SIF Banat-Crișana’s Preliminary net profit – unaudited – for the financial year 2020 is of RON 92.1 million, 42.2% below the result of the previous year, while the total assets of RON 2,883.8 million lowered by only 1.5% compared to 2019.
The positive results, in a difficult year impacted by severe uncertainties, are the effect of the strategic orientation of diversifying the portfolio and reducing the dependency on the dividends and performance of shareholdings in the financial-banking sector.
Thus, the Total income – preliminary – as of December 31, 2020, amounted to RON 94.84 million, down 22% compared to 2019, evolution caused by the impact of the COVID 19 pandemic on the dividend policy of the largest shareholdings in Company’s portfolio, the distribution of dividends being either stopped or their level significantly reduced as compared to the previous years. The decrease in dividends distributed by banks was balanced by collecting higher dividends from subsidiaries and associates.
Gain on investment in the financial year 2020 is with RON 48 million below 2019 and is mainly the effect of recognizing in the income the fair value differences related to the financial assets measured at fair value through profit and loss account (shareholdings in subsidiaries and associates).
Total assets held by SIF Banat-Crișana as of December 31, 2020, amounting to RON 2,883.8 million, (-1.5% vs. 2019), in the context of a decrease in the value of investments held in listed shares (amidst a partial recovery from the declines of the first quarter of the year), a decrease balanced by positive net differences in the valuation of unlisted shareholdings, both existing in the portfolio and those purchased during the year 2020.
Structurally, the main changes in the financial position are to be found in: (1) Financial assets measured at fair value through profit or loss higher as compared to 2019, upon the recognition of fair value differences as of December 31, 2020 and investments made in 2020 in shares classified in this category and (2) Financial assets measured at fair value through other comprehensive income (shares), a position impacted by both the effect of the condition of 2020 stock quotes on Company’s minority interest portfolio, and divestments carried out under this category of assets in 2020 (mainly issuers in the energy sector).
The Cash flow level supports the consistent position and financial performances of 2020, SIF Banat-Crișana holding liquidity (cash available, bank deposits) amounting to RON 150.7 million, up RON 33.5 million vs. 2019.