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 potentially necessary measures to meet the requirements.

Transactions on treasury shares

The Ordinary Shareholders’ Meeting of 13 April 2015 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 30 Euro.

The Meeting also established that the authorisation lapses after 18 months from the date the resolution was passed.

At 31 December 2014, the bank held 887.165 treasury shares recognised at a market value of 6,7 million Euro and a par value of 887.165 Euro.

During 2015, Banca IFIS undertook the following treasury share transactions:

  • it sold, at an average price of 18,73 Euro, 135.000 treasury shares with a market value of 2,5 million Euro and a par value of 135.000 Euro, making profits of 1,7 million Euro that, in compliance with IASs/IFRSs, were recognised under the capital reserve.
  • As variable pay for the 2014 financial results, it awarded the Top Management 12.719 treasury shares at an average price of 13,12 Euro, for a total of 167 thousand Euro and a par value of 12.719 Euro, making profits of 112 thousand Euro that, in compliance with IASs/IFRSs, were recognised under the capital reserve.

The remaining balance at the end of the year was 739.446 treasury shares with a market value of 5,8 million Euro and a par value of 739.446 Euro.

B. Quantitative information

B.1 Consolidated equity: breakdown by type of entity

Equity items Banking group Insurance companies Other companies Consolidation eliminations & adjustments 31.12.2015
           
Share capital 53.811 - - - 53.811
Share premiums 58.900 - - - 58.900
Reserves 298.856 - - - 298.856
Equity instruments - - - - -
Treasury shares (-) (5.805) - - - (5.805)
Valuation reserves: 5.739 - - - 5.739
- Available for sale financial assets 11.677 - - - 11.677
- Property, plant and equipment - - - - -
- Intangible assets - - - - -
- Hedging of investments in foreign operations - - - - -
- Cash flow hedges - - - - -
- Exchange differences (5.771) - - - (5.771)
- Non-current assets under disposal - - - - -
- Actuarial gains (losses) on defined benefit plans (167) - - - (167)
- Amounts of valuation reserves relating to subsidiaries valued at equity - - - - -
- Specific revaluation laws - - - - -
Profit (loss) for the year (+/-) of the Group and minority interests 161.966 - - - 161.966
Equity 573.467 - - - 573.467

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

Assets/amounts Banking group Insurance companies Other entities Consolidation eliminations & adjustments 31.12.2015
  Positive reserve Negative reserve Positive reserve Negative reserve Positive reserve Negative reserve Positive reserve Negative reserve Positive reserve Negative reserve
1. Debt securities 11.678 - - - - - - - 11.678 -
2. Equity instruments - (1) - - - - - - - (1)
3. O.E.I.C. units - - - - - - - - - -
4. Loans - - - - - - - - - -
Total 31.12.2015 11.678 (1) - - - - - - 11.678 (1)
Total 31.12.2014 7.823 1.854 - - - - - - 7.823 1.854

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

  Debt Securities Equity instruments O.E.I.C. units Loans
1. Opening balance 5.700 269 - -
2. Increases 94.885 - - -
2.1 Fair value gains 94.553 - - -
2.2 Reversal to income statement of negative reserves:        
- from impairment losses - - - -
- from realisation - - - -
2.3 Other increases 332 - - -
3. Reductions (88.907) (270) - -
3.1 Fair value losses - - - -
3.2 Impairment losses - -    
3.3 Reversal to income statement of positive reserves: - - - -
- from realisation (88.400) (270) - -
3.4 Other reductions (507) - - -
4. Closing balance 11.678 (1) - -