ASSETS

Section 1 – Cash and cash equivalents – item 10

1.1 Cash and cash equivalents: composition

31.12.2011

31.12.2010

a) Cash

67

31

b) On demand deposits at Central banks

-

-

Total

67

31

Section 2 – Financial assets held for trading – item 20

2.1 Financial assets held for trading: breakdown

Voci/Valori

31.12.2011

31.12.2010

Level 1

Level 2

Level 3

Level 1

Level 2

Level 3

A. Cash assets

 

 

 

 

 

 

1. Debt securties

188

-

-

293

-

-

1.1 Structured

188

 

 

293

 

 

1.2 Others

 -

 -

 -

 -

 -

 -

2. Equity instruments

 -

 -

 -

 -

 -

 -

3. O.E.I.C. units

 -

 -

 -

 -

 -

 -

4. Loans

-

-

-

-

-

-

4.1 Repurchase agreements

-

-

-

-

-

-

4.2 Other

-

-

-

-

-

-

Total A

188

-

-

293

-

-

B. Derivative instruments

 

 

 

 

 

 

1. Financial derivatives

-

-

-

-

-

-

1.1 For trading

 -

 -

 -

 -

 -

 -

1.2 Connected to the fair value option

 -

 -

 -

 -

 -

 -

1.3 Other

 -

 -

 -

 -

 -

 -

2. Credit derivatives

-

-

-

-

-

-

2.1 For trading

 -

 -

 -

 -

 -

 -

2.2 Connected to the fair value option

 -

 -

 -

 -

 -

 -

2.3 Other

 -

 -

 -

 -

 -

 -

Total B

-

-

-

-

-

-

Total(A+B)

188

-

-

293

-

-

Structured debt securities refer to quoted convertible bonds held for trading.

2.2 Financial assets held for trading: breakdown by debtor/issuer

Type/Amounts

31.12.2011

31.12.2010

A. Cash assets

 

 

1. Debt securities

188

293

a) Governments and Central banks

-

-

b) Other public entities

-

-

c) Banks

-

-

d) Other issuers

188

293

2. Equity instruments

-

-

a) Banks

-

-

b) Other issuers

-

-

- insurance companies

-

-

- financial institutions

-

-

- non-financial companies

-

-

- others

-

-

3. O.E.I.C. units

-

-

4. Loans

-

-

a) Governments and Central banks

-

-

b) Other public entities

-

-

c) Banks

-

-

d) Other issuers

-

-

Total A

188

293

B. Derivative instruments

a) Banks

-

-

- fair value

-

-

b) Customers

-

-

- fair value

-

-

Total B

-

-

Total(A+B)

188

293

2.3 Financial cash assets held for trading: annual changes

 

Debt securities

Equity instruments

O.E.I.C. units

Loans

31.12.2011

A. Opening balance

293

 

 

 

293

B. Increases

-

-

-

-

-

B1. Purchases

-

-

-

-

-

B2. Fair value gains

-

-

-

-

-

B3. Other changes

-

-

-

-

-

C. Reductions

(105)

-

-

-

(105)

C1. Sales

-

-

-

-

-

C2. Redemptions

-

-

-

-

-

C3. Fair value losses

(105)

 

 

 

(105)

C4. Transfers to other portfolios

-

-

-

-

-

C5. Other changes

-

-

-

-

-

D. Closing balance

188

-

-

-

188

Section 4 – Available for sale financial assets – item 40

4.1 Available for sale financial assets: breakdown

Voci/Valori

31.12.2011

31.12.2010

Level 1

Level 2

Level 3

Level 1

Level 2

Level 3

1. Debt securities

1.604.449

19.942

46.504

748.171

39.197

17.671

1.1 Structured

-

-

770

-

-

757

1.2 Others

1.604.449

19.942

45.734

748.171

39.197

16.914

2. Equity instruments

-

484

13.784

-

475

12.993

2.1 At fair value

-

484

9.590

-

475

9.527

2.2 At cost

-

-

4.194

-

-

3.466

3. O.E.I.C. units

-

-

-

-

-

-

4. Loans

-

-

-

-

-

-

Total

1.604.449

20.426

60.288

748.171

39.672

30.664

Level 1 “other debt securities” primarily refer to Italian government bonds, either fixed-rate and very short-term bonds or floating-rate and medium-term ones. Level 2 and 3 debt securities refer to floating-rate bank bonds.

These securities have been used for short-/very short-term repurchase agreements with banks, on the MTS platform or on the Eurosystem.

Equity securities refers to non-controlling interests considered strategic for the Bank.

4.2 Available for sale financial assets: breakdown by debtor/issuer

Type/Amounts

31.12.2011

31.12.2010

1. Debt sescurities

1.670.895

805.039

a) Governments and Central banks

1.526.658

525.529

b) Other public entities

 -

c) Banks

132.524

241.813

d) Other issuers

11.713

37.697

2. Equity instruments

14.268

13.468

Banks

9.551

9.997

b) Other issuers

4.717

3.471

- insurance companies

 

 

- financial institutions

2.838

1.593

- non-financial companies

1.879

1.878

- others

 -

 -

3. O.E.I.C. units

 -

 -

4. Loans

 -

 -

a) Governments and Central banks

 -

 -

b) Other public entities

 -

 -

c) Banks

 -

 -

d) Other issuers

 -

 -

Total

1.685.163

818.507

4.4 Available for sale financial assets: annual changes

 

Debt securities

Equity instruments

O.E.I.C. units

Loans

Total31.12.2011

A. Opening balance

805.039

13.468

-

-

818.507

B. Increases

1.783.250

815

-

-

1.784.065

B1. Purchases

1.750.589

727

-

-

1.751.316

B2. Fair value gains

1.028

9

-

-

1.037

B3. Reversal on impairment losses

-

-

-

-

-

- through profit or loss

 

X

 

 

-

- equity-accounted

-

-

-

-

-

B4. Transfers from other portfolios

-

-

-

-

-

B5. Other changes

31.633

79

 

 

31.712

C. Reductions

(917.394)

(15)

-

-

(917.409)

C1. Sales

(99.428)

(2)

 

 

(99.430)

C2. Redemptions

(756.250)

-

-

-

(756.250)

C3. Fair value losses

(48.087)

(13)

-

-

(48.100)

C4. Impairment losses

-

-

-

-

-

- through profit or loss

-

-

-

-

-

- equity-accounted

-

-

-

-

-

C5. Transfers to other portfolios

-

-

-

-

-

C6. Other changes

(13.629)

-

-

-

(13.629)

D. Closing balance

1.670.895

14.268

-

-

1.685.163

As for debt securities, the other increases refer to actual interests and gains realised on the sale of these securities, respectively for 31,129 thousand Euro and 504 thousand Euro; the other reductions refer to coupons received.

With regard to equity securities, purchases refer to the underwriting of the share capital increase in the non-controlling interest of the newly established company India Factoring and Finance Solutions Private Limited, based in Mumbai (India) and whose corporate purpose is to offer factoring, forfaiting and other trade finance products, particularly in the sector of small- and medium-sized companies.

The fair value gains and losses refer to the valuation of securities with a balancing entry in equity.

Section 6 – Due from banks – item 60

6.1 Due from banks: breakdown

Type/Amounts

31.12.2011

31.12.2010

A. Due from Central banks

13.127

106

1. Restricted deposits

 -

2. Legal reserve

13.127

106

3. Repurchase agreements

 -

 -

4. Others

 -

 -

B. Due from banks

302.770

227.907

1. Current accounts and on demand deposits

147.178

101.366

2. Restricted deposits

44.802

30.021

3. Other loans

 -

 -

3.1 Repurchase agreements

 -

 -

3.2 Finance leases

 -

 -

3.3 Other

 -

 -

4. Debt securities

110.790

96.520

4.1 Structured

 -

 -

4.2 Others

110.790

96.520

Total (carrying amount)

315.897

228.013

Total (fair value)

315.897

228.013

The sub-heading current accounts and demand deposits includes overnight deposits, partly traded on the e-Mid platform.

Other debt securities refer to bonds issued by banks which, given their characteristics, are classified under due from banks.

Lending financial resources to other credit institutions is not a core business for the Group: it is carried out for contingency purposes in order to maintain levels of liquidity exceeding year-end maturities.

The fair value of receivables due from banks is in line with the related carrying amount, considering the fact that interbank deposits and debt securities are short- or very short-term indexed-rate instruments.

Section 7 – Due from customers – item 70

7.1 Due from customers: breakdown

Type/Amounts

31.12.2011

31.12.2010

Performing

Impaired

Performing

Impaired

1. Current accounts

60.884

29.636

100.361

17.141

2. Repurchase agreements

-

-

-

-

3. Loans/mortgages

5.911

-

3.712

-

4. Credit cards, personal loans and salary-backed loans

-

-

-

-

5. Finance leases

-

-

-

-

6. Factoring

1.261.016

157.680

1.201.878

197.602

7. Other transactions

116.970

90.384

44.713

6.185

8. Debt securities

-

-

-

-

8.1 Structured

-

-

-

-

8.2 Others

-

-

-

-

 

 

 

 

 

Total (carrying amount)

1.444.781

277.700

1.350.664

220.928

Total (fair value)

1.452.322

303.063

1.350.664

220.928

“Other operations" includes non-performing loans and tax receivables acquired through the business combination with the Toscana Finanza Group, which occurred at 2011 half-year end. As of 31 December 2011, non-performing loans totalled 94,383 thousand Euro and were primarily classified as impaired assets, while tax receivables totalled 67,089 thousand Euro.

Impaired assets refer for 41,685 thousand Euro to net past due loans, of which 27,139 thousand Euro due from the Public Administration, within the factoring activity; given the quality of the credit and the debtor, there are no grounds to recognise collective impairment losses.

Indeed, these positions are part of the bank’s ordinary operations, which also involve, among other things, the outright purchase of already past due loans; their classification under impaired assets derives only from the obligation to comply with the law, which at present does not allow for exceptions, not even for high-quality receivables due from debtors capable of accumulating significant, albeit physiological, payment delays.

7.2 Due from customers: breakdown by debtor/issuer

Type/Amounts

31.12.2011

31.12.2010

Performing

Impaired

Performing

Impaired

1. Debt securities:

-

-

-

-

a) Governments

-

-

-

-

b) Other public entities

-

-

-

-

c) Other issuers

-

-

-

-

- non-financial companies

 

 

 

 

- Financial institutions

 

 

 

 

- Insurance companies

 

 

 

 

- others

 

 

 

 

2. Loans to:

1.444.781

277.700

1.350.664

220.928

a) Governments

35.173

3.806

1.523

6.174

b) Other public entities

394.175

36.291

243.207

41.054

c) Other issuers

1.015.433

237.603

1.105.934

173.700

- Non-financial companies

953.325

147.880

994.589

150.470

- Financial institutions

34.623

3.346

77.803

3.185

- Insurance companies

-

-

- Others

27.485

86.377

33.542

20.045

Total

1.444.781

277.700

1.350.664

220.928

Section 12 – Property, plant and equipment and investment property – item 120

12.1 Property, plant and equipment and investment property: breakdown of assets measured at cost

Assets/amounts

31.12.2011

31.12.2010

A. Assets for functional use

 

 

1.1 Owned

33.520

33.577

a) Land

6.738

6.738

b) Buildings

24.588

24.444

c) Furnishings

818

1.093

d) Electronic systems

538

480

e) Others

838

822

1.2 Acquired under finance leases

4.972

-

a) Land

 -

 -

b) Buildings

4.972

 -

c) Furnishings

 -

 -

d) Electronic systems

 -

 -

e) Others

 -

 -

Total A

38.492

33.577

B. Investment property

 

 

2.1 Owned

732

732

a) Land

 -

 -

b) Buildings

732

732

2.2 Acquired under finance leases

 -

 -

a) Land

 -

 -

b) Buildings

 -

 -

Total B

732

732

Total(A+B)

39.224

34.309

The property included under property, plant and equipment and investment property mainly includes: the important historical building Villa Marocco, located in Mestre (Venice) and housing Banca IFIS’s registered office, and the property in Mestre (Venice), partly sub-leased to the parent company, La Scogliera S.p.A.

The carrying amount of the property above has been confirmed by experts specialising in the appraisal of luxury property.

Following the acquisition of the Toscana Finanza Group, the latter’s head office in Florence, which was acquired under a finance lease, was recorded at 4,972 thousand Euro.

Some property of minor value is also recorded.

12.2 Property, plant and equipment and investment property: breakdown of assets measured at fair value or revalued

There were no property, plant and equipment and investment property valued at fair value or revalued.

12.3 Property, plant and equipment for functional use: annual changes

 

Land

Buildings

Furnishings

Electronic systems

Others

Total31.12.2011

A. Gross opening balances

6.738

25.149

3.616

2.528

1.848

39.879

A.1 Total impairment losses

 

(705)

(2.522)

(2.047)

(1.028)

(6.302)

A.2 Net opening balance

6.738

24.444

1.094

481

820

33.577

B. Increases

-

5.275

215

497

407

6.394

B.1 Purchases

5.275

215

497

407

6.394

B.2 Capitalised improvement expenses

5.053

72

114

114

5.353

B.3 Reversals of impairment losses

-

-

-

-

-

-

B.4 Fair value gains taken to:

-

-

-

-

-

-

a) Equity

-

-

-

-

-

-

b) Income statement

-

-

-

-

-

-

B.5 Exchange gains

-

-

-

-

-

-

B.6 Transfers from investment property

-

-

-

-

-

-

B.7 Other increases

-

-

-

-

-

-

C. Reductions

 

-

-

-

-

-

C.1 Sales

-

(159)

(491)

(440)

(389)

(1.479)

C.2 Depreciation

 

-

(1)

(3)

(98)

(102)

C.3 Impairment losses taken to:

 

(159)

(489)

(436)

(291)

(1.375)

a) Equity

-

-

-

-

-

-

b) Income statement

-

-

-

-

-

-

C.4 Fair value losses taken to:

-

-

-

-

-

-

a) Equity

-

-

-

-

-

-

b) Income statement

-

-

-

-

-

-

C.5 Exchange losses

-

-

-

-

-

-

C.6 Transfers to

-

-

-

-

-

-

a) Investment property

-

-

-

-

-

-

b) Assets under disposal

-

-

-

-

-

-

C.7 Other reductions

-

-

-

-

-

-

D. Net closing balance

-

-

(1)

(1)

 -

(2)

D.1 Total net impairment losses

6.738

29.560

818

538

838

38.492

D.2 Gross closing balances

(1.211)

(3.061)

(2.735)

(1.008)

(8.015)

E. Measurement at cost

6.738

30.771

3.879

3.273

1.846

46.507

A. Gross opening balances

-

-

-

-

-

-

Property, plant and equipment for functional use are measured at cost and are depreciated at constant rates throughout their useful life, with the exclusion of land with an indefinite useful life and the ‘Villa Marocco’ property, whose residual value at the end of its useful life is expected to be higher than its carrying amount.

Property, plant and equipment still not functioning at the reporting date are not depreciated.

12.4 Investment property: annual changes

 

31.12.2011

Land

Buildings

A. Gross opening balance

 -

732

B. Increases

-

-

B.1 Purchases

-

-

B.2 Capitalised improvement expenses

-

-

B.3 Fair value gains:

-

-

B.4 Reversals of impairment losses

-

-

B.5 Exchange gains

-

-

B.6 Transfers from property for functional use

-

-

B.7 Other increases

-

-

C. Reductions

-

-

C.1 Sales

-

-

C.2 Depreciation

-

-

C.3 Fair value losses

-

-

C.4 Impairment losses

-

-

C.5 Exchange losses

-

-

C.6 Transfers to other asset portfolios:

-

-

a) Assets for functional use

-

-

b) Non-current assets under disposal

-

-

C.7 Other reductions

-

-

D. Closing balance

-

732

E. Measurement at fair value

-

732

Property held for investment purposes refers to leased property. This property is not amortised as it is destined for sale.

Section 13 – Intangible assets – item 130

13.1 Intangible assets: breakdown by asset type

Assets/amounts

31.12.2011

31.12.2010

Finite life

Indefinite life

Finite life

Indefinite life

A.1 Goodwill:

X

792

X

868

A.1.1 Attributable to owners of the parent company

X

792

X

868

A.1.2 Non-controlling interests

X

X

A.2 Other intangible assets

5.304

-

2.818

-

A.2.1 Assets measured at cost:

5.304

-

2.818

-

a)Internally generated intangible assets

 -

 -

 -

 -

b)Other assets

5.304

2.818

A.2.2 Assets measured at fair value:

-

-

-

-

a)Internally generated intangible assets

 -

 -

 -

 -

b)Other assets

 -

 -

 -

 -

Total

5.304

792

2.818

868

Goodwill, equal to 792 thousand Euro, arises from the line-by-line consolidation process of the polish subsidiary IFIS Finance Sp. Z o.o.

The abovementioned goodwill was tested for impairment in accordance with IAS 36 (Impairment Test). To do so, goodwill was allocated to the cash-generating unit corresponding to the whole company IFIS Finance, as it represents an autonomous business segment which cannot be further broken down. The test was carried out by applying the value in use method based on the projection of expected cash flows for an explicit period of 5 years. Expected cash flows were discounted based on the estimated cost of the company’s share capital calculated using the Capital Asset Pricing Model. Expected cash flows were estimated based on the 2011-2013 business plan approved by the Board of Directors on 29 April 2011, while financial projections are based on the subsidiary’s average growth trends. The terminal value was calculated assuming that the last net cash flow in the explicit planning period is replicable. The impairment test did not reveal any impairment losses to be taken to the income statement.

Finally, goodwill underwent a sensitivity analysis based the cost of capital, using a fluctuation range equal to 5%: the test carried out with the control method confirmed the reliability of the recognised value.

The change in the value of goodwill compared to the previous year is attributable to the impact of changes in year-end exchange rates.

Other intangible assets at 31 December 2011 refer to software purchase and development for 4,788 thousand Euro, amortised on a straight-line basis over their estimated useful life, which is 5 years from their deployment.

Intangible assets also include 507 thousand Euro of residual value of the costs incurred for setting up the 5-year revolving securitisation, as described below. The future economic benefits of this transaction will arise from the opportunity for the Bank to secure financial resources at costs lower than those offered on the interbank market.

13.2 Intangible assets: annual changes

 

 

Goodwill

Other internally generated intangible assets

Other intangible assets

Total31.12.2011

A. Opening balance

868

-

-

2.818

-

3.686

A.1 Total impairment losses

-

-

-

-

-

-

A.2 Net opening balance

868

-

-

2.818

-

3.686

B. Increases

-

-

-

4.059

-

4.059

B.1 Purchases

-

-

-

4.059

-

4.059

Of which from business combination

-

-

-

973

-

973

B.2 Increases in internally generated intangible assets

X

-

-

-

-

-

B.3 Reversals of impairment losses

X

-

-

-

-

-

B.4 Fair value gains:

 

-

-

-

-

-

- Equity

X

-

-

-

-

-

- Income statement

X

-

-

-

-

-

B.5 Exchange gains

-

-

-

-

-

-

B.6 Other increases

-

 

 

-

 

-

C. Reductions

(76)

-

-

(1.573)

-

(1.649)

C.1 Sales

-

-

-

-

-

-

C.2 Impairment losses and amortisation:

-

-

-

(1.573)

-

(1.573)

- Amortisation

X

 

 

(1.573)

 

(1.573)

- Impairment losses

-

-

-

-

-

-

+ Equity

X

-

-

-

-

-

+ Income statement

-

-

-

-

-

-

C.3 Fair value losses

-

-

-

-

-

-

- Equity

X

-

-

-

-

-

- Income statement

X

-

-

-

-

-

C.4 Transfer to non-current assets under disposal

-

-

-

-

-

-

C.5 Exchange losses

(76)

-

-

-

-

(76)

C.6 Other reductions

 

 

 

-

 

-

D. Net closing balance

792

-

-

5.304

-

6.096

D.1 Total net amortisation, impairment losses and reversals of impairment losses

-

-

-

-

-

-

E. Gross closing balance

792

-

-

5.304

-

6.096

F. Measurement at cost

-

-

-

-

-

-

Key

Fixed: with a definite maturity date

Indef: with an indefinite maturity date

Purchases of 2,727 thousand Euro refer to investments aimed at enhancing IT systems.

Section 14 – Tax assets and liabilities – item 140 of assets and 80 of liabilities

14.1 Advance tax assets: composition

The main areas of advance tax assets are set out below.

Deferred tax assets

Total

Total

31.12.2011

31.12.2010

Available for sale securities

18.395

2.680

Due from customers

13.065

6.896

Others

964

355

Total

32.424

9.931

14.2 Deferred tax liabilities: composition

The main areas of deferred tax liabilities are shown below.

Deferred tax liabilities

Total

Total

31.12.2011

31.12.2010

Property, plant and equipment and investment property

6.900

1.231

Due from customers

2.627

2.627

Available for sale securities

9

0

Others

31

39

Total

9.567

3.897

14.3 Changes in advance tax assets (as a balancing entry in the income statement)

 

31.12.2011

31.12.2010

1 Opening balance

7.251

4.929

2 Increases

12.648

2.710

2.1 Deferred tax assets recognised in the current year

8.175

2.710

a) Relative to previous years

b) due to the change in accounting standards

c) Reversals of impairment losses

d) Other

8.175

2.710

2.2 New taxes or increases in tax rates

2.3 Other increases

4.473

3 Decreases

5.872

388

3.1 Deferred tax assets reversed during the year

5.872

388

a) reversals

5.872

388

b) impairment losses due to unrecoverability

c) due to change in accounting standard

d) Other

3.2 Reductions in tax rates

3.3 Other reductions

4 Closing balance

14.027

7.251

14.4Changes in deferred tax liabilities (as a balancing entry in the income statement)

 

31.12.2011

31.12.2010

1. Opening balance

3.897

2.976

2. Increases

6.721

1.220

2.1 Deferred tax liabilities recognised in the year

1.179

1.220

a) Relative to previous years

-

-

b) due to the change in accounting standards

-

-

c) other

1.179

1.220

2.2 New taxes or increases in tax rates

-

-

2.3 Other increases

5.542

-

3. Decreases

1.060

299

3.1 Deferred tax liabilities reversed during the year

1.060

32

a) reversals

1.060

32

b) due to the change in accounting standards

-

-

c) other

-

-

3.2 Reductions in tax rates

-

-

3.3 Other reductions

-

267

4. Closing balance

9.558

3.897

14.5 Changes in advance tax assets (as a balancing entry in equity)

 

31.12.2011

31.12.2010

1. Opening balance

2.680

-

2. Increases

15.768

2.680

2.1 Deferred tax assets recognised in the year

15.766

2.680

a) Relative to previous years

109

-

b) due to the change in accounting standards

-

-

c) other

15.657

2.680

2.2 New taxes or increases in tax rates

-

-

2.3 Other increases

2

-

3. Decreases

51

-

3.1 Deferred tax assets reversed during the year

51

-

a) reversals

51

-

b) impairment losses due to unrecoverability

-

-

c) due to change in accounting standards

-

-

d)Other

-

-

3.2 Reductions in tax rates

-

-

3.3 Other reductions

-

-

4. Closing balance

18.397

2.680

14.6 Changes in deferred tax liabilities (as a balancing entry in equity)

 

31.12.2011

31.12.2010

1. Opening balance

-

220

2. Increases

9

-

2.1 Deferred tax liabilities recognised in the year

9

-

a) Relative to previous years

-

-

b) Due to the change in accounting standards

-

-

c) Other

9

-

2.2 New taxes or increases in tax rates

-

-

2.3 Other increases

-

-

3. Decreases

-

220

3.1 Deferred tax liabilities reversed during the year

-

-

a) Reversals

-

-

b) Due to the change in accounting standards

-

-

c) Other

-

-

3.2 Reductions in tax rates

-

-

3.3 Other reductions

-

220

4. Closing balance

9

-

Section 16 – Other assets - item 160

16.1 Other assets: composition

 

31.12.2011

31.12.2010

- Receivables due from IFIS Collection Services

95.456

123.397

- Prepayments and accrued income

10.631

8.335

- Guarantee deposits

1.665

635

- Tax receivables

382

283

- Other items

3.473

3.093

Total

111.607

135.743

Receivables due from IFIS Collection Services, a special purpose vehicle set up specifically for the securitisation, arise from the fact that the revolving securitisation operation undertaken as from October 2008 was not derecognised, in compliance with IAS 39. This amount corresponds to the funds available to the vehicle arising from the receipts of receivables which have been resold and not yet paid to the originator, on the basis of the technical characteristics of the operation.

Accrued income and deferred expenses refer for 9,352 thousand Euro to prepaid interests in favour of customers with a fixed-term rendimax account.

LIABILITIES

Section 1 – Due to banks – item 10

1.1 Due to banks: breakdown

Type of operations/Components of group

31.12.2011

31.12.2010

1. Due to Central banks

1.861.829

152.420

2. Due to banks

139.905

600.037

2.1 Current accounts and on demand deposits

7.790

69.659

2.2 Term deposits

120.971

330.543

2.3 Loans

8.568

199.835

2.3.1 Repurchase agreements

-

199.835

2.3.2 Other

8.568

-

2.4 Debt from buyback commitments on treasury equity instruments

-

-

2.6 Other payables

2.576

-

Total

2.001.734

752.457

Fair value

2.001.734

752.457

Payables due to central banks refer to re-financing operations with the Eurosystem carried out by using debt securities.

The fair value of payables due to banks is in line with the related carrying amount, considering the fact that interbank deposits are short- or very short-term.

Section 2 – Due to customers – item 20

2.1 Due to customers: breakdown

Type of operation/Components of group

31.12.2011

31.12.2010

1. Current accounts and on demand deposits

494.482

560.436

2. Term deposits

1.100.469

773.551

3. Loans

53.514

468.024

3.1 Repurchase agreements

49.127

468.024

3.2 Other

4.387

-

4. Debt from buyback commitments on treasury equity instruments

-

-

5. Other payables

8.759

-

Total

1.657.224

1.802.011

Fair value

1.658.861

1.804.759

Current accounts and demand deposits at 31 December 2011 include 468,939 thousand Euro in funding from the rendimax demand deposit account, while the sub-heading fixed-term deposits includes 1,087,469 thousand Euro in funding from the fixed-term rendimax account.

Repurchase agreements were signed with Cassa di Compensazione e Garanzia as counterparty and are backed by government bonds.

Other payables refer to payables for finance leases, which are recognised by using the financial method set out in IAS 17 to measure the leased property acquired after the business combination with the Toscana Finanza Group, as detailed below.

2.5 Payables for finance leases

 

31.12.2011

31.12.2010

Payables for finance leases

 4.387

 -

The payables described above relate to the real estate lease the company Toscana Finanza SpA entered into in 2009 for the property located in Florence which housed the company's registered office and is now the headquarter of the non-performing loans (npl) division. The contract entered into with Centro Leasing S.p.A. is valid for 18 years (from 01.03.2009 to 01.03.2027) and provides for the payment of 216 monthly instalments of € 28,490, including the principal quota, interests and an option to buy the asset at the end of the contract for 1,876,800 Euro. The internal discounting rate applied is 5.32%.

Section 4 – Financial liabilities held for trading - item 40

4.1 Financial liabilities held for trading: breakdown

Type of operation/Components of group

31.12.2011

31.12.2010

VN

FV

FV *

VN

FV

FV *

Level 1

Level 2

Level 3

Level 1

Level 2

Level 3

  • Financial liabilities

 

 

 

 

 

 

 

 

 

 

1. Deposits from banks

-

-

-

-

-

-

-

-

-

-

2. Deposits from customers

 

-

-

-

-

-

-

-

-

-

3. Debt securities

-

-

-

-

-

-

-

-

-

-

3.1 Bonds

-

-

-

-

-

-

-

-

-

-

3.1.1 Structured

-

-

-

-

X

-

-

-

-

X

3.1.2 Other

-

-

-

-

X

-

-

-

-

X

3.2 Other securities

-

-

-

-

 

-

-

-

-

 

3.2.1 Structured

-

-

-

-

X

-

-

-

-

X

3.2.2 Other

-

-

-

-

X

-

-

-

-

X

Total A

-

-

-

-

-

-

-

-

-

-

B. Derivative instruments

 

 

 

 

 

 

 

 

 

 

1. Financial derivatives

 

-

201

399

 

 

-

-

-

 

1.1 Trading

X

-

201

399

X

X

-

-

-

X

1.2 Related to fv option

X

-

-

-

X

X

-

-

-

X

1.3 Other

X

-

-

-

X

X

-

-

-

X

2. Credit derivatives

 

-

-

-

 

 

-

-

-

 

2.1 Trading derivatives

X

-

-

-

X

X

-

-

-

X

2.2 Related to fv option

X

-

-

-

X

X

-

-

-

X

2.3 Other

X

-

-

-

X

X

-

-

-

X

Total B

 

-

201

399

-

-

-

-

-

 

Total (A+B)

X

-

201

399

X

X

-

-

-

X

Key

FV = Fair value

FV* = Fair value calculated excluding changes in value due to changes in the issuer’s creditworthiness compared to the date of issuance.

NV = Nominal or notional amount

Section 6- Hedging derivatives - item 60

6.1 Hedging derivatives: composition by type of hedge and by hierarchical levels

 

Fair value 31.12.2011

VN 31.12.2011

Fair value 31.12.2010

 

 

VN 31.12.2010

L1

L2

L3

L1

L2

L3

A) Financial derivatives

-

-

34

-

-

-

-

-

1) Fair value

-

-

-

-

-

-

-

-

2) Cash flows

-

-

34

2.576

-

-

-

-

3) Net investment in foreign subsidiaries

-

-

-

-

-

-

-

-

B. Credit derivatives

-

-

-

-

-

-

-

-

1) Fair value

-

-

-

-

-

-

-

-

2) Cash flows

-

-

-

-

-

-

-

-

Total

-

-

34

2.576

-

-

-

-

6.2 Hedging derivatives: composition by hedged portfolios and type of hedge

Transaction/Hedge types

Fair value

Cash flows

Foreign investment 

Micro-hedge

Macro-hedge

Micro-hedge

Macro-hedge

Interest rate risk

Currency risk

Credit risk

Price risk

Multiple risk

1. AFS

 -

 -

 -

 -

 -

X

 -

X

X

2. Loans and receivables

 -

 -

 -

X

 -

X

 -

X

X

3. HTM

X

 -

 -

X

 -

X

 -

X

X

4. Portfolio

 -

 -

 -

 -

 -

 -

 -

 -

X

5. Others

X

X

X

X

X

X

X

X

 -

Total assets

-

-

-

-

-

-

-

-

-

1. Financial liabilities

34

 -

 -

X

 -

X

 -

X

X

2. Portfolio

 -

 -

 -

 -

 -

 -

 -

 -

X

Total liabilities

34

-

-

-

-

-

-

-

- 

1. CFH

X

X

X

X

X

X

 -

X

X

2. Financial assets and liabilities portfolio

X

X

X

X

X

X

X

 -

 -

Section 8 – Tax liabilities – item 80

Please refer to section 14 under assets.

Section 10 – Other liabilities – item 100

10.1 Other liabilities: composition

 

31.12.2011

31.12.2010

- Accrued expenses and deferred income

8.111

11.128

- Due to suppliers

5.825

4.272

- Due to the Tax Office and Social Security agencies

5.550

4.529

- Sums available to customers

3.024

2.335

- Due to personnel

2.137

1.598

- Other payables

20.952

11.259

Total

45.599

35.121

Accrued expenses and deferred income largely consists of management and guarantee fees for receivables acquired in factoring transactions. They are recognised in the income statement based on their maturity.

Payables dues to the Tax Office and Social Security agencies include 3,253 thousand Euro in withholding tax on interests paid to customers, in particular with regard to the online rendimax savings account.

Other payables refer for 14,756 thousand Euro to the amount of illiquid items to be credited to customers for amounts whose value date has not yet been reached. They also include 3,320 thousand Euro in payables due to the parent company, La Scogliera S.p.A., arising from the application of group taxation (tax consolidation) as per article 117 et seq of Presidential Decree no. 917/86 and representing Banca IFIS’s current corporate tax (IRES) payables, net of tax advances paid during the year and corporate tax (IRES) receivables accrued in previous years for 209 thousand Euro. The result in terms of taxable income takes into account the offsetting of the parent company’s tax losses in accordance with regulations and based on specific agreements between the Group’s companies.

Section 11 – Post-employment benefits – item 110

11.1 Post-employment benefits: annual changes

 

31.12.2011

31.12.2010

A. Opening balance

1.060

1.055

B. Increases

627

40

B.1 Allocations for the year

122

35

B.2 Other increases

505

5

C. Reductions

238

35

C.1 Payments made

160

31

C.2 Other reductions

78

4

D. Closing balance

1.449

1.060

Total

1.449

1.060

Other increases refer for 495 thousand Euro to the new subsidiaries, as well as to the incorporated company, which became part of the Group’s consolidation scope as from the second half of 2011, following the business combination with the Toscana Finanza Group completed on 30 June 2011.

“Other decreases” represent the impact of the discounting of the provision accrued up to 31 December 2006 and still held in the company.

Payments made, instead, represent the benefits paid to employees during the year.

11.2 Other information

Under IASs/IFRSs, a company’s liabilities regarding benefits that will be paid to employees at the conclusion of the employer/employee relationship (post-employment benefits) should be recognised based on actuarial calculations of the amount that will be paid at maturity.

Specifically, these allocations must take into account the amount already accrued over the period at the reporting date, projecting it into the future in order to calculate the amount that will be paid at the conclusion of the employer/employee relationship. This sum must then be discounted to take into account the time that will pass until payment.

Following the coming into force of the 2007 Finance Law, which brought the reform regarding supplementary pension plans - as per Legislative Decree no. 252 of 5 December 2005 - forward to 1 January 2007, the employee was given a choice as to whether to allocate the post-employment benefit maturing as from 1 January 2007 to supplementary pension funds or to maintain it in the company, which would then transfer it to a dedicated fund managed by INPS (the Italian National Social Security Institute).

This reform has led to changes in the accounting of such benefit as for both the benefits earned up to 31 December 2006 and those earned from 1 January 2007.

In particular:

- benefits earned as from 1 January 2007 constitute a defined-contribution plan, whether the employee has chosen to allocate them to a supplementary pension fund or to INPS’s Treasury Fund. Those benefits shall be calculated according to contributions due without applying actuarial methods;

- benefits earned up to 31 December 2006 continue to be considered as a defined-benefit plan, and as such are calculated on an actuarial basis which, however, unlike the calculation method applied until 31 December 2006, no longer implies that the benefits be proportionally attributed to the period of service rendered: the employee’s service is considered entirely accrued due to the change in the accounting nature of benefits earned as from 1 January 2007.

Section 12 – Provision for risks and charges – item 120

12.1 – Provisions for risks and charges composition

Items/Components

31.12.2011

31.12.2010

1 Pensions and other post retirement benefit obligations

407

-

2. Other provisions for risks and charges

-

-

2.1 Legal disputes

-

-

2.2 Staff expenses

-

-

2.3 Other

-

-

Total

407

-

The value of the provision for risks and charges at 31 December 2011 arises from the business combination involving the Toscana Finanza Group completed on 30 June 2011, and consists for 16 thousand Euro of the “Provision for supplementary customer allowances for agents” and for 391 thousand Euro of the “Provision for directors’ termination pay”.

The Banca IFIS Group did not constitute a provision for other risks and charges following the events described below, as it does not deem necessary to do so:

On 25 July 2008 The Italian Revenue Agency – Regional Department of Veneto started a check relating to the tax year 2005. This check ended on 5 December 2008 with the issuance of a report of verification, which revealed two findings, both connected to the correct determination of the ceiling for the deduction of receivables pursuant to article 106, para. 3, of Presidential Decree 917/86, for a total of 1,447 thousand Euro. Moreover, considering that the ceiling mechanism sets limits for deducting impairment losses on receivables and that the surplus (arising from the difference between the ceiling and net impairments) is deductible on a straight-line basis over the next eighteen periods, the application of the criterion indicated in the aforementioned report of verification would imply a tax benefit for the Bank in the years following 2005. On 21 June 2010 Banca IFIS received a Verification Notice regarding the two findings above, claiming it had a tax liability relating to the year 2005 of approximately 478 thousand Euro plus interest and sanctions.

The aforementioned report of verification included also a notification regarding an alleged case of tax evasion as set out in article 37-bis of Presidential Decree 600/73 regarding the write-down in 2003 of the equity investment in Immobiliare Marocco S.p.A. (which merged into the Issuer with the deed of 19 October 2009). This investment was deducted in fifths in the following years based on the losses recognised by this company pursuant to articles 61 and 66 of Presidential Decree 917/86 (in force up to 31 December 2003). On 2 February 2009 the Agency sent a verification notice to the Bank, requesting clarification on the write-down. The Bank promptly replied to it.

Again in reference to the notification of the alleged tax evasion, on 3 December 2009 the Bank received a verification notice relationg to the year 2004, in which the Revenue Agency revised the income for the year 2004 subject to the corporate tax (IRES), applying the anti-evasion provision as set out in article 37-bis of Presidential Decree 600/73 for a total of 837 thousand Euro, with a greater tax liability relating to the tax year in question of approximately 276 thousand Euro plus interest and sanctions. Moreover, on 21 June 2010, the Bank received a verification notice referring to the following year, in which the Revenue Agency revised the income for the year 2005 subject to the corporate tax (IRES), applying the anti-evasion provision as set out in article 37-bis of Presidential Decree no. 600/73, for a total amount of 837 thousand Euro, with a greater tax liability relating to the tax year in question of approximately 276 thousand Euro plus interest and sanctions. The same verification notice relating to the year 2005 recorded as deferred tax assets the amount relating to the redetermination of the ceiling for decuting losses on receivables as described above, for a total of 1,447 thousand Euro.

Subsequently, by the end of 2010 the Bank received a notice cancelling under the appeal process the verification notices issued for 2005. There is currently no further information regarding these notices, and the deadlines for tax verification for the years in question expired on 31 December 2010.

On 22 February 2011 the appeal regarding the verification notice for the tax year 2004 was discussed before the first level Provincial Tax Commission of Venice. On 29 June 2011, the Provincial Tax Commission of Venice rejected the appeal. Subsequently, the company filed an appeal with the Regional Tax Commission against this sentence.

The Bank, comforted by the opinion of its tax advisor, believes the Revenue Agency’s claims to be compeletely unfounded, as it believes the laws in force at the time of the relevant dispute were fully applied and also in the light of recent tax provisions regarding parties applying the IASs.

Therefore, the bank does not consider this contingent liability as probable.

12.2 – Provisions for risks and charges annual changes

Items/Components

31.12.2011

Pensions and post retirement benefit obligations

Other provisions

A. Opening balance

 

 

B. Increases

407

-

B.1 Provisions for the year

 

 

B.2 Changes due to the passage of time

 

 

B.3 Differences due to discount-rate changes

 

 

B 4 Other increases

407

 

C. Decreases

-

-

C.1 Use during the year

 

 

C.2 Differences due to discount-rate changes

 

 

C.3 Other decreases

 

 

D. Closing balance

407

-

Section 15 – Equity attributable to owners of the parent company – items 140, 160, 170, 180, 190, 200 and 220

15.1 Share capital and treasury shares: composition

Items/Components

31.12.2011

31.12.2010

190

Share capital (in thousands of Euro)

53.811

53.811

 

Number of ordinary shares

53.811.095

53.811.095

 

Nominal amount of ordinary shares

1 euro

1 euro

200

Treasury shares (in thousands of Euro)

3.968

13.498

 

Number of treasury shares

997.190

2.229.017

15.2 Share capital – number of parent company shares: annual changes

Items/Components

Ordinaries

Others

A. Shares held at the beginning of the year

53.811.095

-

- fully paid-up

53.811.095

-

- not fully paid-up

-

-

A.1 Treasury shares (-)

(2.229.017)

-

A.2 Outstanding shares: opening balance

51.582.078

-

B. Increases

4.074.179

-

B.1 New issues

-

-

- paid:

-

-

- business combinations

-

-

- conversion of bonds

-

-

- exercise of warrants

-

-

- Other

-

-

- free:

-

-

- in favour of employees

-

-

- in favour of directors

-

-

- Other

-

-

B.2 Sale of treasury shares

1.052.141

-

B.3 Other increases

3.022.038

-

C. Reductions

(2.842.352)

-

C.1 Annulments

-

-

C.2 Buybacks of treasury shares

(2.842.352)

-

C.3 Company sell-offs

-

-

C.4 Other reductions

-

-

D. Outstanding shares: closing balance

52.813.905

-

D.1 Treasury shares (+)

997.190

-

D.2 Shares held at the end of the year

53.811.095

-

- fully paid-up

53.811.095

-

- not fully paid-up

-

-

Other increases include 1,410,405 shares for the distribution of treasury shares as part of the dividend on net income for the year 2010, as well as 1,611,633 shares for the swap relative to the merger of Toscana Finanza S.p.A., which was carried out by using treasury shares in the portfolio.

15.3 Share capital: other information

Share capital is composed of 53,811,095 ordinary shares with a nominal value of 1 euro each, bearing no rights, liens and obligations, including those relating to dividend distribution and capital redemption.

15.4 Income-related reserves: other information

Items/Components

31.12.2011

31.12.2010

Legal reserve

10.762

6.373

Extraordinary reserve

57.725

50.236

Other reserves

2.783

1.428

Total income-related reserves

71.270

58.037

Buyback reserve

3.968

13.498

Future buyback reserve

16.032

6.502

Total item 170 -reserves

91.270

78.037

Other information

1. Commitments and guarantees granted

Transactions

31.12.2011

31.12.2010

1) Financial guarantees

4.941

3.852

a) Banks

4.714

3.625

b) Customers

227

227

2) Commercial guarantees

-

-

a) Banks

-

-

b) Customers

-

-

3) Irrevocable commitment to grant funds

29.346

37.827

a) Banks

-

-

i) Certain use

-

-

ii) Uncertain use

-

-

b) Customers

29.346

37.827

i) Certain use

 

-

ii) Uncertain use

29.346

37.827

4) Commitments underlying credit derivatives: Sale of protection

-

-

5) Assets used as collateral by third parties

-

2.340

6) Other commitments

610.892

106.600

Total

645.179

150.619