand Euros and refer to a labour force
made up of six employees. Subtracting the other administration costs, equal
188
to 369 thousand Euros, the gross operating result comes to 9.7 million Euros.
The adjustments to the value of fixed assets, mainly consisting of the capital
proportion of the goods in leasing, came to 9.6 million Euros while the writedowns of loans, equal to 356 thousand Euros, represent the allocation to the
reserve within the maximum limits allowed by law.
The financial period closed with a loss of 228 thousand Euros which as
already mentioned is lower than expected.
As at 31/12/2001 the asset provision was 20 million Euros through the
increase in share capital of 15 million Euros determined by the extraordinary
shareholders’ meeting held on 26 October 2001. This increase was entirely
underwritten by Veneto Banca and the 3/10 required by law paid up.
Moreover in the month of December the Parent Company completed the
operation of purchasing the 0.25% [surely 25%?] held by Claris Factor, thereby becoming the only shareholder.
V ENETO I RELAND
F INANCIAL S ERVICES
finance
IFSC, 1 North Wall Quay – Dublin 1 (Ireland)
100%
thousands of Euros
Total assets
360,895
Share capital
1,000
128,999
22,206
Number of employees
4
Since October 1999 the company has operated as the agency bank at the Centre
for International Financial Services in Dublin, with the objective of concentrating the investment banking activities of the Group in a highly specialised
and dynamic context which enables innovative financial activities to be
developed while offering at the same time a greater international visibility.
In the past year, the activities of VIFS have been based on:
• the search for value through the activity of trading in the bond markets (on
both the lending and the borrowing side), in the currency markets, and in
the stock markets, also making use of futures;
• the search for a suitable balance between quality and quantity of the trading bond portfolio, through the acquisition of “corporate” securities that are
almost exclusively Italian or European of investment grade tied to Italian
banking sub-ordinates (lower Tier II) across different economic sectors, with
the objective of obtaining an average overall spread greater than the cost of
medium term financing;
• the study, research, and construction of innovative financial products for
activities on its own behalf;
• the study, research, and construction of financial products used by other
companies in the Group.
Despite what has happened on the international financial markets, the results
of these activities have been very positive. The net profit for the period, equal
to 22.2 million Euros, mainly consisted of interest income, including dividends of 121 thousand Euros, at 14.3 million Euros and profits from financial
operations at 11.7 million Euros.
189
ATENE
finance
Viale Mazzini, 77/d – 36100 Vicenza
33.3%
(consolidated data)
Thousands of Euros
Total assets
248,078
Share capital
31
84,090
-1,679
The business of this company is the management of investments which is carried out exclusively with Palladio Finanziaria, a company operating in the
financial sector, which in turn controls Palladio Partecipazioni spa and
Palladio Sviluppo srl; the former operates in the merchant banking sector, and
the latter in that of general finance.
In the first few months of last year, Atene further increased its investment in
Palladio Finanziaria of which it now holds 98.5% of the share capital. The
operation was of crucial importance in that Palladio Finanziaria is an essential base in the North-east for consultancy activities that provide a complex of
extraordinary financial operations.
In 2001 the merchant banking activities concentrated on risk capital investments of 20.2 million Euros along with disinvestments of 5.2 million Euros.
The 2001 financial year closed with a group loss of 1,679 thousand Euros. This
result is given by the civil law balance sheet profit of Atene, equal to 272 thousand Euros, and from the consolidation of the profits of the Palladio group,
equal to 459 thousand Euros, net of consolidation write-downs of 2,410 thousand Euros.
In the overall valuation of the investment it should be born in mind that the
subsidiary Palladio Finanziaria recorded a net profit of 16.3 million Euros, up
by 248.2% compared with the year before, and that in the month of January
Palladio Partecipazioni sold its holding in the Faro company realising very
significant capital gains.
However Palladio Sviluppo which was constituted in the month of
September 2001 closed its balance sheet with a profit of 54 thousand Euros.
C LARIS
A SSICURAZIONI
Operational base:
insurance agency
Piazza G.B. Dall’Armi, 1 – 31044 Montebelluna (TV)
100%
thousands of Euros
Total assets
2,075
Share capital
52
56
5
Number of employees
6
The company operates in an insurance environment and its objective is to
promote and distribute insurance products of any form to important Italian
and foreign companies, by means of the branches of the Group companies
and through its own marketing activities, and provides all its customers with
an after sales service.
190
In 2001 the overall production was 7.9 million Euros, which is 35% up on 2000
although slightly lower than expected.
The company thereby achieved a total stock of about 14 million Euros, and
the distribution of this stock amongst the various departments confirmed the
size of the “Third Party Motor” section, which at the end of 2001 represented
more than 45% of the total, followed by the “single premium life” section
with over 25%.
The considerable volumes achieved have made Claris Assicurazioni one of
the most important agencies in the Veneto region.
Moving on to the economic results the Company closed the period more or
less breaking even.
The commission revenue although increasing was in fact almost completely
swallowed up by the costs of the organisational structure and of distribution.
The prospects for the current year reveal an increasingly important performance in broking activities carried out by itself that will lead to Claris
Assicurazioni achieving total coverage of the operating costs by next year
with the revenues generated by its activities.
C LARIS B ROKER
insurance broking
Operating head office:
Via Serena, 63 – 31044 Montebelluna (TV)
100%
thousands of Euros
Total assets
2,441
Share capital
150
182
5
Number of employees
4
The Company joined the Veneto Banca Group on 9 June 2000, and carries out
insurance broking activities mainly with the customers provided by the sales
network of the Parent Company.
The objective of the Company is to maximise the results that can be obtained
by an insurance department by using its range of products to attract the best
opportunities available on the market and to increase the loyalty of the customers of the Group, by providing a consultancy and insurance management
service capable of meeting the complex needs of the companies.
In this context the Company is concentrating its dynamic activities by making use of the co-operation of the sales organisation of the Parent Company.
Claris Broker has recently completely changed its senior management. It has
in fact appointed a new Chairman and also strengthened the quality and
quantity of the management, especially in the sales department.
In 2001 the year closed more or less breaking even.
This result is due to the combined effect of the total revenues going from 352
to 540 thousand Euros, and the simultaneous increase in total costs, which
went up from 333 to 508 thousand Euros.
191
The economic results of the period are in line with the size and nature of the
current portfolio. The development of activities in terms of both quality and
quantity expected in future periods will on the other hand certainly enable
growth in profitability.
C LARIS V ITA
Total assets
Share capital
Number of employees
life insurance
Via Carnia, 26 – 20132 Milan
100%
thousands of Euros
1,132,007
39,000
46,391
-1,465
121
During 2001 the Company has seen moments of intense change culminating
in the passing of control to Veneto Banca, which took over the management
formally on 12 April 2001.
With the acquisition of this Company, the Parent Company has launched an
important strategy of multi-channel distribution throughout the country, putting a new network of financial promoters supported by the virtual bank
alongside the existing network of agents.
The Company has been operating in a difficult general situation characterised
by the turbulence in the financial markets, which has had a negative effect on
financial and insurance operations putting the products with a bigger financial content at risk, and by the loss of the tax benefit of life policies, which has
depressed the placement of traditional annual premium products especially.
Even the specific context was characterised by problems of an organisational
type and the need for a rapid commercial repositioning. In particular the
Company has rebranded itself, taking on the new company name of Claris
Vita, has set out an ambitious development programme for the next three
years, and has launched a broad plan of operations and a process of corporate
reorganisation, aimed at strengthening some particularly critical areas and at
reviewing others, in order to exercise the widest control of the economic management of the company and a greater commercial efficiency.
2001 shows a negative economic result, due to the unfavourable performance
of the overall technical management and a financial management that was
not as dynamic as it might have been, which however is understandable in
view of the multiple difficulties that were encountered last year. All this was
in addition to the increase in operating costs resulting from the important
restructuring being carried out.
192
N UOVA
F INANZIARIA
M EDITERRANEA
Total assets
Share capital
finance
Corso Cavour, 19 – 70121 Bari
25%
thousands of Euros
293,690
280,473
284,044
1,348
The Company that was initially the property of the Popular Bank of Bari took
the name of Nuova Finanziaria Mediterranea spa during the course of 2001.
Subsequently after a suitable increase in share capital and the entry into the
company structure by Veneto Banca, with a holding of 25%, and by
Compagnia Cattolica di Assicurazioni, with a holding of 15%, the Company
acquired the entire share capital of the Nuova Banca Mediterranea spa from
the Bank of Rome.
The acquisition of this investment by Veneto Banca is part of the plan aimed
at the establishment of a banking asset in the South of Italy, which will take
the name “Banca Meridiana”. It is planned to develop the operation on two
fronts: on the one hand, the acquisition of 29 branches of the Nuova Banca
Mediterranea, located in Puglia and Basilica, regions where production facilities are being transferred by companies in the north-east, and on the other
hand, the acquisition of a Company, identified as Banca Popolare del Levante
scarl, which already has authorisation to carry out banking activities, in
which to locate these branches. The means of effecting this second phase of
the operation was a public purchase offer for all the shares in the Banca
Popolare del Levante, which was concluded successfully on 8 February 2002.
The management of the Nuova Finanziaria Mediterranea in 2001 can be
divided into two phases. In the period up to November 2001, the activity of
the provision of services in favour of the companies of the Popular Bank of
Bari Group in the sector of insurance consultancy, of training, and of the creation of integrated projects within the compass of the ex SudBroker
Consulting spa took place. Subsequently the company changed its name and
its objective to “the acquisition and management of investments and holdings
in companies and bodies of a banking extraction”.
The economic performance of the period is equal to the addition of the performances of the two activities described.
The operations carried out in the first period led to a profit, gross of taxes, of
39 thousand Euros.
The profitability from the last part of the period was however 1,358 Euros
thanks above all to the dividends from the Nuova Banca Mediterranea.
The overall profitability net of taxes was therefore 1,348 thousand Euros.
193
S INTESI 2000
services
Via Andrea Doria, 31 – 20124 Milan
33.3%
Thousands of Euros
Total assets
221
Share capital
75
-41
Loss for the period
-260
The Company, constituted with a joint contribution in collaboration with the
Popular Banks of Emilia Romagna and Sondrio, closed the 2001 financial year
with a loss of 260 thousand Euros, worse than the predictions made at the
beginning of the year, mainly due to the performance of the revenues from
the provision of services being worse than expected.
The costs were in fact maintained within the spending targets as laid down.
Considering the unexpected market difficulties, the company is adopting
immediate measures to contain costs by means of a central and peripheral
rationalisation of the organisation.
MAIN STRATEGIC AND DEVELOPMENT GUIDELINES
The approval of the new strategic three year plan came in the month of
November and represented an important moment in that it showed the
strategic change taking place: from local assets with a mainly provincial association the Group is acquiring an increasingly wide outlook also thanks to the
adoption of multi-channel growth strategies.
The Veneto Banca Group as already described in the report on the balance
sheet of the Parent Company intends having a presence, mainly with a traditional type of network, from Lombardy to Friuli, with outlets in Rumania
located in the main industrial districts.
The coverage of the entire country will however be entrusted to a network
made up of insurance agents and financial promoters, supported by the virtual bank via the web site and the call centre.
In the central and southern regions this network will also be supported by the
traditional banking structures.
From an organisational point of view, the Parent Company will carry out
functions of strategic targeting, and in particular instances will take action
directly. The member companies will however have a distinctly commercial
association, with tight central structures connected operationally and functionally to the appropriate sections of the Parent Company.
In order to maximise the efficiency of the transmission of the strategic and
managerial targeting particular guidelines have been set out.
The activity of the Group in its entirety will mainly involve private customers, companies, and local financial bodies, with the objective of meeting
the needs of the market by means of offering a range of innovative products
and services of the highest quality.
194
SIGNIFICANT POST PERIOD END EVENTS AND OUTLOOK
As described more fully in the report on the balance sheet of the Parent
Company, to which reference should be made, in the first few months of 2002
certain fundamental steps were taken to create a coverage of the traditional
type in Southern Italy.
In February the public purchase offer for the shares of the Banca Popolare del
Levante was concluded successfully.
This Institute will take over 29 branches of the Nuova Banca Mediterranea,
currently controlled by Nuova Finanziaria Mediterranea, of which Veneto
Banca holds 25% of the share capital.
With regards to the investments in Rumania, a Rumanian property company
will be constituted dedicated to the management of the local premises.
For the Board of Directors
The Chairman
Dr Flavio Trinca
195
CONSOLIDATED
FINANCIAL STATEMENTS
AT 31 DECEMBER 2001
197
S TATEMENT
OF ASSETS AND LIABILITIES (in Euro thousands)
ASSETS
10 Cash and deposits with central banks
and post offices
20 Treasury notes and similar securities
eligible for re-financing with central banks
30 Loans to banks:
(a) on demand
(b) other loans
of which:
- loans on deposits received
in administration
50 Bonds and other debt securities:
(a) public issuers
(b) banks
of which:
own securities
(c) financial companies
of which:
own securities
(d) other issuers
60 Shares, interests and other equity securities
70 Equity investments:
a) valued at net worth
b) others
80 Equity investments in Group companies:
a) valued at net worth
b) others
90 Positive consolidation differences
100 Positive net equity method differences
of which:
- start-up costs
- goodwill
150 Other assets
a) accrued income
b) pre-paid expenses
of which:
- issue discount on securities
Total assets
2000
19,563
13,439
57,151
107,731
33,813
219,804
45,497
62,234
166,164
53,640
2,564,962
784
2,000,787
646
597,428
504,299
184,576
173,442
171,287
166,692
0
224,407
0
132,322
0
15,003
0
33,998
29,413
139,197
98,818
40,379
13,804
61,235
28,201
33,034
45,176
45,176
0
282
282
0
7,015
23,611
6,010
5
0
869
2,158
3,595
3
0
118,843
150,010
27,875
45,433
124,067
15,829
25,746
2,129
13,999
1,830
0
0
3,893,985
DEPUTY CEO
CHIEF ACCOUNTANT
Armando Bressan (accountant)
198
2001
MANAGING DIRECTOR
Vincenzo Consoli (accountant)
3,039,414
LIABILITIES
10 Due to banks:
(a) on demand
(a) on demand
(a) bonds
40 Deposits received in administration
(b) deferred income
(a) reserves for retirement and
similar obligations
(c) consolidation reserve for future risks
and charges
(d) other reserves
100 Reserve for general banking risks
120 Negative consolidation differences
140 Minority interests
150 Share capital
160 Issue premiums
170 Reserves:
(a) legal reserve
(b) reserve for own shares or quotas
(d) other reserves
180 Revaluation reserves
190 Retained earnings (losses)
Total liabilities
CHAIRMAN
Dott., Flavio Trinca
2001
1,044,222
244,283
799,939
2000
650,402
12,442
637,960
1,174,540
1,018,601
155,939
953,838
825,863
127,975
928,276
880,664
47,612
0
823,860
747,878
60,488
15,494
784
135,396
15,936
10,382
5,554
646
168,412
10,247
5,457
4,790
13,637
31,068
13,409
35,080
0
14,997
0
22,592
14
16,057
0
12,488
3,698
13,147
154,956
40
12,886
73,065
165,605
79,326
22,786
0
0
56,540
4,153
6,432
108,456
40
2,121
52,817
109,150
63,999
19,777
0
0
44,222
5,554
0
41,849
5,554
109
30,689
3,893,985
3,039,414
AUDITORS
Dott. Fanio Fanti
Dott. Bruno Sonego, Dott. Fulvio Zanatta
199
G UARANTEES
10
20
AND
C OMMITMENTS
Guarantees given
of which:
- acceptances
- other guarantees
Commitments
of which:
- for sales with repurchase obligation
DEPUTY CEO
CHIEF ACCOUNTANT
Armando Bressan (accountant)
200
2001
163,637
2,569
161,068
2000
155,483
2,173
153,310
50,122
0
68,795
0
Vincenzo Consoli (accountant)
P ROFIT
AND LOSS ACCOUNT (in Euro thousands)
10
Interest income and similar revenues
of which:
- on loans to customers
136,503
- on debt securities
35,662
of which:
- due to customers
25,469
- securities in issue
42,468
30 Dividends and other revenues:
(a) from shares, interests and other
equity securities
1,495
(b) from investments
1,814
(c) from equity investments in Group companies
0
60 Trading profits
(a) payroll costs
50,249
of which:
- wages and salaries
35,367
- social security charges
9,610
- employee severance pay
1,896
- reserve for retirement and similar charges
1,638
42,431
90 Adjustments to the value of intangible
120 Write-downs of loans and provisions
130 Write-backs from loans and provisions for
guarantees and commitments
140 Provisions to loan loss reserves
150 Write-downs of financial fixed assets
160 Write-backs from financial fixed assets
170 Profit/loss from equity investments Valued at net worth
180 Profit before extraordinary items and tax
230 Change in the reserve for general banking risks
250 Minority interests
260
CHAIRMAN
Dott., Flavio Trinca
2001
186,451
2000
139,689
107,224
22,419
89,165
70,325
16,673
35,404
3,309
2,167
845
1,322
0
54,077
14,232
16,111
24,276
92,680
56,800
7,318
12,496
11,713
76,813
44,884
31,241
8,497
1,728
1,922
31,929
20,090
3,953
19
6,290
2,055
152
15,139
10,650
4,141
1,017
0
279
-1,765
50,584
2,521
1,937
584
-6,714
2,524
-81
2,825
555
22
0
448
51,958
3,726
1,127
2,599
-5,165
18,402
-301
41,849
30,689
AUDITORS
Dott. Fanio Fanti
Dott. Bruno Sonego, Dott. Fulvio Zanatta
201
N OTES
TO
CONSOLIDATED
ACCOUNTS
BALANCE SHEET CONTENTS AND FORM
The balance sheet consists of the statement of assets and liabilities, the profit
and loss account, and the integral notes, along with the Directors’ report on
the operational performance as required by Legislative Decree 87/92 that regulates, in application of EEC directives 86/635 and 89/117, the annual consolidated accounts of the banks.
The integral notes have the function of providing the illustration and analysis of the balance sheet, and contain the information laid down by the requirements of Legislative Decree 87/92, by provision no. 14 of the Bank of Italy of
16 January 1995, and by other laws. Furthermore all the complimentary indications considered necessary to give a true and correct representation are provided, even if not specifically required. Therefore the following documents
are appended to the integral notes:
A – table of the variations in the accounts of the shareholders’ equity;
B – chart of the Veneto Banca group.
The balance sheet is subject to auditing by Reconta Ernst & Young Spa following the instructions given by the shareholders’ meeting for the three-year
period 1999-2001.
AREA OF CONSOLIDATION
Apart from the Parent Company Veneto Banca, the relevant investments indicated in the appropriate table of the integral notes make up the area of consolidation.
In this section the changes affecting the boundary defining the area of consolidation are also indicated.
CONSOLIDATION PRINCIPLES
The main consolidation criteria used are as follows:
a) integral consolidation
This method consists of the integral acquisition of the aggregates of the
statement of assets and liabilities and the profit and loss account of the
subsidiaries.
After the allocation to minority interests of their share of the equity and the
economic results, the book value of the investments consolidated with this
method are set against the corresponding fraction of their net equity, as at
the date of the 1st consolidation; the balances resulting from this subtraction are entered in the items “positive/negative consolidation differences”.
The dividends distributed within the group have been cancelled and allocated to reserve, in that they are already included in the annual results of
previous years.
The dividends that have been accounted according to applicability have
been cancelled as they are already entered in the profit and loss accounts
of the companies being consolidated.
b) consolidation using the net equity method
The investments valued with the net equity method are adjusted to the fraction of the net equity relating to the Group resulting from the balance sheets
of the companies invested in at the date of the first consolidation. The
adjustment of the value of these investments on the basis of the first consolidation is entered in the items “positive/negative differences in net equity”.
The positive consolidation and net equity differences are amortised over
10 years.
202
c) consolidation procedures
All subsidiaries that carry out banking or financial activities or that are
instrumental to the Group are consolidated with the integral method.
Companies, although subsidiary, that do not carry out banking or financial
activities and are not instrumental to the Group and associate companies
in which the Group has a significant holding are attributed a value equal
to their proportion of the net equity, including the results for the period.
The prospective balance sheets as at 31 December 2001 of the consolidated
companies were made available to their respective Boards of Directors
before the approval of the consolidated balance sheet on the part of the
Board of Directors of Veneto Banca, and will be submitted for approval by
the respective shareholders’ meetings that will take place before that of the
Parent Company.
d) other consolidation operations
The most significant reciprocal debit and credit balances as at 31 December
2001 and the most important financial transactions between the companies
included in the area of consolidation have been eliminated.
The balance sheets of the consolidated companies drawn up according to
schedules that are different from those laid down for the banks have been
suitably adjusted.
In the event that the net equity that relates to the Group turns out to be
negative, a total devaluation of the investment is carried out and the proportion that is not covered by the devaluation is entered in the item
“reserve for risks and charges”.
e) table of the comparison between the net equity and the profits for the
period shown in the balance sheet of the Bank Parent Company and
those indicated in the consolidated balance sheet as at 31 December
2001.
The reconciliation between the net equity as at 31 December 2001 and the
profits for the period which closed on that date as reflected in the consolidated balance sheet and those for the Bank Parent Company is as follows:
Net equity
Net equity and results for the period, as set out in the
Balance sheet for the period of the controlling company
1. differences compared with the tax values of the
investments
– companies consolidated on a line-by-line basis
– companies valued using the net equity method
2. result for the period relating to the group of the
companies consolidated on a line-by-line basis
invested in
3. amortisation of the positive consolidation differences
– goodwill amortisation of companies
consolidated on a line-by-line basis
– goodwill amortisation of companies
consolidated using net equity
4. elision of inter-group dividends
Net equity and result of the group for the period
Net equity and result of minority interests for the period
Net equity and result as set out in the consolidated
balance sheet
Reserve for credit risks (Item 90)
Total net equity and credit risk reserves
Net profit
for the period
522,283
34,108
-7,375
-1,411
201
-1,765
23,199
23,199
-515
-515
-2,639
-2,639
-10,659
41,930
-81
533,542
12,886
546,428
3,698
550,126
41,849
41,849
203
PART A ACCOUNTING
PRINCIPLES
The balance sheet was drawn up in compliance with the current legal
requirements, with reference to the accounting principles in force in Italy, in
order to interpret these in line with the following general valuation principles:
• Consistency of valuation: the criteria are applied with consistency over the
course of time except where expressly indicated in the sections after these
integral notes.
• Prevalence of substance over form: where possible the report favours the representation of substance rather than form and the moment of completion of
the operations rather than that of drawing up contracts in order to provide
a correct representation of the financial situation.
• Continuity of the company: the balance sheet valuations were made according to the prospect of the continuity of the activities of the company, that is
with reference to forecasts about the operation of said company.
• Prudence: the profits are exclusively those realised at the date of the closure
of the period except where set out in the specific valuation criteria. Account
is also taken of the risks and losses for the year that came to light after the
closure of the period.
• Allocation: the revenues and charges are shown according to their allocation.
• Separate valuation: assets and liabilities within and outside the balance sheet
are valued separately, that is not according to a global valuation, except
where set out in the following point.
• Coherent valuation: assets and liabilities both on and off the balance sheet,
when linked together, are valued in a coherent manner, that is using homogeneous criteria.
The principles used are set out below and were agreed with the Board of
Auditors where required by the regulations.
SECTION 1 – ILLUSTRATION OF THE ACCOUNTING PRINCIPLES
1. Loans, guarantees, and commitments
Qualitative information about the credit risks
The classification of loans as abnormal performance (non-performing, watchlist, restructured, etc...) is based on the allocation criteria laid down by the
supervisory regulations.
In fact:
• Loans are classified as “non-performing” if the borrowers are in a state of
insolvency. The presumed realisation value is determined after the valuation of the assets of the borrower and the existing asset and personal guarantees.
• Loans are classified as “watchlist” when the borrowers are in a situation of
temporary difficulty, that can be resolved in a reasonable period of time.
The management of positions with this classification is entrusted to the
Legal Service which monitors the progress of the position or the return of
the exposure. The presumed realisation value of loans classified as watchlist is determined in a similar manner to non-performing loans.
• Loans are classified as “in the process of restructuring” when the party is in
debt with a number of banks and has made an application for consolidation.
204
• Loans are classified as “restructured” when they are provided by a number
of banks, which, in granting a moratorium on the payment of the debt, are
renegotiating the same at lower than market rates. The management of this
category is also entrusted to the Legal Service. These loans are valued with
the same criteria used for non-performing and watchlist positions.
• Loans to parties resident in countries that do not belong to the OECD areas
are classified as “unsecured loans to countries at risk”.
Valuation criteria of loans
The value of the loans entered on the balance sheet, including matured contractual and default interest, is the same as their presumed realisation value.
This value is obtained by subtracting from the total amount provided the estimated losses in terms of capital and interest, defined according to specific
analysis of the non-performing and watchlist positions and for restructured
loans and those in the process of restructuring, and on a lump sum basis for
the remaining items. Performing loans to customers, and items on the watchlist due to so-called “physiological risk”, have been subjected to an overall
percentage devaluation that is the same for all the positions, determined
according to past experience of losses suffered, the market sector to which the
customer belongs, the geographical location, and any other factor affecting
the positions.
The original value of the loans will be restored in subsequent years when the
reasons for the write-downs can be seen not to have materialised.
The guarantees issued are entered at the total value of the commitment taken
on.
Securities and exchange bills are entered at term price, as contractually established with the party concerned.
Commitments to provide funds to other parties and to customers are entered
at the amount to be provided.
Loans granted in a definitive manner (on payment) have been removed from
the balance sheet and the write-downs or write-backs applied to the profit
and loss account according to the difference between the amount received
and the value at which they were entered in the balance sheet.
2. “Off-balance-sheet” securities and transactions (other than on currencies)
Securities classified as investment securities, in that they are intended to be
used long-term, represent a stable investment for the Company and can be
accounted and valued at cost of purchase. After the 1999 financial year the
valuation criteria for quoted investment securities were modified in order to
get a better picture of the exact asset situation of the company in the balance
sheet.
The criteria used are as follows:
• unlisted investment securities are valued at historic cost;
• listed investment securities are valued at cost or the market price given by
the arithmetic mean of the prices over the last six months of the year
whichever is the lower. The original cost will be restored in subsequent
years when the reasons for the write-downs can be seen not to have materialised.
205
Securities not classified as investment securities are valued at cost, determined according to the LIFO [last in first out] method on an annual basis, or
the market price given as follows whichever is the lower:
• for securities traded on regulated markets, by the arithmetic mean of the
prices over the past month;
• for unlisted securities, Italian and foreign, by the presumed realisation
value obtained by aligning future financial flows with current market rates.
The original cost will be restored in subsequent years when the reasons for
the write-down can be seen not to have materialised.
“Repurchase” operations on securities, that require the recipient to sell back
the securities within a certain time, are set out as financial transactions of
deposit or commitment. The cost of the supply and the profit from the commitment, made up of the dividend warrants maturing on the securities and
the differential between the cash and term price of the same, are entered as
applicable in the financial items opened for interest.
The issue spreads have been calculated according to the dictates of article 8 of
the Legislative Decree of 27/12/1994, making the matured proportion contribute to the formation of the pre-tax profits for the period.
2.3 “Off-balance-sheet” transactions (other than on currencies)
The derivative securities are valued as follows:
a) derivative securities intended to hedge assets or liabilities or connected
with other assets or liabilities or with trading balanced in the balance
sheet:
• derivative hedging securities, in being at the date of the closure of the
period, are valued along with the assets/liabilities hedged or connected
with them;
• in the course of the year the differentials are accounted accordingly as
interest costs or income in the same way as the revenues or costs generated by the assets/liabilities hedged, or on the basis of the duration of
the contracts, in the case of connected stock market securities or generic hedging;
b) derivative securities connected with trading contracts:
• derivative securities whether or not listed on regulated markets are valued at cost or market value whichever is the lower. Only any losses foreseeable against the total of the operations in being at the date of the closure of the period are therefore debited to the profit and loss account as
losses from financial operations with “other liabilities” offset;
• in the course of the year the differentials are entered in the item “profits
(losses) from financial operations”;
c) listed and unlisted fixed asset derivative securities intended to hedge balance sheet assets or liabilities:
• listed and unlisted fixed asset derivative securities are however valued
at cost with obligation to devalue in the case of long-term deterioration
of the solvency of the other party as well as the capacity to repay the
debt on the part of the country of residence (country at risk);
• in the course of the year the differentials are entered accordingly as interest costs or income in the same way as the revenues or costs generated by
the assets/liabilities hedged, or on the basis of the duration of the contract, in the case of connected stock market securities or generic hedging;
206
d) the premiums paid or collected against the trading of options are suspended by entering them as “other assets” or “other liabilities” respectively. These premiums are debited or credited to the profit and loss
account in the event that the option is not exercised. The value of the premium for exercised options on securities is added or subtracted from the
cost or revenue of the security being bought or sold.
e) the “off-balance-sheet” operations on securities are calculated with the
same criteria as for the “trading securities”. Operations on “off-balance
sheet” securities connected together or connected with portfolio securities
are valued in a coherent manner.
2.4 Broking contracts on behalf of customers
The commissions are entered in the period when the contract is drawn up,
while the differentials on premiums are entered according to their duration.
3. Investments
According to article 18, paragraph 1, of Legislative Decree no. 87/1992,
investments are valued according to the criterion of purchase cost determined
on the basis of the purchase or underwriting price or the value attributed at
the time of conferment. Investments are devalued if losses are held to be longterm according to the next paragraph no. 2, second part, of the above-mentioned article 18.
In the event that the value entered on the balance sheet of the investments in
subsidiaries or associates is greater than the corresponding proportion of net
equity, then this is justified by the cost sustained at the moment of acquisition
by way of goodwill or as a recognition of the greater value of the assets over
the book values.
The dividends and the relative tax credit are entered in the period in which
they are collected.
4. Assets and liabilities in currencies (including “Off-balance-sheet” operations)
Operations in currencies are entered at the time of their completion.
Cash assets, liabilities, and “off-balance-sheet” operations in currencies are
converted into Euros at the exchange rates at the end of the period that for the
“in” currencies correspond to parity; the effect of this valuation is applied to
the profit and loss account.
“Off-balance-sheet” term operations are valued:
• in the case of hedging, at the exchange rate at the end of the period; the differentials between term and cash exchange rates for these operations are
entered in the profit and loss account according to the time that the interest produced by the assets or liabilities hedged is recorded;
• in the case of trading, at the corresponding term exchange rates in force at
the end of the period.
The investments in currencies are maintained at the historic rate of acquisition while the investment and trading securities in currencies are revalued or
devalued at the exchange rate at the end of the year.
The costs and revenues in currencies are shown at the exchange rate in force
at the time of entry.
207
5. Tangible fixed assets
These are entered at purchase cost, including the accessory charges incurred,
adjusted for certain assets in application of specific laws of monetary revaluation; the amount entered on the balance sheet is obtained by subtracting the
adjustments made from the book value defined in this way.
Tangible fixed assets are amortised in every period according to constant proportions on the basis of the economical/technical quotas, according to the
residual potential use of the assets. This criterion is in line with the quotas
allowed for tax purposes.
The maintenance and repair costs that do not involve an increase in the value
of the assets are debited to the profit and loss account for the period, while
those that do cause an increase are capitalised by attributing them to the specific technical fixed assets to which they refer.
6. Intangible fixed assets
These are entered at purchase cost, including accessory charges, and are
amortised systematically according to their potential use.
The cost of rebuilding premises that are not owned, used on the basis of lease
contracts, is entered under assets following the consent of the Board of
Auditors.
7. Other aspects
Other credits and debits
The other credits and debits are shown at nominal value. For the former this
means the presumed realisation value.
Accruals and prepayments
Quotes of costs and revenues, that apply to more than one period, are entered
in these items in order to comply with the principle of temporal applicability.
They are calculated for interest by taking account of the rates that govern
individual agreements, and for costs and revenues by taking account of certain elements that apply to them.
Some have been applied directly to be added to the statement of liabilities, in
that this representation is more appropriate technically.
Deposits received in administration
These represent the debt at the end of the period from third party mandators.
This debt is according to:
• nominal value for cash and bank balances credited by the mandators and
committed on their account;
• increments matured in the period and in previous periods following the
administration of these liquid assets. The increases are represented by the
difference between the revenues matured and the costs sustained by said
administration;
• reductions for drawings made by the mandators of previously credited liquid assets.
Employee termination indemnity reserve
The item reflects, net of advances, the indemnities matured in favour of personnel employed at the date of the closure of the period, determined according to Law no. 297 of 29 May 1982.
208
The reserve for taxes consists of allocations made against current and
deferred tax liabilities as well as the risk of any dispute in court.
The allocation for current taxes represents a reasonable prediction of the
charges arising out of the results for the period determined on the basis of the
tax regulations currently in force.
The deferred tax liability is given by applying the “balance sheet liability
method” laid down by IAS 12 in compliance with the specific requirements set
out by the Bank of Italy. In particular the tax reserves include the liability for
deferred taxes that originated from any temporary taxable differences that are
considered likely to apply. There is no allocation for deferred taxes against
reserve assets held in suspension of tax in that, at the present time, it is not
considered that any operations will take place that will involve such taxes. In
compliance with the requirements of the Bank of Italy, no allocation for
deferred taxes is made against the write-downs or the allocations made exclusively for tax purposes.
Any credit for advance taxes arising out of temporary deductible differences
whose recovery can reasonably be considered certain on the basis of expected future taxable revenue is entered under other assets.
Other reserves
Other reserves are allocated to meet losses on guarantees issued and on other
commitments taken on, as well as liabilities, that are certain or probable, but
whose amount or timing cannot be determined at the closure of the period or
the drawing-up of this balance sheet.
Credit risk reserve
The reserve represents the prudent coverage of loans for default interest
where there is any risk of failure to collect. The allocation provides the benefit of tax concessions.
General banking risk reserve
This reserve is intended to cover the general company risk and therefore
comes under net equity.
Subordinated debt
The value entered on the balance sheet corresponds to the nominal value of
the loan.
Inventory of consumer goods
The end of period inventories of printing, stationery items, and advertising
material are valued by applying the latest price for goods of this sort to the
remaining stock. These inventories are shown in the item “other assets”, offset financially by a reduction in “administrative costs”.
209
SECTION 2 – FISCAL WRITE-DOWNS AND ALLOCATIONS
2.1 Write-downs made exclusively in application of tax legislation
No such write-down has been made.
2.2 Allocations made exclusively in application of tax legislation
Making use of the concessions provided by article 71, paragraph 6, of
Presidential Decree no. 917 of 22 December 1986, 554 thousand Euros were
allocated to the credit risk reserve for the default interest matured in the period for which a full recovery is expected and which is summarised as follows:
Allocation to credit risk reserve
(of which 554 thousand is on default interest)
Theoretical tax charge
Net effect
Current
period
Previous
period
Total
661
213
448
3,037
1,245
1,792
3,698
1,458
2,240
The theoretical tax charge set out in the table refers to the total balance at the
end of the period and is determined as follows:
Corporate income tax:
Local production tax:
210
at the rate of 34.92%
average rate for two years 2001/2002 equal to 4.50%
PART B - N OTES TO
THE C ONSOLIDATED
B ALANCE S HEET
SECTION 1 - LOANS
1.1 Details of item 30 “loans to banks”
a)
b)
c)
d)
loans to central banks
effects of refinancing at central banks
REPOS
security lending
31/12/2001
20,492
0
2,103
0
31/12/2000
21,007
0
0
0
31/12/2001
22,522
0
0
31/12/2000
18,590
4,800
0
1.2 Details of item 40 “loans to customers”
a) effects of refinancing at central banks
b) REPOS
c) security lending
1.3 Guaranteed loans to customers
a) mortgages
b) against:
1 - cash deposits
2 - securities
3 - other
c) guaranteed by:
1 - Countries
2 - other public bodies
3 - banks
4 - other operators
Total
31/12/2001
577,106
54,105
31/12/2000
460,314
37,453
16,589
37,384
132
8,923
28,458
72
613,879
507,479
0
2,515
19,043
592,321
0
55
11,875
495,549
1,245,090
1,005,246
1.4 Non-performing loans (including default interest)
a) capital
b) interest
Total
31/12/2001
30,499
3,512
34,011
31/12/2000
23,609
3,865
27,474
31/12/2001
3,512
841
4,353
31/12/2000
3,865
583
4,448
1.5 Loans for default interest
a) non-performing loans
b) other loans
Total
211
1.6 Loan situation according to fund as at 31/12/2001 Banks
Category
A. Doubtful loans
A.1 Non-performing
A.2 Watchlist
A.3 Loans in the process
of restructuring
A.4 Restructured loans
A.5 Unsecured loans
B. Performing loans
Gross
exposure
0
0
0
0
0
0
Overall
write-downs
0
0
Net
exposure
0
0
0
0
0
0
0
0
0
0
107,731
0
107,731
1.7 Loan situation according to fund as at 31/12/2001 general customers
Category
Gross
exposure
95,640
51,024
29,153
A. Doubtful loans
A.1 Non-performing
A.2 Watchlist
A.3 Loans in the process
of restructuring
0
A.4 Restructured loans 3,905
A.5 Unsecured loans to
countries at risk
11,558
B. Performing loans
2,500,440
Overall
write-downs
20,594
17,013
2,605
0
156
Net
exposure
75,046
34,011
26,548
0
3,749
820
10,738
10,524
2,489,916
1.8a Trend of doubtful loans to Banks
NonReasons/Categories
performing
A. Initial gross exposure as
at 31/12/2000
0
0
B. Increases
0
B.1 Inflows from performing loans
0
0
B.3 Transfers from other
doubtful loan categories
0
B.4 Other increases
0
C. Decreases
0
0
C.2 Cancellations
0
C.3 Payments
0
0
C.5 Transfers to other doubtful
loan categories
0
C.6 Other decreases
0
D. Gross final exposure as
at 31/12/2001
0
0
212
Loans in
course of
Watch- restructlist
uring
Unsecured
Restruc- loans to
tured countries
loans
at risk
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,420
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,420
2,420
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1.8b Trend of doubtful loans for general customers
Loans in
course of
Watch restructlist
uring
performing
A. Initial gross exposure as
at 31/12/2000
42,982
4,644
B. Increases
21,366
B.1 Inflows from performing
loans
2,118
564
11,058
B.4 Other increases
7,626
C. Decreases
13,324
0
C.2 Cancellations
6,924
C.3 Payments
6,391
C.4 Concessions
9
C.5 Transfers to other
0
C.6 Other decreases
0
D. Final gross exposure as
at 31/12/2001
51,024
4,367
Unsecured
Restruc- loans to
tured countries
loans
at risk
13,209
0
33,348
0
0
0
4,508
0
706
17,661
0
0
31,831
826
0
0
0
0
0
0
0
691
17,404
165
62
6,119
0
0
0
0
0
0
0
0
0
706
1,309
0
0
1,309
0
0
0
6,103
6,103
0
0
0
11,058
0
0
0
0
0
0
0
29,153
0
0
0
3,905
0
11,558
0
Unsecured
Restruc- loans to
tured countries
loans
at risk
Performing
loans
1.9a Trend of overall write-downs - Banks
performing
A. Overall initial write-downs
as at 31/12/2000
0
A.1 of which for default interest 0
B. Increases
0
B.1 Write-downs
0
B.1.1 of which for default interest 0
B.2 Use of the credit
risk reserve
0
B.3 Transfers fromother
loan categories
0
B.4 Other increases
0
C. Decreases
0
C.1 Write-backs
From valuation
0
C.1.1 of which for default interest 0
collection
0
C.2.1 of which for default interest 0
C.3 Cancellations
0
C.4 Transfers to other loan
categories
0
C.5 Other decreases
0
D. Final overall adjustments
as at 31/12/2001
0
D.1 of which for default
interest
0
Loans
being
Watch restruclist
tured
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
363
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
363
0
0
0
0
0
0
0
0
0
363
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
213
1.9b Trend of overall write-downs – general customers
performing
A. Overall initial write-downs
as at 31/12/2000
15,508
A.1 of which for default
interest
762
B. Increases
6,838
B.1 Write-downs
4,059
B.1.1 of which for default
interest
107
B.2 Use of the credit
risk reserve
0
loan categories
75
B.4 Other increases
2,704
C. Decreases
5,333
C.1 Write-backs From
valuation
483
interest
74
collection
213
interest
7
C.3 Cancellations
4,637
C.4 Transfers to other loan
categories
0
C.5 Other decreases
0
D. Final overall adjustments
as at 31/12/2001
17,013
D.1 of which for default
interest
855
Loans
being
Watch restruclist
tured
Nonguaranteed
Restruc- loans to
tured countries
loans
at risk
Performing
loans
638
0
0
2,587
4,002
0
2,646
2,526
0
0
0
0
156
52
0
0
0
0
8,693
8,000
0
0
0
0
0
0
0
0
0
0
0
120
679
0
0
0
0
104
0
0
0
1,767
0
693
2,171
21
0
0
1,767
0
0
0
0
0
0
31
0
0
0
0
0
60
0
0
0
0
0
0
0
2,171
75
492
0
0
0
0
0
0
0
0
2,605
0
156
820
10,524
0
0
0
0
0
Composition of item 10 “Cash and liquid assets at central banks and post
offices”
Notes and coins
Post office current accounts
Total
31/12/2001
19,563
0
19,563
31/12/2000
13,011
428
13,439
31/12/2001
20,492
45,966
38,226
3,045
2
107,731
31/12/2000
21,007
183,875
13,076
1,843
3
219,804
Composition of item 30 “Loans to banks”
Loans to the issuing bank
Deposits at banks
Financing
Other arrangements
Total
214
Composition of item 40 “Loans to customers”
Current accounts
Import-export finance
Mortgage loans
Non-mortgage loans
Other grants
Loans for factoring operations
Other loans
Lump sum devaluations for countries at risk
Total
31/12/2001
896,172
413,796
54,945
486,771
75,025
557,761
34,011
45,698
1,603
-820
2,564,962
31/12/2000
614,155
474,770
48,347
388,422
51,271
351,501
27,474
38,890
5,957
0
2,000,787
SECTION 2 - SECURITIES
Items/Values
1. Debt securities
– listed
– unlisted
– listed
– unlisted
– listed
– unlisted
Totals
Balance sheet value
140,259
9,471
9,471
0
130,788
10,736
120,052
11,054
3,477
7,577
151,313
Market value
133,643
9,471
9,471
0
124,172
10,736
113,436
7,664
2,987
4,677
141,307
2.2 Annual variations in investment securities
A.
B.
C.
D.
Initial amounts
Increases
B1. Purchases
B2. Write-backs
B3. Transfers from trading portfolio
B4. Other variations
Decreases
C1. Sales
C2. Refunds
C3. Write-downs
of which:
– long-term devaluations
C4. Transfers to trading portfolio
C5. Other variations
Final inventories
76,701
124,317
23,528
518
100,000
271
49,705
49,109
0
0
0
0
596
151,313
215
Items/Values
1. Debt securities
– listed
– unlisted
– listed
– unlisted
– listed
– unlisted
Totals
Balance sheet value
513,895
219,842
219,842
0
294,053
109,598
184,455
18,784
18,784
0
532,679
Market value
515,706
220,040
220,040
0
295,666
110,220
185,446
18,931
18,931
0
534,637
2.4 Annual variations in trading securities
A.
B.
C.
D.
Initial amounts
Increases
B1. Purchases
- Debit securities
+ other securities
- Variable-yield capital
B2. Write-downs and revaluations
B3. Transfers from investment portfolio
Decreases
C1. Sales and refunds
- Debit securities
+ other securities
- Variable-yield capital
C2. Write-downs
C3. Transfers to investment portfolio
Final inventories
475,215
3,015,529
3,007,885
2,900,374
1,110,129
1,790,245
107,511
102
0
7,542
2,958,065
2,847,263
2,754,295
1,017,166
1,737,129
92,968
9,855
100,000
947
532,679
The investment and trading securities of the Bank are classified in the balance
sheet as follows:
– Treasury and similar securities that can
be refinanced at central banks (item 20)
– Bonds and other debt securities (item 50)
– Stocks, shares, and other variable-yield
securities (item 60)
Total
of which:
– Investment securities
– Trading securities
216
31/12/2001
31/12/2000
57,151
597,428
33,813
504,299
29,413
683,992
13,804
551,916
151,313
532,679
76,701
475,215
SECTION 3 - INVESTMENTS
3.1 Important investments
Name
Head Office
Companies included in the
consolidation
A.1 integral method
1.
Veneto Banca
Montebelluna
2.
Claris Factor spa
Montebelluna
3.
Veneto Ireland Financial
Services Ltd.
Dublin
4.
Treviso
5.
Bergamo
6.
Claris leasing spa
Treviso
A.2 proportional method
B.
Investments valued
according to
shareholders’ equity
1.
Montebelluna
2.
Claris Broker spa
Montebelluna
3.
Claris Vita spa
Milan
4.
Sintesi 2000 srl
Milan
5.
Atene srl
Vicenza
6.
Nuova Finanziaria
Mediterranea spa
Bari
C.
Other significant
investments
Investment
%
proportion availability of Consolidated
company
votes in
balance
% shareholders
sheet
invested in
meeting
values
Type
of
arrangement (1)
Net
equity
Profit
(loss)
1
1
522,283
5,183
34,108
752
A1.1
100
100
xxx
1
1
1
1
149,206
31,836
26,094
19,772
22,206
448
94
-228
A1.1
100
A1.1 92.308
A1.1
60
A1.A
100
100
92
60
100
xxx
xxx
xxx
xxx
1
1
1
8
8
62
188
44,927
-41
82,411
5
5
-1,465
-260
-1,679
A1.1
100
A1.1
100
A1.1
100
A1.1 33.33
A1.1 33.33
100
100
100
33.33
33.33
62
188
44,927
0
27,467
1
285,392
1,348
25
71,350
A.
A1.1
25
(1) Type of arrangement:
1 = control according to art. 2359 Civil Code, para. 1. n. 1 (majority of voting rights in
shareholders’ general meeting)
2 = control according to art. 2359 Civil Code, para. 1. n. 2 (dominant influence in
shareholders’ general meeting)
3 = control according to art. 23 Amalgamated Law, para. 2, n. 1 (agreements with
other share-holders)
4 = other forms of control
5 = sole administrator according to art. 26, para. 1, of the “decree”
6 = sole administrator according to art. 26, para. 2, of the “decree”
7 = joint control
8 = associate company
217
3.2 Assets and liabilities with group companies
a) Assets
1. loans to banks
2. loans to other financial institutions
b) Liabilities
1. due to banks
2. due to other financial institutions
2. commitments
31/12/2001
31/12/2000
0
0
0
0
97
0
0
0
0
0
0
0
0
0
0
0
0
0
9,754
0
0
0
0
3,118
0
0
28,949
3,933
42,305
0
3.3 Assets and liabilities with companies invested in (other than group
companies)
a) Assets
1. loans to banks
2. loans to financial institutions
b) Liabilities
1. due to banks
2. due to financial institutions
2. commitments
31/12/2001
31/12/2000
6,386
0
25,881
0
1,158
0
972
0
68,168
0
30,043
0
171
0
51,098
0
108,201
48
14
0
0
76,656
15,614
13
0
0
0
7,375
0
3,509
31/12/2001
31/12/2000
20,185
7,674
20,185
7,445
4,052
99,713
0
3,066
4,699
2,874
139,197
0
30,539
61,235
3.4 Composition of item 70 “investments”
a) in banks
1. listed
2. unlisted
b) in financial institutions
1. listed
2. unlisted
c) other
1. listed
2. unlisted
Total
218
3.5 Composition of item 80 “investments in group companies”
a) in banks
1. listed
2. unlisted
b) in financial institutions
1. listed
2. unlisted
c) other
1. listed
2. unlisted
Total
31/12/2001
31/12/2000
0
0
0
0
0
0
0
0
0
45,176
45,176
0
282
282
3.6 Annual variations in investments
3.6.1 Investments in group companies
A.
B.
C.
D.
E.
F.
Initial amounts
Increases
B1. Purchases
B2. Write-backs
B3. Revaluations
Decreases
C1. Sales
C2. Write-downs
of which: long-term devaluations
Final inventories
Total revaluations
Total write-downs
282
385,692
148,943
0
0
236,749
340,798
25,823
0
0
314,975
45,176
0
0
3.6.2 Other investments
A.
B.
C.
D.
E.
F.
Initial amounts
Increases
B1. Purchases
B2. Write-backs
B3. Revaluations
Decreases
C1. Sales
C2. Write-downs
of which: long-term devaluations
Final inventories
Total revaluations
Total write-downs
61,235
183,772
82,231
0
0
101,541
105,810
5,014
0
0
100,796
139,197
0
0
219
SECTION 4 – TANGIBLE AND INTANGIBLE FIXED ASSETS
4.1 Annual variations in tangible fixed assets
A. Initial amounts
B. Increases
B1. Purchases
B2. Write-backs
B3. Revaluations
C. Decreases
C1. Sales
C2. Write-downs:
a) amortisation
b) long-term devaluations
D. Final inventories
a) amortisation
Property
33,766
Furniture
11,666
Total
45,432
60,038
0
0
12,144
32,726
0
0
1,336
92,764
0
0
13,480
0
1,025
1,025
6,875
0
16,063
83,010
5,165
6,821
0
2,049
35,833
0
13,696
0
18,112
118,843
5,165
18,663
0
37,571
0
56,324
0
Amortisation is calculated according to the method described in the valuation
criteria, applying the quotas laid down by the current regulations.
4.2 Annual variation in intangible fixed assets
A.
B.
C.
D.
E.
F.
Initial amounts
Increases
B1. Purchases
B2. Write-backs
B3. Revaluations
Decreases
C1. Sales
C2. Write-downs:
a) amortisation
Final inventories
Total revaluations
Total write-downs:
a) amortisation
3,595
5,397
2,742
0
0
2,655
2,982
0
2,822
0
160
6,010
0
6,857
0
Intangible fixed assets are a charge over several years and, net of the amortisation applied to the accounts, amount to 6,010 million Euros, made up as follows:
Software purchase costs
Costs of rebuilding premises not owned
Other charges over several years
Total
220
754
2,660
2,596
6,010
SECTION 5 – OTHER ITEMS IN ASSETS
5.1 Composition of item 150 “other assets”
Loans to the Treasury
Outstanding and dishonoured cheques and securities
Loans through options
Derivative transactions
Security transactions to be settled in customer a/cs
Foreign transactions to be settled
Advances against suppliers’ invoices
Tax collection lists - remainders
Current account cheques suspended
Current account cheques drawn on third parties
Loans to customers for commission to be collected
Reconciliation agreement balances with subsidiaries
Items to be settled by proxy procedure
Off-balance-sheet transactions offset valuations
Other loans
Total
31/12/2001
53,723
216
3,382
4,084
712
7,197
17,234
1,217
4
230
29,177
4,600
0
7,991
331
19,912
150,010
31/12/2000
25,951
221
5,215
34,938
992
3,992
10,053
1,842
5
177
18,683
2,734
475
8,596
0
10,193
124,067
5.2 Composition of item 160 “accrued income and pre-paid expenses”
Accrued income through
– Interest income on securities
– Interest on loans to customers
– Interest income from banks
– Transaction differences on interest rate swaps
– others
Total accrued income
Pre-paid expenses on
– Other costs not relating to the period
Total pre-paid expenses
Total accrued income and pre-paid expenses
31/12/2001
31/12/2000
13,911
5,540
852
5,418
25
25,746
6,161
5,456
796
1,586
0
13,999
153
1,976
2,129
27,875
440
1,390
1,830
15,829
Accrued income and pre-paid expenses are calculated according to financial
applicability.
5.3 Write-downs of accrued income and pre-paid expenses
a) items in assets
b) items in liabilities
31/12/2001
0
0
31/12/2000
0
0
31/12/2001
0
13,000
76,012
31/12/2000
0
0
0
5.4 Distribution of subordinated assets
a) loans to banks
b) loans to customers
c) bonds and other debt securities
221
SECTION 6 - RECEIVABLES
6.1 Details of item “due to banks”
a) REPOS
b) loan of securities
31/12/2001
2,103
0
31/12/2000
0
0
31/12/2001
124,833
0
31/12/2000
111,893
0
31/12/2001
73,020
934,915
36,287
1,044,222
31/12/2000
9,245
535,112
106,045
650,402
6.2 Details of item “due to customers”
a) REPOS
b) loan of securities
Composition of item 10 “due to Banks”
Deposits
Financing
Total
Composition of items 20 “due to customers” and 30 “securities issued”
Due to customers:
– current accounts
– savings deposits
– other agreements
– factoring operations
– REPOS
Securities issued:
– bonds
– deposit certificates
– discount of commercial cards
Total
31/12/2001
31/12/2000
930,485
107,827
2,821
8,573
124,834
726,171
110,327
0
5,448
111,892
880,664
47,612
0
2,102,816
747,878
60,488
15,494
1,777,698
Composition of item 40 “deposits received in administration”
Deposits received from:
State Treasury
Veneto Sviluppo spa
Total
222
31/12/2001
106
678
784
31/12/2000
142
504
646
SECTION 7 - RESERVES
7.1 Composition of item 90 “credit risk reserves”
31/12/2001
3,189
509
3,698
Credit risk reserve for default interest
Credit risk reserve
Total
31/12/2000
3,527
626
4,153
7.2 Variations over the period in “credit risk reserves” (item 90)
A.
B.
C.
D.
Initial amounts
Increases
B1. Allocations
Decreases
C1. Drawings
Final balances
4,153
661
661
0
1,116
331
785
3,698
7.3 Composition of sub-item 80 d) “reserves for risks and charges: other
reserves”
Other reserves:
31/12/2001
1,816
358
13,883
16,057
Various reserves – social security charges
Reserves for rebuilding costs
Total
31/12/2000
1,898
480
10,110
12,488
Variations in item 80 “reserves for risks and charges”
Balance as at
31/12/2000
a) Reserves for retirement and
similar obligations
0
b) Taxation reserves
22,592
c) Consolidation reserve for
future risks and charges
0
d) Other reserves:
1 - various reserves –
social security
1,898
2 - reserves for rebuilding
costs
480
3 - reserves for risks and
charges
10,110
Total
12,488
Total reserves for risks and
charges
35,080
(Draw)
Allocations
Balance as at
31/12/2001
0
21,863
0
14,268
0
14,997
0
14
14
1,898
1,816
1,816
454
332
358
448
2,800
4,221
6,369
13,883
16,057
24,663
20,651
31,068
223
Variations in item 70 “employee severance pay”
Balance as at 31/12/2000
Drawings for indemnities met during the period
Advances made according to the law and contractual agreements
11% replacement tax on severance pay revaluation according to
Legislative Decree 168/2001
Allocation during the period
Balance as at 31/12/2001
13,409
-1,114
-685
-41
2,068
13,637
Deferred tax liability
A. Assets from advance taxes
1. Initial amount
2. Increases
2.1 Advance taxes arising during the period
2.2 Other increases
3. Decreases
3.1 Advance taxes cancelled during the period
3.2 Other decreases
4. Final amount
B. Liabilities from deferred taxes
1. Initial amount
2. Increases
2.1 Deferred taxes arising during the period
2.2 Other increases
3. Decreases
3.1 Deferred taxes cancelled during the period
3.2 Other decreases
4. Final amount
5,863
2,075
2,035
40
1,229
1,169
60
6,709
98
12
12
0
40
-40
0
70
SECTION 8 – SHARE CAPITAL, RESERVES, FUND FOR GENERAL
BANKING RISKS, AND SUBORDINATED DEBT
Composition of the shareholders’ equity and the subordinated debt
Item
item 100
item 110
item 120
item 130
item 140
item 150
item 160
item 170
Description
31/12/2001
13,147
Subordinated debt
154,956
Negative consolidation differences
40
Negative shareholders’ equity differences
0
Minority interests
12,886
Share capital
73,065
Issue premiums
165,605
Reserves:
79,326
a) legal reserve
22,786
0
0
d) other reserves
56,540
item 180 Revaluation reserves
5,554
item 190 Retained earnings
0
item 200 Profit for the period
41,849
Total shareholders’ equity
546,428
224
31/12/2000
6,432
108,456
40
0
2,121
52,817
109,150
63,999
19,777
0
0
44,222
5,554
109
30,689
379,367
The movement of the items making up the shareholders’ equity is provided
in appendix A.
Composition of item 100 “fund for general banking risks”
Fund for general banking risks
31/12/2001
13,147
31/12/2000
6,432
31/12/2001
154,956
31/12/2000
108,456
Composition of item 110 “subordinated debt”
Subordinated debt
Composition of item 120 “negative consolidation differences”
Negative consolidation differences
31/12/2001
40
31/12/2000
40
31/12/2001
12,886
31/12/2000
2,121
31/12/2001
73,065
31/12/2000
52,817
31/12/2001
165,605
31/12/2000
109,150
Composition of the item 140 “minority interests”
Minority interests
Composition of the item 150 “share capital”
Share capital
Composition of the item 160 “issue premiums”
Issue premiums
Composition of the item 170 “reserves”
a) legal reserve
b) reserve for own shares or
quotas
d) other reserves:
– extraordinary reserve
reserves from consolidation
– taxed reserve
– taxed reserve article 4 Law 823/73
– capital gain reserve from
easement granted by Law 218/90
– reserve for purchase of shares
– reserve for merger surplus
– special reserve Legal Decree 153/99
31/12/2001
22,786
31/12/2000
19,777
0
0
56,540
0
0
44,222
46,439
3,241
3
100
37,124
898
3
100
1,796
4,132
0
829
1,796
4,132
169
0
225
Composition of item 180 “revaluation reserve”
Revaluation reserve:
– Law no. 576/75
– Law no. 72/83
– Law no. 413/91
31/12/2001
5,554
31/12/2000
5,554
327
3,226
2,001
327
3,226
2,001
Composition of item 190 “retained earnings”
Retained earnings
31/12/2001
0
31/12/2000
109
31/12/2001
41,849
31/12/2000
30,689
Composition of item 200 “profit for the period”
Composition of items under assets relating to share capital
Item
Description
item 110 Capital underwritten but not paid up
item 120 Own shares or quotas
31/12/2001
0
0
31/12/2000
0
0
8.2 Capital and prudential requirements 31/12/2001
31/12/2001
A. Capital for regulatory purposes
A.1 Tier 1 capital
A.2 Tier 2 capital
A.3 Items to be deducted
A.4 Capital for regulatory purposes
B. Prudential regulatory requirements
B.1 Credit risks
B.2 Market risks
of which – trading portfolio risks
Exchange rate risks
B.2.1 3rd level subordinated loans
B.3 Other prudential requirements
B.4 Total prudential requirements
C. Risk assets and regulatory coefficients
C.1 Weighted risk assets
C.2 Tier 1 capital/weighted risk assets
C.3 Capital for regulatory purposes/
eighted risk assets
226
333,422
153,294
0
486,716
243,829
8,310
8,310
0
0
0
252,139
3,151,738
0.11
0.15
SECTION 9 – OTHER ITEMS IN LIABILITIES
9.1 Composition of item 50 “other liabilities”
Due to the Treasury
Currency spread on portfolio transactions
Various transactions to be settled
Foreign transactions to be settled in customer accounts
Items relating to treasury services
Items relating to securities service
Derivative transactions
Due for options
Sums available to customers for network discounts
Off-balance-sheet transactions offset valuations
Various other items
Total
31/12/2001
8,363
30,382
6,355
31,804
18
226
4,213
1,268
2,786
16,724
19
33,238
135,396
31/12/2000
6,106
19,805
5,783
7,464
143
100,216
10
4,187
3,150
8,343
100
13,105
168,412
9.2 Composition of item 60 “accrued liabilities and deferred income”
Accrued liabilities for
– Interest charges from agreements with customers
– Interest on REPOS
– Interest charges from agreements with banks
– Securities transactions
– Other
Total accrued liabilities
Deferred income on
– Interest income on portfolio transactions
– Commission income on signature commitments
– Commission income from factoring
– Differentials on foreign term transactions
– Other
Total accrued liabilities and deferred income
31/12/2001
31/12/2000
4,685
460
3,926
1,173
138
10,382
0
705
2,531
2,127
94
5,457
2,415
191
74
1,053
1,821
5,554
15,936
3,881
236
46
459
168
4,790
10,247
9.3 Write-downs for accrued liabilities and deferred income
Write-downs for accrued liabilities and deferred income allocated directly to
the appropriate capital accounts can be summarised as follows:
a) items in liabilities:
1. accruals for interest charges:
– on bonds
– on deposit certificates
b) items in assets
Total
31/12/2001
31/12/2000
10,063
1,474
0
11,537
9,379
7,266
0
16,645
227
SECTION 10 – GUARANTEES AND COMMITMENTS
10.1 Composition of item 10 “guarantees issued”
a) guaranteed loans of a commercial nature
b) guaranteed loans of a financial nature
c) pledged assets
Total
31/12/2001
102,064
61,573
0
163,637
31/12/2000
83,553
71,930
0
155,483
31/12/2001
38,534
11,588
50,122
31/12/2000
64,070
4,725
68,795
31/12/2001
31/12/2000
25,000
25,823
45,000
0
10,100
80,100
0
25,823
31/12/2001
0
295,700
31/12/2000
0
307,721
10.2 Composition of item 20 “commitments”
a) commitments to provide funds for known use
b) commitments to provide funds for uncertain use
Total
10.3 Pledged assets of own debts
Bank of Italy – securities in guarantee of
day to day anticipation
Bank of Italy – securities in guarantee of
Euro pre-supply
Fixed deposit for Public Purchase Offer for
Banca Popolare del Levante
Total
10.4 Asset margins that can be used on lines of credit
a) central banks
b) other banks
228
10.5 Term transactions
Categories of transaction
1. Buying and selling
1.1 Securities
– purchases
– sales
1.2 Currencies
– currency against currency
– purchases against Euro
– sales against Euro
2. Deposits and loans
– to provide
– to receive
3. Derivative contracts
3.1 With exchange of capital
a) securities
– purchases
– sales
b) currencies
– purchases against Euros
– sales against Euros
c) other stocks
– purchases
– sales
3.2 Without exchange of capital
a) currencies
– purchases against Euro
– sales against Euro
b) other stocks
– purchases
– sales
helding
0
0
0
0
0
0
0
0
0
0
0
379,616
11,362
11,362
11,362
0
0
0
0
0
0
0
0
368,254
0
0
0
0
368,254
204,664
163,590
trading
327,533
8,105
5,977
2,128
319,428
11,987
176,865
130,576
22,269
19,351
2,918
1,017,726
585,315
424,947
216,769
208,178
160,368
6,464
60,800
93,104
0
0
0
432,411
0
0
0
0
432,411
96,321
336,090
other
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
trading
20,000
0
20,000
20,000
0
0
0
other
0
0
0
10.6 Derivative contracts on loans
Categories of transaction
1. Protection purchases
– credit default product
2. Protection sales
0
0
0
The derivative contracts on loans have the objective of transferring the underlying credit risk of a particular asset “reference obligation” from the person buying the protection “protection buyer” to the person selling the protection “protection seller”. In these operations the object of the transaction is represented
by the credit risk borne by a final recipient of reserves “reference entity”.
229
SECTION 11 – CONCENTRATION AND DISTRIBUTION OF THE
ASSETS AND LIABILITIES
11.1 Large risks
As at 31 December 2001 there were the following “Large Risks” according to
the regulatory standards:
31/12/2001
275,992
4
a) amount
b) number
31/12/2000
92,318
2
On the basis of the requirements issued by the Regulatory Body, a loan being
provided to a “customer” is defined as a “Large Risk” if when weighted
according to the rules specially provided it is equal to or greater than 10% of
the capital for regulatory purposes held by the bank providing the loan.
“Customer” means the individual subject or the “group of connected customers” meaning two or more subjects that constitute a single unit in terms
of the risk in that:
a) one of them has the power of control over the other or the others (“legal “
connection);
or:
b) regardless of the existence of control agreements, there are links between
the subjects such that, in all probability, if one of them was in financial difficulties then the other or all the others would encounter difficulties in
repaying the debt (“financial” connection).
11.2 Distribution of the loans to customers according to the main categories of borrowers
a) States
b) other public bodies
c) non-finance companies
d) financial bodies
e) family firms
f) other operators
Total
31/12/2001
0
4,148
1,478,600
140,580
147,867
793,767
2,564,962
%
0.00
0.16
57.65
5.48
5.76
30.95
100.00
31/12/2000
0
1,221
1,184,822
83,268
139,922
591,554
2,000,787
%
0.00
0.06
59.22
4.16
6.99
29.57
100.00
11.3 Distribution of loans to non-finance companies and resident family
producers
a) other services intended for sale
b) sales, recovery, and repair services
c) textile, leather, and footwear
products, clothing
d) building and public works
e) other industrial products
f) other branches
Total
230
31/12/2001
296,637
216,874
%
18.87
13.79
31/12/2000
220,596
202,295
%
15.46
16.86
210,228
179,147
173,868
495,577
1,572,331
13.37
11.39
11.06
31.52
100.00
156,373
149,247
150,785
428,872
1,308,168
11.95
11.41
11.53
32.78
100.00
11.4 Distribution of guarantees issued for the main categories of recipient
31/12/2001
0
203
1,149
115,576
29,538
3,722
13,439
163,627
a) States
b) other public bodies
c) banks
d) non-finance companies
e) financial bodies
f) family firms
g) other operators
Total
%
0.00
0.12
0.70
70.63
18.05
2.27
8.21
100.00
31/12/2000
0
69
3,717
92,664
44,582
4,289
10,162
155,483
%
0.00
0.04
2.39
59.60
28.67
2.76
6.53
100.00
11.5 Territorial distribution of assets and liabilities
Items/countries
Italy
1. Assets
1.1 Loans to banks
1.3 Securities
2. Liabilities
2.1 Due to banks
2.3 Securities issued
2.4 Other accounts
3.Guarantees and commitments
2,930,072
59,738
2,394,334
476,000
3,042,940
852,925
1,106,217
928,059
155,739
169,803
Other EU
countries
304,093
3,793
129,262
171,038
126,552
117,805
8,693
54
0
27,144
Other
countries
122,520
44,200
41,366
36,954
133,285
73,492
59,630
163
0
16,812
Total
3,356,685
107,731
2,564,962
683,992
3,302,777
1,044,222
1,174,540
928,276
155,739
213,759
11.6 Distribution of assets and liabilities over time
Duration set
From 1 years
Up to 5 years
From
3 months
On
Up to
up to
demand 3 monthhs 12 months
641,364 1,082,695 320,244
Fixed
rate
420,455
Index
rate
583,462
Fixed
rate
409,742
29
5,060
237,031
5,014
2,543
74,916
40,983
0
369,821
9,476
0
25,843
1,636
0
279,619
59,516
61,476
160,952
165,587
101,863
18,608
383,376
154,448
6,998
210,239
189,919
20,320
0
0
276,506
146,793
0
84
135,160
132,237
2,923
0
0
11,706
774,644
0
0
535,180
535,133
47
0
0
208,836
393,522
0
0
779
779
0
0
154,956
236,769
254,722
0
0
0
0
0
0
0
11,691
11,549
239,464
237,787
254,722
Items/
remaining durations
1. Assets
1.1 Treasury securities
that can be refinanced
1
12
1.2 Loans to banks
788
83,546
528,587 918,833
1.4 Bonds and other
debt securities
11,646
36,388
1.5 “Off-balance-sheet”
transactions
100,342
43,916
2. Liabilities
1,036,863 1,199,998
2.1 Due to banks
15,658 873,930
1,016,261 142,624
2.3 Securities issued:
3,817
43,101
– bonds
2,840
19,756
– deposit certificates
977
23,345
– other securities
0
0
2.4 Subordinated debt
0
0
2.5 “Off-balance-sheet”
transactions
1,127 140,343
Over 5 years
UndeterIndex
mined
Total
rate maturity duration
619,887 146,106 4,223,955
0
57,151
15,794 107,731
130,312 2,564,962
0
597,428
0 896,683
8,759 4,198,677
186 1,044,222
8,573 1,174,540
0 928,276
0 880,664
0
47,612
0
0
0 154,956
0
896,683
231
11.7 Currency assets and liabilities
a) Assets
1. loans to banks
2. loans to customers
3. securities
4. investments
5. other accounts
b) Liabilities
1. due to banks
2. due to customers
4. other accounts
31/12/2001
582,091
50,541
490,724
36,222
2,756
1,848
626,307
592,884
31,288
0
2,135
31/12/2000
477,519
30,870
417,183
26,035
2,756
675
562,554
544,287
18,177
0
90
11.8 Securitisation operations
As at 31/12/2001 there were no operations of this sort in being.
SECTION 12 – MANAGEMENT AND BROKING ON BEHALF OF
MINORITY INTERESTS
12.1 Security trading
a) Purchases:
1. settled
2. not settled
a) Sales:
1. settled
2. not settled
31/12/2001
31/12/2000
81,033
0
9,158
0
2,840
0
5,055
7
31/12/2001
31/12/2000
0
72,174
471
0
0
216
31/12/2001
2,526,261
498,679
2,027,582
31/12/2000
2,000,999
294,220
1,706,779
2,439,052
1,171,492
1,731,874
616,092
12.2 Asset management
1. securities issued by the bank that draws up
the balance sheet
2. other securities
Commission income
12.3 Custody and administration of securities
a) minority interest securities on deposit
1. securities issued by the bank
2. other securities
b) minority interest securities deposited with
minority interests
c) own securities deposited with minority interests
232
12.4 Payment of loans on behalf of minority interests: debit and credit
adjustments
The minority interest loans for which the Bank has been instructed to handle
the payment within the compass of the portfolio transactions are entered on
the balance sheet according to the criterion of the settlement date, which
involved the following adjustments to the written accounts:
a) “debit” adjustments:
1. current accounts
2. central portfolio
3. cash
4. other accounts
b) “credit” adjustments:
1. current accounts
2. effects and documents
handed over
3. other accounts
31/12/2001
614,552
129,106
327,139
3,896
154,411
644,931
175
31/12/2000
562,351
109,884
309,811
1,672
140,984
582,156
0
644,039
717
582,156
0
12.5 Other operations
Securities for payment “subject to collection”
“After payment” securities
Total value of asset management of minority interests
GPM offer made from 1/1 to 31/12/2001
31/12/2001
430,203
166,988
18,927
357
31/12/2000
430,741
151,415
32,258
3,096
233
PART C - N OTES TO
THE C ONSOLIDATED
P ROFIT AND L OSS
A CCOUNT
SECTION 1 - INTEREST
1.1 Composition of item 10 “interest income and similar revenues”
a) on loans to banks
of which:
– on loans to central banks
b) on loans to customers
of which:
– on loans with deposits received
in administration
c) on debit securities
d) other interest income
e) positive balance of the differentials
on “hedging” transactions
Total
31/12/2001
9,930
31/12/2000
10,041
1,175
980
140,846
107,224
0
0
35,662
13
22,419
5
0
186,451
0
139,689
1.2 Composition of item 20 “interest expense and similar charges”
a) due to banks
b) due to customers
c) on securities issued
of which:
– on deposit certificates
d) on deposits received in
administration
e) on subordinated debt
f) negative balance of the
differentials on “hedging”
operations
Total
31/12/2001
17,127
25,342
42,468
1,920
31/12/2000
16,030
16,539
34,083
3,607
127
2,249
134
1,321
1,852
89,165
2,218
70,325
1.3 Details of item 10 “interest income and similar revenue”
a) on currency assets
31/12/2001
21,197
31/12/2000
20,147
1.4 Details of item 20 “interest expenses and similar charges”
a) on currency liabilities
234
31/12/2001
12,589
31/12/2000
15,912
SECTION 2 - COMMISSION
2.1 Composition of item 40 “commission income”
31/12/2001
1,188
265
31/12/2000
1,016
0
431
760
678
646
0
0
623
0
212
1,294
0
0
0
495
0
113
3,934
0
504
0
5
0
4,739
0
0
44,056
54,077
0
0
0
0
3,528
0
0
46,390
56,800
31/12/2001
31/12/2000
0
212
504
0
113
0
0
0
0
716
0
0
0
113
31/12/2001
a) guarantees issued
0
0
c) management, brokerage, and
consultancy services:
1. security dealing
657
2. door-to-door selling of securities, products, and services
0
3. asset management
1) own portfolio
0
2) portfolio of minority interests
0
4. custody and administration of securities
5. placement of securities
0
6. securities, products, and services sold
outside own premises
1,677
1,404
e) other services
10,494
Total
14,232
31/12/2000
0
0
a) guarantees issued
c) management, brokerage, and consultancy services:
1. security dealing
2. currency dealing
3. asset management
3.1) individuals
3.2) collective
4. custody and administration of securities
5. Trustee Bank
7 acceptance of trading instructions
8. consultancy activities
9. distribution of services of minority interests
1) asset management:
a) individuals
b) collective
2) insurance products
3) other products
e) servicing securitisation transactions
f) tax collection services
g) other services
Total
2.2 Details of the item 40 “commission income”
Distribution channels for products and services
a) at own branches
1. asset management
3. services and products of minority interests
b) outside own premises
1. asset management
3. services and products of minority interests
Total
2.3 Composition of item 50 “commission expenses”
773
0
0
0
0
772
1,331
4,442
7,318
235
SECTION 3 – PROFITS AND LOSSES FROM FINANCIAL TRANSACTIONS
3.1 Composition of item 60 “profits/losses from financial transactions”
2001
Item/Transactions
A1. Revaluations
A2. Devaluations
B. Other profits (losses)
Totals
1.
2.
3.
4.
Government securities
Other debt securities
Variable-yield securities
Derivative contracts on
securities
2000
on securities
209
14
-11,795
-2,408
21,127
9,851
9,541
7,457
37
3,347
-6,589
294
893
1,376
12,746
4,894
2001
2000
on currencies
xxx
xxx
xxx
xxx
3,480
5,211
3,480
5,211
2001
2000
2001
2000
Other
0
-75
3,165
3,090
Totals
0
-151
-21
-172
209
-11,870
27,772
16,111
59
-2,560
15,041
12,496
SECTION 4 – ADMINISTRATION EXPENSES
4.1 Average number of employees in each category
a) executives
b) managers
c) remaining personnel
Total
31/12/2001
27
274
832
1,133
31/12/2000 Average 2001
8
22
123
207
707
847
838
1,076
Composition of item 80 “administration expenses”
a) Payroll costs
b) Other administration costs
of which:
– Telephones and post
– Maintenance of property and furniture
– Maintenance of plant and machinery
– Rental costs of premises
– Leasing costs of electronic machines
– Security and custody of valuables
– Transport and travel
– Professional fees
– Stationary and printing
– Electricity, heating, and mains water
– Advertising and representation
– Legal and judicial
– Electronic processing carried out by
third parties
– Information and searches
– Donations
– Cleaning of premises
– Indirect taxes
– Other expenses
– Interbank Deposit Protection Fund
operations
Total
236
31/12/2001
50,249
42,431
31/12/2000
44,884
31,929
1,768
295
1,992
3,522
1,223
756
730
1,925
1,164
1,239
6,129
762
1,893
205
1,766
2,520
1,105
470
526
998
841
1,132
2,723
784
8,490
1,262
424
737
756
5,045
4,199
7,291
964
252
452
645
4,522
2,838
13
2
92,680
76,813
SECTION 5 – WRITE-DOWNS, WRITE-BACKS, AND PROVISIONS
5.1 Composition of item 120 “write-downs of loans and provisions for
guarantees and commitments”
a) write-downs of loans
of which:
– lump sum write-downs for
countries at risk
– other lump sum write-downs
b) provisions for guarantees and
commitments
of which:
– lump sum provisions for
countries at risk
– other lump sum provisions
Total
31/12/2001
15,139
31/12/2000
10,650
0
8,263
0
4,493
0
0
0
0
0
0
15,139
10,650
Breakdown of write-downs of loans:
on non-performing loans to customers:
losses
devaluations
on watch-list loans to customers:
analytical devaluations
lump sum devaluations
on other performing loans:
lump sum devaluations
Total
31/12/2001
31/12/2000
209
4,245
1,806
4,321
2,370
156
0
492
8,159
15,139
4,031
10,650
Composition of item 90 “adjustments to the value of tangible and intangible fixed assets”
Amortisation of rebuilding costs rented premises
Amortisation of software
Other costs over several years
Amortisation of consolidation differences
Tangible fixed assets:
Amortisation of property
Amortisation of furnishings
Total
31/12/2001
31/12/2000
1,448
393
1,408
3,123
415
429
1,167
430
6,876
6,842
20,090
1,092
2,757
6,290
Composition of item 100 “provisions for risks and charges”
Provisions
31/12/2001
3,953
31/12/2000
2,055
237
Composition of item 130 “ write-backs of loans and provisions for guarantees and commitments “
The write-backs are made up of:
Recovery of loans amortised in previous periods
Collection of default interest
Write-backs on devaluations in previous periods
Total
31/12/2001
1,250
36
2,855
4,141
31/12/2000
1,011
12
1,802
2,825
Composition of item 140 “provisions to credit risk reserves”
Default interest credit risks
Risks on loans
Total
31/12/2001
554
463
1,017
31/12/2000
426
129
555
Composition of item 150 “write-downs of financial fixed assets”
Devaluation of investment securities
31/12/2001
0
31/12/2000
22
Composition of item 160 “ write-backs of financial fixed assets “
Write-backs of investment securities
31/12/2001
279
31/12/2000
0
Composition of item 170 “Profit/loss on investments valued by the net
equity method”
31/12/2001
0
31/12/2000
0
Composition of item 230 “variation in reserve for general banking risks”
Provision to general banking risk reserve
31/12/2001
6,714
31/12/2000
5,165
31/12/2001
-3,358
806
28
-2,524
31/12/2000
-21,287
2,822
63
-18,402
Composition of item 240 “income tax for the period”
1.
2.
3.
4.
238
Current taxes (-)
Variation in advance taxes (+/-)
Variations in deferred taxes (+/-)
Income tax for the period (-1 +/-2 +/-3)
SECTION 6 – OTHER ITEMS IN THE PROFIT AND LOSS ACCOUNT
6.1 Composition of item 70 “other operating revenue”
Rental income on property
Expenses sustained on behalf of borrowers
Taxes recovered from minority interests
Recovery of insurance premiums
Tax credit for revaluation of severance pay advance
Recovery of expenses of personnel on location
Leasing charges as appropriate
Other revenue
Total
31/12/2001
19
8,801
4,377
4
39
154
10,496
386
24,276
31/12/2000
20
7,668
3,832
3
37
0
0
153
11,713
31/12/2001
2
17
19
31/12/2000
152
0
152
31/12/2001
441
829
31/12/2000
1,904
1,535
38
11
1,202
2,521
21
0
266
3,726
31/12/2001
1,017
920
1,937
31/12/2000
729
398
1,127
6.2 Composition of item 110 “other operating costs”
Lease-finance charges
Other charges
Total
6.3 Composition of item 190 “extraordinary income”
Contingency income
Collection of default interest
Profits from creation of:
– tangible fixed assets
– intangible fixed assets
– investments
Total
6.4 Composition of item 200 “extraordinary expenses”
Contingency liabilities
Losses on disposal of tangible fixed assets
Total
SECTION 7 – OTHER INFORMATION ON THE PROFIT AND LOSS
ACCOUNT
7.1 Territorial distribution of the revenue
There is not sufficient information about the territorial distribution of revenue as to allow a detailed breakdown in this section.
239
PART D - O THER
I NFORMATION
SECTION 1 – THE DIRECTORS AND AUDITORS
1.1 Fees
a) directors
b) auditors
31/12/2001
644
291
31/12/2000
784
238
Agreed
Used
39,241
2,335
35,016
1,129
71,790
6,521
32,920
3,113
28
1,575
1
1,495
235
0
127
0
1.2 Loans and guarantees issued
a) directors
directly:
– cash loans
indirectly:
– cash loans
b) auditors
directly:
– cash loans
indirectly:
– cash loans
The loans were determined in compliance with article 136 of Legislative
Decree no. 385 of 1 September 1993.
Montebelluna, 2 April 2002
For the Board of Directors
The Chairman
Dr Flavio Trinca
240
A NNEXES TO THE
I NTEGRAL N OTES
A Changes in the shareholders’ equity for the periods closing on 31
December 2000 and 2001
B Chart of the Veneto Banca Group
241
A NNEXE A: C HANGES
IN SHAREHOLDERS ’ EQUITY AND SUBORDINATED DEBT FOR
THE PERIODS ENDING 31 D ECEMBER 2000 AND 31 D ECEMBER 2001
(IN THOUSAND EURO)
Share
Capital
49,607
Distribution of result for year 1999
as per resolution of the Meeting of
29/4/2000:
subordinated bond loan issue
other changes
net increase in new share subscriptions 26
net subscription increase due to
incorporation by merger of BCC
Piave and Livenza
3,184
Changes in equity due to
consolidation
provisions to reserve for general
banking risks
52,817
Distribution of result for year 2000
as per resolution of the Meeting of
21/4/2001:
* to the special reserve
subordinated bond loan issue
other changes
* merger surplus
net increase in new share
subscriptions
20,248
Changes in equity due to
consolidation
provisions to reserve for general
banking risks
73,065
242
StatutoryExtraordinary
Taxed Revaluation
and issue
reserve
reserve
reserve
premium
Law no. 823
reserve
of 19/12/73
126,700
34,755
100
5,554
Company
share
purchase
reserve
Taxed
reserve
and other
reserves
4,132
3
1,860
3,001
1
223
27
84
116
183
128,927
38,023
169
100
5,554
4,132
172
2,850
11,580
1
169
-169
56,427
17
77
188,391
49,680
100
5,554
4,132
3
Reserve
Special
for general
reserve
banking
ex art. 7
risks Law no. 218
of 30/7/90
1,033
1,796
Special
Negative
reserve exconsolidation
Leg. Dec. differences
153
17/5/99
40
Minority
interests
Subordinated
debt
Retained
earnings
Net income
for the
year
Total
0
0
0
18,574
469,146
-1,860
-12,898
-3,001
-407
108,456
-12,898
-407
108,456
1
249
235
3,699
2,121
-408
2,012
30,689
30,689
5,165
30,798
379,369
5,165
6,433
1,796
0
40
2,121
108,456
109
109
-2,850
-14,789
-11,580
-829
-641
829
46,500
-14,789
-641
46,500
1
76,675
10,765
-109
10,750
6,714
13,147
1,796
829
40
12,886
154,956
0
41,849
41,849
6,714
41,849
546,428
243
A NNEXE B: G ROUP C HART
THE VENETO BANCA GROUP
AREA OF CONSOLIDATION
VENETO BANCA
CLARIS
FACTOR spa
100%
BANCA
ITALO-ROMENA spa
92.31%
CLARIS
LEASING spa
100%
VENETO IRELAND
FINANCIAL SERVICES ltd
100%
CLARIS
ASSICURAZIONI srl
100%
CLARIS
BROKER spa
100%
SINTESI srl
33.33%
ATENE srl
33.33%
PALLADIO
FINANZIARIA spa
98.54%
CLARIS
VITA spa
100%
NUOVA FINANZIARIA
MEDITERRANEA spa
25%
NUOVA BANCA
MEDITERRANEA spa
100%
244
BANCA
DI BERGAMO spa
60%
BOARD OF AUDITORS’
REPORT ON THE CONSOLIDATED
BALANCE SHEET
245
B OARD OF
A UDITORS ’ R EPORT
ON THE
CONSOLIDATED
B ALANCE S HEET
Dear Shareholders,
The prospective consolidated balance sheet as at 31 December 2001, that the
directors of the Parent Company of the Veneto Banca Group have communicated to us under the terms of the law, has been drawn up in compliance with
the requirements referred to in Legislative Decree 87/92 and the operational
regulations issued in these matters by the Bank of Italy according to article 5
of the above-mentioned Legislative Decree.
The statement of assets and liabilities and the profit and loss account can be
summarised as follows (in thousands of Euros):
Statement of assets and liabilities
Total of assets
Liabilities
Minority interests share of equity
Net equity
Contingent liabilities and guarantees
Guarantees issued
Commitments
3,893,985
3,347,557
12,886
491,693
3,852,136
41,849
163,637
50,122
213,759
Profit and loss account
Profit before extraordinary items and income tax
Extraordinary profit
Pre-tax profit
Variation in general banking risk reserve
Minority interests portion of net income
50,584
584
51,168
-6,714
2,524
81
41,849
The management report by the directors, which is in line with the consolidated balance sheet, describes the events of interest to the group in a sufficient manner, illustrates the progress of the operations during the 2001 financial year of the companies included in the consolidation, and contains the
other information required by article 3 of Legislative Decree 87/92.
With regard to the balance sheet, we consider that the following can be stated and confirmed:
• the area of consolidation covers all and only the investments defined as relevant according to article 25 of Legislative Decree 87/92. The following
have therefore been consolidated with the integral method: the company
Claris Factor spa, carrying out factoring activities, the company Veneto
Ireland Financial Services ltd., carrying out financial activities on behalf of
the Bank, and Banca Italo-Romena spa and Banca di Bergamo spa, carrying
out banking activities. On the other hand, Atene srl, Claris Assicurazioni
srl, Claris Broker spa, Claris Vita spa, Nuova Finanziaria Mediterranea spa,
and Sintesi 2000 srl were valued using the net equity method in that,
although subsidiaries and the Parent Company having voting rights that
can be exercised in amounts greater than a fifth, they do not carry out
banking or financial activities nor are they instrumental to the Group or
247
they have a different balance sheet structure from that of the Parent
Company and therefore can not produce a corresponding numerical representation;
• vthe consolidation principles used conform with the requirements of the
law and have been applied in the correct manner;
• the integral notes provide detailed information on the items in the statement of assets and liabilities and the profit and loss account of the group
and are drawn up in compliance with the regulations currently in force.
In fulfilling its monitoring functions, the Board of Auditors found that the
procedures used to draw up the consolidated balance sheet were correct and
can therefore confirm that the prospective consolidated balance sheet corresponds with the written accounts of the Parent Company and the projected
balance sheets as at 31 December 2001 approved by the subsidiaries’ Boards
of Directors.
Montebelluna, 2 April 2002
The Board of Auditors
Dr Fanio Fanti
Dr Bruno Sonego
Dr Fulvio Zanatta
248
EXTERNAL
AUDITORS’ REPORT
249
OttavioCapriolo - Milano

REPORT AND ACCOUNTS 2001 36th Period

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