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.
Here below are the results achieved in 2015 by the various business segments, which will be analysed in the sections dedicated to the individual sectors.

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; this area includes IFIS Finance’s operations in Poland;
  • 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 business is closely associated with recovering non-performing exposures.

In the second half of 2015, the Bank reviewed the cash flow simulation model, acknowledging that the model for non-judicial debt collection operations has significantly changed over the years. The new scenario made the previous simulation model outdated.

The review of the cash flow simulation model was also aimed at ensuring that some types of collection instruments with similar characteristics (bills of exchange and settlement plans agreed with the debtor) are treated consistently.

The new estimation model developed by the Bank simulates cash flows by projecting the “breakdown” of the nominal amount of the receivable “over time” based on the historical recovery profile for similar clusters. In addition, for the positions with funding characteristics, the Bank uses a “deterministic” model based on the measurement of the future instalments of the settlement plan, net of the historical default rate.

Tax receivables

It is the 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 seldom 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 non-performing exposures, 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, 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.

Here below are the results achieved in 2015 by the various business sectors.

STATEMENT OF FINANCIAL POSITION DATA
(in thousands of euro)
TRADE RECEIVABLES DRLs TAX RECEIVABLES GOVERNANCE AND SERVICES GROUP CONSOLIDATED TOTAL
Available for sale financial assets          
Figures at 31.12.2015 - - - 3.221.533 3.221.533
 Figures at 31.12.2014 - - - 243.325 243.325
 Change % - - - 1224,0% 1224,0%
Held to maturity financial assets          
Figures at 31.12.2015 - - - - -
 Figures at 31.12.2014 - - - 4.827.363 4.827.363
 Change % - - - (100,0)% (100,0)%
Due from banks          
Figures at 31.12.2015 - - - 95.352 95.352
 Figures at 31.12.2014 - - - 274.858 274.858
 Change % - - - (65,3)% (65,3)%
Loans to customers          
Figures at 31.12.2015 2.848.124 354.352 130.663 103.997 3.437.136
 Figures at 31.12.2014 2.455.052 135.429 119.473 104.376 2.814.330
 Change % 16,0% 161,7% 9,4% (0,4)% 22,1%
Due to banks          
Figures at 31.12.2015 - - - 662.985 662.985
 Figures at 31.12.2014 - - - 2.258.967 2.258.967
 Change % - - - (70,7)% (70,7)%
Due to customers          
Figures at 31.12.2015 - - - 5.487.476 5.487.476
 Figures at 31.12.2014 - - - 5.483.474 5.483.474
 Change % - - - 0,1% 0,1%

INCOME STATEMENT DATA
(in thousands of Euro)
TRADE RECEIVABLES DRLs TAX RECEIVABLES GOVERNANCE AND SERVICES GROUP CONSOLIDATED TOTAL
Net banking income          
Figures at 31.12.2015 158.671 56.300 20.335 172.652 407.958
 Figures at 31.12.2014 155.561 33.249 11.003 84.328 284.141
% Change 2,0% 69,3% 84,8% 104,7% 43,6%
Net profit from financial activities          
Figures at 31.12.2015 137.423 52.687 19.923 163.675 373.708
 Figures at 31.12.2014 122.555 31.479 11.269 84.328 249.631
% Change 12,1% 67,4% 76,8% 94,1% 49,7%

QUARTERLY INCOME STATEMENT DATA
(in thousands of Euro)
TRADE RECEIVABLES DRLs TAX RECEIVABLES GOVERNANCE AND SERVICES GROUP CONSOLIDATED TOTAL
Net banking income          
4th Q.2015 39.728 22.402 8.828 5.834 76.792
 4th Q.2014 39.522 12.906 2.871 17.766 73.065
 Change % 0,5% 73,6% 207,5% (67,2)% 5,1%
Net profit from financial activities          
4th Q.2015 33.237 21.818 8.542 5.106 68.703
 4th Q.2014 36.534 11.202 3.017 17.766 68.519
 Change % (9,0)% 94,8% 183,1% (71,3)% 0,3%

SECTOR KPIs
(in thousands of Euro)
TRADE RECEIVABLES DRLs TAX RECEIVABLES GOVERNANCE AND SERVICES
Turnover (1)        
Figures at 31.12.2015 10.126.397 n.a. n.a. n.a.
 Figures at 31.12.2014 8.312.798 n.a. n.a. n.a.
 Change % 21,8% - - -
Nominal amount of receivables managed        
Figures at 31.12.2015 3.576.982 8.161.005 190.553 n.a.
 Figures at 31.12.2014 3.101.058 5.630.151 167.834 n.a.
 Change % 15,3% 45,0% 13,5% -
Net non-performing trade receivables/Loans to customers        
Figures at 31.12.2015 1,1% 45,0% 0,0% n.a.
 Figures at 31.12.2014 1,3% 51,8% 0,0% n.a.
 Change % (0,3)% (6,8)% - -
RWA (2)        
Figures at 31.12.2015 1.970.886 354.352 41.614 182.779
 Figures at 31.12.2014 1.802.978 135.426 37.595 187.560
 Change % 9,3% 161,7% 10,7% (2,5)%

(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 results of the business sectors, please refer to the Directors’ Report.


Venice - Mestre, 2 February 2016


For the Board of Directors

The Chairman
Sebastien Egon Fürstenberg

The C.E.O.
Giovanni Bossi