THE PRESS OF BANCA POPOLARE DI VICENZA
It was held the Annual Meeting of Shareholders of Banca Popolare di Vicenza, chaired by Stephen Lamb, attended by up to a maximum of 3,289 shareholders (physically or by proxy), representing 11% of the share capital.
on the points on the agenda, the meeting approved:
1) with 89.44%, the financial statements at December 31, 2015:
– report of the Board of Directors on operations;
– report of the Statutory Auditors and the Independent Auditors;
2) with 72.76%, the remuneration and incentive policies.
President Dolcetta – as a result of specific interventions of some members – has proposed to the shareholders , pursuant to art. 2393, co. 2 cod. civ., to authorize the action of responsibility “of those who have held the position of director, general manager or mayor in office at the time when any illegal acts were made reflected in the financial statements at 31.12.2015.”
the proposal was not approved by the shareholders, having registered the 38,06% of votes to the 18.65% of the votes against 43.29% of abstentions.
Financial Statements at December 31, 2015
The Assembly approved the Financial Statements at 31 December 2015, which closed with a net profit at the consolidated level of -1.407 billion of euro due mainly to the extraordinary measures reconnaissance of the Group’s balance sheet arrangements that have led to record adjustments and provisions for over 2.3 billion euro. In particular have been recorded:
– € 1,333 million of impairment losses on loans to customers, due to the implementation of the results of the survey of funding deemed “related” to purchase / subscribe BPVi actions and the evolution of the problem loans that was affected by a more conservative approach to credit scoring processes.
– These adjustments have made it possible to raise the covers of impaired loans, which increased from 37.9% at 31 / 12/2014 of 31/12/2015 to 42.4% (+450 bp), with one of the NPL coverage including excerpts 59.3% (+525 bps) and probable failures 25.8% (+622 bp).
– 171 million euro of impairment losses on financial assets available for sale.
– 334 million euro of impairment losses on goodwill and other intangible assets, related to past acquisitions (residual goodwill recognized amounted to 6.2 million euro).
– 513 million euro of provisions for risks and charges, mainly relating to the survey carried out on heritage and additional legal risks.
the Group’s ordinary business highlights, however, a slight increase in revenues “core” (net interest income and net commissions) compared to 2014 (+ 1.7% y / to); in detail, net interest income was substantially in line with the previous year (-1.4% y / y), while net commissions recorded an increase (+ 7.0% y / y). Operating income overall have slightly down on the previous year (-2.3% y / y), mainly due to the reduction in net profit contribution of property portfolios (-12.7% y / y) and other net income (-68.6% y / y).
operating costs net of extraordinary items were substantially stable (+ 0.6% y / y). The actual data shows a growth of 12.7% y / y, which was affected by the contributions required for the resolution of the banking crisis and the protection of depositors, the professional fees incurred for buoyancy and reconnaissance asset for the operation of transformation, listing and capital strengthening in progress, as well as charges related to staff leaving incentives and retention.
With regard to the main balance sheet, the Group’s total collection, made up of the the sum of direct and indirect deposits amounted to 31 December 2015 EUR 36.5 billion, which is down by 19.4% compared to 45.3 billion euro at 31 December 2014. in detail, direct deposits, the net of repurchase agreements carried out with central counterparties, amounted to 21.9 billion euro, down 23.3% on the end of 2014. the reduction amounts of direct funding should be paid in relation to phenomena that have affected the Bank in correspondence of extraordinary events (search of the Guardia di Finanza in late September 2015) and the banking system as a whole (media impact Decreto Salva banks in late December).
in the first few weeks of 2016 it was witnessed a normalization of the Group’s liquidity profile. The LCR indicator is above the regulatory minimum in both January and February 2016.
Indirect deposits, net of BPVi actions under custody and administration, amounted to 14.6 billion euro (-2, 4% on 2014), with the fund of assets under custody declined by 9.7%, while growing by 6.7% asset management and retirement.
net loans to customers amounted to 31 December 2015000000000-25.2000000000 of euro, down by 10.4% on outstanding amounts as at 31 December 2014, particularly reflecting both the reduction in repurchase agreement transactions is of major value adjustments on loans to customers by the Group in ‘ exercise. Gross lending, excluding repo transactions with central counterparties and related margin, amounted to 28.8 billion euro, down 3.7% on the end of 2014.
As regards capital ratios, the Common Equity Tier 1 ratio (CET1 ratio) amounts to 6.65% (10.44% at 12/31/14) and the total capital ratio amounted to 8.13% (11, 55% at 31/12/2014). The decrease compared to 2014 is mainly due to the loss for the year and the “prudential filter” that has been applied, in line with requests made by the ECB.
The CET 1 Ratio and Total Capital Ratio at December 31 2015 are higher than the minimum regulatory requirements of Article. 92 of CRR, although are confined at levels below the target values set by the ECB as part of the SREP. In relation to that deficit, THE Board It has already approved the start of all activities related to the transformation in S.p.A. (Already approved by the Extraordinary Meeting of March 5 U.S.), the listing of the shares on the MTA managed by Italian Stock Exchange and to the realization of a capital increase of 1.5 billion euro. Including the effects of the proposed capital strengthening, the CET 1 ratio would amount to a 12% higher value, significantly above the ECB’s target SREP (10.25%), and the total capital ratio over 14%.
Outlook
BPVi Group in the coming months will be busy on the implementation of the ongoing turnaround and which provides, after the almost complete renewal of top management, the transformation of the Bank into a limited company shares, the share capital increase of EUR 1.5 billion and the IPO.
in terms of operational management BPVi Group in 2016 will be focused on the implementation of the actions, however, in large part already underway, and on the achievement of economic and financial targets set in the new Business Plan 2015-2020 and which provide, for the year 2016, achieving capital ratios and liquidity ratios well in excess of the regulatory minimum target values (CET 1 ratio above the expected 12% compared to a regulatory minimum requirement set by the ECB to 10.25% and LCR-liquidity Coverage Ratio liquidity ratio well above the regulatory minimum of 70% for 2016) thanks to the benefits resulting from the planned capital increase.
the first part of 2016 will be characterized by a reduction in total revenues due to the reduced contribution of the result of the property and, to a lesser extent the portfolio, for a compression of net interest income and commissions. Operating costs are expected in line with the previous year. The cost of credit is expected to improve as a result of the evaluation carried out in 2015.
remuneration and incentive policies
The shareholders also approved: (i) the report on remuneration policies and practices and incentives of the Banca Popolare di Vicenza Group (ii) the criteria and limits (in terms of annuities and maximum amount) for the determination of the compensation to be granted in the event of early termination of the employment contract or early termination of charge, proposed by the document of the remuneration policies of 2016 and described in part III of this document.
the report on remuneration and incentive policies, prepared in accordance with applicable regulations, it was made available in compliance with applicable regulations.
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