Part L - Segment reporting

The model for segment reporting is in line with the organisational structure used by the Head Office to analyse Group results and is broken down into the following segments: Trade Receivables, Distressed Retail Loans, Tax Receivables, Governance and Services. The Governance and Services segment manages the Group's financial resources and allocates funding costs to operating segments and subsidiaries through the Group's internal transfer rate system. The internal transfer rate system was updated effective 1 July 2013 to correctly represent the contribution of the different segments to the Group's results, accounting for the changes in the current situation and outlook of financial markets.

Trade receivables

This segment includes the following business areas:

Italian Trade Receivables, dedicated to supporting the trade receivables of SMEs operating in the domestic market;

Foreign Trade Receivables, for companies growing abroad or based abroad and working with Italian customers;

Pharma, supporting the trade receivables of local health services' suppliers.

Distressed Retail Loans

This is the Banca IFIS Group's segment dedicated to non-recourse factoring and managing distressed retail loans. It serves households under the new CrediFamiglia brand.

The sector, formerly known as NPL, was renamed during 2013 as "Distressed Retails Loans" (hereinafter "DRL") so as to avoid confusion with impaired assets, defined as "non-performing loans (NPLs)" in English.

The business is closely associated with recovering impaired loans. Loans in the DRL segment are included among bad and substandard loans: in particular, those loans are initially attributed the same classification as that assigned by the invoice seller, provided the latter is subject to the same law as Banca IFIS; otherwise, if the Bank has not ascertained the debtor's state of insolvency, those loans are classified as substandard.

Tax receivables

It is Banca IFIS Group’s segment specialised in purchasing tax receivables arising from insolvency proceedings; it operates under the Fast Finance brand and offers to buy both accrued and accruing tax receivables on which repayment has already been requested or which shall be requested in the future, and that arose during insolvency proceedings or in prior years. As a complement to its core business, this segment acquires also trade receivables from insolvency proceedings.

Since the Public Administration is the counterparty, tax receivables are classified as performing; trade receivables, on the other hand, may be classified as impaired loans, if required.

Governance and services

Within the scope of its management and coordination activities, the Governance and Services segment exercises strategic, managerial, and technical-operational control over operating segments and subsidiaries.

Furthermore, it provides the operating segments and subsidiaries with the financial resources and services necessary to perform their respective business activities. The Internal Audit, Compliance, Risk Management, Communications, Strategic Planning and Management Control, Administration and General Affairs, Human Resources, Organisation and ICT functions, as well as the structures responsible for raising, allocating (to operating segments and subsidiaries), and managing financial resources, are centralised in the Parent Company. Specifically, this segment includes both the contribution of the securities portfolio to net interest income, and the cost of retail funding exceeding core loans and held in order to guarantee an adequate level of liquidity under economic stress scenarios.

Here below are the results achieved in 2014 by the various business sectors. 

STATEMENT OF FINANCIAL POSITION DATA

(in thousands of euro)

TRADE RECEIVABLESDRLsTAX RECEIVABLESGOVERNANCE AND SERVICESGROUP CONSOLIDATED TOTAL
Available for sale financial assets          
  Figures at 31.12.2014 - - - 243.325 243.325
  Figures at 31.12.2013 - - - 2.529.179 2.529.179
  Change % - - - (90,4)% (90,4)%
Held to maturity financial assets          
  Figures at 31.12.2014 - - - 4.827.363 4.827.363
  Figures at 31.12.2013 - - - 5.818.019 5.818.019
  Change % - - - (17,0)% (17,0)%
Due from banks          
  Figures at 31.12.2014 - - - 274.858 274.858
  Figures at 31.12.2013 - - - 415.817 415.817
  Change % - - - (33,9)% (33,9)%
Loans to customers          
Figures at 31.12.2014 2.455.052 135.429 119.473 104.376 2.814.330
 Figures at 31.12.2013 1.938.415 127.945 90.282 140.291 2.296.933
 Change % 26,7% 5,8% 32,3% (25,6)% 22,5%
Due to banks          
  Figures at 31.12.2014 - - - 2.258.967 2.258.967
  Figures at 31.12.2013 - - - 6.665.847 6.665.847
  Change % - - - (66,1)% (66,1)%
Due to customers          
  Figures at 31.12.2014 - - - 5.483.474 5.483.474
  Figures at 31.12.2013 - - - 4.178.276 4.178.276
  Change % - - - 31,2% 31,2%

INCOME STATEMENT DATA

(in thousands of Euro)

TRADE RECEIVABLESDRLsTAX RECEIVABLESGOVERNANCE AND SERVICESGROUP CONSOLIDATED TOTAL
Net banking income          
  Figures at 31.12.2014 155.561 30.038 11.003 84.328 280.930
  Figures at 31.12.2013 129.702 24.374 9.287 100.833 264.196
  % Change 19,9% 23,2% 18,5% (16,4)% 6,3%
Net profit from financial activities          
  Figures at 31.12.2014 122.555 31.479 11.269 84.328 249.631
  Figures at 31.12.2013 81.319 27.826 9.690 100.774 219.609
 % Change 50,7% 13,1% 16,3% (16,3)% 13,7%

 

QUARTERLY INCOME STATEMENT DATA

(in thousands of Euro)

TRADE RECEIVABLESDRLsTAX RECEIVABLESGOVERNANCE AND SERVICESGROUP CONSOLIDATED TOTAL
Net banking income          
  4th Q.2014 39.522 10.005 2.871 17.766 70.164
  4th Q.2013 39.008 4.982 1.702 24.365 70.057
  Change % 1,3% 100,8% 68,7% (27,1)% 0,2%
Net profit from financial activities          
  4th Q.2014 36.534 11.202 3.017 17.766 68.519
  4th Q.2013 27.150 6.826 1.693 24.365 60.034
  Change % 34,6% 64,1% 78,2% (27,1)% 14,1%

SECTOR KPIs

(in thousands of Euro)

TRADE RECEIVABLESDRLsTAX RECEIVABLESGOVERNANCE AND SERVICES
Turnover (1)        
  Figures at 31.12.2014 8.312.798 n.a. n.a. n.a.
  Figures at 31.12.2013 5.701.892 n.a. n.a. n.a.
  Change % 45,8% - - -
Nominal amount of receivables managed        
  Figures at 31.12.2014 3.101.058 5.630.151 167.834 n.a.
  Figures at 31.12.2013 2.577.820 3.911.852 140.160 n.a.
  Change % 20,3% 43,9% 19,7% -
Net non-performing trade receivables/Loans to customers        
  Figures at 31.12.2014 1,3% 51,8% 0,0% n.a.
  Figures at 31.12.2013 2,6% 52,0% 0,6% n.a.
  Change % (1,3)% (0,2)% (0,6)% -
RWA (2)        
  Figures at 31.12.2014 1.802.978 135.426 37.595 187.560
  Figures at 31.12.2013 1.561.355 127.945 33.292 227.883
  Change % 15,5% 5,8% 12,9% (17,7)%

(1) Gross flow of the receivables sold by the customers in a specific period of time.
(2) Risk Weighted Assets

For a more detailed analysis of the result of the business sectors, please refer to the Directors’ Report.

       

For the Board of Directors  

The Chairman
Sebastien Egon Fürstenberg 

The C.E.O.
Giovanni Bossi

   

Last updated on 2015-02-18