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).

Ensuring that supervisory and capital adequacy requirements are met is a dynamic process based on objectives set right from the planning stage. Said objectives account for the potential evolution of risk, as well as the provisions of the Risk Appetite Framework (so-called RAF), which is constantly monitored.

Furthermore, also in accordance with the European Central Bank's recommendation of 28 January 2015, the Bank ensures compliance with capital adequacy 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.).

Thus, the Bank monitors compliance with regulatory capital ratios and ensures capital adequacy as measured under the RAF throughout the year and on a quarterly basis.

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 and considers the necessary measures, if any, to meet requirements.

Transactions on treasury shares

The Ordinary Shareholders’ Meeting of 17 April 2014 renewed the authorisation to purchase and sell treasury shares, pursuant to art. 2357 et seq. of the Italian Civil Code, as well as art. 132 of Legislative Decree 58/98, establishing a price interval within which the shares can be bought between a minimum of 4 Euro and a maximum of 25 Euro, for a total amount of 40 million Euro. The Meeting also established that the authorisation lapses after 18 months from the date the resolution was passed.

At 31 December 2013, the bank held 1.083.583 treasury shares recognised at a market value of 7,9 million Euro and a par value of 1.083.583 Euro.

During the year it sold, at an average price of 13,96 Euro, 196.418 treasury shares with a market value of 2,7 million Euro and a par value of 196.418 Euro, making profits of 1,5 million Euro which, in compliance with international accounting standards, were recognised under capital reserves.

The remaining balance at the end of the year was 887.165 treasury shares with a market value of 6,7 million Euro and a par value of 887.165 Euro.

B. Quantitative information

B.1 Consolidated equity: breakdown by type of entity

Equity itemsBanking groupInsurance companiesOther companiesConsolidation eliminations & adjustments31.12.2014
Share capital 53.811 - - - 53.811
Share premiums 57.113 - - - 57.113
Reserves: 237.874 - - - 237.874
Equity instruments - - - - -
Treasury shares (-) (6.715) - - - (6.715)
Valuation reserves: (109) - - - (109)
  - Available for sale financial assets 5.969 - - - 5.969
  - Property, plant and equipment - - - - -
  - Intangible assets - - - - -
  - Hedging of investments in foreign operations - - - - -
  - Cash flow hedges - - - - -
  - Exchange differences (5.816) - - - (5.816)
  - Non-current assets under disposal - - - - -
  - Actuarial gains (losses) on defined benefit plans (262) - - - (262)
  - Amounts of valuation reserves relating to subsidiaries valued at equity - - - - -
  - Specific revaluation laws - - - - -
Profit (loss) for the year (+/-) of the Group and minority interests 95.876 - - - 95.876
Equity 437.850 - - - 437.850
 

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

Assets/amountsBanking groupInsurance companiesOther entitiesConsolidation eliminations & adjustments31.12.2014
 Positive reserveNegative reservePositive reserveNegative reservePositive reserveNegative reservePositive reserveNegative reservePositive reserveNegative reserve
1. Debt securities 7.553 1.853 - - - - - - 7.553 1.853
2. Equity instruments 270 1 - - - - - - 270 1
3. O.E.I.C. units - - - - - - - - - -
4. Loans - - - - - - - - - -
Total 31.12.2014 7.823 1.854 - - - - - - 7.823 1.854
Total 31.12.2013 19.221 (3.241) - - - - - - 19.221 (3.241)
   

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

 Debt SecuritiesEquity instrumentsO.E.I.C. unitsLoans
1. Opening balance 15.532 448 - -
2. Increases 1.320 36 - -
2.1 Fair value gains 31 36 - -
2.2 Reversal to income statement of negative reserves:     - -
  - negative reserves - - - -
  - from impairment losses - - - -
  - from realisation 1.289 - - -
2.3 Other increases 11.152 215 - -
3. Reductions 1.144 - - -
3.1 Fair value losses - - - -
3.2 Impairment losses     - -
3.3 Reversal to income statement of positive reserves: - 215 - -
  - from realisation 10.008 - - -
3.4 Other reductions 5.700 269 - -
4. Closing balance 15.532 448 - -
 

Last updated on 2015-02-18