996 - Banca Antonveneta

Performance of the main AntonvenetaGroup CompaniesWith a view to providing greater detail on theperformance of the Antonveneta Group in 2007, theeconomic and equity performances of the main Groupcompanies are illustrated below; in relation to BancaAntonveneta, reference should be made to the reportwhich accompanies its separate financial statements.Interbanca S.p.A.During 2007, Interbanca’s operations – as did those ofthe other Antonveneta Group companies – felt theeffect of the corporate events which affected ABNAMRO Bank, joined by the unfavourable performanceof the stock market, which had negative effectsespecially on commission; furthermore, the adoption ofa policy targeted at focusing activities on transactionscharacterized by greater profitability conditioned theperformance of administered funds, which reported anoverall reduction with respect to 2006.As at 31 December 2007, customer loans amounted to5,859 million, disclosing a decrease of 16.7% withrespect to the 7,034 million at the end of 2006, in thepresence of flows maturing for around 3,300 million,only partly offset by new disbursements. In December,Interbanca factored a portfolio of non-performing loansfor an overall gross value of approximately 30.3million, without any impact on the income statement.During the year just ended the company continued todevelop Corporate, Structured Finance and ProjectFinance activities, generating, in total, disbursementvolumes for 1,085 million (compared with 1,105million in 2006) and total commission amounting toaround 19 million, just under the figure of 20 million in2006.At the end of December 2007, the merchant bankingportfolio stood at 167 million, compared with 257million in 2006. During the year, the company made 3new investments (Gear World S.p.A., Imperium S.p.A.and Intersac Holding S.p.A.), for a total of 32.7million, of which 3.6 million relating to the subscriptionof a convertible bond issue. With reference to equityinvestments already in the portfolio, furtherinvestments were made for a total of 14.8 million.During the year, 9 disposals were also finalized(including Ricordeau S.r.l., Promotor InternationalS.p.a., Trend Group S.p.A. and Pramac S.p.A.), for atotal value of 74.7 million; of these transactions, 8concerned the entire share capital. The capital gainsgenerated came to around 49 million, essentially inline with the result for 2006.The company continued to be active in the Investmentbanking area, even if, as a result of the reduction inshare capital increase transactions linked to thenegative performance of the stock market,commission, equating in total to 4.2 million, was morecontained with respect to the figure of 6.2 million in2006. In the Merger & Acquisition area, in particular,the company obtained more than 20 appointments,serving both corporate customers and private equityfunds.At the end of December 2007, total funding, inclusiveof subordinated liabilities, amounted to 5,948 million,involving a significant decrease (-20.2%) with respectto 2006, linked to the effective requirement expressedby loan disbursements. Within the aggregate, thecomponent of securities issued, amounting toaround 3 billion, disclosed the most consistentdecrease (-25.4%), partly due to the fact that, duringthe year, no new bond issues were launched.During 2007, Interbanca reported a net loss of 4.7million, compared with profit of 86.8 million in 2006;this result was mainly influenced by certain nonrecurrentfactors, such as the adjustments relating tothe IA&T/Mark IV Holding position (for a total of morethan 55 million), the provision (9.5 million) for thetransactional settlement of the tax dispute for thefailure of the company BELL S.A. (a company in whichInterbanca held an interest of 6.3%) to pay taxes inItaly (2001 IRPEG – corporate income tax) and theamount set aside (approximately 6 million) for thestaff redundancy incentive plan.Antonveneta ABN AMRO Bank S.p.A.This company, 55% owned by Banca Antonveneta and45% owned by ABN AMRO Bank N.V., operates in theasset management sector. Further to the aforementionedcorporate reorganization plan launchedduring 2007, the company transferred the privatebanking business segment to Banca Antonveneta, asfrom 1 July – including the dedicated structurecomprising 75 employees, 1 financial advisor and fourbranches – and finalized the merger by incorporationof the subsidiary ABN AMRO S.g.r., with legal efficacyas from 1 January 2008. As from the same date, thecompany, subject to the amendment of its corporatepurpose, in turn changed into an asset managementcompany (S.g.r.), adopting the name “ABN AMROAsset Management Italy, Società di Gestione delRisparmio S.p.A.”.During the accounting period in question, the companyachieved an in-depth rationalization of the range,aimed at reducing the fragmentation and complexity ofthe portfolio management lines which, mainly bymeans of standardizing products with a similar profile,33