Governance and services

Governance and Services provides the operating segments with the financial resources and services necessary to perform their respective business activities. The segment comprises, among other things, the resources required for the performance of the services of the Audit, Administration-Accounting, Planning, Organisation and ICT functions, as well as the structures responsible for raising, managing and allocating financial resources to the operating segments. The data includes the contribution of the former GE Capital Interbanca Group not allocated to individual segments.

INCOME STATEMENT DATA
(in thousands of Euro)31.12.201631.12.2015CHANGE
   ABSOLUTE%
Net interest income(22.868)47.639(70.507)(148,0)%
Net commission income(1.046)(586)(460)78,5%
Dividends and trading4.942125.599(120.657)(96,1)%
Net banking income(18.972)172.652(191.624)(111,0)%
Net value adjustments on receivables and other financial assets(4.356)(8.977)4.621(51,5)%
Net profit (loss) from financial activities(23.328)163.675(187.003)(114,3)%

QUARTERLY INCOME STATEMENT DATA 

(in thousands of Euro)
4th Q. 20164th Q. 2015CHANGE
   ABSOLUTE%
Net interest income(12,193)4,740(16,933)(357.2)%
Net commission income(506)(28)(478)1,707.1%
Dividends and trading1531,122(969)(86.4)%
Net banking income(12,546)5,834(18,380)(315.0)%
Net value adjustments on receivables and other financial assets(357)(728)371(51.0)%
Net profit (loss) from financial activities(12,903)5,106(18,009)(352.7)%
 

The sector's net banking income included the contribution of the securities portfolio to net interest income, which totalled 12,1 million Euro compared to 190,0 million Euro in the prior-year period. The decline was attributable to the reduced stock of securities in the portfolio (374,2 million Euro at 31 December 2016 compared to 3.221,5 million Euro at the end of 2015).

During the period, it made 5,5 million Euro in gains on the sale of securities.

As for Rendimax retail funding (4,5 billion Euro, compared to 3,1 billion Euro at 31 December 2015), the relevant cost amounted to 1,50%, compared to 1,24% in December 2015. The increase was the result of the new 3-, 4-, and 5-year maturities as well as some promotional campaigns aiming to boost funding levels ahead of the finalisation of the former GE Capital Interbanca Group acquisition.

Net value adjustments on available for sale financial assets, totalling 4,4 million Euro at 31 December 2016 (9,0 million Euro in the prior-year period), referred to impairment losses recognised on unlisted equity instruments that were found to be impaired.

STATEMENT OF FINANCIAL POSITION
(in thousands of Euro)
31.12.201631.12.2015CHANGE
   ABSOLUTE%
Available for sale financial assets374,2293,221,533(2,847,304)(88.4)%
Held to maturity financial assets---n.a.
Due from banks1,393,35895,3521,298,0061361.3%
Loans to customers7,561103,997(96,436)(92.7)%
Due to banks503,964662,985(159,021)(24.0)%
Due to customers5,045,1365,487,476(442,340)(8.1)%
 

The loans to customers of the Governance and Services sector amounted to 7,6 million Euro, -92,7% from the prior-year, and essentially reflect the balance of margin lending related to repurchase agreements on the MTS platform with Cassa di Compensazione e Garanzia as counterparty. The decline was the result of the downsizing of the securities portfolio.

STATEMENT OF FINANCIAL POSITION 
 (in thousands of Euro)31.12.201631.12.2015CHANGE
   ABSOLUTE%
Bad loans----
Unlikely to pay----
Past due loans----
Total net non-performing exposures to customers----
Net performing loans7,561103,997(96,436)(92.7)%
Total on-balance-sheet loans to customers7,561103,997(96,436)(92.7)%

KPI31.12.201631.12.2015CHANGE
   ABSOLUTE%
Total RWA per segment263,512(2)25,256 (1)238,256943.4%

(1) Data restated after initial publication.

(2) 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.