Annual Accounts and Report as at 30 June 2011 Draft - Mediobanca

esearch project on medium-sized European companies (in Italy, Germanyand Spain). The company’s accounts for the twelve months ended 30 June2011 show an even balance, after charging Mediobanca €1.5m (€1.6m) forservices and expenses. R&S employs 12 staff.Related party disclosureFinancial accounts outstanding as at 30 June 2011 betweencompanies forming part of the Mediobanca Group and related parties, andtransactions undertaken between such parties during the financial year,are illustrated in Part H of the notes to the accounts, along with all theinformation required in respect of transparency pursuant to Consobresolution 17221 issued on 12 March 2010.All such accounts fall within the Bank’s ordinary operations, aremaintained on an arm’s length basis, and are entered into in the interestsof the Bank itself, including in its capacity as parent company to theMediobanca Banking Group. In this connection, certain services providedby Group companies, such as EDP, share and bond administration, andresearch, are paid for at cost. No atypical or unusual transactions havebeen entered into with these counterparties.There are no shareholders in the Bank in a controlling position.* * *OUTLOOKEstimates for the current financial year are strongly constrained by therisk of a new contraction in the Eurozone economy and the notable marketinstability. This is compounded by the specific weakness in refinancingperipheral EU member states’ sovereign debt, which includes Spain andItaly, and financial institutions’ liabilities. Against this backdrop, the Bankwill continue to focus on banking activities, maintaining its customaryrigour in risk selection while pursuing selective growth in customerlendings, including with the support of the international franchise. Theimpact of equity investment portfolio valuations and the contribution fromtrading activity on profitability will, as always, depend closely on stockmarket developments.260 –