consolidated annual report - Gruppo Banca Sella

2.3 Dealing securities
Book value Market value
1. Debt securities 1.047.162 1.047.290
1.1 Government securities 806.416 806.416
- quoted 806.416 806.416
- unquoted - -
1.2 Other securities 240.746 240.874
- quoted 193.020 193.018
- unquoted 47.726 47.856
2. Equities 9.761 9.761
- quoted 9.675 9.675
- unquoted 86 86
Total 1.056.923 1.057.051
Capital gains as at 31/12/2004 amount to a total of € 0,1 million.
According to a change of the accounting principles regarding securities, which passed from the lesser between book value and market value to market value only, here below are shown
the effects resulting from the change with respect to the previous method (figures in euro million):
Previous accounting principle Current accounting Impact 2004
(lesser between book value and market value) principle (market value)
Capital gains and write-ups 0,30 1,13 +0,82
Capital losses -1,28 -1,47 - 0,19
Total -0,98 -0,34 +0,64
The global positive impact of € 0,6 million includes two components: € 0,3 million relevant to previous financial years (capital gains matured in previous financial years) and € 0,3
million relevant to the current financial year.
The global impact of the change in method relevant to previous financial years amounts to € 0,6 million, whereas capital gains relevant to 2004 amount to € 0,3 million.
Unrecorded capital gains on unquoted securities amounted to € 0,1 million.
2.4 Changes in dealing securities
A. Opening balance 1.029.707
B. Increases 69.979.060
B.1 Purchases 69.954.036
- Debt securities: 36.868.165
- government securities 31.477.097
- other securities 5.391.068
- Equities 33.085.871
B.2 Write-ups and revaluations 1.149
B.3 Transfers from investment securities portfolio -
B.4 Other changes 23.875
C. Decreases 69.951.844
C.1 Sales and redemptions 69.948.323
- Debt securities: 36.846.556
- government securities 31.526.909
- other securities 5.319.647
- Equities 33.101.767
C.2 Write-downs 1.468
C.3 Transfers to investment securities portfolio -
C.4 Other changes 2.053
D. Closing balance 1.056.923
Dealing securities are held by the companies of the Group for treasury purposes or for customers’ dealing purposes and are stated in Balance Sheet assets for an amount of € 1.056,9 million.
The moderate increase, if compared to the amount of € 1.029,7 million of the previous financial year, is due both to the slight decrease of Banca Sella’s securities portfolio (amounting to €
851,2 million) and to the slight increase of the securities portfolio of the other banks of the Group.
The already small quantity of “Equities” was further diminished during the financial year, passing from € 15,9 million in 2003 to € 9,8 million in 2004.
Write-downs for capital losses on dealing securities portfolio, emerging from the comparison between book values and the arithmetic means of the prices observed in the month of December,
were up to € 1,5 million (item C.2).
From a similar comparison emerge unrecorded capital gains for € 0,1 million.
Other changes in increases and decreases (items B.4 and C.4) represent profits and losses on the dealing of securities and on exchange rates, positive and negative differences of exchange rates
on currency positions and discounts on issues (including profits and losses).
Consolidated annual report 2004 - 233