Section 1 – Interest - Items 10 and 20

1.1 Interest receivable and similar income: breakdown

 Items/TypesDebt securitiesLoansOther transactions31.12.201631.12.2015
1Financial assets held for trading-----
2Financial assets at fair value-----
3Available for sale financial assets11,083--11,08343,991
4Held to maturity financial assets----22,110
5Due from banks-35428463444
6Loans to customers27100,754213,018313,799183,550
7Hedging derivativesXX---
8Other assetsXX9393115
 Total11,110100,789213,539325,438250,210
 

The decline in interest on financial assets compared to 2015 was essentially the result of the reduction in interest income from the debt securities portfolio—largely because of the rebalancing completed in April 2015 as well as the downsizing of the portfolio itself.

The subline item Loans to customers, Other transactions, include the 15,8 million Euro positive effect of the implementation of the new model to estimate the cash flows of health service receivables. This was recognised under interest income and commented on in the introductory notes on how to read the data of the Directors’ Report and Part A of these Notes. It also included 3,1 million Euro in positive interest expense attributable to the decline in funding rates.

1.3 Interest receivable and similar income: other information

1.3.1 Interest income on foreign currency financial assets

 31.12.201631.12.2015
Interest income on foreign currency financial assets10,3241,950
 

1.3.2 Interest income on finance leases

 31.12.201631.12.2015
Interest income on finance leases3,039-
     

1.4 Interest due and similar expenses: breakdown

 Items/TypesPayablesSecuritiesOther transactions31.12.201631.12.2015
       
1Due to Central banks(22)X(1,879)(1,901)(303)
2Due to banks(1,467)X-(1,467)(325)
3Due to customers(50,124)X(4)(50,128)(40,936)
4Outstanding securitiesX(3,439)-(3,439)-
5Financial liabilities held for trading-----
6Financial liabilities at fair value-----
7Other liabilities and provisionsXX(320)(320)(20)
8Hedging derivativesXX---
 Total(51,613)(3,439)(2,203)(57,255)(41,584)
 

Interest expense on outstanding securities included 3,0 million Euro in funding costs for the securitisations carried out in late 2016, as detailed in Part E of these Notes.

Interest expense on payables due to customers related to the “payables” category at 31 December 2016 referred for 49,1 million Euro to the rendimax savings account, up from 39,8 million Euro at 31 December 2015, as a result of 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.

1.6 Interest due and similar expenses: other information

1.6.1 Interest expense on foreign currency liabilities

  31.12.2016 31.12.2015
Interest expense on foreign currency liabilities (293) (183)
 

1.6.2 Interest expense on liabilities for finance leases

  31.12.2016 31.12.2015
Interest expense on liabilities for finance leases (64) (141)