During 2015, the following events occurred that should be considered when comparing the results to previous years:
- Based on the trends in market rates on government bonds in the Bank's portfolio, as well as considerations on the costs to refinance the debt collateralised by said securities, the Bank found it expedient to restructure part of the Italian government bond portfolio. It kept its size unchanged, but slightly increased the average maturity: the most distant maturity is now 2020 (as opposed to 2018 before the transactions). The whole portfolio consists of floating-rate or inflation-indexed bonds.
The sale of the portfolio, completed in April, contributed approximately 124 million Euro to gross profit for the year.
- Budget Law: in accordance with the provisions of the 2015 Budget Law, commercial and agricultural companies as well as craftspersons and professionals can deduct all costs for employees on open-ended contracts from the IRAP (Italian regional tax on productive activities) tax base; the provision is effective for fiscal years beginning after 31 December 2014. This slightly lowered the Group's tax rate for 2015.
- Update to the models for estimating the cash flows from the receivables of the DRL segment: in 2015, the Bank reviewed the model for estimating the cash flows from the receivables of the DRL segment. It used the updated model in preparing these financial statements. This caused a change in the estimate of cash flows that, discounted at the original IRR of the positions, resulted in a change in amortised cost, which was recognised in profit or loss in accordance with IAS 39. The overall 8,5 million Euro decrease was mainly attributable to the consistency of the measurement method used for similar types of funding instruments. Said impact, recognised under item 10 Interest receivable and similar income, was partially offset by the gains on the three sales completed at the end of 2015, which were recognised under item 100 Profit from sale, which is part of Net banking income. For more details, see below.
- Improved accounting for the changes in amortised cost related to bad loans: in the financial statements for the year ended 31 December 2015, the Bank changed the classification of changes in amortised cost related to the bad loans of the DRL segment. Specifically, such changes, which had been previously recognised under item 130 Net impairment losses/reversals on receivables, were classified under item 10 Interest receivable and similar income. To allow the users of the financial report to compare the results with the previous year, the 2014 data have been restated using the same method. For more details, see Part A – Section 2 in the Notes.
- Deposit Guarantee Schemes and Italian Bank Resolution Fund: during 2015, the provisions concerning the protection of bank depositors and the resolution of banking crises, set out respectively in the Deposit Guarantee Schemes Directive (DGSD) 2014/49/EU and the Single Resolution Fund Directive 59/201/EU, became effective. The impact of these provisions is described in the Notes.