Part L - Segment reporting

The model for segment reporting is in line with the organisational structure used by the Head Office to analyse Group results and is broken down into the following sectors: Trade Receivables, Non-Performing Loans (NPL), Tax Receivables, Governance and Services.

Here below are the results achieved in 2012 by the various business sectors, which will be analysed in the sections dedicated to the individual sectors.

2011 is the first year in which the Banca IFIS Group, also in light of the acquisition of the Toscana Finanza Group, defined the scope of its operating sectors as presented in this report.

The Non-Performing Loans and Tax Receivables sectors, which were added to the Group’s scope after the acquisition of the Toscana Finanza Group, contributed to the profit for the year 2011 starting from 30 June 2011 (the date on which the business combination formally took effect). Therefore, in the tables provided below 2011 income statement results of the Non-performing loans and Tax receivables sectors only refer to the second half of the year.

Trade receivables

This item includes the activities performed by the structures dedicated to the brands:

  • Banca IFIS, dedicated to supporting the trade receivables of SMEs operating in the domestic market;
  • Banca IFIS International, for companies growing abroad or based abroad and working with Italian customers;
  • Banca IFIS Pharma, supporting the trade receivables of local health services' suppliers.

Non-performing loans (NPL)

This is the segment of Banca IFIS Group currently dedicated to non-recourse factoring and managing non-performing loans. It operates under the Toscana Finanza brand.

Toscana Finanza's business is by nature closely associated with recovering impaired loans. Therefore, loans in the NPL segment are included among non-performing and substandard loans: this classification is the logical consequence of the business model, based on how to recover those assets in the best possible way.

NPL refer to non-performing or substandard loans. In particular, those loans maintain the same classification as that assigned by the invoice seller, provided the latter is subject to the same law as Banca IFIS: otherwise, if the Bank has not ascertained the debtor's state of insolvency, those loans are classified as substandard.

Tax receivables

It is Banca IFIS Group’s sector 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. In addition to the core business, trade receivables are bought from insolvency proceedings, as well. If it is the case, these receivables can be classified among non-performing loans.

Tax receivables are classified under performing loans, since they are due from the Public Administration, while trade receivables may be classified as impaired.

Governance and services

Within the scope of its management and coordination activities, the Governance and Services sector exercises strategic, managerial, and technical-operational control over operating segments and subsidiaries. Furthermore, it provides the operating segments and subsidiaries with the financial resources and services necessary to perform their respective business activities. The Internal Audit, Compliance, Risk Management, Communications, Strategic Planning, Administration and Management Control, Organisation and ICT departments, as well as the structures responsible for raising, allocating (to operating segments and subsidiaries), and managing financial resources are centralised in the Parent Company.

STATEMENT OF FINANCIAL POSITION DATA (in thousands of euro)   
TRADE RECEIVABLES NPL TAX RECEIVABLES GOVERNANCE AND SERVICES     GROUP CONSOLIDATED TOTAL
Available for sale financial assets          
  Amounts  at 31.12.2012 - - - 1.974.591 1.974.591
  Amounts at 31.12.2011 - - - 1.685.163 1.685.163
  % Change       17,2% 17,2%
Held to maturity financial assets          
   Amounts at 31.12.2012 - - - 3.120.428 3.120.428
   Amounts at 31.12.2011 - - - - -
   % Change       n.a. n.a.
Due from banks          
   Amounts at 31.12.2012 - - - 545.527 545.527
   Amounts at 31.12.2011 - - - 315.897 315.897
   % Change       72,7% 72,7%
Due from customers          
   Amounts at 31.12.2012 1.775.864 104.044 83.174 329.232 2.292.314
   Amounts at 31.12.2011 1.544.963 86.735 74.737 16.046 1.722.481
   % Change 14,9% 20,0% 11,3% 1.951,8% 33,1%
Due to banks          
   Amounts at 31.12.2012 - - - 557.323 557.323
   Amounts at 31.12.2011 - - - 2.001.734 2.001.734
   % Change       (72,2)% (72,2)%
Due to customers          
   Amounts at 31.12.2012 - - - 7.119.008 7.119.008
   Amounts at 31.12.2011 - - - 1.657.224 1.657.224
   % Change       329,6% 329,6%
 
INCOME STATEMENT DATA(in thousands of Euro) TRADERECEIVABLES NPL TAXRECEIVABLES GOVERNANCEAND SERVICES GROUPCONSOLIDATEDTOTAL
Net banking income          
   Amounts at 31.12.2012 114.276 18.578 3.789 108.274 244.917
   Amounts at 31.12.2011 73.837 8.601 2.712 36.303 121.453
   % Change 54,8% 116,0% 39,7% 198,3% 101,7%
Net profit from financial activities          
   Amounts at 31.12.2012 69.205 16.633 3.472 101.856 191.166
   Amounts at 31.12.2011 43.322 8.016 1.669 36.303 89.310
  % Change59,7%107,5%108,0%180,6%114,0%
Unpublished
 
QUARTERLY INCOME STATEMENT DATA (in thousands of Euro) TRADERECEIVABLES NPL TAXRECEIVABLES GOVERNANCEAND SERVICES GROUPCONSOLIDATEDTOTAL
Net banking income          
   Amounts at 31.12.2012 35.191 5.385 1.685 35.013 77.274
   Amounts at 31.12.2011 23.829 4.739 2.036 7.023 37.627
   % Change 47,7% 13,6% (17,2)% 398,5% 105,4%
Net profit from financial activities          
   Amounts at 31.12.2012 14.763 3.592 1.518 31.240 51.112
   Amounts at 31.12.2011 11.618 4.793 993 7.023 24.427
   % Change 27,1% (25,1)% 52,9% 344,8% 109,2%
 
KPI(in thousands of Euro) TRADERECEIVABLES NPL TAXRECEIVABLES GOVERNANCEAND SERVICES
Turnover (1)        
   Amounts at 31.12.2012 4.941.514 n.a. n.a. n.a.
   Amounts at 31.12.2011 4.643.553 n.a. n.a. n.a.
% Change 6,4% - - -
Nominal amount of receivables managed
   Amounts at 31.12.2012 2.352.274 3.471.413 146.231 n.a.
   Amounts at 31.12.2011 2.122.981 2.451.270 93.758 n.a.
   % Change 10,8% 41,6% 56,0% -
RWA (2)
   Amounts at 31.12.2012 1.448.097 104.044 41.495 2.428
   Amounts at 31.12.2011 1.227.726 87.160 37.917 147.142
   % Change 17,9% 19,4% 9,4% (98,3)%
(1) Gross flow of the receivables sold by the customers in a specific period of time (2) Risk Weighted Assets

For a more detailed analysis of the result of the business sectors, please refer to the Directors’ Report.

 

Venice - Mestre, 6 March 2013

   

For the Board of Directors 

 

The Chairman

Sebastien Egon Fürstenberg

 

The C.E.O.

Giovanni Bossi

 
Gruppo Banca IFIS
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