2.1 Scope of application of the law
Consolidated own funds, risk-weighted assets and solvency ratios at 31 December 2014 were determined based on the new harmonised framework set out in Directive 2013/36/EU (CRD IV) and Regulation (EU) 575/2013 (CRR) dated 26 June 2013, as well as Bank of Italy's Circulars no. 285 and 286 (issued during 2013) and the update to Circular no. 154.
Article 19 of the CRR requires to include the unconsolidated Holding of the banking group in prudential consolidation.
Pursuant to the provisions concerning own funds, the new regulatory framework will be gradually phased in over a transitional period extending until approximately 2017.
2.2 Banking own funds
A. Qualitative information
1. Common equity Tier 1 Capital (CET1)
A) Common equity Tier 1 Capital (CET1)
This item includes:
- 11,1 million Euro in paid-up capital instruments;
- 10,9 million Euro in share premium;
- 0,3 million Euro in own CET1 instruments;
- 242,1 million Euro in other reserves, including retained earnings; specifically, this item includes the 47,8 million Euro profit recognised under Own Funds pursuant to article 26 of the CRR, less the foreseeable dividends to be paid to the owners of the Parent, totalling 34,9 million Euro;
- accumulated other comprehensive income, negative to the tune of 0,05 million Euro and consisting of:
- 0,1 million Euro in the negative reserve for actuarial losses deriving from defined-benefit plans in accordance with the new IAS19;
- 3,2 million Euro in positive reserves for available for sale financial assets;
- 3,1 million Euro in negative reserves from exchange differences;
- 96,3 million Euro in minority interests given recognition in CET1.
D) Items to be deducted from CET1
This item includes the following main aggregates:
- 42,2 million Euro in goodwill and other intangible assets.
E) Transitional regime - Impact on CET1 (+/-), including minority interests subject to transitional provisions
This item includes the following transitional adjustments:
- exclusion of unrealised gains on AFS securities, totalling 3,2 million Euro (-);
- positive filter on negative actuarial reserves (IAS 19), amounting to 0,1 million Euro (+);
- inclusion of minority interests subject to transitional provisions, totalling 72,4 million Euro (+).
2. Additional Tier 1 Capital (AT1)
G) Additional Tier 1 Capital (AT1) gross of items to be deducted and the effects of the transitional regime
This item includes eligible minority interests given recognition in AT1, amounting to 12,8 million Euro;
I) Transitional regime - Impact on AT1 (+/-), including instruments issued by subsidiaries that are given recognition in AT1 pursuant to transitional provisions
This item includes minority interests subject to transitional provisions eligible to be recognised in AT1, totalling 10,2 million Euro (-).
3. Tier 2 Capital (T2)
M) Tier 2 Capital (T2) gross of items to be deducted and the effects of the transitional regime
This item includes eligible minority interests given recognition in T2, amounting to 31,8 million Euro;
O) Transitional regime - Impact on T2 (+/-), including instruments issued by subsidiaries that are given recognition in T2 pursuant to transitional provisions
This item includes:
- positive national filter introduced by Bank of Italy Circular no. 285, equal to 80% of the 50% of unrealised gains on AFS securities, which amounts to 0,06 million Euro (+);
- minority interests subject to transitional provisions eligible to be recognised in T2, totalling 25,4 million Euro (-).
B. Quantitative information
31.12.2014 | 31.12.2013 | |
---|---|---|
A. Common Equity Tier 1 (CET1) before application of prudential filters | 360.118 | 332.851 |
of which CET1 instruments subject to transitional provisions | - | |
B. CET1 prudential filters (+/-) | - | - |
C. CET1 gross of items to be deducted and the effects of the transitional regime (A+/-B) | 360.118 | 347.212 |
D. Items to be deducted from CET1 | 42.205 | 14.361 |
E. Transitional regime - Impact on CET1 (+/-), including minority interests subject to transitional provisions | 69.308 | - |
F. Total Common Equity Tier 1 (CET1) (C-D+/-E) | 387.221 | 332.851 |
G. Additional Tier 1 Capital (AT1) gross of items to be deducted and the effects of the transitional regime | 12.738 | - |
of which AT1 instruments subject to transitional provisions | ||
H. Items to be deducted from AT1 | - | - |
I. Transitional regime - Impact on AT1 (+/-), including instruments issued by subsidiaries that are given recognition in AT1 pursuant to transitional provisions | (10.190) | - |
L. Total Additional Tier 1 Capital (AT1) (G-H+/-I) | 2.548 | - |
M. Tier 2 Capital (T2) gross of items to be deducted and the effects of the transitional regime | 31.788 | 449 |
of which T2 instruments subject to transitional provisions | ||
N. Items to be deducted from T2 | - | 5.169 |
O. Transitional regime - Impact on T2 (+/-), including instruments issued by subsidiaries that are given recognition in T2 pursuant to transitional provisions | (25.367) | - |
P. Total Tier 2 Capital (T2) (M-N+/-O) | 6.421 | (4.720) |
Q. Total own funds (F+L+P) | 396.190 | 328.131 |
(1) Data recognised according to the previous regulations (Basel 2).
2.3 Capital adequacy
A. Qualitative information
Starting from 1 January 2014, Italian banks must meet a CET 1 ratio of at least 4,5%, a Tier 1 ratio of at least 5,5% (6% from 2015), and a Total Capital Ratio of at least 8%. In addition to these minimum ratios, starting from 1 January 2014, banks must also hold a capital buffer of 2,5% of the bank's overall risk exposure represented by common equity tier 1 capital.
As showed in the table on the breakdown of risk-weighted assets and prudential ratios, at 31 December 2014, the Banca IFIS Group had a CET1 capital ratio of 13,9%, a Tier1 capital ratio of 14,0%, and a Total capital ratio of 14,2%.
B. Quantitative information
Categories/Items | Non-weighted amounts | Weighted amounts/ requirements | ||
---|---|---|---|---|
31.12.2014 | 31.12.2013 | 31.12.2014 | 31.12.2013 | |
A. RISK ASSETS | ||||
A.1 CREDIT RISK AND COUNTERPARTY RISK | 8.392.539 | 11.357.010 | 2.259.474 | 2.011.893 |
1. Standardised approach | 8.392.539 | 11.357.010 | 2.259.474 | 2.011.893 |
2. Internal rating method | - | - | - | - |
2.1 Basic indicator approach | - | - | - | - |
2.2 Advanced measurement approach | - | - | - | - |
3. Securitisation programmes | - | - | - | - |
B. REGULATORY CAPITAL REQUIREMENTS | - | - | ||
B.1 CREDIT RISK AND COUNTERPARTY RISK | 180.758 | 160.952 | ||
B 2. Credit valuation adjustment risk | - | - | ||
B 3. Settlement risk | - | - | ||
B.4 MARKET RISKS | 2.541 | 2.333 | ||
1. Standard method | 2.541 | 2.333 | ||
2. Internal models | - | - | ||
3. Concentration risk | - | - | ||
B.5 OPERATIONAL RISK | 39.735 | 31.403 | ||
1. Basic indicator approach | 39.735 | 31.403 | ||
2. Standardised approach | - | - | ||
3. Advanced measurement approach | - | - | ||
B.6 Other calculation factors | - | - | ||
B.7 Total prudential requirements | 223.034 | 194.688 | ||
C. RISK ASSETS AND CAPITAL REQUIREMENT RATIOS | - | - | ||
C.1 Risk-weighted assets | 2.787.920 | 2.433.597 | ||
C.2 Common equity Tier 1 Capital/Risk-weighted assets (CET 1 Capital ratio) | 13,89% | 13,68% | ||
C.3 Tier 1 Capital /Risk-weighted assets (Tier 1 capital ratio) | 13,98% | 13,68% | ||
C.4 Total own funds/ Risk-weighted assets (Total capital ratio) | 14,21% | 13,48% |
(1) Data recognised according to the previous regulations (Basel 2).