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

New loans for the twelve months totalled €4,827.7m, up 19.1% on theprevious year (€4,053.9m); while loans and advances to customersoutstanding at 30 June 2011 were up 7.9%, from €8,271m to €8,926.9m.Net impaired assets (i.e. non-performing, sub-standard, restructured andoverdue items) fell from €238.2m to €174.5m, and account for 2% (2.9%)of the total loan book.Retail banking showed a net loss of €38.8m, less than half the €78.6mloss reported last year, due to higher total income (up from €98.3m to€157.5m) driven by an increase in net interest income, which climbedfrom €32.6m to €112.1m, and offset the reduction in gains on disposals ofAFS securities (€38.3m, compared with €60.1m last year). Operating costsremained roughly stable, up 2.4%, from €179.7m to €184m, while the costof risk also improved, with loan loss provisions down from €23m to€20.8m. Mortgage lending saw 15.7% growth in loans and advances tocustomers, from €3,545.8m to €4,102.6m, driven by the recovery in newloans which rose 26.7%, from €805.2m to €1,019.8m; net impaired assets(i.e. non-performing, sub-standard, restructured and overdue items)increased from €90.2m to €98.6m, and now account for 2.4% (2.5%) of thetotal loan book. Retail deposits stood at €9,960.3m, up 4.2% on the€9,561.1m reported at 30 June 2010.Private banking recorded a profit of €25.5m, in line with the €25.1mposted last year, helped in particular by Banca Esperia where profitsincreased from €0.1m to €0.6m, with Compagnie Monégasque de Banque’sbottom line holding up well at €23.9m (€24.1m, but including €5.2m inone-off gains). Total income grew from €108m to €110.8m, due to therecovery in net interest income which climbed 19.5%, from €23.6m to€28.2m, against net fee and commission which was basically flat (at€71.6m, compared with €71.5m last year). Profit before tax, net of one-offitems, grew from €20.1m to €27.5m, partly as a result of reduced operatingcosts and provisions for loan losses and financial assets, down from€84.7m to €82.3m and from €3.2m to €1m respectively. Assets undermanagement at the year-end amounted to €12.7bn (€11.7bn), €5.8bn(€5.7bn) of which for CMB and €6.9 bn (€6bn) forr Banca Esperia.46 –