FINANCIAL SERVICES
BANCOPOSTA RFC
During 2014, BancoPosta RFC's commercial offering was focused on cross-selling and attracting new current account
deposits. In the private current account segment, the Conto BancoPosta Più offering has been expanded through the
introduction of new promotions: customers purchasing a Postaprotezione SiCura and/or a Postaprotezione Infortuni
insurance policy or purchasing PosteMobile products have had their annual current account fee cut to zero.
The Conto BancoPosta In Proprio offering for SMEs was restyled. Customers who retain a minimum balance on their
account each month and purchase or use a certain number of products (collection and payment or loans and
insurance) receive a reduction in their account charges.
A number of initiatives have also been taken to attract new deposits and consolidate the market positioning of online
current accounts. These regard:
- the launch of “Promozione 1,75%”, offering an annual rate of 1.75% gross until 31 December 2014 for all new customers opening a Conto BancoPosta Più or Conto BancoPosta Click account by 30 June 2014, whilst existing BancoPosta Click customers have been offered an annual rate of 0.75% gross until 30 June 2014;
- three different rates were offered for amounts deposited in term accounts as part of the “Opzione SorpRende” service, which allows customers to earn a higher return than usual if they deposit their money for a longer period; this option was also extended to In Proprio current accounts for SMEs.
The electronic money sector, in which the Group is present with its Postamat Maestro card (6.9 million cards at 31
December 2014 and 6.8 million cards at 31 December 2013) and Postepay card (12.2 million cards at 31 December
2014, compared with 10.5 million cards at 31 December 2013), saw the expansion of contactless debit card
technology to both cards in the Tuscany region (after Lombardy and Lazio, where distribution was completed in
2013), and to the Postamat Click MasterCard debit card throughout the country.
The new Postepay card, Postepay Evolution, was launched in 2014. In addition to having all the usual functions of a
standard Postepay card, the new card, which will be equipped with an IBAN, will enable holders to carry out the
principal banking transactions (to pay in their salaries, effect transfers and post office giro transactions and pay their
bills by direct debit) and to use an App to top up their cards with small amounts free of charge from other Postepay
accounts (up to €25 a day). The new card, which will belong to the international MasterCard system, will support
the United Nations’ World Food Programme (WFP) in collaboration with MasterCard and will be the first card in the
world to give customers the chance to make a donation to the WFP each time they use their card.
In connection with the La Carta dello Studente – IoStudio promotion sponsored by the Ministry of Education,
Universities and Research (MIUR), involving the distribution of electronic ID cards incorporating a number of payment
functions to students, during the first half around 600,000 cards for secondary school students were produced and
sent to school administrative offices.
Around 26.3 million top-ups were made using the external top-up channel for Postepay cards, comprising around 40
thousand SISAL betting shops, around 16 thousand tobacconists linked up to the Banca ITB network, and the home
banking service provided by the BPM Group and other authorised networks in 2014 (21.6 million in 2013).
In the collections and payments segment, the process of extending the payment of bills using payment slips in
supermarkets continued and a Payment Slip for the payment of the new property tax (TASI) was created as an
alternative to form F24. Furthermore, from October 2014 new functions were added to the Bollettino postale
(Payment Slip) product, enabling invoicers to electronically check unpaid bills and payments received in real time.
Again with regard to collections and payments, in June the new version of the “Fattura noproblem” service, which
manages the issue of bills to Public Sector entities in compliance with the relevant regulations on behalf of
BancoPosta current account customers, was released.
The POS acquiring services for SMEs include the Mobile POS service, the marketing of which was extended to the
entire post office network during the year. The introductory promotional offer, enabling customers to buy a card
reader at a reduced price, was also prolonged. The service is aimed at small and micro businesses, enabling them to
use a smartphone or tablet to manage credit and debit card payments by using a special app and a bluetooth card
reader.
The holders of PagoBancomat cards can now top up their mobile phones or their Postepay cards at a Postamat ATM
and the process of extending the number of post offices at which bills can be paid by payment slip using a Visa or
Mastercard debit or credit card was completed.
In terms of loan products for private customers, numerous low interest rate promotions were run and the terms and
conditions applicable to a number of products were revised. In particular, the offer of Specialcash Postepay and
Prontissimo BancoPosta personal loan products was extended to include the holders of the new Postepay Evolution
card, with the loans credited to their card and repayments being debited directly to the card. The range of Quinto
BancoPosta salary loans was extended, with the addition of both a product for Poste Italiane employees, enabling
them to obtain loans worth up to two-fifths of their salary, and one for INPS pensioners and Poste Italiane employees,
giving them the possibility to obtain a new BancoPosta salary loan to replace a previous one obtained from any other
bank. The Mutuo BancoPosta product (mortgage loans) was repriced in order to improve its competitiveness.
With regard to the distribution and management of Postal Savings products, 2014 saw changes to the range of
Interest-bearing Postal Certificates (BFPs), with the issue of certain products being halted (the 3-year BFP Fedeltà,
BFPRisparmiNuovi, BFPRenditalia, BFP7insieme) to be replaced by new certificates (e.g., BFP3x4Fedeltà, for customers
redeeming at maturity certificates or bonds distributed exclusively by Poste Italiane; Buono BFP3x4RisparmiNuovi,
aimed exclusively at savers desiring to top up their investments). In addition, the "risparmiodisicuro" plan was
launched in April, enabling savers to periodically and automatically subscribe for certain types of certificate (BFP
Europa, BFP Diciottomesi, BFP 3x4, BFP Ordinari and inflation-linked BFPs).
Turning to Savings Books, promotion of the Libretto Nominativo Smart product was extended. This offers a higher
rate of interest for qualifying customers (e.g., those who maintain a certain minimum balance on their account)
until 30 June 2014, for accounts opened between 1 January 2013 and 30 March 2014, and 31 December 2014,
for those opened between 1 April 2014 and 23 June 2014 (the latter promotion was renewed for accounts
opened between 24 June 2014 and 28 October 2014). In addition, new functions have been added to the online
services linked to the Libretto Smart product, enabling account holders to give instructions for: the transfer of funds
from bank current accounts; top-ups to their PostePay cards using an App to debit their Libretto Smart account,
transfers (from a Libretto Ordinario to a Libretto Smart and vice versa and from a BancoPosta/BancoPosta Click
current account to a Libretto Smart account and vice versa), using the RPOL service or via an App.
In terms of investment services, 2014 saw the issuance of three bonds:
- “TassoFisso Sprint BancoPosta”, issued by Banca IMI SpA, and
- “TassoFissoOneStep BancoPosta”, issued by UniCredit SpA, both having 6-year terms to maturity;
- “TassoFissoOneStep BancoPosta”, issued by Banca IMI, with a term to maturity of 7 years.
With regard to International Money Transfer payment systems, a number initiatives were taken to boost usage of the Moneygram service. These focused on use of a Poste Mobile SIM, based on a promotion launched in February, enabling customers to transfer money to any country in return for a flat fee, and pricing initiatives for money sent from Rome, Milan and Naples. In addition, with regard to Eurogiros, the Eurogiro Cash to Account service for sending money from San Marino to Italy, directly to the recipient’s postal current account, was also launched.
Online services
Online home banking services linked to the BancoPosta (BancoPostaOnline) and Conto BancoPosta Click accounts continued to see growth in 2014, with over 1.7 million online consumer accounts (over 1.5 million online consumer accounts active at the end of 2013) and around 257,000 business accounts (around 250,000 at the end of 2013).
Online transactions
| in the year ended 31 December ('000) | 2013 | 2014 | % inc./(dec) |
|---|---|---|---|
| Payment of bills by payment slip | 5,242 | 5,715 | 9.0 |
| Bank transfers | 3,525 | 4,248 | 20.5 |
| Post office giros | 1,520 | 1,792 | 17.9 |
| PostePay top-ups | 5,126 | 5,414 | 5.6 |
| Phone top-ups | 4,135 | 3,728 | (9.8) |
| Tax payments (using the F24 form) | 1,511 | 2,096 | 38.7 |
| Interest-bearing Postal Certificates | 68 | 53 | (22.1) |
| Other | 75 | 83 | 10.7 |
| Total | 21,202 | 23,129 | 9.1 |
Online customers generated more than 23 million instructions during the year (21 million in 2013). Of the classic
internet banking services offered, the Bollettino payment slip is the most successful, with 5.7 million online
transactions generated in 2014 (up 9% on 2013), followed by PostePay top-ups (up 5.6% on the previous year, with
5.4 million top-ups) and bank transfers which, with over 4.2 million instructions, are up 20.5% on 2013. Post office
giro transactions, transferring money between Bancoposta current accounts, totalled approximately 1.8 million (up
17.9% on the previous year).
The number of phone top-ups is down 9.8% from the 4.1 million of 2013 to 3.7 million in 2014. This reflects general
market trends, with increased use of social networks as a means of communication and of mobile messaging Apps.
BANCOPOSTA’S OPERATING RESULTS
Revenue
| for the year ended 31 December (€m) | 2013 | 2014 | % Inc./ (Dec.) |
|---|---|---|---|
| Current Accounts | 2,931 | 2,775 | (5.3) |
| Payment of bills by payment slip | 567 | 493 | (13.1) |
| Income from investment of customer deposits | 1,753 | 1,659 | (5.4) |
| Other revenue from current accounts and prepaid cards | 611 | 623 | 2.0 |
| Money transfers(*) | 63 | 55 | (12.7) |
| Postal savings and investment | 2,004 | 2,040 | 1.8 |
| Postal Savings Books and Certificates | 1,620 | 1,640 | 1.2 |
| Government securities | 8 | 6 | (25.0) |
| Equities and bonds | 14 | 3 | (78.6) |
| Insurance policies | 329 | 361 | 9.7 |
| Investment funds | 17 | 18 | 5.9 |
| Securities Deposits | 16 | 12 | (25.0) |
| Delegated Services | 130 | 136 | 4.6 |
| Loan products | 127 | 120 | (5.5) |
| Other products(**) | 71 | 102 | 43.7 |
| Total revenue from financial services | 5,326 | 5,228 | (1.8) |
| Reconciliation with BancoPosta's Separate Report(***) | (11) | (5) | (54.5) |
| BancoPosta RFC's interest and fee and commission income | 5,315 | 5,223 | (1.7) |
(*) This item includes all revenue from domestic and international money orders and inbound and outbound Eurogiros.
(**) This item includes revenue from tax collection forms and tax returns and other Bancoposta revenue.
(***) This item primarily includes income from the investment of own liquidity and certain financial income classified, for the purposes of the Separate Report, in other items in the income statement.
Deposits
| at 31 December (€m) | 2013 | 2014 | % Inc./ (Dec.) |
|---|---|---|---|
| Current accounts(*) | 43,903 | 43,953 | 0.1 |
| Postal savings books(**) | 106,920 | 114,359 | 7.0 |
| Interest-bearing postal certificates(**) | 211,707 | 211,333 | (0.2) |
(**) Deposits include accrued interest for the period, calculated on the assumption that all Interest-bearing Postal Certificates arrive at their scheduled maturity date.
Number of transactions
| in the year ended 31 December ('000) | 2013 | 2014 | % Inc./ (Dec.) |
|---|---|---|---|
| Payment slips processed | 457,612 | 428,467 | (6.4) |
| Domestic postal orders | 5,830 | 5,438 | (6.7) |
| International postal orders | 2,642 | 2,215 | (16.2) |
| Inbound | 1,460 | 1,077 | (26.2) |
| Outbound | 1,182 | 1,138 | (3.7) |
| Pensions and other standing orders | 77,865 | 77,135 | (0.9) |
| Tax services | 29,361 | 50,827 | 73.1 |
Volumes
| at 31 December ('000) | 2013 | 2014 | % Inc./ (Dec.) |
|---|---|---|---|
| Number of customer current accounts | 6,023 | 6,173 | 2.5 |
| Number of credit cards | 459 | 457 | (0.4) |
| Number of debit cards | 6,756 | 6,896 | 2.1 |
| Number of prepaid cards | 10,550 | 12,175 | 15.4 |
Revenue generated by BancoPosta RFC’s financial services is down from the €5,326 million of 2013 to €5,228 million
in 2014 (a decline of 1.8%). This primarily reflects the performance of current accounts, which saw a 5.3% reduction
in revenue (€2,775 million in 2014, compared with €2,931 million in 2013). This reflects both a decline in revenue
from the payment of bills by payment slip, down 13% from €567 million in 2013 to €493 million in 2014, due to a
decline in the number of bills processed (458 million in 2013, compared with 428 million in 2014), and a 5.4%
reduction in revenue from the investment of deposits (€1,659 million in 2014, compared with €1,753 million in 2013),
reflecting a reduction in the average rate earned on deposits with the Ministry of the Economy and Finance.
Other revenue from current accounts and prepaid cards is up by approximately €12 million, reflecting an increase in
fee revenue on the issue and use of prepaid cards, which amount to 12.2 million at the end of 2014, compared with
10.6 million at the end of 2013.
There was a 12.7% decrease in money transfer revenue (€55 million in 2014, compared with €63 million in 2013),
essentially due to falls in the volume of domestic transfers processed (5.4 million transaction in 2014, compared with
5.8 million in 2013) and in the number of international transfers (2.2 million transactions in 2014, compared with 2.6
million in 2013).
The sale of Interest-bearing Postal Certificates and inflows into Postal Savings Books, the income on which is linked to a mechanism agreed with Cassa Depositi e Prestiti SpA tied to the achievement of net savings inflow targets, contributed €1,640 million to revenue (€1,620 million in 2013). In terms of assets under management, savings book deposits amount to €114.4 billion at 31 December 2014 (€106.9 billion at 31 December 2013), whilst savings in the form of Certificates are substantially in line with the figure for 31 December 2013 (€211.3 billion at the end of 2014, compared with €211.7 billion at the end of 2013).
Asset and fund management1 registered an increase in revenue of 4.2% (€400 million in 2014, compared with €384 million in 2013), generated essentially by growing sales of insurance policies (up 9.7%), which have risen from the €329 million of 2013 to €361 million in 2014. This reflects an 11% increase in premiums written by Poste Vita (€14.7 billion in 2014, compared with €13.2 billion in 2013), with the remaining increase deriving from the positive contribution of commission income from the funds segment, up from €17 million in 2013 to €18 million in 2014. Equity and bond placement revenue is down 78.6% on 2013 (€3 million in 2014, compared with €14 million in 2013), due to a reduction in the volumes placed (€110 million in 2014, compared with €589 million in 2013). Delegated service revenue of €136 million (€130 million in 2013) primarily includes commissions received in return for the payment of INPS (National Social Insurance Institute) pensions, totalling €69 million (€63 million in 2013), and commissions earned on the payment of pensions and other sums for the Ministry of the Economy and Finance, totalling €57 million. The decrease in commissions was basically due to the reduction in pensions paid at counters as opposed to current or savings account credits, on which a lower commission is charged than for counter payments.
Revenue from the distribution of loan products2 is down 5.5% (€120 million in 2014, compared with €127 million in 2013), reflecting a reduction in the amounts disbursed.
Finally, the 43.7% increase in revenue from other products essentially reflects growth in the number of tax payments processed using the F24 form (51million in 2014, compared with 29 million in 2013).
(1) Asset and fund management includes the distribution of government securities, equities, bonds, insurance policies, mutual
investment funds and commissions on safe custody accounts.
(2) Personal loans, mortgage loans, overdrafts, salary loans and credit protection.