Statement of financial positions items

As described in the Introductory notes on how to read the data, the tables in this paragraph include a comparison of 2016 with the prior year excluding all effects attributable to the acquisition of the former GE Capital Interbanca Group (the data are presented in a column named “31.12.2016 normalised”), as if the business combination never took place.

STATEMENT OF FINANCIAL POSITION HIGHLIGHTS

(in thousands of Euro)
AMOUNTS ATNORMALISED CHANGE
 31.12.201631.12.2016
NORMALISED
31.12.2015 ABSOLUTE%
Financial assets held for trading47,39339725913853.3%
Available for sale financial assets374,229325,0503,221,533(2,896,483)(89.9)%
Due from banks1,393,3581,194,42095,3521,099,0681152.6%
Loans to customers5,928,2123,638,1763,437,136201,0405.8%
Property. plant and equipment and intangible assets125,32977,95359,33318,62031.4%
Other assets830,624225,447144,10781,34056.4%
Total assets8,699,1455,461,4436,957,720 (1,496,277) (21.5)%
Due to banks503,964509,066662,985(153,919)(23.2)%
Due to customers5,045,1364,095,4165,487,476(1,392,060)(25.4)%
Outstanding securities1,488,556---#DIV/0!
Financial liabilities held for trading48,4782,031212,0109571.4%
Other liabilities394,228235,009233,7711,2380.5%
Equity1,218,783619,921573,46746,4548.1%
Total liabilities and equity8,699,1455,461,4436,957,720 (1,496,277) (21.5)%
 

The financial assets and liabilities held for trading outstanding at 31 December 2016 were incorporated with the acquisition of the former GE Capital Interbanca Group and referred to interest rate derivatives that Interbanca S.p.A. negotiated with its Corporate clients up to 2009 to provide them with instruments to hedge risks such as fluctuations in interest rates. In order to remove market risk, all outstanding transactions are hedged with “back to back” trades, in which Interbanca assumed a position opposite to the one sold to corporate clients with independent market counterparties. In addition, there were 397 thousand Euro worth of cross currency swaps with other banks.

Available for sale (AFS) financial assets, which include debt and equity securities, stood at 374,2 million Euro at 31 December 2016, -88,4% compared to 3.221,5 million Euro at the end of 2015. The normalised balance of AFS securities totalled 325,0 million Euro. The valuation reserve, net of taxes, was positive to the tune of 1,5 million Euro at 31 December 2016 (11,7 million Euro at 31 December 2015).

At 31 December 2016, the debt securities portfolio amounted to 353,2 million Euro, down 68,1% from 31 December 2015 (3.216,8 million Euro)—largely because of the 2,9 billion Euro worth of securities sold during the year, which resulted in a 5,5 million Euro gain.

Here below is the breakdown by maturity of the debt securities held.

Issuer/Maturity 3rd Q. 2017 2nd Q. 2019 2nd Q. 2020 Overall total
Government bonds270,29230,11752,742353,151
% of total76.5%8.5%15.0%100.0%
 

Available for sale financial assets include equity securities relating to non-controlling interests in unlisted companies, amounting to 17,1 million Euro (+264,6% compared to 31 December 2015). The increase was the result of the 15,1 million Euro contribution from the former Interbanca group (the normalised amount is 2,0 million Euro) and the 1,5 million Euro acquisition of an interest in Cassa di Risparmio di Cesena after paying a contribution to Italy's Interbank Deposit Protection Fund (FITD, Fondo Interbancario di Tutela dei Depositi) as payment for the bank's capital increase. The fair value of this interest is the subscription price assigned to the relevant capital increase. This interest was treated for accounting, tax and reporting purposes in accordance with the Italian Banking Association's communication of 4 August 2016 as confirmed by the Bank of Italy's technical note of 26 October 2016. During the year, the Group recognised a 4,3 million Euro write-down of the equity interests in two investees after they were tested for impairment.

Available for sale financial assets include also 3,9 million Euro in UCITS units deriving from the acquisition of the former GE Capital Interbanca Group.

 

Receivables due from banks

At 31 December 2016, receivables due from banks totalled 1.393,4 million Euro, compared to 95,4 million Euro at 31 December 2015. This excess liquidity ensures the margin required to carry out banking operations as well as the funds necessary to seize potential market opportunities.

 

Loans to customers

Loans to customers totalled 5.928,2 million Euro, up 72,5% from 3.437,1 million Euro at the end of 2015, thanks largely to the contribution from the GE Capital Interbanca Group: the normalised balance of loans to customers was 3.638,2 million Euro (+5,8% compared to 2015).

Specifically, the NPL Area's receivables were up +58,6% as a result of new acquisitions as well as the reclassification to amortised cost of a sizeable portion of the portfolio previously recognised at cost pending the completion of the preparations for said reclassification. Also the loans of the trade receivables segment were up (+8,6%). Corporate Banking and Leasing, the new sectors born from the acquisition of the former GE Capital Interbanca Group, contributed 905,7 and 1.235,6 million Euro, respectively. Tax receivables were down as a result of the significant collections recognised during the year. Receivables in the Governance and Services sector fell by 92,7% because of the decrease in margin lending related to repurchase agreements on the MTS platform with Cassa Compensazione e Garanzia as counterparty—the result of the mentioned reduction of the portfolio of refinanceable securities.

The breakdown of loans to customers was as follows: 16,9% are due from the Public Administration and 83,1% from the private sector (compared to 30,4% and 69,6% at 31 December 2015).

There are no major risks concerning this item.

LOANS TO CUSTOMERS: BREAKDOWN BY SEGMENT
(in thousands of Euro)
AMOUNTS ATCHANGE
 31.12.201631.12.2015ABSOLUTE%
Trade receivables3,092,4882,848,124244,3648.6%
- of which non-performing201,012128,71572,29756.2%
Corporate Banking905,682n.a.n.a.n.a.
- of which non-performing171,670n.a.n.a.n.a.
Leasing1,235,638n.a.n.a.n.a.
- of which non-performing37,150n.a.n.a.n.a.
Distressed retail loans562,146354,352207,79458.6%
- of which non-performing562,130354,331207,79958.6%
Tax Receivables124,697130,663 (5,966) (4.6)%
- of which non-performing199 -199#DIV/0!
Governance and Services7,561103,997 (96,436) (92.7)%
- of which with Cassa di Compensazione e Garanzia4,748103,636 (98,888) (95.4)%
Total loans to customers5,928,2123,437,1362,491,07672.5%
- of which non-performing972,161483,046489,115101.3%
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Total net non-performing exposures, which are significantly affected by the receivables of the NPL Area, amounted to 972,2 million Euro in December 2016, compared to 483,0 million Euro at the end of 2015 (+55,2%).

Here below is the breakdown of forborne exposures by segment.

FORBEARANCE
(in thousands of Euro)
TRADERECEIVABLESCORPORATE BANKINGLEASINGDRLTAXRECEIVABLESCONS. TOTAL
Bad loans      
Amounts at 31.12.20162,4395,58773033,550-42,306
Amounts at 31.12.2015371n.a.n.a.15,064 -15,435
% Change557.4%n.a.n.a.122.7%-174.1%
Unlikely to pay     -
Amounts at 31.12.201619,31298,5756,25853,368 -177,513
Amounts at 31.12.201514,414n.a.n.a.19,309 -33,723
% Change34.0%n.a.n.a.176.4%-426.4%
Past due loans     -
Amounts at 31.12.2016 -1,4572,302 - -3,759
Amounts at 31.12.20155,300n.a.n.a. - -5,300
% Change(100.0)%n.a.n.a.--(29.1)%
Performing loans     -
Amounts at 31.12.20166,95535,882-15-42,852
Amounts at 31.12.20152,954n.a.n.a.5 -2,959
% Change135.4%n.a.n.a.200.0%-1348.2%

CREDIT QUALITY

(in thousands of Euro)
TRADE RECEIVABLESCORPORATE BANKINGLEASINGNPL AREATAXRECEIVABLESGOVERNANCE AND SERVICESCONS. TOTAL
Bad loans       
Amounts at 31.12.201631,69227,2606,177320,6125-385,746
Amounts at 31.12.201530,950n.a.n.a.159,336--190,286
% Change2.4%n.a.n.a.101.2%n.a.-102.7%
Unlikely to pay      -
Amounts at 31.12.201650,900142,74113,622241,518194-448,975
Amounts at 31.12.201539,551n.a.n.a.194,995--234,546
% Change28.7%n.a.n.a.23.9%n.a.-91.4%
Past due loans      -
Amounts at 31.12.2016118,4201,66917,351---137,440
Amounts at 31.12.201558,214n.a.n.a.---58,214
% Change103.4%n.a.n.a.---136.1%
Total net non-performing exposures       
Amounts at 31.12.2016201,012171,67037,150562,130199-972,161
Amounts at 31.12.2015128,715n.a.n.a.354,331--483,046
% Change56.2%n.a.n.a.58.6%n.a.-101.3%
Net performing loans to customers      -
Amounts at 31.12.20162,891,476734,0121,198,48816124,4987,5614,956,051
Amounts at 31.12.20152,719,409n.a.n.a.21130,663103,9972,954,090
% Change6.3%n.a.n.a.(23.8)%(4.7)%(92.7)%67.8%
Total on-balance-sheet 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%
 

Intangible assets and property, plant and equipment and investment property

Intangible assets totalled 15,0 million Euro, compared to 7,2 million Euro at 31 December 2015 (+108,9%).

The item refers to software (14,2 million Euro) as well as goodwill (799 thousand Euro) arising from the consolidation of the investment in IFIS Finance Sp.Z o.o.

Property, plant and equipment and investment property amounted to 110,3 million, up +111,5% from 52,2 million Euro at the end of 2015; the significant increase was largely due to the contribution from the former GE Capital Interbanca Group as well as the capitalisation of the costs for the restructuring of the property in Florence, which in 2016 became the new headquarters of the NPL business area. The normalised balance of property, plant and equipment and investment property totalled 64,0 million Euro, +22,8% from the end of 2015.

At the end of the period, the properties recognised under property, plant and equipment and investment property included the important historical building “Villa Marocco”, located in Mestre – Venice and housing Banca IFIS's registered office, as well as, following the acquisition of the former GE Capital Interbanca Group, two buildings in Milan, housing the registered offices of Interbanca S.p.A. and some Group companies. 

Since Villa Marocco is a luxury property, it is not amortised, but it is tested for impairment at least annually. To this end, they are appraised by experts specialising in luxury properties. During the year, there were no indications requiring to test the assets for impairment.

 

Tax assets and liabilities

These items include current and deferred tax assets and liabilities.

The following table shows the breakdown of current tax assets by type.

CURRENT TAX ASSETS

(in thousands of Euro)
AMOUNTS ATNORMALISED CHANGE
 31.12.201631.12.2016
NORMALISED
31.12.2015ABSOLUTE%
Irap (regional tax on productive activities)10,7288,922-8,922-
Ires (corporate income tax)14,0781,0111,035(24)(2.3)%
Ires on sale of receivables21,27821,27821,278--
Credits from DTA Conversion41,737----
Others1515213650.0%
Total current tax assets87,83631,22622,3158,91139.9%
 

Current tax assets, totalling 87,8 million Euro, included 41,7 million Euro in tax credits from the conversion of deferred tax assets (DTAs) in accordance with Italian Law no. 214/2011, 24,7 million Euro in IRES/IRAP credits claimed in the tax return, and 21,2 million Euro in credits acquired from third parties.

The main types of deferred tax assets are set out below:

DEFERRED TAX ASSETS

(in thousands of Euro)
AMOUNTS ATNORMALISED CHANGE
 31.12.201631.12.2016
NORMALISED
31.12.2015ABSOLUTE%
Differences from PPA253,030--n.a.
Loans to customers (Law 214/2011)192,310--n.a.
Loans to customers42,97836,18438,058(1,874)(4.9)%
Equipment rental1,460--n.a.
Provisions for risks and charges1,2091,209561648115.5%
Others2,19397280316921.0%
Total deferred tax assets493,18038,36539,422(1,057)(2.7)%
 

Deferred tax assets, amounting to 493,1 million Euro, included 253 million Euro in misalignments found during the acquisition of the former GE Capital Interbanca Group (PPA) and 228,5 million Euro in value adjustments on receivables that can be deducted in the following years.

 

Current tax liabilities refer exclusively to IRAP payables, as showed below.

CURRENT TAX LIABILITIES

(in thousands of Euro)
AMOUNTS ATNORMALISED CHANGE
 31.12.201631.12.2016
NORMALISED
31.12.2015ABSOLUTE%
IRAP Balance491-4,093(4,093)(100.0)%
Others--60(60)(100.0)%
Total current tax liabilities491 - 4,153(4,153)(100.0)%
   

The main types of deferred tax liabilities are shown below:

DEFERRED TAX LIABILITIES

(in thousands of Euro)
AMOUNTS AT NORMALISED CHANGE
  31.12.2016 31.12.2016
NORMALISED
31.12.2015 ABSOLUTE %
Loans to customers 13,293 13,293 15,257 (1,964) (12.9)%
Property. plant and equipment 9,433 325 309 16 5.2%
Available for sale securities 394 394 5,770 (5,376) (93.2)%
Others 1,315 407 60 347 578.3%
Total deferred tax liabilities 24,434 14,419 21,396 (6,977) (32.6)%
 

Other assets and liabilities

Other assets amounted to 249,6 million Euro at 31 December 2016 (+203,0% from 31 December 2015). The normalised balance was 155,8 million Euro, up 89,3% from December 2015.

This line item included 7,2 million Euro in receivables due from Italian tax authorities for payments on account (stamp duty and withholding taxes), 27,9 million Euro in funds placed in an escrow account pending the resolution of a dispute, and 15,0 million Euro in VAT credits claimed. The item also included a 43,9 million Euro receivable due from the parent company La Scogliera S.p.A. deriving from the tax consolidation regime. Finally, it also included 26,9 million Euro in receivables due from the buyers of NPL portfolios.

At the end of the period, other liabilities totalled 337,3 million Euro (64,9% compared to December 2015). The normalised balance was 209,0 million Euro, +2,2% from 31 December 2015. The most significant items referred largely to amounts due to customers that have not yet been credited.

 

Funding

FUNDING 
(in thousands of Euro) AMOUNTS AT NORMALISED CHANGE
  31.12.2016 31.12.2016
NORMALISED
31.12.2015 ABSOLUTE %
Due to customers: 5,045,136 4,095,416 5,487,476 (1,392,060) (25.4)%
Repurchase agreements 270,314 270,314 2,278,983 (2,008,669) (88.1)%
Rendimax 4,447,192 3,656,836 3,048,357 608,479 20.0%
Contomax 72,068 69,916 64,912 5,004 7.7%
Other payables 255,562 98,350 95,224 3,126 3.3%
Due to banks 503,964 509,066 662,985 (153,919) (23.2)%
Eurosystem - - 119,792 (119,792) (100.0)%
Repurchase agreements 50,886 50,886 384,225 (333,339) (86.8)%
Other payables 453,078 458,180 158,968 299,212 188.2%
Outstanding securities 1,488,556 - - - n.a.
Total funding 7,037,656 4,604,482 6,150,461 (1,545,979) (25.1)%
 

Total funding, which amounted to 7.037,7 million Euro at 31 December 2016, up 14,4% compared to 31 December 2015, is represented for 71,7% by Payables due to customers (compared to 89,2% at 31 December 2015), for 7,2% by Payables due to banks (compared to 10,8% at 31 December 2015), and for 21,1% by Outstanding securities (zero at 31 December 2015). The normalised balance of funding totalled 4.604,5 million Euro, -25,1% from 31 December 2015.

Payables due to customers at 31 December 2016 totalled 5.045,1 million Euro (-8,1% compared to 31 December 2015). The decrease was the result of the settlement of 2.279,0 million Euro worth of repurchase agreements with underlying government bonds and Cassa di Compensazione e Garanzia as counterparty outstanding at 31 December 2015, which were followed by 270,3 million Euro worth of purchases. Meanwhile, retail funding rose to 4.519,3 million Euro at 31 December 2016, including 4.447,2 from rendimax and 72,1 million Euro from contomax, compared to 3.113,3 million Euro at 31 December 2015 (+45,2%). This was the result of, among other things, the newly introduced 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. The Bank still bears proportional stamp duty costs on rendimax and contomax, which amount to 0,20%.

Payables due to banks, totalling 504,0 million Euro (compared to 663,0 million Euro in December 2015), were down 24,0% because of the early repayment of the TLTRO loan received in December 2014. Since market conditions have changed, the Bank can now raise funding on more favourable terms than said loan. Repurchase agreements with underlying governments bonds outstanding at 31 December 2016 totalled 50,9 million Euro, down from 384,2 million Euro in December 2015 after the Bank settled them and entered into new transactions.

Also term deposits at other banks rose to 453,1 million Euro from 159,0 million Euro at the end of the previous year (+185,0%).

Outstanding securities amounted to 1.448,6 million Euro. They included 83,2 million Euro in bond loans and 725 thousand Euro in certificates of deposits issued by Interbanca S.p.A.,

as well as 1.404,6 million Euro in notes issued by the special purpose vehicles as part of three securitisations launched at the end of 2016, as detailed in Part E of the Notes to the Consolidated Financial Statements.

 

Provisions for risks and charges

PROVISIONS FOR RISKS AND CHARGES 
(in thousands of Euro) AMOUNTS AT NORMALISED CHANGE
  31.12.2016 31.12.2016
NORMALISED
31.12.2015 ABSOLUTE %
Legal disputes 9,577 1,855 1,513 342 22.6%
Tax dispute - - 197 (197) (100.0)%
Other provisions 14,741 - 461 (461) (100.0)%
Total provisions for risks and charges 24,318 1,855 2,171 (316) (14.6)%
 

Here below is the breakdown of the provision for risks and charges at the end of the year by type of dispute compared with the prior year. For the sake of clarity, the provisions deriving from the acquisition of the former GE Capital Interbanca Group are reported separately.

     

Legal disputes

Banca IFIS legal disputes

The provision outstanding at 31 December 2016, amounting to 1,9 million Euro, included 1,8 million Euro for 17 disputes concerning the Trade Receivables segment (the plaintiffs seek 18,0 million Euro in damages), and 100 thousand Euro for 8 disputes concerning the DRL segment.

 

Former GE Capital Interbanca Group legal disputes

The provision outstanding at 31 December 2016, amounting to 7,7 million Euro, included 250 thousand Euro for a dispute involving IFIS Factoring (the plaintiffs seek 500 thousand Euro in damages), 2,0 million Euro for 26 disputes concerning IFIS Leasing (the plaintiffs seek 4,3 million Euro in damages), and 5,5 million Euro for 7 disputes involving Interbanca (the plaintiffs seek 50,6 million Euro in damages).

 

Tax dispute

Banca IFIS tax dispute

The provision for risks at the end of 2015, amounting to 197 thousand Euro, referred to the amount set aside for the verification notices received by the Bank, which had filed an appeal against them with the competent Tax Commission. In July 2016, the Bank reached a full and final settlement with the Italian Revenue Agency, and subsequently paid the agreed amount to settle the above verification notices.

 

Other provisions

Other Banca IFIS provisions

The provision at 31 December 2016 included 2,5 million Euro in the amount set aside for commissions to be paid in early 2017 in order to buy back the senior tranche of the leasing securitisation (eligible securities).

The provision outstanding at 31 December 2015 referred to the amount set aside as per the request of Italy's Interbank Deposit Protection Fund (FITD, Fondo Interbancario di Tutela dei Depositi), of which Banca IFIS is a member. In a letter dated 16 September 2014, the FITD approved another rescue loan (in addition to the measures announced on 9 January 2014 and 17 July 2014) to Banca Tercas, placed under Special Administration. The relevant potential obligation for Banca IFIS amounted to 0,5 million Euro. Therefore, in 2014 Banca IFIS allocated said amount to the provisions for risks and charges. Since the underlying commitments have expired, the Bank has recognised the amount previously set aside through profit or loss.

 

Other former GE Capital Interbanca Group provisions

The provision outstanding at 31 December 2016, amounting to 12,3 million Euro, included 3,7 million Euro in personnel-related expenses and 8,6 million Euro in other provisions, including 3,5 million Euro for customer allowances and 3,8 million Euro as provision for risks on unfunded commitments.

 

Contingent liabilities

See Part B of the Notes to the Consolidated Financial Statements, “provisions for risks and charges”.

   

Equity and capital adequacy ratios

At 31 December 2016, consolidated Equity was 1.218,8 million Euro, compared to 573,5 million Euro at 31 December 2015 (+112,5%). The normalised equity totalled 619,9 million Euro, +8,1% from 31 December 2015. The breakdown of the item and the change compared to the previous year are detailed in the tables below.

EQUITY:BREAKDOWN

(in thousands of Euro)
AMOUNTS AT NORMALISED CHANGE
  31.12.2016 31.12.2016
NORMALISED
31.12.2015 ABSOLUTE %
Share capital 53,811 53,811 53,811 - 0.0%
Share premiums 101,776 101,776 58,900 42,876 72.8%
Valuation reserves: (5,445) (6,109) 5,739 (11,848) (206.4)%
- AFS securities 1,534 955 11,677 (10,722) (91.8)%
- Post-employment benefits (123) (208) (167) (41) 24.6%
- exchange differences (6,856) (6,856) (5,771) (1,085) 18.8%
Reserves 383,835 383,835 298,856 84,979 28.4%
Treasury shares (3,187) (3,187) (5,805) 2,618 (45.1)%
Non-controlling interests 48 - - - n.a.
Profit for the period 687,945 89,795 161,966 (72,171) (44.6)%
Equity 1,218,783 619,921 573,467 46,454 8.1%

EQUITY: CHANGES
(in thousands of Euro)
YEAR 2016
Equity at 31.12.2015 573,467
Increases: 696,886
Profit for the year 687,945
Sale/grant of treasury instruments 8,681
Change in valuation reserve: 44
- Post-employment benefits 44
Other changes 168
Equity attributable to non-controlling interests 48
Decreases: 51,570
Dividends distributed 40,342
Change in valuation reserve: 11,228
- AFS securities 10,143
- exchange differences 1,085
Equity at 31.12.2016 1,218,783
 
 

The change in the valuation reserve for AFS securities recognised in the period was the result of the sale of part of the portfolio, which caused the Bank to reduce the reserve by 5,5 million Euro.

The change in the valuation reserve for exchange differences refers mainly to exchange differences deriving from the consolidation of the subsidiary IFIS Finance Sp. Z o.o..

OWN FUNDS AND CAPITAL ADEQUACY RATIOS

(in thousands of Euro)
AMOUNTS AT
  31.12.2016 31.12.2015 (2)
Common equity Tier 1 Capital(1) (CET1) 1,031,163 464,316
Tier 1 Capital (T1) 1,048,606 473,956
Total own funds 1,071,929 486,809
Total RWA 7,003,305 3,264,088
Common Equity Tier 1 Ratio 14.72% 14.22%
Tier 1 Capital Ratio 14.97% 14.52%
Total Own Funds Capital Ratio 15.31% 14.91%

(1) Common Equity Tier 1 capital includes the profit for the period net of estimated dividends.

(2) Total consolidated own funds (amounting to 486.809 million Euro) differ from the amount reported in the consolidated financial statements for the year ended 31 December 2015 (501.809 million Euro) due to the 15 million Euro dividend payout approved by the Shareholders' Meeting of the parent company La Scogliera S.p.A. on 23 March 2016. The consolidated supervisory reports at 31 December 2015, as well as the relevant capital adequacy ratios, had already been adjusted at the end of March 2016 to account for said dividend payout. The data on consolidated Own Funds and capital adequacy ratios account for the impact of said distribution.

 

Consolidated own funds, risk-weighted assets and solvency ratios at 31 December 2016 were determined based on the regulatory principles set out in Directive 2013/36/EU (CRD IV) and Regulation (EU) 575/2013 (CRR) dated 26 June 2013, which were transposed in the Bank of Italy's Circulars no. 285 and 286 of 17 December 2013.

Article 19 of the CRR requires to include the unconsolidated Holding of the banking group in prudential consolidation. The capital adequacy ratios of the Banca IFIS Group alone, presented exclusively for information purposes, would be as showed in the following table.

OWN FUNDS AND CAPITAL ADEQUACY RATIOS:BANCA IFIS GROUP SCOPE (in thousands of Euro) AMOUNTS AT
  31.12.2016 31.12.2015
Common equity Tier 1 Capital(1) (CET1) 1.099.249 514.453
Tier 1 Capital (T1) 1.099.249 514.453
Total own funds 1.099.401 514.453
Total RWA 6.999.061 3.261.103
Common Equity Tier 1 Ratio 15,71% 15,78%
Tier 1 Capital Ratio 15,71% 15,78%
Total Own Funds Capital Ratio 15,71% 15,78%

(1) Common Equity Tier 1 capital includes the profit for the period net of estimated dividends. 

The measures concerning own funds provide for the gradual phase-in of a new regulatory framework, with a transitional period lasting until 2017 during which some elements that will be accounted for or deducted in full once the provisions become effective will have only a limited impact.

The Banca IFIS Group, in accordance with the transitional provisions in the Bank of Italy's Circular no. 285 of 17 December 2013 as amended, calculated its own funds at 31 December 2016 by excluding the unrealised gains referring to the exposures to central governments classified under “Available for sale financial assets” as per IAS 39, resulting in a net positive amount of 391 thousand Euro (positive 5,9 million Euro at 31 December 2015).