03/25/2003
The Mediolanum Group discloses FY 2002 Final Results
Net profit: Italy € 121 Million (+0.5%), Consolidated € 82 Million (-21%)
Always positive net inflows for the twelve months at € 3,059 million
Embedded value increase of 3% to € 1,816
Consolidated assets under administration € 21,014 Million (+0.5%)
Dividend unchanged from last year: € .10 per share
The Board of Directors of Mediolanum S.p.A. met today in Basiglio and approved the draft of the Annual Report and the Consolidated Financial Statements for the Full Year 2002.
The General Shareholders' Meeting for approval will take place
April 29 for the First Call and
May 6 for the Second Call.
The ongoing negative situation of the markets and their prolonged uncertainty have not impeded the Mediolanum Group from closing the year with commendable results. Speaking of which, the Board of Directors applauds the managers, the financial advisors, the employees and all associates for the effort made in achieving these results.
Aside from the statutory figures, the most noteworthy result was the extraordinary tenacity of
Embedded Value, calculated by Tillinghast-Towers Perrin, that contrary to the trend in the sector, registered an increase of
3%, from €
1,768 million in 2001 to €1,816 million, after the acquisition effect.
The
Value of New Business from Life and Asset Management products, including the increased value generated by the conversion of old products into new services, was positive at €
236 million.
With reference to the the
group's consolidated results, including the
effects of the new ventures:
- Consolidated Assets under Administration, thanks to the excellent results of the Net Inflows, amounted to € 21 billion, increasing by .5% in the twelve months (€ 20.9 billion as at December 31, 2001), notwithstanding the significant downward pressure coming from the negative performance of the stock markets.
- Consolidated Net Profit was € 82 million, a decrease of 21% compared to the results at year-end 2001 (€ 103 million).
It should be noted that the decrease with respect to the last fiscal period is exclusively attributed to the investments made in the new ventures in Spain, Germany and in Private Banking.
In fact, with reference to core business Italy, the quality of the model and the commercial strategy have permitted the maintenance of the profitability of the business, despite the difficulty in the overall economic-financial situation.
- Net Inflows, in fact, were positive at € 3,059 million. In detail, € 1,674 million with respect to managed savings and € 1,385 million relating to administered savings.
- Net Profit of the Core business Italy was at € 121 million, an increase of 0.5% with respect to the results registered last year (€ 120).
In particular
- Revenues were up for the period 30% (€ 2,444 million compared to € 1,885 million) above-all from the effect of Gross Premiums Written, that in total came to € 2,123 million, compare to € 1,602 million in 2001 (+33%). New Business was particularly significant, registering an increase of 38% (€ 1,414 million compared to € Euro 1,023 million for last year). Commissions generated by Mutual Funds and Managed Accounts also highlighted notable progress with respect to 2001, at 7% (€ 217 million compared to € 203). This brilliant result can be attributed to the optimisation of the margins within the compartments and to the improvement of the asset mix.
The profitability of the Bank business resulted in an increase of 13% in revenues, from € 85 million to € 95 million.
- Concerning Costs, it should be noted that general and administrative costs increased in the period at a percentage slightly higher than inflation (+3.6%) (€ 172 million compared to € 166 million), reflecting the important cost containment made in all areas.
Other important indicators:
- There were 339,000 total Bank Accounts as at December 31, 2002 compared to 297,000 as at 31 December last year, with an increase of 14%.
- Total Customers as at December 31, 2002 came in at 761,300 Primary Account Holders compared to 714,700 at the same date last year, with an increase of 7%.
- As at December 31, 2002 the Sales Network of Banca Mediolanum consisted of 5,015 advisors (a decrease of 10% on the total of 5,585 for the same date in 2001). To be noted is the continual progress in the quality of the network, with 4,114 licensed financial advisors, an increase of 7% with respect to 3,842 in 2001, setting an historical record for Banca Mediolanum. Adding to these the 1,402 Partner Time insurance agents, the Sales Network of the Mediolanum Group reached a total of 6,417 individuals.
In the draft of the Annual Report approved by the Board of Directors today, the profit of the subsidiaries was accounted for by applying the "accrual method", according to which profit is accounted for in the same period in which it is produced.
The above criteria does not generate any economic effect regarding the consolidated net profit nor with reference to the Core Business Italy.
The accounts of the Holding, also as a result of new accounting critieria, present a net income of € 186 million.
The Board of Directors will propose to the Shareholders' Meeting the distribution of a
dividend of €
.10 per share, exactly the same as the one of last year, to be payable starting from
May 22.
Attached:
Download: Reclassified Income Statement and Balance Sheet
Download: Balance Sheet
Milan, March 25, 2003
Last update: 25 March 2003 -15:00
