Akros – 2016 Financial Year Results Approved

The Board of Directors has approved the 2016 Financial Statements

 

• Net income from banking activities amounted to €62.6 million (€76.8 million as at 31 December 2015); after charges of €3.7 million relating to the contribution to the National Resolution Fund, net profit amounted to €6 million (€16.6 million as at 31 December 2015).The Common Equity Tier 1 ratio was 18.6% net of profit for the 2016 financial year (18.9% including that profit), up from 14.7% as at 31 December 2015.
• Banca Akros confirmed its leading position in market making and in bond and equity brokerage, ranking 2nd in the list of brokers active on behalf of third parties on Italian bond markets, 4th on the Electronic Stock Exchange (MTA) of the Borsa Italiana, 3rd on the ETF Plus market, 1st on the SeDeX market and 1st in options on the FTSE MIB index (Source: Assosim).
• The Bank participated in the listing of ENAV and the SPAC Innova Italy 1, as well as in the placement of the Onorato Armatori and Salini Impregilo bonds and many issues in the Financial Institutions and Supranationals sectors.
• In the Advisory activities, the “Multiseller NPL” programme was successfully launched, the first open multi-originator platform for the securitisation of bad loans of Italian banks, backed by mortgage guarantees, which, to date, has been joined by six banks, including the Parent Company, as well as the conclusion of an agreement with SACE for collaboration in financing operations organised by the Bank to support the international growth of Italian companies of excellence.
• In Private Banking, assets under management amount to approximately €1.6 billion.

Milan, 2 February 2017 – The Board of Directors of Banca Akros – Investment bank and Private Banking of the Banco BPM Group, chaired by Graziano Tarantini and led by the Chief Executive Officer Marco Turrina – approved the results as at 31 December 2016.

“In a market context that has seen significant tensions and phases of high volatility, also reflected in a marked contraction in the volumes traded on the main markets of activity, the development of operations and careful risk management ensured positive results were achieved in terms of profitability, albeit down on the previous year, and high levels of capitalisation and liquidity. During the year, we pursued expansion of the customer base, including through progressive internationalisation of commercial efforts, and offering products and services with innovative features,” commented the Chief Executive Officer Marco Turrina.

The Bank achieved a net income from banking activities of €62.6 million (€76.8 million in 2015). After charges of €3.7 million relating to the contribution to the National Resolution Fund, net profit amounted to approximately €6 million (€16.6 million in 2015).

As at 31 December 2016, the Common Equity Tier 1 ratio was 18.6% net of profit for the 2016 financial year (18.9% including that profit), up from 14.7% as at 31 December 2015. The leverage ratio was 11% (7.6% as at 31 December 2015).

Market making and trading activities saw a positive contribution in the trading of equity derivatives and government bonds, domestic bonds and Eurobonds. In April, the Bank participated, as Co-Dealer and market maker, on behalf of the Ministry of Economy and Finance, in the placement of the ninth issue of BTP-Italia, expiring in 2024, on the Electronic Bond Exchange (MOT) of the Borsa Italiana. The development of trading in financial risk hedging and management instruments (interest rate, exchange rate and commodity) for institutional and corporate customers continued positively, including as part of joint coverage with the Parent Company in Corporate & Investment banking, with special attention to the specific target represented by the Mid Corporate segment.

In brokerage on behalf of third parties (Source: Assosim), the Bank:

• Consolidated its presence in the bond markets, ranking 2nd in the list of brokers operating on behalf of third parties on Italian bond markets and, in particular, 3rd on the DomesticMOT segment and 2nd on the EuroMOT segment of Borsa Italiana (with a market share of 15.1% and 21.1%, respectively). The bank was also 3rd on the EuroTLX market (with a market share of 17.8%) and 1st on the Hi-MTF market and on the ExtraMOT market (with a market share of 27.4% and 25.4%, respectively), partly due to the contribution of SABE, the proprietary system for the automatic search for dynamic best execution.
• Was confirmed in 4th place on the Electronic Stock Exchange (MTA) of the Borsa Italiana (with a market share of 6.8%), 3rd on the ETF Plus market (with a market share of 5.9%) and 1st on the SeDeX market (with a market share of 30.7%).
• Ranked 1st in options on the FTSE MIB index (with a market share of 12.7%).

The offer to customers of brokerage services on equity markets also relies on the activities of ESN – European Securities Network LLP, the European equity research and trading partnership set up by Banca Akros with seven other independent European investment banks active in their respective national markets.

In the Equity Capital Market business, Banca Akros acted as Joint Global Coordinator and Joint Bookrunner in the placement on the AIM Italia market of the Special Purpose Acquisition Company (SPAC) Innova Italy 1, successfully concluded in October for a total of €100 million, and as Co-Lead Manager in the listing of the ENAV company on the MTA market. The Bank also assisted the GPI company as Nominated Advisor in its listing on the AIM Italia market, and the Europa Investimenti Special Situations company in the acquisition of a controlling stake in the company Mediacontech, listed on the MTA. Furthermore, the Bank acted as Financial Advisor and Placing Agent for Fiera Milano, as part of the €70 million share capital increase, and as Coordinator of the takeover bid promoted on the company Gruppo Green Power.

In the Debt Capital Market, the Bank participated as Joint Lead Manager and Bookrunner in the placement of a fixed-rate bond issue by Onorato Armatori, expiring in 2023, for a total of €300 million, with institutional investors, and, as Co-Manager, in the placement of a fixed-rate bond issued by Salini Impregilo, expiring in 2021, for a total of €600 million. In the Financial Institutions sector, Banca Akros participated, as Joint-Lead Manager and Bookrunner, in the covered issue made by the Parent Company BPM for €750 million at 7 years in June. The Bank was also involved in more than twenty issues by leading international issuers, including the European Investment Bank and Germany’s KFW. In the area of Public Subscription Offers, Banca Akros participated, as sole Co-Dealer, in the placement of two US dollar issues by the World Bank with the retail public, also through the Parent Company’s network.

Advisory activities included the launch of the “Multiseller NPL” programme, the first open multi-originator platform for the securitisation of bad loans, backed by mortgage guarantees, by Italian banks, promoted by Banca Akros, as Arranger, and by Prelios Credit Servicing, as Master and Special Servicer. The operation has so far been joined by six banks, including the Parent Company. Credit Advisory activities continued successfully with the conclusion of four new transactions, two of which were in new food processing sectors. The agreement concluded with SACE is also notable, envisaging cooperation in financing operations to support the international growth of Italian excellence, particularly in the food processing sector, in which Banca Akros will act as advisor, arranger and agent for the structuring of syndicated financing operations.

In the Private Banking activities carried out at the Milan office and at the Rome and Turin branches, the Bank confirmed its focus on high net worth customers by offering personalised asset management services – in an “open architecture” context – and administration and order collection services featuring high capacity for execution on domestic and international markets. Total assets under management amounted to approximately €1.6 billion at the end of the year.

 

Proposed allocation of the profit for the year

The allocation of the profit for the year will be submitted to the Shareholders’ Meeting for approval as follows:

• Retained earnings    €3,010,537
• Dividends (*)             €3,036,403
• Total                         €6,046,940

(*) The unit dividend for the 2016 financial year is €0.077 on 39,433,803 issued shares with a nominal value of €1 per share.

 

Declaration of the Manager in charge of financial reporting

Luigi Lanzuolo, as Manager in charge of financial reporting, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the records, books and accounting entries.

 

The financial statements as at 31 December 2016 will be made available within the terms of the law.