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.
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.
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|
|Held to maturity financial assets|
|Amounts at 31.12.2012||-||-||-||3.120.428||3.120.428|
|Amounts at 31.12.2011||-||-||-||-||-|
|Due from banks|
|Amounts at 31.12.2012||-||-||-||545.527||545.527|
|Amounts at 31.12.2011||-||-||-||315.897||315.897|
|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|
|Due to banks|
|Amounts at 31.12.2012||-||-||-||557.323||557.323|
|Amounts at 31.12.2011||-||-||-||2.001.734||2.001.734|
|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|
|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|
|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|
|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|
|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|
|KPI(in thousands of Euro)||TRADERECEIVABLES||NPL||TAXRECEIVABLES||GOVERNANCEAND SERVICES|
|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.|
|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.|
|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|
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
Sebastien Egon Fürstenberg