Section 11 – Administrative expenses - Item 180

11.1 Personnel expenses: breakdown

Type of expense/Sectors 31.12.2015 31.12.2014
1) Employees (44.656) (38.964)
  a) salaries and wages (32.587) (28.938)
  b) social security contributions (9.239) (8.174)
  c) post-employment benefits (1.680) (1.352)
  d) pension expense - -
  e) allocations for post-employment benefits (20) (20)
  f) allocations to pensions and similar provisions:    
  - defined contribution plans    
  - defined benefit plans    
  g) payments made to supplementary external funds    
  - defined contribution plans    
  - defined benefit plans    
  h) share-based payment agreements    
  i) other employee benefits (1.130) (480)
2) Other serving employees (120) (180)
3) Directors and Statutory Auditors (3.566) (3.409)
4) Retired personnel - -
 Total (48.342) (42.553)

At 48,3 million Euro, personnel expenses rose 13,6% (42,6 million Euro in 2014) due to new hiring: 177 new staff were added in 2015, up 41,6% from 2014. Post-employment benefits include both contributions that employees have chosen to leave in the company and to be paid to INPS’s Treasury Fund, and contributions to be paid to supplementary pension funds. Allocations for post-employment benefits refer to the revaluation of post-employment benefits earned up to 31 December 2006 and left in the company.

Other employee benefits included costs sustained for training and refresher courses.

11.2 Average number of employees by category

Employees: 31.12.2015 31.12.2014
Employees: 671 583,0
(a) senior managers 24,0 22,5
(b) middle managers 51,5 49,5
(c) remaining personnel 595,5 511,0
Other personnel - -

11.5 Other administrative expenses: breakdown

Expenses/Amounts 31.12.2015 31.12.2014
     
Expenses for professional services (31.044) (26.155)
Legal and consulting services (13.948) (9.349)
Auditing (226) (256)
Outsourced services (16.870) (16.550)
Direct and indirect taxes (8.748) (10.924)
Expenses for purchasing non-professional goods and services  (39.036) (22.240)
Customer information (6.793) (4.340)
Property expenses (4.585) (3.525)
Postage of documents (3.632) (2.183)
Software assistance and hire (3.267) (2.979)
Car fleet management and maintenance (2.264) (2.293)
Advertising and inserts (2.150) (1.967)
Telephone and data transmission expenses (1.441) (1.394)
Business trips and transfers (1.120) (889)
Other sundry expenses (13.784) (2.670)
Total administrative expenses (78.828) (59.319)

Other administrative expenses at 31 December 2015 reached 78,8 million Euro, compared to 59,3 million Euro in 2014 (+32,9%).

The increase was largely attributable to the following:

  • Legal and consulting costs, largely as a result of the new organisation of business processes and the internal control system;
  • The DRL segment's expenses, specifically the costs for collecting debts (included in the sub-item outsourced services) and gathering information on clients, totalling 15,4 and 5,3 million Euro, respectively. In addition, debt collection costs comprised 3,7 million Euro in costs referring to bills of exchange involved in one of the sales completed at the end of December. These had been previously recognised as prepayments.

Costs for the contribution to the Italian Bank Resolution Fund (Directive 59/201/EU Single Resolution Fund) and the participation in the new funding mechanism for Italy's Interbank Deposit Protection Fund (FITD, Fondo Interbancario di Tutela dei Depositi) introduced by the Deposit Guarantee Schemes Directive (DGSD) 2014/49/EU. They amounted to 10,6 million Euro and were recognised under Other sundry expenses. Said costs included the 6,5 million Euro extraordinary contribution to the Italian banking system's rescue of Banca Marche, Banca Popolare dell’Etruria e del Lazio, CariChieti, and Cassa di Risparmio di Ferrara; 2,2 million Euro in recurring contributions to the Resolution Fund; and 2 million Euro as annual contribution to the FITD for the year 2015.

Type of services Service provider Beneficiary Fees(in Euro)
Independent auditors’ fees Reconta Ernst & Young S.p.A. Banca IFIS S.p.A. 166.301
    Subsidiaries 20.315
Certification services Reconta Ernst & Young S.p.A Banca IFIS S.p.A.  
    Subsidiaries -
Tax consultancy services Reconta Ernst & Young S.p.A Banca IFIS S.p.A. -
    Subsidiaries -
Other services Reconta Ernst & Young S.p.A Banca IFIS S.p.A.  
    Subsidiaries 1.939
Total     188.555