The organisational structure

The model for segment reporting is in line with the new organisational structure used by the Head Office to analyse Group results, which, following the acquisition of the former GE Capital Interbanca Group, now includes two new sectors: Corporate Banking and Leasing. In addition, since the acquisition date, the Trade Receivables sector has been benefiting from the contribution of IFIS Factoring.

Therefore, the organisational structure consists of the following segments: Trade receivables, Corporate banking, Leasing, NPL Area, Tax receivables, Governance and Services.

The Governance and Services segment manages the Group's financial resources and allocates funding costs to operating segments through the Group's internal transfer rate system.

Here below are the results achieved in 2016 by the various business segments, which will be analysed in the sections dedicated to the individual sectors.

 

INCOME STATEMENT DATA

(in thousands of Euro)
TRADE RECEIVABLES CORPORATE BANKINGLEASINGNPL AREATAX RECEIVABLESGOVERNANCE AND SERVICESCONS. GROUP TOTAL
Net banking income       
Amounts at 31.12.2016174,4332,952(1,172)187,36813,990(18,972)358,599
Amounts at 31.12.2015158,671n.a.n.a.56,30020,335172,652407,958
% Change9.9%n.a.n.a.232.8%(31.2)%(111.0)%(12.1)%
Net profit (loss) from financial activities       
Amounts at 31.12.2016154,1282,889(2,682)154,74013,620(23,329)299,366
Amounts at 31.12.2015137,423n.a.n.a.52,68719,923163,675373,708
% Change12.2%n.a.n.a.193.7%(31.6)%(114.3)%(19.9)%

 
QUARTERLY INCOME STATEMENT DATA

(in thousands of Euro)
TRADE RECEIVABLES CORPORATE BANKINGLEASINGNPL AREATAX RECEIVABLESGOVERNANCE AND SERVICESCONS, GROUP TOTAL
Net banking income       
Fourth quarter 201653,1422,952(1,172)51,8253,126(12,546)97,327
Fourth quarter 201539,728n.a. - n.a. - 22,4028,8285,83476,792
% Change33.8%n.a.n.a.131.3%(64.6)%(315.0)%26.7%
Net profit (loss) from financial activities       
Fourth quarter 201648,0612,889(2,682)42,7803,025(12,904)81,169
Fourth quarter 201533,237n.a. - n.a. 21,8188,5425,10668,703
% Change44.6%n.a.n.a.96.1%(64.6)%(352.7)%18.1%
       
STATEMENT OF FINANCIAL POSITION
(
in thousands of Euro)
TRADE RECEIVABLES CORPORATE BANKINGLEASINGNPL AREATAX RECEIVABLESGOVERNANCE AND SERVICESCONS. GROUP TOTAL
Available for sale financial assets       
Amounts at 31.12.2016-----374,229374,229
Amounts at 31.12.2015-----3,221,5333,221,533
% Change-----(88.4)%(88.4)%
Due from banks       
Amounts at 31.12.2016-----1,393,3581,393,358
Amounts at 31.12.2015-----95,35295,352
% Change-----1361.3%1361.3%
Loans to customers       
Amounts at 31.12.20163,092,488905,6821,235,638562,146124,6977,5615,928,212
Amounts at 31.12.20152,848,124n.a.n.a.354,352130,663103,9973,437,136
% Change8.6%n.a.n.a.58.6%(4.6)%(92.7)%72.5%
Due to banks       
Amounts at 31.12.2016-----503,964503,964
Amounts at 31.12.2015-----662,985662,985
% Change-----(24.0)%(24.0)%
Due to customers       
Amounts at 31.12.2016-----5,045,1365,045,136
Amounts at 31.12.2015-----5,487,4765,487,476
% Change-----(8.1)%(8.1)%
     
SEGMENT KPIs

(in thousands of Euro)
TRADE 
RECEIVABLESCORPORATE BANKINGLEASINGNPL AREATAX 
RECEIVABLESGOVERNANCE AND SERVICES
Turnover      
Amounts at 31.12.201610,549,881n.a.n.a.n.a.n.a.n.a.
Amounts at 31.12.201510,126,397n.a.n.a.n.a.n.a.n.a.
% Change4.2%-----
Nominal amount of receivables managed      
Amounts at 31.12.20163,880,8351,739,1751,273,9339,660,196172,145n.a.
Amounts at 31.12.20153,576,982n.a.n.a.8,161,005190,553n.a.
% Change8.5%--18.4%(9.7)%-
Cost of credit quality      
Amounts at 31.12.20160.8%0.0%0.1%n.a.n.a.n.a.
Amounts at 31.12.20150.9%n.a.n.a.n.a.n.a.n.a.
% Change(0.1)%n.a.n.a.---
Net bad loans/Loans to customers      
Amounts at 31.12.20161.0%3.0%0.5%57.0%0.0%n.a.
Amounts at 31.12.20151.1%n.a.n.a.45.0%0.0%n.a.
% Change(0.1)%n.a.n.a.12.1%0.0%-
Net bad loans/Equity      
Amounts at 31.12.20162.6%2.2%0.5%n.a.n.a.n.a.
Amounts at 31.12.20155.4%n.a.n.a.n.a.n.a.n.a.
% Change(2.8)%n.a.n.a.---
Coverage ratio on gross bad loans      
Amounts at 31.12.201688.5%94.0%92.2%n.a.n.a.n.a.
Amounts at 31.12.201587.9%n.a.n.a.n.a.n.a.n.a.
% Change0.7%n.a.n.a.---
Non-performing exposures/Loans to customers      
Amounts at 31.12.20166.5%19.0%3.0%n.a.n.a.n.a.
Amounts at 31.12.20154.5%n.a.n.a.n.a.n.a.n.a.
% Change2.0%n.a.n.a.---
Net non-performing loans/Equity      
Amounts at 31.12.201616.5%14.1%3.0%n.a.n.a.n.a.
Amounts at 31.12.201522.4%n.a.n.a.n.a.n.a.n.a.
% Change(6.0)%n.a.n.a.---
RWA      
Amounts at 31.12.20162,348,131929,337875,153562,14650,004263,512(4)
Amounts at 31.12.20151,970,886n.a.n.a.354,35241,61425,256
% Change19.1%n.a.n.a.58.6%20.2%943.4%

(1) Gross flow of the receivables sold by the customers in a specific period of time.

(2) Risk Weighted Assets; the amount refers exclusively to the financial items reported in the segments.

(3) Data restated after initial publication.

(4) The Governance and Services sector's RWAs include in 2016 the investment in IFIS Rental Services, a non-financial company consolidated using the equity method and that is not part of the Banking Group for supervisory purposes.