Section 1 – Consolidated equity
A. Qualitative information
Capital management concerns a set of policies and decisions necessary to establish capital levels that are consistent with the assets and risks taken on by the bank. Banca IFIS Group is subject to the capital adequacy requirements established by the Basel Committee in accordance with the rules set by the Bank of Italy. On the basis of these rules, at the consolidated level, the ratio between capital and risk-weighted assets must be at least 8%.
The activity of ensuring that supervisory and capital adequacy requirements are met is dynamic and based on objectives set right from the planning stage. An initial check is carried out during the allocation of budget objectives: the risks are quantified and the compatibility of ratios checked on the basis of expected growth trends for loans, other assets and the income statement items.
Compliance with capital adequacy requirements is achieved through a payout policy, the definition of strategic financial operations (share capital increases, convertible loans etc.) and the management of lending policy.
Compliance with regulatory capital ratios is monitored during the year and on a quarterly basis.
The Group’s capital adequacy is further analysed and monitored every time an extraordinary operation is planned. In these cases, based on available information regarding said operations, the Banca IFIS Group estimates the impact on capital adequacy ratios and considers the necessary measures, if any, to meet requirements.
Transactions on treasury shares
The Shareholders’ Meeting of 27 April 2012 renewed the authorisation to buy and sell treasury shares, pursuant to article 2357 ff of the Italian Civil Code, as well art. 132 of Leg. Decree 58/98, establishing a price interval within which the shares can be bought, in this case between a minimum of 2 Euro and a maximum of 20 Euro, for a total amount of 20 million Euro. The Meeting also established that the authorisation lapses after 18 months from the date the resolution was passed.
At 31 December 2010, the bank held 997.190 treasury shares for a value of 3.968 thousand Euro and a nominal amount of 997 thousand Euro.
During 2012 Banca IFIS made the following transactions on treasury shares:
- it bought, at an average price of 4,64 Euro, 915.095 treasury shares worth 4.249 thousand Euro and with a par value of 915 thousand Euro;
- it sold, at an average price of 4,66 Euro, 1.652.380 treasury shares worth 7.694 thousand Euro and with a par value of 1.652 thousand Euro, making a profit of 817 thousand Euro which, in compliance with international accounting standards, was recognised under capital reserves;
The balance at the end of the year is therefore 259.905 treasury shares worth 1.340 thousand Euro and with a par value of 260 thousand Euro.
B. Quantitative information
B.1 Consolidated equity: breakdown by type of entity
|Equity items||Banking group||Insurance companies||Other companies||Consolidation eliminations & adjustments||31.12.2012|
|Interim dividend payment||-||-||-||-||-|
|Treasury shares (-)||(1.340)||-||-||-||(1.340)|
|- Available for sale financial assets||5.271||-||-||-||5.271|
|- Property, plant and equipment||-||-||-||-||-|
|- Intangible assets||-||-||-||-||-|
|- Hedging of investments in foreign operations||-||-||-||-||-|
|- Cash flow hedges||31||-||-||-||31|
|- Exchange differences||(4.391)||-||-||-||(4.391)|
|- Non-current assets under disposal||-||-||-||-||-|
|- Actuarial gains (losses) on defined benefit plans||-||-||-||-||-|
|- Amounts of valuation reserves relating to subsidiaries valued at equity||-||-||-||-||-|
|- Specific revaluation laws||-||-||-||-||-|
|Profit (loss) for the year ( +/-) of the Group and minority interests||78.076||-||-||-||78.076|
B.2 Valuation reserves of available for sale assets: composition
|Assets/amounts||Banking group||Insurance companies||Other entities||Consolidation eliminations & adjustments||31.12.2012|
|Positive reserve||Negative reserve||Positive reserve||Negative reserve||Positive reserve||Negative reserve||Positive reserve||Negative reserve||Positive reserve||Negative reserve|
|1. Debt securities||9.846||(4.894)||-||-||-||-||-||-||9.846||(4.894)|
|2. Equity instruments||320||(1)||-||-||-||-||-||-||320||(1)|
|3. O.E.I.C. units||-||-||-||-||-||-||-||-||-||-|
B.3 Valuation reserves of available for sale assets: annual changes
|Debt Securities||Equity instruments||O.E.I.C. units||Loans|
|1. Opening balance||(37.070)||170||-||-|
|2.1 Fair value gains||42.618||149||-||-|
|2.2 Reversal to income statement of negative reserves:||-||-||-||-|
|- negative reserves||-||-||-||-|
|- from impairment losses||-||-||-||-|
|- from realisation||-||-||-||-|
|2.3 Other increases||913||-||-||-|
|3.1 Fair value losses||-||-||-|
|3.2 Impairment losses||-||-||-||-|
|3.3 Reversal to income statement of||-||-||-||-|
|positive reserves: -from realisation||(1.509)||-||-||-|
|3.4 Other reductions||-||-||-||-|
|4. Closing balance||4.952||319||-||-|