Banco Popolare approves the 2011 financial statements, largely influenced by the accounting recognition of the value adjustments on the goodwill recorded, on the occasion of the completion of thebusiness combination of Banco Popolare di Verona e Novara with Banca Popolare Italiana on 2007 July XNUMX.
The recognition of these adjustments responded to the deterioration of the macroeconomic scenario in which, after the end of the first half year, the effects of the growth of sovereign risk in the euro area, the low level of market rates, the changes in the regulatory framework And the uncertainties weighing on the prospects for economic growth for the next few years.
In any case, after the aforementioned adjustments the Group closed the year with a consolidated net loss of 2.257,3 million euro. Excluding the extraordinary impact of a purely accounting nature represented by the devaluations described, Banco Popolare has confirmed its earning capacity by realizing in a difficult context a consolidated net income of 574 million euros compared to 308 million in the previous year (+86,4%).
Excluding the impact of the impairment of goodwill and the contribution of Italease, the net profit of the stand-alone Banco Popolare would be 700,7 million against 255,5 million in the previous year. The evolution of the main consolidated balance sheet aggregates shows that direct deposits as at 31 December 2011 reached 100,2 billion. Excluding the component referring to Banca Italease, repurchase agreements and deposits represented by bonds and other securities, the aggregate of deposits "in the strict sense", mainly current accounts, grew by 0,8% from the beginning of the year. In particular, deposits from households and small businesses show an increase of 5,2% compared to the end of 2010.
Market trends, negatively affecting the valuation of financial instruments, led to a reduction of indirect deposits to 64,4 billion, down by 15,5% compared to the end of 2010. Gross loans amounted to 97,5 billion. During 2011, the Group continued its strategy of directing loans to its traditional customers, guaranteeing greater support to households and Small Business Operators, with an increase respectively of 9,4% and 1,5% compared to end 2010.
During the year Banco Popolare continued to strengthen its capital position. The capital increase completed at the beginning of the year and the subsequent managerial actions allowed the Group to improve its Core Tier 1 ratio by around 140 basis points. The index has in fact passed from 5,7% at the end of 2010 to the current 7,1%. As at 31 December 2011, the Tier 1 ratio reached 8,3% (7,2% as at 31 December 2010) and the Total capital ratio stood at 11,7% (10,7% the final figure at the end of the previous exercise).
The process of capital strengthening also continued after the end of 2011 with the completion, on 20 February 2012, of therepurchase operation by Banco Popolare of Tier 1 and Tier 2 securities of own issue for over 1,2 billion of nominal value. As a result of the transaction, the pro-forma Core Tier 1 Capital Ratio reaches 7,3%.
The significant capital strengthening already achieved strengthens the Group's commitment in the subsequent stages of the planned process, first of all obtaining the validation for the adoption of internal models for measuring market and credit risks.
