Industrial Plan 2008-2012
During the meeting of 19 September 2008, Biverbanca’s Board of Directors approved the new Industrial Plan 2008-2012.The plan mainly entails the future development of Biverbanca as a “regional bank with predominant territorial features”. It focuses on further enhancing productivity and customer services in the provinces of Biella and Vercelli as well in the Aosta Valley, also expanding activities in the neighbouring Turin and Canavese regions as well as in the provinces of Alessandria and Novara and in the Verbano-Cusio-Ossola district, according to a growth model based on “ray lines” extending from the Bank’s centre.Whilst Biverbanca remains the expression of local traditions and cultures, it will create shareholders value by developing a new approach towards communities based on corporate social responsibility.
Growth outlook
The strategic plan includes the remodeling of the branch network according to the principle of territorial exclusivity by which Biverbanca will become the reference bank within the Montepaschi Group in Piedmont and in its traditional strongholds. To this end, 30 new branches will be opened, 13 Antonveneta agencies will be transferred to Biverbanca and 10 outlets which have reduced opening hours to the public will be converted into full-service branch locations. According to forecasts, by the end of 2012, the Bank will number 862 employees with an increase of 157 staff members (of them, 146 will be new recruitments) compared to the current 705.
Overall performance in line with best practice in Piedmont
Estimates based on main performance indicators predict Biverbanca’s net income will exceed 44 million euro in 2012, with a compound annual growth rate (CAGR) of 9.1% from 2007 through 2012 and a return on equity (ROE) of 13.6%. Biverbanca will continue to express high levels of efficiency with a forecast cost/income of 51% and target Tier 1 capital ratio beyond 8% in 2012.As at the end of 2012, total deposits are expected to surpass 7,000 million euro (CAGR to 5.7% in 2007-2012) while customer loans should total 3,000 million euro (4.9% CAGR for the period 2007-2012).In addition, customers shall increase to total 170,500 (or +17.6% vis-à-vis 31/12/2007) and at the same time current account numbers are reported to grow up to 112,500 (a +18% increase compared to 31/12/2007).
Guidelines and orientation to corporate social responsibility
The strategic guidelines of Biverbanca’s Industrial Plan combine the new regional character with the traditional commitment to local communities. The new operating structure involves the full use of Group products, services and expertise along with Biverbanca’s traditional offers and aims at pursuing client specialization through specific market divisions (retail/corporate/private) and the support of Group service models. In order to boost structural efficiency, Biverbanca will migrate information technologies to the Group platform. Finally, the development in new areas will enable the Bank to actively control risks by reducing concentration risk in the traditional regions.
