Section 1 – Due to banks - Item 10

1.1 Due to banks: breakdown by type

Type of operation/Components of group 31.12.201631.12.2015
   
1. Due to Central banks 1,179119,792
2. Due to banks 502,785543,193
2.1 Current accounts and on demand deposits55,48025,241
2.2 Term deposits396,419133,727
2,3 Loans50,886384,225
2.3.1 Repurchase agreements50,886384,225
2.3.2 Other--
2.4 Debt from buyback commitments on treasury equity instruments--
2.5 Other payables--
Total 503,964662,985
Fair value - level 1--
Fair value - level 2--
Fair value - level 3503,964662,985
Total fair value 503,964662,985
 

The fall in Payables due to banks from the previous year was the result of the early repayment of the TLTRO loan received in December 2014 and the decline in repurchase agreements entered into with other banks.

The fair value of payables due to banks is in line with the relevant carrying amount, considering the fact that interbank deposits are short- or very short-term.

     

Section 2 – Due to customers – Item 20

2.1 Due to customers: breakdown by type

Type of operation/Components of group 31.12.201631.12.2015
   
1. Current accounts and on demand deposits931,879748,487
2. Term deposits3,824,4012,447,604
3. Loans275,9872,282,967
3.1 repurchase agreements270,3142,278,983
3.2 other5,6733,984
4. Debt from buyback commitments on treasury equity instruments--
5. Other payables12,8698,418
Total 5,045,1365,487,476
Fair value - level 1--
Fair value - level 2--
Fair value - level 35,065,5785,491,311
Total fair value 5,065,5785,491,311
 

Current accounts and on demand deposits at 31 December 2016 included funding from the on demand rendimax savings account and the contomax online current account, amounting to 772,7 million and 23,7 million Euro, respectively; term deposits included 3.722,9 million Euro in funding from the fixed-term rendimax and contomax accounts.

Repurchase agreements were entered into with Cassa di Compensazione e Garanzia as counterparty and government bonds as the underlying assets.

It should be noted that the Group does not carry out "term structured repo" transactions.

Other loans refer mainly to payables for finance leases; they are recognised by using the financial method set out in IAS 17 to measure the leased property housing the NPL area (DRL sector), as detailed in paragraph 2.5 below.

Other payables refer largely to payables to sellers of tax or non-performing receivables portfolios with deferred price settlement.

 

2.5 Payables for finance leases

 31.12.201631.12.2015
Payables for finance leases3,8023,984
 

The payables described above relate for 3,8 million Euro to the real estate lease the former company Toscana Finanza SpA entered into in 2009 for the property located in Florence, which housed the headquarters of the NPL Area until August 2016. The term of the lease entered into with Centro Leasing S.p.A. is 18 years (from 01.03.2009 to 01.03.2027) and provides for the payment of 216 monthly instalments of 28.490 Euro, including the principal, interest and an option to buy the asset at the end of the lease for 1.876.800 Euro.

Please see part E, letter D of these Notes for details on the assignment of the lease agreement dated 13 May 2014 and why the Bank did not derecognise the relevant liability. 

The rest of payables for finance leases refer to the purchase of motor vehicles by the subsidiary IFIS Finance.

Section 3 – Outstanding securities – Item 30

3.1 Outstanding securities: breakdown by type

Securities 31.12.201631.12.2015
  Carrying amount Fair value  Carrying amount Fair value
   Level1 Level2 Level3   Level1 Level2 Level3
A. Securities         
1. Bonds1,487,83183,173-1,404,609----
1.1 structured bonds--------
1.2 other bonds1,487,83183,173-1,404,609----
2. Other securities725--725----
2.1 structured securities--------
2.2 other725--725----
Total 1,488,55683,173-1,405,334----
 

Outstanding securities 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 in notes issued by the special purpose vehicles as part of three securitisations launched at the end of 2016. These were consolidated in order to provide a comprehensive view of the transactions.

   

Section 4 – Financial liabilities held for trading - item 40

4.1 Financial liabilities held for trading: breakdown by type

Type / Amounts31.12.201631.12.2015
 NVFVFV *NVFVFV *
  Level 1Level 2Level 3  Level 1Level 2Level 3 
A. Cash liabilities           
1. Due to banks----------
2. Due to customers----------
3. Debt securities--------- 
3.1 Bonds--------- 
3.1.1 Structured---------X
3.1.2 Other bonds---------X
3.2 Other securities--------- 
3.2.1 Structured---------X
3.2.2 Other---------X
Total A ----------
B. Derivatives           
1. Financial derivatives -46,4472,031  --21 
1.1 For tradingX-46,4472,031XX--21X
1.2 Connected to the fair value optionX---XX---X
1.3 OtherX---XX---X
2. Credit derivatives ---  --- 
2.1 For tradingX---XX---X
2.2 Connected to the fair value optionX---XX---X
2.3 OtherX---XX---X
Total B  -46,4472,031  --21 
Total (A+B)X-46,4472,031XX--21X

Key

FV= fair value

FV* = Fair value calculated excluding changes in value due to changes in the issuer’s creditworthiness compared to the date of issuance.

NV = Nominal or notional value

L1= Level 1

L2= Level 2

L3= Level 3

Concerning level 2 liabilities held for trading, see the comments in section 2 under assets.

Level 3 liabilities refer to cross currency swaps with other banks.

 

Section 8 – Tax liabilities – Item 80

See section 14 under assets.

 

Section 10 - Other liabilities - Item 100

10.1 Other liabilities: breakdown

 31.12.201631.12.2015
Due to suppliers58,87812,334
Due to personnel22,1055,088
Due to the Tax Office and Social Security agencies17,9344,902
Sums available to customers13,3759,077
Accrued expenses and deferred income12,0824,665
Other payables212,951168,532
Total 337,325 204,598
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Payables due to personnel included the bonuses for the Top Management, including those for the previous years, subject to deferred payment, as well as payables for unused annual leave.

Other payables included approximately 167 million Euro in amounts due to customers that have not yet been credited and a 9,1 million Euro payable due to one of the buyers of DRL receivables. They also included 4,2 million Euro to be paid to the Interbank Deposit Protection Fund as additional contribution for the year 2016.

 

Section 11 - Post-employment benefits - Item 110

11.1 Post-employment benefits: annual changes

 31.12.201631.12.2015
A. Opening balance 1,4531,618
B. Increases 6,54620
B.1 Allocations for the year19520
B.2 Other changes57-
Business combinations6,294-
C. Reductions 339185
C.1 Payments made131150
C.2 Other changes20835
D. Closing balance 7,6601,453
Total7,6601,453
 

Payments made represent the benefits paid to employees during the year.

Other decreases include the impact of the discounting of benefits earned up to 31 December 2006 and still held in the company, which, based on the changes introduced by the new IAS 19, are recognised through equity.

Pursuant to the requirements of the ESMA in the document “European common enforcement priorities for 2012 financial statements” of 12 November 2012, the discount rate used was the interest rate based on the market yield of a benchmark of AA-rated European corporate bonds with maturity over 10 years. The same interest rate was used to discount the obligations at 31 December 2015.

     

11.2 Other information

Under IASs/IFRSs, a company’s liabilities regarding benefits that will be paid to employees at the conclusion of the employer/employee relationship (post-employment benefits) should be recognised based on actuarial calculations of the amount that will be paid at maturity.

Specifically, these allocations must take into account the amount already earned over the period at the reporting date, projecting it into the future in order to calculate the amount that will be paid at the conclusion of the employer/employee relationship. This amount must then be discounted to take into account the time that will pass until payment.

Following the coming into force of the 2007 Budget Law, which brought the reform regarding supplementary pension plans—as per Legislative Decree no. 252 of 5 December 2005—forward to 1 January 2007, the employee was given a choice as to whether to allocate the post-employment benefits earned as from 1 January 2007 to supplementary pension funds or to maintain them in the company, which would then transfer it to a dedicated fund managed by INPS (the Italian National Social Security Institute).

This reform has led to changes in the accounting of such benefits as for both the benefits earned up to 31 December 2006 and those earned from 1 January 2007.

In particular:

  • benefits earned as from 1 January 2007 constitute a defined-contribution plan, regardless of whether the employee has chosen to allocate them to a supplementary pension fund or to INPS’s Treasury Fund. Those benefits shall be calculated according to contributions due without applying actuarial methods;
  • benefits earned up to 31 December 2006 continue to be considered as a defined-benefit plan, and as such are calculated on an actuarial basis which, however, unlike the calculation method applied until 31 December 2006, no longer requires that the benefits be proportionally attributed to the period of service rendered: the employee’s service is considered entirely accrued due to the change in the accounting nature of benefits earned as from 1 January 2007.

Section 12 – Provision for risks and charges - Item 120

12.1 Provisions for risks and charges: breakdown

Items/Components31.12.201631.12.2015
1 Provisions for pensions--
2. Other provisions for risks and charges24,3182,171
2.1 legal disputes9,5771,513
2.2 personnel expenses:3,687-
2.3 other11,054658
Total24,3182,171
       

12.2 Provisions for risks and charges: annual changes

Items/Components31.12.2016
 Provisions for pensionsOther provisions
A. Opening balance -2,171
B. Increases -24,321
B.1 Allocations for the year-2,385
B.2 Changes due to the passage of time--
B.3 Changes due to changes in the discount rate--
B.4 Other changes--
Business combinations-21,936
C. Reductions -2,174
C.1 Used during the year-808
C.2 Changes due to changes in the discount rate--
C.3 Other changes-1,366
D. Closing balance -24,318
 

12.4 Provisions for risks and charges – Other provisions

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 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

Here below are the most significant contingent liabilities outstanding at 31 December 2016. Based on the opinion of the legal advisers assisting the subsidiaries, they are considered possible, and therefore they are only disclosed.

For the sake of clarity, the contingent liabilities deriving from the acquisition of the former GE Capital Interbanca Group are reported separately.

 

Legal disputes

Banca IFIS legal disputes

Banca IFIS recognises contingent liabilities amounting to 7,4 million Euro in claims, represented by 12 disputes: 6 refer to disputes concerning the Trade Receivables segment, for a total of 7,2 million Euro, 2 to labour disputes, for 167 thousand Euro, and 4 to the DRL segment, for 71 thousand Euro. Banca IFIS, supported by the legal opinion of its lawyers, made no provisions for these positions, as the risk of defeat is considered possible. 

Former GE Capital Interbanca Group legal disputes

Here below are the most significant contingent liabilities of the former GE Capital Interbanca Group.

Lawsuit against Interbanca to cancel a settlement

A lawsuit was filed against Interbanca in 2010 concerning a position for which the company had entered into a settlement agreement with the Receiver appointed at the time for the extraordinary administration proceedings involving a debtor of Interbanca. The new Receiver questioned the validity of the agreement, seeking 168 million Euro in damages from Interbanca, among others. 

During the dispute, some defendants made various demands to Interbanca, asking that the company indemnifies them against the claims made by the plaintiff or to benefit from the settlement agreement entered into between Interbanca and the then Receiver.

The Court deemed the settlement agreement valid and enforceable, dismissing all claims of the Plaintiffs and the request the other defendants made to Interbanca.

The Court did not rule on the requests submitted by two defendants that Interbanca indemnifies them, and therefore not even on the objections raised by the company, separately ordering the proceeding involving also Interbanca to continue. As part of the first-instance trial, which is still pending, the court-appointed expert witness recently filed his report, concluding that the three debtors have no right to seek damages from the defendants. The plaintiffs objected to the decision and asked for another expert witness to prepare a new report or complement the one already filed. The Court has adjourned the case. The plaintiffs have appealed against the part of the first-instance ruling considering the settlement agreement valid and enforceable, reducing the damages they claim to approximately 149 million Euro. In the ruling issued on 10 March 2017, the Appeals Court dismissed the appeal, upholding the first-instance ruling and awarding costs against the plaintiffs. As mentioned, the risk assessment also accounts for the opinions of external lawyers as well as the positive indications from the first- and second-instance rulings. As mentioned, the risk assessment also accounts for the opinions of external lawyers as well as the positive indications from the first- and second-instance rulings.

 

Legal proceedings concerning a lawsuit for damages resulting from an extraordinary operation involving an industrial company as well as environmental damage

In early 2017, the officials of an extraordinary administration proceeding involving a chemical company in which Interbanca indirectly held a stake between 1999 and 2004 filed a lawsuit for damages.

The lawsuit was filed against Interbanca and 60 other defendants—corporations and individuals, including two former employees and one former director of Interbanca, which were held harmless by the latter—to ascertain their alleged joint responsibility and sentence them to pay for the damages allegedly caused to the company in extraordinary administration, initially estimated to be at least 388 million Euro.

The plaintiff alleged that the direct and indirect owners of the company in extraordinary administration, including Interbanca as well the former directors and statutory auditors of the company in extraordinary administration, had engaged in unlawful conduct. According to the plaintiff, the damages were caused by a spin-off launched by the company after it was placed into extraordinary administration, to the detriment of the company itself and its creditors. 

In 2013, the receiver sought approximately 3,5 billion Euro in damages from the defendants, including Interbanca, for alleged environmental damage caused by the operation of chemical production plants owned by the company in extraordinary administration and its subsidiaries.  Italy’s Ministry of the Environment and the Protection of the Territory and the Sea as well as the Ministry of Economy and Finance voluntarily joined the proceedings to support the plaintiff's claims.

The dispute was resolved—at least as far as most defendants, including Interbanca and its two former employees and its former director, are concerned—with the ruling issued on 10 February 2016, The Court dismissed the request to join the proceedings filed by Italy’s Ministry of the Environment and the Protection of the Territory and the Sea as well as the Ministry of Economy and Finance as inadmissible, dismissed all claims for damages filed by the plaintiff against, among others, Interbanca, its former employees and its former director, and awarded costs against the plaintiff and the Ministries.

In March 2016, both the Ministries and the plaintiff filed an appeal against the ruling, and the hearings were scheduled for 19 July 2016 and 4 October 2016, respectively. At the first hearing on the appeal

filed by the Ministries, the Court adjourned the case to the 4 October 2016 hearing on the appeal filed by the plaintiff, combining the two proceedings.

In November 2016, Interbanca, the two former employees and the managing director involved entered into separate settlement agreements with the plaintiff, which withdrew the claims against Interbanca and the three individuals. In turn, these waived the costs awarded to them in the first-instance ruling.

To settle the pending appeal proceedings, the parties formally exchanged their waivers, and at the hearing on 21 February 2017, the plaintiff's attorney announced the finalisation of the settlement agreement with the Bank and the three mentioned individuals, filing the respective waivers. The Court adjourned the case to 16 June 2017 to ascertain the performance of all settlement agreements between the plaintiff and the defendants. Meanwhile, the appeal filed by the Ministries is still pending.

On 28 July 2015, the Ministry of the Environment and the Protection of the Territory and the Sea served Interbanca with an order requiring it and the other recipients effective immediately to take all actions necessary to control, limit, remove or otherwise manage any factor that could potentially cause damage at the three industrial plants operated by the company in extraordinary administration that had filed the lawsuit described above. Interbanca appealed against the order with the competent Administrative Court, asking for its suspension.

On 21 March 2016, the Regional Administrative Court issued its ruling, upholding Interbanca's appeal and cancelling the order. On 15 July 2016, the Ministry of the Environment and the Protection of the Territory and the Sea appealed against the decision. The Ministry also filed an appeal with the Italian Council of State against the rulings issued in the proceedings brought by all the other recipients of the order of the Ministry of the Environment and the Protection of the Territory and the Sea dated 24 July 2015. A hearing has not yet been scheduled.

 

Arbitration concerning an equity interest in an industrial company

In early August 2016, Interbanca was served with a notice of arbitration at the National and International Arbitration Chamber of Milan by a company owning a controlling interest in a IT services company in which Interbanca owns a non-controlling interest.

The dispute specifically concerns the validity and enforceability of Interbanca's exit from the investment, especially with reference to the put option the plaintiff granted to Interbanca under the agreements between the parties. Interbanca exercised the put option in accordance with the provisions of the agreements in force before the commencement of the arbitration. To date, the plaintiff has not yet estimated the alleged damages, asking the Arbitration Board to assess or liquidate them during the proceeding—including through an equitable remedy.

 

Tax dispute

Banca IFIS tax dispute

The contingent liabilities deriving from the verification notices for the fiscal years 2004 and 2005 were written off after reaching a settlement with the tax authorities on 13 June 2016. Under the settlement agreement, Banca IFIS paid 1,8 million Euro (including 1,1 million Euro in taxes, 388 thousand Euro in penalties, and 351 thousand Euro in interest). 

On 23 December 2016, Banca IFIS received a VAT verification notice totalling 105 thousand Euro, without assessing any penalties and interest. Banca IFIS, supported by its tax advisers, decided to file an appeal and considered the risk of defeat possible, but not probable: therefore, it did not allocate funds to the provision for risks and charges.

Former GE Capital Interbanca Group tax disputes

Dispute concerning withholding taxes on interest paid in Hungary

Companies involved: Interbanca Spa and IFIS Leasing Spa (including the merged GE Leasing Italia Spa)

The Italian Revenue Agency contested the failure to pay the 27% withholding tax on the interest paid to the Hungarian financial company of the GE group without any withholding tax pursuant to the International Convention between Italy and Hungary for the avoidance of double taxation. The Italian Revenue Agency determined that the Hungarian entity was not the actual beneficiary of the interest paid by the Italian firms, but only a conduit company.

According to the Italian Revenue Agency, the beneficiary is a company allegedly incorporated in Bermuda, therefore the International Convention between Italy and Hungary for the avoidance of double taxation does not apply. Entities in tax havens are subject to a 27% withholding tax.

Therefore, for the years between 2007 and 2011, the Italian Revenue Agency assessed approximately 68 and 42 million Euro in additional withholding taxes against Interbanca Spa and IFIS Leasing Spa, respectively,

as well as administrative penalties amounting to 150/250%.

The Companies involved filed an appeal against the verification notices pursuant to the law with the competent Tax Commissions, paying 1/3 of the tax, i.e. nearly 25 million Euro, as provisional enrolment on the tax register.

Following the exchange of information pursuant to Council Directive EU/2011/16, Hungary's tax authority concluded that the GE group's Hungarian company must be legitimately considered the beneficiary of the interest received from the Italian counterparties”.

So far, all rulings issued by the competent Provincial Tax Commissions (Turin and Milan) have fully upheld the appeals. As expected, the Italian Revenue Agency has appealed against these decisions.

Dispute concerning the write-off of receivables

Company involved IFIS Leasing Spa

The Italian Revenue Agency has reclassified the write-off of receivables made by the Company in 2004, 2005, 2006 and 2007 and added in the years between 2005 and 2011 to losses on receivables—without any actual evidence.

For the years 2004/2011, the Agency assessed 755 thousand Euro in additional taxes and administrative penalties amounting to 100%.

Dispute concerning the VAT treatment of insurance mediation activities

Company involved IFIS Leasing Spa

The Italian Revenue Agency challenged the failure to apply the pro-rata mechanism in the years between 2007 and 2010 concerning the VAT deduction for passive transactions in exchange for VAT-exempt commissions received from insurance companies for insurance mediation activities that are ancillary to the core vehicle leasing business (which is subject to VAT).

For the years 2007/2010, the Agency assessed 3 million Euro in additional VAT and administrative penalties amounting to 125%.

 

Reimbursements

In line with market practice, under the purchase agreement for the former GE Capital Interbanca Group, the seller (GE Capital International Limited) made a series of representations and warranties related to Interbanca and other Investees. Similarly, the agreement also contains a limited series of representations and warranties made by Banca IFIS, which concern mostly its ability to finalise the acquisition.

In addition, the agreement includes a series of special reimbursements paid by the seller related to the main legal and tax disputes involving the former GE Capital Interbanca Group companies.

For more details, see Section G in the Notes.

   

Section 15 – Equity attributable to owners of the parent company – Items 140, 160, 170, 180, 190, 200 and 220

15.1 Share capital and treasury shares: breakdown

Item 31.12.201631.12.2015
190Share capital (in thousands of Euro)53,81153,811
 Number of ordinary shares53,811,09553,811,095
 Nominal amount of ordinary shares1 Euro1 Euro
200Treasury shares (in thousands of Euro)3,1875,805
 Number of treasury shares380,151739.446
 

15.2 Share capital - number of parent company shares: annual changes

Headings/TypesOrdinaryOthers
A. Shares held at the beginning of the year53,811,095-
- fully paid-up53,811,095-
- not fully paid-up--
A.1 Treasury shares (-)739,446-
A.2 Outstanding shares: opening balance53,071,649-
B. Increases359,295-
B.1 New issues--
- paid:--
- business combinations--
- conversion of bonds--
- exercise of warrants--
- other--
- free:--
- in favour of employees--
- in favour of directors--
- other--
B.2 Sale of treasury shares350,000-
B.3 Other changes9,295-
C. Reductions--
C.1 Annulments--
C.2 Buybacks of treasury shares--
C.3 Company sell-offs--
C.4 Other changes--
D. Outstanding shares: closing balance53,430,944-
D.1 Treasury shares (+)380,151-
D.2 Shares held at the end of the year53,811,095-
- fully paid-up53,811,095-
- not fully paid-up--
 

15.3 Share capital: other information

The share capital is composed of 53.811.095 ordinary shares with a nominal value of 1 Euro each, bearing no rights, liens and obligations, including those relating to dividend distribution and capital redemption.    

15.4 Profit reserves: other information

Items/Components31.12.201631.12.2015
Legal reserve10,76210,762
Extraordinary reserve357,955237,553
Other reserves9,6858,463
Total profit reserves 378,402256,778
Buyback reserve3,1875,805
Future buyback reserve-34,195
Other reserves2,2462,078
Total item 170 reserves 383,835298,856
 

Pursuant to art. 1, paragraph 145 of the 2014 Budget law (Law no. 147 of 27 December 2013), the Bank realigned the difference between the tax base and carrying amount of property, plant and equipment recognised at 31 December 2012 and still held at 31 December 2013.

The amount corresponding to the higher values following the realignment, net of the substitute tax, generated a 7,4 million Euro untaxed reserve.

Other information

1. Commitments and guarantees granted

Operations 31.12.2016 31.12.2015
1) Financial guarantees 191,585 131,293
a) Banks 11 -
b) Customers 191,574 131,293
2) Commercial guarantees - -
a) Banks - -
b) Customers - -
3) Irrevocable commitment to grant funds 225,585 65,855
a) Banks - 3,674
i) certain use - 3,674
ii) uncertain use - a-
b) Customers 225,585 62,181
i) certain use 77,883 13,766
ii) uncertain use 147,702 48,415
4) Commitments underlying credit derivatives: sale of protection - -
5) Assets used as collateral by third parties - -
6) Other commitments 145,290 91,296
Total 562,460 288,444
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Financial guarantees granted to customers essentially refer to guarantees granted in favour of invoice sellers for collected tax receivables.

Other commitments refer to unused bank overdraft facilities on customers’ current accounts.

 

2. Assets used as collateral for own liabilities and commitments

Portfolios31.12.201631.12.2015
1. Financial assets held for trading--
2. Financial assets at fair value--
3. Available for sale financial assets30,117-
4. Held to maturity financial assets --
5. Due from banks--
6. Loans to customers--
7. Property, plant and equipment--
 

Available for sale financial assets refer to government bonds used as collateral with the Bank of Italy.

 

5. Administration and mediation on behalf of third parties

Type of servicesAmounts
1. Execution of orders on behalf of clients-
a) purchases-
1. settled-
2. unsettled-
b) sales-
1. settled-
2. unsettled-
2. Portfolio management:-
a) individual-
b) collective-
3. Safekeeping and administration of securities1,431,736
a) third party securities in custody: associated with depositary bank-
services (excluding portfolio management) 
1. securities issued by consolidated companies-
2. other securities-
b) other third party securities in custody (excluding portfolio management): other1,037,645
1. securities issued by consolidated companies217,321
2. other securities820,324
c) third party securities held with third parties1,037,645
d) own securities held with third parties394,091
4. Other transactions-

The subsidiary Interbanca provides safe custody and management of securities.