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

eduction in the equity capital market contribution. This area generatedsome 25% of the wholesale banking division’s total income.Leasing— this activity returned to profit in the twelve months, posting abottom line of €5.2m, against the slight, €0.4m loss reported last year,largely as a result of the reduction in loan loss provisions, which weredown from €40.6m to €26.1m. Revenues were down 3%, from €79.4m to€77.3m, due to the 2.8% fall in net interest income, from €75.4m to€73.3m, while operating costs remained stable at €32m (€31.8m). Thereduction in amounts on lease to customers continued over the year, downfrom €4,544.7m to €4,417.6m, against new loans for the twelve monthswhich were largely in line with the figure posted a year previously(€1,121.7m, compared with €1,106m). Net impaired assets (nonperforming,sub-standard, restructured and overdue items) grew from€187.9m to €203m, or from 4.1% to 4.6% of total loans, but at a decidedlyslower rate (8%, compared to 69% growth last year).Turning now to the results of the individual Group companies:— Mediobanca International (Luxembourg) S.A., Luxembourg (wholesalebank; 99%-owned by Mediobanca; 1%-owned by Compass): Thiscompany’s financial statements for the twelve months ended 30 June2010 show a net profit totalling €36.1m (€35.3m), boosted by highernet interest income (up from €28.8m to €34.9m), but also impactedby lower net fee and commission income (down from €17.8m to€15.8m) and higher operating costs (up from €2.3m to €7.2m). Loansand advances to customers were stable, at €4,081m (€4,092.9m), anincreasing amount of which are financed by intercompany funding (upfrom €2,252.3m to €2,797.7m), with debt securities and short-termfunding (CDs and Euro commercial paper) both falling (from€1,893.6m to €1,354.8m and from €741.4m to €282.2m respectively).The company’s net equity stood at €166.5m (€131m).– 37