banca di roma

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BANCA DI ROMA: Dividends Get Back

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1998 has surely represented an important year for the Group Banca di Roma, not only because of the realization of profits again, hence dividends distribution, but overall for it has been clearly proved the excellence of the industrial plan and its matter-of fact feasibility. If in fact the setting-up of the industrial plan is a needed step, nevertheless the most difficult aspect is its implementation; indeed, being studied theoretically, industrial plans on a hand do not take often in account the practical aspect and on the other hand putting them into effect requires anyway a special attention by the entire enterprise.
Its realization depends a lot on the “commitment”, that is on the devotion the entire enterprise, starting from the top management, devotes to it.
It happens often that the personnel, being engaged in solving every day problems, does not deem to have enough time to devote to 'other matters', being not aware of the importance the 'other matters' have for the firm development. Indeed many are the industrial plans, very good on paper, that fail just for the top management inability in involving the firm structure in it.
Far aware about this risk, the Banca di Roma has devoted many “energies” in order to make plan was shared and accepted and so effectively implemented.
The results achieved are the most evident proof of the goodness of the undertaken action. Being not conditioned by external factors the Bank worked according the strategic lines outlined in order to predefined profitability targets.
The assets and incomes development achieved by the Bank in 1998 reflects indeed regularly the first effects of the important structural interventions set out in order to commercial focalisation, organization models innovation, monitoring and govern mechanisms and costs; such investments allowed to end the running year with a net profit of 653 billions, higher by +13% than the same plan estimate.
The achieved result is more meaningful if considering the dynamics of the main profit and loss account aggregates determining it in comparison with the targets of the three-year program:
- the running gross data, equal to 2.462 billions, increased by 66,4 per cent as regards to 1997 and it's higher by 30 per cent as regards to the plan target;
- the interest margin, equal to 3.197 billions, resulted in line with 1997 and with the plan extimation;
- the total of the proceeds from financial transactions and services, equal to 2.300 billions, increased by 35 per cent as regards to the last running and by 43 per cent as regards to the plan target; over such result it has influenced in a particularly incisive measure the exponential growth of the profitability coming from the managed savings activities;
- the target of containment of the running and personnel costs has been fully reached since the administrative expenditures has set at 3.035 billions with a 11% cut in line with the plan.
The structural interventions deeply changing the Bank have surely determined its more incisive presence in markets and a satisfying profitability starting from the first re-launch year and being a solid premise for the strategic turning represented by the close partnership with the big international Group ABN Ambro and the Banca Popolare Veneta.
The agreement they came to allows in fact the Banca di Roma boasting a new first rate stable partner, and so relying on a wide network in defence of international markets, valorizing the controlled Banca Nazionale dell'Agricoltura and setting the makings for a wider presence in the north-east area of the country.
By the commercial point of view it is to underline the collaboration with the Holland partner will lie mainly over a co-operation relationship – exclusive for Italy in the banking investment sector.
The services sector has represented on the other hand one of the areas where already in 1998 special commercial actions have been undertaken, trending to increase the spread of strategic products, wanting to catch fully the opportunities supplied by markets.
In this range the Bank has adopted regular and aggressive lso supported by several internal promotion campaigns, aimed to valorize the teamwork so to
focalize the team targets – directed to the segments of families and enterprises.
It is to underline furthermore how the attention of the Bank is not only directed to the domestic market, but it is directed also to the development of activity abroad.
Even international front, notwithstanding the so well-known turbulence happened on the international markets, featured by meaningful events provoking perceptible side effects over the practiced activity, the foreign branches achieved in 1998 satisfying results.
It has been indeed recorded a perceptible growth among the custom (+11,68 %), even if the entire collecting activity by the foreign branches, as regards to the cut in indebtedness toward banks, has shown a little shrinkage (-2,8%), as regard to the same data on December 1997, a result nevertheless to be deemed very good.
The trend analysis of the foreign branches shows a very important aspect to take into account, that is the profitability induced for the Italian branches, both for the positive consequences of the 'commercial' work and services, and for the interesting opportunities to gain new custom.
By this viewpoint it has been strengthened as well the development of synergies between the Italian and the foreign net, especially instituting an Italian Desk inside the main branches abroad and the figure of the Foreign Product Manager in the domestic ones.
The international level presence is taking on the other hand an increasing importance even by a strategic point of view and that's why, in the agreements between Banca di Roma and ABN Ambro (that entered the shareholding of the Banca Romana), it is detailed foreseen the collaboration, commercial level, both in the domestic and foreign markets.
Just the structural intervention, having deeply modified the Bank, causing its more incisive presence on foreign markets and a satisfying profitability since the first re-launch year, constituted the solid premise for the strategic turning represented by the close partnership with the big international group, ABN Ambro and Banca Antoniana Popolare Veneta.
This important agreement allows indeed the Banca di Roma boasting a new first standing stable partner, availing on, as mentioned above, a wide network in defence of the foreign markets, valorizing the controlled Banca Nazionale dell'Agricoltura and setting all the makings for a more active presence in the north-east area of the country.
As underlined by the President of the Banca di Roma, Cesare Geronzi, ABN represents the partner with which the Capitoline body wants to grow and to whom the Bank has the ambition to give an important contribution to grow in our market.
As regards particularly to commercial aspects, it must be underlined that the collaboration with the Holland partner will lie mainly on a co-operation relationship – exclusive for Italy– in the banking investment sector (from the assets management, up to the structured finances and the issues on financial markets).
On the other hand Banca di Roma could already experience very positively the remarkable possibilities coming from the collaboration with other companies.
Examples out of all are the best results coming from the collaboration with the Toro Assicurazioni, that is one of the main shareholders of the body.
The increase coming from this collaboration, in 1998, is of a kind rarely recorded in balances.
The growth recorded by funds and assets management (+135%) is decidedly higher than the result recorded all over the system (+93%), allowing the Bank getting to a market share equal to 4,2% in 1998 respect to the 3,1% of the year before.
To achieve this performance it surely concurred the placing of unit trusts of the participated Romagest (+139%), with the share of pertinence of the Bank – enclosing the contribution to the funds management – passed from 12.824 billions at the end of 1997 to 30.585 billions at the end of 1998).
The sale activity has been particularly supported by the RisparmiosuMisura and PatrimoniosuMisura products; in fact the first allowed straightening the supply of funds, risk differentiated, by the means of the second one instead it has been implemented the assets management as funds.
On the other hand it's common knowledge that the major growth possibilities for the banking system are referable to the managed saving and to the so-called Bank assurance.
Two fields where the results, achieved the Banca di Roma, point out the important role the Capitoline body can play, satisfying both its shareholders and custom.
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