Milan, Italy, March 17th, 2010
FULL YEAR 2009:
- The Group's portion of net profit €1,702 million
- Operating income €27,572 million, +2.6% YoY
- Operating profit €12,248 million, +20.3% YoY
- Balance sheet strengthened: total assets, trading and net interbank exposure reduced, leverage ratio improved
- Capital strengthened: Core Tier 1 ratio reaches 7.62%, +104 bp with respect to December 2008 post CASHES. Pro - forma the capital increase successfully completed in February 2010: Core Tier 1 ratio 8.47%
- Constant improvement in operating costs: -8.2% YoY; Cost/income ratio of 55.6%
- 2009 cash dividend of €0.03 per share
FOURTH QUARTER 2009:
- The Group's portion of net profit €371 million, versus €394 million in 3Q09
- Operating income €6,443 million; quarterly trend shows growth in net commissions and, in line with the sector trend, a drop in net trading, hedging and fair value income
- Operating costs €3,803 million, dropping further QoQ
- Loan loss provisions €2,068 million, with the cost of risk dropping for the second quarter in a row to 146 bp
- Operating profit €2,640 million, down due to a drop in net trading, hedging and fair value income with respect to 3Q09
- 21 bp of the Core Tier 1 ratio generated in the quarter; up 7 bp including the effect of the dividend, booked entirely in the fourth quarter
The Board of Directors of UniCredit approved the consolidated results for 2009 which show the Group's portion of net profit at €1,702 million, €371 million of which generated in the fourth quarter.
The fourth quarter 2009 performance provides further confirmation of a few positive elements that emerged during the third quarter, such as: improvement in the balance sheet and capital structure, declining operating costs and increasing net commissions. There was also a drop in net trading, hedging and fair value income, which was impacted by a sectorwide slowdown with respect to the excellent performance recorded in the first three quarters of 2009.
In 2009 operating income reaches €27,572 million, an increase of 2.6% YoY (7.2% YoY on a constant currency and perimeter basis), and €6,443 million in fourth quarter 2009, an increase of 5.7% YoY but a drop QoQ due almost entirely to the decrease in trading income.
Net interest held well YoY coming in at €17,304 million in 2009 (-5.8% YoY, but only -1.9% YoY on a constant currency and perimeter basis), despite the elimination, in third quarter 2009, of overdraft charges and the less then favourable interest rate environment. In the fourth quarter net interest amounts to €4,017 million, an increase with respect to the €3,927 million recorded in third quarter 2009, thanks to a lower cost of wholesale funding and non-recurring items.
Net commissions total €7,780 million in 2009, a drop with respect to the €9,093 million reported in the prior year, due to a much more unfavourable asset management sector. If we look at the quarterly trend, rather, after reaching the low for the year in the first quarter, net commissions begin to show clear signs of strengthening with the fourth quarter even recording growth both QoQ and YoY (net commissions in fourth quarter 2009: €2,114 million; in third quarter 2009: €1,931 million; in fourth quarter 2008: €2,090 million). Furthermore, as in the third quarter, both commissions from asset management, custody and administration and other commissions record an increase QoQ (14.9% and 6.1%, respectively). At December 31st, 2009 the volume of the assets managed by the Group's Asset Management Division amounts to €175.8 billion, an increase of 2.2% QoQ.
Net trading, hedging and fair value income in 2009 amounts to €1,803, a significant recovery with respect to the -€1,969 million recorded in 2008 and confirmation of the Group's ability to react quickly to improved market conditions. In fourth quarter 2009 net trading, hedging and fair value income amounts to €152 million, positive despite a quarter which was much more unfavourable for the investment banking business, but still less than the excellent result recorded in third quarter 2009 (€715 million).
In 2009 other net income of €373 million (€69 million of which in the fourth quarter), is basically in line with the €368 million reported in 2008.
Operating costs amount to €15,324 million in 2009, a decided reduction with respect to 2008 (-8.2% YoY and -5.3% YoY on a constant currency and perimeter basis). Looking at the quarterly trend, the Group was able to minimize the negative effects of seasonal expenses and operating costs amount to €3,803 million in fourth quarter 2009, less than the €3,831 million recorded in the prior quarter.
Other administrative expenses, net of recovery of expenses, reach €4,945 million in 2009, a strong drop with respect to the €5,462 million reported in 2008 (-9.5% YoY, -6.0% YoY on a constant currency and perimeter basis). In fourth quarter 2009 the figure totals €1,176 million, a decline with respect to the €1,230 million reported in third quarter 2009 and to the €1,436 reported in the last quarter of 2008.
Amortization, depreciation and impairment losses on intangible and tangible assets in 2009 amount to €1,281 million, compared to €1,312 million in 2008. The figure reaches €350 million in fourth quarter 2009.
The cost/income ratio comes in at 55.6% in 2009 (59.0% in the fourth quarter), showing marked improvement over the prior year (62.1%).
Operating profit in 2009 amounts to €12,248 million, €2,640 million of which in the fourth quarter (lower than in the prior quarter due to the decrease in net trading, hedging and fair value income).
In 2009 provisions for risks and charges increase YoY reaching €609 million, €232 million of which in the fourth quarter.
Net investment income totals €232 million in 2009, an increase with respect to the €207 million recorded in the prior year. Fourth quarter 2009 shows positive net investment income of €217 million, compared to €181 million in the prior quarter due, above all, to the pre-tax capital gain from the disposal of the quotas held in the real estate fund Omicron.
In 2009 income tax for the period amounts to €1,009 million (an increase with respect to the €627 million recorded in the prior year, which benefited from the positive effects of goodwill deductions), with a tax rate of 30.6%. Income tax in fourth quarter 2009 amounts to €124 million.
The Group's portion of net profit in 2009 is €1,702 million compared to €4,012 million in the prior year, achieved, however, under much less favourable global macroeconomic conditions. The quarterly trend shows profit dropping from €490 million in second quarter 2009 to €394 million in third quarter 2009, reaching €371 million in fourth quarter 2009.
Total assets at December 2009 total €929 billion (€958 billion at September 2009), a drop of 3.0% QoQ and of 11.2% since the beginning of 2009 (-€117 billion). Please note that the reduction in the balance sheet items was achieved by paying special attention to certain areas. In 2009 the trading assets fall by €71 billion, reaching €134 billion at the end of December (a decrease of €12 billion was reported in fourth quarter 2009, -8.0% QoQ). Net of derivatives, trading assets at December come in at a more contained level of €59 billion or 6.3% of total assets and down 30.2% YoY. Net interbank funding falls by €68 billion in 2009 (-70.5% YoY) to €29 billion. Due to both the decline in total assets and the increase in net equity, the Group's leverage ratio¹ improves in fourth quarter 2009, as well, reaching 24.4 (22.1 pro-forma the capital increase announced on September 29th, 2009), a solid result in light of the fact that the ratio calculation includes the derivatives subject to netting agreements (net of which the leverage ratio at December 2009, pro-forma the capital increase, would be 20.9).
At the end of December 2009 the Group's organization consists of a staff² of 165,062, a further reduction of 1,359 over September 2009 and of 9,457 over December 2008. The reduction in 2009 involves all the business divisions.
The Group's network at the end of December 2009 consists of 9,799 branches (9,892 at September 2009 and 10,251 at December 2008).
Investor Relations:
Tel. +39-02-88628715
e-mail: investorrelations@unicreditgroup.eu
Media Relations:
Tel. +39-02-8862823
e-mail: mediarelations@unicreditgroup.eu
¹Calculated as the ratio of total assets net good will and other intangible assets (the numerator) and net equity (including minorities) net goodwill and other intangible assets (the denominator).
²"Full time equivalent ". In the figures reported the companies consolidated proportionately, including the KFS Group, are included at 100%.
LIETUVIŲ
UNICREDIT GROUP
