Earnings Release • Nov 9, 2016
Earnings Release
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| Informazione Regolamentata n. 1130-58-2016 |
Data/Ora Ricezione 09 Novembre 2016 17:40:17 |
MTA | |
|---|---|---|---|
| Societa' | : | POSTE ITALIANE | |
| Identificativo Informazione Regolamentata |
: | 81169 | |
| Nome utilizzatore | : | POSTEN03 - Fabo Ciammaglichella | |
| Tipologia | : | IRAG 03 | |
| Data/Ora Ricezione | : | 09 Novembre 2016 17:40:17 | |
| Data/Ora Inizio Diffusione presunta |
: | 09 Novembre 2016 17:55:18 | |
| Oggetto | : | September 30, 2016 | Poste Italiane: BoD approves results as of |
| Testo del comunicato |
Vedi allegato.
Rome, 9 November 2016 – The Board of Directors of Poste Italiane S.p.A. ("Poste Italiane"), presided by Luisa Todini, today examined and approved the Interim Management Report as at 30 September 2016, prepared in compliance with international accounting principles (IAS/IFRS).
| First nine | First nine | Variation | |
|---|---|---|---|
| months of 2016 | months of 2015 | ||
| Total revenue | 25,729 | 23,921 | +7.6% |
| Operating profit | 1,196 | 930 | +28.6% |
| Net profit | 807 | 622 | +29.7% |
| 30/9/2016 | 31/12/2015 | Variation | |
| Assets under Management/Administration | 493,021 | 475,939 | +3.6% |
| Net industrial financial position | 274 | 307 | -10.7% |
Francesco Caio, CEO and General Manager, made the following comment:
"A year after Poste Italiane first listed on the stock exchange, the company has closed its results for the first three-quarters of 2016 with turnover and margins up strongly, accelerating the process of growth and innovation laid out in the Business Plan. These results confirm the validity of our strategic choices and the Group's ability to implement them effectively under the framework of the far-reaching process of change underway, laying highly-robust foundations for further potential growth, both organic and through alliances and acquisitions. In this sphere, during the third quarter Poste purchased a 15% stake in SIA, a top-tier operator in the payments and digital transactions sector, a market that is evolving rapidly and in which the Group is keen to strengthen its presence and pursue further opportunities for growth and value creation. During the final quarter, we shall continue along the path of consolidating our results and, as in previous financial years, set aside provisions to cover the costs of the process of transformation planned for 2017."
* * *
In addition to the standard financial measures defined by IFRS, Poste Italiane also utilises certain alternative performance measures, with a view of providing a clearer assessment of the business performance and financial position. The meaning and contents of such measures are described in the annex, in line with the ESMA/2015/1415 Guidelines of 5 October 2015.
* * *
During the first nine months of 2016, the total revenue of the Group, including insurance premiums, recorded a 7.6% rise to € 25.7 billion compared to the same period of the previous year. The positive performance of the Insurance Services and Asset Management business, which recorded revenues of € 18.7 billion, up 10.4% from the same period of the previous year, and a stable performance by the financial services, which generated € 4.1 billion in revenue, have more than compensated the expected drop in third-party revenue from Postal and Business Services (- 3.6% to € 2,728 million), mainly due to declining mail volumes (-10.3%). The express delivery, logistics and parcel business, which is worth € 461 million, is growing and shows a 6.9% rise from the same period of the previous year.
The operating profit, totalling € 1,196 million, recorded a 28.6% rise from the same period of the previous year (€ 930 million). The rise is linked to the growth in revenue combined with a slight drop in operating costs. Over the reporting period, operating costs dropped approximately 1.3% thanks to the implementation of management actions which began to produce a significant impact starting from the third quarter of the year. As already in the year 2015, the result of the first nine months also benefited from the timing of the realization of capital gains from the active management of the BancoPosta securities portfolio. It should also be pointed out that in the
month of June, as part of the global transaction for the acquisition of Visa Europe Ltd by Visa Incorporated, the Holding Company executed the sale of its equity holding in that company, with a non-recurring income of € 121 million.
The net profit amounted to € 807 million, up from the € 622 million recorded in the same period of the previous year.
The Group's net financial position shows a surplus of € 7.7 billion compared to the € 8.7 billion at 31 December 2015, and is mainly affected by the drop in the fair value of financial instruments of € 1,188 million. The cash flow of non-financial operations was positive by € 858 million, after financing greater tax credits for the prepayment of withholding and substitute taxes on the capital gains of life insurances, and contributed to net industrial investments to the amount of € 245 million and distributed dividends for €444 million.
The net industrial financial position shows a surplus of € 274 million, with a slight drop of € 33 million from 31 December 2015..
Capital expenditure, before disposals, amounted to € 252 million for the period, and mainly refer to the digitalization of telecommunications networks and the modernization and upgrade of properties. In addition, the upgrading and digitalization of post offices was launched in 2016 with the roll-out of Wi-Fi connectivity in 2,199 post offices and the installation of the "new queue management system" in 1,543 offices, all of which are projects aimed at continuing the customer service improvement process, as also the opening on the national territory of multilingual desks in 19 offices to facilitate the access of "new Italians" to the Group's services.
During the first nine months of 2016, the assets under management/administration rose 3.6% to € 493 billion from € 476 billion at 31 December 2015. This growth was mainly driven by a rise in technical provisions in the life insurance sector and by BancoPosta's current account deposits in a period of substantial stability in postal savings.
As part of the efficiency effort and requalification of human resources included in the Business Plan, during the first nine months of 2016, about 1,000 new resources were introduced (including 450 conversions from part-time to full-time), while the total average headcount of the Group fell by about 2,000 units compared with September 2015. Moreover, 4,800 employees have already joined the pre-retirement plan, 2,500 of whom left at 31 October 2016. Lastly, over 1.9 million hours of training were provided to the Group's personnel.
With reference to the principal operating segments, notice should be taken of the following:
Total revenues of € 4.5 billion, up from the corresponding period in 2015, due to the nonrecurring income deriving from the sale of the shareholding in Visa Europe Ltd, the increase in revenue from the active management of the BancoPosta's securities portfolio and the distribution fees on financial products.
Furthermore, Postepay Evolution, the rechargeable prepaid nominal card with an IBAN code number, has now exceeded a total of 3 million cards issued since its launch (in July 2014) with 1,281,000 issued in the first nine months of 2016.
Poste Italiane, through BancoPosta, continued to enhance the services offered to Italian households, by broadening the range of consumer loans and mortgages with different solutions in terms of duration, amount and flexibility in payback.
BancoPosta's deposits recorded an increase in the average stock to € 49 billion (including "long term repo"), up 8% from the € 45 billion at 31 December 2015.
The increase in operating costs is mostly linked to the rising costs of the retail network paid by BancoPosta to the Postal and Business Services operating unit in almost the same proportion as revenues.
The operating profit has grown by 5.1% to € 704 million compared to the same period of the previous year (€ 670 million).
The total revenue, inclusive of other income from insurance operations, amounted to € 18.7 billion, with a 10.4 % increase compared to the same period in the previous year (€ 17.0 billion), and can be ascribed especially to premiums increase. Specifically, in fact, Poste Vita, a major Italian insurer with technical reserves amounting to € 113.7 billion (€ 100.2 billion by the end of December 2015) achieved a premium collection of € 15.3 billion (€ 14.5 billion in the first nine months of 2015), mainly due to the sales of Class I products. The positive trend of life insurance premium revenues has found a natural compensation in the increase of technical insurance provisions. A 23% rise in non-life insurance premium was recorded, together with a 22% increase in assets under management. Although the impact on revenue is still marginal, the uptrend is a evidence of the customers' increasing interest in this offer, which is in line with the mid-term estimates. The operating profit amounted to € 436 million, with an 18.5% rise compared to the same period in the previous year (€ 368 million) mainly due to the above mentioned trade dynamics, supported by the positive results in investment management.
The total revenue is about € 6.3 billion (inclusive of € 3.5 billion captive revenue, mainly from distribution services for BancoPosta). The drop in External revenues correlates with the expected drop in mail volumes which affected some products, including in the Universal Postal Service. The rise in revenues from other sectors may be ascribed, as mentioned earlier, to the trend of the revenue obtained from BancoPosta RFC.
Initiatives to improve the quality of traditional postal services and the upgrading of the relevant industrial processes, have been carried on.
Moreover, the first experimentation phase of the new Universal Service has been completed, as listed in the AGCOM 395/15 resolution of June 2015, which envisages the progressive introduction of the every-second- day delivery covering up to 23% of the Italian population. The new regulatory framework will better cater to the changing needs of the customers.
Parcels services highlight a 14% increase in volume compared to the same period of the previous year, accounting for a total of 68.2 million parcels handled in the first nine months of 2016, also due to the increasing development of e-commerce in Italy.
Operating costs of this sector have dropped by about 1.7% in the mentioned period, mainly due to the effects of management actions performed.
The operating profit is of € 35 million ( € -137 million in the same period of the previous year).
It is worth mentioning that, as occurred in previous years, the transformation costs for further upgrading the efficiency, as envisaged in the business plan, will be allocated in the fourth quarter of 2016, only after taking formal commitments with the trade unions.
On 27 April 2016, the carve out of the branch known as "Rete Fissa TLC" of PosteMobile S.p.A. subsidiary was stipulated in favour of Poste Italiane. The operation, whose accounting and fiscal aspects have come into effect as of 1st May 2016, was carried out in accordance with the Group's strategic plan.
On 21 June 2016, Poste Italiane SpA, as principal member of Visa Europe Ltd, transferred its shareholding in Visa Europe as part of the global transaction for the acquisition and merger of said company into the US based company Visa Incorporated. The overall fair value of the consideration received amounted to € 121 million, with a corresponding positive economic effect on the income statement of the above mentioned nine months.
On 12 September 2016, Poste Italiane, Postecom and Postel approved the demerger and merger project regarding the Postecom corporate restructuring, consisting of two steps: 1) carve out of the branch regarding the activities of the shareholdings PatentiViaPoste ScpA and Consorzio Poste Motori from Postecom in favour of Postel; 2) merger of Postecom into Poste Italiane. The operation will be effective from a legal, accounting and fiscal standpoint as of 1st April 2017.
On 16 September 2016, Poste Italiane and Cassa Depositi e Prestiti (CDP) entered into a preliminary agreement providing for the transfer of an indirect shareholding in SIA SpA - a leading company providing services in the field monetics, and web-based payments - from FSI Investimenti SpA (a company of the CDP Group) to Poste Italiane. The agreement establishes that Poste Italiane purchases, with an overall investment estimated to € 278 million, a 30% share in FSIA Investimenti Srl (a company holding 49.5% of SIA), 100% owned by FSI Investimenti SpA, in turn a subsidiary of CDP Equity SpA with a shareholding of 77%. Following the operation, Poste Italiane will hold an indirect shareholding of 14.85% of SIA , as well as some significant governance powers. The completion of the operation is subject to the approval by antitrust authorities and Banca d'Italia.
On 31 May 2016, the Council of Ministers approved, following a proposal submitted by the Minister of Economy and Finance, the draft Decree of the President of the Council of Ministers (DPCM) defining the privatization criteria and the terms for the disposal of another share held by the Ministry of Economy and Finance (MEF) in Poste Italiane SpA, in order to keep a public shareholding also through Cassa Depositi e Prestiti (CDP) of the company's capital of at least 35%, to be assigned to CDP's Separate Account, under the guidance and management of MEF.
On 24 June 2016, CDP's Extraordinary Shareholders' Meeting approved an increase of the share capital reserved to MEF amounting to € 2.930 billion. To release such a share capital increase, on 20 October 2016, the MEF granted CDP a shareholding in Poste Italiane accounting for 457,138,500 ordinary shares (35% of the share capital). Downstream from that operation, the MEF holds a share of approximately 29.7 % of Poste Italiane.
Regarding traditional postal services, the Group intends to press ahead with the restructuring of the sector throughout the last quarter of 2016. The Group will do so by leveraging its new regulatory framework, on the one hand, and capitalizing on the increase in efficiency secured by the implementation of a new model of delivery, in agreement with trade unions, on the other.
The Group is committed to promoting activities that optimize and simplify its different product portfolios, both in the target retail and business sectors, with a view to improving the service quality it provides to all its customers. Special attention will be paid to parcels and the express courier market, where the focus will still be on B2C, a growing e-commerce-driven segment.
Also the BancoPosta RFC will continue to pursue the implementation of its strategic goals by paying special attention to :
(iii) Focusing on the growth of the consumer credit market and promoting its "digital" repositioning within a larger multichannel strategy of Poste Italiane.
BancoPosta will further develope its strategy regarding the active management of its securities portfolio, which is aimed at stabilizing the total return generated by interests and capital gains. Moreover, executing the resolution approved by the Board of Directors and in agreement with the CDP Equity shareholder, a technical discussion has started with SIA with a view to identify all possible synergies between the two companies.
Regarding the Insurance and Asset Management sector, the Group will continue to focus on strengthening its activities targeting Ramo I products, with a view to capitalizing on Poste Vita's leadership position. The Group's expansion into Mutual Funds and Ramo III segments continues in line with its stated strategies in compliance with relevant legislation.
In line with the Group's strategic priorities, the Insurance Services business will focus on renewing current products while developing solutions that answer the growing needs of health, casualty and property and pension insurance schemes.
* * *
It should be noted that this release regarding the interim financial report at 30 September 2016 has been prepared on a voluntary basis, consistently with the past, awaiting developments of the regulatory framework outlined by Italian Legislative Decree No. 25 of 15 February 2016 (the "Decree"), which removed the obligation for the listed companies to publish quarterly financial reports, delegating Consob to evaluate the possible reintroduction of the obligation to publish "additional periodic financial information" with the limits and conditions set out in said Decree. In this context, the Interim Financial Report as of 30 September 2016 will be published by 14 November 2016, made available to the public at the Company's head office, on the Company's website (www.posteitaliane.it), on the website of the authorized storage system "NIS‐Storage" (), and filed with Borsa Italiana S.p.A. (www.borsaitaliana.it), the Italian stock exchange management company. The disclosure regarding the filing will be issued in due course.
A conference call will be held at 6 p.m. today, 9 November 2016, in order to present the results for the first nine months of 2016 to financial analysts and institutional investors, Journalists will be able to listen to the call. Supporting material will be made available in the "Investors" section of the website www.posteitaliane.it as the conference call begins.
* *
Tables showing the results of the individual business units (before intersegment eliminations) are provided below, together with the period accounts (consolidated statement of financial position, consolidated statement of profit/loss for the period, consolidated statement of comprehensive income, consolidated statement of changes in equity and condensed consolidated statement of cash flows).
A brief description of the "alternative performance indicator" used is also provided.
The manager responsible for financial reporting, Luciano Loiodice, pursuant to art. 154 bis, paragraph 2 of the Consolidated Law on Finance, declares that the accounting information contained in this release is consistent with the underlying documents, accounting books and records.
* * *
In compliance with the provisions of IFRS 8 – Operating Segments, an operating segment is a component of an entity: a) that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity) and b) whose operating results are reviewed regularly by the entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. Following is the key financial information on the operating segments of the Poste Italiane Group.
Results (EUR/million):
| First nine months of 2016 | First nine months of 2015 | Variation | |
|---|---|---|---|
| External revenues | 4,107 | 3,949 | 4.0% |
| Intersegment revenue | 413 | 388 | 6.7% |
| Total revenue | 4,520 | 4,337 | 4.2% |
| Operating profit | 704 | 670 | 5.1% |
Results (EUR/million):
| First nine months of 2016 | First nine months of 2015 | Variation | |
|---|---|---|---|
| External revenues | 18,725 | 16,962 | 10.4% |
| Intersegment revenue | - | - | - |
| Total revenue | 18,725 | 16,962 | 10.4% |
| Operating profit | 436 | 368 | 18.5% |
Results (EUR/million):
| First nine months of 2016 | First nine months of 2015 | Variation | |
|---|---|---|---|
| External revenues | 2,728 | 2,829 | -3.6% |
| Intersegment revenue | 3,529 | 3,364 | 4.9% |
| Total revenue | 6,257 | 6,193 | 1.0% |
| Operating profit | 35 | (137) | n.s. |
We are reporting below the meaning and content of the "alternative performance measures", which are not defined by IAS/IFRS but have been used in this release in view of providing a clearer assessment of the Group's operating performance and financial position.
* * *
GROUP NET FINANCIAL POSITION: the sum of financial liabilities, insurance technical provisions, financial assets, reinsurers' share of technical provisions, BancoPosta cash and deposits and cash and cash equivalents.
NET INDUSTRIAL FINANCIAL POSITION: the sum of the net financial position of the Postal and Business Services segment and of the net financial position of the Other Services segment, before adjusting for intersegment transactions.
| Postal and Business Services |
Financial Services |
Insurance Services and Asset Management |
Other Services |
Eliminations | Consolidated | |
|---|---|---|---|---|---|---|
| Balance at 30 September 2016 | ||||||
| Financial liabilities | (2,288) | (61,978) | (1,163) | (2) | 2,034 | (63,397) |
| Technical provisions for insurance | (113,878) | (113,878) | ||||
| business | ||||||
| Financial assets | 1,447 | 63,307 | 116,499 | 47 | (1,728) | 179,572 |
| Technical Provisions attributable to | 66 | 66 | ||||
| Reinsurers | ||||||
| Cash and deposits attributable to | 2,918 | 2,918 | ||||
| BancoPosta | ||||||
| Cash and cash equivalents | 1,061 | 422 | 1,187 | 9 | (306) | 2,373 |
| Net Financial Position | 220 | 4,669 | 2,711 | 54 | - | 7,654 |
| Net Industrial Financial Position | 220 | 54 | 274 | |||
| Balance at 31 December 2015 | ||||||
| Financial liabilities | (2,442) | (55,418) | (1,218) | (4) | 1,604 | (57,478) |
| Technical provisions for insurance | (100,314) | (100,314) | ||||
|---|---|---|---|---|---|---|
| business | ||||||
| Financial assets | 1,396 | 57,574 | 102,409 | 26 | (1,315) | 160,090 |
| Technical Provisions attributable to | 58 | 58 | ||||
| Reinsurers | ||||||
| Cash and deposits attributable to | 3,161 | 3,161 | ||||
| BancoPosta | ||||||
| Cash and cash equivalents | 1,315 | 485 | 1,615 | 16 | (289) | 3,142 |
| Net Financial Position | 269 | 5,802 | 2,550 | 38 | - | 8,659 |
| Net Industrial Financial Position | 269 | 38 | 307 |
* * *
For further information:
Poste Italiane S.p.A. – Press Office Pierpaolo Cito Head of Media Relations Tel. +39 0659589008 Cell. +39 3351823403 Mail [email protected]
Poste Italiane S.p.A. – Investor Relations Luca Torchia Head of Investor Relations Tel. +39 0659589421 Cell. +39 3346402438 Mail [email protected]
| (€m) | (€m) | |||
|---|---|---|---|---|
| ASSETS | at 30 September 2016 |
of which, related party transactions |
at 31 December 2015 |
of which, related party transactions |
| Non-current assets | ||||
| Property, plant and equipment | 2,062 | - | 2,190 | - |
| Investment property | 57 | - | 61 | - |
| Intangible assets | 483 | - | 545 | - |
| Investments accounted for using the equity method | 215 | 215 | 214 | 214 |
| Financial assets | 159,808 | 3,880 | 139,310 | 3,988 |
| Trade receivables | 48 | - | 54 | - |
| Deferred tax assets | 650 | - | 623 | - |
| Other receivables and assets | 2,503 | 1 | 2,303 | 1 |
| Technical provisions attributable to reinsurers Total |
66 165,892 |
- | 58 145,358 |
- |
| Current assets | ||||
| Inventories | 137 | - | 134 | - |
| Trade receivables | 2,278 | 801 | 2,292 | 904 |
| Current tax assets | 180 | - | 72 | - |
| Other receivables and assets | 1,086 | 4 | 897 | 2 |
| Financial assets | 19,764 | 6,484 | 20,780 | 7,274 |
| Cash and deposits attributable to BancoPosta | 2,918 | - | 3,161 | - |
| Cash and cash equivalents | 2,373 | 365 | 3,142 | 391 |
| Total | 28,736 | 30,478 | ||
| TOTAL ASSETS | 194,628 | 175,836 | ||
| LIABILITIES AND EQUITY | at 30 September 2016 |
of which, related party transactions |
at 31 December 2015 |
of which, related party transactions |
| Equity | ||||
| Share capital | 1,306 | - | 1,306 | - |
| Reserves | 3,166 | - | 4,047 | - |
| Retained earnings | 4,555 | - | 4,305 | - |
| Equity attributable to owners of the Parent | 9,027 | 9,658 | ||
| Equity attributable to non-controlling interests | - | - | - | - |
| Total | 9,027 | 9,658 | ||
| Non-current liabilities | ||||
| Technical provisions for insurance business | 113,878 | - | 100,314 | - |
| Provisions for risks and charges | 608 | 48 | 634 | 50 |
| Employee termination benefits and pension plans | 1,478 | - | 1,361 | - |
| Financial liabilities | 10,164 | 84 | 7,598 | 77 |
| Deferred tax liabilities | 927 | - | 1,177 | - |
| Other liabilities | 856 | - | 920 | - |
| Total | 127,911 | 112,004 | ||
| Current liabilities | ||||
| Provisions for risks and charges | 557 | 10 | 763 | 11 |
| Trade payables | 1,332 | 195 | 1,453 | 174 |
| Current tax liabilities | 354 | - | 53 | - |
| Other liabilities | 2,214 | 75 | 2,025 | 91 |
| Financial liabilities | 53,233 | 20 | 49,880 | 3 |
| Total | 57,690 | 54,174 | ||
| TOTAL EQUITY AND LIABILITIES | 194,628 | 175,836 | ||
| Third quarter 2016 Third quarter 2015 | For the nine months ended 30 September 2016 |
of which, related party transactions |
For the nine months ended 30 September 2015 |
of which, related party transactions |
||
|---|---|---|---|---|---|---|
| 2,090 4,837 |
2,108 5,069 |
Revenue from sales and services Insurance premium revenue |
6,406 15,388 |
1,704 - |
6,498 14,543 |
1,836 - |
| 1,106 | 773 | Other income from financial and insurance activities |
3,887 | 64 | 2,828 | 74 |
| - | - | of which, non-recurring income | 121 | - | ||
| 14 | 21 | Other operating income | 48 | 1 | 52 | 4 |
| 8,047 | 7,971 | Total revenue | 25,729 | 23,921 | ||
| 594 | 635 | Cost of goods and services | 1,809 | 118 | 1,874 | 130 |
| 5,505 | 5,090 | Net change in technical provisions for insurance business and other claims expenses |
17,449 | - | 15,475 | - |
| 51 | 369 | Other expenses from financial and insurance activities |
360 | - | 674 | - |
| 1,348 | 1,387 | Personnel expenses | 4,333 | 29 | 4,370 | 29 |
| 140 | 136 | Depreciation, amortisation and impairments | 439 | - | 425 | - |
| (7) | (9) | Capitalised costs and expenses | (15) | - | (21) | - |
| 63 | 71 | Other operating costs | 158 | 10 | 194 | 4 |
| 353 | 292 | Operating profit/(loss) | 1,196 | 930 | ||
| 21 | 15 | Finance costs | 69 | 1 | 76 | - |
| 26 | 29 | Finance income | 83 | 1 | 117 | 2 |
| 1 | - | Profit/(Loss) on investments accounted for using the equity method |
7 | - | - | - |
| 359 | 306 | Profit/(Loss) before tax | 1,217 | 971 | ||
| 117 | 119 | Income tax expense | 410 | - | 349 | - |
| - | - | of which, non-recurring costs/(income) | - | (17) | ||
| 242 | 187 | PROFIT FOR THE PERIOD | 807 | 622 | ||
| 242 | 187 | of which, attributable to owners of the Parent | 807 | 622 | ||
| - | - | of which, attributable to non-controlling interests | - | - | ||
| 0.186 | 0.143 | Earnings per share | 0.618 | 0.476 | ||
| 0.186 | 0.143 | Diluted earnings per share | 0.618 | 0.476 |
| (€m) | ||||
|---|---|---|---|---|
| Third quarter 2016 |
Third quarter 2015 |
For the nine months ended 30 September 2016 |
For the nine months ended 30 September 2015 |
|
| 242 | 187 | Profit/(Loss) for the period | 807 | 622 |
| Items to be reclassified in the Statement of profit or loss for the period | ||||
| Available-for-sale financial assets | ||||
| 335 | 1,124 | Increase/(decrease) in fair value during the period | (607) | 902 |
| (106) | (83) | Transfers to profit or loss | (588) | (433) |
| Cash flow hedges | ||||
| (12) | 57 | Increase/(decrease) in fair value during the period | 35 | 18 |
| (7) | (27) | Transfers to profit or loss | (28) | (66) |
| (58) | (345) | Taxation of items recognised directly in, or transferred from, equity to be reclassified in the Statement of profit or loss for the period |
306 | (133) |
| - | - | Share of after-tax comprehensive income/(loss) of investees accounted for using equity method |
- | - |
| Items not to be reclassified in the Statement of profit or loss for the period | ||||
| (36) | - | Actuarial gains/(losses) on provisions for employee termination benefits and pension plans |
(162) | 86 |
| 11 | - | Taxation of items recognised directly in, or transferred from, equity not to be reclassified in the Statement of profit or loss for the period |
49 | (27) |
| - | - | Share of after-tax comprehensive income/(loss) of investees accounted for using equity method |
- | - |
| 127 | 726 | Total other components of comprehensive income | (995) | 347 |
| 369 | 913 | TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | (188) | 969 |
| 369 | 913 | of which, attributable to owners of the Parent | (188) | 969 |
| - | - | of which, attributable to non-controlling interests | - | - |
| Equity | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Reserves | ||||||||||
| Share capital | Legal reserve BancoPosta RFC reserve | Fair value reserve |
Cash flow hedge reserve |
Reserve for investees accounted for using equity method |
Retained earnings / (Accumulated losses) |
Total equity attributable to owners of the Parent |
Equity attributable to non controlling interests |
Total equity | ||
| Balance at 1 January 2015 | 1,306 | 299 | 1,000 | 1,813 | 48 | - | 3,952 | 8,418 | - | 8,418 |
| Total comprehensive income for the period | - | - | - | 320 | (32) | - | 681 | 969 | - | 969 |
| Attribution of profit to reserves | - | - | - | - | - | - | - | - | - | - |
| Dividends paid | - | - | - | - | - | - | (250) | (250) | - | (250) |
| Changes due to share-based payments | - | - | - | - | - | - | - | - | - | - |
| Other changes | - | - | - | - | - | - | - | - | - | - |
| Change in scope of consolidation | - | - | - | - | - | - | - | - | - | - |
| Other shareholder transactions | - | - | - | - | - | - | - | - | - | - |
| Balance at 30 September 2015 | 1,306 | 299 | 1,000 | 2,133 | 16 | - 4,383 |
9,137 | - | 9,137 | |
| Total comprehensive income for the period | - | - | - | 606 | (7) | - | (78) | 521 | - | 521 |
| Attribution of profit to reserves | - | - | - | - | - | - | - | - | - | - |
| Dividends paid | - | - | - | - | - | - | - | - | - | - |
| Changes due to share-based payments | - | - | - | - | - | - | 1 | 1 | - | 1 |
| Other changes | - | - | - | - | - | - | - | - | - | - |
| Change in scope of consolidation | - | - | - | - | - | - | - | - | - | - |
| Other shareholder transactions | - | - | - | - | - | - | (1) | (1) | - | (1) |
| Balance at 31 December 2015 | 1,306 | 299 | 1,000 | 2,739 | 9 | - 4,305 |
9,658 | - | 9,658 | |
| Total comprehensive income for the period | - | - | - | (887) | 5 | - | 694 | (188) | - | (188) |
| Attribution of profit to reserves | - | - | - | - | - | - | - | - | - | - |
| Dividends paid | - | - | - | - | - | - | (444) | (444) | - | (444) |
| Changes due to share-based payments | - | - | - | - | - | - | - | - | - | - |
| Other changes | - | - | - | - | - | 1 | - | 1 | - | 1 |
| Change in scope of consolidation | - | - | - | - | - | - | - | - | - | - |
| Other shareholder transactions | - | - | - | - | - | - | - | - | - | - |
| Balance at 30 September 2016 | 1,306 | 299 | 1,000 | 1,852 | 14 | 1 4,555 |
9,027 | - | 9,027 |
| (€m) | |||
|---|---|---|---|
| For the nine months ended 30 |
For the nine months ended 30 |
||
| September 2016 | September 2015 | ||
| Unrestricted net cash and cash equivalents at beginning of period | 1,783 | 747 | |
| Cash subject to investment restrictions | 1 | 511 | |
| Cash attributable to technical provisions for insurance business | 1,324 | 415 | |
| Amounts that cannot be drawn on due to court rulings | 11 | 11 | |
| Current account overdrafts | 5 | 8 | |
| Cash received on delivery (restricted) and other restrictions | 18 | 12 | |
| Cash and cash equivalents at beginning of period | 3,142 | 1,704 | |
| Cash and cash equivalents at beginning of period | 3,142 | 1,704 | |
| Profit/(loss) for the period | 807 | 622 | |
| Depreciation, amortisation and impairments | 439 | 425 | |
| Losses and impairments/(recoveries) on receivables | 23 | 5 | |
| (Gains)/Losses on disposals | 2 | - | |
| Impairment of available for sale investments | - | - | |
| (Increase)/decrease in inventories | (3) | (1) | |
| (Increase)/decrease in receivables and Other assets | (458) | 111 | |
| Increase/(decrease) in Payables and Other liabilities | 293 | 277 | |
| Movement in provisions for risks and charges | (232) | (125) | |
| Movement in provisions for employee termination benefits and pension plans | (46) | (29) | |
| Differences in accrued finance costs and income (cash correction) | (18) | (46) | |
| Other changes | 51 | 20 | |
| Net cash flow generated by/(used in) non-financial operating activities | [a] | 858 | 1,259 |
| Increase/(decrease) in liabilities attributable to financial activities | 4,419 | (180) | |
| Net cash generated by/(used for) held for trading financial assets attributable to financial activities | - | - | |
| Net cash generated by/(used for) available for sale financial assets attributable to financial activities | (3,637) | (361) | |
| Net cash generated by/(used for) held to maturity financial assets attributable to financial activities | 498 | 1,404 | |
| (Increase)/decrease in cash and deposits attributable to BancoPosta | 242 | 234 | |
| (Increase)/decrease in other assets attributable to financial activities | (672) | (712) | |
| (Income)/expenses from financial activities | (779) | (680) | |
| Cash generated by/(used for) assets and liabilities attributable to financial activities | [b] | 71 | (295) |
| Net cash generated by/(used for) financial assets at fair value through profit or loss attributable to insurance activities | (4,233) | (6,239) | |
| Increase/(decrease) in net technical provisions for insurance business Net cash generated by/(used for) available for sale financial assets attributable to insurance activities |
11,431 (5,837) |
10,097 (3,610) |
|
| (increase)/decrease in other assets attributable to insurance activities | (60) | (122) | |
| (Gains)/losses on financial assets/liabilities measured at fair value | (1,009) | 366 | |
| (Income)/expenses from insurance activities | (779) | (663) | |
| Cash generated by/(used for) assets and liabilities attributable to insurance activities | [c] | (487) | (171) |
| Net cash flow from/(for) operating activities | [d]=[a+b+c] | 442 | 793 |
| - of which, related party transactions | 1,037 | (804) | |
| Investing activities | |||
| Property, plant and equipment, investment property and intangible assets | (252) | (229) | |
| Investments | - | (211) | |
| Other financial assets | (105) | - | |
| Disposals | |||
| Property, plant and equipment, investment property and intangible assets and assets held for sale | 5 | 2 | |
| Investments Other financial assets |
- 100 |
- 6 |
|
| Change in scope of consolidation | - | - | |
| Net cash flow from/(for) investing activities | [e] | (252) | (432) |
| - of which, related party transactions | (22) | (212) | |
| Proceeds from/(Repayments of) borrowings | (517) | (608) | |
| (Increase)/decrease in loans and receivables | 2 | 114 | |
| Dividends paid | (444) | (250) | |
| Receivable authorised by 2015 Stability Law in implementation of Sentence of the European Court | - | 535 | |
| Net cash flow from/(for)financing activities and shareholder transactions | [f] | (959) | (209) |
| - of which, related party transactions | (285) | 397 | |
| Net increase/(decrease) in cash | [g]=[d+e+f] | (769) | 152 |
| Cash and cash equivalents at end of period | 2,373 | 1,856 | |
| Cash and cash equivalents at end of period | 2,373 | 1,856 | |
| Cash subject to investment restrictions | - | (315) | |
| Cash attributable to technical provisions for insurance business | (669) | (939) | |
| Amounts that cannot be drawn on due to court rulings | (12) | (11) | |
| Current account overdrafts | - | - | |
| Cash received on delivery (restricted) and other restrictions | (16) | (14) | |
| Unrestricted net cash and cash equivalents at end of period | 1,676 | 577 | |
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