Section 1 – Consolidated Equity

A. Qualitative information

Managing equity concerns a set of policies and decisions necessary to establish capital levels that are consistent with the assets and risks taken by the bank. The Banca IFIS Group is subject to the capital adequacy requirements established by the so-called Basel Committee (CRR/CRD IV).

The Board of Directors constantly monitors that the Bank meets the minimum supervisory requirements, and therefore the capital adequacy ratios, as well as complies with the capital limits set out in the Risk Appetite Framework (RAF).

Furthermore, also in accordance with the European Central Bank's recommendation of 28 January 2015, the Bank ensures compliance with capital adequacy ratios through a pay-out policy linked to the achievement of the above minimum capital requirements, as well as the careful assessment of the potential impact of extraordinary financial operations (share capital increases, convertible loans, etc.).

The Group’s capital adequacy is further assessed and monitored every time an extraordinary operation is planned. In these cases, based on available information regarding said operations, the Banca IFIS Group estimates the impact on capital adequacy ratios as well as the RAF, and considers any measures necessary to meet the requirements.

Transactions on treasury shares

At 31 December 2015, the bank held 739.446 treasury shares recognised at a market value of 5,8 million Euro and a par value of 739.446 Euro.

During 2016 Banca IFIS made the following transactions on treasury shares:

  • as variable pay for the 2015 financial results, it awarded the Top Management 9.295 treasury shares at an average price of 26,92 Euro, for a total of 250 thousand Euro and a par value of 9.295 Euro, making profits of 191 thousand Euro that, in compliance with IASs/IFRSs, were recognised under the capital reserve;
  • it sold, at an average price of 24,09 Euro, 350.000 treasury shares with a market value of 8,4 million Euro and a par value of 350.000 Euro, making profits of 5,9 million Euro that, in compliance with IASs/IFRSs, were recognised under the capital reserve.

The remaining balance at the end of the year was 380.151 treasury shares with a market value of 3,2 million Euro and a par value of 380.151 Euro.

 

B. Quantitative information

B.1 Consolidated equity: breakdown by type of entity

Equity itemsBanking groupInsurance companiesOther companiesConsolidation eliminations & adjustments31.12.2016
      
Share capital53,811---53,811
Share premiums101,776---101,776
Reserves383,835---383,835
Prepayments on dividends-----
Equity instruments-----
(Treasury shares)(3,187)---(3,187)
Valuation reserves:(5,445)---(5,445)
- Available for sale financial assets1,534---1,534
- Property. plant and equipment-----
- Intangible assets-----
- Foreign investment hedges-----
- Cash flow hedges-----
- Exchange differences(6,856)---(6,856)
- Non-current assets under disposal-----
- Actuarial gains (losses) on defined benefit plans(123)---(123)
- Share of valuations reserves of equity-accounted investments-----
- Specific revaluation laws-----
Profit (loss) for the year (+/-) of the Group and minority interests687,993---687,993
Equity1,218,783---1,218,783
 

B.2 Valuation reserves of available for sale financial assets: breakdown

Assets/Amounts Banking groupInsurance companiesOther companiesConsolidation eliminations & adjustments31.12.2016
 Positive reserveNegative reservePositive reserveNegative reservePositive reserveNegative reservePositive reserveNegative reservePositive reserveNegative reserve
1, Debt securities938 ------938-
2, Equity securities597(1)------597(1)
3, UCITS units----------
4, Loans----------
Total 31.12.20161,535(1)------1,535(1)
Total 31.12.201511,678(1)------11,678(1)
     

B.3 Valuation reserves of available for sale financial assets: annual changes

 Debt securitiesEquity securitiesUCITS unitsLoans
1. Opening balance11,678(1)--
2. Increases2,081597--
2.1 Fair value gains182597--
2.2 Reclassification to profit or loss of negative reserves:----
- from impairment losses----
- from realisation----
2.3 Other changes1,899---
3. Reductions12,821---
3.1 Fair value losses7,539---
3.2 Impairment losses----
3.3 Reclassification to profit or loss of positive reserves:5,282---
- from realisation5,282---
3.4 Other changes----
4. Closing balance938596--