Co
onso
olida
ated interim
re
eportt on operatio
ons
ass at 3
31 March
M h 201
15
1
Consoolidated interim report on operations ass at 31 March 2015
Banca po
opolare dell’E
Emilia Romagn
na
Cooperaative Bank witth head office in Modena
Via San C
Carlo, 8/20
Tel. 0039
9 059/20211
111 – Fax 0039 059/20220
033 - Telex 51
10031/51120
04 emipop
Bank Reggistration no.. 4932 – ABI code
c
5387-6
Parent C
Company of Banca popolare
e dell’Emilia R
Romagna Banking Group
Registerred in the Reg
gister of Bankiing Group witth code 5387..6, since 7 August 1992
http://w
www.bper.it - E-mail:
E
bper@
@pec.gruppobpper.it
Tax codee, VAT numbeer and Businesss Register noo. 011532303
360
Modena Chamber of Commerce
C
no
o. 222528 Shaare capital as at 31/12/201
14 € 1,443,9225,305.00
Memberr of the Interb
bank Deposit Guarantee
G
Fuund
Ordinaryy shares listed
d on the MTA market
2
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
Contents
Direectors and offficers of the
e Parent Com
mpany as at the date of approval
a
of tthe
Con
nsolidated interim reportt on operatioons as at 31 March 2015
5
page
p
5
Gro
oup interim report
r
on ope
erations as aat 31 March 2015
page
p
7
Con
nsolidated financial statements as at 31 March 2015
Con
nsolidated baalance sheet
Con
nsolidated income statem
ment
ive income
Stattement of co
onsolidated comprehens
c
Stattement of ch
hanges in con
nsolidated shhareholders' equity
page
p
page
p
Page
P
page
p
71
72
73
74
Con
nsolidated explanatory
e
notes
Form
m and conteent of the Co
onsolidated i nterim report as at 31 March
M
2015
Info
ormation on the consolid
dated balanc e sheet
Info
ormation on the consolid
dated incomee statement
Info
ormation on risks and related hedgin g policy
Info
ormation on the consolid
dated sharehholders' equitty
page
p
79
page
p
85
page
p
101
page
p
115
page
p
127
Attaachments
Balaance sheet of
o the Parent Company a s at 31 Marcch 2015
Inco
ome statemeent of the Paarent Compaany as at 31 March
M
2015
Inco
ome statemeent of the Paarent Compaany by quarte
er as at 31 March
M
2015
Stattement of ch
hanges in shaareholders' eequity of the
e Parent Com
mpany
Page
P
142
Page
P
143
page
p
144
page
p
145
Pro--forma incom
me statemen
nt of the Pareent Compan
ny as at 31 March
M
2014
page
p
146
Certtification of the Manage
er responsibl e for preparing the Company's finanncial
repo
orts
page
p
147
3
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
a officers oof the Parent Company
C
Directors and
Dirrectors and officers off the Parrent Company as at the
datte of ap
pproval of
o the C
Consolid
dated in
nterim reeport on
opeerationss as at 31
3 Marcch 2015
5
Boa rd of Directo
ors
Chaiirman:
Ettorre Caselli
uty chairmen:
Depu
*
*
*
Alberto Marri
Giosuè Boldrini
Luigi Odorici
Chieef Executive Officer:
*
Alesssandro Vandelli
Dire ctors:
*
*
Anto
onio Angelo Arru
u
Maraa Bernardini
Giulio Cicognani
Cristina Crotti
Pietrro Ferrari
Elisaabetta Gualandri
Giovampaolo Lucifero
eppe Lusignani
Giuse
Robe
erto Marotta
Valerriana Maria Massperi
Daniela Petitto
Dean
nna Rossi
Ange
elo Tantazzi
* Mem
mbers of the Executive Committee
Boa rd of Statuto
ory Auditors
Chaiirman:
Anto
onio Mele
ng Auditors:
Actin
Carlo
o Baldi
Franccesca Sandrolini
Vince
enzo Tardini
Diana Rizzo
Subsstitute Auditorrs:
Giorg
gia Butturi
Gianluca Spinelli
5
Consoolidated interim report on operations ass at 31 March 2015
Directors
D
and officers of thhe Parent Com
mpany
Board o
of Arbiters
Memberrs:
Mirand
da Corradi
Marcello Minutolo
Paolo Cesarini
C
Roberto
o Bernardi
Cesare Busi
Substitu
ute members:
Federicco Ferrari Amoro
otti
Massim
mo Turchi
Pier Luigi Cerutti
Generaal Management
General Manager:
Fabrizio
o Togni
Deputy General Manaagers:
Eugenio
o Garavini
Pierpio
o Cerfogli
Gian En
nrico Venturini
Manageer responsiblle for prepariing the comppany's financial reports
Manage r responsible for
f preparing the company'ss
financia l reports:
Indepen
ndent Audito
ors
PricewateerhouseCoopers s.p.a.
6
Emilio Annovi
A
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
Grou
up interrim rep
port
on op
peratio
ons
as at 31
3 Marcch 2015
5
7
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
Contents
Intrroduction
1. K
Key figures
1.1 Group struccture as at 31
1 March 201
15
1.2 Introduction
n
1.3 Performancee ratios
1.4 Summary scchedules
2. S ignificant events
e
and strategic
s
traansactions
2.1 Strategic traansactions
2.2 The Group'ss 2015-2017 Business Pl an
2.3 European Single Supervisory Mechaanism (SSM)
2.4 Structured finance
f
transsactions
2.5 Recovery off doubtful loaans: securitissations and other
o
financial transactioons
2.6 Other signifficant eventss
3. S cope of con
nsolidation of the BPER
R Group
3.1 Composition
n of the Group as at 31 M
March 2015
3.2 Changes in the
t scope off consolidatioon
4. R
Results of op
perations
4.1 Balance sheet aggregate
es
4.2 Own Funds and capital ratios
r
4.3 Reconciliatio
on of consolidated net pprofit/shareh
holders' equity
4.4 Income statement aggre
egates
4.5 Group employees
4.6 Geographicaal organisation of the Grroup
5. O
Other inform
mation
5.1 Treasury shaares
5.2 Share price performance
e
5.3 Shareholderrs
5.4 Rating as at 31 March 2015
5.5 Inspections by the Supervisory Authhorities on Group
G
banks and compannies
5.6 Main litigatiion and legal proceedinggs pending
6. S ignificant s ubsequent events and outlook forr operationss
6.1 Subsequent events
6.2 Outlook for operations
9
nterim report on operation s as at 31 Maarch 2015
Coonsolidated in
m report on op
perations
Interim
Intro
oduction
The ggrowth of thee world econo
omy during thhe first quartter of 2015 was
w modest ovverall, once again,
a
but
moree balanced. In
n particular, th
he marginal i mprovement in the major industrialisedd countries (e
excluding
the U
USA) was acco
ompanied by a slowdown i n the emergin
ng economiess. Global mac roeconomic risks
r
have
thereefore declined
d slightly, butt additional fiinancial and geopolitical
g
(especially in the Middle East)
E
risks
have emerged.
Lookking at the ind
dividual macrroareas, the eeconomic slow
wdown in the United Statees during the first few
montths of the year was partly due to tempporary reason
ns (particularly cold weatheer and length
hy strikes
with an indirect im
mpact on consumption), buut also to mo
ore structural causes, such as the streng
gth of the
dollar. Nevertheleess, the fundamentals of thhe US econom
my remain reassuring: evenn in the districcts where
confiidence has waaned, investm
ment plans andd employmen
nt intentions remain
r
upbea t. Despite a faall during
the ffirst quarter, consumption
n is expected to recover and,
a
notwithsstanding som
me contrasting
g signals,
both the employm
ment and prop
perty markets are still robust overall.
Convversely, theree were timid signs of rec overy in the Euro zone during
d
the peeriod. The co
onfidence
indiccators have taaken off (that for compani es is at its highest since 2011,
2
while thhat for consumers has
actuaally returned to 2007 levels) due, abovee all, to a mixx of exceptionally positive ffactors: extre
emely low
interest rates, sup
pportive action from the EC
CB, the weak Euro and the low oil price ((the Euro zon
ne is a net
impo
orter), which has
h halved in under one yyear. The nextt few months will make it clear if the Euro
E
zone
can ffinally shake off
o stagnation
n and reversee the dangero
ous deflationary trend: the consumer prrice index
(CPI)) for January was
w down 0.6%
% y/y (only -0
0.1% in March
h).
As m
mentioned, the growth of the emergingg countries slowed overall. In particulaar, the rise in
n Chinese
GDP during the first
f
quarter of
o 2015 was the slowest for 25 yearss (7% y/y). T his decelerattion is, in
realitty, tollerated to some exttent by the ggovernment authorities
a
there, given th e desire for a growth
modeel that is less aggressive in
n quantitativee terms, but more
m
sustainable and oriennted towards domestic
demaand and conssumption. By contrast, thee other major Asian economy - India - pperformed we
ell. Major
countries such as Russia and Brrazil remain ecconomically weak
w
however.
The kkey phenomenon marking the start of 2
2015 has undo
oubtedly been the massivee worldwide relaxation
onetary policcy, which has obviously hadd a major inflluence on financial markett performance
of mo
e. In fact,
given
n the anti-inflationary impaact of the col lapse in oil prrices and an upturn
u
in currrency market tensions,
a largge number off central bankks (more than 20, in both the
t advanced and emergingg economies)) adopted
somee form of con
nventional or other monettary stimulus during the fiirst quarter. TThe ECB, for example,
anno
ounced its Qu
uantitative Easing program
mme on 22 Jan
nuary 2015. The
T scale andd duration of this plan,
involving the purcchase of finan
ncial assets (ggovernment bonds
b
and other securitiess) totalling ab
bout Euro
1,100
0 billion, exceeeded expectations; monthhly purchasin
ng of Euro 60 billion comm
menced March
h and will
contiinue (subject to implausible early term ination) until at least the end of Septeember 2016, but
b could
contiinue if inflatio
on does not reflect
r
the EC
CB objective (the
(
target rate is slightly less than 2% over the
mediium term). Th
his decision fu
urther depresssed the Euro
o, which depreciated by m
more than 11%
% against
the U
US dollar durin
ng the quarte
er.
In an
nother notablee move, the BNS (Swiss Ceentral Bank) de
ecided to abandon the low
wer exchange-rate limit
of 1..20 Swiss francs for 1 eurro - adopted over the passt three years or so - duee, in the main, to the
diverrgent monetaary policies off the principaal currency arreas and the appreciation of the US do
ollar. The
BNS also further lowered its deposit
d
rate tto –0.75%. The
T financial markets react
cted vigorously to this
movee: on the sam
me day, the principal
p
Swisss stock markket index plun
nged almost 9% and the yields on
longeer-dated Swisss government bonds fell beelow zero. Immediately aftter the annou ncement, the Euro11
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
Swiss fraanc rate drop
pped to an historical low bbefore returning to a more
e stable level in the weekss that
followed
d.
Overall, this massive monetary eassing by so maany central baanks resulted in unprecedeented conditio
ons in
the bond
d markets. A significant and increasingg amount of sovereign debt began tradding with neg
gative
yields an
nd even the reeturns on prim
me corporate bonds fell be
elow zero in so
ome cases. Thhese extremely low
interest rates and the ample liquiidity availablee provided fu
urther impetu
us for investoors to seek re
eturns
from higgher-risk assetts, thus pushing the prices of most assett classes to re
ecord levels.
Not even the uncertainties caused by the meaasures adopted by the ne
ewly-elected G
Greek govern
nment
(against the austerityy policies imposed by the i nternational institutions) have
h
affectedd the climate in the
markets:: fears regarding the outco
ome of Greec e's negotiatio
ons with its crreditors abou t the conditio
ons of
the resccue programm
me have inde
eed increasedd volatility an
nd pushed the yields on G
Greek govern
nment
bonds to
o the highestt level since July
J
2013, buut the contag
gion has neve
ertheless beeen limited, wiith an
obvious "detachment" of the yieldss on Italian, Poortuguese and
d Spanish sov
vereign debt.
Lastly, across the Atlaantic, the Fed
d maintained its accommo
odative monettary policy in early 2015, which
w
has help
ped to keep US
U bond price
es stable. Marrket operator do not expecct the official reference (fe
ederal
fund) rattes to start rissing until the second half oof the year, at the earliest.
12
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
1.
Key figuress
1.1 G
Group structture as at 31
1 March 2015
5
The G
Group structu
ure as at 31 March
M
2015 is as follows.
13
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
1.2 Inttroduction
The firstt quarter of the
t year show
ws very posittive results with
w a net pro
ofit for the peeriod of Euro
o 51.7
million ((+65.61% com
mpared with the first quarrter of 2014).. The main facctors contribuuting to this result
include the sharp falll in adjustme
ents to loanss, to the lowe
est level in th
he last 10 quuarters, the strong
s
performance of core revenues, esspecially in teerms of comm
missions, and
d the contain ment of operating
costs. In addition, thee coverage of impaired loanns has increassed to 40.98%
% at the end oof the quarter (one
of the best among our direct competitors),
c
while transfers to non-performing sstatus have fallen
considerrably.
The BPER Group conffirms its solid
d capital base with a Fully Phased,
P
pro fo
orma CET1 raatio of 11.28%
% and
ent of
leveragee of over 7%,, among the best in the ssystem, refleccting prudentt and balanceed manageme
1
assets an
nd equity.
As regarrds the figuress in the incom
me statementt, note that in the summary
y versions thaat follow in se
ection
2
1.4, refeerence is maade to the reclassified coonsolidated financial
f
statements in w
which indirecct tax
recoveries, which arre allocated for accounti ng purposes to "Other operating
o
inccome", have been
reclassiffied as a reducction in the re
elated costs.
The following resultts, presented in comparisson with the
e fourth qua
arter of 20144, are particcularly
significant:
 Profit from current
c
operaations beforee tax amounte
ed to Euro 78.9 million inn the first qu
uarter,
compared wiith a loss in th
he fourth quarrter of the priior year;
 Operating prrofit of Euro 555
5 million, u p by 2.70%. In particular:
 net interest income up by 0.2
25% despite two
t
calendar days less in tthe first quarrter of
201
15 with a sligh
ht improvemeent in the ove
erall spread brrought about by the decrease in
the cost of fundin
ng which morre than offset the declining
g yield on asseets;
 net commission income up bby 1.7% than
nks to the continuing grow
wth trend in asset
man
nagement and
d "bancassuraance" and stabilisation off the componnent linked to
t the
trad
ditional activitty;
 net result from financial activi ties up by 22.32% thanks to
t the positivve trend in financial
marrkets with an additional inccrease in the valuation
v
rese
erves on the ssecurities porrtfolio
sincce the end of the
t year;
osts well down (-7.65%), booth for payroll (-4.53%) and for adminisstrative expen
nses ( Operating co
12.33%), maainly attributable to the usuual seasonalitty;
 Net loan adjustments dow
wn considera bly on the prrevious quarte
er (-36.60%).. The cost of credit
comes in at 34
3 bps for the
e quarter (53 bbps in the fou
urth quarter of 2014).
1
Commonn Equity Tier 1 ratio ("CET1"): calculated takiing into accoun
nt the share of profits attributa
table to equity earned
e
during the
he first quarter of
o the year and
d the net effectss accrued duringg the same periiod from applica
cation of the faiir value
option (tootal of € 40.5 million,
m
10 bps). Fully Phased C
CET1 estimated according to th
he new Basel 3 rregulations at January
J
2019.
2
Paragrapph 1.4 below proovides the recon
nciliation requirred by CONSOB
B communication
n DEM/6064293
93 of 28 July 200
06.
14
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
Interim
m report on op
perations
The p
principal econ
nomic aggregaates are comppared below with
w the resultts for the firstt quarter of laast year:
 The profit from curren
nt operations before tax am
mounted to Euro 78.9 milliion in the firsst quarter
(+51.86%
%);
 Operating profit decre
eased by 4.93%
%. In particular:
 net
n interest in
ncome down by 4.77% maainly due to a different maarket environm
ment and
l
level
of intere
est rates;
 net
n commission income upp by 4.52% thanks to the co
ontribution off indirect dep
posits and
"
"bancassuranc
ce";
 lower
l
contribution from thhe net result from
f
financial activities (-227.24%) influenced by
t
the
comparisson with thee first quartter of last year
y
with a particularly positive
p
performance.
 Operating costs up slig
ghtly (+0.25%
%);
 Net loan adjustments down considderably (-30.36%) on the first quarter oof 2014, with a cost of
credit of 34 bps (135 bps
b annualisedd).
In thee balance sheeet:
 in volumee terms, comp
pared with th e position at 31 December 2014, net leending to customers is
essentiallly stable (Euro 43,865.1 m
million, -0.12%
%), albeit up slightly
s
in grooss terms, wh
hile direct
deposits have fallen by
b 1.92% (to Euro 45,294..9 million), with a ratio of net loans/de
eposits of
96.84% (95.10%
(
at 31
1 December 2
2014);
 on the otther hand, ind
direct depositts (Euro 30,13
30.2 million) turned
t
in a goood performance, with
a significaant increase (+6.85%)
(
maiinly for assetss under manag
gement (+10..08%) and in the stock
of life inssurance policie
es (Euro 3,41 9.6 million: +12.18%).
The ccapital ratios, all well over the
t regulatoryy limits calculated on a pro
o-forma basis,, are as follow
ws:3
 Applying the transitio
onal (Phased in) arrangements, Commo
on Equity Tierr1 (CET1) am
mounts to
ndardised
Euro 4,599,309 thoussand, resultinng in a ratio of 11.43% calculated ussing the stan
approach
h to measuring
g credit and m
market risk.
 Estimated
d CET1 ratio under
u
full appplication (or "F
Fully Phased")) of 11.28%;
 Total Phaased in Capittal ratio of 1
12.26%. Totall Own Funds, calculated oon a pro form
ma basis,
amounts to Euro 4,933
3,535 thousannd.
Very positive leverage indicators:
 transition
nal arrangeme
ents (Phased iin) of 7.2%;
 full appliccation (Fully Phased)
P
of 7.1
1%.
Liquidity levels hig
gher than the required minnimums:
 Liquidity Coverage Rattio (LCR) of 1 17%;
 Net Stable Funding Raatio (NSFR) noot yet availab
ble, but estimated to easilyy exceed 100%
% (115%
at 31 Deccember 2014)).
3
See nnote 1
15
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
1.3 Perrformance raatios
31.03.20015
20
014 (*)
72.338%
96.884%
18.665%
2.111%
0.663%
86.004%
47.551%
22.21
111.74
(5,503,9915)
11,,552
72.41%
7
95.10%
9
16.99%
1
2.12%
0.63%
86.83%
8
46.12%
4
2.06
12.00
(4,77
70,260)
11,593
1,,273
1,273
3.775%
4.117%
0.009%
55.990%
0.334%
0..094
0..094
0.33%
0.37%
0.05%
53.01%
5
0.46%
0.084
0.084
15.002%
6.554%
7.999%
0.550%
40.998%
56.550%
19.119%
7.661%
0.555%
14.86%
1
6.42%
8.00%
0.44%
40.66%
4
56.55%
5
18.28%
1
8.07%
0.56%
Financiaal ratios
Structurral ratios (%)
net loanss to customers/ttotal assets
net loanss and advances to
t customers/diirect deposits frrom customers
financial assets/total asssets
fixed assets/total assets
goodwill//total assets
direct deeposits/total asssets
deposits under managem
ment/indirect de
eposits
financial assets/tangiblee equity4
ngible assets5/tangible equity
Total tan
net interbank lending/bo
orrowing (in tho
ousands of Euro))
of employees
number o
number o
of national bankk branches
Profitabbility ratios (%
%)
ROE
ROTE
ROA (nett profit/total assets)
Cost/inco
ome ratio6
Net adjustments to loan
ns /net loans to customers
c
Basic EPSS
Diluted EEPS
Risk rattios (%)
net doub
btful loans/net lo
oans to custome
ers
net non-p
performing loan
ns/net loans to customers
c
net unlikkely to pay loanss/net loans to cu
ustomers
net past due loans/net lo
oans to custome
ers
adjustmeents to doubtful loans/gross doubtful loans
adjustmeents to non-perfforming loans/gross non-perforrming loans
adjustmeents to unlikely to pay loans/gro
oss unlikely to ppay loans
adjustmeents to past duee loans/gross passt due loans
adjustmeents to performiing loans/gross performing loanns
(*) The coomparative amoounts were deteermined with ref
eference to the income
i
stateme
ent for the perio
iod to 31 March
h 2014,
except tha
hat ROE (Return On Equity) and
d ROTE (Return O
On Tangible Equ
uity) are presentted on an annuaalised basis.
Tangiblee equity = total shareholders'
s
eq
quity net of intan
angible assets.
Total tanngible assets = total
to assets net of
o intangible asssets.
6
The cost
st/income ratio has been calcu
ulated on the ba
basis of the layo
out of the reclaassified income statement (opeerating
expenses//operating incoome); when calcu
ulated on the ba
basis of the layo
outs provided byy Circular no. 2662 of the Bank of
o Italy
the cost/iincome ratio is at
a 57.25% (52.6
64% at March 311, 2014).
4
5
16
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
31..03.2015
2014 (*)
11.43%
11.47%
12.26%
11.28%
7.2%
7.1%
117%
n.d.
11.26%
11.29%
12.24%
10.91%
7.2%
6.9%
125%
115%
3,920.96
3,797.19
1,239.15
1,369.07
42.70
46.71
26.74
3,983.71
3,788.47
1,121.71
1,310.60
43.06
48.55
25.55
Capi
pital and liquiddity ratios7
Common Equity ratio (CET1 ratio) - Phased in
Tier 1 ratio (T1 ratio
o) - Phased in
Total Capital ratio (TTC ratio) - Phase
ed in
Common Equity ratio (CET1 ratio) - Fully Phased8
Leverage ratio - Phased in
Leverage ratio - Fullyy Phased
Liquiidity coverage raatio (LCR)
Net sstable funding ratio
r
(NSFR)9
Nonn financial ratioos
Prodductivity ratios
os (in thousand
ds of Euro)
direcct deposits per employee
e
loanss and advances to
t customers pe
er employee
assetts managed per employee
assetts administered per employee
core revenues per em
mployee10
net interest and other banking income per employeee
e
operating costs per employee
(*) Thhe comparative amounts were determined
d
witth reference to the
t income stattement for the pperiod to 31 March
M
2014,
exceppt that ROE (Retturn On Equity) and ROTE (Retuurn On Tangiblee Equity) are pre
esented on an annnualised basis.
Capiital and liquidityy ratios at 31 March
M
2015 havee been calculateed on a pro-form
ma basis, takingg into account th
he share of
profitts attributable to
t equity earned
d during the firs
rst quarter of 20
015 and the nett effects accrueed during the saame period
from application of the
t fair value op
ption (a total off € 40.5 million)
n). On the otherr hand, they do not take into account
a
the
m
(pre-valid
dation of the AIIRB models with
h the ECB and th
he Bank of Italy oofficially begun
n at the end
beneffits of internal models
of Jannuary 2015).
8
Com
mmon Equity Tieer 1 ratio (CET1 ratio)
r
– Fully Phhased, as stated
d in the previous paragraph, it iss calculated on a pro-forma
basis and estimated according
a
to thee new Basel 3 reg
egulations at Jan
nuary 2019.
9
The N
NSFR, not yet available,
av
is in an
ny case estimateed to exceed 100
00%.
10
Coree revenues = neet interest incom
me + net commis
ission income.
7
17
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
1.4 Su
ummary scheedules
The reclassified incom
me statementt for the peri od to 31 March 2015 is presented
p
bellow, with quaarterly
comparisons.
In accorrdance with CONSOB's
C
re
equirements contained in Communication DEM/60064293 of 28
8 July
2006, w
we provide details
d
of agg
gregations annd reclassificcations comp
pared to the standard in
ncome
statement format pro
ovided in the Bank
B
of Italy'ss Circular no. 262/2005:
 "Net result from financiial activities"" includes items 80, 90, 100 and 1100 in the standard
reporting forrmat;
 indirect tax recoveries, allocated fo r accounting
g purposes to item 220 "Other ope
erating
charges/incoome", have been
b
reclassiffied as a red
duction in th
he related coosts under "Other
O
administrativve expenses" (Euro 30,8644 thousand att 31 March 2015 and Euroo 29,789 thousand
at 31 March 2014);
 “Net adjustm
ments to prop
perty, plant annd equipmentt and intangib
ble assets" incclude captions 200
and 210 in th
he standard re
eporting form
mat;
 “Net impairm
ment adjustm
ments to AFSS and HTM fin
nancial assetss" includes caaptions 130 b)
b and
130 c) in thee reporting forrmat;
 “Gains (losse
ses) on equityy investments
ts, disposal off investmentss and adjustm
ments to goo
odwill"
include le captions 240, 260 and 270 inn the reportin
ng format.
The num
mbers corresp
ponding to the
e item in the financial stattements have
e been given next to each entry
on ordeer to facilitatte reconciliation of the ittems in the reporting fo
ormat requireed by Circulaar no.
262/200
05 with the reeclassified income statemeent.
18
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
Recllassified con
nsolidated income
i
stattement as att 31 March 2015
(in thousandss of Euro)
Capttions
31.03.2015 31.03.2014
Change %change
%
1
10+20
Net interest income
314,095
329,820
(15,725)
-4.77
4
40+50
Net commission inco
ome
179,203
171,450
7,753
4.52
70
Dividends
80+90
0+100+110 Net trading income
2
220 (*)
Other operating charges/income
Opeerating income
1
180 a)
18
80 b) (*)
20
00+210
1
130 a)
13
30 b)+c)
1
130 d)
190
240+
+260+270
280
Payrroll
Other administrative
e costs
Net adjustments to property,
p
plant, eequipment and
intangible assets
Opeerating costs
Net operating incom
me
Net impairment adju
ustments to loanss
Net impairment adju
ustments to finanncial assets
available for sale and
d held to maturityy
Net impairment adju
ustments to othe r financial
asseets
Net impairment adjjustments
Net provisions for rissks and charges
Gain
ns (Losses) from equity instrumennts, on
disp
posal of investments and adjustmeent to
good
dwill
249
574
(325)
-56.62
46,058
63,300
(17,242)
-27.24
15,443
18,666
(3,223)
-17.27
555,048
583,810
(28,762)
-4.93
(199,322)
(196,796)
(2,526)
1.28
(93,620)
(96,338)
2,718
-2.82
(17,330)
(310,272)
(16,357)
(309,491)
(973)
(781)
5.95
0.25
244,776
(147,504)
274,319
(211,820)
(29,543)
64,316
-10.77
-30.36
(6,347)
(466)
(5,881)
--
3,879
(149,972)
(14,096)
(2,424)
(214,710)
(6,658)
6,303
64,738
(7,438)
-260.02
-30.15
111.72
(1,773)
(972)
(801)
82.41
78,935
(27,234)
51,979
(20,760)
26,956
(6,474)
51.86
31.18
290
310
Proffit (Loss) from current operatio ns before tax
Inco
ome taxes on currrent operations
Proffit (Loss) after taxx on non-currentt assets held
for sale
s
-
-
-
n.s.
320
Net Profit (Loss) for the period
51,701
31,219
20,482
65.61
330
Net profit (loss) perttaining to minoritty interests
Proffit (Loss) for the
e period pertainiing to the
Pareent Company
(6,504)
(2,947)
(3,557)
120.70
45,197
28,272
16,925
59.86
Capttion net of recovvery of taxes
30,864
29,789
1,075
3.61
340
(*)
19
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
Reclasssified consoolidated inco
ome statem
ment by quarrter as at 31
1 March 201
015
Caption s
1st
quarter
2014
2nd
quarter
2014
3rd
quarter
2014
4th 31.12
2.2014
qquarter
2014
10+20
0
Net intereest income
314,0995
329,820
328,639
320,040
3313,310
1,2
291,809
40+50
0
Net comm
mission income
179,2003
171,450
174,028
169,012
1176,174
690,664
6
2449
574
17,617
115
1,086
19,392
Net tradin
ng income
Other opeerating
charges/income
46,0558
63,300
46,389
20,323
37,653
167,665
1
15,4443
18,666
11,133
5,851
12,215
47,865
Operatin g income
555,0448
583,810
577,806
515,341
5540,438
2,2
217,395
(199,3222)
(196,796)
(201,099)
(180,006)
(2 08,786)
(786,687)
(93,6200)
(96,338)
(103,322)
(97,940)
(1 06,786)
(404,386)
70
0+110
80+90+100
220 (*))
180 a))
180 b) ((*)
210 + 22
20
Dividendss
Payroll
Other adm
ministrative costs
Net adjusstments to property,
plant and equipment and
intangiblee assets
Operatin g costs
130 a))
130 b)+
+c)
130 d))
190
240+260+
+270
280
290
310
320
330
340
(*)
20
1sst
quarteer
201 5
Net operrating income
Net impairment adjustments
to loans
Net impairment adjustments
to financial assets available
for sale an
nd held to maturity
Net impairment adjustments
to other financial
f
assets
Net impaairment
adjustmeents
Net provisions for risks an
nd
charges
Gains (Lo
osses) on disposal of
investments and adjustme
ents
to goodw
will
Profit (Lo
oss) from curren
nt
operation
ns before incom
me
tax
Income taaxes on current
operation
ns
(17,3300)
(16,357)
(16,613)
(17,015)
((20,401)
(70,386)
(310,2722)
(309,491)
(321,034)
(294,961)
(3335,973)
(1,26
61,459)
244,7776
274,319
256,772
220,380
2204,465
955,936
9
(147,5044)
(211,820)
(204,972)
(163,296)
(2 32,646)
(812,734)
(6,3477)
(466)
(3,189)
(680)
((36,012)
(40,347)
3,8779
(2,424)
(614)
(3,115)
1,015
(5,138)
(149,9722)
(214,710)
(208,775)
(167,091)
(2667,643)
(85
58,219)
(14,0966)
(6,658)
(12,976)
(8,036)
((11,112)
(38,782)
(1,7733)
(972)
(2,770)
2,273
699
(770)
78,9335
51,979
32,251
47,526
(773,591)
58,165
(27,2344)
(20,760)
(20,922)
(14,258)
27,556
(28,384)
-
-
-
-
-
-
51,7001
31,219
11,329
33,268
(446,035)
29,781
Profit (Loss) after tax on nonn
current asssets held for sale
Net profiit (loss) for the
period
Net profitt (loss)pertaining
g to
minority interests
i
Profit (Lo
oss) for the period
pertainin
ng to
the Paren
nt Company
(6,5044)
(2,947)
(3,701)
(8,067)
(269)
(14,984)
45,1997
28,272
7,628
25,201
(446,304)
14,797
Caption net
n of recovery off
taxes
30,8664
29,789
32,392
31,705
31,517
125,403
1
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
2. Siignificant events and strategic
s
traansactions
2.1 SStrategic transactions
New
w brand: BPEER Banca
Num
merous changees in the stru
ucture of thee Parent Com
mpany, resulting in the achhievement off national
statu
us, prompted managementt to include a project in th
he 2012-2014
4 Business Pllan to establish a new
brand
d identity and
d positioning for
f the Groupp and each ind
dividual Bank..
This project involvved many mo
onths of workk by the central departments at the Pa rent Compan
ny, whose
brand, the leaading internattional brand consultancy. The new brand, BPER
efforrts were assissted by Interb
Bancca, was officiaally presented
d to the presss, our customers and the
e financial coommunity on 16 April
2015
5: the new braand and identity are consisttent with ourr objectives, expressing welll our historical virtues
and ccurrent identity, while also projecting uss into the futu
ure.
The new brand was
w devised by combiningg analytical, strategic and
d creative thhinking and expresses
e
immeediately our new position
ning: we com
mbine the soliidity of a nattional-level bbank with an in-depth
know
wledge of the territories in which our cusstomers live, working to he
elp them buildd a strong tom
morrow.
The new brand will enhancce the efficciency of marketing
m
and
d communiccations, imprrove our
recoggnisability, distinctiveness and reputati on, and raise our profile with
w investorss and marketss, thereby
making us more able to generatte additional business.
The letters of the logo have bee
en designed tto communicaate a sense off balance; authhority, practiccality and
judgeement, with special emphaasis on the inittial “P” for Po
opolare.
The ““colon”, an op
pening punctu
uation mark tthat symbolises proportion
n and equilibrrium, hints at the start
of a d
direct discussion, dialogue,, relationship..
The u
use of green maintains an
nd capitalises on a link witth the history
y of the bankk, while the tw
wo tones
indiccate solidity an
nd modernityy at the same ttime.
Subsscription too the increasse in the shhare capital of Release s.p.a.
The EExtraordinaryy General Mee
eting of Releaase s.p.a. held
d on 26 Febru
uary 2015 ressolved to procceed with
an increase in capital of Euro 30
00,000,000 inn order to enssure that the company
c
can continue ope
erating as
a going concern an
nd compliance with the lim
mits set by law
w on major risks.
On 2 March 2015
5, BPER exercised its optiion on 32,520,000 sharess due in propportion to the
e interest
curreently held in the company'ss capital (10.8
84%), with a payment
p
of Eu
uro 32.5 millioon.
21
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
2.2 The Group's 201
15-2017 Bussiness Plan
On 10 FFebruary 2015
5, the Board of Directors of Banca pop
polare dell'Em
milia Romagnaa s.c. approve
ed the
new 201
15-2017 Busin
ness Plan, which will steer the Group's activities
a
overr the next threee years.
The new
w Business Plan of the BPER Group pprovides for solid and sustainable val ue creation to be
distributted to its sharreholders on a stable basis..
The targgets for 2017 are:
a
 a ROTE (Retu
urn On Tangib
ble Equity) of 9% and Euro
o 400 million of
o net profit;
 a CET1 ratio of 12%;
 a Dividend payout ratio off more than 3
30%.
The Plan
BPER”, is sum
mmarised by the 5Ss: “Solidity, Simpliccity, Specialisation,
n, appointed “BECOMING
“
Selectiviity and Stakeeholders”; it was
w devised w
with the closse involvemen
nt of all Grouup personnel, who
worked together on one single, agreed prograamme of chan
nge. The new
w Plan draws with strength and
balance on three maccro pillars:
 the strengthening of reve
enues, with oobjectives forr the growth of commissioon income an
nd the
developmentt of lines of business
b
thatt support the needs of the
e territories sserved, house
eholds
and small and medium-sizzed enterprisees;
 the simplification and gre
eater efficienccy of the operrational mode
el, due to furtther rationalissation
of the brancch network an
nd related orgganisational controls,
c
the simplificationn of processe
es and
investment in innovative technologies;
t
 the optimisaation of the risk profile, invvolving targetted evolution of the way thhe lending prrocess
is governed and the imp
plementation of strategiess that are clo
osely tied to the Risk Appetite
Framework, as well as the
t more speecialised man
nagement of impaired loaans, partly by the
creation of a business unitt dedicated too non-core assets.
The Plan
n addresses th
he needs of th
he Group's staakeholders (C
Customers, Local Communiities, Shareho
olders,
Supervissory and Control Authorities, Regulato rs and Emplo
oyees), with lines of actionn based on quality
and simp
plicity.
“BECOM
MING BPER” therefore
t
makkes customer satisfaction a strategic pillar that is key when decidin
ng the
initiativees to be taken by the Group. Relationss with local co
ommunities include aboutt Euro 44 billion in
lending to customerrs, making th
he BPER Gro up an active
e member of these comm
munities. Exte
ensive
recoursee to the opportunities provided by diigital technollogies will en
nsure the achhievement off new
standard
ds of efficienccy in our relaations with cuustomers and
d the territoriies served. Iddentification of
o the
regulato
ory requiremeents as strateg
gic within thee Business Plan demonstrates the atte ntion dedicatted to
this increeasingly impo
ortant aspect of banking acctivities.
With reggard to ties with
w our privatte and instituttional shareho
olders, the increase in the payout policyy and,
accordin
ngly, the returrn of value to them, confir ms our comm
mitment to all our sharehollders: based on
o the
forecasts, more than 30% of the profits
p
realiseed will in factt be distribute
ed to our sha reholders ove
er the
period co
overed by thee Plan.
Against this backgrou
und, the deve
elopment of oour employee
es is undoubttedly strategi c, with substtantial
investmeent in their professional
p
skills
s
while al so enhancing
g our welfare policies, thuus dedicating great
attention to the satisffaction of all personnel.
p
For a gro
oup present in 18 regions of Italy, withh 1,273 brancches, the challenge is to reeconcile this scale
s
that meeets market neeeds - with th
he identity annd history of the
t component banks, wh ich seek to re
emain
close to the needs and
d plans of ind
dividuals.
22
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
The ffirst action, taaken in early 2015,
2
has beeen to establissh a Transform
mation Prograam to put the business
plan into practice.. This has invo
olved establisshing work gro
oups and projjects that adddress each of the three
macrro pillars, witth strict mon
nitoring of thhe time required and the progress maade on the tasks
t
and
operaations identiffied.
In ad
ddition, in orrder to ensure the effecttiveness of the
t program, the Group hhas identified
d both a
Transsformation Officer,
O
reportting to Gene ral Managem
ment, and a dedicated projject organisation that
coord
dinates the vaarious phases of the processs (operationaal planning, project implem
mentation, mo
onitoring,
reporting and the analysis of vaariances).
Manaagers have also been identtified for the various workk groups and related
r
projeccts (the role of
o project
leadeer is key to implementation of the Transformatiion Program)), each focussed on theirr specific
respo
onsibilities. Th
hey are suppo
orted by a nuumber of key persons, within a matrix-sttyle organisattion, who
moniitor the progrress of individual projects.
2.3 EEuropean Sin
ngle Supervisory Mechannism (SSM)
The ssupervisory reeview of 2014
4 was compleeted during th
he first quarte
er of 2015, w
with communiication of
the m
minimum cap
pital requirem
ments applicabble to the Group. This marked the starrt of working relations
with the ECB in th
he context of the
t European Single Supervisory Mechanism.
Vario
ous requests were
w
received
d from the Joiint Supervisory Team (JST)) for documeentation to im
mprove its
know
wledge of the Group, our dynamics
d
and our characteristics. These requests rannged widely, covering
c
amon
ng other areas - risk manag
gement, the bbusiness mode
el, profitability
y and capital adequacy.
Vario
ous meetings held with the
e supervisory team also covvered other topics, such ass the disaster recovery
plan, governance and
a the risk appetite frameework.
In th
his regard, a preliminary version
v
of th e 2015-2017
7 business plan was preseented to the JST at a
meetting that yield
ded useful sug
ggestions for iits refinement.
2.4 SStructured finance transactions
In view of the im
mportance of maintaining an adequate
e liquidity pro
ofile, various initiatives haave been
plann
ned and implemented witth a view too diversifying the forms of
o medium/loong-term finaancing to
include refinancin
ng operations with the Euroopean Centraal Bank, as we
ell as the placeement of bon
nds in the
domeestic and inteernational marrkets.
In this context, thee following acctions were coompleted:
 issue of a long-term prrogramme of Guaranteed Bank
B
Bonds (C
Covered Bondds) for a total of Euro 5
billion, in
ntended for institutional investors. After
A
two reta
ained issues used for refinancing
transactio
ons with the European
E
Cenntral Bank, a new
n bond issu
ue, the third oof the program
mme, was
carried out on 15 Octtober 2013 foor Euro 750 million,
m
all of which was pplaced in the domestic
and interrnational markkets; on 24 Feebruary 2014
4, this issue was
w reopened ffor a further Euro 250
million, again
a
entirelyy placed in tthe markets. The fourth bond
b
issue w
was carried ou
ut on 22
January 2015
2
for Euro
o 750 millionn, all of which
h was placed in the domeestic and inte
ernational
markets.
23
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations




24
At the samee time, on 12 January 20
015, early repayment of the
t second rretained issue
e was
commenced.. The portfolio
o for the fifth assignment of
o assets to th
he “cover poool” was selectted on
1 April 2015, thus creating the conditioons for a furth
her potential bond issue;
securitisation
n by the Parent Company, in 2009, of performing
p
ressidential morttgages pursuaant to
Law 130 datted 30 April 1999, with a view to strrengthening the
t funding aavailable to tackle
t
liquidity riskks; the notional amount ouutstanding off the Senior securities
s
at 31 March 20
015 is
Euro 701.3 million.
m
The Mezzanine
M
an d Junior secu
urities at 31 March
M
2015 aamount to Eu
uro 40
million and Euro
E
132.6 million respecti vely.
completion of
o a securitissation of "Loaans to SMEs", similar to the Estense Finance operration
carried out in 2009. In paarticular, in 2
2012 it was decided to sell and securitiise loans issued by
y the operatioon, in order to
o have
BPER, acquirring on subscrription all of tthe securities originated by
available add
ditional instru
uments eligib le for refinancing with the
e ECB. The loaans involved in the
sale were peerforming loan
ns made to SM
MEs for a tottal of Euro 2.2
2 billion. The buyer was Esstense
S.M.E. s.r.l., a special purpose vehicle w
which issued Senior
S
securities (Class A) ffor Euro 1.5 billion,
b
rated "A-"/"A
A" (low) by Staandard & Pooor’s and DBRS
S respectively, and Junior ssecurities (Claass B),
which are un
nrated, for Euro 0.7 billion . The Senior Security
S
is cu
urrently amorttising according to
expectationss and the resid
dual nominal capital after the
t payment date in Marchh 2015 amounts to
Euro 461.2 million.
m
similar to thee process follo
owed by BPER
R, Cassa di Risparmio di Brra s.p.a. has caarried out two
o selfsecuritisation
ns known as Dedalo
D
Financce and Icaro Finance.
F
The securitiees issued in th
he context of these two traansactions we
ere deemed eeligible by the
e ECB,
thus enabling Cassa di Rissparmio di Brra s.p.a. to acttivate procedures for particcipating direcctly in
refinancing auctions.
a
In paarticular:
 Ded
dalo Finance:: Senior Seccurities (classs A) issued for Euro 1166,800 thou
usand,
subsscribed by Caassa di Risparrmio di Bra s..p.a. for Euro 77,000 thoussand (at 31 March
M
201
15 the securitiies show a noominal value of
o Euro 49,119.3 thousandd and a fair value of
Euro
o 49,671.6 thousand)
t
annd Junior Se
ecurities (classs B) issued for Euro 33,837
thou
usand, subscrribed by Casssa di Risparmio di Bra s.p.a
a. for Euro 155,625 thousan
nd (at
31 March
M
2015 the
t securities show a nomiinal value of Euro
E
15,625 tthousand and a fair
valu
ue of Euro 15,851.8 thousaand);
 Icaro Finance: Se
enior Securitiees (class A) isssued for Euro
o 485,000 thoousand, subsccribed
by Cassa
C
di Rispaarmio di Bra s.p.a. for Euro 151,300 th
housand (at 3 1 March 201
15 the
secu
urities show a nominal vaalue of Euro 62,637.9
6
thousand and a fair value off Euro
57,0
068.9 thousand) and Junioor Securities (class B) issued for Euro 2268,190 thou
usand,
subsscribed by Caassa di Risparrmio di Bra s..p.a. for Euro 83,650 thoussand (at 31 March
M
201
15 the securities show a noominal value of Euro 83,650 thousand and a fair value of
Euro
o 84,001.4 thousand);
a "multi-orig
ginator securitisation" of l ease receivab
bles was carrried out jointtly by Sardale
easing
s.p.a. and AB
BF Leasing s.p
p.a. (absorbedd by Sardaleassing s.p.a. on 24 June 20144) through the sale
without reco
ourse of a portfolio of perrforming lease receivables, selected acccording to sp
pecific
objective critteria, in a lum
mp sum to a sppecial purpose
e vehicle (SPV
V) called MULLTI LEASE AS s.r.l.
s
The sale of the
t receivables was formaalised on 1 February
F
2013 and publishhed in the Official
O
Gazette no. 16 of 7 Febrruary 2013. TThe total valu
ue of the loan
ns sold was a pproximatelyy Euro
1,018 million
n.
The SPV financed the purcchase price off the receivab
bles by issuing
g:
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
Interim
m report on op
perations

SSenior Class A securities oof Euro 625.9 million, ratin
ng: S&P "A" annd Fitch "A-", listed on
t Dublin Sto
the
ock Exchangee and recognissed as eligible
e by the Irish C
Central Bank;
 two
t Junior Claass B securitiees, of Euro 16
68.4 million and Euro 223..4 million, unrrated and
u
unlisted,
subsscribed by thee seller.
 The
T
aim is again
a
to raisse funds for the benefit of the entirre Banking Group,
G
at
c
competitive
costs,
c
throughh refinancing with
w the ECB.
The Senio
or Security is currently am
mortising acco
ording to expectations andd the residuall nominal
capital aft
fter the payme
ent date in Jannuary 2015 amounts to Euro 270 millionn.
Targgeted Long Term
T
Refinaancing Operrations – T--LTRO
On 5 June 2014,, the executiive Council oof the Europ
pean Central Bank (ECB) approved refinancing
operaations aimed at the longer term (Targetted Long Term
m Refinancing Operations - T-LTRO) to be
b carried
out ffor a period off two years from Septembeer 2014, through eight qua
arterly auctio ns. This initiative aims
to im
mprove the functioning of the mechanissm for transm
mitting monettary policy too the real economy, by
supporting the pro
ocess of grantting credit.
The aamount set aside was arou
und Euro 1,00
00 billion - off which Euro 200 billion beelongs to Italy - which
will b
be provided by
b the ECB to banks in the form of liquidity, on cond
dition that theese funds werre passed
on to
o households and businesse
es in the form
m of loans.
Bankks were initially assigned a ceiling by waay of T-LTRO for an amoun
nt equal to 7%
% of the totaal amount
of lo
oans to the non-financial
n
private secttor (excluding
g home purchase loans tto households) in the
Eurozzone (so-calleed "eligible lo
oans") outstaanding at 30 April 2014. As part of thhe first two T-LTROs,
sched
duled for the months of Se
eptember andd December 2014,
2
the counterparties haad the possib
bility each
time to activate a loan for an am
mount that coould not excee
ed the initial ceiling
c
on a cuumulative bassis.
In ad
ddition, for each
e
of the auctions
a
afteer the first tw
wo (between March 20155 and June 2016),
2
all
counterparties maay request an additional ceeiling equal to
o three times the
t differencee between the
e amount
of th
he net eligiblee total loans granted (in tthe period be
etween 1 May
y 2014 and tthe respective
e date of
awarrd of referencce) and a set reference vaalue ("Benchm
mark"), net off the amountt previously borrowed
b
undeer the auction during the pe
eriod commenncing from March
M
2015.
The iinterest rate on
o the main refinancing
r
opperations of the
t Eurosyste
em in place att the time of issue will
be ap
pplied to T-LTTROs for the duration
d
of eaach operation
n, with the ex
xception of thhe first two, to
o which a
fixed
d spread of +1
10 bps will be applied. Interrest will be paaid in arrears at
a the time thhe loan is repaaid.
Undeer the T-LTRO
O programme, BPER decideed to take paart in the firstt auction for tthe maximum
m amount
that the Group caan apply for in
i the first tw
wo auctions, i.e.
i Euro 2 billion. This opeeration, for which
w
the
issuee date was 24 September 2014 and withh maturity on 26 Septembe
er 2016, is at a fixed rate off 0.15%.
As a result, the BP
PER Group did
d not participaate in the March 2015 aucttion.
All of the T-LTRO
Os will expire in Septembe r 2018. They will also hav
ve to be repaiid early, in Se
eptember
2016
6, by those baanks whose ne
et eligible loanns are lower than
t
their ben
nchmark for tthe period 1 May
M 2014
- 30 A
April 2016.
If thee credit trend
d in Septembe
er 2016 is in line with the
e benchmark, the banks wiill be able to keep the
cash obtained fro
om the ECB until the exppiry date, or decide autonomously to go ahead with
w
early
repayyment of all or
o part of the money.
m
25
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
2.5 Reco
overy of dou
ubtful loans: securitisatioons and othe
er financial transactions
Avia Peervia transaaction
The multti-originator securitisation
s
of Avia Perviia s.r.l. (the SP
PV held 9.9% by BPER), ca rried out by Group
G
banks, excluding Casssa di Risparm
mio di Bra s.p.aa., on 17 Mayy 2013, continued during tthe first quarrter of
2015.
The seco
ond "Revolvin
ng" sale envissaged in the ""Revolving Pe
eriod" (between the issue date and Feb
bruary
2017) w
was carried out in January 2015
2
for a tottal of Euro 328.7 million. This was finan ced for Euro 230.1
million tthrough the isssue of ABS se
ecurities and for Euro 98.6
6 million through credit linnes provided by
b the
selling B
Banks.
In Febru
uary 2015, witth the amoun
nts collected oon securitised
d positions, th
he SPV repaidd ABS securitties to
Group banks for a tottal of Euro 15..1 million.
As menttioned previou
usly, the transsaction is connsidered as a type of multi-originator seecuritisation, which
w
involves the Banks as both originattors and invesstors.
Consequ
uently, as the risks and ben
nefits of the pportfolios havve not been trransferred, th ese loans havve not
been revversed out of the assets of the Group baanks.
The man
nagement of items in dispute has beeen assigned to
t the origina
ator banks thhemselves (ass subservicerss) coordinated
d by a Group company, Neettuno Gestione Crediti s.p.a. (as the ma ster servicer).
Efficientt management of non-perfforming loanss will enable the
t Group to take extraorddinary measures to
reduce the stocks of such
s
positionss, while also ooptimising the
e direct costs involved in m
managing them
m.
Originattor bank
Banca po
opolare dell'Emillia Romagna s.c..
Banco di Sardegna s.p.a.
Banca di Sassari s.p.a.
TOTAL
N umber
of
possitions
Nominal
value
(GBV)
(
Sale
prroceeds
U
Up-front
p urchase
price
De
eferred
purchase
price
1,916
3,,022.0
1,220.5
854.4
366.1
652
971.6
328.4
229.9
98.5
69
79.5
35.9
25.1
10.8
2,637
4,073.1
1,584.8
1,109.4
475.4
Securiss Real Estatee Fund
In 2013,, Sardaleasing
g s.p.a. made two
t separate contributionss of properties for a total oof Euro 15.2 million
m
to the Securis Fund managed
m
by Beni Stabili G
Gestioni S.G.R
R. s.p.a. These
e were mainlyy distressed assets
a
that became availablee because the users defaultted.
In additiion, in Januaryy 2014 the co
ompany obta ined a seat on the Fund's Advisory Boaard, which anaalyses
the mosst important aspects
a
of pro
operty managgement and makes
m
it posssible to enhannce the prope
erties'
value to the full.
On 30 Ju
une 2014, after approval by the Parent C
Company BPE
ER, a third contribution of 25 propertiess was
formalised (some of which
w
not yet available, buut legal actio
on has been brought for thheir recovery)) for a
value ap
ppraised by CB
B Richard Ellis of Euro 22 m
million, comp
pared with a book
b
value (neet of provisio
ons on
loans) off Euro 24.1 million, i.e. reallising a total l oss of Euro 2.1 million. The
e ratio betweeen the selling
g price
and the net book valu
ue is 91.4%.
However, in most casses, the expossures were baacked by guarrantees issued by Group bbanks and/or credit
consortia for a total of Euro 2.4 million; so frrom an operaating point off view, there were no neg
gative
effects o
on the incomee statement of Sardaleasingg s.p.a. at 30 June
J
2014.
26
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
A furrther contribu
ution (the fou
urth) to the SSecuris Fund of
o 45 propertties for a totaal of Euro 27..1 million
was formalised on
o 23 Decem
mber 2014. B
Based on ap
ppraisals carried out by PPatrigest s.p..a. as an
indep
pendent expeert, the net bo
ook value of the propertie
es was Euro 26.9
2
million. TThe ratio betw
ween the
sellin
ng price and the net book value
v
is 100.9 1%.
On the package of loans underrlying the prooperties sold, there were gu
uarantees issuued by banks or credit
conso
ortia for a tottal of more than Euro 27 thhousand.
As att 31 March 20
015, there havve not been aany further asssignments off properties deeriving from contracts
c
in deefault.
Workking togetherr with the Parent Companny, the Company is evaluating (based oon proposals from the
Securis Fund and other experie
enced operattors) a new diisposal of asssets to be com
mpleted by th
he end of
June 2015.
The ccarrying amou
unts of the UC
CITS units as aat 31 March 2015
2
are summarised below
w:
(in Euro)
Fina ncial assets
availlable for sale
Securis Real Estate
d I tranche
Fund
Securis Real Estate
d II tranche
Fund
Securis Real Estate
d III tranche
Fund
Securis Real Estate
d III tranche
Fund
Securis Real Estate
d IV tranche
Fund
Tota l equity
invesstments
classsified as AFS
No. of
shares/
quotas
held
Parr value at
31..03.2015
Fair value at
31
1.03.2015
(value at
31.12)
70,637.0
119
8,4405,801.0
7,945,731.9
7
68,700.0
0
68,670.6
102
7,0004,403.6
6,810,627.3
6
FV
V
67,500.0
0
67,561.9
309
20,8876,627.1
20
0,632,194.5
3
FV
V
67,561.9
9
67,561.9
18
1,2216,114.1
1,201,875.4
1
3
FV
V
66,800.0
0
66,770.9
407
27,1175,738.4
27
7,175,738.4
Type of
company
FV
level
Va l. Provisional Final par
typee
par value
value
e
Other
3
FV
V
70,582.0
0
Other
3
FV
V
Other
3
Other
Other
955
64,6678,684.2 63,,766,167.5
2.6 O
Other significant events
Decrree 3 of 24 January 201
15 converteed into Law
w 33 of 24 March
M
2015
Decree 3 (on Urgeent measures for the banki ng system and investmentt) was publish ed (in Official Gazette
no. 1
19 - General Series)
S
on 24 January 2015
5. This requires cooperativ
ve banks withh total assets in excess
to Eu
uro 8 billion (on a consolidated basis for the paren
nts of banking groups) too call an Extraaordinary
Shareeholders' Meeeting to auth
horise their trransformation
n into limited
d liability com
mpanies (s.p.aa.), failing
which the Bank off Italy would be
b entitled too ban new tran
nsactions purrsuant to art. 78 of Decree 385 of 1
Septeember 1993 (TUB), impose the measurres envisaged
d by Title IV, Chapter I, Seection I of the
e TUB, or
recom
mmend that the
t European
n Central Ban k withdraw the banking licence and th at the Ministtry of the
economy and finance put the bank into enfoorced liquidatiion.
Follo
owing the parrliamentary process follow
wed to converrt the above Decree, Law 33 was issue
ed on 24
Marcch 2015 requ
uiring compliaance within 1
18 months of the date th
hat the measuures come in
nto force,
which will be decid
ded by the Baank of Italy (thhe consultatio
on period is due to expire oon 9 May, following an
exten
nsion of 15 daays).
27
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
Banca po
opolare dell'E
Emilia Romagna s.c. falls w
within the sco
ope of the coo
operative bannks covered by
b this
law.
JESSICA
A Sardegna Urban Deveelopment Fuund
In 2012,, the Sardiniaa Region activvated a new ttool for comm
munity investtment, JESSIC
CA (Joint Euro
opean
Support for Sustainaable Develop
pment in Cityy Areas), to support initiatives for u rban regenerration
through the formula of the public--private partnnership. It is a tool, created
d in 2006 by a joint initiattive of
the Euro
opean Commiission and the EIB, in collaaboration witth the Counciil of Europe D
Development Bank
(CEB), designed to encourage invvestment in uurban areas by
b promoting the revolvingg use of Euro
opean
p
of urb
ban developm
ment, made avvailable to the
e Regions of EEU Member States,
S
Structural Funds for projects
to fosterr the creation of public-privvate partners hips.
The end
dowment of resources
r
com
mes from thee FERS fundss of the Sard
dinia Region relating to Axis
A
3
(Energy)) and Axis 5 (U
Urban Development).
As part o
of the JESSICA
A Sardinia initiative, two fuunds have been set up to enable
e
the traansfer of reso
ources
from thee EIB to the managing
m
entity: the Energgy Urban Devvelopment Fun
nd, with an e ndowment off Euro
33.1 million, and the Urban Develo
opment Fundd (UDF), also with
w an endow
wment of Eurro 33.1 million, the
latter maanaged by Baanco di Sardeg
gna s.p.a. in ppartnership with
w Sinloc (Sisstemi iniziativve locali) s.p.aa. The
two Fun
nds can invesst with equitty, loans andd/or guarante
ees in the sttructures thaat carry out urban
developm
ment works included in the
t regional P.I.S.U. (Piani Integrati di Sviluppo Urrbano - Integ
grated
Urban D
Development Plans) and P.A.E.S. (Piani di Azione pe
er l’Energia Sostenibile - SSustainable Energy
Action P
Plans).
With thee operating ag
greement signed in 2012 w
with the Euro
opean Investm
ment Bank (E IB) at the Reg
gional
Planningg Centre of the
t Sardinia Region, the EEIB provides the UDF a term
t
loan of Euro 33.1 million
m
(subject to increases)), qualified as "funding for a specific transaction" within the meanning of article 2447
decies off the Italian Civil
C Code.
The reso
ources acquirred get invessted on a revvolving basis in urban tra
ansformation projects (to
ourism
infrastru
ucture, local public
p
transpo
ort etc.), whichh can be asso
ociated with approximatelyy Euro 99 million of
co-financing from Ban
nco di Sardegna s.p.a. direcctly on selecte
ed projects.
Four loans have been arranged as at
a 31 March 2
2015:
 the first con
ntract was sig
gned on 18 D
December 201
13 with a public transportt company fo
or the
purchase of 12 state-of-the-art trolleyy buses, for a total of Euro
o 7.2 million, of which Eurro 6.8
was funded by
b the endow
wment of the JJESSICA Fund
d. An initial disbursement, eequal to 5% of
o the
overall amou
unt, was made
e in Decembe r 2014.
 the second contract was signed on 1
15 April 2014
4 with a gas distribution company, fo
or the
construction and operatio
on of a naturaal gas distribu
ution network
k, in the form of syndicated
d loan
for a total off Euro 17 million, of whichh Euro 7 milliion was funde
ed by JESSICA
A. As at 31 March,
M
further paym
ments totalling
g about Euro 5.7 million have
h
been made, of which Euro 1.3 million in
March 2015..
 the third loaan was signe
ed on 18 Deccember 2014
4 with an SPV
V whose shaareholder stru
ucture
includes a co
ompany that manages passsenger termiinals, a cruise
e ship compa ny and a com
mpany
that operates in travel and tourism, fo r the implementation and managementt of the new cruise
c
terminal in Cagliari.
C
The total is equaal to Euro 32
20 thousand, almost entirrely funded by
b the
JESSICA Fund
d (Euro 300 thousand).
t
Ann initial disburrsement of Eu
uro 120 thoussand, equal to
o 40%
of the overall amount, was made in Jan uary 2015.
28
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim

the fourtth loan contract relates too two separaate projects, both relatingg to the deve
elopment,
constructtion and subsequent mana gement of a system
s
for the
e transportatiion and distribution of
natural gas.
g The contrract was signned on 16 February 2015 with two vehhicle compan
nies, both
wholly or majority ow
wned by a cconsortium of
o several firms that carrries out consstruction,
infrastruccture works and
a installatioons of various kinds, both
h in Italy and abroad. The projects,
worth ab
bout Euro 45.4
4 million, willl be financed
d using JESSIC
CA funds totaalling Euro 12
2 million,
involving
g both equity participationn and debt fin
nance (two sy
yndicated loaans). The sharre capital
contributted using JESS
SICA resourcces, Euro 4 million, was su
ubscribed for on 16 February 2015
and paid into an acco
ount whose uuse is subord
dinated to th
he certificatioon of expenditures by
Fichtner, the technical advisor. TThe contractss for the two
o syndicatedd loans, with JESSICA
participattion of Euro 8 million, werre also signed on 16 February 2015, butt the amountss had not
been paid
d out by 31 March
M
2015.
The ffollowing tab
ble shows sim
mplified accouunts for the JESSICA Urban Developmeent Fund at 31
3 March
2015
5.
Balaance Sheet
(in Euro)
Asseets
60
0. Due from baanks
150
0. Other assetss
Total assetss
31
1.03.2015
31
1.12.2014
21,939,438
2
38,534
27,332,686
2
85,457
21,977,972
27,418,143
2
31
1.03.2015
31
1.12.2014
22,004,362
2
210,302
27,775,466
2
20,199
(in Euro)
Liab ilities and shareholders' equ
uity
10
0. Due to bankks
100
0. Other liabilities
200
0. Net profit (loss) for the periiod
Total liabilities and shareh
holders' equity
(236,692)
(377,522)
21,977,972
27,418,143
2
31
1.03.2015
31
1.03.2014
21,270
21,270
(257,962)
(257,962)
5,033
5,033
(122,760)
(122,760)
(236,692)
(117,727)
Incoome Statemeent
(in Euro)
Capttions
10
0.
30
0.
40
0.
50
0.
60
0.
Interest and
d similar income
Net interest income
Commission
n income
Commission
n expense
Net commisssion income
290
0. Net profit (loss)
(
for the pe
eriod
29
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
3. Scop
pe of consollidation of the
t BPER G
Group
3.1 Com
mposition of the Group as
a at 31 Mar ch 2015
The BPEER Group, reg
gistration no. 5387.6, has bbeen registerred pursuant to art. 64 of Legislative Decree
D
385 dateed 1 Septemb
ber 1993 since
e 7 August 19
992.
The follo
owing is a listt of the Bankks and Compaanies included
d in the scope of consoliddation at 31 March
M
2015, sp
plit between subsidiary
s
ban
nks and comppanies (conso
olidated line-b
by-line) and asssociate bankks and
companiies (consolidaated under the
e equity methhod).
Details are also provided of the percentage held by the
e Group11, witth further sppecific inform
mation
provided
d, where neceessary, by meaans of footnottes.
a) Com
mpanies conssolidated on
n a line-by-lline basis:
1) Banca popolaare dell'Emiliaa Romagna s.cc., based in Modena
M
(Paren
nt Company);
2) Banca Popolare dell’Emiliia Romagna ((Europe) International s.a., based in thhe Grand Ducchy of
Luxembourg (100%);
3) Banco di Sarrdegna s.p.a., based in Caagliari, which is held as fo
ollows: 51% oof ordinary shares,
60.724% of preference sh
hares and 46 .010% of savvings shares (without
(
votinng rights, listed on
the Italian Sttock Exchange
e), representinng 50.583% of
o total capita
al;
4) Banca di Sasssari s.p.a., bassed in Sassari (97.896%)12;
5) Cassa di Risp
parmio di Bra s.p.a., based iin Bra (Cuneo
o) (67%);
6) EMRO Finance Ireland lim
mited, based inn Dublin (Irelaand), Irish investment com pany (100%);;
7) Nadia s.p.a., based in Mod
dena, propertyy company (100%);
8) Modena Term
minal s.r.l., based in Campoogalliano (Mo
odena), the activities of wh ich are the sttorage
of goods, th
he storage an
nd ageing off cheeses and
d the cold sttorage of meeat and perisshable
products (10
00%);
9) BPER Servicees s.cons.p.a., based in Moddena, IT servicces consortium (100%)13;
10) Mutina s.r.l., based in Mod
dena, used as a vehicle for the securitisa
ation of receivvables (100%);
11) Nettuno Gesstione Crediti s.p.a., based in Bologna, provider of deb
bt recovery seervices (100%
%);
12) Emilia Romag
gna Factor s.p
p.a, based in B
Bologna, a facctoring compa
any (94.403%
%);
13) Optima s.p.aa. SIM, based in
i Modena, innvestment bro
oker (100%);
14) Sardaleasing
g s.p.a., based in Sassari, leaasing company (98.337%)144;
15) Numera s.p.aa., based in Sassari,
S
IT co mpany and subsidiary of Banco di Sarddegna s.p.a. which
w
holds 100% of share capittal;
16) Tholos s.p.a.., based in Saassari, properrty company and subsidia
ary of Banco di Sardegna s.p.a.
which holds 100% of sharre capital;
unless ot
otherwise specifi
fied, the percenta
tage shown refer
ers to the Parentt Company.
held by: Banco di Sardeggna s.p.a. (79.72
22%) and the Paarent Company (18.174%).
(
13
held by: tthe Parent Com
mpany (94.038%
%), Banco di Sarddegna s.p.a. (4.76
762%), Banca di Sassari s.p.a. (0.
0.400%), Optimaa s.p.a.
SIM (0.40
400%) and Sardaaleasing s.p.a. (0
0.400%).
14
held by: the Parent Com
mpany (51.404%
%) and Banco di SSardegna s.p.a. (46.933%).
(
11
12
30
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
1
17) Estense Covered
C
Bond
d s.r.l. based i n Conegliano
o (Treviso), a vehicle
v
for th e issue of Gu
uaranteed
Bank Bon
nds under art. 7 bis of Law 1
130/99 (60%
%);
1
18) BPER Tru
ust Company s.p.a., based in Modena, with
w the role of trustee forr trusts estab
blished by
customerrs, as well as providing
p
adv ice on trust matters
m
(100%
%).
In ad
ddition to thee above mem
mbers of the bbanking group, the scope of consolidattion also inclludes the
follow
wing direct and indirect su
ubsidiaries thhat are not me
embers of the
e banking grooup, since the
ey do not
contrribute directlyy to its activitties, but are fuully consolidated:
 Melior Vaalorizzazioni Immobili s.r.l. (100%);
Immobiliari ss.r.l. (100%);
 Italiana Valorizzazioni
V
 Adras s.p.a. (100%);
 Polo Cam
mpania s.r.l. (100%);
 Galilei Im
mmobiliare s.r..l. wholly ownned by Nadia s.p.a.
s
b) C
Companies consolidated
c
d under thee equity metthod
1
1)
2
2)
3
3)
4
4)
5
5)
6
6)
7
7)
8
8)
9
9)
1
10)
1
11)
1
12)
1
13)
1
14)
1
15)
1
16)
1
17)
15
16
17
Cassa di Risparmio
R
di Fossano
F
s.p.a.., based in Fosssano (Cuneo) (23.077%);
Cassa di Risparmio
R
di Saluzzo
S
s.p.a.,, based in Salu
uzzo (Cuneo) (31.019%);
Cassa di Risparmio
R
di Savigliano
S
s.pp.a., based in Savigliano
S
(Cu
uneo) (31.0066%);
Banca della Nuova Terrra s.p.a., baseed in Milan (30.369%);
Alba Leassing s.p.a., bassed in Milan ((33.498%);
CO.BA.PO
O. - Consorzio
o Banche Poppolari s.con., based
b
in Bolog
gna (23.587%
%);
Sofipo Fiduciaire s.a., based in Luggano, held byy Banca Popo
olare dell’Emi lia Romagna (Europe)
Internatio
onal s.a. which holds 30% oof share capittal;
CONFOR
RM - Consulen
nza Formazionne e Managem
ment s.c.a.r.l., based in Aveellino (49.410%)15;
Sintesi 20
000 s.r.l., base
ed in Milan (3
33.333%);
CAT prog
getto Impresa Modena s.c.rr.l., based in Modena
M
(20%));
Resiban s.p.a.,
s
based in
n Modena (20
0%);
Unione Fiduciaria s.p.aa., based in M ilan (24%);
Atriké s.p
p.a., based in Modena
M
(45%
%);
Sarda Facctoring s.p.a., based in Cag liari (21.484%
%)16;
Emil-Ro Service
S
s.r.l., based
b
in Bologgna (25%)17;
Brozzu e Cannas in liq
quidazione s.rr.l., based in Sassari,
S
held by
b Adras s.p.aa. which holds 50% of
the sharee capital;
Compagn
nia Finanziaria Olbia Prod uce s.r.l., bassed in Sassarii, held by Addras s.p.a. which holds
50% of th
he share capittal.
heldd by: the Parentt Company (46.4
430%) and Bancco di Sardegna s.p.a.
s
(2.980%).
heldd by: Banco di Sardegna
Sa
s.p.a. (1
13.401%) and th
the Parent Comp
pany (8.083%).
heldd by: the Parentt Company (16.6
667%) and Emilia
ia Romagna Facttor s.p.a. (8.333%
3%).
31
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
3.2 Chaanges in the scope
s
of con
nsolidation
Compa nies consollidated on a line-by-linee basis
The scop
pe of consolid
dation has nott changed sincce 31 Decemb
ber 2014.
The follo
owing chang
ges took place in the Pareent Companyy's interest in
n certain subbsidiary bankks and
compan ies during th
he period:
 Banca di Sasssari s.p.a.: fo
ormerly held 18.095% byy the Parent Company, itt rose to 18.174%
following varrious purchases from shareeholders;
 Emilia Romagna Factor s.p
p.a.: already hheld 86.081%
% by the Paren
nt Company, its interest ro
ose to
94.403% following purchaases from shaareholders.
32
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
4. Reesults of op
perations
4.1 B
Balance sheeet aggregates
The more importtant consolid
dated accounnting aggregaates and cap
ptions as at 31 March 2015
2
are
preseented below on a comparaative basis w ith the figure
es at 31 Dece
ember 2014, in thousandss of Euro,
indiccating the changes between
n periods in a bsolute and percentage
p
terms.
Asseets
(in thousan
nds of Euro)
Asseets
31
1.03.2015
10
0. Cash and cash
h equivalents
20
0. Financial asseets held for tradiing
30
0. Financial asseets designated at fair value
through profit and loss
0. Financial asseets available for sale
40
50
0. Financial asseets held to maturity
60
0. Due from ban
nks
70
0. Loans to custo
omers
80
0. Hedging derivvatives
10
00. Equity investtments
12
20. Property, plaant and equipme
ent
13
30. Intangible asssets
of which: goodw
will
14
40. Tax assets
a) current
b) deferred
b1) of which L. 214/2011
15
50. Non-current assets and disposal groups heldd for sale
16
60. Other assets
To
otal assets
31
1.12.2014
Change
%change
336,751
450,766
(114,015)
-25.29
1,079,617
1,033,286
46,331
4.48
109,422
110,249
(827)
-0.75
7,589,460
6,944,927
644,533
9.28
2,521,902
2,213,497
308,405
13.93
1,345,670
1,709,298
(363,628)
-21.27
43,865,112
43,919,681
(54,569)
-0.12
46,252
36,744
9,508
25.88
255,311
257,660
(2,349)
-0.91
1,021,064
1,028,931
(7,867)
-0.76
493,198
498,009
(4,811)
-0.97
380,416
380,416
-
-
1,281,670
1,361,322
(79,652)
-5.85
96,740
181,989
(85,249)
-46.84
1,184,930
1,179,333
5,597
0.47
1,022,979
1,018,156
4,823
0.47
2,817
2,817
-
-
656,629
1,085,733
(429,104)
-39.52
60,604,875
6
60,652,920
6
(48,045)
-0.08
33
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
Loans tto customerrs
(in thousands of
o Euro)
Caption s
31.03.2015
31.12.2014
Change
%
change
c
Current aaccounts
Mortgage loans
Repurchaase agreements
Debt seccurities
Other traansactions
Net loan
ns to customerss
6,456,248
6
24
4,949,972
52,600
382,414
12
2,023,878
43,,865,112
6,514,397
6
24
4,895,887
122,893
391,870
11
1,994,634
43,919,681
(58,149)
54,085
(70,293)
(9,456)
29,244
(54,569)
-0.89
0.22
-57.20
-2.41
0.24
-0.12
Loans to ccustomers, net of adjustments,, amount to Eurro 43,865.1 milllion (Euro 43,91
19.7 million as aat 31 Decemberr 2014)
and are sllightly down sincce the start of the
th year (-0.12%)
%).
Reductionns have affectedd current accou
unts, down by aabout Euro 58.1
1 million (-0.89%
%), repurchase agreements ("rrepos"),
down by about Euro 70
0.3 million (-57.20%) and debt
bt securities, dow
own by Euro 9.5
5 million (-2.411%), while there
re were
increases in mortgage loa
oans, up by Euro
o 54.1 million, annd in other lend
ding transaction
ns including, in pparticular, bulleet loans
(up by Eurro 71 million, +3
3.18%) and imp
port-export loans
ns, up by Euro 49
9 million (+6.13%
%).
The average interestt rate for the
e period, bassed on bank lending rates to customeers, was 3.27
7%, a
decreasee of around 32
2 bps comparred with the aaverage rate fo
or the first three months off 2014.
The spreead between lending and deposit
d
rates of banking re
elationships with
w customeers came to 2.33%,
substanttially unchang
ged compared
d with the sam
me period lastt year (2.32%)).
The overall gap betw
ween the averrage annual rrate of return on interest-bearing assetts and the avverage
annual ccost of interesst-bearing liab
bilities amounnts to 2.10% (2.17%
(
in the first quarter oof 2014).
34
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
The ffollowing review of doubtfu
ul loans makees reference to
o the new “un
nlikely to pay”” category, rather than
to watchlist and restructured loans (combiined to deterrmine T-1), ass required byy the new supervisory
regullations (in particular, Bankk of Italy Circcular no. 272 – 7th amendment dated 220 January 20
015) that
took effect from 1 January 2015.
(in thousan
nds of Euro)
Capttions
31..03.2015
31
1.12.2014
Change
% change
Grosss doubtful loan
ns
Non--performing loans
Unlikkely to pay loanss
Past due loans
Grosss performing loans
11,164,537
6,592,760
6
4,336,165
4
235,612
37,481,206
10,998,439
1
6,487,495
4,301,749
209,195
37,603,529
166,098
105,265
34,416
26,417
(122,323)
1.51
1.62
0.80
12.63
-0.33
Tota l gross exposure
48,645,743
48,601,968
4
43,775
0.09
Adju
ustments to dou
ubtful loans
Non--performing loans
Unlikkely to pay loanss
Past due loans
Adju
ustments to perrforming loans
4,574,948
3,724,759
3
832,252
17,937
205,683
4,471,566
3,668,419
786,259
16,888
210,721
103,382
56,340
45,993
1,049
(5,038)
2.31
1.54
5.85
6.21
-2.39
Tota l adjustments
4,780,631
4,682,287
98,344
2.10
Net doubtful loans
Non--performing loans
Unlikkely to pay loanss
Past due loans
Net performing loaans
6,589,589
2,868,001
2
3,503,913
3
217,675
37,275,523
6,526,873
2,819,076
3,515,490
192,307
37,392,808
62,716
48,925
(11,577)
25,368
(117,285)
0.96
1.74
-0.33
13.19
-0.31
Tota l net exposure
43,865,112
43,919,681
4
(54,569)
-0.12
The ad
adjustments thatt relate to perfo
orming loans tota
tal Euro 205.7 million
m
(Euro 210
0.7 million at 311 December 2014
14; -2.39%),
givingg a coverage rati
tio of 0.55% (0.5
56% at 31 Decem
ember 2014).
Adjusstments to doubbtful loans amou
unt to Euro 4,5774.9 million (Eurro 4,471.6 millio
on at 31 Decem
mber 2014; +2.3
31%) with a
covera
rage ratio of 40.98% (40.66% at
a 31 Decemberr 2014). The tota
tal coverage ratio
io is 9.83% versu
sus 9.63% at 31
1 December
2014.
4. If we take intoo account the diirect write-downns of non-perfor
orming loans invo
volved in bankruuptcy proceeding
ngs for Euro
1,305
5.6 million (Euro
ro 1,318.4 millio
ion at 31 Decem
ember 2014), th
he coverage rattio increases too 12.18% (12.0
02 % at 31
Decem
mber 2014). The
he total actual vaalue of the claim
m for non-perfor
orming loans com
mes to Euro 7,89
898.4 million (Eu
uro 7,805.9
millioon at 31 Decembber 2014) and the
t effective cov
overage ratio com
omes to 63.69%
% (63.89% at 311 December 201
14). Making
the saame consideratio
ions, the effectivve coverage of ddoubtful loans amounts
a
to 47.1
16% (47.01% att 31 December 2014).
2
(in thousands of
o Euro)
Loan
ns to customers
31.003.2015
31.12.2014
%
%
%
gro
oss
net
co
overage
Net
channge change
ratio
Gros s
Net
Gross
37,587,7000
34,172,124
37,618,793
34
4,276,875
-0..08
-0.31
9.09
237,6411
237,581
211,885
211,825
12..16
12.16
0.03
3. Ban
nca di Sassari s.p.aa.
1,410,7400
1,287,360
1,391,928
1,270,186
1..35
1.35
8.75
4. Ban
nco di Sardegna s..p.a.
7,798,6755
6,835,204
7,840,175
6,890,772
-0..53
-0.81
12.35
5. Casssa di Risparmio di
d Bra s.p.a.
1,173,1800
1,068,307
1,154,577
1,054,484
1..61
1.31
8.94
Tottal banks
Other companies and consolidation
adjjustments
48,207,9366 43,600,576 48,217,358 43
3,704,142
-0..02
-0.24
9.56
215,539
13..83
22.73
39.58
Tottal
48,645,7433 43,865,112 48,601,968 43
3,919,681
0..09
-0.12
9.83
1. Ban
nca popolare dell'Emilia Romagna s.c.
2. Bpeer (Europe) Intern
national s.a.
437,8077
264,536
384,610
35
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
The doubtful loans (non-performin
ng loans, unlikkely to pay loaans and loans past due by m
more than 90 days)
indicated
d here relate solely to thosse exposures associated with
w the “Loan
ns to customeers” portfolio. Their
net amount of Euro 6,589.6
6
million
n (+0.96%) iss equal to 15.0
02% of total net
n loans to ccustomers (14
4.86%
as at 31 December 2014), whereaas, on a grosss basis, it is eq
qual to 22.95
5% (22.63% aas at 31 Dece
ember
2014).
More sp
pecifically, nett non-perform
ming loans am
mount to Euro
o 2,868 millio
on (+1.74%), nnet unlikely to
t pay
loans tottal Euro 3,503
3.9 million (-0
0.33%) and neet past due am
mounts total Euro
E
217.7 m illion (+13.19
9%).
The coveerage ratio is satisfactory and suitable ffor the portfo
olio's level of risk: the coveerage ratio off total
doubtfull loans comess to 40.98% ve
ersus 40.66%
% at the end of 2014, an inccrease of 32 bbps.
If we taake into acccount the direct write-doowns of non
n-performing loans involvved in bankrruptcy
proceedings for Euro 1,305.6 millio
on (Euro 1,31
18.4 million att 31 Decembe
er 2014), the effective covverage
ratio com
mes to 47.16%
% (47.01% ass at 31 Decem
mber 2014).
(in thousands of
o Euro)
Doubtfu
ul loans
1. Banca p
popolare dell'Emiliia Romagna s.c.
2. Bper (Eu
urope) Internation
nal s.a.
3. Banca d
di Sassari s.p.a.
4. Banco d
di Sardegna s.p.a.
5. Cassa d
di Risparmio di Braa s.p.a.
31.003.2015
Grosss
Net
Gross
Net
%
grooss
changge
7,730,2255
4,457,173
7,633,373
4,,435,209
1.227
0.50
42.34
600
-
60
-
-
n.s.
100.00
262,5655
146,814
261,922
148,212
0.225
-0.94
44.08
1,170,414
2,065,181
1,,149,145
1.885
1.85
44.36
268,3944
167,217
252,360
156,099
6.335
7.12
37.70
5,941,618 10,212,896
5,888,665
1.449
0.90
42.67
10,364,7133
Total
11,164,5377
Adjusteed total
%
%
net co
overage
change
ratio
2,103,4699
Total b anks
Other ccompanies and con
nsolidation
adjustm
ments
Direct w
write-downs of no
on-performing loan
ns
31.12.201
14
799,8244
1,305,6455
12,470,1822
785,543
638,208
1.882
1.53
18.99
6,589,589 10,998,439
647,971
6,526,873
1.551
0.96
40.98
1,318,437
-
-0.997
n.s.
100.00
6,589,589 12,316,876
6,526,873
1.224
0.96
47.16
-
Note thatt Cassa di Rispaarmio di Bra s.p.
p.a., unlike the re
rest of the Grou
up, does not acccrue interest onn arrears for ind
dividual
debt posit
itions, proceedin
ng in fact to theeir total direct w
write-down. If we take this figurre at 31 March 22015, which rellates to
outstandiing positions off Euro 10,354 tho
housand, the rest
stated level of co
overage comes to
t 40.01%, com
mpared with 37.7
70% as
shown in tthe table.
The non
n-performing loans shown here relate ssolely to those exposures associated w
with the "Loaans to
customeers" portfolio. Their net amount of Euro 2,868 million
n (+1.74%) co
omes to 6.54%
% of total net loans
to customers (6.42% at 31 December 2014), whhereas, on a gross
g
basis, th
he ratio of nonn-performing loans
to total ““Loans to cusstomers” come
es to 13.55% (13.35% at 31
3 December 2014).
The covverage of no
on-performing
g loans is 56
6.50%, substtantially stab
ble comparedd with 56.55
5% in
December 2014.
o the direct write-downss made to no
on-performing
g loans involvved in bankrruptcy
If we taake account of
procedures for Euro 1,305.6
1
million (Euro 1,318
8.4 million at 31 Decemberr 2014), the tootal actual value of
the claim
m for non-perrforming loans comes to Euuro 7,898.4 million
m
(Euro 7,805.9
7
millioon at 31 Dece
ember
2014) an
nd the effectivve coverage ratio
r
is 63.69%
% (63.89% att 31 Decembe
er 2014).
36
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
(in thousan
nds of Euro)
Non -performing lo
oans
1. Banca popolare delll'Emilia Romagna
a
s.cc.
2. Bp
per (Europe) Interrnational s.a.
31.003.2015
31.12.201
14
Grosss
Net
Gross
Net
%
grross
chaange
4,414,6855
1,813,608
4,387,776
1,8
814,821
00.61
%
%
nett coverage
change
e
ratio
-0.07
7
58.92
-
-
-
-
-
-
-
170,4777
70,897
167,870
70,195
11.55
1.00
0
58.41
1,440,1733
619,558
1,391,093
588,679
5
33.53
5.25
5
56.98
118,2355
41,851
113,689
40,085
44.00
4.41
1
64.60
To tal banks
Otther companies and consolidation
n
adjjustments
6,143,5700 2,545,914 6,060,428 2,513,780
11.37
1.28
8
58.56
305,296
3
55.18
5.50
0
28.30
To tal
Dirrect write-downss of non-performiing
loaans
6,592,7600 2,868,001 6,487,495 2,819,076
11.62
1.74
4
56.50
1,305,6455
-
-00.97
n.s.
100.00
Ad
djusted total
7,898,4055 2,868,001 7,805,932 2,819,076
11.18
1.74
4
63.69
3. Banca di Sassari s.p
p.a.
4. Banco di Sardegna s.p.a.
5. Cassa di Risparmio di Bra s.p.a.
449,1900
322,087
-
427,067
1,318,437
With reference to Cassa
Ca
di Risparm
mio di Bra s.p.a. and the comm
ment on doubtfu
ul loans made in the previous point with
refereence to the acccounting treatm
ment of interestt on arrears, no
ote that at 31 March
M
2015 ouutstanding posiitions were
writteen down directlyy by Euro 10,354
4 thousand; thee restated coveraage ratio of non-performing loaans comes to 67
7.45%.
The unlikely to pay loans show
wn here rela te solely to those
t
exposu
ures associateed with the "Loans to
custoomers" portfoolio. The net amount of EEuro 3,503.9 million (-0.33
3%) represennts 7.99% of total net
loanss to customerrs (8.00% at 31
3 Decemberr 2014), where
eas, on a grosss basis, the rratio of unlike
ely to pay
loanss to total “Loaans to custom
mers” is 8.91%
% (8.85% at 31
1 December 2014).
2
The ccoverage of unlikely
u
to paay loans has iincreased since the end of 2014 to 199.19%, compaared with
18.28
8% at 31 Deccember 2014.
(in thousan
nds of Euro)
Unli kely to pay loaans
1. Banca popolare delll'Emilia Romagna
a s.c.
2. Bp
per (Europe) Interrnational s.a.
3. Banca di Sassari s.p
p.a.
31.03.2015
31.12.2014
G
Gross
Net
Gross
Net
%
gross
chhange
%
% nett
coverage
change
e
ratio
3,1688,953
2,509,28
88
3,106,907
2,494,147
2.00
0.61
1
20.82
60
-
60
-
-
-
100.00
811,724
66,43
30
85,109
69,733
-3.98
-4.74
4
18.71
4. Banco di Sardegna s.p.a.
6188,857
509,96
61
645,589
534,199
-4.14
-4.54
4
17.60
5. Cassa di Risparmio di Bra s.p.a.
1388,246
114,08
88
124,560
102,934
10.99
10.84
4
17.47
To tal banks
Otther companies and consolidation
n
adjjustments
4,0077,840 3,199,76
67 3,962,225 3,201,013
1.15
-0.04
4
20.16
314,477
-3.30
-3.29
9
7.36
To tal
4,3366,165 3,503,91
13 4,301,749 3,515,490
0.80
-0.33
3
19.19
3288,325
304,14
46
339,524
37
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
The pastt due loans sh
hown here relate solely to tthose exposures associated
d with the "Lo
Loans to custo
omers"
portfolio
o. The net am
mount of Euro 217.7 mil lion (+13.19%
%) representts 0.50% of total net loaans to
customeers (0.44% at 31 Decembe
er 2014), wheereas, on a gro
oss basis, the ratio of pastt due loans to
o total
“Loans tto customers” is 0.48% (0..43% at 31 D
December 201
14). The coverage of past ddue loans is 7.61%
7
(8.07% aat 31 Decemb
ber 2014).
(in thousands of
o Euro)
Past duee loans
31. 03.2015
31.12.201
14
Grosss
Net
Gross
Net
%
grosss
changge
146,5887
134,277
138,690
126,241
1
5.669
6.37
-
-
-
-
-
-
-
3. Banca d
di Sassari s.p.a.
10,3664
9,487
8,943
8,284
15.889
14.52
8.46
4. Banco d
di Sardegna s.p.a.
44,4339
40,895
28,499
26,267
55.993
55.69
7.97
1. Banca p
popolare dell'Emiliia Romagna s.c.
2. Bper (Eu
urope) Internation
nal s.a.
5. Cassa d
di Risparmio di Braa s.p.a.
%
%
net co
overage
change
ratio
8.40
11,9113
11,278
14,111
13,080
-15.558
-13.78
5.33
Total b anks
Other ccompanies and con
nsolidation
adjustm
ments
213,3003
195,937
190,243
173,872
1
12.112
12.69
8.14
22,3009
21,738
18,952
18,435
17.771
17.92
2.56
Total
235,6112
217,675
209,195
192,307
1
12.663
13.19
7.61
The table and graph below
b
show the amount off loan disburssements to re
esident non-fiinancial comp
panies
in the firrst quarter, broken down by
b the debtorrs' industry se
ector accordin
ng to the Bannk of Italy's ATECO
classificaation.
38
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
(in thousan
nds of Euro)
Dist ribution of loaans to residentt non-financiaal businesses
31.03.2
2015
31.12..2014
%
%
change
A. Aggriculture, forestry and fishing
B. Mining and quarryying
C. Manufacturing
D. Prrovision of electtricity, gas, steam
m and air-condittioning
E. Pro
ovision of waterr, sewerage, wasste managemennt and
rehabilitation
F. Co
onstruction
G. W
Wholesaling and retailing, car and motorcycle reepairs
H. Trransport and sto
orage
I. Ho
otel and restauraants
J. Info
formation and co
ommunication
K. Fin
nance and insurrance
L. Reeal estate
M. Professional, scieentific and techn
nical activities
N. Reentals, travel agencies, businesss support servicces
O. Pu
ublic administraation and defencce, compulsory ssocial security
1,229
9,827
59
9,275
7,021
1,005
1,2338,511
660,066
6,9336,487
618
8,773
6661,235
2.80
0
0.14
4
16.01
1.41
-0.70
-1.32
1.22
-6.42
291
1,122
4,813
3,933
2999,892
4,8669,579
4,985
5,369
957
7,293
4,9002,495
9558,033
1,675
5,546
330
0,318
1,6442,828
3336,830
423
3,257
3,259
9,152
3777,878
3,4006,966
936
6,183
612
2,399
17
7,350
29
9,428
9441,473
5990,251
117,330
227,646
0.66
6
10.97
7
11.37
7
2.18
8
3.82
2
0.75
5
0.97
7
7.43
3
2.13
3
1.40
0
0.04
4
-2.92
-1.14
1.69
-0.08
1.99
-1.93
12.01
-4.34
-0.56
3.75
0.12
451
1,896
4449,271
0.07
7
1.03
3
6.45
0.58
188
8,334
221
1,473
2116,905
2226,773
0.43
3
0.50
0
-13.17
-2.34
P. Ed
ducation
Q. Health and welfare
R. Arrts, sport and en
ntertainment
S. Otther services
U. Exxtraterritorial orrganisations and
d bodies
68
8,984
-
0.16
6
n.s.
28,190,917
28,1600,449
64.27
7
0.11
134
4,286
1228,581
0.30
0
4.44
Tota l loans to non-financial businesses
28,325,203
28,2899,030
64.57
7
0.13
Indivviduals and otheer not included above
a
Finan
ncial businessess
Securities
Goveernments and otther public entitties
Insurrance companiees
10,396
6,368
2,774
4,998
382
2,414
1,965
5,701
20
0,428
10,5229,182
2,7337,444
3991,870
1,9661,973
110,182
23.70
0
6.33
3
0.87
7
4.48
8
0.05
5
-1.26
1.37
-2.41
0.19
100.63
Tota l loans
43,865,112
43,9199,681
100.00
0
-0.12
Tota l loans to resid
dent non-financcial businesses
Loan
ns to non-resident, non-financial businesses
Consiidering total loaans made, the seectors with the llargest increasees were manufaccturing, up by Eu
Euro 84.5 million
n (+1.22%),
and co
commerce, up byy Euro 82.9 millilion (+1.69%), w
while the sectorss with the largess reductions weere property, dow
wn by Euro
147.8
8 million (-4.34%
%), and construcction, down by EEuro 55.6 million
n (-1.14%).
39
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
Financiial assets an
nd equity in
nvestments
(in thousands of
o Euro)
Caption s
31.03
3.2015
31.12.2014
Change
% change
c
1,079,617
1,0
033,286
46,331
4.48
265,941
2
243,468
2
22,473
9.23
Financiall assets designatted at fair value through profit and
loss
Financiall assets availablee for sale
109,422
7,589,460
110,249
1
6,9
944,927
(827)
644,533
-0.75
9.28
Financiall assets held to maturity
m
2,521,902
2,2
213,497
308,405
13.93
11,30
00,401
10,3
301,959
998,442
9.69
Financiall assets held for trading
- of w
which: derivativees
Totaal financial asseets
Financial aassets amount to
t Euro 11,300.4
4 million, includding Euro 10,308
08.2 million of de
ebt securities (991.22% of the to
otal): of
these, Eurro 6,972.4 millio
ion relate to sovvereign States aand Central Ban
nks (+3.44% com
mpared with 311 December 201
14) and
Euro 2,69
97.1 million to Banks
B
(+21.31%)
%).
There hass been a significcant increase in “Financial asset
ets available for sale”, up by Eurro 644.5 millionn (+9.28%), prin
ncipally
due to thee purchase of goovernment and banking
b
debt seecurities, and in “Financial assetts held to maturrity”, up by Euro
o 308.4
million (+
+13.93%), in ordder to support the
t level of nett interest incom
me and reduce its
it exposure to rate fluctuation
ns, in a
foreseeabble scenario of very
ve low risk-freee rates still for aan extended perriod.
For their characteristics,
s, most of the securities in po
portfolio, being highly liquid, are
a eligible forr use as collateeral for
refinancinng transactions on
o the institutio
onal market or w
with the Europeaan Central Bankk.
Equities ccome to Euro 447.2
4
million (3
3.96% of the tootal), inclusive of Euro 374.5 million of stabl
ble equity invest
stments
classifiedd in the AFS portf
tfolio; equities held
he for trading aare totally margi
ginal.
"Financiall assets held forr trading" includ
de financial derivvatives of Euro 265.9
2
million (+
+9.23%) made uup of Euro 42.3 million
(-23.67%)
%) of derivatives linked to debt securities
s
classiified in "Financiial assets design
nated at fair vallue through pro
ofit and
loss" and in "Financial liabbilities designatted at fair valuee through profit and
a loss" (fair vaalue option) andd forward transaactions
in foreignn currencies (traaded with custo
omers and/or uused in managin
ng the foreign exchange
e
positition), interest raate and
foreign exxchange derivat
atives intermedia
iated with custoomers, derivativves related to securitisations
s
aand other operrational
hedging dderivatives. At 31
3 March 2015 the
t Group has nnot entered into
o any of the "lon
ng-term structur
ured repo transaactions"
mentioneed in the documeent issued jointly
ly by the Bank oof Italy, CONSOB
OB and IVASS on 8 March 2013.
Against thhe "Financial ass
ssets available fo
or sale" of Euro 7,589.5 million
n, there are posiitive net valuatio
ion reserves for a total
of Euro 2
272.6 million, neet of the related
d tax effect, as a result of the sum of positive
e reserves relatiting to debt seccurities,
equities aand UCITS of Euuro 278.7 millio
on and negativee reserves of Eu
uro 6.1 million; the net reservee only for goverrnment
bonds was
as a positive Euroo 147.6 million (+50.85%
(
comppared with 31 December
D
2014).
).
The portfo
folio of “Financia
ial assets held to maturity” alsoo includes unrea
ealised gains tota
talling Euro 242.
2.7 million (Euro
o 184.2
million att 31 December 2014,
2
+ 31.75%)
%).
40
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
(in thousan
nds of Euro)
Fina ncial assets
1. Baanca popolare deell'Emilia Romag
gna s.c.
2. Bp
per (Europe) Inteernational s.a.
3. Baanca di Sassari s.p.a.
4. Baanco di Sardegnaa s.p.a.
5. Caassa di Risparmio di Bra s.p.a.
Tota l banks
Otheer companies an
nd consolidation
n adjustments
Tota l
31.0
03.2015
31
1.12.2014
Change
% change
9,764,188
9
50,528
91
999,251
196,225
8,811,024
50,371
89
1,028,597
133,660
953,164
157
2
(29,346)
62,565
10.82
0.31
2.25
-2.85
46.81
11,,010,283
10,023,741
986,542
9.84
290,118
278,218
11,900
4.28
11,,300,401
10,301,959
998,442
9.69
(in thousan
nds of Euro)
Capttions
Equitty investments
31
1.03.2015
31.12.2014
3
Change
% change
255,311
257,660
(2,349)
-0.91
This caption relatess to significantt equity invest
stments (i.e. no
on-Group comp
panies subject to significant influence,
repres
esented by holdiings of 20% or more
m
of their shhare capital);theese interests are
e measured usinng the equity method.
m
The
portioon relating to gooodwill comes to
o Euro 21.4 milllion, the same ass at 31 Decembe
ber 2014.
Fixeed assets
(in thousan
nds of Euro)
Capttions
31.03.2015
31.12.2014
Change
% change
Intan
ngible assets
493,198
498,009
(4,811)
-0.97
of wh
which: goodwill
380
0,416
380,416
-
-
41
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
Intangib
ble assets inclu
ude amounts of goodwill foor a total of Euro 380.4 milllion, as follow
ws:
Goodwi ll
31.03.2015
31.12
2.2014
380,416
38
80,416
1.1 Bankks
91,734
91,734
9
- Banco d
di Sardegna s.p.aa.
82,256
82,256
- Banca d
di Sassari s.p.a.
4,904
4,904
- Cassa di Risparmio di Bra
B s.p.a.
4,574
4,574
280,236
28
80,236
1. Group
p companies
1.2 Pare nt Company BP
PER
- Purchasse of UNICREDITT branches
83,650
83,650
104,685
104,685
- Banca C
CRV - Cassa di Risparmio di Vign
nola s.p.a.
2,272
2,272
- Banca P
Popolare di Lancciano e Sulmona s.p.a.
1,655
1,655
- Banca P
Popolare di Aprilia s.p.a.
10,151
10,151
- CARISPAQ - Cassa di Risparmio della Provincia
P
dell'Aqquila s.p.a.
13,477
13,477
6,876
6,876
- Meliorb
banca s.p.a.
- Banca P
Popolare di Raveenna s.p.a.
- Banca P
Popolare del Mezzogiorno s.p.a.
6,124
6,124
51,346
51,346
1.3 Otheer companies
8,446
8,446
- Sardaleaasing s.p.a.
1,657
1,657
- Emilia R
Romagna Factorr s.p.a.
6,769
6,769
- Banca d
della Campania s.p.a.
s
- Estensee Covered Bond s.r.l.
2
2
18
18
380,416
38
80,416
- Adras s..p.a.
Total
(in thousands of
o Euro)
Caption s
Propertyy, plant and equipment
includingg owned land an
nd properties
31.03.2015
31.12
2.2014
Change
% change
c
1,02
21,064
1,0
028,931
(7,867)
-0.76
93
39,635
943,915
9
(4,280)
-0.45
31.03
3.2015
31.12.2014
C
Change
% change
c
1,345,670
1,7
709,298
(3663,628)
-21.27
763,716
7
1,110,054
(3446,338)
-31.20
-
31,735
(3
(31,735)
-100.00
Interbaank and liquuidity positiion
(in thousands of
o Euro)
Net inteerbank position
A. Due f rom banks
1. Currrent accounts and deposits
2. Reveerse repurchasee agreements
3. Deb
bt securities
4. Other
B. Due to
o banks
Total (A--B)
42
77,040
139,923
(6
(62,883)
-44.94
504,914
5
427,586
4
77,328
18.08
6,849,585
6,4
479,558
3370,027
5.71
(5,50
03,915)
(4,770,260)
(7333,655)
15.38
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
The ffollowing tab
ble gives detaails of such ooperations with the ECB. The net red uction in outtstanding
princcipal since 31
1 December 2014,
2
Euro 6
65 million, waas due to the
e repayment of Euro 65 million
m
in
relation to the LTTRO operation
n due in Januuary 2015 and
d of Euro 1,310 million inn relation to the
t LTRO
operaation due in February
F
2015, as offset bby the subscription in February 2015 off Euro 1,010 million
m
to
the LLTRO operatio
on due in Maay 2015, and in March of Euro 300 million to the M
MRO operatio
on due in
April 2015.
(in millio
ons of Euro)
Refi nancing transaactions with th
he European C
Central Bank
Capital
1. Maain Refinancing Operation (MR
RO) March 20155
2. Lo
ong-Term Refinaancing Operation (LTRO) Februaary 2015
3. Taargeted Long Terrm Refinancing Operation (T-LTTRO) September 2014
300
1,010
2,000
Tota l
3,310
Maturity
M
Apr-15
May-15
Sept-18
At 31 March 201
15, the Centrral Treasury held significaant resourcess relating to securities eligible for
refinancing at thee European Central
C
Bank, of an overall amount, ne
et of margin calls, of Euro
o 11,632
millio
on (Euro 11,5
508 million at 31 Decembeer 2014). The available portion amountss to Euro 4,42
27 million
(Euro
o 4,633 millio
on at 31 Decem
mber 2014).
Coveered bonds wiith a nominal value of Euroo 300 million,, issued by the Bank and asssigned to the
e pooling
accou
unt, were repaid early in Jaanuary 2015.
(in millio
ons of Euro)
Couunterbalancingg Capacity
Nominal
N
value
Guarantee
G
value
Eligi ble securities and
a loans
1 Seccurities as collatteral for own and third-party
commitments
2 Seccurities subject to funding repurchase agreemeents
3 Seccurities and loan
ns not transferre
ed to the Poolinng
Acccount
4 Seccurities and loan
ns transferred to
o the Pooling Acccount
RRestricted
portion
11,632
7,205
456
3,437
456
3,437
2,789
4,950
3,312
Available
A
portion
4,427
2,789
1,638
off w
which:
Ow
wn debt guaranteeed by the Italian
n Government
Ow
wn securitisation
ns
Guuaranteed Bank Bonds
B
issued by the
t Bank
Coollaterized Bank Assets
A
(A.BA.CO.))
-
-
1,539
1,310
-
-
1,581
872
43
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
Liabilitties and shaareholders’ equity
e
(in thousands of
o Euro)
Liabilitiees and shareho
olders' equity
10. Due to banks
20. Due to customers
30. Debtt securities in isssue
40. Finan
ncial liabilities held
h for trading
50. Finan
ncial liabilities designated
d
at faiir value throughh
profiit and loss
60. Hedgging derivatives
80. Tax liabilities
urrent
a) cu
b) deeferred
100.Otheer liabilities
110. Provvision for termin
nation indemnitties
120. Provvisions for risks and charges
a) peensions and sim
milar commitmen
nts
b) otther provisions
140. Valu
uation reserves
170. Reseerves
180. Sharre premium reseerve
190. Sharre capital
200. Treaasury shares
210. Minority interests
220. Proffit (loss) for the period
Total l iabilities and shareholders'
s
eq
quity
44
31.03
3.2015
31.12
2.2014
C
Change
%cchange
6,8
849,585
6,4
479,558
3370,027
5.71
33,1
132,463
33,9
964,259
(8331,796)
-2.45
11,0
074,649
10,5
518,262
5556,387
5.29
295,376
2
243,210
2
52,166
21.45
1,0
087,772
1,7
700,614
(6112,842)
-36.04
18,718
12,986
5,732
44.14
148,368
1
118,794
1
29,574
24.90
6,698
5,263
1,435
27.27
141,670
113,531
28,139
24.79
1,8
802,891
1,5
527,412
2275,479
18.04
215,834
2
221,919
2
(6,085)
-2.74
366,990
3
355,775
3
11,215
3.15
146,205
145,078
1,127
0.78
220,785
210,697
10,088
4.79
243,314
2
186,840
1
56,474
30.23
2,3
314,835
2,3
301,760
13,075
0.57
930,073
9
930,077
9
(4)
-
1,4
443,925
1,4
443,925
-
-
(7,256)
(7,259)
3
-0.04
642,141
6
639,991
6
2,150
0.34
45,197
14,797
30,400
205.45
60,6
604,875
60,6
652,920
(448,045)
-0.08
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
Borrrowing
(in thousan
nds of Euro)
Capttions
31
1.03.2015
31.12.2014
3
Change
% change
26,847,417
2
2,525,022
1,312,688
2,447,336
8,354,336
27,487,204
2,968,817
1,062,767
2,445,471
8,319,682
(639,787)
(443,795)
249,921
1,865
34,654
-2.33
-14.95
23.52
0.08
0.42
- sub
bscribed by institutional customers
2,010,431
1,248,417
762,014
61.04
- sub
bscribed by ordinary customers
6,343,905
7,071,265
(727,360)
-10.29
3,808,085
3,899,194
(91,109)
-2.34
Dire ct customer deeposits
45,294,884
46,183,135
4
(888,251)
-1.92
Indirrect deposits (offf-balance sheet figure)
30,130,167
3
28,197,815
1,932,352
6.85
- of w
which managed
14,314,683
13,004,015
1,310,668
10.08
- of w
which administereed
15,815,484
15,193,800
621,684
4.09
75,425,051
74,380,950
1,044,101
1.40
6,849,585
6,479,558
370,027
5.71
82,274,636
80,860,508
1,414,128
1.75
Curreent accounts an
nd demand depo
osits
Restrricted deposits
Repu
urchase agreemeents
Otheer short-term loaans
Bond
ds
Certiificates of depossit
Custtomer funds un
nder manageme
ent
Bankk borrowing
Fund
ds under admin
nistration or maanagement
Direct
ct customer dep
posits of Euro 45,294.9
4
million
on have decreassed by 1.92% since
s
31 Decem
mber 2014, maiinly due to
currennt accounts, dow
own by Euro 639
9.8 million (-2.333%), and to resstricted deposits
ts, down by Euroo 443.8 million (-14.95%),
whilee repurchase agre
reements are up
p by Euro 249.9 m
million (+23.52%
2%).
Indireect customer dep
eposits, marked to
t market, comee to Euro 30,130
0.2 million, up on
o 31 Decemberr 2014 (+6.85%)
%).
The to
total nominal val
alue of indirect deposits
d
of Euroo 21,629 million
n has increased by
b 2.12% sincee 31 December 2014.
2
Total
fundss administered or managed byy the Group, inncluding depossits from banks (Euro 6,849.66 million) amount to Euro
82,27
74.6 million, an increase
i
of 1.75
5% compared wi
with 31 Decembeer 2014.
The aaverage cost of funding from
f
customeers incurred by Group banks during thhe period waas 0.94%,
which is down by about
a
33 basiis points with respect to th
he first quarter of last year (1.27%).
Again
nst total interrest-bearing liabilities, the cost incurred
d came to 0.83
3%, a decreasse of 29 bps compared
c
with the same perriod last year.
(in thousan
nds of Euro)
Direect deposits
1. Baanca popolare deell'Emilia Romag
gna s.c.
2. Bp
per (Europe) Inteernational s.a.
3. Baanca di Sassari s.p.a.
4. Baanco di Sardegnaa s.p.a.
5. Caassa di Risparmio di Bra s.p.a.
To
otal banks
Otther companies and consolidation adjustmentss
To
otal
31
1.03.2015
31.12.2014
3
Change
% change
33,495,123
3
523,242
1,349,677
9,315,954
1,068,382
34,347,737
578,532
1,407,685
9,239,256
1,077,613
(852,614)
(55,290)
(58,008)
76,698
(9,231)
-2.48
-9.56
-4.12
0.83
-0.86
45,752,378
46,650,823
4
(898,445)
-1.93
(457,494)
(467,688)
10,194
-2.18
45,294,884
46,183,135
4
(888,251)
-1.92
45
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
Direct deeposits includ
de subordinated liabilities:
(in thousands of
o Euro)
Caption s
31.03
3.2015
31.12.2014
Change
% change
c
Convertible subordinateed liabilities
Non-convertible subordiinated liabilitiess
926,467
1,2
291,794
((365,327)
n.s.
-28.28
Total sub
bordinated liab
bilities
92
26,467
1,2
291,794
(3365,327)
-28.28
The reducction reflects thhe payment of instalments
i
on lloans issued byy the Parent Com
mpany that felll due on 31 Deccember
2014 andd were settled by ICBPI on 2 Jan
nuary 2015, as w
well as partial reedemption (nom
minal value of Euuro 140 million)) of the
BPER loann 4.75% 2011-2
2017.
(in thousands of
o Euro)
Indirectt deposits
1. Banca popolare dell'Em
milia Romagna s.c.
s
31.03
3.2015
31.12.2014
Change
% change
c
27,05
54,294
25,2
229,874
11,824,420
7.23
2. Bper (EEurope) International s.a.
3. Banca di Sassari s.p.a.
52
24,842
37
78,589
515,956
5
357,795
3
8,886
20,794
1.72
5.81
4. Banco di Sardegna s.p
p.a.
5. Cassa di Risparmio di Bra s.p.a.
3,02
23,263
49
95,728
2,9
914,531
488,347
4
108,732
7,381
3.73
1.51
6.68
Total b
banks
31,47
76,716
29,5
506,503
1,,970,213
Other companies and consolidation adjustments
a
(1,34
46,549)
(1,308,688)
(37,861)
2.89
Total
30,13
30,167
28,1
197,815
1,,932,352
6.85
Indirectt deposits do
o not includ
de the placeement of inssurance policcies, which has increase
ed by
12.18% since 31 Deccember 2014
4, due to thee life insurance business.
(in thousands of
o Euro)
Bancasssurance
31.03
3.2015
31.12.2014
Change
% change
c
Insurancce policy portfo
olio
3,41
19,616
3,0
048,358
371,258
12.18
- of whicch: life sector
- of whicch: non-life secto
tor
3,34
341,812
77,804
2,9
970,545
77,813
371,267
(9)
12.50
-0.01
Life insu
urance premiums plus the
e indirect depposits under management total Euro 117,656.5 thou
usand,
which reepresents 52.7
75% of the ovverall total (Euuro 33,472 th
housand).
Shareho
holders' equiity
(in thousands of
o Euro)
Caption s
Consolid
dated sharehold
ders' equity
- of whicch: net profit (looss) for the perio
od
- of whicch: shareholderss' equity excludiing net profit (looss)
for thee period
46
31.03
3.2015
31.12.2014
Change
% change
c
4,97
70,088
4,8
870,140
99,948
2.05
45,197
4
14,797
30,400
205.45
4,9
924,891
4,8
855,343
69,548
1.43
nterim report on operation s as at 31 Maarch 2015
Coonsolidated in
m report on op
perations
Interim
(in thousan
nds of Euro)
Capttions
Mino
ority interests
- off w
which: net profi
fit (loss) pertainiing to minority iinterests
- off w
which: sharehollders' equity perrtaining to minoor
inte
terests excludingg their share of net
n profit (loss)) for
thee period
31
1.03.2015
31.12.2014
3
Change
% change
642,141
639,991
2,150
0.34
6,504
14,984
(8,480)
-56.59
635,637
625,007
10,630
1.70
(in thousan
nds of Euro)
Sharreholders' equity
1. Baanca popolare deell'Emilia Romag
gna s.c.
2. Bp
per (Europe) Inteernational s.a.
3. Baanca di Sassari s.p.a.
4. Baanco di Sardegnaa s.p.a.
5. Caassa di Risparmio di Bra s.p.a.
To
otal banks
Otther companies and consolidation adjustmentss
To
otal
Neet profit (loss) fo
or the period
To
otal shareholdeers' equity
31.03.2015
31.12.2014
Change
% change
4,679,610
52,701
242,267
1,179,374
70,463
4,620,159
4
50,260
238,170
1,143,542
1
76,668
59,451
2,441
4,097
35,832
(6,205)
1.29
4.86
1.72
3.13
-8.09
6,224
4,415
6,,128,799
95,616
1.56
(657
7,383)
(633,465)
(
(23,918)
3.78
5,567
7,032
5,,495,334
71,698
1.30
45,197
14,797
30,400
205.45
5,612
2,229
5,,510,131
102,098
1.85
This fi
figure is made up
p of liability cap
ptions 140, 170, 180, 190, 200, 210 and 220.
4.2 O
Own Funds and
a capital ratios
The new harmon
nised rules fo
or banks andd investment companies contained inn Regulation (EU) no.
575//2013 (CRR) and
a in the 2013/36/UE Di rective (CRD IV) approved
d on 26 June 22013 and pub
blished in
the O
Official Journaal of the Europ
pean Union thhe next day, entered
e
into fo
orce on 1 Januuary 2014.
The new regulato
ory frameworrk, which is the only sett of rules that seeks to harmonise prudential
p
regullations of thee Member States of the Eurropean Comm
munity, was made
m
applicabble in Italy by the Bank
of Itaaly's Circular no.
n 285, publiished on 17 D
December 201
13 and subseq
quent updatess.
The rregulatory fraamework provvides that Ow
wn Funds and
d risk-weighte
ed assets are to be calculaated with
referrence to the scope of co
onsolidation ffor superviso
ory purposes, which is diffferent from the one
foresseen by the accounting
a
sttandards, i.e. excluding co
ompanies nott formally inccluded in the
e Banking
Grou
up (Melior Vaalorizzazioni Immobili s.r.l.,, Italiana Valo
orizzazioni Im
mmobiliari s.r..l., Adras s.p.aa., Galilei
Immo
obiliare s.r.l. and
a Polo Cam
mpania s.r.l.) aand the comp
panies that do
o not exceed the limits foreseen in
art. 1
19 of the CRR
R (Mutina s.r.l., Nettuno G
Gestione Cred
diti s.p.a., Estense Coveredd Bond s.r.l. and
a BPER
Trustt Company s.p
p.a.).
In th
he scope of consolidation
c
for supervissory purposess, the companies that havve been excluded are
treatted in the sam
me way as the banks and companies su
ubject to sign
nificant influeence and consolidated
undeer the equity method.
m
47
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
In this co
ontext, the caapital ratios att 31 March 20
015, calculate
ed on the basis of the standdardised apprroach,
i.e. without the poteential benefitss of adoptingg advanced models
m
for measuring creddit risk (AIRB
B), for
which prre-validation officially com
mmenced at thhe end of Jan
nuary 2015, have been calcculated taking
g into
account these new regulations and
d the clarificattions and inte
erpretations endorsed to daate.
The folllowing table shows the BPER Groupp's capital raatios and th
he minimum capital adequacy
requirem
ments for regulatory purpo
oses as at 31
1 March 2015
5, calculated under the traansitional ("Phased
in") arran
ngements forr 2015.
CET1 haas also been calculated
c
on a pro forma basis, taking
g account of the
t profit earrned in the qu
uarter
that can
n be retained, as well as th
he net effect on the period of applying
g the fair valuue option, tottalling
Euro 40..5 million or 10
1 basis points.
(in thousands of
o Euro)
Common
n Equity Tier 1 - CET1
Additional Tier 1 – AT1
Tier 1
Tier 2 - TT2
Total Ow
wn Funds
Total Rissk-weighted assets (RWA)
CET1 Ra tio (CET1/RWA
A)
Tier 1 Raatio (Tier 1/RW
WA)
Total Ca pital Ratio (Tottal Own Funds//RWA)
RWA/To
otal assets
31.003.2015
as per law
31.03.2015
pro-forma
p
31.12.2014
3
4,,558,761
16,228
4, 574,989
4,599,309
4
16,226
4,615,535
4
4,581,261
10,826
4,592,087
Change %cchange
18,048
5,400
23,448
0.39
49.88
0.51
318,000
318,000
389,992
(71,992)
-18.46
4, 892,989
4,933,535
4
4,982,079
(48,544)
-0.97
40, 237,463
40
0,237,463
40,691,550
((454,087)
-1.12
11.33%
11.37%
12.16%
66.39%
11.43%
11.47%
12.26%
66.39%
11.26%
11.29%
12.24%
67.09%
17 bps
18 bps
2 bps
(70 bps.)
The incrrease in the CET1
C
and Tierr 2 capital rattios since 31 December 2014 was esseentially due to
t the
reductio
on in RWAs.
The Totaal Capital ratio is stable, on
n the other haand, since the
e reduction in
n RWAs was ooffset by the effect
of repayment and thee amortisation
n of the suborrdinated loanss subject to grrandfatheringg.
The capiital ratios at 31 March 2015, calculatedd on a pro-fo
orma basis in the terms deescribed abovve, are
thereforre as follows:
 Common Equity Tier (CE
ET-1) ratio – Phased in 11
1.43%, and 11.28%
1
if calcculated on a Fully
Phased basiss;
 Tier 1 ratio Phased
P
in of 11.47%;
 Total Capitall ratio - Phase
ed in of 12.26%
%.
The capiital ratios aree all much hig
gher than thee minimum le
evels required
d by current rregulations, having
h
regard fo
or the specifiic requiremen
nt for additio nal own fund
ds imposed by
y the ECB forr 2015 (9% fo
or the
CET1 rattio and 11% for
f the Total Capital
C
Ratio)..
Note th
hat the BPER
R Group usess different m
methods for calculating
c
risk-weighted assets, whicch are
summarised below:
 credit risk - for all Group entities, crredit risk is assessed using
g the standarrdized approaach to
determine th
he related individual and coonsolidated caapital requirement;
48
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim



credit do
own-rating rissk - the standdardized appro
oach (TSA) is used;
market risk
r
- the stan
ndardized appproach is used
d for assessin
ng market riskk (general and
d specific
risk on equities,
e
gene
eral risk on ddebt securitie
es and positio
oning risk foor units in invvestment
funds) to determine th
he related ind ividual and co
onsolidated ca
apital require ment;
operational risk - operational risk m
measurementt uses the stan
ndardised appproach (TSA).
Ownn Funds reg
egulations (transitiona
(
al provision
ns): Pruden
ntial filters for AFS reserves
r
relatting to debtt securities issued by tthe central administrat
a
tions of EU ccountries
With the publicatiion of Circular no. 285 of 1
17 December 2013 and sub
bsequent ameendments, the
e Bank of
Italy implemented
d the new haarmonised fraamework for banks and investment fiirms containe
ed in the
European Commu
unity's CRR no.
n 575 and C
Capital Requiirements Dire
ective no. 366 (CRD IV) off 26 June
2013
3, which enterred into force on 1 Januaryy 2014.
Part 2 of the doccument, which
h deals with the implementation of CR
RR, details thhe national discretions
exerccised in respeect of the tran
nsitional proviisions, includiing, in the lastt paragraph oof Section 2 off Chapter
14, tthe fact that banks cannott be includedd in any element of Own Funds,
F
unreallised profits or
o losses,
relating to exposu
ures to the cen
ntral administtrations classified under "Financial
F
asset
ets available fo
or sale" of
IAS 3
39 endorsed by
b the EU (tre
eatment appliicable until th
he Commissio
on adopts a reegulation bassed on EC
Regu
ulation no. 1606/2002 whicch approves tthe IFRS that replaces IAS 39).
3
This measure is in
n line with wh
hat is grantedd to intermediaries until 31 December 22013, pursuaant to the
Supeervisory Authority's provisions of 18 M
May 2010 reg
garding prude
ential filters, and provides for the
optio
on to disregarrd gains and losses, as thoough the securities were valued
v
at cosst, as an alterrnative to
allocaation to Own Funds.
On 2
28 January 20
014, the Paren
nt Company B
BPER agreed to exercise th
his option andd immediately (before
the 3
31 January 20
014 deadline) informed thee Supervisoryy Authority off its decision,, which is valiid for the
entire Banking gro
oup.
Use o
of this option
n, continuing the choice maade in the past which was effective unttil 31 Decemb
ber 2013,
is applied uniform
mly by all bankks and other c ompanies of the
t Group subject to prudeential superviision, and
is exttended to all securities issued by centraal administrattions containe
ed in the "Finnancial assetss available
for saale (AFS)" porrtfolio; this wiill be maintainned over timee until the rule
e is applicablee in the above
e terms.
Acco
ordingly, com
mmencing from the 31 M
March 2014 reporting datte, the reserrves arising from
f
the
meassurement of these securitie
es were no lonnger included
d in the determ
mination of O
Own Funds.
49
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
4.3 Reco
onciliation of
o consolidatted net profi t/shareholders’ equity
Consolid
dated net profit comprises the sum of thhe Group's in
nterest in the net profits (loosses) at 31 March
M
2015 of the following
g Group bankss and compannies included in
i the scope of
o consolidatioon.
(in thousands of Eu
uro)
Reconci liation of conssolidated net profit
p
for the pperiod
31.03.20
015
Banca po
opolare dell'Em
milia Romagna s.c.
s
38,6
617
Other G roup companiees:
12,4
406
Bper (Euurope) Internatioonal s.a.
Banco dii Sardegna s.p.a. (consolidated value)
v
Cassa di Risparmio di Brra s.p.a.
Nadia s.pp.a.
BPER Serrvices s.cons.p.aa.
EMRO Fi
Finance Ireland liimited
Mutina ss.r.l.
Nettunoo Gestione Crediiti s.p.a.
Optima ss.p.a. SIM
Modena Terminal s.r.l.
Emilia Roomagna Factor s.p.a.
s
Estense C
Covered Bond s.r.l.
s
Sardaleas
asing s.p.a.
Melior V
Valorizzazioni Im
mmobili s.r.l.
BPER Truust Company s.p
p.a.
Galilei Im
mmobiliare s.r.l.
Italiana V
Valorizzazioni Im
mmobiliari s.r.l.
Adras s.pp.a.
Polo Cam
mpania s.r.l.
Total Gr oup share
6,275
416
83
10
2,895
105
876
21
1,915
258
(69)
(
(21)
(
(5)
(1
106)
(23)
(
(2
224)
51,0
023
Consoliddation adjustmen
ents
(5,8
826)
Consolid
dated net profitt (loss) for the period
45,1
197
50
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
As reequired by currrent regulatio
ons, the follow
wing stateme
ent is presente
ed with regardd to the posittion at 31
Marcch 2015:
Reco
onciliation of
o the share
eholders’ eqquity and re
esults of the
e Parent Com
mpany with
h the
relatted consolid
dated amou nts
Increase (ddecrease)
AMO
OUNTS RELATING TO THE PA
ARENT COMPA
ANY
DIFFFERENCES betw
ween the shareholders' equuity of companies
ne-by-line basis (net of minorityy interests) and
d the
consolidated on a lin
bookk value of the related equity investments heeld by their parent
comp
panies, as follow
ws:
Net pro
ofit (loss) for
the period
Shareh
holders'
equity
38,617
4,7
718,226
8,409
237,004
2
- adj
djustments to gooodwill related to consolidated ccompanies
- elim
imination of inteercompany profi
fits and losses
(4,419)
- shaare of the resultts of fully consollidated compani
nies,
nett of tax effect
12,828
DIVIDENDS collecteed from companies consolidatedd on a line-by-line
basiss or stated undeer the equity method
-
-
DIFFFERENCE betweeen book value and the interest iin shareholders'
equitty (including ressults for the period) of companiies carried at equity
(1,829)
14,858
NET PROFIT FOR THE
T
PERIOD AN
ND SHAREHOLLDERS' EQUITY
Y OF
THE PARENT COMPANY AS AT 31
1.03.2015
45,197
4,9
970,088
6,504
642,141
6
51,701
5,6
612,229
NET PROFIT FOR TH
HE PERIOD AND
D SHAREHOLDEERS' EQUITY OF
F
MINO
ORITY INTERESSTS
TOTA
AL CONSOLIDATED NET PRO
OFIT FOR THE PPERIOD AND
SHA
AREHOLDERS' EQUITY
E
AS AT 31.03.2015
TOTA
AL CONSOLIDATED NET PRO
OFIT FOR THE PPERIOD AS AT
31.0 3.2014
TOTA
AL CONSOLIDATED SHAREH
HOLDERS' EQU ITY AS AT
31.1 2.2014
31,219
5,5
510,131
51
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
4.4 Inco
ome statemeent aggregattes
Consoli
lidated incoome statemeent
(iin thousands of Euro)
0
Caption s
10. Intterest and similarr income
C
Change
%cchange
431,035
494,548
((63,513)
-12.84
(116,940)
(164,728)
47,788
-29.01
me
30. Neet interest incom
314,095
329,820
((15,725)
-4.77
40. Commission income
188,020
184,023
3,997
2.17
-29.87
20. Intterest and similarr expense
50. Commission expense
ncome
60. Neet commission in
70. Divvidends and similar income
80. Neet trading incomee
90. Neet hedging gains (losses)
(
100. Gaains/losses on disposal or repurch
hase of:
a) loans
b) financial assets available
a
for sale
e
h to maturity
c) financial assets held
d) financial liabilities
110. Neet results on finaancial assets and liabilities designaated
at fair value
120. N et interest and other banking income
djustments to:
130. Neet impairment ad
a) loans
a
for sale
e
b) financial assets available
a
d) other financial assets
es
140. N et profit from fiinancial activitie
(8,817)
(12,573)
3,756
179,203
171,450
7,753
4.52
249
574
(325)
-56.62
20,413
4,290
16,123
375.83
355
231
124
53.68
28,438
67,761
((39,323)
-58.03
3,804
107
3,697
--
25,092
67,430
(42,338)
-62.79
(92)
-
(92)
n.s.
(366)
224
(590)
-263.39
-64.95
(3,148)
(8,982)
5,834
539,605
565,144
((25,539)
-4.52
(149,972)
(214,710)
64,738
-30.15
(147,504)
(211,820)
64,316
-30.36
(6,347)
(466)
(5,881)
--
3,879
(2,424)
6,303
-260.02
389,633
350,434
39,199
11.19
(323,806)
(322,923)
(883)
0.27
a) payroll
(199,322)
(196,796)
(2,526)
1.28
b) other administraative costs
(124,484)
(126,127)
1,643
-1.30
r
and charges
190. Neet provision for risks
111.72
dministrative cossts:
180. Ad
(14,096)
(6,658)
(7,438)
200. Neet adjustments to
o property, plantt and equipment
(9,944)
(10,402)
458
-4.40
210. Neet adjustments to
o intangible asse
ets
(7,386)
(5,955)
(1,431)
24.03
-4.43
220. Otther operating ch
harges/income
230. O
Operating costs
240. Prrofit (Loss) from equity
e
investmen
nts
270. Gaains (Losses) on disposal
d
of investments
46,307
48,455
(2,148)
(308,925)
(
(297,483)
(
((11,442)
3.85
(1,886)
(973)
(913)
93.83
113
1
112
--
78,935
51,979
26,956
51.86
(27,234)
(20,760)
(6,474)
31.18
300. Prrofit (Loss) from
m current operattions after tax
51,701
31,219
20,482
65.61
320. N et profit (loss) for
f the period
330. Neet profit (loss) fo
or the period perttaining to
m
minority interests
340. Prrofit (Loss) for the
t period pertaining
to
o the Parent Com
mpany
51,701
31,219
20,482
65.61
(6,504)
(2,947)
(3,557)
120.70
45,197
28,272
16,925
59.86
280. Prrofit (Loss) from
m current operattions before tax
290. Income taxes on cu
urrent operations
52
31.03.2015 31.03.2014
(8,817)
179,203
249
50. Commission expense
60. Net com m ission incom e
70. Dividends and similar income
51,701
51,701
(6,504)
45,197
320. Net profit (loss) for the period
330. Net profit (loss) for the period pertaining to minority interests
340. Profit (Loss) for the period pertaining to the Parent Com pany
(27,234)
78,935
113
(1,886)
300. Profit (loss) from current operations after tax
290. Income taxes on current operations
280. Profit (loss) from current operations before tax
270. Gains (losses) on disposal of investments
240. Profit (loss) from equity investments
(308 925)
(308,925)
46,307
220. Other operating charges/income
230 Operating costs
230.
(7,386)
210. Net adjustments to intangible assets
(14,096)
190. Net provision for risks and charges
(9,944)
(124,484)
b) other administrative costs
200. Net adjustments to property, plant and equipment
(199,322)
(323,806)
389,633
3,879
(6,347)
((147,504))
(149,972)
a) payroll
180. Administrative costs:
140. Net profit from financial activities
d) other financial assets
b) financial assets available for sale
a)) loans
130. Net impairment adjustments to:
(3,148)
539,605
120. Net interest and other banking incom e
(366)
(92)
25,092
3,804
28,438
355
110. Net results on financial assets and liabilities designated at fair value
d) financial liabilities
c) financial assets held to maturity
b) financial assets available for sale
a) loans
100. Gains/losses on disposal or repurchase of:
90. Net hedging gains (losses)
20 413
20,413
188,020
40. Commission income
80 N
80.
Nett ttrading
di iincome
314,095
30. Net interest incom e
431,035
(116,940)
20. Interest and similar expense
31.03.2015
10. Interest and similar income
Captions
Consolidated income statement by quarter as at 31 March 2015
28,272
(2,947)
31,219
31,219
(20,760)
51,979
1
(973)
(297 483)
(297,483)
48,455
(5,955)
(10,402)
(6,658)
(126,127)
(196,796)
(322,923)
350,434
(2,424)
(466)
((211,820))
(214,710)
565,144
(8,982)
224
-
67,430
107
67,761
231
4 290
4,290
574
171,450
(12,573)
184,023
329,820
(164,728)
494,548
31.03.2014
7,628
(3,701)
11,329
11,329
(20,922)
32,251
22
(2,792)
(322 877)
(322,877)
43,525
(6,360)
(10,253)
(12,976)
(135,714)
(201,099)
(336,813)
357,898
(614)
(3,189)
((204,972))
(208,775)
566,673
7,992
(183)
-
32,784
59
32,660
91
5 646
5,646
17,617
174,028
(12,182)
186,210
328,639
(161,146)
489,785
2nd quarter
2014
25,201
(8,067)
33,268
33,268
(14,258)
47,526
3
2,270
(297 146)
(297,146)
37,556
(6,823)
(10,192)
(8,036)
(129,645)
(180,006)
(309,651)
342,399
(3,115)
(680)
((163,296))
(167,091)
509,490
(10,232)
(41)
-
55,393
(29,716)
25,636
513
4 406
4,406
115
169,012
(13,417)
182,429
320,040
(150,578)
470,618
3rd quarter
2014
(46,304)
(269)
(46,035)
(46,035)
27,556
(73,591)
41
658
(334 870)
(334,870)
43,732
(7,483)
(12,918)
(11,112)
(138,303)
(208,786)
(347,089)
260,580
1,015
(36,012)
((232,646))
(267,643)
528,223
(3,019)
(288)
-
38,939
(409)
38,242
239
2 191
2,191
1,086
176,174
(10,283)
186,457
313,310
(140,027)
453,337
4th quarter
2014
14,797
(14,984)
29,781
29,781
(28,384)
58,165
67
(837)
(1 252 376)
(1,252,376)
173,268
(26,621)
(43,765)
(38,782)
(529,789)
(786,687)
(1,316,476)
1,311,311
(5,138)
(40,347)
((812,734))
(858,219)
2,169,530
(14,241)
(288)
-
194,546
(29,959)
164,299
1,074
16 533
16,533
19,392
690,664
(48,455)
739,119
1,291,809
(616,479)
1,908,288
31.12.2014
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
53
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
The follo
owing are thee key figures from the connsolidated inccome stateme
ent at 31 Maarch 2015, suitably
compareed with the figures of the same period last year. Wh
hen they referr to the Parennt Company in the
detailed information, they take intto account th e mergers of the three sub
bsidiaries Bannca della Cam
mpania
s.p.a., Baanca Popolarre del Mezzog
giorno s.p.a. and Banca Popolare
P
di Ravenna s.p.a.. on 24 Nove
ember
2014, with effect for tax
t and accou
unting purposses from 1 Jan
nuary 2014.
Net inteerest income amounted to
o Euro 314.1 million, down
n 4.77% (Euro
o 329.8 millioon as at 31 March
M
2014), m
mainly due to the spread efffect. Comparred with the final
f
quarter of
o last year, nnet interest in
ncome
has imprroved slightlyy (+0.25%) be
ecause the low
wer cost of fu
unding more than offset thhe lower retu
urn on
assets. TThis decline reeflected the reduction
r
in ccommercial vo
olumes, the changes
c
in maarket rates an
nd the
lower yieeld obtained from
f
the secu
urities portfoliio.
(in thousands of
o Euro)
Net inteerest income
1. Banca popolare dell'Em
milia Romagna s.c.
s
31.03.201
15
31.03.2
2014
C
Change
%cchange
231,45
55
237
7,676
(6,221)
-2.62
2. Bper (EEurope) International s.a.
3. Banca di Sassari s.p.a.
61
18
12,78
88
780
12
2,868
(162)
(80)
-20.77
-0.62
4. Banco di Sardegna s.p
p.a.
5. Cassa di Risparmio di Bra s.p.a.
50,07
78
5,96
64
54
4,811
6,894
6
(4,733)
(930)
-8.64
-13.49
300,90
03
313
3,029
(112,126)
-3.87
Total b
banks
Other companies and consolidation adjustments
a
Total
13,19
92
16
6,791
(3,599)
-21.43
314,09
95
329
9,820
(115,725)
-4.77
The compparative figuress of Banca popo
olare dell’Emiliaa Romagna s.c. include those of
o the Group bbanks absorbed
d on 24
Novembeer 2014: Banca Popolare di Raavenna s.p.a. (EEuro 15,875 tho
housand), Bancaa della Campani
nia s.p.a. (Euro 27,792
2
thousand)
d) and Banca Poopolare del Mezzzogiorno s.p.a.. (Euro 27,513 thousand), nett of intercompaany balances (Eu
Euro 21
thousand)
d).The same adjuustment was mad
de to "Other com
ompanies and co
onsolidation adju
ustments".
Net com
mmissions, Eu
uro 179.2 miillion, were 4
4.52% higherr than in the
e comparativee period of 2014.
Commissions on indirect deposits and from “bbancassurance” performed
d very well (+
+33.22% compared
with 31 March 2014)), but there were falls in coommissions frrom loans and
d guarantees (-4.29%) and
d from
collectio
ons and paymeent instrumen
nts (-6.06%).
(in thousands of
o Euro)
Net com
mmission incom
me
31.03.2015
5
31.03.2014
C
Change
%cchange
Trading in currency/financial instruments
Indirect d
deposits and inssurance policies
1,873
3
46,476
6
1,988
34,887
(115)
11,589
-5.78
33.22
Credit caards, collections and payments
Loans an
nd guarantees
35,728
8
86,355
5
38,031
90,221
(2,303)
(3,866)
-6.06
-4.29
Other co
ommissions
Total ne t commission income
54
8,771
1
6,323
2,448
38.72
179,203
3
171,,450
7,753
4.52
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
The n
net result fro
om trading activities (inclu ding dividend
ds) was incom
me of Euro 466.3 million, which
w
was
lower than at 31 March
M
2014 (Euro
(
63.9 mi llion). This ou
utcome beneffited from thee good performance of
the ffinancial markkets, with con
ntributions maainly from the sale of financial assets, eespecially govvernment
securrities held in the AFS portffolio (Euro 30
0.7 million), and from net gains
g
on finanncial assets (E
Euro 29.6
millio
on). Note thaat despite the
ese sales, possitive reservess on governm
ment bonds reemain very high (Euro
147.6
6 million com
mpared with Euro 97.9 m
million at 31 December 20
014). Applicaation of the fair
f value
optio
on resulted in a charge of just Euro 6.5 million (charg
ge of Euro 12.7 million at 331 March 201
14), since
the related adversse effects are almost over.
(in thousan
nds of Euro)
Net trading incom
me
(inclluding dividen ds)
31.03.2015
3
31.03.2014
Change
%change
Divid
dends
Gain on disposal of financial
f
assets and loans
Gains on financial asssets
Lossees on financial assets
a
Fair vvalue option
249
30,669
30,939
(1,385)
(6,545)
574
71,291
15,999
(2,967)
(12,691)
(325)
(40,622)
14,940
1,582
6,146
-56.62
-56.98
93.38
-53.32
-48.43
Otheer revenues (lossses)
Tota l
(7,620)
46,307
(8,332)
63,874
712
(17,567)
-8.55
-27.50
Net iinterest and other
o
banking
g income amoount to Euro 539.6
5
million, a decrease coompared with
h the first
threee months of 2014
2
(-4.52%)).
(in thousan
nds of Euro)
Net interest and other
o
banking income
1. Baanca popolare deell'Emilia Romag
gna s.c.
2. Bp
per (Europe) Inteernational s.a.
3. Baanca di Sassari s.p.a.
4. Baanco di Sardegnaa s.p.a.
5. Caassa di Risparmio di Bra s.p.a.
To
otal banks
Otther companies and consolidation adjustmentss
To
otal
31.03
3.2015
31.03.2014
Change
%change
391,606
1,332
23,599
92,083
11,830
414,118
1,824
23,471
89,918
13,701
(22,512)
(492)
128
2,165
(1,871)
-5.44
-26.97
0.55
2.41
-13.66
52
20,450
543,032
(22,582)
-4.16
19,155
22,112
(2,957)
-13.37
53
39,605
565,144
(25,539)
-4.52
The ccomparative figu
gures of Banca popolare
p
dell’Em
milia Romagna s.c. include tho
ose of the Grouup banks absorrbed on 24
Novem
ember 2014: Baanca Popolare di
d Ravenna s.p.aa. (Euro 22,540
0 thousand), Baanca della Camp
mpania s.p.a. (Eu
uro 41,986
thoussand) and Bancca Popolare dell Mezzogiorno ss.p.a. (Euro 47,,078 thousand),
), net of intercoompany balance
ces (Euro 7
thoussand).The same adjustment
a
wass made to "Otheer companies and
nd consolidation adjustments".
Net aadjustments to
t loans and other
o
financia l assets amou
unted to Euro 150 million, a decrease on
n the first
quartter of 2014 (-30.15%).
Net adjustments to loans, Eu
uro 147.5 mi llion, were much
m
lower than
t
in the ccomparative period (30.36
6%). The coverage of doubtful loans reemains high (4
40.98%), follo
owing an incrrease since th
he end of
2014
4 (+32 bps.).
55
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
Adjustm
ments to “Finaancial assets available
a
for ssale” amounteed to Euro 6.3
3 million (Eurro 0.5 million al 31
March 2
2014) follow
wing the iden
ntification off lasting imp
pairment in accordance with the Grroup's
accountiing policies. In
I particular the investmeent in Release
e s.p.a. was written
w
down by Euro 6 million,
m
while the UCITS portffolio was adju
usted by Euroo 0.3 million to
t reflect our extremely prrudent approaach to
the meassurement of financial
f
assetts.
(in thousands of
o Euro)
Net imp
pairment adjusstments to loans
(caption
n 130 a)
31.03.2015
31.03.2014
Change
%cchange
1. Banca popolare dell'Em
milia Romagna s.c.
s
2. Bper (EEurope) International s.a.
3. Banca di Sassari s.p.a.
4. Banco di Sardegna s.p
p.a.
5. Cassa di Risparmio di Bra s.p.a.
12
20,332
1,840
14,678
1
6,372
162,811
1
59
3,382
27,243
9,284
(42,479)
(59)
(1,542)
(12,565)
(2,912)
-26.09
-100.00
-45.59
-46.12
-31.37
14
43,222
202,779
((59,557)
-29.37
Total b
banks
Other companies and consolidation adjustments
a
Total
4,282
9,041
(4,759)
-52.64
14
47,504
211,820
((64,316)
-30.36
The compparative figuress of Banca popo
olare dell’Emiliaa Romagna s.c. include those of
o the Group bbanks absorbed
d on 24
Novembeer 2014: Banca Popolare di Ravenna
Ra
s.p.a. (E
(Euro 7,149 tho
ousand), Banca della Campaniia s.p.a. (Euro 11,203
1
thousand)
d) and Banca Pop
polare del Mezzo
ogiorno s.p.a. (EEuro 4,891 thoussand).
The totaal cost of cred
dit at 31 Marcch 2015 comees to 34 bps (135 bps ann
nualised); at 331 March 201
14 the
cost of ccredit was 46 bps, while the
e effective cosst at 31 Dece
ember 2014 was
w 185 bps.
The net profit from fin
nancial activitties of Euro 3 89.6 million is up by 11.19
9% on 31 Marrch 2014.
Operatin
ng costs, nett of other op
perating charrges/income, amount to Euro 308.9 million, 3.85% up
compareed with the firrst quarter of 2014.
Payroll ccosts amount to Euro 199.3
3 million, 1.28
8% up compared with the first
f
quarter oof 2014.
Other ad
dministrative costs amoun
nt to Euro 12 4.5 million, a decrease of 1.30% comppared with the
e first
three mo
onths of 201
14; net of the
e recovery of taxation, classsified among
g “Other incoome and expe
ense”,
Euro 30..9 million (Eurro 29.8 million at 31 Marchh 2014), othe
er administrative expenses (Euro 93.6 million)
were 2.8
82% lower thaan at 31 Marcch 2014.
Net provvisions for riskks and charge
es (Euro 14.1 m
million) are up by Euro 7.4 million.
There haas been an in
ncrease of 5.9
95% in net im
mpairment lossses on tangible and intanngible assets (Euro
17.3 million).
56
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
(in thousan
nds of Euro)
Ope rating costs
1. Baanca popolare deell'Emilia Romag
gna s.c.
2. Bp
per (Europe) Inteernational s.a.
3. Baanca di Sassari s.p.a.
4. Baanco di Sardegnaa s.p.a.
5. Caassa di Risparmio di Bra s.p.a.
To
otal banks
Otther companies and consolidation adjustmentss
To
otal
31.03
3.2015
31..03.2014
Change
%change
217,141
2
1,274
18,399
61,068
4,519
208,680
859
17,646
59,084
5,206
8,461
415
753
1,984
(687)
4.05
48.31
4.27
3.36
-13.20
302,401
291,475
10,926
3.75
6,524
6,008
516
8.59
308,925
297,483
11,442
3.85
The ccomparative figu
gures of Banca popolare
p
dell’Em
milia Romagna s.c. include tho
ose of the Grouup banks absorrbed on 24
Novem
ember 2014: Baanca Popolare di
d Ravenna s.p.aa. (Euro 12,709
9 thousand), Baanca della Camp
mpania s.p.a. (Eu
uro 26,535
thoussand) and Bancaa Popolare del Mezzogiorno s.
s.p.a. (Euro 22,8
848 thousand), net of intercom
mpany balancess (Euro -19
thoussand).The same adjustment
a
wass made to "Otheer companies and
nd consolidation adjustments".
The p
profit from cu
urrent operatiions before taax amounts to
o Euro 78.9 million
m
(Euro 552 million at 31
3 March
2014
4).
Incom
me taxes for the period amounted to EEuro 27.2 million. The effective tax ratte of 34.50%
% is lower
39.94%).
than in the compaarative period of last year (3
Net p
profit, net of taxes,
t
is Euro 51.7 million ((Euro 31.2 miillion at 31 Ma
arch 2014).
The p
profit pertain
ning to minorrity interests amounts to Euro 6.5 milllion (Euro 2.99 million at 31
3 March
2014
4).
The n
net profit attributable to the
t Parent Coompany, net of minority in
nterests, is Euuro 45.2 million (Euro
28.3 million at 31 March 2014)).
(in thousan
nds of Euro)
Net profit
1. Baanca popolare deell'Emilia Romag
gna s.c.
2. Bp
per (Europe) Inteernational s.a.
3. Baanca di Sassari s.p.a.
4. Baanco di Sardegnaa s.p.a.
5. Caassa di Risparmio di Bra s.p.a.
31.0
03.2015
31
1.03.2014
Change
%change
38,617
2,322
10,404
621
21,024
641
1,663
3,017
(748)
17,593
(641)
659
7,387
1,369
83.68
-100.00
39.63
244.85
-183.02
To
otal banks
51,964
25,597
26,367
103.01
Otther companies and consolidation adjustmentss
(6,767)
2,675
(9,442)
-352.97
To
otal
45,197
28,272
16,925
59.86
The ccomparative figu
gures of Banca popolare
p
dell’Em
milia Romagna s.c. include tho
ose of the Grouup banks absorrbed on 24
Novem
ember 2014: Baanca Popolare di
d Ravenna s.pp.a. (Euro 1,351
1 thousand), Banca
Ba
della Cam
mpania s.p.a. (E
Euro 1,934
thoussand) and Banca
ca Popolare del Mezzogiorno ss.p.a. (Euro 12,2
207 thousand), net of intercom
ompany balancees (Euro 10
thoussand).The same adjustment
a
wass made to "Otheer companies and
nd consolidation adjustments".
57
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
4.5 Group employees
Employeees
1. Banca popolare dell'Em
milia Romagna s.c.
s
2. Bper (EEurope) International s.a.
3. Banca di Sassari s.p.a.
4. Banco di Sardegna s.p
p.a.
5. Cassa di Risparmio di Bra s.p.a.
Total b
banks
Other Companies
Total
31.03.2015
31.12.20144
Change
C
8,103
17
538
2,367
185
8,1227
117
5442
2,3880
1888
(24)
(4)
(13)
(3)
11,210
11,2544
(44)
342
33 9
3
11,552
11,59 3
(41)
The numbber of employeees indicated for each
e
bank takess account of stafff seconded to other
o
Group com
mpanies.
In particuular, BPER’s emp
ployees at 31 March
Ma 2015 includ
ude 888 personss seconded to th
he Group, of whi
hich 829 are with
th BPER
Services ss.cons.p.a.; the equivalent
e
numb
bers at 31 Decem
mber 2014 weree 894 and 840, respectively.
r
ographical orrganisation of
o the Groupp
4.6 Geo
Branchees
31.03.2015
31.12.20144
Change
C
1. Banca popolare dell'Em
milia Romagna s.c.
s
2. Banca di Sassari s.p.a.
816
55
8166
555
-
3. Banco di Sardegna s.p
p.a.
4. Cassa di Risparmio di Bra s.p.a.
374
28
3744
288
-
1,273
1,2733
-
1
1
-
1,274
1,2744
-
Total ccommercial banks
5. Bper (EEurope) International s.a.
Total
The Gro
oup's commercial bankss are locatedd throughou
ut the counttry as can bbe seen from
m the
followin
ng table.
58
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
Detaails
Emiliaa - Romagna
Bologgna
Ferrarra
Forlì – Cesena
Modeena
Parmaa
Piacen
nza
Raven
nna
Reggio Emilia
ni
Rimin
Abruzzzo
Chietii
L’Aqu
uila
Pescara
mo
Teram
Basili cata
Materra
Poten
nza
Calab
bria
Catan
nzaro
Cosen
nza
Croto
one
BPER
B
BSSSS
BSAR
R
315
56
15
33
83
27
5
39
40
17
98
36
43
11
8
35
20
15
43
10
14
9
CRBRA
1
1
31.03..2015
31.12.2014
316
56
15
33
83
28
5
39
40
17
98
36
43
11
8
35
20
15
43
10
14
9
316
56
15
33
83
28
5
39
40
17
98
36
43
11
8
35
20
15
43
10
14
9
6
Reggio Calabria
6
6
Vibo V
Valentia
4
4
4
104
104
104
29
5
7
24
39
58
3
9
2
43
1
29
5
7
24
39
73
3
10
2
56
2
5
3
1
1
46
1
4
5
1
1
11
21
1
1
9
2
2
1
2
2
29
5
7
24
39
73
3
10
2
56
2
5
3
1
1
46
1
4
5
1
1
11
21
1
1
9
2
2
1
2
2
Camp
pania
Avellino
Benevvento
Caserrta
Naplees
Salern
no
Lazio
Frosin
none
Latinaa
Rieti
Romee
Viterb
bo
Liguriia
Genoaa
La Speezia
Savon
na
Lomb
bardy
Bergaamo
Brescia
Cremo
ona
Lecco
o
Lodi
ua
Mantu
Milan
Monzza Brianza
Varese
he
March
Ancon
na
Ascoli Piceno
Fermo
o
Macerata
Pesaro
o-Urbino
42
1
4
5
1
1
11
17
1
1
9
2
2
1
2
2
1
14
1
1
12
1
5
3
1
1
4
4
59
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
Details
BPER
BSSS
BSAR
CRBRA
31.03.20115
31.12
2.2014
10
7
3
28
3
4
17
4
37
11
5
18
3
4400
99
24
26
51
22
40
55
83
20
4
3
7
3
3
10
2
1
3
1
1
1
1
3
3
2
2
34
2
7
6
2
3
11
3
10
7
3
28
3
4
17
4
37
11
5
18
3
400
99
24
26
51
22
40
55
83
20
4
3
7
3
3
10
2
1
3
1
1
1
1
3
3
2
2
34
2
7
6
2
3
11
3
Molise
Campobasso
Isernia
Piedmont
Alessandria
Asti
Cuneo
Turin
Apulia
Bari
Barletta An
ndria Trani
Foggia
Taranto
Sardinia
Cagliari
Carbonia-Iglesias
Medio Cam
mpidano
Nuoro
Ogliastra
Olbia-Tempio
Oristano
Sassari
Sicily
Agrigento
Catania
Messina
Palermo
Siracusa
Tuscany
Florence
Grosseto
Livorno
Lucca
Massa Carrara
Pisa
Pistoia
Prato
Alto Adige
Trentino-A
Trento
Umbria
Terni
Veneto
Belluno
Padua
Rovigo
Treviso
Venice
Verona
Vicenza
10
7
3
Total 31..03.2015
816
8
555
374
28
1,2273
1,273
Total 31..12.2014
816
8
555
374
28
1,2273
-
60
28
3
4
17
4
37
11
5
18
3
544
155
3
4
6
1
7
2
166
20
4
3
7
3
3
6
2
346
84
21
22
45
21
33
53
67
4
1
1
1
1
2
1
1
3
3
2
2
34
2
7
6
2
3
11
3
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
5. O
Other inform
mation
5.1 TTreasury shares
No q
quotas or shaares in Group companiess are held th
hrough trust companies oor other third
d parties;
furth
hermore, such
h parties werre not used dduring the pe
eriod to buy or sell sharees or quotas in Group
comp
panies.
The ccarrying amo
ount of the Group’s
G
intereest in the tre
easury sharess held by connsolidated co
ompanies,
classified as a ded
duction from shareholderss' equity caption 200, is Eu
uro 7,256 thoousand, of wh
hich Euro
7,253
3 thousand relates to BPE
ER shares hel d by the Pare
ent Company
y, while the oother Euro 3 thousand
t
referr to shares in Banca di Sasssari s.p.a. heldd by that bankk. The table be
elow shows thhe details at 31
3 March
2015
5.
Numb
ber
of sharres
Total
par value
Group
interest
Bancca popolare dell'Emilia Romagnaa s.c.
Bancca di Sassari s.p.aa.
455,4
458
25,351
1,366,374
30,421
7,253,180
2,333
Tota l as at 31.03.20
015
480,809
1,396,795
7,255,513
Tota l as at 31.12.20
014
480,809
1,396,795
7,259,445
5.2 SShare price performance
p
e
The IItalian FTSE MIB
M index hass risen by 21
1.8% since the
e start of the
e year, while tthe French CAC index
increeased by 17.8
8% during the
e quarter and the Spanish IBEX index progressed byy 12.1%. The Frankfurt
exchaange was up by 23.3%, wh
hile London oonly rose sligh
htly during the period (+3..15%). In the USA, the
S&P5
500 advanced
d by 0.4% whiile the Dow Joones index eaased 0.3%; in Japan, the Tookyo exchange rose by
10.3%
% during the period.
The FFTSE MIB index of the Italiian Stock Exc hange closed the first quarter of 2015 aat 23,157 points, with
a higgh on 24 Maarch 2015 off 23,382 poinnts and a low
w on 7 January 2015 of 17,992 poin
nts. BPER
perfo
ormed well du
uring the first quarter of 20
015, rising ove
erall by 48.9%
%.
18
BPER
R's official sh
hare price at 2 January 20
015 was Euro 5.58 and at 31 March 20015 it was Euro 8.135,
15), a low of Euro 4.804 (o
with a high of Eurro 8.135 (on 31
3 March 201
on 12 Januaryy 2015) and a straight
averaage of Euro 6..703.
Average daily volumes increased significanttly from the start of the year,
y
settling at around 7..5 million
sharees, reflecting the
t share's rissing level of liiquidity and itts visibility to investors.
18
Sourrce: Bloomberg Professional - Official
O
daily clos
osing price of BP
PER stock.
61
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
5.3 Shareholders
At 31 March 2015 theere were 89,1
143 memberss (excluding 126 who had sold their sharres and who will
w be
excluded
d from memb
bership by a Board
B
resolutioon on 14 Aprril 2015), com
mpared with 889,691 members at
31 Deceember 2014 (excluding 99
9 members w
who had sold their sharess and who weere excluded from
memberrship by a Boaard resolution on 13 Januarry 2015).
5.4 Ratiing as at 31 March
M
2015
Internaational Rating Agency
Standard
d & Poor's
Fitch Rattings
Issue date
Long-term
Short-term
S
Outloo
ok
18 December 20144
BB--
B
Stable
e
10 July 2014
BB+
+
B
Negativve
Standarrd & Poor’s
On 18 D
December 201
14, Standardss & Poor's revvised its long--term rating from
f
"BB" to ""BB-" as a ressult of
Italy's so
overeign ratin
ng being low
wered on 5 D
December; in the meantim
me, BPER shorrt-term rating
g was
confirmeed at "B". Thee outlook imp
proved from ""negative" to "stable", reflecting Standaard & Poor's belief
that BPEER's current raatings alreadyy incorporate most of the risks that could affect the BBank's perform
mance
as a resu
ult of the weak economic co
onditions in Ittaly.
Fitch R
Ratings
On 10 Ju
uly 2014, as part of variou
us rating channges on mid-sized Italian banks,
b
Fitch cconfirmed its longterm rating and its short-term ratin
ng at "BB+" annd "B" respecttively. The outlook remainss negative.
The viab
bility rating waas revised to "bb" from "bbb+", while the support ratin
ng and supporrt rating floorr were
confirmeed at "3" and "BB+",
"
respecctively.
62
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
m report on op
perations
Interim
5.5 Inspections by
b the Superrvisory Authoorities on Group banks and
a companiies
CON
NSOB
Theree are no changes with respect to the disclosures published
p
in the 2014 annnual report, to which
referrence is made for further in
nformation.
Bankk of Italy
Theree are no changes with respect to the disclosures published
p
in the 2014 annnual report, to which
referrence is made for further in
nformation.
Insppections by the
t Superviisory Authoorities
On 5 February 20
015, an inspecction pursuannt to art. 54 and
a 68 of Legislative Decreee 385/1993 began at
BPER
R. The purposse is to evaluate the "Com
mpliance with
h the rules on
n transparenccy of transacttions and
fairneess in dealing
gs with custom
mers and com
mbating moneyy laundering".
BPER
R thinks thatt it is reason
nable to conssider this insspection as a routine visiit by the Supervisory
Authority, especiaally as similarr inspections,, in terms of topic and sccope, have beeen carried out or are
curreently underwaay at other Itaalian banks.
Inveestigations by
b the Guarrdia di Finannza at Bancco di Sardeg
gna s.p.a.
Theree are no changes with respect to the disclosures published
p
in the 2014 annnual report, to which
referrence is made for further in
nformation.
5.6 M
Main litigatio
on and legal proceedingss pending
Tax disputes
The o
overall risks deriving
d
from tax disputes are covered by appropriate provisions for risks and
d charges,
which total Euro 705,619.
7
The situation reg
garding the disputes menttioned in pre
evious quarterly and annuual reports is updated
below
w.
2005
5-2009 - EM
MRO Financ e Ireland lt d
On 1
12 March 2012, following an
a inspection of the 2005-2
2009 tax yearrs and the nottification of in
nspection
minu
utes dated 19
9 July 2011, the Modena Tax Authoritties issued a notice of as sessment to the Irish
subsiidiary coverin
ng the 2005 and 2006 tax yyears. This asssessment alleged the fictitiious relocatio
on abroad
of the company's activities
a
and the consequeent omitted declaration
d
of IRES taxationn of Euro 11.2
2 million.
Having considered
d the authoritative opinionn of its adviso
ors, managem
ment determinned that the demands
of th
he tax authorities were entirely
e
unfouunded and, strengthened
s
by the proppriety of its conduct,
appeealed to the Modena
M
provin
ncial tax comm
mission.
Afterr suspending enforcementt of the assesssment, the commission
c
accepted
a
the appeal in itss entirety
and, in a ruling fileed on 17 Nove
ember 2014, overturned all aspects of the assessmennt.
This ruling has beeen challenged
d before the reegional tax co
ommission. Co
ontenziosi fisccali.
On 1
18 December 2013, the Mo
odena Tax Offfice filed an enforceable
e
notice
n
of asseessment relating to tax
year 2007, in which they conte
est the compaany's foreign status, involv
ving total taxees of Euro 3.5
5 million,
plus interest and penalties.
p
The
e Irish companny also filed an appeal against this noticce of assessme
ent.
63
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
As in the case of thee earlier tax years,
y
manageement does not
n believe th
hat this matteer is likely to
o have
adverse consequencees.
2008- EEm.Ro. popo
olare s.p.a.
Followin
ng a tax audiit on 2008 and
a 2009, onn 23 Decemb
ber 2013, the
e Provincial D
Directorate of
o the
Modena Tax Office seent BPER, in its
i dual role aas the merging company of Em.Ro. popoolare s.p.a. an
nd the
consolid
dating company pursuant to art. 117 eet seq. of the
e Consolidated Income Taxx Law, a notice of
assessment pursuantt to art. 40 bis
b of D.P.R. nno. 600/73 and
a related sa
anctions in reelation to IRE
ES for
2008, disputing the tax relevance of changess in exchange rates on financial assetts denominatted in
foreign ccurrency, con
nsidered fiscally relevant bby the former subsidiary pu
ursuant to artt. 110 paragraph 2
of the Co
onsolidated In
ncome Tax Laaw and assess ing a higher taxable
t
income of Euro 1,9223.3 thousand.
The tax cclaim amountts to Euro 528
8 thousand, byy way of tax plus
p penalties and interest..
Considering the reaso
oning of the Tax
T Authoriti es to be unfo
ounded, the Bank
B
defendedd itself by filing an
appeal b
before the Mo
odena provinccial tax comm
mission, which
h rejected it; the Bank will aappeal againsst this
ruling.
At the date of preparration of this interim reporrt, an amountt of Euro 300 thousand hass been set aside to
cover an
ny penalties th
hat may be du
ue.
2009-2 010 - Bancaa della Cam pania s.p.a..
On 30 D
December 201
14, as a resultt of the tax auudit on direct taxes carried
d out on whatt was then Ban
nca di
Campania s.p.a. on th
he tax years 2009 and 2010
0, the Regional Directorate
e of the Revennue Agency fo
or the
Campania Region sen
nt tax assessm
ments to recoover higher taxes
t
for a to
otal of Euro 6600 thousand
d, plus
interest and penalties, to BPER in
n its dual cappacity as the Merging
M
Com
mpany of Ban ca della Cam
mpania
s.p.a. and
d Consolidating Company under art. 11 7 et seq. of th
he Income Tax
x Code.
The disp
pute relates to
t the deducction of negaative items of income in alleged breacch of the acccruals
principlee.
After preesenting com
mments about the inspectioon minutes pursuant to art. 12, para. 7 of Law 212/2000,
the Bankk has commeenced the pro
ocedure for a greeing an asssessment pu
ursuant to Deecree 218/97
7. This
action iss still in progreess.
At the date of preparration of this interim reporrt, a provision
n of Euro 206 thousand hass been set aside to
cover an
ny penalties th
hat may be du
ue.
Investig
igation into what the media
m
have llabelled thee "Parioli scaam"
It should
d be noted th
hat certain in
ndividuals, whho are suspeccts in the investigation intto what the media
m
have lab
belled the "Parioli scam", held accounts,, also by means of compan
nies held by tthem, with a Rome
branch o
of CARISPAQ,, from 27 Mayy 2013 absorbbed by the Grroup,
In this co
ontext it shou
uld be noted that
t
CARISPA
AQ has been cited
c
as being responsible iin civil procee
edings
no. 1454
45/2011 R.G..T. before the
e Court of Ro me in a pane
el, IX Criminal Chamber, inn which Gianffranco
Lande sttands accused
d of alleged conspiracy
c
to carry out fraaud as well ass other crimess against property,
unautho
orised financial practices and
a trying too obstruct th
he supervisory
y functions; crimes comm
mitted
through companies controlled
c
byy Lande, somee of which had
h current accounts at a Rome bran
nch of
CARISPA
AQ. In this reegard, it should be noted tthat CARISPA
AQ has been cited for thirrd-party liability by
249 perrsons. On 28 June 2012, the Court off Rome condemned Gianffranco Lande to 9 years and
a 8
months in prison and a fine of Euro
o 20,000.
64
nterim report on operation s as at 31 Maarch 2015
Coonsolidated in
m report on op
perations
Interim
CARIISPAQ was also
a
ordered, jointly and sseverally with
h the defendant, to pay ddamages in favour
f
of
plaintiffs, to be paaid in separate
e proceedingss, as well as reimbursemen
nt of the legall expenses inccurred by
the p
plaintiffs, as quantified by the
t Court. Thee Court rejectted all requestts for a provissional award.
It folllowed that, according
a
to the judgemeent, CARISPA
AQ was not currently requuired to pay any sum.
CARIISPAQ had ap
ppeal against the sentencee on 20 Marcch 2013 beforre the Court oof Appeal of Rome. In
fact, the first degrree judgemen
nt affirms the Bank's respo
onsibility on a questionablee legal basis and
a never
applied against a private
p
entity, given that itt has no indire
ect liability for the facts asccribed to Land
de.
In seecond degree, the Assistant Attorney G eneral at the Court of App
peal of Romee, at the hearing on 12
Noveember 2013, insisted on excluding
m the trial. The
e
civvil parties and
d civil liability (BPER) from
T main
reaso
on for the excclusion of civil parties is reelated to the fact that the injured partiees with respe
ect to the
crimiinal conduct involved
i
in th
he offences oof which the defendant
d
is accused
a
cannoot be found in the socalled
d investors.
On 1
17 December 2013, the Ro
ome Court off Appeal, as part of the app
peal process initiated also by BPER
again
nst the senteence imposed by the Courrt of Rome against Lande for illegal fi nancial activities, and
CARIISPAQ, now BPER,
B
as bein
ng legally liabble for the latter, revoked the first degrree judgemen
nt against
BPER
R in terms of legal liability, as mentionedd previously, and decided to
t offset the llegal costs unlike what
was d
decided in thee previous firsst degree senttence.
An appeal was fileed immediate
ely against th is decision with
w the Supre
eme Court onnly by Lande'ss defence
council and by EG
GP, responsib
ble under civi l law, whereaas all of the plaintiffs
p
exceept two have desisted
from this initiativee. The Suprem
me Court, in iits judgementt of 3 February 2015, rejeccted the appe
eal of the
two p
plaintiffs and deferred the matter to thee Civil Court of
o Appeal sole
ely for the purrpose of revie
ewing the
rulinggs in favour of the plaintiffs, with th e exception of the CONS
SOB, only in connection with the
senteence against Gianfranco Lande to payy damages. As
A a consequ
uence, all of the civil rulings that
exclu
uded liability on
o the part off BPER are now
w definitive (res judicata in
n legal jargon)).
The ccriminal proceedings invollving the mannagers at the time of CAR
RISPAQ's brannch no. 1 in Rome,
R
for
different criminal offences, ass specified b elow, relating to the management off the currentt account
nging to the company
c
E.I.M
M. and attributtable to Mr. Lande,
L
are currrently in proggress.
belon
In paarticular, one of
o them is chaarged with paarticipation in
n unauthorised
d financial praactices; the other two,
on th
he other hand
d, are charged
d with a less sserious offencce under art. 55
5 of Legislattive Decree 23
31/2007,
for having violated
d the obligations of full an d truthful ide
entification prrescribed by tthe regulation
ns against
moneey laundering
g.
Vario
ous people haave registered
d as civil plainntiffs in these
e proceedingss. Most of theem had alread
dy signed
up ass civil plaintifffs in the firstt trial againstt Mr. Lande. Also
A in this ca
ase, BPER wass sued as the
e merging
comp
pany of CARISPAQ, as leg
gally liable forr the "deeds of its employ
yees," pursuannt to art. 204
49 of the
Italiaan Civil Code.
Durin
ng the prelim
minary hearing
g, BPER's defeence stronglyy contested th
he same civil liability being
g cited in
two cases, to ansswer (at leastt in part) forr the same faacts. This is contrary
c
to t he principle that it is
impo
ossible to inittiate a new ciivil action (al beit in the co
ontext of crim
minal proceeddings) when the
t same
parties have alread
dy proposed the
t same acti on (again making use of Criminal Proceedure) in a triaal that (at
the ttime) had already culmin
nated in the judgement of first degrree, as this cconstitutes an
a undue
dupliication of the matters be
eing discusseed. This in ap
pplication of art. 75 of tthe Code of Criminal
Proceedure.
A diffferent opinion was held byy the GUP (juddge of the pre
eliminary hearing) of the C
Court of Rome
e, who, by
order dated 1 Ju
uly 2013, ad
dmitted all oof the civil plaintiffs wh
ho requestedd it and staated that
CARIISPAQ/BPER could legitimately be sued for civil liability.
65
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
The Ban
nk has duly appeared
a
as defendant, ccontesting bo
oth the issue
e of the inaddmissibility of
o the
plaintiff''s filings and the fact that it is not posssible to duplicate the requ
uests for com
mpensation already
made in
n Lande's trial. These req
quests were, however, re
ejected by th
he Court, maainly because the
nation of civill liability, already pronouncced in the firsst lawsuit, wass not yet definnitive.
condemn
At the fiirst hearing set for trial, on 5 February 2014, the Co
ourt of Rome,, in a panel, ddeclared that it did
not havee jurisdiction and deferred the hearing tto 8 April 201
14 at the Single-Member C
Court, Fifth Se
ection,
chaired by Laura D'Alessandro. Byy order issuedd in the subse
equent hearin
ng on 4 June 2014, various civil
parties w
were excluded
d from the triaal as it was im
mpossible to trace
t
the alleg
ged damage s uffered by them to
the invesstments madee by the comp
pany that hadd current acco
ounts with CARISPAQ becaause of the conduct
of the deefendants.
It should
d also be noteed that some
e of those alleeged to have been damage
ed by Lande'ss conduct, some of
whom did not presen
nt themselvess as plaintiffs in these crim
minal proceedings, have su ed the Bank under
civil law for reimbursement of the
e damage sufffered, even in
n the absence of any causaal link betwee
en the
damage alleged by th
he plaintiffs and
a any illegaal acts or irre
egularities carried out by CARISPAQ, where
w
definitivvely establisheed. These civill proceedings are still at the preparatory
y stage.
For an aassessment off the potentiaal financial annd economic impacts that could arise ffrom this situation,
during the preparatio
on of these consolidated
c
ffinancial state
ements, CARISPAQ, now BPER following its
merger, has over timee obtained a number
n
of leggal opinions from the law firms
f
that ass ist it in the vaarious
trials an
nd pro veritatte opinions prepared
p
by a respected professional
p
totally
t
unrelaated to the Bank's
B
defence,, as well as co
ontributions frrom another rrespected pro
ofessional.
In particcular, a detaileed study has been
b
made off the merits of
o the judgement of convicttion issued ag
gainst
the bankk, in the lightt of the ruless and principlles applicable
e in our legal system withh regard to paassive
legitimattion of third--party liabilityy and compeensation for damages
d
in criminal
c
proceeedings. Partticular
attention has been given to issuess relating to tthe lack of a causal link be
etween the allleged damag
ge and
the cond
duct of CARISSPAQ.
These asssessments arre now comforted also by tthe judgement of the Supre
eme Court of 3 February 20
015.
Given th
he above, it iss currently be
elieved that t here is only a remote posssibility that t he bank will suffer
adverse consequencees as a result of
o this matterr; consequenttly, in accorda
ance with IAS 37, it was de
ecided
not to m
make any provision.
Judgmeent of the Court
C
of Mod
dena
There arre no changees with respect to the dissclosures published in the 2014 annuaal report, to which
w
referencce is made for further information.
66
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
Interim
m report on op
perations
6. Siignificant su
ubsequent events and outlook for operations
6.1 SSubsequent events
e
Sharreholders' Meeting of the
e Parent Com
mpany
Alloocation of thhe net profit
it for 2014 oof the Paren
nt Companyy
On 1
18 April 2015
5, the Shareh
holders' Meetting approved
d the allocation of the neet profit of Euro
E
15.4
millio
on earned in 2014 by BPE
ER Banca, witth the declaration of a div
vidend of Eurro 9.6 million
n and the
allocaation of Euro
o 131 thousan
nd to the provvision for chaaritable donattions. Accord ingly, Euro 6..9 million
was rretained as paart of the sharreholders’ equuity.
Grouup Managem
ment: new appointmen
a
nts
The ffollowing Dirrectors were appointed att the Shareho
olders' Meeting held on 118 April 2015
5 for the
threee-year period
d 2015-2017:: Ettore Caseelli, Alessandro Vandelli, Giosuè Bold rini, Giulio Cicognani
C
(indeependent), Eliisabetta Gualandri (indepeendent) Valerriana Maria Masperi
M
(indeppendent) and
d Roberto
Maro
otta (independ
dent).
The ffollowing havee also been ap
ppointed as SStatutory Auditors for the three-year
t
perriod 2015-2017: Carlo
Baldii, Francesca Sandrolini,
S
Vincenzo Tardi ni, Diana Rizzzo and Antonio Mele (Chhairman). As Alternate
A
Statu
utory Auditorss: Giorgia Buttturi and Giannluca Spinelli.
The B
Board of Direcctors during the
t meeting oof 21 April 2015 appointed Ettore Casel li as Chairman, Giosuè
Boldrrini as Deputyy Chairman, and
a Alessand ro Vandelli ass Chief Executive Officer. TThe Deputy Chairmen
C
curreently in office are therefo
ore: Alberto Marri, Luigi Odorici and Giosuè Bolddrini. In addition, the
Executive Commiittee has bee
en reconstituuted and con
nsists of: Alberto Marri, G
Giosuè Boldrrini, Luigi
Odorrici, Alessandrro Vandelli (ex
e ufficio mem
mber), Pietro Ferrari
F
and De
eanna Rossi.
6.2 O
Outlook for operations
o
In th
he first part of
o the year, the prospects of a gradual recovery in the Italian eeconomy appe
ear to be
stren
ngthening, acccompanied byy an economicc situation thaat is improvin
ng slowly but ssurely.
For the current yeear, the prospects in terms of profitability are expected to increasee with a trend
d in loans
to cu
ustomers thatt is showing in slight recovvery, which was
w already visible in the fiirst quarter; this
t trend
ough
ht to acceleratte during the rest of the yeear.
The sstill very low level of markket interest raates and the growing com
mpetitiveness of traditional banking
activvities will conttinue to exertt pressure on margins shou
uld, however, be offset by the benefits expected
from a further deccline in the co
ost of fundingg, while a posiitive contribution to reven ues should co
ome from
comm
missions whicch have alread
dy posted a saatisfactory performance in the first quarrter.
67
Consoolidated interim report on operations ass at 31 March 2015
Interim reeport on operaations
2015 is the first year of the Busine
ess Plan durinng which we will
w make the scheduled in vestments an
nd the
first non
n-recurring costs, which willl produce bennefits over the
e entire three
e-year period.
The costt of credit is expected to be
e significantlyy better than in 2014.
Modena, 12 May 201
15
The Board of Dire
ectors
The Chairman
Ettore Caselli
68
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
Consolidateed financial staatements
Conssolidatted fina
ancial sstatem
ments
69
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
Consolidateed financial staatements
Consolidated balance
b
shee
et
(in thousan
nds of Euro)
Asseets
10
0. Cash and cash
h equivalents
20
0. Financial asseets held for tradiing
30
0. Financial asseets designated at fair value throough profit and loss
40
0. Financial asseets available for sale
50
0. Financial asseets held to maturity
60
0. Due from ban
nks
70
0. Loans to custo
omers
80
0. Hedging derivvatives
10
00. Equity investtments
12
20. Property, plaant and equipme
ent
13
30. Intangible asssets
of which: goodw
will
31.03. 2015
31
1.12.2014
3336,751
450,766
1,0779,617
1,033,286
1009,422
110,249
7,5889,460
6,944,927
2,5221,902
2,213,497
1,3445,670
1,709,298
43,8665,112
43,919,681
446,252
36,744
2555,311
257,660
1,0221,064
1,028,931
4993,198
498,009
3880,416
380,416
14
40. Tax assets
a) current
1,2881,670
1,361,322
996,740
181,989
b) deferred
b1) of whicch L. 214/2011
15
50. Non-current assets and disposal groups heldd for sale
16
60. Other assets
1,1884,930
1,179,333
1,0222,979
1,018,156
To
otal assets
Liab ilities and shareholders' equ
uity
10. D
Due to banks
20. D
Due to customers
30. D
Debt securities in
i issue
40. FFinancial liabilities held for trading
50. FFinancial liabilities designated at
a fair value throough profit and loss
60. H
Hedging derivattives
80. TTax liabilities
a) current
b) deferred
100.O
Other liabilities
110. Provision for teermination indem
mnities
r
and charges
120. Provisions for risks
a) pensions and
d similar committments
b) other provisions
140. Valuation reserrves
170. Reserves
180. Share premium reserve
190. Share capital
200. Treasury sharess
210. Minority interests
220. Profit (Loss) forr the period
otal liabilities and shareholderrs' equity
To
2,817
2,817
6556,629
1,085,733
60,60 4,875
60,652,920
6
31.03. 2015
31
1.12.2014
6,8449,585
6,479,558
33,1332,463
33,964,259
11,0774,649
10,518,262
2995,376
243,210
1,0887,772
1,700,614
118,718
12,986
1448,368
118,794
6,698
5,263
1441,670
113,531
1,8002,891
1,527,412
2115,834
221,919
3666,990
355,775
1446,205
145,078
2220,785
210,697
2443,314
186,840
2,3114,835
2,301,760
9330,073
930,077
1,4443,925
1,443,925
(77,256)
(7,259)
6442,141
639,991
445,197
14,797
60,60 4,875
60,652,920
6
71
Consoolidated interim report on operations ass at 31 March 2015
onsolidated finnancial statem
ments
Co
Consolidated inco
ome statement
(iin thousands of Euro)
Caption s
10. Intterest and similarr income
20. Intterest and similarr expense
31.03.20015
31.03
3.2014
431,,035
494,548
4
(116,9940)
(16
64,728)
329,820
me
30. Neet interest incom
314,0095
40. Commission income
188,,020
184,023
1
50. Commission expense
(8,8817)
(1
12,573)
179,2203
171,450
ncome
60. Neet commission in
70. Divvidends and similar income
80. Neet trading incomee
90. Neet hedging gains (losses)
(
100. Gaains/losses on disposal or repurch
hase of:
a) loans
a
for sale
e
b) financial assets available
h to maturity
c) financial assets held
d) financial liabilities
e
110. Neet results on finaancial assets and liabilities designaated at fair value
120. N et interest and other banking income
130. Neet impairment ad
djustments to:
a) loans
a
for sale
e
b) financial assets available
a
d) other financial assets
es
140. N et profit from fiinancial activitie
249
574
20,,413
4,290
355
231
28,,438
67,761
3,,804
107
25,,092
67,430
(92)
-
(3366)
224
(3,1148)
(8,982)
539,6605
565,144
(149,9972)
(21
14,710)
(147,5504)
(2
211,820)
(6,3347)
(466)
3,,879
(2,424)
389,6633
350,434
(323,8806)
(32
22,923)
a) payroll
(199,3322)
(1
196,796)
b) other administraative costs
(124,4484)
(1
126,127)
r
and charges
190. Neet provision for risks
(14,0096)
(6,658)
200. Neet adjustments to
o property, plantt and equipment
(9,9944)
(1
10,402)
210. Neet adjustments to
o intangible asse
ets
(7,3386)
(5,955)
220. Otther operating ch
harges/income
46,,307
48,455
(308,9925)
(29
97,483)
(1,8886)
(973)
dministrative cossts:
180. Ad
230. O
Operating costs
240. Prrofit (Loss) from equity
e
investmen
nts
270. Gaains (Losses) on disposal
d
of investments
113
1
280. Prrofit (Loss) from
m current operattions before tax
78,9935
51,979
290. Income taxes on cu
urrent operations for the period
(27,2234)
(2
20,760)
m current operattions after tax
300. Prrofit (Loss) from
51,7701
31,219
320. N et profit (loss) for
f the period
51,7701
31,219
or the period perttaining to minoritty interests
330. Neet profit (loss) fo
(6,5504)
(2,947)
340. Prrofit (Loss) for the
t period pertaining to the Parrent Company
45,1197
28,272
Earnings per
shhare
(Euuro)
31.03.20015
Earnin
ngs per
share
(Euro)
31.03
3.2014
Basic EPS
0..094
0.084
Diluted EP
PS
0..094
0.084
72
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
Consolidateed financial staatements
Stattement of co
onsolidated
d compreheensive incom
me
(in thousan
nds of Euro)
oss) for the perriod
10.. Net profit (lo
Other income items, net off income taxes, without releasse to the incom
me
statement
efit plans
40.. Defined bene
60.. Portion of the
e valuation reserves of equity innvestments carrried at equity
Other income items, net off income taxes, with release to
o the income
statement
edges
90.. Cash flows he
ets available for sale
100.. Financial asse
e
of income (net of inccome taxes)
130. Total other elements
ehensive incom
me (Captions 100+130)
140. Total compre
e pertaining to m
minority interestts
150.. Total comprehensive income
d comprehensivve income attriibutable to the Parent Compa
any
160. Consolidated
31 .03.2015
31.03.2014
51,701
31,219
613
(9,001)
(1,050)
(1,438)
(2,104)
61,295
58,754
449
35,974
25,984
110,455
57,203
9,449
10,155
101,006
47,048
73
74
-
-
-
-
-
-
-
1,544,887
-
9 7 4 , 0 14
2 , 7 3 2 , 8 15
1,982,956
749,859
235,895
a) o rdinary shares
V a lua t io n re s e rv e s
E quit y ins t rum e nt s
-
-
-
-
-
-
-
-
1, 0 9 4 , 7 5 4
1,094,754
-
684,473
2 , 7 3 4 , 0 11
2,490,771
243,240
18 9 , 6 8 2
S ha re c a pit a l:
a) o rdinary shares
V a lua t io n re s e rv e s
E quit y ins t rum e nt s
M ino rit y int e re s t s
-
-
-
16 , 114
4,032,944
6 7 8 , 8 16
N e t pro f it ( lo s s )
G ro up s ha re ho lde rs ' e quit y
-
-
-
(7 , 2 7 4 )
T re a s ury s ha re s
b) o ther
a) fro m pro fits
R e s e rv e s :
S ha re pre m ium re s e rv e
b) o ther shares
4 , 8 7 0 , 14 0
639,991
29,781
(7 , 2 6 1)
-
235,895
749,859
1,982,956
2 , 7 3 2 , 8 15
9 7 4 , 0 14
-
1,544,887
1, 5 4 4 , 8 8 7
6 7 8 , 8 16
4,032,944
16 , 114
(7 , 2 7 4 )
-
18 9 , 6 8 2
243,240
2,490,771
2 , 7 3 4 , 0 11
684,473
-
1,094,754
1, 0 9 4 , 7 5 4
C ha nge s B a la nc e a s a t
in o pe ning
1.1.14
ba la nc e s
-
4 , 8 7 0 , 14 0
639,991
M ino rit y int e re s t s
B a la nc e a s
a t 3 1.12 .13
-
29,781
N e t pro f it ( lo s s )
G ro up s ha re ho lde rs ' e quit y
-
-
-
(7 , 2 6 1)
T re a s ury s ha re s
b) o ther
a) fro m pro fits
R e s e rv e s :
S ha re pre m ium re s e rv e
b) o ther shares
-
1, 5 4 4 , 8 8 7
C ha nge s B a la nc e a s a t
in o pe ning
1.1.15
ba la nc e s
S ha re c a pit a l:
B a la nc e a s
a t 3 1.12 .14
-
-
-
-
-
-
-
-
-
-
-
-
D iv ide nds
a nd o t he r
a llo c a t io ns
-
-
(16 , 114 )
-
-
-
-
16,114
16 , 114
-
-
-
-
R e s e rv e s
-
-
-
-
-
-
-
-
-
-
-
-
-
D iv ide nds
a nd o t he r
a llo c a t io ns
A llo c a t io n o f prio r ye a r
re s ult s
-
(2 9 , 7 8 1)
-
-
-
-
29,781
29,781
-
-
-
-
R e s e rv e s
A llo c a t io n o f prio r ye a r
re s ult s
2 19
14 , 7 4 7
-
-
-
329
(7,094)
21,732
14 , 6 3 8
-
-
(1)
(1)
C ha nge s in
re s e rv e s
(3 , 8 8 6 )
(5 2 6 )
-
-
-
827
(4,568)
(671)
(5 , 2 3 9 )
-
-
-
-
C ha nge s in
re s e rv e s
-
-
-
-
-
-
-
-
(2 )
-
-
-
-
(2)
-
(2 )
Is s ue o f
ne w
s ha re s
3
-
-
7
-
-
-
-
-
(4 )
Is s ue o f
ne w
s ha re s
Statement of changes in consolidated shareholders' equity
-
-
-
-
-
-
-
-
-
-
-
-
-
P urc ha s e
of
t re a s ury
s ha re s
(4 )
-
-
(4 )
-
-
-
-
-
-
-
-
-
P urc ha s e
of
t re a s ury
s ha re s
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
E xt ra o rdina ry C ha nge s in D e riv a t iv e s
dis t ribut io n
e quit y o n t re a s ury
o f div ide nds ins t rum e nt s
s ha re s
T ra ns a c t io ns o n s ha re ho lde rs ' e quit y
C ha nge s during t he pe rio d
-
-
-
-
-
-
-
-
-
-
-
-
E xt ra o rdina ry C ha nge s in D e riv a t iv e s
dis t ribut io n
e quit y o n t re a s ury
o f div ide nds ins t rum e nt s
s ha re s
T ra ns a c t io ns o n s ha re ho lde rs ' e quit y
C ha nge s during t he pe rio d
2,829
(6 , 7 7 3 )
-
-
-
-
-
-
-
(8 5 7 )
-
(3,087)
(3 , 0 8 7 )
-
-
-
-
-
-
-
-
-
-
-
-
-
(1, 8 14 )
1, 12 3
-
-
-
-
-
-
-
(3 7 2 )
-
(319)
(3 19 )
Sto ck
C ha nge s in
o pt io ns pa rt ic ipa t o ry
int e re s t s
-
-
-
-
-
-
-
-
-
-
-
-
Sto ck
C ha nge s in
o pt io ns pa rt ic ipa t o ry
int e re s t s
10 , 15 5
47,048
3 1, 2 19
-
-
25,984
-
-
-
-
-
-
-
C o m pre he ns iv e
inc o m e a s a t
3 1.0 3 .2 0 14
10 1, 0 0 6
9,449
5 1,
1 701
-
-
58,754
-
-
-
-
-
-
-
C o m pre he ns iv e
inc o m e a s a t
3 1.0 3 .2 0 15
(in thousands of Euro)
6 4 2 , 14 1
6,504
(2 )
-
5 2 , 16 2
119,357
323,165
442,522
43,080
-
97,875
97,875
M ino
i rit
it y
int e re s t s
-
4,095,860
28,272
(7 , 2 7 2 )
-
15 8 , 6 4 3
236,144
2,054,434
2,290,578
6 2 4 , 15 6
-
1,001,483
1, 0 0 1, 4 8 3
G ro up
687,376
-
2,947
(2 )
-
57,352
-
474,183
4 7 4 , 18 3
59,945
-
92,951
92,951
M ino rit y
int e re s t s
S ha re ho lde rs ' e quit y a s a t
3 1.0 3 .2 0 14
4,970,088
-
4 5 , 19 7
(7 , 2 5 6 )
-
2 4 3 , 3 14
625,934
1,688,901
2 , 3 14 , 8 3 5
930,073
-
1,443,925
1, 4 4 3 , 9 2 5
G ro up
S ha re ho lde rs ' e quit y a s a t
3 1.0 3 .2 0 15
Consoolidated interim report on operations ass at 31 March 2015
onsolidated finnancial statem
ments
Co
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Co
onsolid
dated explana
e
atory notes
n
75
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Form
m and conteent of the Co
onsolidated i nterim report as at 31 March
M
2015
Info
ormation on the consolid
dated balanc e sheet
Info
ormation on the consolid
dated incomee statement
Info
ormation on risks and related hedgin g policy
Info
ormation on the consolid
dated sharehholders' equitty
page 79
page 85
page 101
page 115
page 127
Key too abbreviations in tables:
FV: faair value
FV*:fa
fair value excludi
ding variations due
du to changes inn the creditwortthiness of the isssuer since the isssue date
NV: nnominal or notioonal value
BV: bo
book value
L1: Faiir value hierarchhy - Level 1
L2: Faiir value hierarchhy - Level 2
L3:Fair
ir value hierarchy
hy - Level 3
#: nott applicable
77
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Forrm and contentt of the Consolidated interim report
as at 31 March
M
20
015
79
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
1. Introd
duction
The conssolidated quaarterly report as at 31 Ma rch 2015 ("th
he report") off the Banca ppopolare dell'E
Emilia
Romagna Group has been preparred in compliiance with arrt. 154-ter off the Consoliddated Financce Act
("CFA" - Decree 58 off 24 February 1998 and subbsequent ame
endments).
2. Declaaration of co
ompliance wiith Internatioonal Financial Reporting
g Standards
The figures contained
d in the reportt have been ddetermined in
n accordance with
w the accoounting rules set
s by
the IAS//IFRS endorseed by the European Comm
mission unde
er the proced
dure referred to in art. 6 of EC
Regulation 1606/200
02 and alreadyy used in the preparation of
o the consolidated financiaal statementss as at
31 December 2014, as
a well as by the IAS/IFRS tthat became mandatory
m
fro
om 2015.
In any caase, this docu
ument does not constitute an "interim financial
f
report" as intendeed by International
Accountting Standard (IAS) 34.
3. Geneeral policies
This rep
port consists of the con
nsolidated baalance sheet, the consoliidated incom
me statementt, the
statement of consollidated comp
prehensive inncome and the
t
statemen
nt of changees in consolidated
sharehollders' equity, as well as th
he consolidateed explanatorry notes and the informattion on operaations.
The scheedules providee comparative
e figures from
m the balance sheet as at 31 December 22014 and from the
income sstatement as at 31 March 2014.
2
The finaancial statements and rules for their preparation comply with the provisioons of Circulaar no.
262/200
05 issued by the Bank of Italy with thhe Regulation dated 22 De
ecember 20005 and subsequent
amendm
ments.
Unless sstated otherw
wise, the amo
ounts shown in the finan
ncial statements and expllanatory note
es are
expresseed in thousands of Euro.
The balaance sheet, income state
ement and sttatement of changes in shareholderss' equity of Banca
popolaree dell'Emilia Romagna
R
s.c., the Parent Coompany, are provided
p
in attachments too this report.
The general principlees adopted for the preparaation of the quarterly
q
repo
ort, the consoolidation principles
and the accounting policies applied in the pphases of recognition, classification, measurement and
derecognition of asseets and liabiliities, as well as the bases for recognising revenues and costs, arre the
same as those reporteed in Part A of the Explana tory notes to the 2014 con
nsolidated fin ancial statem
ments.
80
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
4. Sccope of consolidation and methodoloogy
Inveestments in subsidiariees:
Name
1.
2.
3.
4.
5.
6.
7.
Banco di Sardegna
s.p.a.
Banca di Sassari s.p.a.
Operattional
head office
o
Registtered
head ooffice
Type of
relatio
onship
(1
1)
Sha
are
capital
in Euro
Naturre of holding
Pareent
compaany
% held
Sassari
Cagliari
1
155,24
47,762
B.P.E..R.
50.583
Sassari
Sassari
1
74,45
58,607
B. Sarrd.
79.722
B.P.E..R.
18.174
Cassa di Risparmio di
Bra s.p.a.
Bper (Europe)
International s.a.
Bra
Bra
1
27,30
00,000
B.P.E..R.
67.000
Luxembourg
Luxemboourg
1
30,66
67,500
B.P.E..R.
100.000
EMRO Finance Ireeland
ltd.
Nadia s.p.a.
Dublin
Dublin
1
15
55,000
B.P.E..R.
100.000
Modena
Modena
1
87,00
00,000
B.P.E..R.
100.000
BPER Services
s.cons.p.a.
Modena
Modena
1
10,92
20,000
B.P.E..R.
94.038
B. Sarrd.
4.762
Optim
ma
0.400
B.S.SS.
0.400
Sardaleaasing
0.400
B.P.E..R.
51.404
8.
Sardaleasing s.p.aa.
Milan
Sassari
1
93,95
51,350
B. Sarrd.
46.933
9.
Optima s.p.a. S.I.M
M.
Modena
Modena
1
13,00
00,000
B.P.E..R.
100.000
10. Tholos s.p.a.
Sassari
Sassari
1
17,01
15,995
B. Sarrd.
100.000
11. Numera s.p.a.
Sassari
Sassari
1
2,06
65,840
B. Sarrd.
100.000
12. Mutina s.r.l.
Modena
Modena
1
10,000
1
B.P.E..R.
100.000
13. Nettuno Gestionee
Crediti s.p.a.
14. Modena Terminal s.r.l.
Bologna
Bologna
1
1,50
00,000
B.P.E..R.
100.000
Campoga
alliano
Campoggalliano
1
8,00
00,000
B.P.E..R.
100.000
15. Emilia Romagna Factor
F
s.p.a.
16. Galilei Immobiliarre
s.r.l.
17. Melior Valorizzazioni
Immobili s.r.l.
18. Estense Covered Bond
s.r.l.
19. BPER Trust Comp
pany
s.p.a.
20. Polo Campania s.rr.l.
Bologna
Bologna
1
36,39
93,940
B.P.E..R.
94.403
Modena
Modena
1
10
00,000
Nadiia
100.000
Milan
Milan
1
10,000
1
B.P.E..R.
100.000
Coneglian
no
Conegliaano
1
10,000
1
B.P.E..R.
60.000
Modena
Modena
1
50
00,000
B.P.E..R.
100.000
Avellino
Avellino
1
11
10,000
B.P.E..R.
100.000
21. Adras s.p.a.
Milan
Milan
1
1,95
54,535
B.P.E..R.
100.000
22. Italiana Valorizzazzioni
Immobiliari s.r.l.
Milan
Milan
1
2,00
00,000
B.P.E..R.
100.000
% of
voting
rights
(2)
51.000
The ""% of voting rig
ights" column is
i only filled inn cases where the actual sharre of votes exe
xercisable at thee Ordinary
Shareeholders' Meetin
ng is different fro
rom the share heeld in the compaany's share capit
ital.
Key
(1) Tyype of relationshhip:
1 Majority of vot
otes at the ordinaary shareholderrs' meeting.
(2) Vooting rights at ordinary
o
shareho
olders' meeting, distinguishing between
b
actual and
a potential.
81
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
Significcant assesssments an
nd assumpttions madee when de
etermining the scopee of
consoliidation
As regarrds the compaanies included
d in the scopee of consolidation, no factts and circum stances took place
during th
he first quarteer of 2015 that might channge our assesssment of posssession of coontrol, joint co
ontrol
or signifficant influencce.
For furth
her details ab
bout changes in the scope of consolidattion until 31 March
M
2015, please refer to
t the
Group In
nterim Reportt on Operations under "Scoope of consoliidation of the BPER Group"".
Other iinformation
n
This doccument is the result of con
nsolidating thee interim reports of the Ba
anks and Com
mpanies making up
the Grou
up or, in any case,
c
under itss control.
For conssolidation purrposes we use
ed the reportts prepared in
n accordance with IAS/IFRSS by the indivvidual
banks an
nd financial companies sub
bject to Bankk of Italy supe
ervision, as well as by EMRRO Finance Irreland
ltd. All o
of the other Group
G
compan
nies that are ssubject to loccal accounting
g principles haave had to prrepare
accountiing scheduless with figures restated in acccordance witth IAS/IFRS.
As regarrds the compaanies in which
h a significantt interest is he
eld (20% or more),
m
their finnancial statem
ments
at 31 Deecember 2014
4 have been used.
Alongsid
de the criteriaa used to dete
ermine the scoope of consolidation for acccounting purrposes, it shou
uld be
rememb
bered that for supervisory reporting
r
purpposes, while remaining
r
witthin the samee criteria, the scope
of conso
olidation onlyy includes banks/compani es that form part of the Banking Gro up and those
e that
meet the requiremen
nts of art. 19
9 of EU Reguulation 575/2
2013 (CRR). The followingg companies have
thereforre been exclud
ded from the scope of con solidation forr supervisory purposes: Meelior Valorizzaazioni
Immobili s.r.l., Italiana Valorizzazioni Immobbiliari s.r.l., Adras
A
s.p.a., Galilei Immoobiliare s.r.l., Polo
Campania s.r.l., Mutin
na s.r.l., Nettu
uno Gestione Crediti s.p.a.., Estense Cov
vered Bond s..r.l. and BPER Trust
Compan
ny s.p.a.
5. Subseequent even
nts
This rep
port was apprroved on 12 May 2015 bby the Board of Directorss of Banca poopolare dell’E
Emilia
Romagna s.c.
Referencce is made to
t the detaile
ed informatioon provided in the "Significant subseequent events and
outlook for operation
ns" section of the
t Group's innterim reportt on operation
ns.
6. Other aspects
Amenddments to acccounting sttandards enndorsed by the
t Europeaan Commisssion
As requ
uired by IAS 8, the follo
owing table shows the new
n
internatiional accounnting standards or
amendm
ments to stand
dards already in force, whoose application
n is mandatorry from 2014..
82
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
EEC Approval
Regulation
634//2014
Title
Regulation
n that adopts IFFRIC 21 - Leviess
In force frrom years
begin
nning
1 January 2015
This interp
pretation deals w
with both the recognition of a liability for thhe
payment off a levy in the ccase where the liability falls within the scope oof
IAS 37 and
d the recognitioon of a liability for
f the paymentt of a levy whosse
timing and amount are unccertain.
1361
1/2014
EU Comm
mission Regulaation 1361/20
014 of 18 December
D
201 4,
published in the Official JJournal L 365 of
o 19 Decembe
er 2014, amendds
the follow
wing internatiional accountting and fina
ancial reportinng
standards: IFRS 3, IFRS 133 and IAS 40
1 January 2015
The intentiion of the amenndments is to clarify
c
that IFRS
S 3 should not bbe
applied when accounting for a joint ventture; the amend
dment to IFRS 113
clarifies that the referencces to financial assets and liab
bilities should bbe
c
by IFR
RS 9, while thhe
read as applicable to aall contracts covered
amendmen
nt to IAS 40 speecifies that the standard deterrmines whetherr a
property iss to be considerred for function
nal use or for in
nvestment, not tto
determine whether the prooperty in question is a business combination.
The following tab
ble shows the
e new internnational accou
unting standa
ards or amenndments to standards
s
alreaady in force, whose appliccation is manndatory from 1 January 2016 or later date (if the financial
stateements do nott coincide witth the calendaar year). The Group has de
ecided not to take advantage of the
possiibility of earlyy implementattion.
EEC Approval
Regulation
28/2015
Title
Improvements to IFRS - 22010-2012 Cyccle.
In force frrom years
begin
nning
1 January 2016
The purposse of the annua l improvementss is to deal with necessary topiccs
relating to inconsistencies in IFRSs or clarifications in term
minology that a re
ularly urgent, buut that have bee
en discussed by
y the IASB durinng
not particu
the projectt cycle that beegan in 2011. In some cases, the changes a re
clarification
ns or correctionns to these princciples (IFRS 8, IA
AS 16, IAS 24 annd
IAS 38), in others, thee changes invvolve amendme
ents to existinng
mation on how
w they are to bbe
regulationss or provide addditional inform
applied (IFR
RS 2 and 3).
29/2015
EU Commiission Regulatioon 2015/29 off 17 December 2014, publisheed
in the Official Journal L 5 of 9 January, adopts Amendments to IAS 119
- Defined Benefit
B
Plans: EEmployee Contributions.
1 January 2016
The amend
dment to IAS 19 was necesssary to facilitatte, under certaain
conditions, the accountinng for defined benefit plans that provide fo
for
contributio
ons to be madde by employe
ees or third pa
arties. If certaain
conditions are not compl ied with, recog
gnition of these
e contributions is
plex, because thhey have to be allocated to ea
ach period of thhe
more comp
plan by an actuarial
a
calculaation of the liability involved.
83
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
Documeents of the Supervisoryy Authorityy
On 20 January 2015,, the Bank off Italy publishhed the 7th amendment
a
of
o Circular noo. 272/2008 which
w
aligns th
he definitionss of impaired financial asssets with the new conceptts of non-perfforming expo
osures
and forb
bearance intro
oduced by the ITS, in ordeer to establish a single de
efinition for bboth individuaal and
consolid
dated supervissory reporting
g.
For supeervisory reporrting, impaired
d financial asssets are now classified
c
into
o the followingg categories:
 non-perform
ming;
 unlikely to paay loans;
 past due loan
ns and/or imp
paired overdraawn exposure
es;
the sum of these cateegories corresponds to thee non-perform
ming exposurres aggregate established in the
ITSs.
The conccepts of watchlist and restrructured loanns have been eliminated.
e
In addition, the categ
gory of “forborne exposuress” is introducced, coinciding
g with the "exxposures subject to
tolerance" category in
ncluded in the
e Finrep sectioon of the consolidated repo
orting for suppervisory purp
poses.
The new
w categories of non-perform
ming exposurees apply to caash assets (loa
ans and debt ssecurities) and “off
balance sheet” items (guarantees given, irrevoocable and revvocable comm
mitments to ggrant loans), other
than thee financial insstruments classified as “Fiinancial assetts held for tra
ading” and deerivative conttracts.
The deccision to classsify financiaal assets as non-performiing is made regardless oof any secured or
unsecureed guaranteess that assist them.
The key aspects of thee new categories are discu ssed below:
 unlikely to pay
p loans: lo
oans, other thhan non-perfforming loanss, that the bbank considerrs are
unlikely to be
b repaid in full
f (principal and/or interrest) without recourse to ssuch action as
a the
enforced collection of guaarantees. Expoosures to retaail customers may be classiified in the un
nlikely
to pay catego
ory at the ind
dividual transaaction level, rather than at individual cu stomer level, if the
bank does not
n believe that the condditions exist for classifyin
ng the entire exposure to
o that
customer in that
t
categoryy;
 past due loans and/or impaired overdrrawn exposurres: exposuress, other than those classified as
non-perform
ming or unlikely to pay, tha t are past due and/or overdrawn at thee reporting daate by
more than 90
9 days and that
t
exceed a pre-determined materialiity limit. Pastt due loans and/or
impaired oveerdrawn exposures may bee determined at individual debtor level oor - solely for retail
exposures - at
a individual transaction
t
levvel;
 forborne exp
posures: these
e exposures (fforbearance) comprise:
c

non-perrforming exposures with forbearance measures: these exposurres represent one
aspect, depending on the circumsstances, of no
on-performing
g loans, unlikeely to pay loaans or
past du
ue loans and//or impaired overdrawn exposures;
e
acccordingly, thhey do not fo
orm a
separate category off impaired ass ets;

forborne performing exposures.
Audit
The repo
ort is not sub
bject to a form
mal review byy the auditorss Pricewaterh
houseCooperss s.p.a., but only to
routine aaccounting ch
hecks.
84
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Infformatio
on on th
he Conssolidated balance sheeet
85
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Asssets
Fin
nancial assets
a
held
h
for trading
g
Caption 20
0
2.1 Financial asssets held for trading: breaakdown by se
ector
Desccription/Amou
unts
31.03.2015
L1
A. Caash assets
1. Debt securities
L2
331.12.2014
L3
L1
L2
L3
412,1055
275,016
23
385,688
319,119
26
1
1.1 Structured seccurities
22,0988
1,402
-
3,300
1,358
-
1
1.2 Other debt seccurities
390,0077
273,614
23
382,388
317,761
26
72,1366
54,3044
-
91
-
1
-
39,112
45,804
-
68
-
1
-
4
4.1 Repurchase ag
greements
-
-
-
-
-
-
4
4.2 Other
-
-
-
-
-
-
538,545
275,107
24
470,604
319,187
27
2. Equities
3. UCITS units
4. Loans
Tota l A
B. Deerivatives
1. Financial derivaatives
-
234,174
31,767
-
211,331
32,137
1
1.1 Trading
-
191,918
31,767
-
155,968
32,137
1
1.2 Connected witth the fair value
option
-
42,256
-
-
55,363
-
1
1.3 Other
-
-
-
-
-
-
-
-
-
-
-
-
2
2.1 Trading
-
-
-
-
-
-
2
2.2 Connected witth the fair value
option
-
-
-
-
-
-
2
2.3 Other
-
-
-
-
-
-
-
234,174
31,767
-
211,331
32,137
538,545
509,281
31,791
470,604
530,518
32,164
2. Credit derivativves
Tota l B
Tota l A+B
The ffinancial derivattives connected
d with the fair value option are
a mainly asso
ociated with deb
ebt securities cllassified as
“Finanncial liabilities designated
d
at faiir value throughh profit and loss” (liability captio
on 50).
87
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
2.2 Finaancial assets held for trad
ding: breakdoown by issue
er/borrower
Descripttion/Amounts
A. Cash aassets
1. Deb
bt securities
a) Governments and
d Central Banks
b) O
Other public entiities
c) Baanks
d) O
Other issuers
2. Equ ity instruments
a) Baanks
b) O
Other issuers
- in
nsurance companies
- financial companies
- no
on-financial comp
panies
- oth
her
3. UCI TS units
4. Loa ns
a) Governments and
d Central Banks
Other public entiities
b) O
c) Baanks
d) O
Other parties
31.03.2015
31.12
2.2014
687,144
469,496
16
176,012
41,620
70
04,833
446,960
17
226,597
31,259
72,228
15,373
56,855
39,181
3
9,514
29,667
5,1444
2,912
695
40
51,016
26,715
-
-
54,304
45,804
4
-
-
-
-
-
-
-
-
-
-
Total A
813,676
78
89,818
B. Derivaative instrumen
nts
a) Banks
142,459
138,914
- fair value
142,459
138,914
1
b) Custtomers
123,482
104,554
- fair value
123,482
104,554
1
Total B
Total (A+
+B)
88
265,941
24
43,468
1,079,617
1,03
33,286
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Fin
nancial assets
a
designat
d
ted at fa
air value throu gh proffit
and
d loss
Caption 30
0
3.1 Financial asssets designated at fair vallue through profit
p
and losss: breakdow
wn by sector
31.03.2015
Desccription/Amou
unts
1. Deebt securities
L1
L2
15,7888
21,928
331.12.2014
L3
363
L1
L2
16,541
24,838
L3
388
1
1.1 Structured seccurities
-
-
-
-
4,000
-
1
1.2 Other debt seccurities
15,7888
21,928
363
16,541
20,838
388
3
63,2999
-
489
2,533
-
5,019
-
3
57,107
-
465
1,280
-
4,151
5,476
-
-
-
-
-
-
-
2. Equity instrumentts
CITS units
3. UC
4. Loans
4
4.1 Structured
-
-
-
-
-
-
Tota l
4
4.2 Other
79,0900
24,950
5,382
73,651
26,583
10,015
Cost
72,5722
24,433
9,598
69,100
26,270
13,835
Finaancial assets designated at
a fair value tthrough proffit and loss: use
u of the fairr value optio
on
Desccription
a) N
Natural hedges using
u
derivativess
b) N
Natural hedges using
u
other finan
ncial instrumentts
c) O
Other cases of acccounting mismatches
d) Financial instrum
ments managed and measured aat fair value
e) Structured produ
ucts with embed
dded derivativess
Tota l
31
1.03.2015
15,706
93,716
109,422
89
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
3.2 Finaancial assets designated at fair value through proffit and loss: breakdown
b
bby borrower/iissuer
Descripttion/Amounts
31.03.2015
31.12
2.2014
38,079
12,280
9,958
15,841
41,767
4
12,057
10,856
18,854
492
492
4,619
4,619
- in
nsurance companies
-
-
- financial companies
-
-
492
4,619
-
-
70,851
63,863
6
-
-
-
-
-
-
-
-
1. Debt ssecurities
a) Governments and
d Central Banks
Other public entiities
b) O
c) Baanks
d) O
Other issuers
2. Equityy instruments
a) Baanks
b) O
Other issuers:
- no
on-financial comp
panies
- otther
3. UCITSS units
4. Loans
a) Governments and
d Central Banks
b) O
Other public entiities
c) Baanks
d) O
Other parties
Total
90
-
-
109,422
11
10,249
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Fin
nancial assets
a
available
a
e for sale
Caption 40
0
4.1 Financial asssets available
e for sale: breeakdown by sector
s
Desccription/Amou
unts
31.03.2015
L1
1. Deebt securities
L2
6,652,235
331.12.2014
L3
398,612
L1
10,204
L2
6,105,478
L3
334,382
10,177
1.1
1 Structured securities
-
-
-
-
-
-
1.2
2 Other debt securrities
6,652,235
398,612
10,204
6,105,478
334,382
10,177
2. Eq
quity instrumen
nts
8,296
5
366,183
2,702
-
339,249
2.1
1 Valued at fair value
8,296
5
315,997
2,702
-
289,088
2.2
2 Valued at cost
3. UC
CITS units
4. Lo
oans
Tota l
-
-
50,186
-
-
50,161
33,899
-
-
120,026
-
32,645
-
-
120,294
-
6,694,430
398,617
496,413
6,140,825
334,382
469,720
Finanncial assets availlable for sale aree measured at fa
fair value on thee basis described
d in Part A of the
he Explanatory notes
n
in the
2014
4 consolidated fin
inancial statemeents.
“Debtt securities” maainly relate to in
nvestments madde in governmeent bonds with the aim of retuurning to a morre balanced
assett sensitivity struccture.
Equity
ty instruments arre represented by
b stable equityy investments.
The U
UCITS units conssist of closed-en
nd real estate annd investment fu
unds.
4.2 Financial asssets available
e for sale: breeakdown by borrower/iss
b
uer
Desccription/Amou
unts
31.03.20015
31
1.12.2014
7,061,0051
4,964,,280
18,,672
1,756,,120
321,,979
6,450,037
4,780,108
1,456,521
213,408
374,4484
180,,141
194,,343
341,951
180,135
161,816
- insurance com
mpanies
55 ,332
55,332
- financial comp
panies
888,590
51,771
- non-financial companies
c
500,274
54,613
147
100
153,9925
152,939
-
-
7,589,4460
6,944,927
1. Deebt securities
a) Government an
nd Central Bankss
b) Other public en
ntities
c) Banks
d) Other issuers
uity instruments
2.Equ
a) Banks
b) Other issuers:
- other
CITS units
3. UC
4. Lo
oans
a) Government an
nd Central Bankss
ntities
b) Other public en
c) Banks
d) Other parties
Tota l
91
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
4.3 Miccro-hedged fiinancial assets available ffor sale
31.03.2015
31.12
2.2014
1. Financcial assets coveered by specificc fair value heddges
a) Interest rate risk
b) Price risk
c) Foreeign exchange riisk
d) Cred
dit risk
e) Multiple risks
-
-
2. Financcial assets coveered by specificc cash flow heddges
a) Interest rate risk
b) Foreeign exchange risk
c) Otheer
295,754
295,754
-
27
71,680
271,680
-
Total
295,754
27
71,680
Finan
ncial asssets helld to maaturity
Capttion 50
5.1 Finaancial assets held to maturity: breakddown by secto
or
31.03.20015
FV
VB
1. Debt securities
- Stru
uctured securities
- Other
2. Loans
Level 1
Level 2
2,521,902 2,616,369
Levvel 3
148,237
-
31.12. 2014
FV
VB
Level 1
2,213,49
97
2,242,709
Level 2
Level
L
3
154,999
-
-
-
-
-
-
-
-
2,521,902
2,616,369
148,237
-
2,213,497
2,242,709
154,999
-
-
-
-
-
-
-
-
-
More thann half of the poortfolio comprisees government debt securities,, in order to sup
pport net intereest income and reduce
its exposuure to interest rate
ra fluctuations,
s, given the a forreseeable scenaario of exception
nally low risk-freee rates for a lon
ng time
to come.
Key
FV = fair vvalue
BV = bookk value
92
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
5.2 Financial asssets held to maturity:
m
bre akdown by isssuer/borrow
wer
Typee of transactio
on/Amounts
31.03.20015
31
1.12.2014
1. Deebt securities
a) Governmentss and Central Baanks
b) Other public entities
c) Banks
d) Other issuerss
2,521,9902
1,526,,322
10,,009
755,,040
230,,531
2,213,497
1,501,136
9,973
529,313
173,075
2. Lo
oans
a) Governmentss and Central Baanks
b) Other public entities
c) Banks
d) Other entitiees
-
-
-
-
-
-
-
-
-
-
Tota l
2,521,9902
2,213,497
Tota l fair value
2,764,6606
2,397,708
93
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
Due from ba
anks
Capttion 60
6.1 Duee from bankss: breakdown by sector
Type of transaction/A
Amounts
A. Due frrom Central Baanks
1. Resttricted deposits
2. Reseerve requiremen
nt
3. Repu
urchase agreem
ments
4. Other
B. Due frrom banks
1. Loan
ns
1.1. Current accoun
nts and demand deposits
1.2. Restricted depo
osits
1.3. Other loans
- Reepurchase agreem
ments
- Fiinance leases
-O
Other
2. Debt securities
2.1 SStructured securities
2.2 O
Other debt secu
urities
Total
Key
BV = bookk value
94
Total
Total
31.03.201
15
31.12.2014
BV
BV
210,825
210,825
2
1,134,845
1,0
057,805
420,922
4
342,794
3
294,089
2
11
19,094
119,094
1,59
90,204
1,450,281
733,829
376,225
340,227
38
31,735
42
294,051
308,450
3
77,040
77,040
139,923
139,923
1,345,670
1,70
09,298
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Loa
ans to custome
c
ers
Caption 70
0
7.1 Loans to customers: breaakdown by seector
Typee of transactio
on/
Valu es
2. Repurchase agrreements
3. Mortgage loanss
4. Credit cards, peersonal
loans and assign
nments
of one-fifth of salary
s
5. Finance leases
6. Factoring
7. Other loans
Debtt securities
8. Structured secu
urities
9. Other debt secu
urities
Tota l
311.12.2014
Boook value
Boook value
Doubtful lo
oans
Performing
loans
Loan
ns
1. Current accounts
31..03.2015
Puurchased
Doubtful loans
Pe
erforming
loans
Other
PPurchased
Other
36,896,313
3
-
6,586,385
37,004,014
3
-
6,523,797
5,352,781
-
1,103,467
5,423,601
-
1,090,796
52,600
-
-
122,893
-
-
21,481,387
2
-
3,468,585
21,478,910
-
3,416,977
1,386,603
-
75,097
1,230,310
-
72,385
2,131,584
-
561,144
2,237,009
-
561,322
519,432
-
9,613
678,148
-
26,281
5,971,926
-
1,368,479
5,833,143
-
1,356,036
379,210
-
3,204
388,794
-
3,076
-
-
-
-
-
-
379,210
-
3,204
388,794
-
3,076
37,275,523
3
-
6,589,589
37,392,808
3
-
6,526,873
The ssub-caption "Oth
ther loans" of peerforming loanss includes € 2,3
302 million of bullet
b
loans (+33.18%), € 2,131
1 million of
advannces on invoices
es subject to colllection (-0.09%
%), € 848 millio
on of import/exp
xport advances ((+6.13%), € 96
6 million of
creditt assignment (-5
5.88%) and € 59
95 million of othher miscellaneou
us entries (+4.75
5%).
95
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
7.2 Loaans to custom
mers: breakdo
own by issue r/borrower
Type of transaction/V
Values
Perforrming
loans
1. Debt ssecurities
a) Governments
Other public entiities
b) O
c) O
Other issuers
- non-financial compan
nies
31.03.22015
D
Doubtful loans
Purchhased
Perform
ming
loan
ns
Other
37
79,210
7,415
37
71,795
-
3,204
3
3,204
3
31.12..2014
D
Doubtful loanss
Purch ased
Other
388
8,794
7,410
7
381
1,384
-
3,076
3,076
9,901
-
894
9,788
-
888
- financial companies
242,591
2
-
2,310
25
54,355
-
2,188
- insu
urance companies
119,303
1
-
-
11
17,241
-
-
-
-
-
-
-
-
36,89
96,313
1,58
82,791
37
76,939
34,93
36,583
-
6,586
6,385
5,971
5
6,580
0,414
37,004
4,014
1,591
1,704
363
3,524
35,048
8,786
-
6,52
23,797
6,745
6,517,052
22,7
719,283
-
5,605,920
22,64
43,510
-
5,6
645,520
2,5
512,038
-
262,960
2,57
70,256
-
167,188
1
- otheer
2. Loans to
a) Governments
b) O
Other public entiities
c) O
Other parties
- non-financial compan
nies
- financial companies
- Insu
urance companies
- otheer
Total
20,428
-
-
10,182
1
-
-
9,6
684,834
-
711,534
9,82
24,838
-
704,344
7
37,27
75,523
-
6,589
9,589
37,392
2,808
-
6,52
26,873
7.3 Loaans to custom
mers: hedged assets
31.03.2015
31.12
2.2014
1. Loans subject to miccro-hedging of fair
f value
a) Interest rate risk
b) Price risk
c) Foreeign exchange riisk
d) Cred
dit risk
e) Other risks
23,650
23,650
-
22,903
2
22,903
-
2. Loans subject to miccro-hedging of cash
c
flow
a) Interest rate risk
b) Foreeign exchange risk
c) Otheer
Total
23,650
22,903
2
96
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Lia
abilitie
es
Du
ue to ban
nk
Caption 10
0
1.1 Due to bankss: breakdown
n by type
Typee of transactio
on/Members off the group
1. Du
ue to Central Banks
2. Du
ue to banks
2.1 C
Current accountss and demand deposits
2.2 R
Restricted depossits
2.3 Loans
2.3.1 Repurchase agrreements
2.3.2 Other
2.4 P
Payables for com
mmitments to repurchase own eequity instrumen
nts
2.5 O
Other payables
Tota l
31.03.20015
31
1.12.2014
3,311,6615
3,537,9970
291,,803
77,,129
3,108,,948
3,395,954
3,083,604
340,943
64,689
2,675,571
2,4822,963
2,069,389
625 ,985
606,182
60,,090
2,401
6,849,5585
6,479,558
The nnet interbank poosition is negativ
ive for € 5,504 m
million. The Gro
oup interim repo
ort on operation
ons provides furtther details
on thi
his.
Du
ue to cusstomerss
Caption 20
0
2.1 Due to custo
omers: breakd
down by secttor
Typee of transactio
on/Members off the group
31.03.20015
31
1.12.2014
26,847,,417
2,525,,022
3,099,,757
27,487,204
2
2,968,817
2,780,795
3.1
1 repurchase agreeements
1,3122,688
1,062,767
3.2
2 other
1,7877,069
1,718,028
660,,267
727,443
33,132,4463
33,964,259
3
1. Cu
urrent accounts and demand deposits
2. Reestricted depositts
3. Loans
4. Payables for comm
mitments to repurchase own eqquity instrumentts
5. Otther payables
Tota l
97
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
Debtt securitties in isssue
Capttion 30
3.1 Deb
bt securities in issue: breaakdown by seector
Type of
security//
Amountss
31.03.2015
3
31.12.20014
Fair val ue
Bookk value
A. Secur ities
1. Bond
ds
Leve
el 1
Level 2
FFair value
Level 3
Book value
Level 1
Level 2
Level 3
7,2
266,564
1,133
3,185
6,366,0044
-
6,619,068
1,116,003
55,680,376
-
69,557
-
70,0010
-
50,510
-
50,902
-
1.2 otther
7,197,007
1,133,185
6,296,0034
-
6,568,558
1,116,003
5,629,474
-
2. Other
urities
secu
3,8
808,085
-
-
3,808,085
5
3,899,194
-
-
3,8
899,194
-
-
-
-
-
-
-
-
3,808,085
-
-
3,808,085
5
3,899,194
-
-
3,899,194
1.1 sttructured
2.1 sttructured
2.2 otther
Total
11,074,649 1,133
3,185 6,366,0 44 3,808,085
5 10,518,262 1,116,003 55,680,376 3,8
899,194
3.3 Anaalysis of capttion 30 "Debtt securities inn issue": micro-hedged se
ecurities
31.03
3.2015
1. Payab les with fair vaalue micro-hedg
ge
a) interest rate risk
b) foreeign exchange risk
c) multtiple risks
2. Payab les with cash fllow micro-hedg
ge
2,063,555
-
a) interest rate risk
-
b) foreeign exchange risk
-
c) multtiple risks
-
Total
98
2,06
63,555
2,06
63,555
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Fin
nancial liabilitie
l
es held for trad
ding
Caption 40
0
4.1 Financial liab
bilities held for
f trading: bbreakdown byy sector
Typee of transaction
n/
Mem
mbers of the
grou p
31.03.22015
NV
31..12.2014
FV*
FV
V
L1
L2
NV
FV*
FV
L3
L1
L2
L3
A. Caash liabilities
1. Du
ue to banks
519
472
-
-
472
-
-
-
-
-
2. Du
ue to customers
484
259
2200
-
459
68
6
41
15
-
56
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3
3.1.1 Structured
-
-
-
-
#
-
-
-
-
#
3
3.1.2 Other bond
ds
-
-
-
-
#
-
-
-
-
#
3.2
2 Other securitiess
-
-
-
-
-
-
-
-
-
-
3
3.2.1 Structured
-
-
-
-
#
-
-
-
-
#
3
3.2.2 Other
-
-
-
-
#
-
-
-
-
#
1,003
731
2200
-
931
68
6
41
15
-
56
3. Deebt securities
1 Bonds
3.1
Totall A
B. Deerivatives
1. Fin
nancial derivativees
-
96
263,1179
31,170
-
-
-
2113,491
29,66
63
-
1.1
1 For trading
1.2
2 Connected with
h
the fair value
option
#
96
253,7771
31,170
#
#
-
2007,077
29,66
63
#
#
-
2,5524
-
#
#
-
2,386
-
#
1.3
3 Other
#
-
6,8884
-
#
#
-
4,028
-
#
-
-
-
-
-
-
-
-
-
-
2.1
1 For trading
2.2
2 Connected with
h
the fair value
option
#
-
-
-
#
#
-
-
-
#
#
-
-
-
#
#
-
-
-
#
2.3
3 Other
#
-
-
-
#
#
-
-
-
#
Totall B
#
96
263,1179
31,170
#
#
-
2113,491
29,66
63
#
Totall (A+B)
#
827
263,3379
31,170
#
#
41
2113,506
29,66
63
#
2. Creedit derivatives
The ca
caption "Cash liaabilities" concern
ns the balance oof "technical sho
orts" generated by
b capital markeet transactions.
The ffinancial derivattives connected
d with the fair value option are
a mainly asso
ociated with deb
ebt securities cllassified as
financcial liabilities deesignated at fairr value through pprofit and loss (liability
(l
caption 50).
Key:
FV = ffair value
FV* = fair value excluuding variationss due to changess in the creditwo
orthiness of the issuer since thee issue date
NV = notional or nom
minal value
L1 = LLevel 1
L2 = LLevel 2
L3 = LLevel 3
99
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
Finan
ncial lia
abilities designaated at fair value thro
ough pro
ofit
and lloss
Capttion 50
5.1 Finaancial liabilitties designated at fair val ue through profit
p
and losss: breakdow
wn by sector
Type of
securityy/Amounts
31.03.2015
NV
FV
L2
1
L1
31.12.22014
FV*
L3
NV
FV
L2
L1
FV*
L3
1. Due to
o banks
-
-
-
-
-
-
-
-
-
-
1.1 Stru
uctured
-
-
-
-
#
-
-
-
-
#
-
-
-
-
#
-
-
-
-
#
-
-
-
-
-
-
-
-
-
-
2.1 Stru
uctured
-
-
-
-
#
-
-
-
-
#
2.2 Oth
her
-
-
-
-
#
-
-
-
-
#
1.2 Oth
her
2. Due to
o customers
3. Debt s ecurities
- 1,087,772
- 1,085,869 1,637,545
- 1,700,6614
- 1,705,354
-
-
-
#
-
-
-
-
#
1,040,304
-
1,087,772
-
#
1,637,545
-
1,700,6614
-
#
1
1,040,304
- 1,087,772
1
1,040,304
3.1 Stru
uctured
-
3.2 Oth
her
Total
- 1,085,869 1,637,545
- 1,700,6614
- 1,705,354
Debt secuurities include suubordinated bon
nds for a total of € 590,336 tho
ousand, none off which are conve
vertible into sharres.
The cumuulative negativee change in fair value
v
attributabble to the changge in credit riskk is Euro 1,903 tthousand; this change
c
had a neggative effect durring the period of
o Euro 6,796 tho
housand.
Key
FV = fair vvalue
FV* = fairr value excludingg variations duee to changes in tthe creditworthiiness of the issuer since the issuue date
NV = notiional or nominaal value
L1 = Leveel 1
L2 = Leveel 2
L3 = Leveel 3
Financi al liabilities designated at
a fair value tthrough profiit and loss: use of the fairr value option
Descripttion/Amounts
31.03.20155
Due to
banks
Due to
customer s
bt
Deb
securities
Natural hedges using derivvatives
-
-
1,087,772
Natural hedges using otheer financial instru
uments
-
-
-
Other acccounting mismatcches
-
-
-
Financial instruments man
naged and measu
ured at fair value
-
-
-
Structured products with embedded
e
deriva
atives
-
-
-
Total
-
-
1,0
087,772
100
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Infformatio
on on th
he conso
olidated
d income statem
ment
101
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Intterests
Caption 10
0 and 20
0
1.1 Interest and similar incom
me: breakdow
wn
Capttions/
Tech
hnical forms
Debt
seecurities
1. Fin
nancial assets heeld for trading
2. Fin
nancial assets deesignated at fairr value
through profit and
d loss
Loans
Other
tran
nsactions
311.03.2015
31
1.03.2014
3,476
-
5,831
9,307
15,601
5,289
-
-
5,289
460
4. Fin
nancial assets heeld to maturity
5. Du
ue from banks
6. Loans to customers
7. Heedging derivativves
8. Otther assets
22,983
15,253
732
3,141
#
#
1,799
369,046
#
#
3,480
5
22,983
15,253
2,531
372,187
3,480
5
36,553
11,754
5,300
421,829
3,038
13
Tota l
50,874
370,845
9,316
431,035
494,548
3. Fin
nancial assets avvailable for sale
Defauult interest accruued in the perio
od, but which has
as been fully writtten down, amo
ounted to Euro 8,
8,400 thousand.
1.4 Interest and similar expense: breakdoown
Capttions/Technicaal forms
1. Du
ue to Central Banks
Debts
Se
ecurities
Other
tran
nsactions
311.03.2015
31
1.03.2014
911
#
-
911
2,803
2. Du
ue to banks
3. Du
ue to customers
4. Deebt securities in issue
5. Fin
nancial liabilitiess held for trading
6. Fin
nancial liabilitiess designated at fair value
through profit and
d loss
7. Otther liabilities an
nd provisions
8. Heedging derivativves
2,395
42,833
#
132
#
#
58,697
-
-
2,395
42,833
58,697
132
3,641
66,025
66,077
288
-
11,921
#
#
#
#
51
-
11,921
51
-
25,845
49
-
Tota l
46,271
70,618
51
116,940
164,728
103
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
Commission
ns
Capttions 40
0 and 50
0
2.1 Com
mmission inccome: breakdown
Type of service/Amou
unts
31.03.2015
31.03
3.2014
a) guaran
ntees given
7,869
9,213
b) credit derivatives
-
-
57,279
701
1,430
5,171
44,651
956
1,258
4,900
5,048
4,768
c) managgement, brokerage and consulting services:
1. trading in financial instruments
2. trading in foreign exxchange
3. asseet management
3.1. individual
3.2. collective
urities
4. custtody and administration of secu
5. custtodian bank
6. placement of securiities
7. ordeer taking
8. advisory services
8.1 rregarding investtments
8.2 rregarding financcial structuring
9. distrribution of third
d-party services
9.1 aasset management
9.1
1.1. individual
9.1
1.2. collective
9.2 iinsurance produ
ucts
9.3 o
other products
d) collecttion and paymen
nt services
123
132
1,059
-
1,102
-
29,159
5,143
18,622
4,802
1,411
55
-
-
1,411
55
13,205
477
12,956
80
66
357
397
291
5,856
6,872
5,495
30,866
33,269
7,104
e) servicing related to seecuritisation
172
169
f) servicees for factoring transactions
t
2,316
2,077
g) tax colllection servicess
-
-
h) managgement of multilateral trading systems
s
-
-
i) maintenance and manaagement of currrent accounts
40,433
42,002
j) other services
49,085
52,642
36,318
40,959
c
card servicess
- commission income on cash
6,154
6,177
- other ccommission incom
me
6,613
5,506
188,020
18
84,023
- commission income on other
o
loans to cusstomers
Total
Commissiion income is eaarned solely by members
m
of thee Banking group..
104
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
2.2 Commission expense: bre
eakdown
Typee of service/Am
mounts
a) guarantees received
b) creedit derivatives
c) maanagement and brokerage services
1. trading in financial instrumentss
gn exchange
2. trading in foreig
ment:
3. asset managem
3.1. own portfolio
3.2. third-party portfolio
ministration of securities
s
4. custody and adm
nancial instrume
ents
5. placement of fin
oducts and servi ces through finaancial
6. offer of securities, financial pro
promoters
ollection and payyment services
d) Co
31.03.20015
31
1.03.2014
581
4,030
-
-
647
255
3
-
617
214
11
-
-
-
-
-
389
-
391
1
-
-
1, 292
1,415
e) Otther services
6, 297
6,511
Tota l
8,8817
12,573
Comm
mission expensee is incurred soleely by memberss of the Banking group.
g
105
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
Net ttrading income
e
Capttion 80
4.1 Nett trading inco
ome: breakdo
own
Transacttions/Income items
Capitaal
gains
(A
A)
1. Financcial assets held
d for trading
1.1 Deebt securities
uity instruments
1.2 Equ
1.3 UC
CITS units
1.4 Loaans
1.5 Other
2. Financcial liabilities held for trading
2.1 Deebt securities
2.2 Deebts
2.3 Other
3. Other financial assetts and liabilities:
nge differencess
exchan
4. Derivaatives
4.1 Fin
nancial derivativves:
- On d
debt securities and interest rates
- On eequities and equitty indices
- On ccurrency and gold
d
- Other
4.2 Creedit derivatives
Total
Trading
proffits
Capital
losses
Trad ing
lossses
Net result
(B))
(C))
(D
D)
31.03.2015
[(A+
+B)(C+D)]
277,014
2,594
2
(707)
(585)
28,316
2
110,270
112,416
4,328
-
1,678
912
4
(547)
(148)
(12)
-
(463)
(2)
(120)
10,938
13,178
4,316
(116)
-
-
-
-
-
-
-
-
-
-
#
#
#
#
13,782
1
200,159
28
8,962
(25,453)
(355,040)
(21,685)
2 0,159
28,962
(25
5,453)
(355,040)
(2
21,685)
117,906
27,750
2
(23,278)
(3 2,468)
(10,090)
(
2,253
1,212
(2,175)
(
((2,257)
(967)
#
#
#
#
(10,313)
(
(315)
-
-
-
(315)
-
-
-
-
-
477,173
31
1,556
(26
6,160)
(355,625)
20,413
2
Trading acctivities are carrried out solely by members of th
the Banking grou
up.
106
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Ne
et hedging gain
ns (losse
es)
Caption 90
0
5.1 Net hedging gains (lossess): breakdow
wn
Inco me items/Amo
ounts
31.03.20015
31
1.03.2014
A. In come relating to:
A.1. FFair value hedgees
A.2. H
Hedged financiaal assets (fair value)
A.3. H
Hedged financiaal liabilities (fairr value)
A.4. C
Cash flow hedgees
A.5. FForeign currency assets and liab
bilities
10,4441
659
139
-
7,295
496
59
-
Tota l income from hedging activitty (A)
11,2239
7,850
792
577
B.2. H
Hedged financiaal assets (fair value)
B.3. H
Hedged financiaal liabilities (fair value)
10, 092
7
7,035
B.4. C
Cash flow hedgees
B.5. FForeign currencyy assets and liab
bilities
-
-
Tota l charges from hedging activitty (B)
10,8884
7,619
3355
231
B. Ch
harges relating to:
B.1. FFair value hedgees
C. Neet hedging gain
ns (losses) (A-B
B)
107
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
Gain
ns (Losse
es) on disposal or repu
urchase
Capttion 100
0
6.1 Gai ns (losses) on disposal orr repurchase:: breakdown
Caption//Income itemss
Financia l assets
1. Due fro
om banks
2. Loans tto customers
3. Financcial assets available for
sale:
3.1 Deb
bt securities
3.2 Equity instruments
3.3 UCITTS units
3.4 Loan
ns
4. Financcial assets held to
t maturity
311.03.2015
31.003.2014
Gains
Losses
Net Profit
Gains
Losses
Nett Profit
6
3,849
(51)
6
3,798
80
45
(18)
80
27
35,095
(10,003)
25,092
67,466
(36)
67,430
33,454
(10,000)
23,454
67,086
(32)
67,054
234
(3)
231
380
(4)
376
1,407
-
1,407
-
-
-
-
-
-
-
-
-
-
(92)
(92)
-
-
-
38,950
(10,146)
28,804
67,591
(54)
67,537
6
Financia l liabilities
1. Due to
o banks
2. Due to
o customers
3. Debt securities in issue
164
(530)
(366)
479
(255)
224
Total liab
bilities
164
(530)
(366)
479
(255)
224
Total asssets
108
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Ne
et resultt on fina
ancial asssets an
nd liabilities deesignate
ed at
fair value
Caption 110
7.1 Net result on
n financial asssets and liabbilities design
nated at fair value: breakddown
Tran sactions/
Inco me componen
nts
C
Capital
gains
Gains on
disposal
Capital
C
losses
Loosses on
d isposal
Net result
(A)
(B)
(C)
(D)
31
1.03.2015
[(A+B)(C+D)]
1. Fin
nancial assets
1.1
1 Debt securitiees
1.2
2 Equity securitiies
1.3
3 UCITS units
1.4
4 Loans
3,925
1,101
23
2,801
-
7
1
6
-
(678)
(24)
(654)
-
(151)
(151)
-
3,103
1,078
(128)
2,153
-
2. Fin
nancial liabilities
2.1
1 Debt securitiees
3,224
3,224
4,983
4,983
(8,511)
(8,511)
-
(304)
(304)
-
-
-
-
-
2.2
2 Due to banks
2.3
3 Due to custom
mers
3. Otther financial assets
a
and liabilities:
ex change differences
4. Deerivatives
Tota l
#
#
#
#
420
37
7,186
24
5,014
(5,990)
(15,179)
(438)
(589)
(6,367)
(3,148)
Assetts and liabilities are measured at
a fair value soleely by members of
o the Banking group.
g
The net rresult of the meeasurement
of fina
nancial liabilitiess at fair value an
nd of derivativess connected opeerationally (fair value option foor financial liabillities) is € 6,545
5 thousand.
109
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
Net iimpairm
ment adjjustmen
nts
Capttion 130
0
8.1 Nett impairmentt adjustmentss to loans an d advances: breakdown
Adju
ustments
31.03.2014
(43)
Portfolio
Interest
Interest
Other
31.03.2015
Other write-backs
Specific
Portfolio
Specific
Write-offs
A. Due fro m banks
Write-backs
Other write-backs
Transactio
ons/Income
items
-
(43)
-
-
-
-
-
(43)
- Loans
-
-
-
-
-
-
-
-
-
- Debt seecurities
-
(43)
-
-
-
-
-
(43)
(43)
(4555)
33,503
136,617
-
5,563
(147,461)
(2
211,777)
-
-
-
-
B. Loans to
o customers
(7,184)
315,505)
(3
Doubtful loans acquired
-
-
- Loans
-
-
#
-
-
#
#
-
- Debt seecurities
-
-
#
-
-
#
#
-
-
Other reeceivables
(7,184)
315,505)
(3
(4 55)
33,503
136,617
-
5,563
(147,461)
(2
211,777)
- Loans
(7,184)
(3
315,505)
-
33,503
136,617
-
5,563
(147,006)
(2
212,595)
-
-
(4 55)
-
-
-
-
(455)
818
(7,184)
315,548)
(3
(4555)
33,503
136,617
-
5,563
(147,504)
(2
211,820)
- Debt seecurities
C. Total
8.2 Nett impairmentt adjustmentss to financiall assets available for sale: breakdown
Transacttions/Income
items
Ad
djustments
Wrrite-backs
Specific
Specific
S
31.03.22015
31.03
3.2014
(6,,347)
(466)
-
-
Write-O
Offs
Othher
Interest
A. Debt ssecurities
B. Equity instruments
-
(6,3447)
-
-
#
#
C. UCITS units
D. Due frrom banks
E. Loans tto customers
-
-
-
-
-
-
F. Total
-
(6,3447)
-
-
(6,3347)
(466)
110
Other
write-backs
#
-
-
-
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
8.4 Impairment losses on oth
her financial assets: breakkdown
Write-b
backs
31.03.2015 31.03.2014
Portfolio
Interest
Interest
I t
t
Portfolio
Other
Write-offs
Specific
Other write-backs
Adjustments
Specific
S
Other write-backs
Trans actions / Income items
i
A. Guaarantees given
-
(7,227)
-
-
10,060
-
1,0046
3,879
(2,424)
B. Creedit derivatives
C. Com
mmitments to disbu
urse
funds
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
her transactions
D. Oth
-
-
-
-
-
-
-
-
-
E. Tottal
-
(7,227)
-
-
10,060
-
1,0446
3,879
(2,424)
Ad
dministrrative ex
xpensess
Caption 18
80
11.1
1 Payroll: breeakdown
Typee of expense/aamounts
1) Em
mployees
a) wages and saalaries
b) social securitty charges
c) termination indemnities
d) pension expeenses
e) provision for termination ind
demnities
ments:
f) provision for post-retirementt benefits and siimilar commitm
- defined contrib
bution
- defined benefit
g) payments to external supple
ementary pensioon funds:
- defined contrib
bution
- defined benefit
h) costs deriving from paymentt agreements baased on own cap
pital
instruments
nel benefits
i) other personn
2) Otther active employees
3) Diirectors and au
uditors
4) Reetired personneel
Tota l
31.03.20015
31
1.03.2014
193,8820
139, 867
36, 803
8, 391
581
174
191,161
139,186
36,122
7,421
1,072
408
-
-
174
408
4, 323
3,788
4,
4,323
3,788
-
-
3, 681
3,164
2,9950
2,3306
2,353
2,742
2246
540
199,3322
196,796
111
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
11.2 Avverage number of employyees, by levell
31.03.2015
31.03
3.2014
11,180
223
3,475
7,482
223
11,274
1
221
3,396
7,657
190
31.03.2015
31.03
3.2014
11,552
227
1,453
2,069
7,803
219
11,641
1
224
1,398
2,048
31.03.2015
31.03
3.2014
Taxation
n
35,567
34,949
3
Stamp du
uty
Other ind
direct taxes with
h right of recourrse
29,897
1,198
29,537
-
2,405
2,067
2,274
3,138
88,917
8,519
14,731
4,716
7,983
2,031
13,931
6,357
2,311
2,035
2,105
3,889
3,473
3,435
2,873
2,407
1,357
5,107
91,178
9
7,715
14,776
6,101
7,768
2,407
11,751
5,986
2,463
2,013
2,455
5,265
3,313
3,877
3,030
2,565
1,309
1,136
878
6,370
124,484
12
26,127
Employeees:
a) M
Managers
b) M
Middle managerss
c) O
Other employeess
Other peersonnel
11.2.1 Number of employees, byy level: Bankiing group
Employeees:
a) M
Managers
b) To
otal 3rd and 4th
h level middle managers
c) To
otal 1st and 2nd
d level middle managers
d) O
Other employeess
Other peersonnel
7,971
169
11.5 Otther adminis trative expen
nses: breakdoown
Municipaal property tax
Other
Other co
osts
Maintenaance and repairss
Rental exxpense
Post officce, telephone an
nd telegraph
Data tran
nsmission fees and
a use of datab
bases
Advertising
ng and other pro
ofessional servicces
Consultin
Lease of IT hardware and
d software
Insurancee
Cleaning of office premisses
Printing aand stationery
Energy an
nd fuel
Transporrt
Staff training and expensse refunds
Information and surveys
Security
hering and processing services
Use of exxternal data gath
Membersship fees
Condomiinium expenses
Sundry other
Total
112
939
718
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
The aamount relating
ng to "Consultiing and other professional services"
s
of € 13.9 million is attributable to sundry
adminnistrative expen
nses for legal seervices and for oother profession
nal advisors for advice
a
on specifific regulations and
a for the
provission of support and advice on matters
m
concernning changes in legislation, the
e system of interrnal control and
d the 20152017
7 Business Plan.
The de
details are as folllows:
- servvices provided by various legal advisors,
a
particuularly in respect of litigation, forr € 7.4 million;
- proffessional servicees provided by various
v
firms, reg
egarding the exeecution of a num
mber of funding transactions co
ompleted in
the peeriod (issue of Covered
C
Bonds, update and issuues pertaining to the Euro Medi
dium Term Notess programme, etc.),
et for the
auditt of the financiaal statements, to
t obtain ratinggs from differeent agencies, fo
or specific valuaation work perf
rformed for
financcial statement purposes
p
(speciffic appraisals, Coomprehensive Assessment)
A
for € 0.9 million;
- otheer sundry professsional services (for
( example, apppraisals and oth
ther technical su
upport) for € 1.44 million;
- sunddry advice in resspect of continu
uous changes in legislation, imp
provements to th
he system of intternal control an
nd projects
foreseeen by the 2015
5-2017 Businesss Plan.
This, iin fact, is truly an
a investment for
f the future as can be seen, for
f example, byy the work perfoormed in particu
ular for the
overaall operational development
de
of the
t adoption off internal modelss of credit risk and the new Reggulations for thee prudential
superrvision of bankss referred to in Circular no. 263
63 of the Bank of
o Italy. The tottal of this type oof expense cam
me to € 4.2
millioon.
Otther ope
erating charges
c
s/incom
me
Caption 22
20
15.1
1 Other operating charges: breakdownn
Desccription/Amou
unts
31.03..2015
31
1.03.2014
Loss on disposal of leeased assets
1,215
1,306
Amortisation of leasehold improvem
ment expenditurre
Out-o
of-period expen
nse
Otheer
Tota l
1,539
1,634
209
4,023
66,986
1,103
7,208
11,251
15.2
2 Other operating income
e: breakdownn
Desccription/Amou
unts
31.03.20015
31
1.03.2014
2,,371
2,550
Reco
overy of taxes
30,,864
29,789
Gains on disposal off fixed assets givven under financce leases
Otheer income
270
19,,788
817
26,550
Tota l
53,2293
59,706
Rentaal income
113
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
Earnings per share
IAS 33 requires discclosure of baasic and diluuted earningss per share (EPS), speciffying how eaach is
calculateed.
Basic earnings per shaare reflect the
e relationshipp between:
 the earnings attributable to
t ordinary shhareholders;
 and the weig
ghted average
e number of shhares outstan
nding during the period.
Diluted eearnings per share
s
reflect the
t relationshhip between:
 the earningss used to calculate basic E PS, as adjuste
ed by the eco
onomic effectts of converting all
outstanding convertible bonds into shaares at period end;
 the number of shares in circulation uused to calcullate basic EPS
S, as adjustedd by the weighted
average of the potential ordinary
o
sharres with a diluting effect deriving
d
from the conversiion of
bonds outstaanding at period end.
31.03.22015
Attribu
utable
earnings
Basic EPSS
Diluted EEPS
114
Weiighted
aveerage
orddinary
shhares
31.03 .2014
Earn
nings
per share
s
(Eu
uro)
Attrib
butable
earn
nings
Weeighted
avverage
orddinary
shhares
Earrnings
per share
(E
Euro)
45,197
480,,852,977
0.094
28,129
3333,630,972
0.084
45,197
480,,852,977
0.094
28,129
3333,630,972
0.084
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Infformatio
on on risks and related
d hedgin
ng policcy
115
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Cre
edit Rissk
QUA
ALITATIVE INFFORMATION
Forbborne exposuures
In Occtober 2013 the EBA released its "EBA
A FINAL draftt Implementin
ng Technical SStandards" re
elating to
the d
definition of non-performin
n
ng exposures and forbearan
nce.
The d
document was approved byy the Commisssion on 9 Jan
nuary 2015 an
nd published on the Officiaal Journal
of the European Union
U
on 20 Fe
ebruary 2015
5 with Regulattion 227/2015.
Forbeearance meassures (concessions) are thee modification
n of the termss and conditioons of a contrract or its
refinancing, grantted to a coun
nterparty in ffinancial diffiiculties that could
c
have nnegative effeccts on its
abilitty to meet its originally asssumed contraactual committments and th
hat would nott have been granted to
her borrower with a similar risk profile nnot in financiaal difficulties.
anoth
Conccessions are to
t be identifie
ed at the leveel of each forborne exposu
ure and may rrelate to expo
osures to
borro
owers classifieed as both performing and non-perform
ming.
In an
ny case, reneegotiated exposures shouldd not be con
nsidered forborne when thhe borrower is not in
finan
ncial difficultiees.
In deetermining thee forborne exposures the G
Group complied with the ru
ules envisagedd by the EBA technical
stand
dards.
The ffollowing table provides a summary
s
of pperforming and non-perform
ming forbornee exposures:
Grosss exposurees in forbearrance as at 31 March 2015
2
(in millions of Euro)
Balance sheet exxposures
Off-balance sheet
exposure
es
Total expossures
non-performing
perfo
orming
2,472
889
58
25
2,530
914
Tota l
3,361
83
3,444
Stat us
Provvisions on exposures
e
in
n forbearancce as at 31 March 2015
5
(in millions of Euro)
Stat us
non-performing
perfo
orming
Tota l
Provisions on bbalance
sheet exposuures
ovisions on off-balance
Pro
sheet expossures
Total provisions
526
-
526
16
-
16
542
-
542
117
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
QUANTITATIVE INFO
ORMATION
A. Cred
dit Quality
A.1 Do
oubtful and performing loans: amoounts, adjusttments, tren
nds, econom
mic and
ter ritorial dist ribution
A.1.1 D
Distribution of
o credit expo
osure by porttfolio and quality of lendiing (book vallues)
1. Financial assets held for
trading
2. Financial assets available
for sale
3. Financial assets held to
maturityy
4. Due from
m banks
5. Loans to
o customers
6. Financial assets
designatted at fair value
through profit and loss
7. Financial assets being
sold
8. Hedgingg derivatives
Other assets
Doubtful loans
Other bussinesses
Not impaired past due
loans
Impaired past due
loans
Unlikely to pay loans
Non performing loasn
Bankinng group
Others
Portolio/Q
Quality
Total
T
-
-
-
-
953,08
85
-
-
953,085
-
-
-
-
7,061,05
51
-
-
7,,061,051
-
-
-
-
2,521,90
02
-
-
2,,521,902
22
-
-
-
1,345,64
48
-
-
1,,345,670
2,868,001
3,503,913
2217,675
1,682
2,683
35,592,41
19
-
421
43,,865,112
-
-
-
-
38,07
79
-
-
38,079
-
-
-
-
-
-
-
-
-
-
-
-
46,25
52
-
-
46,252
Total
31.03.2015
2,868,023
3,503,913
2 17,675
1,682,683
47,558,43
36
-
421
55,831,151
Total
31.12.2014
2,819,098
3,515,490
1 92,307
1,638,404
47,153,60
05
-
421
55,319,325
118
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
A.1. 2 Distributio
on of credit exposures
e
by portfolio and quality of lending (grosss and net values)
Performing loanss
-
-
-
953,085
#
953,085
953,085
2. Finaancial assets available for
salee
-
-
-
7,061,051
-
7,061,051
7,061,051
3. Finaancial assets held to
o
matturity
-
-
-
2,521,902
-
2,521,902
2,521,902
2,320
2
2,2298
22
2
1,345,649
1
1,345,648
1,345,670
11,164
4,537
4,574,9948
6,589,58
89
37,480,785
205,683
37,275,102
43,864,691
-
-
-
38,079
#
38,079
38,079
7. Finaancial assets being sold
-
-
-
-
-
-
-
8. Hed
dging derivatives
-
-
-
46,252
#
46,252
46,252
Total A
B. Oth
her consolidated
com
mpanies
11,166
6,857
4,577,2246
6,589,61
11
49,446,803
205,684
49,241,119
55,830,730
1. Finaancial assets held fo
or
trad
ding
-
-
-
#
#
-
-
2. Finaancial assets available for
salee
-
-
-
-
-
-
-
3. Finaancial assets held to
o
matturity
-
-
-
-
-
-
-
4. Duee from banks
-
-
-
-
-
-
-
5. Loaans to customers
6. Finaancial assets design
nated
at ffair value through profit
p
and
d loss
-
-
-
421
-
421
421
-
-
-
#
#
-
-
7. Finaancial assets being sold
-
-
-
-
-
-
-
Gross
exposure
Net exposure
1. Finaancial assets held fo
or
trad
ding
Gross
exposure
(Net exposure)
Total
T
Net exposure
General portfolio
provisions
Specific provisions
Doubtful looans
A. Ban
nking Group
4. Duee from banks
5. Loaans to customers
6. Finaancial assets design
nated
at ffair value through profit
p
and
d loss
8. Hed
dging derivatives
-
-
-
#
#
-
-
Total B
-
-
-
421
-
421
421
Total
31.03.2
2015
11,166
6,857
4,577,2246
6,589,61
11
49,447,224
205,684
49,241,540
55,831,151
Total
31.12.2
2014
11,000
0,716
4,473,8821
6,526,89
95
49,003,152
210,722
48,792,430
55,319,325
Dereccognised non-peerforming loanss to customers in
involved in insollvency proceediings amount to € 1,305,645 th
housand. As
also inndicated in paraagraph 4.1 of the
he Group interim
m report on operrations, for the purpose
p
of deteermining the acttual level of
covera
rage of non-perfforming loans th
he above mentiooned derecognissed loans need to
t be taken intoo account.
119
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
A.1.3 B anking group
p - Cash and off-balance ssheet exposu
ures to bankss: gross and nnet values
Type of exposure/Amounts
Gross
exxposure
Specific
provisions
General
portfolioo
provisionss
Net exposure
A. Cash eexposures
a) Non
n-performing loaans
b) Unliikely to pay loan
ns
c) Pastt due loans impaaired
d) Other assets
Total A
2,320
2,298
#
22
-
-
#
-
-
-
#
-
4,042,779
#
1
4,042,778
4,045,099
2,298
1
4,04
42,800
-
-
#
-
B. Off-baalance sheet exxposures
a) Dou
ubtful loans
b) Others
Total B
Total (A+
+B)
565,297
#
-
565,297
565,297
-
-
56
65,297
4,610,396
2,298
1
4,60
08,097
The follow
wing review of doubtful
d
loans makes
m
referencee to the new “un
nlikely to pay” category,
c
ratherr than to watchllist and
restructurred loans, as reequired by the new supervisor
ory regulations (in
( particular, Bank
B
of Italy Ci
Circular no. 272
2 – 7th
amendmeent dated 20 Jan
nuary 2015) thatt took effect froom 1 January 201
015.
120
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
A.1. 4 Banking grroup - On-Balance Sheet credit exposures to banks: gross channge in doubtfful
exposures
Desccription/categ
gories
A. Op
pening balance - gross exposure
e
- of w
which: assets sold but not derecogniised
B. Inccreases
B.1 trransfers from perrforming loans
B.2 trransfer from otheer impaired exposure categories
Non-performing
loans
Unlikely to pay
loans
Past due
d loans
2,277
-
-
-
-
-
43
-
-
-
-
-
-
-
-
43
-
-
C. Reeductions
-
-
-
C.1 trransfers to performing loans
-
-
-
C.2 derecognised item
ms
-
-
-
C.3 reecoveries
-
-
-
C.4 saales proceeds
-
-
-
C.4 b
bis losses from dissposal
-
-
-
C.5 trransfer to other impaired
i
exposure categories
-
-
-
C.6 other reductions
-
-
-
2,320
-
-
-
-
-
B.3 otther increases
D. Grross exposure cllosing balance
- of w
which: assets sold but not derecogniised
With rregard to the neew category of “unlikely
“
to pay loans”, referencce is made to the
he note accompaanying table A.1
1.3.
121
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
A.1.5 B anking group
p - Balance Sheet credit eexposures to banks: chang
ge in overall impairmentss
Descripttion/categoriees
Non perrforming
Unlikely to pay
loaans
loans
A. Openi ng gross write-downs
Past due loaans
2,255
-
-
-
-
-
B. Increasses
43
-
-
B.1 write--downs
43
-
-
B.2 bis losst from disposalss
-
-
-
B.2 transffer from other im
mpaired exposure categories
-
-
-
B.3 other increases
-
-
-
C. Reducttions
-
-
-
C.1 write--backs from assessments
-
-
-
C.2 write--backs from recoveries
-
-
-
C.2 bis profit from disposaals
-
-
-
C.3 write--offs
-
-
-
C.4 transffer to other impaaired exposure ca
ategories
-
-
-
C.5 other reductions
-
-
-
2,298
-
-
-
-
-
- of which
h: assets sold but not
n derecognised
D. Final ggross write-downs
- of which
h: assets sold but not
n derecognised
With regaard to the new category
ca
of “unliikely to pay loanns”, reference is made to the no
ote accompanyinng table A.1.3.
A.1.6 B anking group
p - Cash and off-balance ssheet credit exposures to
o customers: gross and ne
et
vaalues
Type of exposure/Amounts
Gross
eexposure
General
Portfolioo
provisionns
Specific
provisions
Net exp
posure
A. Cash eexposures
a) Non-peerforming loanss
6,592,760
3,724,759
9
#
2,868,001
b) Unlikeely to pay loans
4,336,165
832,252
2
#
3,503,913
235,612
17,937
7
#
217,675
c) Past du
ue loans impaireed
d) Other assets
45,171,964
#
205,6683
44,966,281
Total A
56,336,501
4,574,948
8
205,6683
51,55
55,870
230,492
35,815
5
#
194,677
b) Otherss
3,800,709
#
10,6609
3,790,100
Total B
4,031,201
35,815
5
10,6609
3,98
84,777
60,367,702
4,610,763
3
216,2292
55,54
40,647
B. Off-Baalance Sheet exxposure
a) Doubtfful loans
Total (A+
+B)
With regaard to the new category
ca
of “unliikely to pay loanns”, reference is made to the no
ote accompanyinng table A.1.3.
122
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
A.1. 7 Banking grroup - Cash credit
c
exposuures to customers: dynam
mics of gross iimpaired loans
Desccription/categ
gories
A. O pening gross exposure
- of w
which: sold but not derecognise
ed
B. In creases
B.1 trransfers from peerforming loans
B.2 trransfers from otther categories of impaired expposures
B.3 o
other increases
C. Deecreases
C.1 transfers to perfforming loans
Non performing
loans
Unlikely to pay
loans
Passt Due
lo
oans
6,487,495
4,3011,749
209,195
1,402
-
-
225,211
7011,100
211,252
32,363
4533,584
153,656
177,243
966,983
24,772
15,605
1500,533
32,824
119,946
6666,684
184,835
-
588,597
52,959
C.2 w
write-offs
17,238
66,320
5
C.3 ccollections
73,178
3766,040
27,959
6,789
77,144
7
19,115
-
111,211
1999,491
99,507
3,626
77,881
4,398
6,592,760
4,3366,165
235,612
1,402
-
-
C.4 p
proceeds from disposals
C.4 b
bis losses from disposals
d
C.5 transfers to otheer categories of impaired expos ures
C.6 o
other decreases
D. Cllosing gross exposure
- of w
which: assets so
old but not dereccognised
With rregard to the neew category of “unlikely
“
to pay loans”, referencce is made to the
he note accompaanying table A.1
1.3.
123
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
A.1.8 B anking group
p - Cash cred
dit exposuress to customerrs: dynamics of total writte-downs
Descripttion/categoriees
A. Total opening adjusttments
Non pe
erforming
lo
oans
Unlikely
U
to payy
loans
Past Due
loanss
3,668,419
786,25 9
16,888
1
1,402
-
-
B. Increaases
190,846
179,62 6
15,490
1
B.1 adjusstments
148,654
170,9663
11,472
51
-
-
40,131
8,1441
3,698
2,010
5222
320
- of whicch: sold but not derecognised
d
B.1 bis lo
oss from disposaals
B.2 transfer from other categories
c
of impaired exposurees
B.3 otherr increases
C. Reducctions
134,506
133,63 3
14,441
1
C.1 writee-backs on valuation
73,012
30,3660
4,778
C.2 writee-backs due to co
ollections
20,726
41,4888
620
3,649
2000
-
17,238
6,3220
5
C.2 bis prrofit from disposals
C.3 writee-offs
C.4 transsfer to other cateegories of impaired exposures
C.5 otherr decreases
D. Total closing adjustm
ments
- of whicch: sold but not derecognised
d
-
43,6558
8,312
19,881
11,6007
726
3,724,759
832,25 2
17,937
1
1,402
-
-
With regaard to the new category
ca
of “unliikely to pay loanns”, reference is made to the no
ote accompanyinng table A.1.3.
The adjusstments (B.1) in
nclude default interest
i
accrued
ed in the period
d, but which haas been fully w
written down (€
€ 8,400
thousand)
d).
124
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
A.3 Distribution of guarantee
ed exposuress by type of guarantee
g
A.3. 1 Banking grroup - Guaranteed credit exposures to
o banks
Other secured
guarantees
Securities
Properties under
finance leases
Amount of
net exposure
Property - mortgages
Real guaranteees (1)
1. Gu
uaranteed cash
h exposures:
12,258
-
5
-
-
1.1. ffully guaranteed
d
- of w
which: doubtful
1.2. p
partially guarantteed
- of w
which: doubtful
2. Gu
uaranteed off-b
balance sheet
crredit exposuress:
12,258
2,042
-
5
-
-
-
1,984
58
-
-
-
-
-
-
-
-
-
2.1. ffully guaranteed
d
- of w
which: doubtful
2.2. p
partially guarantteed
- of w
which: doubtful
(contt.)
Total
(1)+(2)
Other parties
Banks
Other public entities
Governments and
central banks
Other parties
Banks
Other public entities
CLN
Governments and
central banks
Personaal guarantees (2
2)
Credit deerivatives
Endorsement
E
crredits
Otheer derivatives
1. Gu
uaranteed cash
h
exxposures:
-
-
-
-
-
12,252
-
-
-
12,257
1.1. ffully guaranteed
d
- of w
which: doubtful
1.2. p
partially guarantteed
- of w
which: doubtful
2. Gu
uaranteed off-b
balance
sh eet credit expo
osures:
-
-
-
-
-
12,252
1,984
-
-
58
12,257
2,042
-
-
-
-
-
1,984
-
-
-
58
-
1,984
58
-
2.1. ffully guaranteed
d
- of w
which: doubtful
2.2. p
partially guarantteed
- of w
which: doubtful
-
125
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
A.3.2 B anking group
p - Guaranteed credit expposures to cu
ustomers
1. Guara nteed cash exp
posures:
1.1. fully guaranteed
- of whicch: doubtful
1.2. partially guaranteed
d
- of whicch: doubtful
2. Guara nteed off-balance sheet
credit exposures:
2.1. fully guaranteed
- of whicch: doubtful
2.2. partially guaranteed
d
- of whicch: doubtful
Other secured
guarantees
Securities
Properties under
finance leases
Property - mortgages
Amount of net exposure
Real guarantees
g
(1)
30,869,5588
28,383,4588
58,212,361
57,673,190
2,661,648
2,66
61,648
1,0993,355
9777,188
5,015,4599
2,486,1000
12,044,534
539,171
48
80,249
-
993,303
1116,167
1,71
10,794
1,676,924
241,268
33,870
631,5066
338,504
-
8,287
4,305
1,086,8344
886,6644
12,801
10,467
1,050
2,334
687
-
1116,779
992,340
2,666
224,439
601
61,845
6
47,476
6,191
14,369
49,9511
200,1700
8,8999
-
731
(cont.)
126
Other public entities
-
- 104
4,626 457,038
8 77,095 6,2215,377 70,53
32,294
14
4,760 216,514
4 64,325 5,5506,491 68,791,040
2,054
2
28,454
4 31,799
8864,892 13,786,553
89
9,866 240,524
4 12,770
7708,886
1,741,254
7,491
7
6,908
8
1,302
2247,275
614,072
-
-
-
-
-
682
682
525
5,582
2 16,834
5,582
2 14,199
8,096
2,635
-
Banks
Other parties
-
Banks
Other public
entities
-
Other parties
Governments and
central banks
1.1. fully guaranteed
- of whicch: doubtful
1.2. partially guaranteed
d
- of whicch: doubtful
2. Guara nteed offbalancce sheet credit
exposu
ures:
2.1. fully guaranteed
- of whicch: doubtful
2.2. partially guaranteed
d
- of whicch: doubtful
To
otal
(1))+(2)
-
CLN
1. Guara nteed cash
ures:
exposu
Governments and
central banks
Personal guarrantees (2)
Endorsem
ment credits
Cre
edit derivativess
Other derivattives
7778,583
7738,387
32,542
40,196
2,968
99
93,106
908,451
50,545
84,655
5,512
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Infformatio
on on co
onsolidaated shaareholders’ equuity
127
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Consolida
ated sha
areholde
ers’ equ
uity
QUA
ALITATIVE INFFORMATION
Grou
up shareholdeers' equity com
mprises sharee capital and all
a types of re
eserve, togethher with the net
n profit
for th
he period.
B.1 Consolidated
d shareholders' equity: brreakdown by business typ
pe
Capttions
Banking
Group
Insurance
companies
Other
businesses
Sharee capital
2,006,456
-
Sharee premium
1,261,273
Reserves
3,581,467
Interrim dividends
Equitty instruments
(Treaasury shares)
Valuaation reserves
- Fiinancial assets avvailable
fo
or sale
- Property, plant
and equipment
- In
ntangible assets
- Fo
oreign investmen
nts hedges
-C
Cash-flow hedges
nces
- Exxchange differen
-N
Non-current assetts and
d
disposal groups held for sale
-A
Actuarial gains (lo
osses) on
d
defined-benefit pension
p
plans
ortion of valuatio
- Po
on reserves
reelating to investm
ments
carried at equity
Consoliddation
adjustm
ments
andd
eliminaations
31
1.03.2015
4,1
175
(4468,831)
1,541,800
-
-
(2 88,120)
973,153
-
4,0
036
(8 28,146)
2,757,357
-
-
-
-
-
-
-
-
-
-
(7,256)
-
-
(2)
(7,258)
282,816
-
-
12,660
295,476
266,803
-
-
5,820
272,623
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,417
-
-
-
2,417
-
-
-
-
-
-
-
-
-
-
(125,518)
-
-
-
(125,518)
-
-
-
6,735
6,735
- Sp
pecial revaluation laws
145,730
-
-
-
145,730
-O
Other
Profitt (loss) of the perriod
(+/-) pertaining to thee Group
and m
minority interestss
Conssolidated shareh
holders'
equitty
(6,616)
-
-
105
(6,511)
57,986
-
(428)
(5,857)
51,701
7,182,742
-
7,7
783
(1,5778,296)
5,612,229
129
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
B.2 Val uation reservves for financcial assets avvailable for sale: breakdow
wn
Assets/A
Amount
Ban
nking group
Posittive
reserve
1. Debt seecurities
2. Equity
instrum
ments
3. UCITS u
units
4. Loans
Insurancee
companiees
Other
businesses
Consolidation
C
adjustments andd
eliminations
Negative Positive Neggative Positive Negative Positive Negativee
reserve reserve reseerve reserve reserve resserve reservee
31.03.20
015
Positive
reserve
Negative
reserve
195,668
251
-
-
-
-
(50)
-
195,618
251
79,066
8,223
-
-
-
-
(23)
(5,6500)
79,043
2,573
4,085
3,542
-
-
-
-
-
(2433)
4,085
3,299
-
-
-
-
-
-
-
-
-
-
Total
278,819
12,016
-
-
-
-
(73)
(5,8933) 278,746
6,123
Total 201
14
218,596
7,212
-
-
-
-
(56)
- 218,540
7,212
The valuaation reserve foor financial asseets available forr sale at 31 Maarch 2015 has a positive net bbalance of € 27
72,623
thousandd (at 31 Decembe
ber 2014 it had a positive balancce of € 211,328
8 thousand).
The net reeserve for goverrnment debt seccurities amountss to € 147,620 thousand.
t
130
nterim report on operation s as at 31 Maarch 2015
Coonsolidated in
ory notes
Consolidaated explanato
Ow
wn Fund
ds and ca
apital raatios
Scop
pe of application and reg
gulations
The new harmon
nised rules fo
or banks andd investment companies contained inn Regulation (EU) no.
575//2013 (CRR) and
a in the 26//36/UE Directtive (CRD IV) entered into force in 20144.
The new regulato
ory frameworrk, which is the only sett of rules that seeks to harmonise prudential
p
regullations of thee Member States of the Eurropean Comm
munity, was made
m
applicabble in Italy by the Bank
of Itaaly's Circular no. 285, published on 1
17 December 2013 and subsequent am
mendments. This new
Circu
ular brings together provissions that weere contained in Circular no.
n 263 of 277 December 2006
2
and
Circu
ular no. 229 of 21 April 199
99.
The Bank's Own Funds
QUA
ALITATIVE INFFORMATION
The eelements of Own
O Funds are
e:
 Common Equity Tier 1 - CET1;
 Additionaal Tier 1 - AT1
1;
 Tier 2 - T2
2.
1 and AT1 co
onstitute Totaal Tier 1 Cap ital, which ad
dded to T2 le
eads to the ddetermination
n of Own
CET1
Fund
ds.
1.
Common Equity
Eq
Tier 1 - CET1
Common Equity Tier
T 1 capital (CET1) is mad e up of positive and negatiive elements:
 Share cap
pital and relatted share prem
miums;
 Revenue reserves;
 Positive and
a negative valuation
v
reseerves (from OCI);
O
 Other resserves;
 CET1 insttruments subjject to transittional provisio
ons ("grandfatthering");
 Minority interests;
 Prudentiaal filters;
 Deductio
ons.
Prudential filters are positive or negative adjustments of CET1, their purpose bbeing to stab
bilise the
balan
nce sheet ag
ggregate of reference as much as possible, reducing the pot
otential volatility. The
prudeential filters exclude fro
om CET1 thee valuation reserve gene
erated by caash flow hed
dges and
gainss/losses arisin
ng from chan
nges in own ccreditworthin
ness (liabilitie
es under the fair value op
ption and
derivvative liabilitiees).
131
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
Deductio
ons are negattive elements of CET1 suchh as goodwill, intangible asssets and otheer accounting items
that direectly reduce th
he Tier 1 capital componennt.
On a fullly phased basis, the equity instrumentss listed above
e have to meet clearly deffined requirem
ments
(art. 28 C
CRR):
 they must bee classified as equities for aaccounting pu
urposes;
 they must haave a perpetual duration, i.ee. not have an
ny maturity;
 they must no
ot be subject to
t obligationss in terms of remuneration
r
;
 they must no
ot be subject to
t distributionn caps;
 any cancellattion of distrib
butions must nnot result in any
a kind of resstriction on thhe issuer;
 they must bee the first to absorb
a
busine ss losses as so
oon as they occur;
 they are thee most subord
dinated instruuments in the event of bankruptcy or liquidation of
o the
entity in queestion;
 they must not enjoy any form of gua rantee or con
ntractual clau
use that can raise their level of
seniority.
Additioonal Tier 1 - ATI
Addition
nal Tier 1 Capital (AT1) con
nsists of the foollowing posittive and negative elementss:
 Equity instru
uments and re
elated share ppremiums;
 AT1 instrumeents subject to
t transitiona l provisions (""grandfatherin
ng");
 Instruments issued by affiiliates and inccluded in AT1;
 Deductions.
On a fullly phased basis, the equity instrumentss listed above
e have to meet clearly deffined requirem
ments
(art. 63 C
CRR):
 the instrumeents must be issued or the loans granted
d and fully paid up;
s
b the
 the purchasee of instruments or the asssignment of subordinated
loans cannott be paid for by
entity, neitheer directly nor indirectly;
 the capital receivable for these instru ments or sub
bordinated loa
ans is fully suubordinated to
t the
receivables of
o all unsubord
dinated credittors;
 the instrumeents or subord
dinated loans are not hedg
ged or covered
d by a guaran tee that allow
ws the
receivable's ranking to be
e increased bby the entity or its subsidiaries, parent company and any
company thaat has close lin
nks with the eentity;
 the instruments or subo
ordinated loaans are not subject to any
a
provisionn that allow
ws the
receivable's ranking
r
to be increased in aany other wayy;
 the instrumeents or subord
dinated loans must have an
n original maturity of at leaast five years;
 the provision
ns governing the instrume nts or subord
dinated loans must not conntain any ince
entive
that encouraages the entityy to reimburs e or repay the
e principal am
mount prior too maturity;
 if the instrum
ments or subordinated loaans include one or more call
c or early reepayment op
ptions,
these may bee exercised att the sole disccretion of the issuer or obligor;
 the instrumeents or suborrdinated loan s cannot be repaid or rep
purchased or repaid in advance
earlier than five
f years from
m the date of issue or assig
gnment;
 the provision
ns governing the instrumeents or subord
dinated loans must not inddicate, expresssly or
implicitly, that they shall or
o may be reddeemed, repurchased or re
epaid in advannce by the enttity in
cases other than
t
those of insolvency orr liquidation;
132
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato


the proviisions governing the instruuments or su
ubordinated lo
oans must noot give the holder the
right to accelerate
a
futture scheduleed payments of interest or
o principal, eexcept in the event of
insolvenccy or liquidatio
on;
the level of payments of interest oor dividends due
d on these instruments or subordinatted loans
cannot bee changed on the basis of tthe creditwortthiness of the
e entity or its parent compaany.
As o
of 31 March 2015, the Parent
P
Compaany BPER haas not issued
d any AT1 innstruments; the
t value
attrib
butable to thiis componentt comes from
m certain instrruments accountable in thiis category re
elating to
subsiidiaries that have minoritty interests, ssubject to the transitional arrangemennts: the prefe
erred and
savin
ngs shares of Banco
B
di Sard
degna s.p.a. weere reported.
3. Tiier 2 - T2
Tier 2 capital (T2) consists of th
he following ppositive and negative eleme
ents:
 Equity insstruments, su
ubordinated looans and relatted share prem
miums;
 T2 instruments subject to transitionnal provisionss ("grandfathe
ering");
 Instruments issued by affiliates andd included in T2;
T
 General adjustments;
a
 Deductio
ons.
On a fully phased
d basis, the eq
quity instrum ents listed ab
bove have to meet clearly defined requ
uirements
(art. 63 CRR):
 the instru
uments must be issued/asssigned and fullly paid up;
 the assig
gnment of th
he instrumennt cannot be
e financed by
y the entity,, neither dire
ectly nor
indirectlyy;
 the capitaal receivable for these insttruments has to be fully subordinated too the receivab
bles of all
unsubord
dinated creditors;
 the instru
uments canno
ot be hedged, nor subject to
o any form off guarantee;
 these insttruments should not be su bject to any provision
p
that increases theeir credit rankking;
 the instru
uments must have an originnal maturity of
o at least five
e years;
 the provvisions govern
ning these innstruments must
m
not con
ntain any kinnd of incentives that
encourag
ge the entity to reimburse oor repay the principal
p
priorr to maturity;
 in the evvent that the instruments include in th
heir rules one
e or more caall or early re
epayment
options, they
t
can only be exercised at the discrettion of the isssuer or obligo r;
 the provisions do not give the holdder the right to
t accelerate future
f
scheduuled paymentts, except
in the eveent of the enttity's insolven cy or liquidation;
 these instruments can
n be reimburseed, also in ad
dvance, but on
nly in that thee event that the
t entity
asks for prior
p
authorissation from thhe competentt authority, and not earlieer than five ye
ears from
the date of issue, except in the foollowing casess: a) the entitty of referencce replaces the above
instruments with othe
er instrumentss of Own Fun
nds of equal or
o higher quallity, at condittions that
are sustainable consid
dering its earnning capacity, b) the entity
y can demonsstrate that it complies
with the minimum capital requirem
ments impose
ed by the reg
gulations to tthe satisfactio
on of the
competen
nt authority.
At 31
1 March 2015
5, the Group'ss subordinateed loans not subject
s
to grandfathering hhave been add
ded to T2
instru
uments, as they were issue
ed after the deeadline of 31 December 20
011 taken as a point of refe
erence.
133
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
Transittional arranggements
The new
w regulations also
a provide for
f transitionaal arrangemen
nts ("Phased in"), during whhich the provisions
containeed in Circularr no. 285/201
13 Section II are graduallyy introduced.. The applicattion to the capital
c
requirem
ments and grrandfathering rules develoops over a pe
eriod more or
o less of 4 yyears (2014-2
2017)
involvingg partial com
mputability and, at the sam
me time, a graadual exclusio
on of those eequity instrum
ments
that do n
not meet all of
o the requirem
ments laid doown in the CRR.
Regulattory requireements
The Sup
pervisory rulees introduced by Circular no. 285/13 require Italia
an banks beloonging to baanking
groups tto fully complyy with the following minim
mum ratios forr 2015:
 CET1 of 4.5%
%;
 Tier 1 of 6%;;
 Total Capitall ratio of 8%.
In additiion to the mandatory requirements prrescribed in the
t Regulations, the follow
wing requirem
ments
have also
o been added
d:
 Capital Conservation Buffer (CCB): tthis consists of Common Equity Tier 1 capital, for
f an
additional reequirement off 2.5%;
 Countercyclical Capital Re
eserve: this iss also made up
u of Tier 1 ca
apital and muust be accumu
ulated
in periods off economic gro
owth against possible future losses on the
t basis of a sspecific coeffficient
established on
o a national basis;
 Additional Reserves for so
o-called Globaal & Other Syystemically Im
mportant Instittutions (G-SII & OSII): both con
nsist of Tier 1 capital and m
make direct reference
r
to entities
e
of parrticular imporrtance
at a global or national level. The bufferr for G-SII can
n vary betwee
en a minimum
m level of 1% and a
maximum of 3.5%, whereas the onee for O-SII only
o
providess for a non- binding maximum
threshold of 2%;
 Capital reserrve for system
mic risk: it is a t least 1% of the related risk exposuress and is established
by each Mem
mber State; it is essentially used to mitig
gate the risk of
o non-cyclicaal macro-prudential
long-term rissk, i.e. to deal with the neggative effectss related to un
nexpected criises in the baanking
system.
The sum
m of regulatory requireme
ents and addiitional reservves determine
e the minimuum level of capital
c
conservaation required
d for banking groups at a coonsolidated le
evel; for 2015
5, that level is as follows:
 CET1 of 7%;
 Tier 1 of 8.5%
%;
 Total Capitall ratio of 10.5%.
At CON
NSOB's requesst, the Parent Company aannounced on 26 Februarry 2015 thatt it had received a
commun
nication from
m the Europe
ean Central B
Bank (ECB) about
a
its deccision on thee requiremen
nts of
additional Own Fundss and of specific capital rattios pursuant to art. 16 of EU
E Regulationn 1024/2013..
Based on
n the financiaal situation an
nd risk profilee of the BPER
R Group and the
t results off the Asset Quality
Q
Review ((AQR) and Sttress Test, the
e ECB has esstablished min
nimum limits for the Com
mmon Equity Tier
T 1
(CET1) ratio of 9% an
nd for the Totaal Capital ratioo of 11%, witth effect from 2015.
134
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Failure to complyy with the minimum
m
requuirement bassed on the sum of these reserves ("C
Combined
Requ
uirement") leaads to limitations on the ddistribution off earnings and the need too adopt a plaan for the
conseervation of caapital.
Cond
ditions for th
he inclusion of interim oor year-end earnings
e
With reference to
o EU Regulattion 575/201
13 (CRR), on 4 February 2015
2
the EC
CB issued a "Decision"
publiished in the Official
O
Journaal of the Euroopean Union on
o 25 April 20
015, that laidd down the prrocedures
to bee followed by banks under its direct supervision (EU Regulation 468/20144) with regarrd to the
inclusion in CET1 Capital of interim or year-eend earnings before a form
mal decision iss taken confirrming the
result.
Theyy can only be included (art. 26 CRR) withh the prior app
proval of the Competent A
Authority, which in this
case is the BCE, an
nd it will only give approvaal if the follow
wing condition
ns are met:
 earnings must be checcked and certi fied by the In
ndependent Auditors;
 the Bank must provide
e a specific deeclaration abo
out the earnin
ngs with partiicular referen
nce to the
accountin
ng standards applied and tthe inclusion of foreseeable charges andd dividends. The
T latter
have to be
b calculated according
a
to sspecific metho
odologies as indicated.
i
The ""Decision" alsso provides a standard lettter and certification form that the Bannks have to use
u when
askin
ng for approvaal.
The p
profit earned in the period to 31 Marchh 2015 has no
ot been consid
dered for supeervisory purp
poses, but
is inccluded in the pro
p forma verrsion of the caapital ratios in
ndicated in the Report.
135
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
QUANTITATIVE INFO
ORMATION
A. Comm
mon Equity Tierr 1 - CET1 before the applicatiion
of pru
udential filters
of whicch CET1 instrum
ments subject to
o transitional proovisions
B. Pruden
ntial filters for CET1
C
(+/-)
C. CET1 gross of items to be deducted
d and of
transiitional arrangements (A+/-B)
D. Items to be deducted from CET1
ments - Impactt on CET1 (+/-),, including
E. Transi tional arrangem
ubject to transiitional provisioons
minorrity interests su
F. Comm
mon Equity Tier 1 - CET1
(C-D+//-E)
G. Addit ional Tier 1 (ATT1) gross of items to be deduccted and of transitional
arranggements
of whicch AT1 instrumeents subject to transitional
t
provvisions
H. Items to be deducted from AT1
I. Transittional arrangem
ments - Impact on AT1 (+/-), i ncluding
instru ments issued by
b affiliates and
d included in A
AT1
wing transitionaal provisions
follow
L. Total A
Additional Tier 1 - AT1
(G-H+
+/-I)
M. Tier 2 (T2) gross of items to be ded
ducted and of
transsitional arrangeements
of w
which T2 instrum
ments subject to transitional proovisions
N. Items to be deducted from T2
O. Trans itional arrangeements - Impact on T2 (+/-), inncluding
uments issued by affiliates an
nd included in TT2 following
instru
transsitional provisio
ons
P. Total TTier 2 (T2) (M-N
N+/-O)
Q. Total own funds (F+L+P)
31.03.20155
31.12
2.2014
5,094,6522
5,03
34,773
-
-
(15,7699)
(1
14,503)
5,078,8833
5,02
20,270
576,3422
58
82,607
56,2200
14
43,598
4,558,7611
4,58
81,261
25,1999
19,075
1
-
-
12,8166
13,749
1
3,8455
5,500
16,2288
10,826
1
284,7711
35
50,705
265,3566
338,250
-
-
33,2299
39,287
3
318,0000
38
89,992
4,892,9899
4,98
82,079
The amouunts indicated do
d not include the result for tthe period: thee profit earned in the quarter that can be ret
etained,
including the net effect of
o applying the fair
fa value option,
n, has been calcu
ulated to be Euro
o 40.5 million, oor 10 basis pointts.
The decisi
sion not to incluude unrealised profits
p
or losses in any elementt of Own Funds, in connection w
with exposuress versus
Central A
Administrations classified
c
in "Fin
nancial assets aavailable for salee" in accordance
e with IAS 39 as approved by the
t EU,
resulted in a negative imp
pact of € 38.5 million,
m
net of tax
ax, on Tier 2 Cap
pital.
136
Coonsolidated in
nterim report on operation s as at 31 Maarch 2015
ory notes
Consolidaated explanato
Capiital adequacyy
QUA
ALITATIVE INFFORMATION
Particular importaance is given to checking ccompliance with
w the capittal adequacy requirementss, both at
CET1
1 level and in total. The responsible functions at the Parent Company
C
perrform this task on an
ongo
oing basis, witth the various departmentts involved (G
Group Finance and Capitall Managemen
nt, Group
Risk Managementt and Group Financial
F
Repoorting) issuing regular reports as part oof the broader process
olidated capittal adequacy. The guidelin
nes for this activity are sttated in BPER
R Group's
of veerifying conso
annu
ual report on the verification of capittal adequacy (ICAAP). This report ideentifies the functions,
f
meth
hodology and approach for measuring annd assessing accepted
a
risk on an ongoinng basis, with a view to
guidiing operations and quantifyying the capittal required by the Group to
t cover the vvarious risks accepted.
137
Consoolidated interim report on operations ass at 31 March 2015
Consolidatedd explanatory notes
QUANTITATIVE INFO
ORMATION
Descripttion/Amounts
Unweightted amounts
Weighted am
mounts/Require
ements
31.03.2015
5
31.12.2014
4
31.03..2015
31.12
2.2014
A.1 Crediit and counterpaarty risk
60,491,804
4
60,511,752
2
35,5228,954
36,094,158
1. Standar dised methodolog
gy
60,281,054
4
60,378,521
1
35,0888,566
35,648,578
-
-
-
-
2.1 Basicc
-
-
-
-
2.2 Advaanced
-
-
-
-
210,751
1
133,231
1
4440,388
445,580
2,8442,316
2,887,533
225,891
14,975
B.4 Marke t risk
555,302
57,207
d methodology
1. Standard
A. Assetss at risk
2. Method ology based on in ternal ratings
3. Securiti sations
B. Capita l adequacy requ
uirements
B.1 Credit and counterpartyy risk
down-rating risk
B.2 Credit d
B.3 Settlem
ment risk
555,302
57,207
2. Internal models
-
-
3. Concenttration risk
-
-
B.5 Operattional risk
2888,318
288,318
-
-
2888,318
288,318
2
1. Basic meethod
2. Standard
dised method
3. Advanceed method
B.6 Other elements for the calculation
c
precautionary requ
uirements
B.7 Total p
-
-
7,170
7,291
3,2118,997
3,255,324
C. Risk asssets and capital ratios
40,2337,463
40,6
691,550
C.2 Commo
on Equity Tier 1 cap
pital/Risk-weighted
d assets
(CET1 C
Capital ratio)
111.33%
11.26%
1
C.3 Tier 1 C
Capital/Risk-weightted assets
(Tier 1 Capital ratio)
C.4 Total own funds/Risk-weig
ghted assets (Total capital ratio)
111.37%
112.16%
11.29%
1
12.24%
1
C.1 Risk-weeighted assets
The amouunt shown undeer item B.6 consiists of the speciific capital requ
uirements requirred by the Bankk of Italy on riskk assets,
attributabble to the creditt risk arising from
m Banca di Sassaari s.p.a. with th
he integration off 10% of risk-weeighted assets.
Leveragge Ratio (LR))
The leveerage ratios ass at 31 March 2015 are verry positive:
 transitional arrangements
a
s (Phased in) oof 7.2% (unch
hanged compa
ared with Deccember 2014));
 under full ap
pplication (or Fully
F
Phased) of 7.1% (6.9%
% as at 31 De
ecember 20144).
138
Consolidated interim report on operations as at 31 March 2015
Attachments
Attachments
139
Consolidated interim report on operations as at 31 March 2015
Attachments
Financial statements of the Parent Company





Balance sheet of the Parent Company as at 31 March 2015
Income statement of the Parent Company as at 31 March 2015
Income statement of the Parent Company by quarter as at 31 March 2015
Statement of changes in shareholders' equity of the Parent Company
Pro-forma income statement of the Parent Company as at 31 March 2014
141
Consolidated interim report on operations as at 31 March 2015
Attachments
Balance sheet of the Parent Company as at 31 March 2015
(in thousands of Euro)
Assets
10. Cash and cash equivalents
20. Financial assets held for trading
30.
40.
50.
60.
70.
80.
100.
110.
120.
31.03.2015
31.12.2014
243,226
1,084,938
306,329
1,035,358
62,756
5,499,413
2,213,497
1,743,446
34,276,875
33,660
1,379,467
453,707
300,240
Change % change
280,236
280,236
1,021,129
1,096,913
(63,103)
49,580
(7,114)
602,293
308,405
(262,265)
(104,751)
9,399
7,448
(4,721)
(598)
(75,784)
79,212
160,794
(81,582)
-50.74
b) deferred
941,917
936,119
5,798
0.62
b1) of which L. 214/2011
823,427
818,508
4,919
0.60
2,817
468,214
2,817
757,843
(289,629)
-38.22
49,331,481
49,162,321
169,160
0.34
Financial assets designated at fair value through profit and loss
Financial assets available for sale
Financial assets held to maturity
Due from banks
Loans to customers
Hedging derivatives
Equity investments
Property, plant and equipment
Intangible assets
of which:goodwill
130. Tax assets:
a) current
140. Non-current assets and disposal groups held for sale
150. Other assets
Total assets
55,642
6,101,706
2,521,902
1,481,181
34,172,124
43,059
1,386,915
448,986
299,642
-20.60
4.79
-11.34
10.95
13.93
-15.04
-0.31
27.92
0.54
-1.04
-0.20
-6.91
(in thousands of Euro)
Liabilities and shareholders' equity
10. Due to banks
20. Due to customers
30. Debt securities in issue
40. Financial liabilities held for trading
50. Financial liabilities designated at fair value through profit and
loss
60. Hedging derivatives
80. Tax liabilities:
a) current
b) deferred
100. Other liabilities
110. Provision for termination indemnities
120. Provisions for risks and charges:
a) pensions and similar commitments
130.
160.
170.
180.
190.
200.
b) other provisions
Valuation reserves
Reserves
Share premium reserve
Share capital
Treasury shares
Net profit (loss) for the period
Total liabilities and shareholders' equity
142
31.03.2015
31.12.2014
8,964,801
23,447,980
8,959,371
300,637
8,294,902
24,272,938
8,374,185
669,899
(824,958)
585,186
8.08
-3.40
6.99
247,604
53,033
21.42
1,087,772
14,092
97,450
97,450
1,313,226
1,700,614
9,114
(612,842)
4,978
-36.04
54.62
72,893
-
24,557
-
33.69
n.s.
72,893
1,132,669
24,557
180,557
33.69
15.94
135,589
286,205
144,607
141,598
66,500
2,186,914
930,077
1,443,925
(2,538)
8,669
1,101
7,568
44,001
15,450
(4)
-
-1.87
3.03
0.76
5.34
66.17
0.71
-
(7,257)
15,449
4
23,168
-0.06
149.96
49,162,321
169,160
0.34
133,051
294,874
145,708
149,166
110,501
2,202,364
930,073
1,443,925
(7,253)
38,617
49,331,481
Change % change
Consolidated interim report on operations as at 31 March 2015
Attachments
Income statement of the Parent Company as at 31 March 2015
(in thousands of Euro)
Captions
10.
20.
30.
40.
50.
60.
70.
80.
90.
100.
Interest and similar income
Interest and similar expense
Net interest income
Commission income
Commission expense
Net commission income
Dividends and similar income
Net trading income
Net hedging gains (losses)
Gains (losses) on disposal or repurchase of:
31.03.2014
Change
%
change
330,339
(98,884)
231,455
143,325
(7,269)
136,056
249
19,295
265
8,304
379,586
(141,910)
237,676
138,907
(11,135)
127,772
574
3,305
74
55,151
(49,247)
43,026
(6,221)
4,418
3,866
8,284
(325)
15,990
191
(46,847)
-12.97
-30.32
-2.62
3.18
-34.72
6.48
-56.62
483.81
258.11
-84.94
a) loans
3,800
101
3,699
--
b) financial assets available for sale
4,805
54,882
(50,077)
-91.24
c) financial assets held to maturity
d) financial liabilities
110. Net results on financial assets and liabilities designated
at fair value
120. Net interest and other banking income
130. Net impairment adjustments to:
a) loans
b) financial assets available for sale
d) other financial assets
(92)
-
(92)
n.s.
(209)
168
(377)
-224.40
(4,018)
391,606
(116,094)
(10,434)
414,118
(167,427)
6,416
(22,512)
51,333
-61.49
-5.44
-30.66
(120,332)
(162,811)
42,479
-26.09
-
(1)
1
-100.00
4,238
(4,615)
8,853
-191.83
275,512
(237,254)
246,691
(234,136)
28,821
(3,118)
11.68
1.33
a) payroll costs
(126,598)
(126,153)
(445)
0.35
b) other administrative costs
(110,656)
(107,983)
(2,673)
2.48
(10,445)
(5,629)
(607)
36,794
(217,141)
(2,192)
120
(4,648)
(5,828)
(522)
36,454
(208,680)
(159)
5
(5,797)
199
(85)
340
(8,461)
(2,033)
115
124.72
-3.41
16.28
0.93
4.05
---
56,299
(17,682)
38,617
38,617
37,857
(16,833)
21,024
21,024
18,442
(849)
17,593
17,593
48.71
5.04
83.68
83.68
140. Net profit from financial activities
150. Administrative costs:
160.
170.
180.
190.
200.
210.
240.
250.
31.03.2015
Net provisions for risks and charges
Net adjustments to property, plant and equipment
Net adjustments to intangible assets
Other operating charges/income
Operating costs
Profit (Loss) from equity investments
Gains (Losses) on disposal of investments
Profit (Loss) for the period from current operations
before tax
260. Income taxes on current operations
270. Profit (Loss) from current operations after tax
290. Net profit (loss) for the period
143
Consolidated interim report on operations as at 31 March 2015
Attachments
Income statement of the Parent Company by quarter as at 31 March 2015
(in thousands of Euro)
Captions
10.
20.
30.
40.
50.
60.
70.
80.
90.
100.
Interest and similar income
Interest and similar expense
Net interest income
Commission income
Commission expense
Net commission income
Dividends and similar income
Net trading income
Net hedging gains (losses)
Gains (losses) on disposal or
repurchase of:
349,676
(119,085)
230,591
139,642
(7,828)
131,814
23,077
2,378
231
1,462,141
(528,902)
933,239
555,254
(40,328)
514,926
46,627
15,741
895
8,304
(209)
55,151
101
54,882
168
21,158
55
21,270
(167)
3,037
(29,600)
32,591
46
25,619
(418)
26,213
(176)
104,965
(29,862)
134,956
(129)
(4,018)
(10,434)
7,243
(10,298)
(2,979)
(16,468)
391,606
(116,094)
414,118
(167,427)
(162,811)
422,185
(166,667)
(161,295)
352,891
(119,857)
(116,490)
410,731
(219,626)
(185,935)
1,599,925
(673,577)
(626,531)
4,238
(1)
(4,615)
(3,571)
(1,801)
(20)
(3,347)
(36,546)
2,855
(40,138)
(6,908)
275,512
(237,254)
246,691
(234,136)
255,518
(245,300)
233,034
(228,411)
191,105
(258,137)
926,348
(965,984)
a) payroll costs
(126,598)
(126,153)
(128,410)
(116,985)
(136,231)
(507,779)
b) other administrative costs
(110,656)
(107,983)
(116,890)
(111,426)
(121,906)
(458,205)
(10,445)
(4,648)
(9,337)
(7,330)
(9,596)
(30,911)
(5,629)
(5,828)
(5,797)
(5,780)
(7,853)
(25,258)
(607)
(522)
(556)
(577)
(580)
36,794
36,454
31,487
29,900
36,384
(217,141) (208,680) (229,503) (212,198) (239,782)
(2,235)
134,225
(890,163)
a) loans
3,800
b) financial assets available for sale
4,805
a) loans
b) financial assets available for sale
d) other financial assets
140. Net profit from financial
activities
150. Administrative costs:
250.
260.
270.
290.
144
31.12.2014
359,382
(129,983)
229,399
135,884
(10,417)
125,467
96
4,588
602
120. Net interest and other banking
Income
130. Net impairment adjustments to:
210.
240.
4th
quarter
2014
373,497
(137,924)
235,573
140,821
(10,948)
129,873
22,880
5,470
(12)
110. Net results on financial assets and
liabilities designated at fair value
190.
200.
3rd
quarter
2014
379,586
(141,910)
237,676
138,907
(11,135)
127,772
574
3,305
74
d) financial liabilities
170.
180.
2nd
quarter
2014
330,339
(98,884)
231,455
143,325
(7,269)
136,056
249
19,295
265
c) financial assets held to maturity
160.
31.03.2015 1st
quarter
2014
Net provisions for risks and
charges
Net adjustments to property,
plant and equipment
Net adjustments to intangible
assets
Other operating charges/income
Operating costs
Profit (loss) from equity
investments
Gains (losses) on disposal of
investments
Profit (Loss)for the period from
current operations before tax
Income taxes on current
operations
Profit (Loss) from current
operations after tax
Net profit (loss) for the period
(92)
(120,332)
-
(2,192)
(159)
(1,993)
-
(5,335)
(7,487)
120
5
24
26
(87)
(32)
56,299
37,857
24,046
20,862
(54,099)
28,666
(17,682)
(16,833)
(14,594)
(6,862)
25,072
(13,217)
38,617
38,617
21,024
21,024
9,452
9,452
14,000
14,000
(29,027)
(29,027)
15,449
15,449
9 3 0 ,0 7 7
-
E quit y ins t rum e nt s
6 2 4 ,15 6
-
E quit y ins t rum e nt s
S ha re ho lde rs ' e quit y
N e t pro f it ( lo s s )
3 ,5 3 9 ,0 0 7
( 12 ,7 8 9 )
( 7 ,2 7 0 )
2 3 ,13 0
V a lua t io n re s e rv e s
T re a s ury s ha re s
243,241
1,667,056
1,9 10 ,2 9 7
b) o ther
a) fro m pro fits
R e s e rv e s :
S ha re pre m ium re s e rv e
-
1,001,483
b) o ther shares
1,0 0 1,4 8 3
a) o rdinary shares
B a la nc e a s
a t 3 1.12 .13
15 ,4 4 9
4 ,6 3 5 ,6 0 8
S ha re c a pit a l:
N e t pro f it ( lo s s )
S ha re ho lde rs ' e quit y
( 7 ,2 5 7 )
6 6 ,5 0 0
V a lua t io n re s e rv e s
T re a s ury s ha re s
500,206
1,686,708
2 ,18 6 ,9 14
b) o ther
a) fro m pro fits
R e s e rv e s :
S ha re pre m ium re s e rv e
-
1,443,925
b) o ther shares
1,4 4 3 ,9 2 5
S ha re c a pit a l:
a) o rdinary shares
B a la nc e a s
a t 3 1.12 .14
-
-
-
-
-
-
-
-
-
-
-
-
C ha nge s
in o pe ning
ba la nc e s
-
-
-
-
-
-
-
-
-
-
-
C ha nge s
in o pe ning
ba la nc e s
3 ,5 3 9 ,0 0 7
( 12 ,7 8 9 )
( 7 ,2 7 0 )
-
2 3 ,13 0
243,241
1,667,056
1,9 10 ,2 9 7
6 2 4 ,15 6
-
1,001,483
1,0 0 1,4 8 3
B a la nc e a s
a t 1.1.14
15 ,4 4 9
4 ,6 3 5 ,6 0 8
( 7 ,2 5 7 )
-
6 6 ,5 0 0
500,206
1,686,708
2 ,18 6 ,9 14
9 3 0 ,0 7 7
-
1,443,925
1,4 4 3 ,9 2 5
B a la nc e a s
a t 1.1.15
-
12 ,7 8 9
-
-
-
-
(12,789)
( 12 ,7 8 9 )
-
-
-
-
R e s e rv e s
-
-
-
-
-
-
-
-
-
-
-
-
D iv ide nds
a nd o t he r
a llo c a t io ns
-
-
-
-
-
-
-
-
-
-
-
D iv ide nds
a nd o t he r
a llo c a t io ns
A llo c a t io n o f prio r
ye a r re s ult s
( 15 ,4 4 9 )
-
-
-
-
-
15,449
15 ,4 4 9
-
-
-
-
R e s e rv e s
A llo c a t io n o f prio r
ye a r re s ult s
T ra ns a c t io ns o n s ha re ho lde rs ' e quit y
4
8
-
-
-
-
-
(4)
-
-
-
-
-
-
-
-
-
-
-
-
C ha nge s during t he pe rio d
-
-
-
-
-
-
-
-
-
-
T ra ns a c t io ns o n s ha re ho lde rs ' e quit y
(4)
(4)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
-
-
-
1
-
-
-
-
(7,093)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
P urc ha s e E xt ra o rdina ry C ha nge s D e riv a t iv e s
Is s ue o f
in e quit y o n t re a s ury
of
dis t ribut io n
ne w s ha re s
t re a s ury
s ha re s
o f div ide nds ins t rum e n
h
t
-
1
-
-
-
-
1
1
-
-
-
Is s ue o f
P urc ha s e E xt ra o rdina ry C ha nge s D e riv a t iv e s
dis t ribut io n
ne w s ha re s
of
in e quit y o n t re a s ury
o f div ide nds ins t rum e n
t re a s ury
s ha re s
h
-
7,094
C ha nge s
in
re s e rv e s
C ha nge s
in
re s e rv e s
C ha nge s during t he pe rio d
Statement of changes in shareholders' equity of the Parent Company
Sto ck
o pt io ns
Sto ck
o pt io ns
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13 ,4 16
5 ,5 2 2
-
-
7 ,8 9 4
-
-
-
-
-
-
-
C o m pre he ns
iv e inc o m e
as at
3 1.0 3 .2 0 14
3 8 ,6 17
8 2 ,6 18
-
-
4 4 ,0 0 1
-
-
-
-
-
-
-
C o m pre he ns
iv e inc o m e
as at
3 1.0 3 .2 0 15
3 ,5 5 2 ,4 2 4
5 ,5 2 2
( 7 ,2 7 0 )
-
3 1,0 2 4
236,148
1,661,361
1,8 9 7 ,5 0 9
6 2 4 ,15 6
-
1,001,483
1,0 0 1,4 8 3
S ha re ho lde rs '
e quit y a s a t
3 1.0 3 .2 0 14
3 8 ,6 17
4 ,7 18 ,2 2 7
( 7 ,2 5 3 )
-
110 ,5 0 1
500,206
1,702,158
2 ,2 0 2 ,3 6 4
9 3 0 ,0 7 3
-
1,443,925
1,4 4 3 ,9 2 5
S ha re ho lde rs '
e quit y a s a t
3 1.0 3 .2 0 15
(in thousands of Euro)
Consolidated interim report on operations as at 31 March 2015
Attachments
145
Consolidated interim report on operations as at 31 March 2015
Attachments
Pro-forma income statement of the Parent Company as at 31 March 2014
(in thousands of Euro)
Income Statement
10. Interest and similar income
BPER
BPRA
301,285
BCAM
23,669
Scritture di
fusione
BPMZ
37,092
Totale
35,565
(18,025)
379,586
(134,768)
(7,794)
(9,300)
(8,052)
18,004
(141,910)
30. Net interest income
166,517
15,875
27,792
27,513
(21)
237,676
40. Commission income
103,963
7,928
13,863
13,285
(132)
138,907
50. Commission expense
(10,250)
(299)
(394)
(325)
133
(11,135)
93,713
7,629
13,469
12,960
1
127,772
20. Interest and similar expense
60. Net commission income
70. Dividends and similar income
80. Net trading income
90. Net hedging gains (losses)
100. Gains/losses on disposal or
repurchase of:
480
94
-
-
-
574
2,429
95
110
(21)
707
-
46
-
13
-
3,305
74
48,330
14
-
6,807
-
55,151
100
-
-
1
-
101
b) financial assets available for sale
48,076
-
-
6,806
-
54,882
d) financial liabilities
110. Net results on financial assets and
liabilities designated at fair value
120. Net interest and other
banking income
154
14
-
-
-
168
(9,043)
(1,161)
18
(248)
-
(10,434)
302,521
22,540
41,986
47,078
(7)
414,118
130. Net impairment adjustments to:
(144,066)
(7,257)
(11,293)
(4,810)
(1)
(167,427)
(139,568)
(7,149)
(11,203)
(4,891)
-
(162,811)
b) financial assets available for sale
(1)
-
-
-
-
(1)
c) financial assets held to maturity
-
-
-
-
-
-
(4,497)
(108)
(90)
81
(1)
(4,615)
a) loans
a) loans
d) other financial assets
140. Net profit from financial
activities
150. Administrative costs:
a) payroll
b) other administrative costs
160. Net provisions for risks and
charges
170. Net adjustments to property,
plant and equipment
180. Net adjustments to intangible
assets
158,455
15,283
30,693
42,268
(8)
246,691
(165,142)
(13,938)
(29,944)
(25,789)
677
(234,136)
(86,992)
(8,147)
(16,650)
(14,345)
(19)
(126,153)
(78,150)
(5,791)
(13,294)
(11,444)
696
(107,983)
(2,653)
(636)
(1,313)
(46)
-
(4,648)
(3,694)
(423)
(582)
(1,129)
-
(5,828)
(346)
(9)
(17)
(150)
-
(522)
25,228
2,297
5,321
4,266
(658)
36,454
(146,607)
(12,709)
(26,535)
(22,848)
19
(208,680)
(159)
-
-
-
-
(159)
-
-
-
-
-
-
3
-
1
1
-
5
11,692
2,574
4,159
19,421
11
37,857
(6,170)
(1,223)
(2,225)
(7,214)
(1)
(16,833)
270. Profit (Loss) from current
operations after tax
5,522
1,351
1,934
12,207
10
21,024
290. Net profit (loss) for the period
5,522
1,351
1,934
12,207
10
21,024
190. Other operating charges/income
200. Operating costs
210. Profit (Loss) from equity
investments
230. Adjustments to goodwill
240. Gains (Losses) on disposal of
investments
250. Profit (Loss) from current
operations before tax
260. Income taxes on current
operations
146