CRF AnnReport 2001_1-16

Consolidated Financial Statements
Consolidated Financial Statements 2001
Table of contents
Table of contents
Directors’ Report on Group Activities
Composition of the Group
Comments on consolidated results
The Group’s position
Participating interests
Outlook for the future
165
168
172
181
189
Consolidated Financial statements and Exhibits
Consolidated balance sheet
Consolidated profit and loss account
191
193
Notes to the consolidated financial statements
Part A - Valuation methods and accounting principles
Section 1 • Description of valuation methods and accounting principles
Section 2 • Fiscal adjustments and provisions
Part B - Information on the consolidated balance sheet
Section 1 • Loans
Section 2 • Securities
Section 3 • Participating interests
Section 4 • Property and equipment, and intangible assets
Section 5 • Other asset accounts
Section 6 • Borrowings
Section 7 • Provisions
Section 8 • Share capital, reserves, reserve for general banking risks and subordinated debt
Section 9 • Other liability accounts
Section 10 • Guarantees and commitments
Section 11 • Concentration and distribution of assets and liabilities
Section 12 • Asset management, custody and administration
Part C - Information on the consolidated profit and loss account
Section 1 • Interest
Section 2 • Commissions
Section 3 • Gains and losses on financial transactions
Section 4 • Administrative expenses
Section 5 • Value adjustments, value re-adjustments and provisions
Section 6 • Other consolidated profit and loss components
Section 7 • Other information on the consolidated profit and loss account
Part D - Other information
Section 1 • Directors and Statutory Auditors
194
198
199
205
207
213
215
216
217
221
225
226
228
232
236
237
238
239
240
242
243
244
Exhibits to the consolidated financial statements
Reclassified consolidated profit and loss account
Consolidated statement of changes in capital, reserves, negative differences on consolidated
and equity-valued holdings, reserve for general banking risks and net profit for the year
Consolidated statement of changes in financial position
Reconciliation between equity and net profit as appearing in the parent company
and consolidated financial statements of Cassa di Risparmio di Firenze SpA
Consolidated financial statements expressed in euros
245
246
247
249
251
Report of the Independent Auditors
255
Listing of Branches
257
163
Banca CR Firenze
The Group’s integrated distribution structure
Cassa di Risparmio di Firenze, often referred to herein as Banca CR Firenze, is a
limited liability company listed on the official Italian Stock Exchange as from
July 2000. It is the parent company of the Cassa di Risparmio di Firenze Banking
Group which comprises Cassa di Risparmio di Pistoia e Pescia, Cassa di Risparmio
di Civitavecchia and Cassa di Risparmio di Orvieto, as well as other important
specialised companies. It also controls Cassa di Risparmio di Mirandola.
With an network of 416 outlets, a portfolio of 900,000 customers and total customer borrowings of Lire 48,697 billion in 2001, the Group embodies an interregional union of banks which, by drawing on the strength which comes from
their being deeply entrenched in their areas, has consolidated its role as the banking pole in central and northern Italy. It directs its activities to the creation of
value for its customers and shareholders, within a context of excellence in service, which is assured by its integrated, multi-channel and multi-service distribution structure.
Besides having a very pervasive presence in its region, which has been boosted
by the opening of new branches, Banca CR Firenze is one of the most advanced
banks in the field of Internet banking, having its own portals dedicated to private customers and to businesses. In addition to its institutional site (www.carifirenze.it), the Bank can be accessed on line through its horizontal portal
www.liberamente.net and its BtoB (Business to Business) portal dedicated to
business enterprises (www.io-impresa.it). The experience gained in home banking operations has also led us to set up the Business to Consumers function using
an approach which encourages cross-selling of the Group companies’ products
and services.
With regard to services, our Group can propose numerous personalised solutions
in the banking, finance, insurance and consumer credit areas, thanks also to synergies which have been created with leading companies operating in the various
sectors, such as Findomestic (consumer credit), Centrovita Assicurazioni, Centro
Leasing e Centro Factoring.
By working with its shareholders of international renown, such as Sanpaolo IMI
and BNP-Paribas, the Group has been able to widen the range of products offered
to retail customers (asset management) through a multi-channel network and
expand its activities into business areas with a higher added-value element, such
as corporate finance.
10
Corporate profile
Banca CR Firenze
Group symmary information
Billions of lire
2001
2000
(pro forma)
48,697
11,741
15,544
48,049
13,471
13,625
1.3
-12.8
14.1
4,531
7,918
3,095
5,204
5,770
2,651
-12.9
37.2
16.7
Billions of lire
2001
2000
(pro forma)
%
Interest margin
including:
Commissions earned and other operating income
Operating profit
Net profit
ROE(*)
Risk ratio (**)
1,115
1,004
11.1
621
560
181
11.32%
1.74%
627
550
181
12.04%
1.84%
-1.0
1.8
0.0
Total borrowing
Administered funds
Managed funds
including:
Asset management
Funds
Insurance
%
(*) ROE of Banca CR Firenze: 10.57% in 2000 and 10.65% in 2001.
(**) Net doubtful loans / Net customer loans.
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Banca CR Firenze
Strategic activities in 2001
During the course of 2001, Banca CR Firenze further strengthened its distribution network, reinforcing its traditional channels of contact with clientele (that
is, branches) and starting up the Financial Promoters project which within the
space of a few months opened up new Financial Offices in Rome, Bologna and
the Marches region, with a total network expected for 2002 of around 60 promoters.
With a view to expanding the Group, we also increased our participation in
other companies.
During 2001, amongst other action, we acquired a further stake in Findomestic
Banca. On the basis of the agreements between Banca CR Firenze and Cetelem
SA – the controlling shareholders – this move has led to the two shareholders
each controlling 50% of this important consumer credit company.
Intensifying our links with Findomestic means that we have a further guarantee for the future development of the Group and have laid the groundwork to
execute new projects and boost sales synergies.
During the past year we also merged our subsidiary Credito Fondiario Toscano
SpA into the parent company. This company was specialised in building loans.
This was done to rationalise the Group’s structure, bringing within Banca
CR Firenze itself the business and the professional abilities which had been
developed by the merged company.
Francesco Gioli
“L’acquaiola”
Ente Cassa di Risparmio di Firenze collection
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Corporate profile
Banca CR Firenze
Group structure at 31.12.2001
Banca CR Firenze - Parent company
Group companies
Other subsidiaries
Banks and finance
companies where we
have an over-20% stake
CR Pistoia e Pescia
CR Mirandola
Findomestic Banca
51.0%
50.7%
50.0%
CR Orvieto
Centrovita assicurazioni
Centro Leasing
73.6%
51.0%
29.5%
CR Civitavecchia
Centro riscossione
Tributi Cerit
Centro Factoring
51.0%
CR Firenze Gestion
International
80.0%
CFT Finanziaria
67.5%
Infogroup
100.0%
100.0%
45.9%
Other companies
where we have
an over-20% stake
Professional
Ducato Servizi
47.8%
Arval Service
Lease Italia
22.5%
Centro
di Telemarketing
50.0%
Info 2B
Eptaconsors
Citylife
100.0%
20.2%
37.5%
Sviluppo Industriale
Pistoia
Et Group
30.1%
30.0%
Distribution
Production
Services
Data Centro
100.0%
Perseo Finance
60.0%
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Banca CR Firenze
The Bank’s share performance
The performance registered by Cassa di Risparmio di Firenze SpA’s shares in
2001 was satisfactory on the whole, especially if seen against a stock market
which had seriously deteriorated and then was made even more unstable by the
terrorist attack on New York. Its drop in value (-7%), which however was balanced by the comeback which started in the last two months of 2001 and continued in the first quarter of 2002, is in fact lower than the drop in the general index (MIB – 25.1%) and the banking sector index (MIB Banks –31.2%). Since
the date of listing, in July 2000, the share value has risen by 9.8%. On the average, 340,000 shares were traded each day, and in December the number of average daily trades (589,000) was above the general average by over 70%.
The good result seen by making the comparison with the two major indices and
the excellent performance in the early months of 2002 where the highest historical peak of 1.43 was reached, show that the Bank’s shares represent, let us
say, an autonomous investment case, to a large extent detached from the sector’s performance. Their market price reflects the performance of a Bank, and a
Group, which are attentive to the strategies which have been set and aim at a
correct distribution of capital, to such a point that a number of international
analysts have defined the Banca CR Firenze share as the most attractive small
cap investment to be found in the international banking scene.
Florence,
view of the Dome
and Giotto’s bell tower
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Corporate profile
Banca CR Firenze
The historical outline
Cassa di Risparmio di Firenze was formed in
1829 on the initiative of several of the most
brilliant figures in Florentine society and its
economic community who set the objective of
founding a bank to promote the idea that saving was a valuable attribute.
Since that time Cassa di Risparmio di Firenze
has always played an important role in the
development of the Florence and Tuscan area,
also supporting it financially through the
construction of important public works.
During the years following the second world
war the Bank participated actively in the
reconstruction of the country and dedicated
itself to supporting the economy and the
Pulchritudo
Amor
Voluptas
social fabric, in particular by lending to small
and medium-sized businesses which, still
the areas where it operates.
PICO DELLA MIRANDOLA
ALLA CORTE
DEL MAGNIFICO
In 1992 Cassa di Risparmio di Firenze – which
Mirandola, Centro Culturale Polivalente
15 dicembre 2001 - 17 febbraio 2002
today, constitute the backbone for activities in
in the preceding years had set up innovative
product companies such as Centro Leasing,
Centro Factoring and Findomestic – became
an SpA-type limited company, and still continued at the same on improving the
quality of its business management criteria and its organisational structure.
Alessandro Filipepi, called Sandro Botticelli
“Pallas and the centaur”
Florence, Uffizi Gallery
In 1998 the Cassa di Risparmio di Firenze Banking Group was formed. In July
2000 the shares of the parent company Cassa di Risparmio di Firenze SpA were
listed on the Milan Stock Exchange.
The Group, fortified by its traditions and attentive to the requirements of the
public it serves, is facing the new millennium as a new and dynamic reality,
with the firm aim of creating value.
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Banca CR Firenze
The Bank’s rating
Rating house
Fitch
Moody's
Short-term debt
Long-term debt
F1
P1
A–
A2
Banca CR Firenze
Share price performance
Banca CR Firenze
Shareholder composition
16