UNICREDIT (UCG): CONSOLIDATED RESULTS FOR FIRST HALF 2009 APPROVED - raport 65
Raport bieżący nr 65/2009
Podstawa prawna:
Art. 56 ust. 1 pkt 2 Ustawy o ofercie - informacje bieżące i okresowe
PRESS RELEASE
CONSOLIDATED RESULTS FOR FIRST HALF 2009 APPROVED: NET PROFIT OF €937 MILLION, OPERATING PROFIT UP 24.6% YoY ON A LIKE-FOR-LIKE BASIS, CORE TIER I AT 6.85%
FIRST HALF 2009
- Net profit attributable to the Group of €937 million
- Operating profit €6,636 million, +24.6% YoY on a like-for-like foreign exchange and perimeter basis
- Solid performance of commercial banking1continues accompanied by the recovery of Markets and Investments Banking (MIB)
- The Group’s ability to absorb the effects of the difficult macroeconomic situation is confirmed: profit before tax close to €2 billion despite an increase in the cost of risk to 136 bp
- Reduction of total assets, trading activities and risk weighted assets continues
- Core Tier 1 up at 6.85%. Tier 1 at 7.66%
SECOND QUARTER 2009:
- Net profit attributable to the Group of €490 million, an increase of 9.6% QoQ
- Operating income up QoQ at €7,764 million, with strong recovery in net trading income and solid progress in all other components
- Operating costs total €3,868 million with a cost/income ratio below 50% (-8 p.p. QoQ)
- Operating profit €3,896 million, the highest level since second quarter 2007
- Profit before tax shows an increase of 9.2% QoQ
The Board of Directors of UniCredit approved the consolidated results for first half 2009 which show a net profit of €937 million (mn), €490 mn of which recorded in the second quarter. Profit before tax rises 9.2% QoQ thanks to a solid operating performance despite an increase in loan provisions which, in line with the macroeconomic conditions, rise to €2,431 mn.
Operating profit in first half 2009 reaches €6,636 mn, €3,896 mn of which reported in the second quarter (an increase of more than €1 billion (bn) QoQ). The improvement of the second quarter with respect to the first quarter is attributable, above all, to an increase in revenues with strong acceleration in net trading, hedging and fair value income, as well as to a rise QoQ in both net interest and net commissions. The focus on efficiency continues with a cost/income ratio that drops below 50% in second quarter 2009.
In both the first and second quarters the solid trend in operating profit reflects how important diversification is for the Group, as the commercial banking activities report solid results
1
1 ) Retail, Corporate, CEE Region and Private Banking
2
(operating profit +0.8% QoQ) and the Markets & Investment Banking (MIB) Division shows a further improvement with an operating profit of €870 mn in second quarter 2009 versus €330 million in first quarter 2009.
UniCredit Group’s operating income, equal to €14,326 mn in second half 2009, rises 7.1% YoY on a like-for-like perimeter and foreign exchange basis, and €7,764 mn in second quarter 2009, an increase of 6.6% QoQ on a like-for-like basis. This result is primarily due to the recovery of net trading, hedging and fair value income but of note is also the growth QoQ of both net interest and net commissions (which begin to rise again after a six quarter declining trend).
Net interest amounts to €9,360 mn in first half 2009 which shows solid progress YoY (+5.6%, +10.8% on a like-for-like foreign exchange and perimeter basis). The quarterly trend is also positive with net interest reaching €4,710 mn in second quarter 2009, an increase of 1.3% over the previous quarter (1.6% on a like-for-like foreign exchange and perimeter basis).
Net commissions total €3,735 mn in first half 2009, compared to €4,802 mn in the same period of the prior year. The drop YoY is once again due to the decline in commissions from asset management, custody and administration which reflects a sector wide drop in volumes. Net commission’s performance QoQ, however, shows signs of recovery with commissions from asset management, custody and administration rising 1.9% QoQ while other commissions report an increase of 2.6%. At June 30th, 2009 the volume of the assets managed by the Group’s Asset Management Division amounts to €160.3 bn.
Net trading, hedging and fair value income comes in at €864 mn in first half 2009, a noticeable improvement over the -€199 mn reported in first half 2008. The quarterly performance is also positive with net trading, hedging and fair value income reaching €957 mn, an improvement of more than €1 bn versus the -€93 mn reported in first quarter 2009, testimony to the Group’s ability to take advantage of the benefits offered by the improved market conditions, even while paying close attention to reducing risk.
Other net income, which in first half 2009 amounts to €209 mn (€104 mn of which recorded in the second quarter), is slightly down YoY.
Operating costs total €7,690 mn in first half 2009, a decided drop over first half 2008 (-8.0% YoY and -4.9% YoY on a like-for-like foreign exchange and perimeter basis). Operating costs in second quarter 2009 rise to €3,868 mn over the €3,822 million reported in first quarter 2009 due entirely to non-recurring items of €102 mn. Testimony to the great attention paid to efficiencies, net the non-recurring items and on a like-for-like foreign exchange and perimeter basis, the Group’s operating costs fall by 1.6% QoQ in second quarter 2009.
Payroll costs drop in first half 2009 by 7.7% YoY on a like-for-like basis to €4,545 mn. In second quarter 2009, net non-recurring items and on a like-for-like foreign exchange and perimeter basis, payroll costs drop by 3.5% over the previous quarter thanks primarily to the optimization of human resources and the reduction in variable compensation linked to results.
Other administrative expenses, net recovery of expenses, in first half drop with respect to the €2,662 reported in the same period in 2008 to €2,539 mn. In second quarter 2009 the item amounts to €1,314 mn, an increase over the prior quarter of €89 mn due primarily to non-recurring and cyclical elements.
Amortization, depreciation and impairment losses on intangible and tangible assets rise 1.6% YoY on a like-for-like foreign exchange and perimeter basis in first half 2009 to €606 mn, €305 mn of which recorded in the second quarter.
3
The cost/income ratio comes in at 53.7% in first half 2009, an improvement over the 59.5% recorded in first half 2008. The quarterly trend is also positive with the cost/income ratio in second quarter 2009 coming in at less than 50.0% (49.8%), an impressive 8.4 percentage points below first quarter 2009.
The provisions for risks and charges in first half 2009 increase by €95 mn YoY to €223 mn (€155 mn of which recorded in the second quarter).
Net write-downs of loans and provisions for guarantees and commitments total €4,081 mn (€2,431 mn of which reported in the second quarter) in first half 2009, equivalent to a cost of risk of 136 basis points.
Gross impaired loans at the end of June 2009 total €49.6 bn, an increase over the €44.8 billion recorded at the end of March 2009. As in first quarter 2009 the restructured loans and the less severe categories show the most growth while the increase in gross NPLs, which rise 7.6% QoQ to €30.9 bn in second quarter 2009, is more contained.
The coverage ratio of total gross impaired loans at June 2009 is 50.1%, reflecting a coverage ratio of NPLs of 64.2% and of other problem loans equal to 27.0%.
Integration costs amount to €309 mn in first half 2009, attributable primarily to second quarter 2009 (for some €242 mn). The increase in 2009 is linked largely to the continued commitment to greater staff efficiencies: in the first half of the year charges of €264 mn linked to FTE rationalization were recorded. This rationalization has yet to be finalized and, when completed, will result in an annual savings in operating costs of approximately €190 mn.
Net investment income totals -€94 mn in first half 2009, with a contribution to income which is noticeably less with respect to the €365 recorded in first half 2008. Second quarter 2009 also benefits less from the contribution of this component with net investment income reaching -€61 mn compared to -€33 mn in first quarter 2009. The negative impact on the second quarter’s net profit amounts to €66 mn.
Income tax for the period amounts to €697 mn in first half 2009 (€1,088 mn in the same period of the prior year) with a tax rate of 36.1%. With regard to second quarter 2009, income tax reaches €363 mn with a tax rate of 36.0%.
Minorities in first half 2009 amount to €166 mn compared to €303 mn in first half 2008, which still did not reflect the purchase of the minority interests in Bayerische Hypo- und Vereinsbank (HVB) and UniCredit Bank Austria. In second quarter 2009 minorities amount to €90 mn (€76 mn in the previous quarter).
The impact of the Purchase Price Allocation drops with respect to the -€164 mn in first half 2008 and amounts to -€129 mn in first half 2009, -€64 mn of which attributable to the second quarter.
In first half 2009 the Net profit attributable to the Group totals €937 mn, a decline compared to the €2,975 mn recorded in the same period of the prior year, which reflects a decidedly more difficult macroeconomic scenario. The quarterly trend, rather, shows improvement with the Net profit attributable to the Group in second quarter 2009 rising from the €447 mn reported in first quarter 2009 to €490 mn.
Total assets amount to €983 bn (€1,028 bn at March 2009), a further decline of 4.4% QoQ which brings the drop from the beginning of 2009 to 6.0% (-€63 billion). Of note is the progress made in reducing the Trading assets, equal to €157 bn at June 2009, €59 bn net derivatives, a drop of €8.3 bn QoQ. There was a decided reduction in net interbank funding in second quarter 2009 which comes in at €50 bn compared to €82 bn at the end of the first quarter (a drop of almost 40% QoQ).
Core Tier 1 ratio moves to 6.85% at June 2009 from 6.69% at March 2009, showing good capacity for organic cash generation which in second quarter 2009, thanks to the income generated and the continuous reduction in RWAs (which fall further by €17.8 bn to €485.8 bn), contributes 29 basis points to the increase of Core Tier 1 ratio. The Tier 1 ratio comes in at 7.66% and the Total Capital Ratio at 11.33%.
At the end of June 2009, the Group’s organization consists of a staff2 of 168,007, a further reduction of 2,725 over March 2009 and of 6,512 over December 2008. The reduction in the first half involves all the main business divisions with the largest decreases in Retail, the CEE area and the Corporate Centre.
The Group’s network at the end of June 2009 consists of 9,974 branches (10,131 at March 2009 and 10,251 at December 2008).
Attached are the Group’s key figures, the consolidated balance sheet and income statement, the quarterly progression of the consolidated income statement and balance sheet, the second quarter 2008/2009 income statement comparison and the major divisional results. Please note that the documents have not yet been certified by the Independent Auditors.
Declaration by the Senior Manager in charge of drawing up Company Accounts The undersigned, Marina Natale, in her capacity as the senior manager in charge of drawing up UniCredit SpA's company accounts DECLARES pursuant to Article 154 bis of the "Uniform Financial Services Act" that the accounting information relating to the consolidated financial statements at June 30th, 2009 as reported in the present press release corresponds to the underlying documentary reports, books of account and accounting entries.
Milan, August 4th, 2009
Investor Relations:
Tel. +39-02-88628715; e-mail: investorrelations@unicreditgroup.eu
Media Relations:
Tel. +39-02-88628236; e-mail: mediarelations@unicreditgroup.eu
2 ""Full time equivalent", calculated according to a new methodology which does not include unpaid leaves. In the figures reported the companies proportionately consolidated, including the KFS Group, are included at 100%.
Załączniki:
Plik;Opis
Wioletta Reimer - Attorney of UniCredit
