Loans to customers, net of value adjustments totalling € 471.7 million and excluding debt securities reclassified as Loans and Receivables (see section dedicated to the securities portfolio, later in this paragraph), amounted to € 20,648.2 million, representing 93.2% of direct deposits. The aggregate exhibited a 21.3% increase in 2008 and 8.4% in the last quarter; before value adjustments the aggregate stood at € 21,119.9 million, registering an annual increase of 20.8% and 8% over September (+10.5% and +6.2% net of the contribution from former ISP and UCB branches). Medium/long-term loans (€ 14,902.8 million; +19.9% in twelve months and +4.4% in the last quarter) represent 70.6% of the total, down when compared with 71.1% in December; short-term loans, which amounted to € 5,595.4 million, grew by 26.4% against December and 21.2% over September, with a share of 26.5% (25.3% in December).
Bad loans totalled € 621.7 million, remaining essentially stable (+0.2%), during the year and down by 6.2% in the quarter. More specifically, positive developments were recorded in current account transactions (€ 2,932.6 million), which increased by 19.3% in the year, reverse repurchase agreements (€ 658.8 million at the end of 2008, against € 148.5 million at the end of 2007), the item “credit cards, personal loans and salary backed loans”, up 23.9% to € 525.2 million, and factoringi (+10.3% to € 121.9 million); impaired assets also increased (+17.5% to € 1,254.2 million), mainly due to the introduction of a legislative amendment to the definition of substandard loans which led to a reclassification of part of these also from the performingi portfolio, with positive effects on the risks of the latter. Mortgages amounted to € 8,434.7 million, 68% of which were floating rate. Mortgages granted to private individuals totalled roughly € 3,800 million, of which 59% were floating rate, while mortgages granted to companies amounted to approximately € 4,600 million, 87% of which were floating rate. The aggregate recorded a 2.9% drop compared with 2007, following the transfer of more than € 2.3 billion in performingi loans to the two abovementioned securitisations (one covered bondi), started during the year. A total of € 427.2 million of commercial mortgages and € 1,918.8 million of residential mortgages were transferred. For more information on said operations, refer to Part E, Section C ("Securitisations and asset disposals”) in the explanatory notes. Taking into account these loans, recorded under “assets sold and not cancelled", mortgage loans would increase by 24.1% in the year.
In 2008, roughly 4,300 mortgage loans to families were renegotiated for an amount totalling € 600 million; the renegotiation concerned, in particular, a change from an index-linked rate to a fixed one and the spreadi element. The transactions carried out, in accordance with the agreement between the Ministry of Economy and Finance and the Italian Banking Association pursuant to Legislative Decree 93/2008, totalled more than 2,000, for an amount of roughly € 230 million, while the number of mortgages where the Group stepped in to replace mortgages held with other intermediaries (pursuant to decree no. 7/2007, the so called “Bersani decree”) totalled roughly 500, for an amount of approximately € 45 million. Leasing transactions, at € 821.9 million, fell by 1.2% during the year. Net of value adjustments (€ 0.8 million), loans to banks amount to € 986.2 million, down by 34.7% on an annual basis and 21.6% on a quarterly basis. This decrease was due to time deposits (€ 401.1 million; -32.2% in the year), loans (€ 105.9 million; -63.3%) and repurchase transactions (€ 23.1 million; -92.8%). At the end of 2008, bad loans were null, just as in December 2007 and September 2008. The net interbank position (difference between loans and amounts owed to banks) shows a net credit position of € 184.7 million (€ 171.7 million in September), compared with a net debit position of € 876.4 million in December, due to the shift in the source of fundingi to deposits represented by securities. This position, together with the presence of securities and refinanceable mortgages at the ECB totalling roughly € 1.5 billion, are proof of the Group’s solid liquidity position.
Loans (1)
| (figures in thousands of €) | Situation as at | Change % | ||||
|---|---|---|---|---|---|---|
| 31/12/08 | 30/09/08 | 31/12/07 | 31/12/06 (3) | 12/08 09/08 | 12/08 12/07 |
|
| Total (A+B) | 21,634,328 | 20,309,061 | 18,527,826 | 16,747,552 | 6.5 | 16,8 |
| Loans to customers (A) | 20,648,153 | 19,050,928 | 17,017,381 | 15,647,004 | 8.4 | 21.3 |
| -Nominal value (2) | 21,119,889 | 19,558,913 | 17,478,165 | 16,061,523 | 8.0 | 20.8 |
| current accounts | 2,932,602 | 2,716,858 | 2,459,166 | 1,953,610 | 7.9 | 19.3 |
| lending repurchase agreements | 658,796 | - | 148,548 | … | … | |
| mortgages (4) | 8,434,698 | 10,256,850 | 8,689,779 | 7,758,437 | -17.8 | -2.9 |
| credit cards, personal loans and salary-backed loans | 525,232 | 515,926 | 424,069 | 361,478 |
1.8 |
23.9 |
| leasing | 821,860 | 830,481 | 831,811 | 728,933 | -1.0 | -1.2 |
| factoringi | 121,903 | 117,648 | 110,505 | 113,342 | 3.6 | 10.3 |
| other loans (5) | 3,667,322 | 3,400,681 | 3,210,298 | 3,495,034 | 7.8 | 14.2 |
| assets sold and not cancelled (4) | 2,703,241 | 448,597 | 536,689 | 648,050 | … | … |
| impaired assets (4) | 1,254,235 | 1,271,872 | 1,067,300 | 1,002,639 | -1.4 | 17.5 |
| -short term | 5,595,357 | 4,616,193 | 4,427,351 | 4,210,557 | 21.2 | 26.4 |
| % on nominal value | 26,5 | 23,6 | 25,3 | 26,2 | ||
| -medium/long term | 14,902,783 | 14,279,995 | 12,430,100 | 11,252,240 | 4.4 | 19.9 |
| % on nominal value | 70,6 | 73,0 | 71,1 | 70,1 | ||
| - Bad loans | 621,749 | 662,725 | 620,714 | 598,726 | -6.2 | 0.2 |
| % on nominal value | 2,9 | 3,4 | 3,6 | 3,7 | ||
| -Value adjustments (-) | 471,736 | 507,985 | 460,784 | 414,519 | -7.1 | 2.4 |
| Loans to banks (B) | 986,175 | 1,258,133 | 1,510,445 | 1,100,548 | -21.6 | -34.7 |
| -nominal value (2) | 986,953 | 1,258,780 | 1,511,092 | 1,101,039 | -21.6 | -34.7 |
| compulsory reserves | 327,713 | 147,671 | 179,522 | 126,788 | … | 82.5 |
| other loans to central banks | - | 28 | 17 | 257 | -100.0 | -100.0 |
| current accounts and free deposits | 112,932 | 339,049 | 113,092 | 192,951 | -66.7 | -0.1 |
| term deposits | 401,145 | 150,922 | 591,344 | 373,823 | … | -32.2 |
| repurchase agreements | 23,122 | 509,670 | 321,814 | 294,162 | -95.5 | -92.8 |
| loans | 105,925 | 95,376 | 288,424 | 94,901 | 11.1 | -63.3 |
| impaired assets | 16,116 | 16,064 | 16,879 | 18,157 | 0.3 | -4.5 |
| -short term | 939,591 | 1,230,183 | 1,423,288 | 1,011,351 | -23.6 | -34.0 |
| % on nominal value | 95,2 | 97,7 | 94,2 | 91,9 | ||
| -medium/long term | 47,362 | 28,597 | 87,804 | 71,880 | 65.6 | -46.1 |
| % on nominal value | 4,8 | 2,3 | 5,8 | 6,5 | ||
| - Bad loans | - | - | - | 17,808 | … | … |
| % on nominal value | - | - | - | 1,6 | ||
| -Value adjustments (-) | 778 | 647 | 647 | 491 | 20.2 | 20.2 |
(1) Net of debt securities classified as L&R (see section on securities portfolio, following in this paragraph).
(2) Before value adjustments.
(3) In order to better illustrate the figures, the classification of the short to medium/long term loans to customers has been modified from the figure reported in the financial statements as at 31/12/2006.
(4) By letter no. 8309 dated 5 January 2009 (re: "Regulations on bank financial statements"), the Bank of Italy has sent, inter alia ,a note containing some modifications relative to the tables of the explanatory notes. In particular, a specific item "Securities in issue" has been introduced in table C.2.2 "Financial liabilities corresponding to financial assets sold and not cancelled" of part E "Information on risks and the risk hedging policies". This item has to hold in the consolidated financial statements all the securities issued by the vehicle companies consolidated on a line-by-line basis corresponding to assets sold and cancelled from the financial statements of the "originating" bank. In light of such new provision the Bank has decided to record also the assets sold to the consolidated vehicle companies in item "assets sold and not cancelled" and no longer in item "mortgages" and "impaired assets". The aggregates for the previous periods have been adequately reclassified to allow a homogeneous comparison as at 31/12/2008
(5) Balance as at 31/12/08 and 30/09/08 includes nominal € 112.9 and 110.9 million respectively relating to the reclassification of the ongoing leasing transactions and to assets pending financial lease previously recorded in Item 110 -Tangible assets. This reclassification is due to the recent explanations provided by the Bank of Italy on this matter.