Funding and liquidity

Funding Overview

In 2017, diversification and recalibration of the mix of funding sources by Banca IFIS continued, with the aim of implementing the liquidity strategies envisaged in the 2017-2019 Strategic Plan.
It is precisely with a view to fully implementing the provisions of such plan that the bond loan issues aimed at institutional investors were carried out during 2017, such as the stand alone senior unsecured issue for a nominal value of €300 million in May, as well as the Tier 2 subordinated issue for a nominal value of €400 million in October. The latter was issued through the ‘Euro Medium Term Notes Programme’ signed in September for a total amount of €5 billion.
The high level of appreciation felt for these issues by the institutional investors’ market, both domestic and international, testified to the ability of Banca IFIS to successfully position itself on the debt market.

Participation in the refinancing operation with the European Central Bank in March, called ‘TLTRO II’, for €700 million is to be considered another important step towards achieving the objectives of diversification and the lengthening of the maturity deadlines that the bank aims to pursue.
In 2017, the retail deposit growth trend continued, which, through the on-line deposit products ‘Rendimax’ and ‘Contomax’, continue to be prised by customers and positively recognised in the on-line funding and deposits world.

The securitisation transactions of the Leasing and Factoring portfolios continue to represent another important source of funding, both where the senior tranches are financed on the market and where they represent collateralisation instruments for refinancing operations with the Central European Bank.


Funding evolution
(in EUR million)

 

Funding Breakdown – YR 2017

Funding Strategy

The diversification and rebalancing of funding sources will continue over 2018 too, as stated in the 2017-2019 Strategic Plan.
It is with this in mind that, based also on the market conditions that will be found throughout the year, the wholesale channel of the debt market will continue to be used, as has already been successfully tested during 2017. At the same time, the bank will try to achieve a better balance in the mix between retail and wholesale collection, also in order to respect market best practices.
The keeping of both a large liquidity buffer and regulatory capital adequacy ratios on liquidity (LCR & NSFR) above those required, represent further targets that the bank wishes to continue to achieve during 2018.