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.

TAX RECEIVABLES PERFORMANCE (thousands of Euro)
Receivables portfolio at 31.12.2014 119.473
Purchases 84.715
Interest income from amortised cost 12.151
Other components of net interest income from change in cash flow 9.607
Reversals of impairment losses from change in cash flow (412)
Collections (94.871)
Receivables portfolio at 31.12.2015 130.663
INCOME STATEMENT DATA
(in thousands of Euro)
31.12.2015 31.12.2014 CHANGE
Net interest income 20.307 11.003 9.304 84,6%
Net commission income 28 - 28 n.a.
Net banking income 20.335 11.003 9.332 84,8%
Net impairment losses/recoveries on loans and receivables (412) 266 (678) (254,9)%
Net profit from financial activities 19.923 11.269 8.654 76,8%
QUARTERLY INCOME STATEMENT DATA
(in thousands of Euro)
4th Q. 2015 4th Q. 2014 CHANGE
Net interest income 8.827 2.871 5.956 207,5%
Net commission income 1 - 1 n.a.
Net banking income 8.828 2.871 5.957 207,5%
Net impairment losses/recoveries on loans and receivables (286) 146 (432) (295,9)%
Net profit from financial activities 8.542 3.017 5.525 183,1%
STATEMENT OF FINANCIAL POSITION DATA
(in thousands of Euro)
31.12.2015 31.12.2014 CHANGE
      ABSOLUTE %
Unlikely to pay - 34 (34) (100,0)%
Past due loans - 34 (34) (100,0)%
Total net impaired loans  130.663 119.439 11.224 9,4%
Net performing loans 130.663 119.473 11.190 9,4%
Total loans to customers (cash)  - - -
KPI 31.12.2015 31.12.2014 CHANGE
      ABSOLUTE %
Nominal amount of receivables managed 190.553 167.834 22.719 13,5%
Total RWA per sector 41.614 37.595 4.019 10,7%

Net banking income is generated by the interest accrued according to the amortised cost method and funding costs allocated to the segment; specifically, the positions acquired over the last few years are making a growing contribution to profit or loss.

Net banking income in the Tax Receivables segment amounted to 20,3 million Euro (+84,8% compared to 11,0 million Euro at 31 December 2014), thanks to the positive trend in cash flows, with actual debt collection times lower than expected, as well as a transaction that in the fourth quarter generated a 5,2 million Euro profit.

During the year, it collected 94,9 million Euro, exceeding estimates, and acquired 192 receivables at an average price of 84,7 million Euro, i.e. approximately 83% of the par value of the tax receivables net of enrolments (i.e. 8,1 million Euro), compared to 68,5% at 31 December 2014.
With these purchases, the segment's portfolio comprises 1.374 positions, for a par value of 190,6 million Euro and a value at amortised cost of 130,7 million Euro at 31 December 2015.