2014 results

BPVi Group

2014 results
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Continuing growth in Customers and Shareholders, with retention and customer satisfaction ratings among the highest in the industry

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Complete financial statements
Press Release

Message to the Stakeholders

Knight of Labour Giovanni Zonin

Chairman of Banca Popolare
di Vicenza

“The Board of Directors made courageous and prudential decisions in the interest of the Bank and of the Shareholders and in compliance with the new indications of the European Central Bank. I am confident that this highly prudential policy will yield positive results in the current year and that we’ll be able to address with greater ease the new rules and the consequent significant changes imposed by the new Italian decree on co-operative banks.”

Profile

Our history

For 149 years at the service of local communities.

Founded in 1886, Banca Popolare di Vicenza is the first co-operative bank of Veneto and the first bank to be established in Vicenza.

Da 149 anni al servizio del territorio
drag

The Banca Popolare di Vicenza Group operates nationwide with significant market shares in Northeastern, Central and Southern Italy. The Parent Company Banca Popolare di Vicenza operates directly in the northern and central regions of Italy, while the subsidiary Banca Nuova has a strong presence in Sicily and Calabria.

With a view to offering its customers a full and innovative range of services, the Group has set up product companies or entered into business agreements with companies operating in the consumer credit, insurance, asset management and private equity sectors.

Group structure by business areas

Group structure

by business areas

Our distribution model

We are the 7th largest Italian bank in terms of number of branches, the 8th in total assets and the 10th in number of employees.

  • 654 branches
  • Euro 46,475 million total assets
  • 5,515 employees

We operate in 16 regions accounting for approximately 96% of Italian GDP.

  • 701 outlets
  • 119 financial promoters
  • 180 financial agents

Read more

Our distribution model

A set of initiatives to revise and improve the BPVi Group's distribution model was launched in 2013, confirming the crucial role of branches as main development channels in the relationship with customers. For this reason, in the last few years the BPVi Group has strengthened its presence throughout Italy, in 2014 through the targeted opening of branches in important locations like Naples and Lecce, the acquisition of 1 branch in Turin from Banca Popolare di Spoleto and of 16 branches from Cassa di Risparmio di Ferrara (14 in Lazio, 2 in Emilia Romagna).

Alongside and in support of branches, the Group continues to develop alternative and complementary channels to promote Bank-Customer relationships, for example digital channels, contact centres and third-party agent and financial promoter networks. January 2015 saw the launch of BPViGO!, the BPVi Group's new online banking platform: with features scheduled to be rolled out in the next few months, customers will be able to use internet and mobile banking channels as well as new, innovative services like the fully paperless opening of accounts and the possibility to interact with their relationship manager remotely (through the video call feature).

The programme for the evolution of the BPVi Group’s distribution model is based on a strengthening of the networks of freelance professionals (Financial Promoters and Financial Agents) in support of the branches’ operations, with the goal of acquiring and gaining the loyalty of a significant number of new customers, both in the Private and in the Small Business segment, assuring high levels of service and adequate risk management. At 31 December 2014, the financial promoter network comprised 119 professionals (56 of BPVi and 63 of Banca Nuova), whilst at the same date, the number of agents operating at the new BPVi Group company called “BPVI Multicredito Agenzia in Attività Finanziaria Spa” counted at 180 professionals (168 at 31 December 2013) operating in 43 provinces.

Geographic distribution of outlets (Euro million)

Geographic distribution of outlets

Read more

Geographic distribution of outlets

Geographic distribution of outlets

The BPVi Group has 6 Representative Offices abroad, whose purpose is to facilitate commercial transactions between Italian companies and the principal international markets, providing appropriate services for entrepreneurs intending to expand in those areas, and to develop lasting business relations with the principal and most experienced banking counterparties in these countries.

In countries where the Representative Offices operate and in the others where BPVi Group does not maintain a direct or indirect presence, to provide the best support to companies in international markets, cooperation agreements have been signed with 71 foreign banks with a total network of approximately 85,000 branches, located in 47 countries.

Our Representative Offices

We are the 7th largest Italian bank in terms of number of branches, the 8th in total assets and the 10th in number of employees.

  • 654 branches
  • Euro 46,475 million total assets
  • 5,515 employees

We operate in 16 regions accounting for approximately 96% of Italian GDP.

  • 701 outlets
  • 119 financial promoters
  • 180 financial agents

Read more

Our distribution model

A set of initiatives to revise and improve the BPVi Group's distribution model was launched in 2013, confirming the crucial role of branches as main development channels in the relationship with customers. For this reason, in the last few years the BPVi Group has strengthened its presence throughout Italy, in 2014 through the targeted opening of branches in important locations like Naples and Lecce, the acquisition of 1 branch in Turin from Banca Popolare di Spoleto and of 16 branches from Cassa di Risparmio di Ferrara (14 in Lazio, 2 in Emilia Romagna).

Alongside and in support of branches, the Group continues to develop alternative and complementary channels to promote Bank-Customer relationships, for example digital channels, contact centres and third-party agent and financial promoter networks. January 2015 saw the launch of BPViGO!, the BPVi Group's new online banking platform: with features scheduled to be rolled out in the next few months, customers will be able to use internet and mobile banking channels as well as new, innovative services like the fully paperless opening of accounts and the possibility to interact with their relationship manager remotely (through the video call feature).

The programme for the evolution of the BPVi Group’s distribution model is based on a strengthening of the networks of freelance professionals (Financial Promoters and Financial Agents) in support of the branches’ operations, with the goal of acquiring and gaining the loyalty of a significant number of new customers, both in the Private and in the Small Business segment, assuring high levels of service and adequate risk management. At 31 December 2014, the financial promoter network comprised 119 professionals (56 of BPVi and 63 of Banca Nuova), whilst at the same date, the number of agents operating at the new BPVi Group company called “BPVI Multicredito Agenzia in Attività Finanziaria Spa” counted at 180 professionals (168 at 31 December 2013) operating in 43 provinces.

Geographic distribution of outlets (Euro million)

Geographic distribution of outlets

Read more

Geographic distribution of outlets

Geographic distribution of outlets

The BPVi Group has 6 Representative Offices abroad, whose purpose is to facilitate commercial transactions between Italian companies and the principal international markets, providing appropriate services for entrepreneurs intending to expand in those areas, and to develop lasting business relations with the principal and most experienced banking counterparties in these countries.

In countries where the Representative Offices operate and in the others where BPVi Group does not maintain a direct or indirect presence, to provide the best support to companies in international markets, cooperation agreements have been signed with 71 foreign banks with a total network of approximately 85,000 branches, located in 47 countries.

Our Representative Offices

Our people

At 31 December 2014, the BPVi Group had a workforce of 5,515 employees.

Our people are our key assets: we recognise that their potential and skills play a strategic role in our pursuit of excellence and for the maintenance of a high standard of service based on the Customer First principle.

We believe that we can grow with our people, developing their experience and skills and recognising their contribution.

This is why we invest in individual talent, offering targeted training paths that everyone can access according to their education and professional development needs.

In 2014, BPVi Group company personnel received 34,552 training days, 13.4% more than in 2013.

Participation in corporate culture and values is an essential tool to promote a sense of belonging: since 2013, we have made significant investments in internal communication initiatives, with the objective to facilitate the dissemination of information systematically across the company and to encourage active participation and cooperation.

Mission and values

Ever since the bank was founded, our key objective has been to operate so that

“the working classes, small enterprises, small businesses and shopkeepers could easily access the credit made available by the fruitful and liberal system of social security and mutual insurance”.

Source: Programmatic Manifesto of Banca Popolare di Vicenza, 1867

This is where our “approach to banking” comes from: typical of the co-operative bank model, it translates into

  • Traditional banking operations
  • Symbiotic ties to the Shareholders and the local communities

Our Customer base

Our “approach to banking” has helped us to improve the appreciation and satisfaction of our Customers and to increase their number to nearly 1.4 million at the end of 2014 (+4.8% in the last year); recent customer satisfaction surveys showed that our Group has achieved the highest Customer acquisition and retention levels among Italian credit institutions.

Our Customer base

Our Customer base

We have a strong focus on households and small to medium enterprises, which account for more than 98% of our Customers and 97% of loans.

In 2014, although the macroeconomic environment remained challenging, the BPVi Group confirmed its commitment to supporting local small and medium enterprises, both through ordinary lending activities and through the launch of innovative initiatives, aimed at strengthening the financial structure of the borrowers.

Read more

Customer base breakdown

Banca Popolare di Vicenza has entered into a number of agreements with major trade association, credit guarantee consortia (Confidi) and public agencies operating in the areas where BPVI Group is present. With approximately 600 agreements and conventions in place at the end of December, the Group's lending capabilities contribute to the country's economic recovery and are at the service of Public Institutions.

Customers

Customer base breakdown

The BPVi Group is one of the very few Italian banking groups that recorded an increase in loans: +2.6% from the end of 2010 to the end of 2014, with a total of 11.7 billion Euro of new loans disbursed to households and businesses in the last 4 years. This trend has been sustained, in particular, by intense activity in new loan origination. of new origination: Despite continuing weakness in demand, in 2014 the Group granted approximately Euro 2.4 billion of new loans, of which 37% were to households and 44% to small and medium enterprises in the areas where the Group operates.

Read more

Loan breakdown

Our constant commitment to supporting economic recovery in the areas where we operate is confirmed not only by our intense lending activity, but also by important and innovative initiatives aimed at providing a practical response to the structural financial needs of enterprises, for example through minibonds or assistance to SMEs in their listing process. In particular, in the minibond offer Banca Popolare di Vicenza is establishing itself as one of the most dynamic institutions in the market, and in 2014 had already achieved a market share of 43% in terms of volumes in the Euro 5-50 million segment.

Loan breakdown

Loan breakdown

Read more

Loan breakdown

  • Individuals:
    Households, Private and Affluent, Employees and Prestinuova

  • SME:
    Small Business (turnover <2,5 mln €), Small and Medium Enterprises (turnover between 2,5 mln € and 50 mln €)

  • Upper and Large Corporate:
    Companies with turnover > 50 mln €

  • Other:
    Securities classified as L&R, loans by other companies of the Group

Our “approach to banking” has helped us to improve the appreciation and satisfaction of our Customers and to increase their number to nearly 1.4 million at the end of 2014 (+4.8% in the last year); recent customer satisfaction surveys showed that our Group has achieved the highest Customer acquisition and retention levels among Italian credit institutions.

Our Customer base

Our Customer base

We have a strong focus on households and small to medium enterprises, which account for more than 98% of our Customers and 97% of loans.

In 2014, although the macroeconomic environment remained challenging, the BPVi Group confirmed its commitment to supporting local small and medium enterprises, both through ordinary lending activities and through the launch of innovative initiatives, aimed at strengthening the financial structure of the borrowers.

Read more

Customer base breakdown

Banca Popolare di Vicenza has entered into a number of agreements with major trade association, credit guarantee consortia (Confidi) and public agencies operating in the areas where BPVI Group is present. With approximately 600 agreements and conventions in place at the end of December, the Group's lending capabilities contribute to the country's economic recovery and are at the service of Public Institutions.

Customers

Customer base breakdown

The BPVi Group is one of the very few Italian banking groups that recorded an increase in loans: +2.6% from the end of 2010 to the end of 2014, with a total of 11.7 billion Euro of new loans disbursed to households and businesses in the last 4 years. This trend has been sustained, in particular, by intense activity in new loan origination. of new origination: Despite continuing weakness in demand, in 2014 the Group granted approximately Euro 2.4 billion of new loans, of which 37% were to households and 44% to small and medium enterprises in the areas where the Group operates.

Read more

Loan breakdown

Our constant commitment to supporting economic recovery in the areas where we operate is confirmed not only by our intense lending activity, but also by important and innovative initiatives aimed at providing a practical response to the structural financial needs of enterprises, for example through minibonds or assistance to SMEs in their listing process. In particular, in the minibond offer Banca Popolare di Vicenza is establishing itself as one of the most dynamic institutions in the market, and in 2014 had already achieved a market share of 43% in terms of volumes in the Euro 5-50 million segment.

Loan breakdown

Loan breakdown

Read more

Loan breakdown

  • Individuals:
    Households, Private and Affluent, Employees and Prestinuova

  • SME:
    Small Business (turnover <2,5 mln €), Small and Medium Enterprises (turnover between 2,5 mln € and 50 mln €)

  • Upper and Large Corporate:
    Companies with turnover > 50 mln €

  • Other:
    Securities classified as L&R, loans by other companies of the Group

Our Shareholders

Our Stockholder base consists of 116,797 Members/Stockholders at the end of 2014 - more than twice compared to the end of 2008.

  • 89% individuals
  • 80% Northern Italian residents

Shareholder base dynamics

Shareholder base dynamics

Our Stockholder base consists of 116,797 Members/Stockholders at the end of 2014 - more than twice compared to the end of 2008.

  • 89% individuals
  • 80% Northern Italian residents

Who

Who

Our Stockholder base consists of 116,797 Members/Stockholders at the end of 2014 - more than twice compared to the end of 2008.

  • 89% individuals
  • 80% Northern Italian residents

Where

Where

Our Stockholder base consists of 116,797 Members/Stockholders at the end of 2014 - more than twice compared to the end of 2008.

  • 89% individuals
  • 80% Northern Italian residents

Shareholder base dynamics

Shareholder base dynamics

Our Stockholder base consists of 116,797 Members/Stockholders at the end of 2014 - more than twice compared to the end of 2008.

  • 89% individuals
  • 80% Northern Italian residents

Who

Who

Our Stockholder base consists of 116,797 Members/Stockholders at the end of 2014 - more than twice compared to the end of 2008.

  • 89% individuals
  • 80% Northern Italian residents

Where

Where

2014 scenario

Macroeconomic environment

In 2014, the Euro Area economic trend is positive in Germany and recovering in Spain and, to a lesser extent, in France. In Italy the recovery is still unstable, giving way to a new recessionary phase, brought about once again by the weak industrial production and by the persistent fragility of domestic demand, with only moderate support from exports.

Read more

Macroeconomic environment

The continuing expansionary monetary policy by the ECB led to a general reduction of reference rates, which resulted in a decrease in the cost of funding as well as a drop in the rates applied to loans to households and enterprises, in the case of the latter also due to greater competitive pressure among credit institutions.

During 2014, however, the persisting challenges and uncertainties in the national economic scenario were detrimental to Italian banks, whose lending activities decreased. This negative trend is due on the one hand to weak demand for new loans, particularly by enterprises, and on the other to a more careful selection of banks' offers as a result of the high risks of borrowers and of the high capitalisation levels that the ECB required to the Italian credit system.

The persisting weakness of the economic cycle also affected the quality of bank credit in Italy, resulting in strong deterioration. In December 2014, the stock of gross non-performing loans rose to 183.7 billion Euro, with a 27.8 billion Euro increase in the last 12 months. However, the annual growth rate of non-performing loans continues to slow down: while still high, the 17.8% increase recorded in December was the lowest in the last 2 years. Conversely, the ratio of non-performing loans to total lending continues to worsen (9.57% in December 2014 from 8.07% in December 2013, or +1.5 percentage points) as a consequence of the increase in non-performing loans and the decline in lending. Significant increases were also recorded in the other categories of impaired loans (watchlist, past due and restructured exposures), whose incidence over total lending rose to 7.72% in September 2014, last available figure, from 6.64% in September 2013.

Regulatory framework

The BPVi Group is one of the 15 Italian banking groups that, in 2014, underwent the Comprehensive Assessment (Learn more) promoted by EU supervisory authorities in cooperation with national authorities, in view of the switch to the Single Supervisory Mechanism under the ECB that took place on 4 November 2014.

The BPVi Group passed the ECB assessment and was recognised with full rights as one of the 120 leading banks in Europe, having shown excess capital both in the Asset Quality Review (593 million Euro), and in the Stress Test (554 million Euro under the base scenario and 30 million Euro under the adverse scenario).

Regulatory framework

The Single Supervisory Mechanism (SSM) is the first pillar of the European Banking Union, through which the ECB, in close cooperation with the National Supervisory Authorities, took over supervision on all Eurozone banks, directly in the case of “significant” intermediaries (those covered by the Comprehensive Assessment) and indirectly in the case of “less significant” intermediaries that will still be monitored by local authorities on the basis of criteria established by the ECB.

The Comprehensive Assessment had as its main objectives to improve the quality of the information available on the situation of the banks and to identify and implement any corrective actions designed to assure investors about the reliability of banking system.

Macroeconomic environment

In 2014, the Euro Area economic trend is positive in Germany and recovering in Spain and, to a lesser extent, in France. In Italy the recovery is still unstable, giving way to a new recessionary phase, brought about once again by the weak industrial production and by the persistent fragility of domestic demand, with only moderate support from exports.

Read more

Macroeconomic environment

The continuing expansionary monetary policy by the ECB led to a general reduction of reference rates, which resulted in a decrease in the cost of funding as well as a drop in the rates applied to loans to households and enterprises, in the case of the latter also due to greater competitive pressure among credit institutions.

During 2014, however, the persisting challenges and uncertainties in the national economic scenario were detrimental to Italian banks, whose lending activities decreased. This negative trend is due on the one hand to weak demand for new loans, particularly by enterprises, and on the other to a more careful selection of banks' offers as a result of the high risks of borrowers and of the high capitalisation levels that the ECB required to the Italian credit system.

The persisting weakness of the economic cycle also affected the quality of bank credit in Italy, resulting in strong deterioration. In December 2014, the stock of gross non-performing loans rose to 183.7 billion Euro, with a 27.8 billion Euro increase in the last 12 months. However, the annual growth rate of non-performing loans continues to slow down: while still high, the 17.8% increase recorded in December was the lowest in the last 2 years. Conversely, the ratio of non-performing loans to total lending continues to worsen (9.57% in December 2014 from 8.07% in December 2013, or +1.5 percentage points) as a consequence of the increase in non-performing loans and the decline in lending. Significant increases were also recorded in the other categories of impaired loans (watchlist, past due and restructured exposures), whose incidence over total lending rose to 7.72% in September 2014, last available figure, from 6.64% in September 2013.

Regulatory framework

The BPVi Group is one of the 15 Italian banking groups that, in 2014, underwent the Comprehensive Assessment (Learn more) promoted by EU supervisory authorities in cooperation with national authorities, in view of the switch to the Single Supervisory Mechanism under the ECB that took place on 4 November 2014.

The BPVi Group passed the ECB assessment and was recognised with full rights as one of the 120 leading banks in Europe, having shown excess capital both in the Asset Quality Review (593 million Euro), and in the Stress Test (554 million Euro under the base scenario and 30 million Euro under the adverse scenario).

Regulatory framework

The Single Supervisory Mechanism (SSM) is the first pillar of the European Banking Union, through which the ECB, in close cooperation with the National Supervisory Authorities, took over supervision on all Eurozone banks, directly in the case of “significant” intermediaries (those covered by the Comprehensive Assessment) and indirectly in the case of “less significant” intermediaries that will still be monitored by local authorities on the basis of criteria established by the ECB.

The Comprehensive Assessment had as its main objectives to improve the quality of the information available on the situation of the banks and to identify and implement any corrective actions designed to assure investors about the reliability of banking system.

Key facts 2014

Core business results are constantly improving, with a stronger capital base, an increasing number of Customers and Shareholders, and higher income from traditional operations with Customers.

 

The positive results achieved allowed the Group to adopt a particularly cautious approach to loan loss provisions and goodwill write-down, improving the quality of assets and laying the foundations for increasing the institution's future profitability.

Initiative

Capital increases:
successful capital strengthening initiatives

Initiative

Increase in number of Shareholders

Initiative

Further significant increase in number of Customers

Initiative

Improvement of customer satisfaction

Initiative

Support to local communities:
continuing actions in support of enterprises and households in the areas where the Group operate

Initiative

Strengthening of the financial structure of domestic enterprises through minibonds and assistance in the listing process (IPO)

Initiative

Core business profitability:
significant growth of income from traditional operations with Customers

Initiative

Asset quality improvement

Initiative

Write-downs and net profit for the period:
strong and firm approach to a prudent provisioning policy made possible by positive core business performance

Results

Over 1.3 billion Euro of capital increase in the last 2 years, 608 million Euro in 2014

Results

  • + 26,000 Members
  • 116,797 Members/Shareholders
  • doubled from 2008

Results

+ 62,000 Customers in 2014 alone, with a high acquisition and retention rate

Results

achievement of a high Customer acquisition and retention rate, among the best in the Italian credit system (Abi Eurisko and Abi – Sda Bocconi surveys)

Results

2.4 billion Euro of new loans, mostly to households and small enterprises

Results

10 transactions with total placements amounting to Euro 190.4 million with the involvement, as subscribers, of more than 40 financial institutions. In the minibond offer, BPVi is establishing itself as one of the most dynamic institutions in the market, and in 2014 had already achieved a market share of 43% in terms of volumes in the Euro 5-50 million segment.

Results

  • +8.2% net interest income (net of contribution from the securities portfolio)
  • + 9.1% net fee and commission income

Results

  • Coverage of impaired loans rose from 31.11% in 2013 to 37.90% in 2014
  • Goodwill reduced by 65%

Results

868 million Euros of loan write-downs with the cost of credit increased to 2.91%

Key facts 2014

Core business results are constantly improving, with a stronger capital base, an increasing number of Customers and Shareholders, and higher income from traditional operations with Customers.

 

The positive results achieved allowed the Group to adopt a particularly cautious approach to loan loss provisions and goodwill write-down, improving the quality of assets and laying the foundations for increasing the institution's future profitability.

Initiative

Capital increases:
successful capital strengthening initiatives

Results

Over 1.3 billion Euro of capital increase in the last 2 years, 608 million Euro in 2014

Initiative

Increase in number of Shareholders

Results

  • + 26,000 Members
  • 116,797 Members/Shareholders
  • doubled from 2008

Initiative

Further significant increase in number of Customers

Results

+ 62,000 Customers in 2014 alone, with a high acquisition and retention rate

Initiative

Improvement of customer satisfaction

Results

achievement of a high Customer acquisition and retention rate, among the best in the Italian credit system (Abi Eurisko and Abi – Sda Bocconi surveys)

Initiative

Support to local communities:
continuing actions in support of enterprises and households in the areas where the Group operate

Results

2.4 billion Euro of new loans, mostly to households and small enterprises

Initiative

Strengthening of the financial structure of domestic enterprises through minibonds and assistance in the listing process (IPO)

Results

10 transactions with total placements amounting to Euro 190.4 million with the involvement, as subscribers, of more than 40 financial institutions. In the minibond offer, BPVi is establishing itself as one of the most dynamic institutions in the market, and in 2014 had already achieved a market share of 43% in terms of volumes in the Euro 5-50 million segment.

Initiative

Core business profitability:
significant growth of income from traditional operations with Customers

Results

  • +8.2% net interest income (net of contribution from the securities portfolio)
  • + 9.1% net fee and commission income

Initiative

Asset quality improvement

Results

  • Coverage of impaired loans rose from 31.11% in 2013 to 37.90% in 2014
  • Goodwill reduced by 65%

Initiative

Write-downs and net profit for the period:
strong and firm approach to a prudent provisioning policy made possible by positive core business performance

Results

868 million Euros of loan write-downs with the cost of credit increased to 2.91%

Key results

Net result

2014 was another challenging year, not only because of continuing difficulties and uncertainty in the macroeconomic and financial environment, but also and more importantly due to radical changes of a regulatory nature that affected the European banking system, with inception in November 2014 of the Single Supervisory Mechanism, the first decisive step towards the European Banking Union. This phase was preceded by an intense period of in-depth prior assessment by the ECB (known as Comprehensive Assessment), which lasted approximately 1 year and involved, requiring considerable effort, the 130 top European credit institutions (15 of which Italian), including Banca Popolare di Vicenza.

Read more

Net result

The BPVi Group passed this thorough review with excess capital not only in the Asset Quality Review, but also in the strict Stress Tests; however, as a result of the assessment the Board of Directors of the Parent Company decided to adopt a particularly prudent approach in the provisioning and asset valuation policies.

The successful result in the ECB's Comprehensive Assessment was made possible by the good capitalisation level reached by the BPVi Group, strengthened by the capital increase initiatives implemented in 2014 (608 million Euro from the extraordinary capital increase and 102 million Euro from the new Members campaign). This allowed the achievement of pro-forma Common Equity Tier 1 (including conversion of the 253 million Euro of convertible bond) equal to 11.34%.

The positive performance of the Group's core business allowed the adoption of a particularly prudential approach in goodwill valuation, with total write-downs of approximately Euro 600 million (65%), also in view of the uncertain evolution of the Banking System's regulatory and operational framework.

As a result of these goodwill value adjustments, the net consolidated loss amounted to Euro 758.5 million.

Revenues from traditional operations

Net financial income

The 1.5% decline is mainly due to the lower contribution from the securities portfolio. Strong growth of the net interest income, net of contribution from the securities portfolio (+8.2%).

Net interest income ( Euro million )

Net interest income

Net fee and commission income

Net fee and commission income increased by 9.1%, due among others to income from indirect funding and minibond transactions and to the elimination of the cost connected to the State's guarantee on the Group's own bonds.

Net fee and commission income ( Euro million )

Net fee and commission income

Operating income

Operating income remained essentially unchanged from 2013 (-0.5%), thanks to the increase in revenues from traditional operations with Customers, which offsets the smaller contribution of revenues from finance activities.

Operating costs and operating results ( Euro million )

Operating costs and operating results

Net financial income

The 1.5% decline is mainly due to the lower contribution from the securities portfolio. Strong growth of the net interest income, net of contribution from the securities portfolio (+8.2%).

Net interest income ( Euro million )

Net interest income

Net fee and commission income

Net fee and commission income increased by 9.1%, due among others to income from indirect funding and minibond transactions and to the elimination of the cost connected to the State's guarantee on the Group's own bonds.

Net fee and commission income ( Euro million )

Net fee and commission income

Operating income

Operating income remained essentially unchanged from 2013 (-0.5%), thanks to the increase in revenues from traditional operations with Customers, which offsets the smaller contribution of revenues from finance activities.

Operating costs and operating results ( Euro million )

Operating costs and operating results

Operating costs and operating results

Operating costs

The marginal increase (+1.8%), mainly related to the acquisition of 16 Carife branches.

Operating costs ( Euro million )

Operating costs

Operating results

Down by 4.1% year on year due to substantially unchanged operating income and a slight increase in costs

Operating results ( Euro million )

Operating results

Cost-income ratio

61.1% (+2.6 p.p. compared to the end of 2013).

Cost-income ratio ( Euro million )

Cost-income ratio

Operating costs

The marginal increase (+1.8%), mainly related to the acquisition of 16 Carife branches.

Operating costs ( Euro million )

Operating costs

Operating results

Down by 4.1% year on year due to substantially unchanged operating income and a slight increase in costs

Operating results ( Euro million )

Operating results

Cost-income ratio

61.1% (+2.6 p.p. compared to the end of 2013).

Cost-income ratio ( Euro million )

Cost-income ratio