This segment includes the following business areas:

  • Crediti Commerciali Italia and Crediti Commerciali International, dedicated to supporting the trade receivables of SMEs operating in the domestic market as well as companies growing abroad or based abroad and working with Italian customers; this area includes the operations carried out in Poland by the investee IFIS Finance’s S.p. Zo.o.; these business areas operate under the Banca IFIS Impresa brand;
  • Banca IFIS Pharma and Pharmacies, operating under the brand of the same name, supporting the trade receivables of local health services’ suppliers and pharmacists.


(in thousands of Euro)31.12.201631.12.2015CHANGE
Net interest income118,69398,17520,51820.9%
Net commission income55,74060,496(4,756)(7.9)%
Net banking income174,433158,67115,7629.9%
Net impairment losses on receivables(20,305)(21,248)943(4.4)%
Net profit (loss) from financial activities154,128137,42316,70512.2%

(in thousands of Euro)
4th Q. 20164th Q. 2015 CHANGE
Net interest income39,44924,11415,33563.6%
Net commission income13,69315,614(1,921)(12.3)%
Net banking income53,14239,72813,41433.8%
Net impairment losses on receivables(5,081)(6,491)1,410(21.7)%
Net profit (loss) from financial activities48,06133,23714,82444.6%

The net banking income of the Trade Receivables segment amounted to 174,4 million Euro, up 9,9% compared to 158,7 million Euro in 2015. The segment had very positive results in terms of volumes: it generated 10,5 billion Euro in turnover (+4,2% from December 2015), with 5.360 corporate customers (up 19% compared to the prior-year period) and 3,1 billion Euro in outstanding loans (+8,6% from December 2015). These results confirm that the Bank's business model, which focuses on supporting SMEs, is effective in a scenario with interest rates at record lows.

Volumes benefited also from the inclusion of the new subsidiary IFIS Factoring (contributing 192 million Euro in loans, of which 15,9 non-performing) in this segment, while the contribution to —referring only to December—was limited (207 thousand Euro).

In particular, net banking income increased thanks to, among other things, the results of the IFIS Pharma business area (+59,0%, from 29,4 million Euro in the prior year to 46,8 million Euro), which benefited from the adoption of the new model to estimate the cash flows of health service receivables purchased outright (contributing 15,8 million Euro). Specifically, the new method includes interest on arrears considered recoverable in the estimated cash flows, as it is a structural element of the day-to-day management of health service receivables.

Net value adjustments on receivables amounted to 20,3 million Euro (21,2 million Euro in the prior-year period, -4,4%), and referred almost entirely to adjustments made by Banca IFIS. Their ratio relative to the increased average loans resulted in an improved credit risk cost, which fell from 90 bps at 31 December 2015 to 79 bps.


(in thousands of Euro)
31.12.201631.12.2015 CHANGE
Bad loans31,69230,9507422.4%
Unlikely to pay50,90039,55111,34928.7%
Past due loans118,42058,21460,206103.4%
Total net non-performing exposures to customers201,012128,71572,29756.2%
Net performing loans2,891,4762,719,409172,0676.3%
Total on-balance-sheet loans to customers3,092,4882,848,124244,3648.6%

Loans to customers included in this segment are composed as follows: 28,3% are receivables due from the Public Administration (compared to 32,1% at 31 December 2015) and 71,7% due from the private sector (compared to 67,9% at 31 December 2015).

Net non-performing exposures in the Trade Receivables segment rose 56,2% from 128,7 million Euro at the end of 2015 to 201,0 million Euro, largely because of rising past due exposures to the Public Administration. IFIS Factoring made a marginal contribution (15,9 million Euro). This was the result of the acquisitions of portfolios of past due loans carried out starting from late December 2015 under an agreement with a leading market player, which allowed the Bank to enter the multi-utilities business. These portfolios consist of receivables due from local administrations for which the Bank has commenced collection actions by entering into settlement plans.

As for unlikely to pay, the increase was largely attributable to three significant positions, totalling 16,5 million Euro, previously classified under non-performing and performing past due exposures.

The segment's net bad-loan ratio was 1,0%, down slightly from the end of 2015 (1,1% at 31 December 2015), while the ratio of net unlikely to pay to loans rose to 1,6% from 1,4% at 31 December 2015. The segment's ratio of total net non-performing exposures to loans rose from 4,5% at the end of 2015 to 6,5% at 31 December 2016. Net non-performing loans amounted to 16,5% as a percentage of Group equity, compared to 22,4% in the prior year.


(in thousands of Euro)
BALANCE AT 31.12.2016    
Nominal amount of non-performing exposures276,74176,551122,451 475,743
As a proportion of total gross receivables8.2%2.3%3.6%14.1%
Impairment losses245,04925,6514,031 274,731
As a proportion of gross value88.5%33.5%3.3%57.7%
Carrying amount31,69250,900118,420 201,012
As a proportion of net total receivables1.0%1.6%3.8%6.5%
BALANCE AT 31.12.2015    
Nominal amount of non-performing exposures255,40458,25759,788373,449
As a proportion of total gross receivables8.2%1.9%1.9%12.0%
Impairment losses224,45418,7061,574244,734
As a proportion of the nominal amount87.9%32.1%2.6%65.5%
Carrying amount30,95039,55158,214128,715
As a proportion of net total receivables1.1%1.4%2.0%4.5%

(1) Bad loans are recognised in the financial statements up to the point in which all credit collection procedures have been exhausted.

Net bad loans amounted to 31,7 million Euro, +2,4% from the end of 2015; the segment's net bad-loan ratio was 1,0%, compared to 1,1% at 31 December 2015. As a proportion of equity, net bad loans were unchanged from 31 December 2015 at 5,4%. The coverage ratio stood at 88,5% (87,9% at 31 December 2015)

The balance of net unlikely to pay was 50,9 million Euro, +28,7% from 39,6 at the end of 2015. The increase was largely attributable to three positions that fall into this risk category. The coverage ratio stood at 33,5% (32,1% at 31 December 2015)

Net non-performing past due exposures totalled 118,4 million Euro, compared with 58,2 million Euro in December 2015 (+103,4%). Past due exposures to the private sector rose from 57,0 million Euro in December 2015 to 71,6 million Euro at 31 December 2016, and the exposures to the public sector from 1,2 million Euro to 46,8 million Euro. The increase was due to the contribution from IFIS Factoring following the acquisition of the former GE Capital Interbanca Group as well as the purchases of past due loans finalised in late December 2015 under an agreement with a leading market player, which allowed the Bank to enter the multi-utilities business. These portfolios consist of receivables due from local administrations for which the Bank has commenced collection actions by entering into settlement plans.

The coverage ratio stood at 3,3% (2,6% at 31 December 2015)

Net banking income/ Turnover1.7%1.6%00.1%
KPI y/y31.12.201631.12.2015CHANGE
Cost of credit quality0.8%0.9%-(0.1)%
Net bad loans/Loans to customers1.0%1.1%-(0.1)%
Net bad loans/Equity2.6%5.4%-(2.8)%
Coverage ratio on gross bad loans88.5%87.9%-0.7%
Non-performing exposures/Loans to customers6.5%4.5%-2.0%
Net non-performing loans/Equity16.5%22.4%-(6.0)%
Total RWA per segment2,348,1311,970,886377,24519.1%

The following table shows the nominal amount of receivables purchased (operating data not recognised in the statements) for factoring transactions outstanding at the end of the period (Total Receivables), broken down into receivables with or without recourse and receivables purchased outright. Please note that the breakdown of purchased receivables in the following table is based on the contract form used by the Bank.


(in thousands of Euro)
With recourse2,150,9302,128,82522,1051.0%
of which due from the Public Administration332,735361,000 (28,265) (7.8)%
Without recourse464,956277,159187,79767.8%
of which due from the Public Administration8,9494,4684,481100.3%
Outright purchases1,264,9501,170,99893,9528.0%
of which due from the Public Administration812,384888,844 (76,460) (8.6)%
Total receivables3,880,8363,576,982303,8548.5%
of which due from the Public Administration1,154,0681,254,312 (100,244) (8.0)%

The breakdown of customers by geographic area in Italy, with a separate indication for those abroad, is as follows:

Northern Italy43.7%52.4%
Central Italy24.2%30.9%
Southern Italy25.4%10.5%