| GROSS OPERATING PROFIT HELD UP WELL, SUPPORTED BY COST CUTTING HELPING TO OFFSET HIGHER LOAN LOSSPROVISIONS Gross operating profit held up well in the second quarter at €2.5 billion underpinning the resilience of the Group Effective cost management led to a 4.6% drop in operating costs in2Q12 versus 2Q11, and -2.6% in 1H12 Y/Y Loan loss provisions increased to €1.9 billion in 2Q12, whilst the overall coverage ratio in Italy went up in the quarter Net profit for 1H12 stands at €1.1 billion, down by 18.0% Y/Y Funding gap further improving, with deposits up throughout the Group (+2.8% Q/Q), notably in Italy Sound liquidity position: available unencumbered assets covering more than 100% of wholesale funding maturing within 1 year Conservative risk policy leads to a diversified exposure to Sovereign debt mirroring our regional presence; Italian exposure stable in the quarter Core Tier I ratio stands at a solid 10.4%, and CET1 with full uploading of Basel 3 is above the 2012 target 1H 2012 KEY FIGURES Group Net Profit: €1.1billion (-18.0% Y/Y), of which €477 million from buy-back of Tier I and Upper Tier II bonds in 1Q12 Revenues: €13.4 billion (-0.2% Y/Y),of which €697 million from buy-back of Tier I and Upper Tier II bonds Operating Costs: €7.6 billion (-2.6% Y/Y) Cost/Income ratio at 56.8% (-1.4 p.p. Y/Y) Gross Operating Profit: €5.8 billion in 1H12 (+3.1% Y/Y, -9.4% net of buy-back) Loan Loss Provisions: €3.3 billion (+23.6% Y/Y) Balance Sheet and regulatory capital: Core Tier I at 10.4%, well above regulatory requirements 2Q 2012 KEY FIGURES Group Net Profit: €169million (-66.9% Y/Y), -61.3% Q/Q net of the €477 million from buy-back of Tier I and Upper Tier II bonds in 1Q12 Revenues: €6.2 billion (-3.2% Y/Y) down by 2.5% Q/Q excluding the €697 million from buy-back of Tier I and Upper Tier II bonds Operating Costs: €3.7 billion (-4.6% Y/Y, -2.4% Q/Q) Cost/Income ratio at 59.9% (-0.9 p.p. Y/Y, flat Q/Q excluding 1Q12 bond buy-back) Gross operating profit: €2.5 billion (-1.0% Y/Y), -2.5%Q/Qexcluding bond buy-back in 1Q12 Loan Loss Provisions: €1.9 billion (+62.2% Y/Y, +36.6% Q/Q) (Press Release 1 half 2012 Group Results - see attachment). | |
