2 These amounts include postal savings deposits, the mutual investment funds marketed, Poste Vita's technical provisions and average current account dep 3 These amounts include both private customer deposits (including the investment of liquidity by Group companies and amounts payable to financial institutions under repurchase agreements), and deposits by the Public Administration.
Of the 7 members of the Board, 6 are non-executive and of these, 4 meet the requirements to qualify as independent.
System Data Software Srl, which in turn owns a 100% interest in S.D.S. Nuova Sanità Srl. The SDS group provides services and manages claims on behalf of, among others, private health funds that offer private health cover (above all the Fasi and Faschim funds). The group also designs, develops and maintains management software and provides IT services for businesses.
In October 2015, the process of integrating the primary transport networks used by Poste Italiane and SDA
As well as providing ongoing maintenance for the portal, Postecom has implemented a series of initiatives aimed at improving the Group's online offering. In particular, the Poste.it and Postepay.it websites have benefited from restyled graphics and new functions, aimed at making it easier for users to browse when on the move thanks to responsive design7. The Postevita.it website also benefitted from new graphics designed to enable browsing when on the move, and the PosteID number management service was rolled out.
December 2015, with a view to further developing asset management and insurance products and strengthening the Group's asset management business, partly through coordination of the Poste Vita Group and BancoPosta Fondi SpA SGR, and by taking advantage of the interest acquired in Anima Holding SpA.
Moreover, in accordance with the Committee of European Securities Regulators’ Recommendation CESR/05178b regarding alternative performance indicators, in addition to the financial disclosures required by IFRS,
Net change in technical provisions for insurance business and other claims expenses 19,683 17,883 1,800 10.1%
In the Value Added services segment, Raccomandata SIN Smart was launched. This product enables management of the entire process of sending administrative documents via registered mail, with acknowledgement of receipt.
The 2015 philately programme featured 48 issues, with a total of 113 stamps.
(*) The item, "Other", includes Dedicated Services, Logistics, other SDA Express Courier SpA services and other revenue attributable to Consorzio Logistica Pacchi ScpA.
With Resolution 572/15/CONS of 16 October 2015, following an assessment of the quality of Priority Mail carried out by IZI SpA for 2014, the regulator, in relation to achievement of the regional target for Abruzzo, noted a 1.12% shortfall with respect to the regulatory target, and imposed a penalty of €50,000, as per art. 5 of the Contratto di Programma (Service Contract) for 2009-2011. On 7 December 2015, the Company submitted a defence brief, contesting the resolution.
With the “State Aid SA. 43243 (2015/N) – Italy” Decision of 4 December 2015, the European Commission approved government compensation for the years from 2012 to 201510 and for the period 2016-2019, granted to Poste Italiane for provision of the Universal Postal Service, deeming it to be compatible with
Universal Service provider) to offer services relating to legal process and the notification of violations of the 10 In application of the subsidy cap mechanism provided for in the Service Contract for 2009-2011, compensation for 2015 amounts to €329.1 million, without prejudice to the effects of any subsequent checks to be carried out by AGCom in order to quantify the net cost incurred by the Company. Under the new Service Contract, for the years 2016-2019, the maximum amount of compensation Poste Italiane may receive is €1.05 billion (approximately €262 million per annum). Regarding previous years, for 2011 AGCom has ascertained a cost of €380.6 million compared with compensation of €357 million approved by the European Commission. Regarding the cost for 2012, on 7 August 2015 the Ministry of the Economy and Finance granted the Company compensation of €327 million, equivalent to the cost ascertained by AGCom. Regarding 2013, on 23 September 2014, with Resolution 493/14/CONS, the regulator launched a procedure designed to study and assess the applicability of the methods used in allocating and assessing the net cost. This investigation was extended to include 2014 on 24 July 2015.
in compliance with reporting obligations required in order to launch the second implementing phase, the
Regarding service quality, at least 80% of priority mail items should be delivered within the first available day after collection (the quality target), and at least 98% of items should be delivered by the end of the fourth working day after collection (the reliability target).
(requirements and obligations) to be met before an individual licence can be issued and general authorisation be given by the Ministry for Economic Development.
December 2015, AGCcom extended the deadline for the procedure by another 60 days, in order to further
Opzione SorpRend account for a longer period, whilst BancoPosta In Proprio Web account holders were offered a refund of their account fees in return for meeting certain conditions.
Crescita Sostenibile (the Sustainable Growth Fund). The bank continued to coordinate the related services in 2015. Assessments were carried out for four calls for applications by the Fund, with over 370 applications submitted and more than €360 million in subsidised loans and €23 million in grants already approved.
The principal contribution to total gross inflows was primarily from balanced funds (€789 million, accounting for 39.4% of total inflows), followed by flexible funds (€526 million, 26.2% of total inflows), bond funds (€430 million, 21.5% of total inflows), equity funds (€219 million, 10.9% of total inflows) and money market funds
customers, inclusive of policy expirations of approximately €3.8 billion amount to approximately €8.0 billion
The above trends show how 2015 marks a shift in the market towards investment-linked insurance policies, as opposed to the traditional type of insurance product. The main driver of this shift is the economic situation, which has led customers to look for and insurers to provide forms of investment providing a more efficient risk-return profile. The offer of so-called multi-line products, which allow customers to allocate their investment between a mix of separately managed and one or more unit-linked components, has definitely contributed to this change.
In keeping with the strategic objectives pursued in previous years, in 2015 the Poste Vita insurance group primarily focused its efforts on: • strengthening its leadership in the life insurance market and consolidating its competitive position; • responding to new customer needs in terms of welfare, health, long-term care and income security both during and after the end of their working lives, driving the development of a new insurance model (life and non-life) capable in one go of responding to demand for protection, savings, investment and pension provision.
Finally, on 4 November 2015, Poste Vita SpA completed the acquisition of a 100% interest in S.D.S. System
(above all the Fasi and Faschim funds). The companies also design, develop and maintain management software and provide IT services for businesses.
At the end of the third quarter of 2015, the mobile market's total customer base registered a year-on-year reduction of 1.7 million lines, deriving from a decrease of 1.9 million for MNOs and an increase of 0.2 million for MVNOs (Mobile Virtual Network Operators). In this context, PosteMobile affirmed its position as market leader among MVNOs, with a market share of 52%.
In 2015, the leading operators substantially rationalised their price offerings, giving customers a great deal of choice regarding the composition of their price plans and enabling them to activate a wide range of options, not only for traditional services, but also for on-demand TV/video and streaming packages, with a view to capturing a large portion of consumers' communication and entertainment spend. The trend towards convergent landline and mobile services continued and strengthened.
Technical provis ions for insurance business - - (87,220) - - (87,220)
Training courses for management placed a strong accent on change which, among other things, enabled: • exploration of macroeconomic and geopolitical scenarios, and ethical issues; • strengthening of the internal identity of the one Company in support of cultural change, for the purposes of strategic planning; • the promotion of analysis and dialogue with external entities, especially managers, consultants, academics and national and international opinion makers, regarding challenges and current trends affecting various professions. Most of these events, aimed at around 90 managers attending each session, were also streamed to enable another 600 staff to take part; • the transfer of marketing management expertise, aimed at creating the right conditions for systematic consolidation of a market and customer-centred culture.
For young graduates, “Observatory 2015", which periodically monitors development objectives and timeframes in order to plan any short- or medium-term actions, was launched.
A total of 4,640 disciplinary procedures were launched during the year, based on reports from the Security &
At the end of this process, 241 staff were dismissed and 4,052 received penalties without dismissal; 347 procedures were concluded without consequence.
Term Evolution (LTE) project, in order to provide customers with new generation mobile broadband access. Initiatives in the Postal Logistics segment continued via three courses of action: implementation of the postal network, involving activities designed to guarantee the operational continuity of facilities and delivery centres by supplying equipment, partly to support the increase in parcel volumes delivered by postmen and women; optimisation of the postal network, involving improvement of the efficiency of processes via the computerisation and automation of the internal processes carried out by delivery staff and sorting centres; and evolution of the postal network, entailing the launch of a project to redesign the logistics network with the introduction of new sorting and delivery models, in line with the new regulatory framework.
(financial, insurance, postal and logistics) and business process, bringing them into line with the specific methods and tools envisaged by the model, and consolidating the risk management culture at all levels throughout the Group, so as to help in developing risk management behaviours and expertise throughout the Group’s operations.
The risk of a deterioration in profit or capital resulting from changes in the operating environment, poor business decisions, the substandard execution of decisions or the failure to adequately respond to changes in the competitive environment.
Great attention is also paid to combating the risks deriving from potential fraud inside and outside the
Exemption from VAT thus no longer extends to deregulated services. In this case, the legislator, in compliance with EU law, has also exempted Poste Italiane’s conduct prior to entry into effect of the above amendment from application of the new legislation. For the purposes of VAT, the Parent Company cannot, therefore, be punished for conduct which, until 21 August 2014 (the date on which Law 116/2014 came into effect), did not comply with EU legislation, which has only been transposed into Italian law following the above amendment.
Transport) to declare the tender null and void and, pending a final ruling, to suspend enforceability of the tender, the tender terms and conditions, instructions to bidders, the executive order announcing the tender, all clarifications and all acts in those connections. The grounds cited for the petition were the fact that art. 11 of the tender terms and conditions restricted competition, in that points for the technical bid were awarded on the basis of the “widespread nature, availability and number of physical payment points”, rendering the bid evaluation process unfair in breach of art. 2 of Legislative Decree 163/06, which has established the principle of free and non-discriminatory competition in tenders for the provision and performance of services under concession. With sentence 7546/15, filed on 27 May 2015, the Lazio Regional Administrative Court rejected this petition. On 16 July 2015, the Authority lodged an appeal before the Council of State requesting amendment or cancellation of this sentence and, on 25 September 2015, PosteMotori and the Ministry of
Again with regard to fixed-term contracts, the Company employed 7,277 people on fixed-term contracts in 2015 (8,052 in 2013), equal to 7,144 FTEs (7,743 FTEs in 2014). As a result of specific measures establishing quotas limiting the use of such contracts, the following should be noted: the permanent workforce at 1
January 201516 was 141,459 (143,422 at 1 January 2014), equal to 135,797 FTEs (137,983 at 1 January 2014); the number of people on fixed-term contracts as defined by art. 2, paragraph 1-bis of Legislative
Other operating costs are down from the €314 million of 2014 to €226 million in 2015. This reflects, among other things, the release of provisions made in previous years, linked to the procedures and timing involved in the collection of amounts receivable from the Ministry of the Economy and Finance.
Operating expenses / Net interest and other banking income (4) 84% 87%
change in debt securities is due to the purchase of new securities, following an increase in private customer deposits during 2015 and fair value gains. In addition, in view of the macroeconomic environment, the strategy aimed at managing the duration of the portfolio, so as to protect against the exposure of securities to changes in fair value resulting from potential rises in interest rates, continued during the year.
The internal regulations will be expanded and further details added with organisational and operational documentation in 2016 (e.g., a revision of the BancoPosta RFC Regulation), building on the compliance processes carried out in 2015. Work on the IT and business continuity system will continue to occupy the
Based on the fact that the Poste Italiane Group’s consolidated profit for 2015 amounts to approximately €552 million (entirely attributable to owners of the Parent), in line with the dividend policy, the Board of Directors proposes that the Annual General Meeting: • put BancoPosta RFC’s profit for the year of €586,969,571 at the Company’s disposal; • appropriate Poste Italiane SpA’s profit for 2015, amounting to €450,798,723, as follows: a.1) to pay shareholders a dividend of €0.34 per share, payable to the holders of each of the 1,306,110,000 ordinary shares in issue at the ex dividend date of 20 June 2016, amounting to a total of €444,077,400; a.2) to take the remaining profit of €6,721,323 to retained earnings; a.3) to pay the above dividend of €0.34 per ordinary share for 2015 – before any applicable taxation –
Azionario (the MTA, an electronic stock exchange) and, on 9 October 2015, following the CONSOB’s announcement of its approval (protocol no. 0078593/15), the Company published the related Prospectus.
, the statement of changes in equity, the statement of cash flows and the notes to the financial statements. All amounts in the consolidated financial statements and the notes are shown in millions of euros, unless otherwise stated.
An intangible asset is an identifiable non-monetary asset without physical substance, which is controllable and capable of generating future economic benefits. Intangible assets are recognised at cost, including any directly attributable costs required to prepare the asset for its intended use, less accumulated amortisation and any accumulated impairment losses. Borrowings costs are capitalised as part of the cost of the asset only if directly attributable to its purchase or development; otherwise, they are recognised as an expense in the period in which they are incurred. Amortisation is applied from the date the asset is ready for use, systematically over the remaining useful life of the asset, or its estimated useful life.
When the impairment resulting from the test is higher than the carrying amount of the goodwill attributed to the cash generating unit, the residual amount is attributed to the assets included in the cash generating unit in proportion to their carrying amounts. The minimum attributable amount is the highest of:  the related fair value of the asset less costs to sell,
Available-for-sale financial assets are non-derivative financial instruments that are either designated in this category or not attributable to any of the other categories described above. These financial instruments are recognised at fair value and any resulting fair value gains or losses are recognised in an equity reserve, with movements in such reserve being accounted for in “Other components of comprehensive income” (the “Fair value reserve). This reserve is only recycled to profit or loss when the financial asset is effectively disposed of
Any surplus emission allowances allocated free of charge are not accounted for in closing inventory. In the event of a shortfall in emission allowances the resulting charge and related liability are accounted for at the end of the year at fair value.
In those rare cases, in which disclosure of some or all of the information regarding the risks in question could seriously prejudice the Group’s position in a dispute or in ongoing negotiations with third parties, the Group exercises the option granted by the relevant accounting standards to provide limited disclosure.
The fair value of financial instruments that are not traded on an active market is based on prices quoted by external dealers or on internal valuation techniques which estimate the transaction price on the measurement date in an arm’s length exchange motivated by normal business considerations. The valuation models are primarily based on market variables, considering where possible, the prices in recent transactions and quoted market prices for substantially similar instruments, and of any related credit risk (see section 2.5 –
Level 3: this category includes the fair value measurement of assets and liabilities using inputs which cannot be observed. For the Poste Italiane Group the following categories of financial instrument apply: Fixed rate and variable rate instruments: measurement is based on discounted cash flow. The counterparty’s credit spread is set according to best practices, by using the probability of default and transition matrices created by external information providers and loss given default parameters determined by prudential regulations for banks or in accordance with market standards.
29/2015. The amendment clarifies the application of IAS 19 to defined benefit plans in connection with contributions linked to service by the employee or a third party. These contributions reduce the entity’s service cost in providing benefits and, to the extent that they are commensurate with the service provided by the employee in a given period, can be deducted fully from the cost for the period, instead of being allocated over the employee’s years of remaining service.
connection with the annual projects to improve and revise international accounting standards.
approved the merger of PostelPrint SpA with and into Postel SpA. The merger deed was signed on 27
SpA. The merger took effect for legal, accounting and tax purposes from 31 December 2015.
SpA (BMPS) for a total consideration of €210,468 thousand, based on a price of €6.80 per share. This is broadly in line with the average market price of the investee’s shares on the Milan Stock Exchange during the month prior to the agreement, executed on 14 April 2015. The agreement will also result in Poste
Popolare di Milano (BPM), which owns 16.85% of the investee. In view of the strategic importance of the transaction and the significant influence acquired through the shareholders’ agreement, the investee has been classified as an associate. Anima Holding SpA provides strategic guidance and coordination for the group of the same name, one of Italy’s leading asset managers.
The table below shows a comparison between the consideration paid for Anima Holding SpA and the net assets acquired, with the €134.6 million representing goodwill incorporated in the carrying amount of the investment.
Company, of which €25 million for plant and equipment related to buildings and €6 million for the installation and extraordinary maintenance of video surveillance systems;  €23 million to upgrade plant and the structure of properties held under lease;  €91 million relating to Other assets, of which €72 million for the purchase of new computer hardware for post offices and head offices and the consolidation of storage systems and €6 million for the purchase of furniture and fittings in connection with the new layouts for post offices;  €46 million relating to assets under construction, of which €37 million incurred by the Parent Company in relation to the purchase of hardware and other technological equipment not included yet in the production process, restyling of post offices, and €7 million incurred by PosteMobile SpA for the purchase of hardware for the landline telecommunication system, hardware for the mobile network and videoconference systems.
Investments in equity instruments are attributable to BancoPosta RFC and primarily include:  €111 million, relating to the fair value of an ordinary share in Visa Europe Ltd, previously allocated to
Fair value gains of €126 million have been recognised in the relevant equity reserve (section B4).
Fair value gains and losses through equity 6,868 (5) - 6,863
Fair value gains and losses through profit or loss 491 173 21 685
Equity instruments primarily reflects the investment in CAI SpA (formerly Alitalia CAI SpA), which was acquired for €75 million in 2013 and written off, the historical cost of approximately €4.5 million for the 15% equity interest in Innovazione e Progetti ScpA, which is in liquidation, unchanged from last year.
Specifically:  Amounts due from ministries and Public Administration entities refer mainly to the following services: – Integrated Notification and mailroom services, amounting to €246 million, rendered to local government authorities (€92 million), Agencies and other central public entities (€78 million) and
Government Authorities by Banca del Mezzogiorno – Mediocredito Centrale, for a total of €61 million.
- With reference to services rendered in 2011, AGCom recognised a sum of €381 million, compared to the €357 million calculated originally by the Parent Company. Provision of €50 million has been made in the state budget for 2016.
Amounts due from social security agencies and pension funds (excl. fixed-term contract settlements) -
 Provisions for disputes with third parties regard the present value of expected liabilities deriving from different types of legal and out-of-court disputes with suppliers and third parties, the related legal expenses, and penalties and indemnities payable to customers. Provisions for the year of €73 million reflect the estimated value of new liabilities measured on the basis of expected outcomes. The reduction of €32 million relates to the reversal of liabilities recognised in the past, whilst a reduction of €26 million regards the value of disputes settled.
 Provisions for taxation/social security contributions have been made to cover potential future tax and social security liabilities.
Attainment of legal requirements for retirement tab. B7.3 - Actuarial gains and losses
A commitment given to creditors by which a borrower undertakes not to give senior security to other lenders ranking pari passu with existing creditors, unless the same degree of protection is also offered to them.
In particular:  Stamp duty relates mainly to the amount accrued at 31 December 2015 on Interest-bearing Postal
 Express parcel and express courier services relate to services provided mainly by the subsidiary, SDA
Other operating costs break down as follows: tab. C11 - Other operating costs (€m)
Provisions (reversal of provisions) for sundry receivables [tab. A8.1] 4 6
Deduction from IRES tax base of IRAP paid on personnel expenses (4) -0.40% (55) -7.94%
Change in scope of consolidation - - - - - - -
Tot al non-cash expenses ( 752) ( 32) ( 12,588) ( 53) - ( 13,425)
Other related parties external to the Group 76 5 1 - - 3 62
At 31 December 2015, net provisions for risks and charges used to cover probable liabilities arising from transactions with related parties external to the Group attributable to trading relations amount to €9 million tab. 3.5.4 - Impact of related party transactions on the results of operations for the year ended 31 December 2014 (€m)
Net f inancial assets/( l iabi l i t ies) ( 1,052) 2,223 876 22 287 2,356
tab. 3.7.6 - Disclosure of fees paid to Independent Auditors (€000)
Met hod t o d et ermine maximu m loss exposu re
Name ( Reg ist ered office) % in t erest Share capit a l Profit / ( loss)
(*) The figures shown for these companies were prepared in accordance with IFRS and, as such, may vary from those available in the respective financial reports, which were prepared in accordance with the Italian Civil Code and Italian GAAP.
Poste Energia SpA was merged with and into Europa Gestioni Immobiliari SpA, effective 31 December 2015 for tax and accounting purposes.
Events after the end of the reporting period are described in the above notes and there are no other significant events occurring after 31 December 2015.
4.2 INFORMATION ON BANCOPOSTA RFC ................................................................. 242 4.3 NOTES TO THE FINANCIAL STATEMENTS ............................................................. 248
Profit/(Loss) before tax 595,942,328 272,983,830 of which, non-recurring costs/(income) 12,043,138 - - -
Total comprehensive income for the year - - - 931,179,814 (39,034,781) 499,986,288 (*) 1,392,131,321
The rate applied in overnight lending and calculated as the weighted average of overnight rates for transactions on the interbank market reported to ECB by a panel of banks operating in the euro zone (the biggest banks in all the euro zone countries).
Company’s statement of financial position”, Poste Italiane SpA’s statement of financial position includes a
The fair value of investment property at 31 December includes approximately €67 million representing the sale price applicable to the Company’s former service accommodation in accordance with Law 560 of 24
SpA, recognising income of €3 million and a resulting gain of an equal amount; on 3 December 2015, Poste
(2) These figures have been calculated under IFRS, and may not be consistent with those included in the investee company’s financ ial statements prepared in accordance with the Civil Code and Italian GAAP.
Total Forw ard purchases Asset sw aps Asset sw aps Forw ard purchases Forw ard sales
Midco SpA, which in turn owns 51% of Alitalia SAI. The Contingent Convertible Notes, with a twenty-year term to maturity starting 1 January 2015, carry a nominal rate of interest of 7% per annum. Interest and principal payments will be made by Midco SpA if, and to the extent that, there is available liquidity. Based on the latest available business plan of the Alitalia Group, a reasonable estimate of the effective interest rate payable on the Notes amounts to approximately 4.6%.
 Amounts due from Cassa Depositi e Prestiti refer to fees and commissions for BancoPosta’s deposit-taking activities during the year. This amount, which fell from the comparable sum at 31 December 2014, tab. A7 - Trade receivables (€m)
 Receivables for overdrawn current accounts are amounts due to BancoPosta for temporarily overdrawn current accounts largely due to recurring BancoPosta bank charges, including accumulated sums that
- The outstanding receivable relating to compensation for 2005 was subject to final cuts by the budget laws of 2007 and 2008.
Provisions for disputes with third parties 316 68 1 (29) (10) 346
 Provisions for expired and statute barred Postal Certificates held by Bancoposta have been made to cover the cost of redeeming certificates relating to specific issues, the value of which was recognised in revenue in profit or loss in the years in which the certificates became invalid. The provisions were made in response to the Company’s decision to redeem such certificates even if expired and statute barred. At 31
This item breaks down as follows: Payables deriving from postal current accounts
 bonds with a nominal value of €50 million subscribed by investors through a private placement at par on 25 October 2013. The term to maturity of the loan is ten years, while the interest rate is 3.5% for the first two years and is variable thereafter (EUR Constant Maturity Swap rate plus 0.955%, with a cap of 6% and a floor of 0%). The cash flow interest rate risk exposure was hedged as described in section A6. The fair value of this borrowing at 31 December 2015 is €55 million.
This item refers to amounts received from customers as prepayment for the following services to be rendered: tab. B8.1 - Amounts due to suppliers (€m)
Other amounts due to subsidiaries 7 29 36 3 17 20
Revenue from Postal Services breaks down as follows: (1) Subsidies for tariffs discounted in accordance with the law.
 Revenue from telegrams primarily relates to the telegram service provided by phone or at post offices, and amounting to €18 million and €7 million, respectively.
 Income from the investment of postal current account deposits breaks down as follows: tab. C1.2 - Revenue from BancoPosta services (€m)
Income from deposits held with the MEF primarily represents accrued interest for the year on amounts deposited by Public Administration entities. The remuneration received on Public Administration deposits includes €4 million in net differentials swapped in relation to the forward purchases and spot sales described in section A5, designed to smooth out returns on the deposits with the MEF.
Amounts due from staff under fixed-term and agency contracts refer to the individual arrangements resulting from the agreement reached on 30 July 2015 by Poste Italiane SpA and the trade unions regarding the reemployment by court order of staff previously employed on fixed-term and agency contracts. The agreement made it possible to finalise arrangements with approximately 940 individuals who had been employed by the
Net provisions for risks and charges and bad debts 10 1.72% 15 5.34%
Income/(Expenses) recognised in profit or loss 1 - 36 33 - 2 72
At 31 December 2015, total provisions for risks and charges made to cover probable liabilities arising from transactions with related parties external to the Group attributable to trading relations amount to €60 million tab. 4.4.1 - Impact of related party transactions on the financial position at 31 December 2015 (€m)
tab. 4.4.3 - Impact of related party transactions on the results of operations (€m)
Capit a l expend it u re Cu rrent expend it u re
Cash and d eposit s at t r ib u t ab le t o BancoPost a - 3,161 - 3,161 -
+ Vol - Vol + Vol - Vol + Vol - Vol + Vol - Vol 2015 effect s
Fair value through profit or loss (liabilities) - - - - - - - - -
In order to minimise the risk of experiencing difficulties in raising sufficient funds, at market conditions, to meet its obligations, Poste Italiane Group applies a financial policy based on: “Sovereign debt” includes bonds issued by, and loans provided to, central and local governments and government bodies.
Available-for-sale financial assets 26,428 32,415 (1,283) 493 - - (1,283) 493
Available-for-sale financial assets 500 569 (2) (5) - - (2) (5)
Italian treasury certificates indexed to Euribor), fixed or variable rate bonds converted to variable-rate positions via fair value hedges, amounting to €14,926 million;  €1,500 million in fixed-rate bonds issued by CDP, and guaranteed by the Italian government, held by
The table below shows the VaR analysis performed on the most significant positions in the Company’s portfolio at 31 December 2015.
Fair value through profit or loss - - - - - - - from Ba1 to Not rated Total
Poste Assicura SpA is exposed to the following insurance risks:  Underwriting risk: the risk deriving from the conclusion of insurance contracts associated with the events insured, the processes followed when pricing and selecting risks and unfavourable claims trends compared with previous estimates. This risk can be divided into the following categories:  Pricing risk: the risk linked to the company’s pricing of its policies which depends on the assumptions used in order to calculate premiums. If prices are based on inadequate assumptions, the insurer may be exposed to the risk of being unable to meet its contractual obligations to policyholders. These risks include those related to disability-morbidity, or the risk associated with the payment of benefits or claims for illness and/or injury. Pricing risk also includes the risk that the premiums charged are not sufficient to cover the actual costs incurred in the management of the contract and the risk of excessive growth in operations associated with poor selection of risks or the absence of resources sufficient to keep up with the pace of growth.
On 6 February 2015, the European Commission notified that it had completed its preliminary investigation without finding evidence of state aid as regards Poste Italiane’s investment in Alitalia. In fact, Poste Italiane had made an investment on an arm’s length basis (pari passu transaction).
Section 6 – Due from banks – Item 60 ........................................................................................................................... 385
Section 1 – Due to banks – Item 10 ................................................................................................................................ 392
Section 7 – Profits/(Losses) on financial assets and liabilities designated at fair value – Item 110 ............. 406
Movements dur ing the year - - - - - 1,113,926,367 - - 439,664,565 1,553,590,932 at 31 December 2014
("IAS"), and all interpretations of the International Financial Reporting Interpretations Committee ("IFRIC")
The potential impact, on BancoPosta RFC’s Separate Report, of the accounting standards, amendments and interpretations due to come into effect is currently being examined and assessed.
Guidelines governing the process of contracting out BancoPosta’s corporate functions to Poste Italiane (the
“General Guidelines”), the latest version of which was approved by Poste Italiane SpA’s Board of Directors on 27 May 2015. In implementation of BancoPosta RFC’s Regulation, these General Guidelines identify the services in question and determine the manner in which they are remunerated. The general policies and instructions contained in the General Guidelines in relation to transfer pricing are detailed in specific
Operating Guidelines, jointly developed by BancoPosta and other Poste Italiane SpA functions. The Operating
For the purposes of oversight of the unbundled accounts, in 2015 the Board of Statutory Auditors conducted the relevant audit activities during 6 meetings, reporting its conclusions in its annual report to shareholders for the year ended 31 December 2015.
The amortised cost of a financial asset or liability is the amount at which the asset or liability is initially recognised less any repayments of principal, plus or minus accumulated amortisation, in application of the effective interest rate method, of all differences between the amount initially recognised and the amount repayable on maturity less any impairment due to insolvency or any other reason. The effective interest rate is the rate that exactly discounts contractual (or expected) future cash payments or receipts over the expected life of the asset or liability to its initial carrying amount. Calculation of amortised cost must also include external costs and income directly attributable to the asset or liability on initial recognition.
A hedge of the exposure to the variability of cash flows attributable to a particular risk associated with an asset or liability or with a highly probable forecast transaction, and that could have an impact on profit or loss.
Revenue is recognised at the fair value of the consideration received, net of rebates and discounts, and in accordance with the accruals basis of accounting. Specifically:  interest is evenly accrued over time at the contractual rate of interest or, for items carried at amortised cost, the effective interest rate;  dividends are recognised when the right to receive payment is established, which generally corresponds with approval of the distribution by the shareholders of the investee company;  service fee income is recognised in accordance with the underlying contracts in the period in which the services are rendered. Fees, less associated costs, are recognised on a percentage of completion basis to the extent that there is reasonable certainty that they will be paid. Fees on activities carried out in favour of or on behalf of the state and Public Administration entities are recognised on the basis of the amount effectively accrued, with reference to the laws and agreements in force, taking account, in any event, of the instructions contained in legislation regarding the public finances;  returns on the portion of current account deposits deposited with the MEF are determined on an accruals basis, using the effective interest rate method, and classified in item 10 – Interest and similar income;  the same classification is applied to income from euro area government securities, in which deposits paid into accounts by private customers are invested;  revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have been transferred to the buyer.
is not liable for employee termination benefits accruing after 31 December 2006, the actuarial calculation of employee termination benefits no longer takes account of future salary increases. Actuarial gains and losses are recognised directly in equity at the end of each reporting period, based on the difference between the carrying amount of the liability and the present value of the BancoPosta RFC’s obligations at the end of the period, due to changes in the actuarial assumptions.
(*) Notes on this position are provided in Part B, Assets, Table 4.1.
shares, which are listed on the New York Stock Exchange, if disposal is desired;
Italiane SpA at the time of the company’s incorporation and, at that time, accounted for at a nominal value of €10.00. At 31 December 2015, the fair value of the investment has been adjusted to take into account the likely impact of the acquisition and merger of Visa Europe Ltd with the US-registered company, Visa Incorporated. As announced on 21 December 2015, Visa Europe has informed its Principal
Deferred tax assets and liabilities are analysed below: 13.1 Deferred tax assets: analysis
Section 1 – Due to banks – Item 10 1.1 Due to banks: analysis
“Other increases” were the result of transfers from Poste Italiane SpA or other Group companies, totalling €1 million. The current service cost is not applicable to the employee termination benefits attributable to
“Other commitments” relate to the nominal value of securities to be delivered under repurchase agreements, accounted for in “Available-for-sale financial assets” at a fair value of €415 million.
Deb t secu r it ies Loans Ot her t ransact ions
Section 11 – Net losses/recoveries on property, plant and equipment – Item 170
Non-recurring (income)/expense for taxes charged to profit or loss 3 0.3% - 0.0%
 minimum rating requirements for issuers/counterparties, based on the type of instrument;  concentration limits per issuer/counterparty;  monitoring of changes in the ratings of counterparties.
, as defined by EU Regulation 575/2013, is used by BancoPosta to measure credit and counterparty risks. The method entails the use of Standard & Poor's, Moody's and Fitch for the computation of counterparty credit rating classes.
Market risk relates to: º price risk: the risk that the value of a financial instrument fluctuates as a result of market price movements, deriving from factors specific to the individual instrument or the issuer, and factors that influence all instruments traded on the market; º foreign exchange risk: the risk that the value of a financial instrument fluctuates as a result of movements in exchange rates for currencies other than the functional currency; º fair value interest rate risk: the risk that the value of a financial instrument fluctuates as a result of movements in market interest rates; º spread risk: the risk relates to the potential fall in the value of bonds held, following a deterioration in the creditworthiness of issuers; º cash flow interest rate risk: the risk that the cash flows from a financial instrument will fluctuate because of movements in market interest rates; º cash flow inflation rate risk: the risk that the cash flows from a financial instrument will fluctuate because of movements in inflation rates.
There were no supervisory trading book assets or liabilities at 31 December 2015. Poste Italiane SpA’s financial operations guidelines for BancoPosta RFC prohibit the acquisition of assets and liabilities with the intention to trade, as defined by article 104 of EU Regulation 575/2013 in relation to classification of the “supervisory trading book”.
BancoPosta RFC monitors market risk, including fair value interest rate and spread risks, inherent in availablefor -sale financial assets and derivative financial instruments through the computation of Value at Risk (VaR)
+100b ps -100b ps +100b ps -100b ps +100b ps -100b ps 2015 effect
+100 b ps -100 b ps +100 b ps -100 b ps
C. Banking b ook - ot her d er ivat ives - - - -
T ransit ional reg ime - Impact on CET1 ( +/ - )
In calculating Pillar 1 capital requirements for operational risk, BancoPosta applied the simplified approach (BIA
Impact of related party transactions on the financial position at 31 December 2015
Ministry of the Economy and Finance - 7,188 - - - - -