Banca Akros shareholders’ meeting press release
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- Net income from banking activities of €79.3 million (€60.7 million as at 31/12/11; +31%)
- Profit from continuing operations before tax of €18.1 million (€5.1 million as at 31/12/11); Net profit of €9.5 million (€1.5 million as at 31/12/11)
- CORE TIER1 ratio of 21% (17% in 2011)
- Having confirmed its leading presence in bond market making and brokerage and on the Electronic Stock Exchange (MTA) of the Borsa Italiana, the Bank participated in the main capital market transactions carried out in Italy in 2012
Milan, 27 March 2013 – The Shareholders’ Meeting of Banca Akros – Investment bank and Private Banking of the Banca Popolare di Milano Group – chaired by Graziano Tarantini and led by Chief Executive Officer Marco Turrina, has approved the 2012 financial statements.
“In the context of the general weakness of the economic situation at the international level seen in 2012, Banca Akros developed its strategy of specialisation and focus on offering services and products that meet customers’ requirements, consolidating its recognised presence in its chosen areas of operation,” commented Marco Turrina, Chief Executive Officer of Banca Akros
With regard to market making activities:
- The contribution of activities on government bonds, domestic bonds and Eurobonds was particularly significant; there was also notable a participation, as Co-Dealer and market maker, in the placement on the Electronic Bond Exchange (MOT) of the inflation-linked “BTP-Italia”, which was subscribed for over €18 billion. Against a progressive decrease in the credit spread levels of sovereign and bank bonds, despite phases of high volatility, the Bank took advantage of positive opportunities to enhance and optimise the risk/return profile of its securities portfolio.
- Operations with companies and institutional counterparties on financial instruments to hedge interest and exchange rate risks (swaps and options on interest rates and currencies) were significant. There was also continued development of the offering to corporate customers of financial instruments to hedge price risks on commodities, particularly in the energy sector. In line with the indications of the Group’s Business Plan, the joint coverage project with the Parent Company on corporate banking (“hedging”) and corporate finance (Equity Capital Market, Debt Capital Market, M&A and Advisory) for corporate customers was also launched.
- The arrangement of indexing structures linked to the issue of capital-guaranteed bonds was positively resumed. These are competitive and consistent with customer requirements, including in terms of transparency, in support of the direct and indirect funding of banking networks.
- In derivative trading on Italian equities and indices, the Bank confirmed its position as a leading operator in regulated markets, where it acts as a market maker on stock options and stock futures, and in the OTC derivatives market on Italian equities (in 2012 it once again ranked first in the classification published by “Risk Italia” magazine).
In brokerage on behalf of third parties on regulated markets (Source: Assosim), Banca Akros:
- Consolidated its leading presence in the bond markets, ranking 2nd and 3rd in the DomesticMOT and EuroMOT segments of the Borsa Italiana (with a market share of 15.7% and 14.5% respectively), 2nd in the EuroTLX market (with a market share of 18%) and 4th in the Hi-MFT market (with a market share of 12.8%).
- Confirmed its 5th place on the Electronic Stock Exchange (MTA) of the Borsa Italiana, recording substantial stability in its significant market share held (6.5%) and on the ETFPlus market for the trading of ETFs – Exchange Traded Funds (with a market share of 5.9%).
- Ranked 5th on the regulated derivative markets of the Borsa Italiana in futures and options on the FTSEMIB stock index and 1st in stock futures on the IDEM market; it also ranked 1st, with a market share of 59%, on the IDEX energy derivatives market.
In terms of international customer service initiatives, ESN – European Securities Network, the equity research and trading partnership set up with eight other independent European investment banks active in their respective national equity markets, confirmed its position as a key player at the pan-European level, ensuring investors an absense of conflicts of interest, independence, and broad corporate access, thanks to its coverage of 750 companies by 110 analysts.
In the Equity Capital Market business, in an economic situation that remains particularly challenging, the Bank participated, as Guarantor and Placing Agent, in the public subscription and share offer aimed at listing the company Brunello Cucinelli and, as sponsor, in the listing of the shares of the closed-end real estate mutual investment fund Mediolanum Real Estate. Banca Akros also participated in the placement and underwriting syndicate for the capital increase of Unicredit, as Co-Manager, in the placement and underwriting syndicate for the capital increase of Unipol and Fondiaria SAI, as Co-Lead Manager, and in the takeover bid of Edison shares, as Sole Trader.
As part of its Advisory and M&A activities, the Bank assisted the VIVIGAS company in the acquisition of AEMME Linea Energie from the AMGA Legnano group. Securitisation activities for medium-sized banks continued, with the conclusion of three securitisation transactions, including one with “multi-originator” characteristics, as well as the credit advisory one with the structuring of two credit facilities in the energy sector, one of which involved SACE.
In Debt Capital Market activities, Banca Akros participated, in the Management Group and as Guarantor and Placing Agent, in the ENEL bond issue placed on the retail market in February (PSO) for a total of €3 billion, and in the Atlantia PSO placed in November; participation in the institutional offer of the company A2A, as well as in many transactions, mainly of primary European financial issuers, including, as Joint Lead Manager and Bookrunner, four issues of the European Investment Bank.
In the Private Banking business, the strategy of focusing on selected customer targets in the affluent and high net worth segments with a specialised offer in personalised wealth management was confirmed; the value of total assets exceeded €2 billion at the end of the financial year (+9% compared to 31 December 2011), with average assets per customer of more than €1 million. The profitability contribution is also notable, deriving partly from the commission component linked to the positive management performance, which was achieved due to an asset mix consistent with the financial market trend.
An examination of the main balance sheet aggregates shows the following:
- the Core Tier 1 Ratio was approximately 21% at the end of 2012 (17% in 2011)
- no goodwill or other intangible assets with an indefinite useful life are included on the balance sheet
- the Bank does not hold positions in structured credit instruments and ABS/CDO-type securities
An examination of the main income statement aggregates shows:
- net income from financial activities of €79.3 million, up by approximately 31% compared to 31 December 2011
- profit before tax, already net of impairment or significant losses on available-for-sale financial assets and equity investments, of €18.1 million (€5.1 million as at 31 December 2011)
- net profit of €9.5 million (€1.5 million as at 31 December 2011)
The first months of 2013 show a positive business trend.
The Shareholders’ Meeting also approved the plan for the merger of Akros Alternative Investments Società di Gestione del Risparmio S.p.A into Banca Akros S.p.A, as already resolved by the Shareholders’ Meeting of Akros Alternative Investments Società di Gestione del Risparmio S.p.A (held today). The reasons for the transaction derive from the successful liquidation of all the funds managed by Akros Alternative Investments.
Reclassified income statement 2012 2011 Changes (€/million) in value in % Net income from banking activities 79.3 60.7 18.6 31% Profit before tax 18.1 5.1 13.0 >100% Net profit 9.5 1.5 8.0 >100% The Manager in charge of financial reporting declares that the accounting information contained in this press release corresponds to the records, books and accounting entries.