A. Quality of credit

A.1 Impaired and performing loans: amounts, impairment losses/reversals of impairment losses, changes, economic and geographical distribution

A.1.1 Distribution of financial assets by portfolio and credit quality (carrying amounts)

Portfolio/quality

Banking group

Other companies

Total

Non performing loans

Substandard loans

Rescheduled loans

Overdue loans

Other

Impaired

Other

1. Financial assets held for trading

 

 

 

 

293

 

 

293

2. Available for sale financial assets

 

 

 

 

805,039

 

 

805,039

3. Financial assets held to maturity

 

 

 

 

 

 

 

-

4. Due from banks

 

 

 

 

228,013

 

 

228,013

5. Due from customers

38,421

76,810

7,251

98,446

1,350,664

 

 

1,571,592

6. Financial assets measured at fair value

 

 

 

 

 

 

 

-

7. Financial assets under disposal

 

 

 

 

 

 

 

-

8. Hedging derivatives

 

 

 

 

 

 

 

-

Total at 31.12.2010

38,421

76,810

7,251

98,446

2,384,009

-

-

2,604,937

Total at 31.12.2009

20,207

129,984

3,544

49,377

1,614,803

 

 

1,817,915

Equity securities and O.E.I.C. units are not included in the above table.

A.1.2 Distribution of exposure by portfolio and credit quality (gross and net amounts)

Portfolio/quality

Impaired loans

Performing

Total (net exposure)

Gross exposure

Specific impairment losses

Net exposure

Gross exposure

Specific impairment losses

Net exposure

A. Banking group

 

 

 

 

 

 

 

1. Financial assets held for trading

 

 

0

X

X

293

293

2. Available for sale financial assets

 

 

0

805,039

 

805,039

805,039

3. Financial assets held to maturity

 

 

0

 

 

0

0

4. Due from banks

 

 

0

228,013

 

228,013

228,013

5. Due from customers

291,293

70,365

220,928

1,355,777

5,113

1,350,664

1,571,592

6. Financial assets measured at fair value

 

 

0

X

X

 

0

7. Financial assets under disposal

 

 

0

 

0

0

8. Hedging derivatives

 

 

0

X

X

 

0

Total A

291,293

70,365

220,928

2,388,829

5,113

2,384,009

2,604,937

B. Other companies included in the consolidation scope

 

 

 

 

 

 

 

1. Financial assets held for trading

 

 

-

X

X

 

-

2. Available for sale financial assets

 

 

-

 

 

-

-

3. Financial assets held to maturity

 

 

-

 

 

-

-

4. Due from banks

 

 

-

 

 

-

-

5. Due from customers

 

 

-

 

 

-

-

6. Financial assets measured at fair value

 

 

-

X

X

 

-

7. Financial assets under disposal

 

 

-

 

 

-

-

8. Hedging derivatives

 

 

-

X

X

 

-

Total B

-

-

-

-

-

-

-

Total 31.12.2010

291,293

70,365

220,928

2,388,829

5,113

2,384,009

2,604,937

Total 31.12.2009

249,600

46,488

203,112

1,618,715

3,912

1,614,803

1,817,915

Equity securities and O.E.I.C. units are not included in the above table.

In compliance with paragraph 37, letter a) of IFRS 7 “Financial Instruments: Disclosures”, the age of overdue amounts relating to performing loans - Other loans is analyzed here below.

(in thousand of Euros)

Amount

Overdue up to 3 months

236,145

Overdue > 3 months < 6 months

85,917

Overdue > 6 months < 1 year

76,790

Overdue > 1 year

66,159

Total

465,011

A.1.3 Banking group - Cash and off-balance sheet exposure with banks: gross and net amounts

Types of loans/values

Gross exposure

Specific net impairment losses

Portfolio impairment losses

Net exposure

A. CASH EXPOSURE

 

 

 

 

a) Non-performing loans

 

 

X

-

b) Substandard loans

 

 

X

-

c) Rescheduled loans

 

 

X

-

d) Overdue loans

 

 

X

-

f) Other

469,826

X

 

469,826

Total A

469,826

-

-

469,826

B. OFF-BALANCE-SHEET EXPOSURES

 

 

 

 

a) Impaired

 

 

X

-

b) Other

5,965

X

 

5,965

Total B

5,965

-

-

5,965

TOTAL A+B

475,791

-

-

475,791

Cash exposure includes all the cash assets due from banks, regardless of their portfolio category (held for trading, available for sale, held to maturity, loans and receivables etc.).

The Banca IFIS Group does not have impaired loans due from banks, for which reason it has not included tables A.1.4 and A.1.5.

A.1.6 Banking group – Cash and off-balance sheet exposure with customers: gross and net amounts

Types of loans/values

Gross exposure

Specific net impairment losses

Portfolio impairment losses

Net exposure

A. CASH EXPOSURE

 

 

 

 

A.1 Banking group

 

 

 

 

a) Non-performing loans

105,481

67,060

X

38,421

b) Substandard loans

79,270

2,460

X

76,810

c) Rescheduled loans

7,818

567

X

7,251

d) Overdue loans

98,724

278

X

98,446

f) Other

1,919,296

X

5,113

1,914,183

TOTAL A

2,210,589

70,365

5,113

2,135,111

B. OFF-BALANCE-SHEET EXPOSURES

 

 

 

 

a) Impaired

 

 

 

 

b) Other

392

 

X

392

TOTAL B

144,262

X

 

144,262

Cash exposures include all cash financial assets relating to customers, independently of their accounting allocation portfolio (trading, available for sale, held to maturity, credit).

A.1.7 Banking group – Cash exposure with customers: trends in gross, impaired loans

Type/Categories

Non-performing loans

Substandard loans

Rescheduled loans

Overdue loans

A. Opening gross exposure

62,862

133,146

4,119

49,473

- of which: transferred and not derecognised

 

 

 

 

B. Increases

50,689

89,416

8,079

316,577

B.1 inflows from performing loans

11,714

14,241

3,957

220,683

B.2 transfers from other impaired loan categories

32,563

57,052

 

3,054

B.3 other increases

6,412

18,123

4,122

92,840

C. Reductions

8,070

143,292

4,380

267,326

C.1 outflows to performing loans

 

24,436

 

86,912

C.2 derecognitions

131

1

 

 

C.3 collections

6,448

75,747

2,962

67,762

C.4 collections from transfers

 

 

 

 

C.5 transfers to other impaired loan categories

 

33,425

 

59,244

C.6 other reductions

1,491

9,683

1,418

53,408

D. Closing gross exposure

105,481

79,270

7,818

98,724

- of which: transferred and not derecognised

 

 

 

 

The increase in non-performing loans is a direct consequence of adverse economic trends. Thanks to its adoption of a business model ideal for transferring risk from customers to their better-structured debtors, the bank is able to mitigate its exposure to customer default. Nevertheless, the still negative economic trend has also led to widespread deterioration in the more creditworthy debtor counterparties, hence exposing the bank to a worsening of its assets, even if partially expected.

Substandard loans also take into account the inclusion in this category of ‘with recourse objective substandard loans’, following new instructions introduced by the Bank of Italy in 2010. These loans, thanks to Banca IFIS’s specific activity, are not likely to represent particularly problematic positions. In particular, “with recourse objective substandard loans” relate to loans to assigning customers, whose assigned debtors show strong delays in payments. The bank believes these positions are not particularly problematic, as payment delays by the assigned debtor do not necessarily correspond to an objective financial difficulty of the assigning customer. If the bank finds out that the assigning customer is also facing difficulties in fulfilling its commitments, the position is automatically recorded among substandard loans. For the sake of comparison, these new instructions were also applied in reference to 31 December 2009.

The increase in rescheduled loans refers to a rescheduling of a credit position. Net overdue loans refer to receivables due from the Public Administration (36,911 thousand Euro) purchased on a final basis within the factoring activity; given the credit and debt counterparty quality, these positions are not subject to impairment. Overdue loans are also influenced by the application of the new regulation introduced by the Bank of Italy and were reclassified in reference to 31 December 2009.

A.1.8 Banking group – Cash exposure with customers: trends in total impairment losses/reversals of impairment losses

Type/Categories

Non-performing loans

Substandard loans

Rescheduled loans

Overdue loans

A. Opening balance of total impairment losses/ reversals of impairment losses

42,655

3,162

575

96

-of which: transferred and not derecognised

 

 

 

 

B. Increases

27,151

3,754

20

182

B.1 Impairment losses

22,993

3,754

 

 

B.2 Transfers from other impaired loan categories

4,158

-

 

 

B.3 Other increases

-

-

20

 182

C. Reductions

(2,746)

(4,456)

(28)

-

C.1 Impairment reversals from measurement

(2,474)

(78)

(27)

 

C.2 Impairment reversals from collection

(236)

 

 

 

C.3 Derecognitions

(36)

 

 

 

C.4 Transfers to other impaired loan categories

-

(4,158)

 

 

C.5 Other reductions

-

(220)

(1)

 

D. Closing balance of total impairment losses/ reversals of impairment losses

67,060

2,460

567

278

-of which: transferred and not derecognised

 

 

 

 

A.3 Distribution of guaranteed exposure by guarantee type

A.3.2 Banking group – Cash exposure with guaranteed customers

 

Net exposure

Collateral guarantees (1)

Personal guarantees (2)

Total (1)+(2)

Credit derivatives

Endorsement credits

CLN

Other derivatives

Governments and central banks

Other public entities

Banks

Other entities

Property

Securities

Other collateral guarantees

Governments and central banks

Other public entities

Banks

Other subjects

2. Guaranteed cash exposure:

310,747

12,973

-

-

-

-

-

-

-

-

-

-

315,554

328,527

2.1 totally guaranteed

306,413

8,757

 

 

 

 

 

 

 

 

 

 

297,656

306,413

- of which impaired

47,204

4,985

 

 

 

 

 

 

 

 

 

 

42,219

47,204

2.2 partially guaranteed

43,348

4,216

 

 

 

 

 

 

 

 

 

 

17,898

22,114

- of which impaired

6,688

3,447

 

 

 

 

 

 

 

 

 

 

317

3,764

2. Guaranteed off-balance-sheet exposure:

90

-

-

-

-

-

-

-

-

-

-

-

90

90

2.1 totally guaranteed

90

 

 

 

 

 

 

 

 

 

 

 

90

90

- of which impaired

90

 

 

 

 

 

 

 

 

 

 

 

90

90

2.2 partially guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

 

-

- of which impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

-

B. Concentration and distribution of loans and receivables

B.1. Banking group - Distribution of cash and off-balance sheet exposure with customers by category (carrying amounts)

Exposures/counterparties

Governments and Central Banks

Other public entities

Financial institutions

Insurance companies

Non-financial companies

Other entities

Net exposure

Specific impairment losses/reversal

Portfolio impairment losses/reversal

Net exposure

Specific impairment losses/reversal

Portfolio impairment losses/reversal

Net exposure

Specific impairment losses/reversal

Portfolio impairment losses/reversal

Net exposure

Specific impairment losses/reversal

Portfolio impairment losses/reversal

Net exposure

Specific impairment losses/reversal

Portfolio impairment losses/reversal

Net exposure

Specific impairment losses/reversal

Portfolio impairment losses/reversal

A. Cash exposure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A.1 Non-performing loans

 

 

X

 

 

X

 

112

X

 

 

X

38,421

66,948

X

 

 

X

A.2 Substandard loans

 

 

X

10,316

 

X

 

 

X

 

 

X

63,966

2,408

X

2,528

52

X

A.3 Rescheduled loans

 

 

X

 

 

X

 

 

X

 

 

X

7,251

567

X

 

 

X

A.4 Overdue loans

6,174

 

X

30,738

 

X

3,185

14

X

 

 

X

40,831

185

X

17,518

79

X

A.5 Other

527,809

X

 

243,207

X

 

115,035

X

544

 

X

 

994,590

X

4,418

33,542

X

151

Total A

533,983

-

-

284,261

-

-

118,220

126

544

-

-

-

1,145,059

70,108

4,418

53,588

131

151

B. Off-balance-sheet exposures"

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

B.1 Non-performing loans

 

 

X

 

 

X

 

 

X

 

 

X

 

 

X

 

 

X

B.2 Substandard loans

 

 

X

 

 

X

 

 

X

 

 

X

392

 

X

 

 

X

B.3 Other impaired loans

 

 

X

 

 

X

 

 

X

 

 

X

 

 

X

 

 

X

B.4 Other

 

X

 

 

X

 

 

X

 

 

X

 

144,262

X

 

 

X

 

Total B

-

-

-

-

-

-

-

-

-

-

-

-

144,654

-

-

-

-

-

Total (A+B) 31.12.2010

533,983

-

-

284,261

-

-

118,220

126

544

-

-

-

1,289,713

70,108

4,418

53,588

131

151

Total (A+B) 31.12.2009

38,914

-

-

131,108

-

-

39,031

112

-

-

-

-

1,379,104

46,313

3,912

68,395

63

-

B.2 Banking group - Geographical distribution of cash and off-balance sheet exposure due from customers (carrying amounts)

Exposures/Geographic areas

Italy

Other European countries

America

Asia

Rest of the World

Net exposure

Overall impairment losses/

reversals

Net exposure

Overall impairment losses/

reversals

Net exposure

Overall impairment losses/

reversals

Net exposure

Overall impairment losses/

reversals

Net exposure

Overall impairment losses/

reversals

A. Cash exposure

 

 

 

 

 

 

 

 

 

 

A.1 Non-performing loans

37,959

64,266

462

2,794

 

 

 

 

 

 

A.2 Substandard loans

75,607

2,448

1,196

12

5

 

 

 

2

 

A.3 Rescheduled loans

7,251

567

 

 

 

 

 

 

 

 

A.4 Overdue loans

91,738

248

6,705

30

 

 

 

 

3

 

A.5 Other

1,784,541

4,766

110,877

325

15,996

10

2,767

12

2

 

Total

1,997,096

72,295

119,240

3,161

16,001

10

2,767

12

7

-

B. Off-balance-sheet exposure"

 

 

 

 

 

 

 

 

 

 

B.1 Non-performing loans

 

 

 

 

 

 

 

 

 

 

B.2 Substandard loans

392

 

 

 

 

 

 

 

 

 

B.3 Other impaired loans

 

 

 

 

 

 

 

 

 

 

B.4 Other

122,967

 

12,705

 

 

 

6,520

 

2,070

 

Total

123,359

-

12,705

-

-

-

6,520

-

2,070

-

Total at 31.12.2010

2,120,455

72,295

131,945

3,161

16,001

10

9,287

12

2,077

-

Total at 31.12.2009

1,525,163

47,753

114,687

2,645

41,530

1

991

1

865

-

B.3 Banking group – Geographical distribution of cash and off-balance sheet exposure due from banks (carrying amounts)

Exposures/Geographic areas

Italy

Other European countries

America

Asia

Rest of the World

Net exposure

Impairment losses/reversal

Net exposure

Impairment losses/reversal

Net exposure

Impairment losses/reversal

Net exposure

Impairment losses/reversal

Net exposure

Impairment losses/reversal

A. Cash exposure

 

 

 

 

 

 

 

 

 

 

A.1 Non-performing loans

 

 

 

 

 

 

 

 

 

 

A.2 Substandard loans

 

 

 

 

 

 

 

 

 

 

A.3 Rescheduled loans

 

 

 

 

 

 

 

 

 

 

A.4 Overdue loans

 

 

 

 

 

 

 

 

 

 

A.5 Other

383,447

 

81,332

 

5,047

 

 

 

 

 

Total

383,447

-

81,332

-

5,047

-

-

-

-

-

B. Off-balance-sheet exposure"

 

 

 

 

 

 

 

 

 

 

B.1 Non-performing loans

 

 

 

 

 

 

 

 

 

 

B.2 Substandard loans

 

 

 

 

 

 

 

 

 

 

B.3 Other impaired loans

 

 

 

 

 

 

 

 

 

 

B.4 Other loans

5,965

 

 

 

 

 

 

 

 

 

Total

5,965

-

-

-

-

-

-

-

-

-

Total at 31.12.2010

389,412

-

81,332

-

5,047

-

-

-

-

-

Total at 31.12.2009

501,908

-

76,921

-

49,855

-

-

-

-

-

B.4 Big risks

 

 

31.12.2010

31.12.2009

a)

Carrying amount

151,613

136,633

b)

Weighted value

151,613

136,633

c)

Number

5

6

C. Asset sale and securitization transactions

C.2 Sale transactions

C.2.1 Financial assets sold and not derecognized

Banking products/portfolio

Financial assets held for trading

Financial assets measured at fair value

Available for sale financial assets

Financial assets held to maturity

Due from banks

Due from customers

Total

A

B

C

A

B

C

A

B

C

A

B

C

A

B

C

A

B

C

31.12.2010

31.12.2009

A. Cash assets

-

-

-

-

-

-

646,152

-

-

-

-

-

-

-

-

-

-

-

646,152

 174,038

1. Debt securities

 

 

 

 

 

 

646,152

 

 

 

 

 

 

 

 

 

 

 

646,152

 174,038

2. Equity securities

 

 

 

 

 

 

 

 

 

X

X

X

X

X

X

X

X

X

-

 

3. O.E.I.C.

 

 

 

 

 

 

 

 

 

X

X

X

X

X

X

X

X

X

-

 

4. Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

B. Derivative instruments

 

 

 

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

-

 

Total at 31.12.2010

-

-

-

-

-

-

646,152

-

-

-

-

-

-

-

-

-

-

-

646,152

 -

of which impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total at 31.12.2009

-

-

-

-

-

-

174,038

-

-

-

-

-

-

-

-

-

-

-

-

174,038

of which impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key:

A = financial assets sold and entirely recognized (carrying amount)

B = financial assets sold and partially recognized (carrying amount)

C = financial assets sold and partially recognized (entire amount)

Available for sale financial assets sold and not derecognized refer to the carrying amount of securities underlying repurchase agreements.