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

Retail and private banking30 June 2010Consumer credit Retail banking Private banking Total€m €m €m €mNet interest income . . . . . . . . . . . . 469.5 32.6 23.6 525.7Net trading income . . . . . . . . . . . . 6.4 60.1 12.7 79.2Net fee and commission income . . 162.9 5.6 71.5 240.0Equity-accounted companies . . . . (0.5) — 0.2 (0.3)TOTAL INCOME . . . . . . . . . . . 638.3 98.3 108.0 844.6Labour costs . . . . . . . . . . . . . . . . . (80.1) (56.1) (52.3) (188.5)Administrative expenses . . . . . . . . (160.2) (123.6) (32.4) (316.2)OPERATING COSTS . . . . . . . (240.3) (179.7) (84.7) (504.7)Loan loss provisions . . . . . . . . . . . (336.5) (23.0) (1.3) (360.8)Provisions for financial assets . . . . — — (1.9) (1.9)Other profits (losses) . . . . . . . . . . . — — 5.2 5.2PROFIT BEFORE TAX . . . . . 61.5 (104.4) 25.3 (17.6)Income tax for the period . . . . . . . . (39.6) 25.8 (0.2) (14.0)NET PROFIT . . . . . . . . . . . . . 21.9 (78.6) 25.1 (31.6)Cost/income ratio (%) . . . . . . . . . . 37.6 n.m. 78.4 59.8Equity investments . . . . . . . . . . . . 1.4 — — 1.4Other financial assets . . . . . . . . . . 425.8 7,272.5 1,467.7 9,166.0Loans and advances to customers . 8,271.0 3,545.8 747.1 12,563.9New loans . . . . . . . . . . . . . . . . . . . 4,053.9 805.2 — 4,859.1No. of branches . . . . . . . . . . . . . . . 146 42 — 188No. of staff . . . . . . . . . . . . . . . . . . . 1,295 845 338 2,478Turning to the individual business segments, consumer credit showedtotal income up 7.7%, from €638.3m to €687.3m, on the back of higher netinterest income (up from €469.5m to €520.2m), with fee flows stable at€166.8m (€162.9m). The increase in costs, from €240.3m to €249.8m, areattributable to the upgrade in structures and the contractual increase in thecost of labour. Net profit increased from €21.9m to €91.1m, in part as aresult of the lower loan loss provisions (€302.3m, as compared with€336.5m).– 45