Other financial assets consist of available for sale financial assets totalling 818,507 thousand Euro (+111.1%), and financial assets held for trading totalling 293 thousand Euro (-9.8%); available for sale assets include debt and equity securities, while financial assets held for trading consist solely of debt securities.

In order to provide a complete analysis of the Bank’s financial assets, the debt securities portfolio, represented by several asset items in the statement of financial position, and the equity portfolio are commented on below.

Debt securities portfolio

As from the third quarter of 2009 and for progressively larger amounts, a portfolio of assets eligible for refinancing with the Eurosystem (guarantee portfolio) was created, primarily consisting of short-term, highly creditworthy and variable rate banking bonds. Such portfolio aims to maintain a solid liquidity base that is consistent with strategies, in a funding context that is now influenced also by free and fixed retail funding. These securities have been recognised under available for sale financial assets or due from banks, based on their characteristics and according to the provisions of IAS 39. At 31 December 2010, the guarantee portfolio totalled 573,744 thousand Euro.

In addition, as from May 2010, the Bank has set up a portfolio consisting mainly of short-term, fixed rate Italian Government bonds (investment portfolio) in order to invest surplus liquidity. These securities have been used for short/very short-term repurchase agreement transactions or for transactions on the Collateralised Interbank Market (MIC). These securities too have been classified as financial assets held for trading, available for sale financial assets or receivables due from banks, based on their characteristics and according to the provisions of IAS 39. At 31 December 2010 the investment portfolio totalled 328,108 thousand Euro.

Total debt securities held at 31 December 2010 amounted to 901,852 thousand Euro (+89%) compared to 31 December 2009.

In addition, at year-end securities which had been purchased and not settled had a nominal value of 110 million Euro.

Debt securities portfolio(in thousands of Euro)

YEAR

ABSOLUTE

31.12.2010

31.12.2009

CHANGE

%

STATEMENT OF FINANCIAL POSITION ITEM:

 

 

 

 

 

 

Financial assets held for trading

293

325

(32)

(9.8)%

Investment portfolio

293

325

(32)

(9.8)%

Available for sale financial assets

805,039

384,594

420,445

109.3%

Guarantee portfolio

492,270

384,594

107,676

28.0%

Investment portfolio

312,769

-

312,769

n.a.

Due from banks

96,520

92,295

4,225

4.6%

Guarantee portfolio

81,474

92,295

(10,821)

(11.7)%

Investment portfolio

15,046

-

15,046

n.a.

Total debt securities held

901,852

477,214

424,638

89.0%

of which:

 

Guarantee portfolio

573,744

476,889

96,855

20.3%

Investment portfolio

328,108

 

325

 

327,783

n.a.

Equity portfolio

Other financial assets also include equity securities relating to non controlling interests in unlisted companies totalling 13,468 thousand Euro, which are classified among available for sale financial assets.