This is the Banca IFIS Group's segment dedicated to non-recourse factoring and managing mostly unsecured distressed retail loans. It serves households under the CrediFamiglia brand.

The business is closely associated with recovering and collecting non-performing exposures.

The Bank manages the portfolio of acquired receivables using two different methods: non-judicial and judicial operations.

As for the portfolio managed through non-judicial operations, to measure them the Bank uses a model based on a simulation of cash flows that projects the “breakdown” of the nominal amount of the receivable “over time” based on the historical recovery profile for similar clusters. As for the positions with funding characteristics (bills of exchange or settlement plans agreed with the debtor), the Bank uses a “deterministic” model based on the measurement of the future instalments of the settlement plan, net of the historical default rate.

Judicial operations consist in collecting debts through legal actions to secure a court order for the garnishment of one fifth of pension benefits or wages. The cash flows from judicial operations are not simulated using the model: the manager individually measures them for each individual position and enters them in the system.



(in thousands of Euro)
Interest income from amortised cost35,95925,06110,89843.5%
Other interest income115,54221,05694,486448.7%
Funding costs(6,442)(3,612)(2,830)78.3%
Net interest income145,05942,505102,554241.3%
Net commission income(2,220)(1,153)(1,067)92.5%
Gain on sale of receivables44,52914,94829,581197.9%
Net banking income187,36856,300131,068232.8%
Net impairment losses/reversals on receivables(32,628)(3,613)(29,015)803.1%
Net profit (loss) from financial activities154,74052,687102,053193.7%

(in thousands of Euro)
4th Q. 20164th Q. 2015CHANGE
Interest income from amortised cost11,5556,3605,19581.7%
Other interest income25,2953,06922,226724.2%
Funding costs(2,026)(1,214)(812)66.9%
Net interest income34,8248,21526,609323.9%
Net commission income(769)(761)(8)1.1%
Gain on sale of receivables17,77014,9482,82218.9%
Net banking income51,82522,40229,423131.3%
Net impairment losses/reversals on receivables(9,045)(584)(8,461)1,448.8%
Net profit (loss) from financial activities42,78021,81820,96296.1%

The results for the year were positively influenced by the continuing debt collection operations, consisting in bills of exchange and expressions willingness, as well as the reclassification to amortised cost of a sizeable share of the portfolio following the end of the documentary verification process and the ensuing bills of exchange and settlement plans entered into for these positions, contributing nearly 9,0 million Euro to net profit from financial activities.

Concerning net value adjustments, totalling 32,6 million Euro, 3,7 million Euro referred to the write-off of a number of positions for which the debtor was deceased and no heirs were found, and 1,2 million Euro to some positions for which the statute of limitations had expired. The item also included 29,3 million Euro in impairment losses referring to positions for which the net present value of expected cash flows had fallen below the purchase price, partly offset by 6,5 million Euro in interest accrued. This impact (NPV lower than the purchase price) included 4,8 million Euro in impairment losses recognised once the Bank reclassified a number of NPL positions acquired in recent years to amortised cost after completing the verification process to determine whether the new estimating model created at the end of 2015 could apply to positions with an “acceleration clause date” that is recent compared to the acquisition date. As a result of the reclassification to amortised cost, the Group recognised the impairment losses as well as 2,2 million Euro in additional interest income recognised under Interest receivable and similar income.

In addition, there were 1,6 million Euro in reversals of impairment losses consisting in additional interest income recognised under line item 130 up to the amount of the previously recognised impairment loss.

These events (NPV of cash flows lower than the purchase price, deceased debtor, and expired statute of limitations), in accordance with the Bank's accounting policy, represented trigger events causing the changes in amortised cost to qualify as impairment losses to be recognised under item 130 - Net value adjustments on receivables. However, the overall net profit from financial activities is more relevant to understanding the segment's performance.



 (in thousands of Euro)
Bad loans320,612159,336161,276101.2%
Unlikely to pay241,518194,99546,52323.9%
Past due loans----
Total net non-performing exposures to customers562,130354,331207,79958.6%
Net performing loans1621(5)(23.8)%
Total on-balance-sheet loans to customers562,146354,352207,79458.6%
Nominal amount of receivables managed9.660.1968.161.0051.499.19118,4%
Total RWA per segment562.146354.352207.79458,6%
NPL PERFORMANCE(in thousands of Euro)
Receivables portfolio at 31.12.2015354,352
Gain on sales44,529
Interest income from amortised cost35,959
Other components of net interest income from change in cash flow115,542
Impairment losses/reversals from change in cash flow(32,628)
Receivables portfolio at 31.12.2016562,146

The purchases made in the period led to the acquisition of portfolios of financial receivables with a par value of approximately 3,1 billion Euro at a price of 195,6 million Euro, consisting of 463.566 positions.

At 31 December 2016, the segment's receivables included 9,0 million Euro (par value of 744,6 million Euro, approximately 73 thousand positions) in loans sold at the end of the year after the Bank accepted the buyer's binding offer.

The mentioned binding offer contained all the elements required to determine whether all risks and rewards relating to the receivables sold were substantially transferred (derecognition). However, since the transfer had not been formally completed at the reporting date, the Bank presented the relevant impact without derecognising the assets: instead, it recognised a receivable due from the buyer equal to the consideration, and a payable due to the buyer equal to the amount of the receivables sold. The positive difference, amounting to 17,8 million Euro, was recognised in profit or loss under gains on the sale of receivables.

During 2016, the Bank finalised two other sales, raising 27,0 million Euro. Gains on sales included a 279 thousand Euro loss on the repurchase of some portfolios sold in late 2015 in accordance with contractual provisions.

During the year, the borrowers settled their debt mainly according to the following methods:

  • in cash (postal orders, bank transfers, etc.);
  • by signing bills of exchange;
  • settlement plans agreed with the debtors (so-called expressions of willingness).

In 2016, funding was up steadily from 2015, reaching 312,2 million Euro compared to 244,5 million Euro, +27,7%: this was entirely attributable to settlement plans (expressions of willingness). Collections made during the year amounted to 78,2 million, compared to 55,6 million in the prior-year period. 

At the end of the year, the portfolio managed by the NPL Area included 1.397.957 positions, for a par value of 9,7 billion Euro and nearly 967 thousand debtors.