CDP: the Board approves financial statements for 2013

Press release

CDP: the Board approves financial statements for 2013

Rome, 16 April 2014 - Cassa depositi e prestiti Spa (CDP ) announces that the Board of Directors, chaired by Franco Bassanini, today approved the 2013 annual report, which contains the financial statements that will be submitted for approval to the Shareholders' Meeting called for 28 May and 4 June 2014, at first and second call respectively.

Rome, 16 April 2014 - Cassa depositi e prestiti Spa (CDP ) announces that the Board of Directors, chaired by Franco Bassanini, today approved the 2013 annual report, which contains the financial statements that will be submitted for approval to the Shareholders' Meeting called for 28 May and 4 June 2014, at first and second call respectively.

 

Resources mobilized and managed

The results for 2013 underscore the countercyclical role of CDP and the Group in supporting the Italian economy: new resources mobilized and managed (loans, investments, guarantees) by CDP to support public entities, infrastructure and businesses in 2013 amounted to €28 billion, up 22%  from 2012 due to the contributions by all the companies belonging to the Group.

The CDP parent company mobilized and managed resources totalling €16 billion, up 27% from €12.8 billion in 2012.

CDP thus ends an especially challenging three years for Italy, and the years of its 2011-2013 Business Plan, having exceeded the targets for its contribution to growth: €56 billion, compared with the planned €43 billion.


In accordance with the strategic guidelines  of the Group’s new Indistrial Plan, the resources were dedicated to drivers of  the economic development of the country:

 

  • Public and Territorial entities: despite the constraints on the public finances, CDP’s support for local authorities accelerated sharply, with lending of €5.9 billion, compared with €3.3 billion in 2012. Contributing to the rise was the start of operations of the fund for advance payments of the debts of government departments (managed on behalf of the Ministry for the Economy and Finance) and the operations of the FIV, the fund for developing public-sector real estate assets.
  • Infrastructure: CDP confirmed its role as a catalyst for the infrastructure development of the country, with new resources of €2.2 billion, down from €2.8 billion in 2012 due to a lower number of financable projects.  
  • Enterprises: CDP strengthened its central role in supporting the Italian productive system. Lending to enterprises rose to €8.2 billion from €6.7 billion the previous year. The main driver of the expansion was the operation of mechanisms for supporting the economy, such as the SME support funds, and the greater support provided for exports and the international expansion of Italian companies. 
     

CDP’s financial position

The expansion of CDP’s activity in support of the economy was mirrored by an increase in assets to €314.7 billion (+3%).

Liquidity increased to €147 billion (+6%). In addition, CDP lending to customers and banks rose by 3% to €103 billion, despite the contraction in lending by the banking system.

Postal funding amounted to €242 billion (+4%). The rise in the stock of loans is mainly attributable to the expansion in net CDP funding through postal passbook savings accounts (€7.3 billion). 

CDP continued its important role in equity investment. Equity investments and share amounted to about €33 billion, an increase of 7% on 2012, primarily due to the completion of a €2.5 billion capital increase in Fondo Strategico Italiano on the occasion of the Bank of Italy’s investment

CDP’s financial position was also strengthened, as shareholders’ equity rose to more than €18 billion (+8%).
 

CDP’s performance and performance ratios

Performance was in line with the targets set out in the 2011-2013 Business Plan, despite the substantial deterioration in market conditions. With a contraction of 28% in net interest income, to €2.5 billion, as a result of the expected normalization of the spread between lending and funding rates, as a consequence of the interest rate trends, net incomeamounted to €2.3 billion, with a reduction more contained than the  spread due to a positive contribution of dividends from companies in CDP’s portfolio. .

The cost/income ratio, which remained low at 4.1%, continued to reflect the high efficiency of CDP’s operations.
 

Management compensation

The compensation packages for CDP’s top management were approved on 28 October 2013, taking due account of the directive of the Ministry for the Economy and Finance of 24 June 2013 and Article 84-ter of Decree Law 69 of 21 June 2013 (ratified with amendments by Law 98 of 9 August 2013).

The annual gross remuneration of the Chief Executive Officer, Giovanni Gorno Tempini, was reduced last October to €607,025, plus – in the event certain targets are achieved -  up to €190,675 as the annual variable component and €25,425 per year as the three-year variable component (with the latter being awarded in arrears only if the specified targets were achieved in each of the years of the three-year period). The maximum gross annual compensation of the CEO of CDP was therefore reduced from €1,035,000 to €823,125 (-26%).

The compensation of the Chairman of the Board of Directors, Franco Bassanini, was set at €236,305, plus ‑ in the event certain targets are achieved – up to €39,130 as the annual variable component and €19,565 per year as the three-year variable component (with the latter being awarded in arrears only if the specified targets were achieved in each of the years of the three-year period).

This compensation will be immediately adjusted if in the coming days the Government should set new ceilings on the remuneration of the chairmen of public sector companies.

Consolidated results

The consolidated financial statements at 31 December 2013 show net income pertaining to the shareholders of the parent company in the amount of €2,501 million, down 14.5% on the performance achieved in 2012. The reduction is attributable to the developments in the net interest income of the parent company discussed above, partly offset by an increase in dividends and income from equity investments, net of the impact of consolidation. Total assets rose to €340,467 million, up 3.5% on 2012, while pertaining to shareholders of the parent company amounted to €19,295 million, up 6.1% on the €18,186 million registered at the end of 2012.

The 2013 Annual Report, accompanied by the certifications provided for under Article 154 bis, paragraph 5, of the Consolidated Law on Financial Intermediation and the reports of the external audit firm and of the Board of Auditors will be made available to the public at the registered office and published in the CDP website in accordance with the statutory deadline.

Notice of Ordinary Shareholders’ Meeting

The Board of Directs has called the Ordinary Shareholders’ Meeting for 28 May and 4 June 2014, at first and second call respectively, to vote on an agenda comprising the approval of the financial statements, the allocation of net income and the adjustment of the fees of the audit firm.

The manager responsible for preparing the corporate financial reports, Andrea Novelli, certifies pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Financial Intermediation that the accounting information contained in this press release corresponds to that in the accounting documentation, books and records.

Related documents