Operating result

Financial segment operating result
(€ million) 31.12.2012 31.12.2011 Fourth quarter
2012
Fourth quarter
2011
Operating result - financial segment 408 342 88 63
Net operating result from financial activities 1,365 1,296 343 310
Intermediation margin 1,387 1,303 352 309
Net interest income 399 335 94 87
Dividends and other income 29 108 5 15
Activities 827 859 206 202
Other net income from financial instruments at fair value through profit or loss 133 -3 42 3
Net operating gains on other financial instruments 0 4 5 2
Net operating impairment losses on other financial instruments -22 -7 -9 1
Acquisition and administration costs -862 -915 -225 -224
Net other operating ex penses -95 -38 -30 -22
Non-operating result - financial segment 3 16 29 -19
Non-operating income from inv estments -61 81 -56 4
Net non-operating realized gains on other financial instruments and land and buildings (investment properties) -2 79 0 -2
Net non-operating impairment losses on other financial instruments and land and buildings (investment properties) -59 1 -57 6
Net other non-operating ex penses 65 -65 85 -23
Earnings before taxes - financial segment 411 357 117 44

The operating result of the financial segment was € 408 million (€ 342 million at 31 December 2011). The increase (+21.7% on equivalent consolidation area) was due in particular to the improved performance of the investment result.

The net investment result improved thanks in particular to the increase in the intermediation margin. The growth observed was mainly due to the increase in net interest income, which mainly benefitted from investment of the liquidity provided to the banking sector with favorable terms by the European Central Bank. Moreover, the result of the trading activities carried out by the Group, on the equity portfolio in particular, was positive, while dividends dropped considerably.

Acquisition and administration costs also decreased while the increase in net other operating expenses was mainly caused by higher costs for services.

Lastly, the cost income ratio went from 73.2% at 31 December 2011 to 69.0%, mainly due to the development of assets managed.

Non-operating result

The non-operating result in the financial segment decreased from € 16 million at 31 December 2011 to € 3 million.

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Financial segment69.27 KB