Section 11 – Administrative expenses - Item 180

11.1 Personnel expenses: breakdown

Type of expense/Sectors31.12.201631.12.2015
1) Employees(61,880)(44,656)
 a) salaries and wages(41,144)(32,587)
 b) social security contributions(11,313)(9,239)
 c) post-employment benefits(2,047)(1,680)
 d) pension expense(9)-
 e) allocations for post-employment benefits(195)(20)
 f) allocations to pensions and similar provisions:--
   - defined contribution plans--
   - defined benefit plans--
 g) payments made to supplementary external funds:(48)-
   - defined contribution plans(48)-
   - defined benefit plans--
 h) costs arising from share-based payment agreements--
 i) other employee benefits(7,124)(1,130)
2) Other serving employees(123)(120)
3) Directors and Statutory Auditors(3,993)(3,566)
4) Retired personnel--
5) Reimbursements of seconded staff expenses127-
6) Reimbursements of third-party seconded staff expenses(9)-
 Total(65,878)(48,342)
 

Personnel expenses rose 36,3% and included 5,5 million Euro in costs deriving from the agreements with some top executives of the GE Capital Interbanca Group attributable to the previous management.

Post-employment benefits include both contributions that employees have chosen to leave in the company and to be paid to INPS’s Treasury Fund, and contributions to be paid to supplementary pension funds. Allocations for post-employment benefits refer to the revaluation of post-employment benefits earned up to 31 December 2006 and left in the company.

Besides the mentioned 5,5 million Euro in costs, other employee benefits included expenses incurred for training and refresher courses.

11.2 Average number of employees by category

Employees:31.12.201631.12.2015
Employees: 1,023.5 671.0
(a) senior managers43.524.0
(b) middle managers275.051.5
(c) remaining personnel705.0595.5
Other personnel--
       

11.5 Other administrative expenses: breakdown

Type of expense/Amounts31/12/201631/12/2015
Expenses for professional services(56,995)(31,044)
Legal and consulting services(25,511)(13,948)
Auditing(428)(226)
Outsourced services(31,056)(16,870)
Direct and indirect taxes(14,882)(8,748)
Expenses for purchasing goods and other services(54,399)(39,036)
Customer information(11,376)(6,793)
Software assistance and hire(5,550)(3,267)
Postage of documents(5,254)(3,632)
Property expenses(4,667)(4,585)
Advertising and inserts(3,769)(2,150)
Car fleet management and maintenance(2,407)(2,264)
Telephone and data transmission expenses(1,923)(1,441)
Employee travel(1,665)(1,120)
Other sundry expenses(17,788)(13,784)
Total administrative expenses (126,276) (78,828)
 

Other administrative expenses were up 60,2% because of the costs incurred for the acquisition of the former GE Capital Interbanca Group (9,5 million Euro in legal and consulting fees) and the higher business volumes in the NPL Area. The relevant costs for collecting debts and gathering information on clients (29,4 and 9,4 million Euro, compared to 15,4 and 5,3 million Euro at 31 December 2015, respectively), are included in this item of the income statement. The cost of gathering information on clients specifically concern master data and employment information search costs, which are necessary to reclassify the positions being processed.

Type of servicesService providerBeneficiaryFees (units of Euro)
Independent auditors’ feesEY S.p.A.Banca IFIS S.p.A.161,925
Subsidiaries153,523
Certification servicesEY S.p.ABanca IFIS S.p.A. 
  Subsidiaries-
Tax consultancy servicesEY S.p.ABanca IFIS S.p.A.-
  Subsidiaries-
Other servicesEY S.p.ABanca IFIS S.p.A.20,000
  Subsidiaries1,183
Total  336,631